The acquisition will give ONEOK access to a network of crude oil and refined products conduits and terminals from Texas to Minnesota (Representational image)|The Alaska Pipeline|Ryan McFarland|CC BY 2.0

Natural gas company ONEOK Inc. has struck an $18.8 billion deal to buy Magellan Midstream Partners LP. The cash-and-stock transaction would create one of the US’s largest oil and natural gas pipeline operators.

Both are Oklahoma-based.

Magellan will receive $25 in cash and 0.6670 shares of ONEOK stock per unit—about 22%. The deal includes $8.8 billion in new equity and the assumption of $5 billion of existing net debt.

The acquisition will give ONEOK access to a network of crude oil and refined products conduits and terminals from Texas to Minnesota.