Detroit-based DTE Energy has completed a $1.3 billion purchase of midstream natural gas assets in Pennsylvania and West Virginia.
The completed acquisition includes 100 percent of Appalachia Gathering System from M3 Midstream, 40 percent of Stonewall Gas Gathering from M3 Midstream, and 15 percent of SGG from Vega Energy Partners.
“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,” says Gerry Anderson, chairman and CEO of DTE Energy. “The acquisition fully supports this move toward a lower-carbon future.”
Utility officials say the new natural gas infrastructure will complement DTE’s existing gas midstream business, provide a foundation for new value creation with growth potential, and expand the organization’s footprint in the region.
Wells Fargo Securities served as the financial advisor to DTE for the transaction, which was financed through the issuance of $675 million of equity units and senior notes.
DTE Energy’s 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.