DTE Midstream $2.25 billion acquisition of Lousiana gas gathering and pipeline project

18/10/2019
Asset acquisition

$ 2.25 billion

Announced

18/10/2019


Overview:

  • Natural gas provider DTE Midstream has entered into an agreement to buy a gathering system and 150-mile pipeline project for $2.25 billion in cash from Momentum Midstream and Indigo Natural Resources. DTE must pay an additional $400 million upon the completion of the pipeline
  • The assets are located in the Haynesville shale formation of Louisiana. The gathering pipeline is scheduled to be completed in the second half of 2020.
  • Barclays is the financial adviser to DTE Energy, the parent company of DTE Midstream. Jefferies and Credit Suisse are the financial advisers to Momentum.
  • The assets allow DTE Midstream to gain access to natural gas pipelines serving the Gulf Coast.

Chynna Lewis – Researcher

Jurisdictions:

United States
Louisiana
Michigan

Deal type:

Asset acquisition

Practice areas:

M&A
Project development

Governing law:

United States

Industry sector:

Oil and gas


Firms:

Party: DTE Energy (Acquirer)


Party: Indigo Natural Resources (Seller)


Party: DTE Energy (Acquirer)


Party: Momentum Midstream (Seller)