DTE Snaps Up $2.25bn in US Gas Infrastructure

DTE Midstream, a gas infrastructure operator owned by Detroit-based DTE Energy, is set to buy a gas gathering system and pipeline in Louisiana’s Haynesville shale basin.

DTE has agreed to pay $2.25bn in cash for the assets to Momentum Midstream and Indigo Natural Resources, as well as a further $400mn once the 241-km pipeline is completed in the second half of 2020, it said in a statement on October 18. Indigo is the main producer feeding gas into the network.

The acquisition, which should close in the fourth quarter following regulatory approvals, is expected to add $0.15 to DTE’s operating earnings/share in 2020, reaching $0.45 over five years.

Commenting, DTE CEO Jerry Norcia said the deal added “premium assets in one of the fasting growing and best positioned US shale formations.”

“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,” he said.

DTE Midstream operates gas storage, pipelines and gathering systems across the Midwest, Appalachia, the Northeast and Ontario. The latest transaction fits in DTE’s plan to invest $4-5bn in its midstream business between 2019 and 2023.