DTE Midstream has announced that it will acquire 100% of the assets from Momentum Midstream and Indigo Natural Resources. DTE Midstream has entered into an agreement to acquire a gathering system and gathering pipeline in the Haynesville shale formation of Louisiana.
As per the agreement, the purchase price will be of US$2.25 billion in cash, plus a US$400 million milestone payment upon completion of the gathering pipeline in the second half of 2020. The selling companies are the primary gas producers supplying the system.
"DTE's non-utility operations continue to grow, perform well and fit nicely into our planned utility and non-utility mix," said Jerry Norcia, president and CEO of DTE Energy. "This acquisition is highly accretive, has world-class resources, has excellent access to large markets, and is in the early- to mid-cycle development phase. It checks all of our boxes," Norcia added.
The acquisition assets includes an existing gathering system and a 150 mile gathering pipeline that is under construction and which will be in service in the second half of 2020.