ONEOK, Inc. announced on November 19, 2024, that it has executed a definitive agreement to sell its three wholly owned interstate natural gas pipeline systems to DT Midstream, Inc. The transaction is for a total cash consideration of $1.2 billion, subject to customary adjustments.
The pipelines included in the sale are Guardian Pipeline, Midwestern Gas Transmission, and Viking Gas Transmission. The purchase price represents 10.8 times the previous 12 months' EBITDA as of June 30, 2024, based on Federal Energy Regulatory Commission filings.
This divestiture is part of ONEOK's strategy to optimize its integrated asset portfolio and advance its capital allocation priorities. The net proceeds from the sale are expected to enhance the company's financial flexibility and contribute to its goal of achieving a leverage target of 3.5 times during 2026.
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