ONEOK Partners LP ( NYSE: OKS) will invest about $365 million to $470 million between now and fourth-quarter 2016 in the South Central Oklahoma Oil Province (Scoop) play, the company said July 25.
It will construct a new gas processing facility—the Knox plant will handle 200 million cubic feet per day (MMcf/d)—in Grady and Stephens counties, alongside related infrastructure, ONEOK Partners said.
"The Knox plant in Oklahoma will increase our presence in the growing Scoop play and increase our Oklahoma natural gas processing capacity to approximately 900 MMcf/d," said Terry K. Spencer, president and CEO.
These projects are scheduled to be finished during 2016’s fourth quarter, the company said.
Of the total estimate--$365 million to $470 million--between $175 million and $240 million is allocated for the plant, while $190 million to $230 million is allocated for the related infrastructure, the company said.
Additionally, ONEOK Partners detailed its capital projects. Total investments of about $6.4 billion to $6.8 billion are allocated for acquisition and infrastructure growth projects through 2016. Of that estimated amount, about $3.4 billion to $3.7 billion is allocated for natural gas gathering and processing. Another $3 billion to $3.1 billion is allocated for NGL projects, while about $3.1 billion to $3.3 billion is allocated for resource development in the Williston Basin, the company said.
All of these projects should generate EBITDA multiples of 5x to 7x, ONEOK Partner said.
Currently, ONEOK Partners has a “backlog of unannounced growth projects” worth between $3 billion and $4 billion, the company noted.
Tulsa, Okla.-based ONEOK Partners LP is a domestic-focused midstream MLP.
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