DTE Energy closes purchase of natural gas midstream assets

DTE Energy today announced it completed the $1.3-B purchase of midstream natural gas assets in Pennsylvania and West Virginia.

"This completed acquisition is a great addition to our portfolio and supports both our strategy in this segment and our drive to continue to grow and earn strong returns for shareholders," said Gerry Anderson, DTE Energy chairman and CEO.

The acquired assets are in a highly productive area of the Southwest Marcellus/Utica region and have significant expansion potential.  

The completed acquisition includes:

• 100% of Appalachia Gathering System (AGS) from M3 Midstream LLC
• 40% of Stonewall Gas Gathering (SGG) from M3 Midstream LLC
• 15% of SGG from Vega Energy Partners 

 

The purchase aligns with DTE's existing strengths and synergies in managing natural gas midstream assets and provides access to multiple markets. 

"Energy companies in the Midwest, including DTE, are in the process of transitioning a good portion of their electrical generation capacity from coal to natural gas," said Anderson.  "The acquisition fully supports this move toward a lower-carbon future."

The new natural gas infrastructure will:

• Complement DTE's existing gas midstream business
• Provide a foundation for new value creation with significant growth potential
• Expand DTE's footprint in the most prolific production region in the country, spanning the heart of the SW Marcellus/Dry Utica
• Provide solid economics underpinned by long-term contracts and high-quality reserves

 

In early October, the company successfully financed the transaction through the issuance of $675 MM of equity units and the remainder with senior notes.

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