WASHINGTON (dpa-AFX) - ONEOK Inc. (OKE) sad that it agreed to sell its three wholly owned interstate natural gas pipeline systems to DT Midstream Inc. (DTM) for a total cash consideration of $1.2 billion subject to customary adjustments.
The transaction is expected to close in the fourth quarter of 2024.
The three interstate pipeline systems include Guardian Pipeline, L.L.C., which interconnects with several pipelines at the Chicago Hub near Joliet, Illinois, and with local natural gas distribution and electric generation companies in Wisconsin; Midwestern Gas Transmission, which is a bidirectional system with a major pipeline interconnect near Portland, Tennessee, and with multiple interstate pipelines that have access to both the Utica Shale and the Marcellus Shale, and multiple interstate pipelines at the Chicago Hub near Joliet, Illinois; and Viking Gas Transmission, which is a bidirectional system that interconnects with a major pipeline system at the U.S. border near Emerson, Canada, and Marshfield, Wisconsin.
ONEOK expects the net proceeds from the sale will enhance its financial flexibility and its deleveraging trend toward its target of 3.5 times during 2026.
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