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 Appalachian basin assets include approximately 217 miles of pipeline including gathering capacity of 550 MMcf/d from SGG, connecting producing wells with interconnections with Columbia Gas Transmission, Texas Eastern Transmission and the NEXUS Gas Transmission project, according to a weekly snapshot of oil and gas deal activity written by 1Derrick for OGFJ in early October.
"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 Gerry Anderson, DTE Energy chairman and CEO.
The assets will become part of the DTE's non-utility Gas Storage and Pipeline business which currently owns and manages a network of natural gas gathering, transmission and storage facilities serving the Midwest, Ontario and Northeast markets.
In early October, DTE financed the transaction through the issuance of $675 million of equity units and the remainder with senior notes.
Wells Fargo Securities LLC served as the exclusive financial advisor to DTE for the transaction.