DETROIT, Oct. 20, 2016 /PRNewswire/ -- DTE Energy today announced it completed the $1.3 billion purchase of midstream natural gas assets in Pennsylvania and West Virginia.
"This completed acquisition is a great addition to our portfolio and supports both our strategy in this segment and our drive to continue to grow and earn strong returns for shareholders," said Gerry Anderson, DTE Energy chairman and CEO.
The acquired assets are in a highly productive area of the Southwest Marcellus/Utica region and have significant expansion potential.
The completed acquisition includes:
- 100 percent of Appalachia Gathering System (AGS) from M3 Midstream LLC
- 40 percent of Stonewall Gas Gathering (SGG) from M3 Midstream LLC
- 15 percent of SGG from Vega Energy Partners
The purchase aligns with DTE's existing strengths and synergies in managing natural gas midstream assets and provides access to multiple markets.
"Energy companies in the Midwest, including DTE, are in the process of transitioning a good portion of their electrical generation capacity from coal to natural gas," said Anderson. "The acquisition fully supports this move toward a lower-carbon future."
The new natural gas infrastructure will:
- Complement DTE's existing gas midstream business
- Provide a foundation for new value creation with significant growth potential
- Expand DTE's footprint in the most prolific production region in the country, spanning the heart of the SW Marcellus/Dry Utica
- Provide solid economics underpinned by long-term contracts and high-quality reserves
In early October, the company successfully financed the transaction through the issuance of $675 million of equity units and the remainder with senior notes.
Wells Fargo Securities, LLC served as the exclusive financial advisor to DTE for the transaction.
About DTE Energy
DTE Energy (NYSE: DTE) is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. Its operating units include an electric utility serving 2.2 million customers in Southeastern Michigan and a natural gas utility serving 1.2 million customers in Michigan. The DTE Energy portfolio includes non-utility energy businesses focused on power and industrial projects, natural gas pipelines, gathering and storage, and energy marketing and trading. Information about DTE Energy is available at dteenergy.com, twitter.com/dte_energy and facebook.com.
Certain information presented herein includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, and businesses of DTE Energy. Words such as "anticipate," "believe," "expect," "projected," "aspiration," and "goals" signify 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 these forward-looking statements including, but not limited to, the following: the failure to consummate the transaction, the risk that we will not achieve expected synergies, the risk that the operations being acquired in the acquisition will not be successfully integrated or that such integration will take longer than expected, the risk that the operations being acquired will not perform as expected; and the risks discussed in our public filings with the Securities and Exchange Commission. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. New factors emerge from time to time. We cannot predict what factors may arise or how such factors may cause results to differ materially from those contained in any forward-looking statement. Any forward-looking statements speak only as of the date on which such statements are made. We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. This document should also be read in conjunction with the Forward-Looking Statements section of the joint DTE Energy and DTE Electric 2015 Form 10-K and 2016 Forms 10-Q (which sections are incorporated by reference herein), and in conjunction with other SEC reports filed by DTE Energy.
SOURCE: DTE Energy
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SOURCE DTE Energy