ONEOK Inc. has finalized a decision to invest $365 million in a new sour gas processing plant in the Delaware Basin. The announcement of this investment was made on August 5th during the company’s second-quarter earnings presentation. The plant, named Big Horn, is projected to process 300 MMcf/d and will be equipped to handle gas with high levels of CO 2. Construction of the plant is expected to be completed by mid-2027 and it will be supported by dedicated production acres. This move by ONEOK is a strategic response to the significant focus on sour gas treatment in the Delaware processing sector.
Shortly before ONEOK’s announcement, MPLX revealed a $2.38 billion deal to acquire Northwind Midstream, a company known for its expertise in sour gas processing in the basin. By adding the Big Horn plant, ONEOK will be bolstering its Delaware processing capacity to 1.1 Bcf/d.
In the company’s second-quarter earnings call, Sheridan Swords, ONEOK’s chief commercial officer, emphasized the Permian Basin’s importance as a key area of growth for ONEOK. Swords stated that the company will be actively evaluating opportunities to expand and enhance its integrated operations in the basin.
Tulsa-based ONEOK reported a rise in natural gas traffic on its network during the second quarter. Following a slow first quarter, the company saw an uptick in natural gas volumes and experienced double-digit growth in NGLs across all regions. Notably, the company’s entire NGL network transported approximately 1.527 MMbbl/d, marking an 18% increase in volume.
Looking ahead, ONEOK has maintained its original 2025 financial guidance ranges, which include an anticipated net income between $3.1 billion to $3.6 billion. However, the company revised its 2026 earnings guidance downward by 2% due to uncertainties stemming from a volatile macroeconomic environment, according to ONEOK’s CFO, Walter Hulse.
