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

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