DT Midstream boosts ownership of Millenium

(Map: Millenium Pipeline.)

DT Midstream, Inc. (NYSE: DTM) has boosted its ownership of Millenium Pipeline from 26.25% to 52.5% for $552 million in cash.

The purchase from National Grid was financed with cash on hand and available capacity under the company’s revolving credit facility. Under the terms of the agreement, DTM acquired National Grid’s full ownership interests in Millennium Pipeline.

Millennium Pipeline is a 263-mile interstate pipeline that delivers gas from the Northeast Marcellus and Utica to utility and power plant markets across New York State and New England. DT Midstream is a founding developer and existing owner in Millennium Pipeline, which has been in service since 2008. The pipeline is also interconnected with the company’s wholly-owned Bluestone Gathering Lateral Pipeline which has upstream connections to its Susquehanna Gathering System.

“The completed acquisition of an additional stake in Millennium Pipeline directly aligns with our strategic investment thesis and accelerates our growth plan,” said David Slater, President and CEO. “This transaction also increases the revenue contribution from our pipeline segment, underpinned by take-or-pay contracts with high credit quality customers,” added Slater.

Increased ownership in Millennium Pipeline directly aligns with DT Midstream’s investment thesis of owning pure play natural gas assets connecting premier supply basins with key demand centers and market regions, and with revenues supported by long-term take-or-pay contracts with creditworthy and diverse customers, the company said.

Detroit, USA-based DT Midstream (NYSE: DTM) is an owner, operator and developer of natural gas interstate and intrastate pipelines, storage and gathering systems, compression, treatment and surface facilities.