DT Midstream, Inc. Completes $1.2 Billion Acquisition of Natural Gas Transmission Pipelines from ONEOK, Inc.

DT Midstream acquires three natural gas pipelines from ONEOK for $1.2 billion, enhancing its pipeline segment revenue.

Quiver AI Summary

DT Midstream, Inc. has announced the completion of its acquisition of three natural gas transmission pipelines from ONEOK, Inc. for $1.2 billion, effective December 31, 2024. This deal is part of DT Midstream's strategy to enhance its natural gas portfolio and increase revenue from its pipeline segment, which is backed by strong contracts with reliable utility customers. The acquisition includes 100% ownership of Guardian Pipeline, Midwestern Gas Transmission, and Viking Gas Transmission, totaling over 3.7 Bcf/d of capacity across approximately 1,300 miles in the Midwest. The company is also focused on transitioning to net-zero greenhouse gas emissions by 2050 and aims for a 30% reduction by 2030.

Potential Positives

• DT Midstream has successfully closed a significant acquisition of three FERC-regulated natural gas transmission pipelines from ONEOK for $1.2 billion, enhancing its asset portfolio.
• This acquisition aligns with DT Midstream's strategic focus on pure play natural gas, potentially strengthening its market position.
• The deal is expected to increase revenue contribution from the pipeline segment, backed by take-or-pay contracts with creditworthy utility customers.
• The acquisition adds over 3.7 Bcf/d of capacity and approximately 1,300 miles of pipelines in the valuable Midwest market region, expanding the company’s operational footprint.

Potential Negatives

• The press release highlights numerous risks associated with forward-looking statements, indicating that DT Midstream's future performance may be unpredictable due to various external and internal factors.
• Significant cash consideration of $1.2 billion for the acquisition may strain the company's financial resources or impact its ability to invest in other areas.
• Potential challenges in successfully integrating the acquired assets and realizing anticipated benefits could lead to operational disruptions and financial strain.

FAQ

What is the recent acquisition by DT Midstream?

DT Midstream acquired three FERC-regulated natural gas transmission pipelines from ONEOK for $1.2 billion.

What is the capacity of the acquired pipelines?

The acquired pipelines have a total capacity of more than 3.7 Bcf/d across approximately 1,300 miles.

How does this acquisition align with DT Midstream's strategy?

This acquisition supports DT Midstream's pure play natural gas strategy and increases revenue from the pipeline segment.

Where are the acquired pipelines located?

The acquired pipelines span seven states in the Midwest market region of the United States.

What are DT Midstream's environmental goals?

DT Midstream aims to achieve net zero greenhouse gas emissions by 2050, with a 30% reduction by 2030.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$DTM Insider Trading Activity

$DTM insiders have traded $DTM stock on the open market 1 times in the past 6 months. Of those trades, 1 have been purchases and 0 have been sales.

Here’s a breakdown of recent trading of $DTM stock by insiders over the last 6 months:

• JEFFREY A JEWELL (Executive V.P., CFO) purchased 200 shares.

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

$DTM Hedge Fund Activity

We have seen 221 institutional investors add shares of $DTM stock to their portfolio, and 177 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• STANDARD INVESTMENTS LLC added 965,000 shares (+inf%) to their portfolio in Q3 2024
• FMR LLC added 754,839 shares (+1476.9%) to their portfolio in Q3 2024
• BROOKFIELD CORP /ON/ added 655,695 shares (+171.3%) to their portfolio in Q3 2024
• MITSUBISHI UFJ TRUST & BANKING CORP removed 638,042 shares (-34.2%) from their portfolio in Q3 2024
• GOLDMAN SACHS GROUP INC removed 572,281 shares (-15.4%) from their portfolio in Q3 2024
• JPMORGAN CHASE & CO removed 528,874 shares (-28.9%) from their portfolio in Q3 2024
• INTERNATIONAL ASSETS INVESTMENT MANAGEMENT, LLC added 497,918 shares (+inf%) to their portfolio in Q3 2024

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Full Release

DETROIT, Dec. 31, 2024 (GLOBE NEWSWIRE) -- DT Midstream, Inc. (NYSE: DTM) today announced that it has successfully closed on the acquisition of a portfolio of three FERC-regulated natural gas transmission pipelines from ONEOK, Inc. (NYSE: OKE), effective as of 11:59 p.m. CT on Dec. 31, 2024, for a total cash consideration of $1.2 billion.

“The bolt-on acquisition of these premier pipelines is fully aligned with our pure play natural gas strategy,” said David Slater, DT Midstream President and CEO

. “

This acquisition also increases the revenue contribution from our pipeline segment, supported by take-or-pay contracts with strong credit quality utility customers.”

“We are happy to have on board the team members that support these assets, both in field operations and in DT Midstream’s new Tulsa office,” added Slater.

DT Midstream has acquired 100% operating ownership in Guardian Pipeline, Midwestern Gas Transmission and Viking Gas Transmission. The acquired pipelines have a total capacity of more than 3.7 Bcf/d with approximately 1,300 miles across seven states in the attractive Midwest market region.

About DT Midstream



DT Midstream (NYSE: DTM) is an owner, operator and developer of natural gas interstate and intrastate pipelines, storage and gathering systems, compression, treatment and surface facilities. The company transports clean natural gas for utilities, power plants, marketers, large industrial customers and energy producers across the Southern, Northeastern and Midwestern United States and Canada. The Detroit-based company offers a comprehensive, wellhead-to-market array of services, including natural gas transportation, storage and gathering. DT Midstream is transitioning towards net zero greenhouse gas emissions by 2050, including a goal of achieving 30% of its carbon emissions reduction by 2030.

Forward-looking Statements



This release contains statements which, to the extent they are not statements of historical or present fact, constitute “forward-looking statements” under the securities laws. These forward-looking statements are intended to provide management’s current expectations or plans for our future operating and financial performance, business prospects, outcomes of regulatory proceedings, market conditions, and other matters, based on what we believe to be reasonable assumptions and on information currently available to us.

Forward-looking statements can be identified by the use of words such as “believe,” “expect,” “expectations,” “plans,” “strategy,” “prospects,” “estimate,” “project,” “target,” “anticipate,” “will,” “should,” “see,” “guidance,” “outlook,” “confident” and other words of similar meaning. The absence of such words, expressions or statements, however, does not mean that the statements are not forward-looking. In particular, express or implied statements relating to future earnings, cash flow, results of operations, uses of cash, tax rates and other measures of financial performance, future actions, conditions or events, potential future plans, strategies or transactions of DT Midstream, and other statements that are not historical facts, are forward-looking statements.

Forward-looking statements are not guarantees of future results and conditions, but rather are subject to numerous assumptions, risks, and uncertainties that may cause actual future results to be materially different from those contemplated, projected, estimated, or budgeted. Many factors may impact forward-looking statements of DT Midstream including, but not limited to, the following: changes in general economic conditions, including increases in interest rates and associated Federal Reserve policies, a potential economic recession, and the impact of inflation on our business; industry changes, including the impact of consolidations, alternative energy sources, technological advances, infrastructure constraints and changes in competition; global supply chain disruptions; actions taken by third-party operators, processors, transporters and gatherers; changes in expected production from Expand Energy and other third parties in our areas of operation; demand for natural gas gathering, transmission, storage, transportation and water services; the availability and price of natural gas to the consumer compared to the price of alternative and competing fuels; our ability to successfully and timely implement our business plan; our ability to complete organic growth projects on time and on budget; our ability to finance, complete, or successfully integrate acquisitions; the price and availability of debt and equity financing; our ability to realize the anticipated benefits of the transaction described herein (“Transaction”), and our ability to manage the risks of the Transaction; restrictions in our existing and any future credit facilities and indentures; the effectiveness of our information technology and operational technology systems and practices to detect and defend against evolving cyber attacks on United States critical infrastructure; changing laws regarding cybersecurity and data privacy, and any cybersecurity threat or event; operating hazards, environmental risks, and other risks incidental to gathering, storing and transporting natural gas; geologic and reservoir risks and considerations; natural disasters, adverse weather conditions, casualty losses and other matters beyond our control; the impact of outbreaks of illnesses, epidemics and pandemics, and any related economic effects; the impacts of geopolitical events, including the conflicts in Ukraine and the Middle East; labor relations and markets, including the ability to attract, hire and retain key employee and contract personnel; large customer defaults; changes in tax status, as well as changes in tax rates and regulations; the effects and associated cost of compliance with existing and future laws and governmental regulations, such as the Inflation Reduction Act; changes in environmental laws, regulations or enforcement policies, including laws and regulations relating to climate change and greenhouse gas emissions; ability to develop low carbon business opportunities and deploy greenhouse gas reducing technologies; changes in insurance markets impacting costs and the level and types of coverage available; the timing and extent of changes in commodity prices; the success of our risk management strategies; the suspension, reduction or termination of our customers’ obligations under our commercial agreements; disruptions due to equipment interruption or failure at our facilities, or third-party facilities on which our business is dependent; the effects of future litigation; and the risks described in our Annual Report on Form 10-K for the year ended December 31, 2023 and our reports and registration statements filed from time to time with the SEC.

The above list of factors is not exhaustive. New factors emerge from time to time. We cannot predict what factors may arise or how such factors may cause actual results to vary materially from those stated in forward-looking statements, see the discussion under the section entitled “Risk Factors” in our Annual Report for the year ended December 31, 2023, filed with the SEC on Form 10-K and any other reports filed with the SEC. Given the uncertainties and risk factors that could cause our actual results to differ materially from those contained in any forward-looking statement, you should not put undue reliance on any forward-looking statements.

Any forward-looking statements speak only as of the date on which such statements are made. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements, whether as a result of new information, subsequent events or otherwise.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.