ONEOK Closes Sale Of Locally Owned Pipelines

12/31/2024 10:10:49 AM

(MENAFN- Baystreet) ONEOK, Inc. (NYSE: OKE) today announced that it has closed the sale of its three wholly owned interstate natural gas pipeline systems to DT Midstream, Inc. (NYSE: DTM), effective as of 11:59 p.m. Central on Dec. 31, 2024, for a total cash consideration of $1.2 billion, subject to customary adjustments.

"The closing of this transaction represents another milestone in the strategic optimization of our integrated asset portfolio and advances our capital allocation priorities," said CEO Pierce H. Norton. "As the new owner of these pipelines, DT Midstream brings a shared commitment to safety, reliability and excellence that will serve all stakeholders well.

"We appreciate the dedication of our employees transitioning to DT Midstream, where they will play a vital role in establishing the company's new Tulsa office and continue to be instrumental in the success of these essential natural gas systems moving forward," added Norton.

The three interstate natural gas pipeline systems included in the sale are Guardian Pipeline, Midwestern Gas Transmission and Viking Gas Transmission.

The net proceeds from the sale are expected to enhance ONEOK's financial flexibility as it progresses toward its previously announced leverage target of 3.5 times during 2026.

OKE shares gained 14 cents Tuesday to $100.91.

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