DTE Energy to buy natural gas gathering system, pipeline for $2.25 bln
Adds details, background
Oct 18 (Reuters) - DTE Energy's DTE.N midstream business said on Friday it would buy a natural gas gathering system and pipeline in Louisiana's Haynesville shale for $2.25 billion in cash.
DTE Midstream will acquire the assets from Momentum Midstream and Indigo Natural Resources.
DTE Energy has looked to expand into natural gas pipelines and storage, which provides steady cash flows even during energy price swings, at a time when advanced energy efficiency measures have made the provision of electricity less lucrative for companies such as DTE.
The deal, which also includes a $400 million milestone payment upon completion of the gathering pipeline in the second half of 2020, will immediately add 15 cents to the company's operating earnings per share in 2020.
Reuters reported on Thursday, citing sources, that DTE was nearing a deal to buy a gas pipeline system.
(Reporting by Arundhati Sarkar in Bengaluru; Editing by Shailesh Kuber)
((Arundhati.Sarkar@thomsonreuters.com; +1 646 223 8780 Ext: 1524; Reuters Messaging: arundhati.sarkar.thomsonreuters.com@reuters.net))
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