DTE Energy today 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:
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:
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.
Source: DTE Energy
Date: Oct 20, 2016