DTE Energy’s midstream business announced on Friday, October 18, it would buy a natural gas gathering system and pipeline in Louisiana’s Haynesville shale formation for US$2.25 billion in cash, expanding the unit’s operations to the Gulf coast.
DTE Midstream, which currently focuses on the Midwest and Northeast of the United States, will acquire M5 Louisiana Holdings from Momentum Midstream and Indigo Natural Resources, which is the main producer which feeds gas into the network.
The deal, which also includes a US$400 million payment upon completion of a 150-mile gathering pipeline, currently under construction and due to enter service in the second half of 2020, will immediately add 15 cents to the company’s operating earnings per share in 2020, a company statement said.
“The assets are located in a great demand area, the quickly growing Gulf Coast natural gas market, with excellent access to other pipeline systems,” DTE Energy CEO Jerry Norcia told analysts on a call to discuss the acquisition.
Full Content: Reuters
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