ONEOK Closes Sale of Three Natural Gas Pipelines to DT Midstream

Researched by Industrial Info Resources (Sugar Land, Texas)--Pipeline operator ONEOK Incorporated (NYSE:OKE) (Tulsa, Oklahoma) said Tuesday it had closed the sale of three interstate natural gas pipelines to natural gas pipeline company DT Midstream Incorporated (NYSE:DTM) (Detroit, Michigan) for $1.2 billion.

"The closing of this transaction represents another milestone in the strategic optimization of our integrated asset portfolio and advances our capital allocation priorities," said ONEOK President and Chief Executive Officer Pierce Norton II in a press release.

The three interstate pipelines that are part of the sale include:

• Guardian Pipeline - This natural gas pipeline interconnects with several pipelines at a hub in Joliet, Illinois, and also includes distribution and electric generation companies in Wisconsin.
• Midwestern Gas Transmission - This bidirectional pipeline system has a major interconnect near Portland, Tennessee, multiple interstate pipelines to the Marcellus and Utica shales, and multiple connections at the Joliet hub.
• Viking Gas Transmission - This bidirectional system interconnects with a major pipeline at the U.S. border near Emerson, Manitoba, near the convergence of North Dakota, Minnesota and Canada.

DT Midstream will establish a new office in Tulsa, where ONEOK is headquartered, and will absorb some of the ONEOK employees responsible for operating the systems.

ONEOK said the net proceeds from the sale are expected to enhance the company's financial flexibility as it progresses toward a leverage target of 3.5 times during 2026.

For more information, see November 21, 2024, article - ONEOK to Sell Pipeline Systems to DT Midstream.

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