ONEOK to sell three wholly-owned interstate gas pipelines to DT Midstream for $1.2 billion

WASHINGTON (dpa-AFX) – ONEOK Inc. (OKE) is saddened to have 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 dollars, subject to customary adjustments.

The transaction is expected to be completed in the fourth quarter of 2024.

The three interstate pipeline systems include Guardian Pipeline, LLC, which is interconnected with several pipelines in downtown Chicago near Joliet, Illinois, and with local natural gas distribution and power generation companies in the Wisconsin; Midwestern Gas Transmission, which is a two-way system with a major pipeline interconnection near Portland, Tennessee, and with several interstate pipelines that have access to both the Utica Shale and the Marcellus Shale, and several interstate pipelines. States at the Chicago hub near Joliet, Illinois; and Viking Gas Transmission, which is a two-way system interconnected to a major pipeline network on the U.S. border near Emerson, Canada, and Marshfield, Wisconsin.

ONEOK expects the net proceeds from the sale to improve its financial flexibility and deleveraging trend towards its 3.5x target in 2026.