ONEOK, Inc. has entered into a definitive agreement to sell its three wholly owned interstate natural gas pipeline systems to DT Midstream, Inc. for a cash consideration of $1.2 billion, subject to customary adjustments. The transaction, which has been unanimously approved by the boards of directors of both companies, is expected to close in the fourth quarter of 2024, pending customary closing conditions, including Hart-Scott-Rodino Act clearance.

The purchase price, representing 10.8 times the past 12 months’ EBITDA as of June 30, 2024, underscores the strategic value of these assets. According to Pierce H. Norton II, president and CEO of ONEOK, the transaction aligns with the company’s capital allocation priorities and optimises its asset portfolio. Norton praised DT Midstream as the ideal owner, noting a shared culture of safety and reliability and expressing confidence in the transition for employees who will form the foundation of DT Midstream’s new Tulsa office.

The three pipeline systems included in the sale are:

1. Guardian Pipeline, L.L.C.: Connecting with multiple pipelines at the Chicago Hub near Joliet, Illinois, and serving natural gas distribution and electric generation companies in Wisconsin.
2. Midwestern Gas Transmission: A bidirectional system interconnecting with pipelines near Portland, Tennessee, with access to the Utica and Marcellus Shales.
3. Viking Gas Transmission: A bidirectional pipeline connecting at the US-Canada border near Emerson, Manitoba, and Marshfield, Wisconsin.

Net proceeds from the sale are expected to enhance ONEOK’s financial flexibility and support its deleveraging target of 3.5 times by 2026.

ONEOK is one of North America’s largest diversified energy infrastructure companies, managing over 50,000 miles of pipelines and providing critical midstream services. The company also owns a 43 percent stake in EnLink Midstream, LLC, which offers integrated midstream infrastructure services for natural gas, crude oil, and natural gas liquids. Through these operations, ONEOK contributes to domestic and international energy demand while prioritising safety, reliability, and sustainability.

For more information visit www.oneok.com