DT Midstream's Strategic Expansion in Midwest with Pipeline Acquisition

Deal News | Dec 31, 2024 | Globenewswire

DT Midstream's Strategic Expansion in Midwest with Pipeline Acquisition

DT Midstream, Inc. has announced the successful acquisition of a portfolio of three FERC-regulated natural gas transmission pipelines from ONEOK, Inc. The acquisition, valued at $1.2 billion, closed effectively at the end of December 31, 2024. This strategic bolt-on acquisition aligns with DT Midstream's commitment to being a pure play natural gas entity and is expected to boost the revenue from its pipeline segment through take-or-pay contracts secured with utilities of strong credit quality. The assets acquired include the Guardian Pipeline, Midwestern Gas Transmission, and Viking Gas Transmission, spanning over 1,300 miles with a capacity of 3.7 billion cubic feet per day across seven Midwest states. DT Midstream operates across multiple regions in the U.S. and Canada and seeks to achieve net zero greenhouse gas emissions by 2050, targeting a 30% carbon reduction by 2030. Despite forward-looking statements emphasizing future performance prospects, DT Midstream acknowledges risks that could impact actual results, such as economic conditions, competitive industry changes, and regulatory challenges.

Sectors

  • Energy Infrastructure
  • Natural Gas

Geography

  • United States – The companies involved, DT Midstream and ONEOK, and the pipelines acquired are based and operate within the United States, specifically across seven Midwest states.

Industry

  • Energy Infrastructure – The article discusses the acquisition of natural gas pipelines, which is a core aspect of the energy infrastructure industry, focusing on the transportation and handling of natural gas.
  • Natural Gas – DT Midstream's acquisition of pipelines is directly related to the natural gas sector, as it involves the transmission and operations of natural gas resources.

Financials

  • 1.2 billion – Total cash consideration paid by DT Midstream for the acquisition of natural gas pipelines from ONEOK.

Participants

NameRoleTypeDescription
DT Midstream, Inc.Acquiring CompanyCompanyA Detroit-based company involved in the development and operation of natural gas pipelines and related infrastructure.
ONEOK, Inc.Selling CompanyCompanyA company that sold its portfolio of natural gas pipelines to DT Midstream.
David SlaterCEOPersonThe President and CEO of DT Midstream, providing strategic direction for the company's acquisitions and operations.