DTE's Haynesville Deal Accelerates Midstream Investment Plans DTE
By Colin Kellaher
DTE Energy Co. (DTE) Friday said its deal to buy a gathering system and pipeline in the Haynesville shale formation accelerates its five-year investment plan for its DTE Midstream non-utility unit.
The Detroit energy company has planned to invest $4 billion to $5 billion in the DTE Midstream business from 2019 to 2023.
DTE is paying an initial $2.25 billion for the assets, which it is buying from privately held Momentum Midstream and Indigo Natural Resources, along with a $400 million milestone payment upon completion of the pipeline.
The company said another $600 million of contracted future growth capital brings its total acquisition-related investment to $3.25 billion.
DTE said it will fund the acquisition with a mix of 50% senior unsecured debt and 50% equity, mainly mandatory convertible equity units. The company added that it expects to maintain its strong balance sheet and investment-grade credit profile.