03:41 PM EDT, 05/14/2024 (MT Newswires) -- ONEOK's ( OKE ) proposed acquisition of a natural gas liquids system from Easton Energy for $280 million, is likely to enhance the company's Gulf Coast infrastructure, UBS Securities said in a note emailed Tuesday.

"The company also believes the acquisition will accelerate its ability to capture commercial synergies related to its recent [Magellan Midstream Partners (MMP)] acquisition, UBS said.

The deal includes approximately 450 miles of pipelines in Texas and Louisiana, connecting to the company's Mont Belvieu and Houston systems, UBS said, adding that "The transaction is expected to complete mid-2024."

ONEOK ( OKE ) raised its full-year EBITDA guidance during Q1 earnings due to strong performance, and this acquisition is seen as putting the company on track, the note said.

UBS has a buy rating on ONEOK ( OKE ) with a 12-month price target of $93.

Shares of ONEOK ( OKE ) were up 1.3% in recent Tuesday trading.

Price: 81.62, Change: +1.02, Percent Change: +1.26