CORRECTION - DT Midstream Announces $1.2 Billion Acquisition of Strategic Midwest FERC-Regulated Natural Gas Pipelines

Core Viewpoint - DT Midstream, Inc. has announced a $1.2 billion acquisition of three FERC-regulated natural gas transmission pipelines from ONEOK, Inc., enhancing its portfolio in the Midwest market with a total capacity exceeding 3.7 Bcf/d [1][6] Transaction Details - The acquisition includes 100% operating ownership of Guardian Pipeline, Midwestern Gas Transmission, and Viking Gas Transmission [2][3] - The transaction consideration is $1.2 billion in cash, with a transaction multiple of approximately 10.5x 2025 Adjusted EBITDA [5] - Financing for the transaction will consist of about $900 million in debt and approximately $300 million in common equity [5] Strategic Rationale - The acquisition aligns with DT Midstream's strategy of owning natural gas assets that connect supply basins with demand centers, supported by take-or-pay contracts with creditworthy customers [6] - The pipeline segment is expected to contribute approximately 70% of Adjusted EBITDA in 2025, increasing the backlog of organic growth projects [6] Pipeline Details - Guardian Pipeline is a 260-mile interstate pipeline interconnected to DT Midstream's Vector Pipeline and serves key demand centers in Wisconsin [2] - Midwestern Gas Transmission is a 400-mile bi-directional pipeline connecting Appalachia supply to the Midwest market [3] - Viking Gas Transmission is a 675-mile pipeline linking utility customers in Minnesota, Wisconsin, and North Dakota to Canadian supply [3] Closing Details - The transaction has been approved by DT Midstream's Board of Directors and is expected to close in late 2024 or early 2025, pending regulatory approvals [7] Company Overview - DT Midstream is involved in the ownership, operation, and development of natural gas pipelines and related facilities, aiming for net zero greenhouse gas emissions by 2050 [10]