M&A
confidence high
sentiment positive
materiality 0.85
DT Midstream to acquire three ONEOK pipelines for $1.2B; accretive to cash flow
DT Midstream, Inc.
- Acquires Guardian, Midwestern Gas, and Viking Gas pipelines from ONEOK (NYSE: OKE) for $1.2B cash.
- Total capacity >3.7 Bcf/d across ~1,300 miles; ~10.5x 2025 EBITDA multiple.
- Financed with ~$900M debt and ~$300M equity; expected to close in late 2024 or early 2025.
- ~90% demand-pull customer base, ~85% investment-grade; pipeline segment to be ~70% of 2025 Adj. EBITDA.
- Immediately accretive to Distributable Cash Flow; bolt-on to DTM's existing Midwest assets.