DTE Energy closes purchase of natural gas midstream assets

Source: DTE Energy

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

DTE Energy announced it completed the $1.3 billion 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 percent of Appalachia Gathering System (AGS) from M3 Midstream LLC
  • 40 percent of Stonewall Gas Gathering (SGG) from M3 Midstream LLC
  • 15 percent 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 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.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs