Summary
DTE Energy Company (DTE) announced on September 26, 2016, a significant strategic move into the midstream natural gas sector with the acquisition of assets in the Marcellus/Utica region. The company is acquiring 100% of Appalachia Gathering Systems in Pennsylvania and 55% of Stonewall Gas Gathering in West Virginia from M3 Midstream LLC and its affiliates for an aggregate of $1.3 billion. This acquisition is expected to close in October 2016, pending customary closing conditions including regulatory approval. In conjunction with this acquisition, DTE Energy also raised its 2016 operating earnings guidance. The company now expects earnings per share to be in the range of $5.09 - $5.35, an increase from the previous guidance of $4.91 - $5.19. Investors should note that the company will be providing operating earnings guidance, which may exclude certain items impacting reported earnings, and reconciliations are not provided due to the unpredictable nature of these items.
Key Highlights
- 1DTE Energy is acquiring midstream natural gas assets in the Marcellus/Utica region for $1.3 billion.
- 2The acquisition includes 100% of Appalachia Gathering Systems (PA) and 55% of Stonewall Gas Gathering (WV).
- 3The deal is expected to close in October 2016, subject to standard closing conditions like HSR Act review.
- 4DTE Energy has increased its 2016 operating earnings guidance to $5.09 - $5.35 per share.
- 5The acquired assets are from M3 Midstream LLC and affiliated entities.
- 6This move signifies an expansion into the natural gas midstream infrastructure sector.