CORRECTION - DT Midstream Announces $1.2 Billion Acquisition of Strategic Midwest FERC-Regulated Natural Gas Pipelines

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DT Midstream, Inc.
DT Midstream, Inc.

In a release issued under the same headline earlier today by DT Midstream, Inc. (NYSE: DTM), please note that in the "Conference Call" paragraph of the release, the call time should be 9:30 a.m. ET (8:30 a.m. CT) on Wednesday, November 20, rather than 8:00 a.m. ET (7:00 a.m. CT) as previously stated. The corrected release follows:

DT Midstream Announces $1.2 Billion Acquisition of Strategic Midwest FERC-Regulated Natural Gas Pipelines

  • Three regulated natural gas transmission pipelines with total capacity of more than 3.7 Bcf/d across the Upper Midwest

  • Premier assets with a high-quality demand-pull customer base

  • Connected to DTM’s existing assets and strategically located to take advantage of strong power demand fundamentals

DETROIT, Nov. 19, 2024 (GLOBE NEWSWIRE) -- DT Midstream, Inc. (NYSE: DTM) today announced that it has reached an agreement to acquire a portfolio of three FERC-regulated natural gas transmission pipelines from ONEOK, Inc. (NYSE: OKE) for $1.2 billion. The pipelines have a total capacity of more than 3.7 Bcf/d with approximately 1,300 miles across seven states in the attractive Midwest market region which is expected to experience continued growth in power demand. The acquisition price represents an approximately 10.5x 2025 EBITDA multiple.

Under the terms of the agreement, DT Midstream will acquire 100% operating ownership in Guardian Pipeline, Midwestern Gas Transmission and Viking Gas Transmission.

Guardian Pipeline, L.L.C. is an approximately 260-mile interstate pipeline which is interconnected to DT Midstream’s Vector Pipeline, the Chicago Hub and serves key Wisconsin demand centers.

Midwestern Gas Transmission is an approximately 400-mile bi-directional interstate pipeline which connects Appalachia supply to the Midwest market region between Tennessee and the Chicago Hub. The pipeline has an interconnection with Guardian Pipeline.

Viking Gas Transmission is an approximately 675-mile interstate pipeline which connects key utility customers in Minnesota, Wisconsin and North Dakota to Canadian supply at Emerson, Manitoba.

“Expanding our scale through this bolt-on natural gas pipeline acquisition fully aligns with our pure play natural gas strategy. This transaction also increases the revenue contribution from our pipeline segment, supported by take-or-pay contracts with strong credit quality utility customers” said David Slater, President and CEO. “We look forward to welcoming the team members that support these premier assets, both in field operations and in DT Midstream’s new Tulsa office,” added Slater.

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