DT Midstream, Inc. announced on November 19, 2024, an agreement to acquire a portfolio of three FERC-regulated natural gas transmission pipelines from ONEOK, Inc. for $1.2 billion in cash. The acquisition includes Guardian Pipeline, Midwestern Gas Transmission, and Viking Gas Transmission.
These pipelines collectively offer a total capacity exceeding 3.7 Bcf/d and span approximately 1,300 miles across seven states in the Midwest market region. The acquisition price represents an approximate 10.5x 2025 EBITDA multiple, indicating a strategic investment in high-quality assets.
The transaction is expected to be immediately accretive to Distributable Cash Flow and will increase the pipeline segment's contribution to DT Midstream's Adjusted EBITDA to approximately 70% in 2025. The acquired portfolio features a strong customer base, with about 90% demand-pull and 85% of revenues from investment-grade customers, aligning with DT Midstream's strategy of durable, demand-based contracts. The acquisition is anticipated to close in late 2024 or early 2025, subject to regulatory approvals.
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