Under the terms of the agreement signed earlier, Oneok Partners agreed to acquire 80% stake in the West Texas LPG Pipeline Limited Partnership (West Texas LPG) and 100% interest in the Mesquite Pipeline (Mesquite).
The two units have approximately 2,600 miles of NGL gathering pipelines extending from the Permian Basin in southeastern New Mexico to East Texas and Mont Belvieu, Texas.
Oneok Partners will now operate both the pipelines while the remaining 20% of West Texas LPG will be owned by Martin Midstream Partners.
Oneok Partners president and chief executive officer Terry Spencer said: "The West Texas LPG and Mesquite NGL pipelines will integrate into our existing natural gas liquids segment’s portfolio of assets and provide fee-based earnings to the partnership.
"With the closing of this transaction, we welcome the approximately 75 employees currently operating these assets to the ONEOK Partners team. We look forward to working with all of them and assisting them with their transition to ONEOK Partners."
The two pipeline assets are expected to generate approximately $40m in annual adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in 2014.
