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ONEOK's profit increases on the back of acquisition gains

ONEOK, a U.S.-based pipeline operator, reported a higher profit for the second quarter on Monday. This was boosted by acquisitions.

The company increased its presence in Permian basin by acquiring a 43% control interest in Enlink Midstream in late last year for approximately $3.3 billion.

ONEOK acquired the remaining shares of EnLink Midstream that were publicly held on 31 January 2025.

A year ago, the company's adjusted core profit for natural gas gathering and converting segment was $540 million. This is largely due to the acquisition.

ONEOK has expanded its portfolio by acquiring other companies, including Medallion Midstream as well as an NGL pipeline from Easton Energy.

In a press release, CEO Pierce Norton II stated that "our recent strategic acquisitions deliver synergies while strengthening our position as the leading midstream player."

The company entered the market for refined products and crude transport in 2023, after purchasing rival Magellan midstream in a $18,8 billion deal.

The raw feed volume of Rocky Mountain natural gases liquids (NGL) increased by 11% in comparison to the previous year.

ONEOK operates a 60,000 mile network of pipelines that transports natural gas, NGLs and refined products, as well as crude oil.

The Tulsa-based company, which is headquartered in Oklahoma, reported a net profit attributable shareholders of $841,000,000, or 1.34 dollars per share for the quarter that ended on June 30. This was up from $780,000,000, or 1.00 dollar per share a year ago. (Reporting and editing by Mohammed Safi Shamsi; Khusbu Jena)

(source: Reuters)