November 20, 2024 [ONEOK]- ONEOK, Inc. (NYSE: OKE) (“ONEOK”) today announced that it has executed a definitive agreement with DT Midstream, Inc. (NYSE: DTM) (“DT Midstream”) under which ONEOK will sell its three wholly owned interstate natural gas pipeline systems for a total cash consideration of $1.2 billion subject to customary adjustments. Based on Federal Energy Regulatory Commission (FERC) filings, the purchase price represents 10.8 times previous 12 months EBITDA as of June 30, 2024.

The transaction, unanimously approved by the boards of directors of both ONEOK and DT Midstream, is expected to close in the fourth quarter of 2024, and is subject to customary closing conditions, including Hart-Scott-Rodino Act clearance.

“This transaction will align and enhance our capital allocation priorities within our integrated operating footprint,” said Pierce H. Norton II, ONEOK president and chief executive officer. “DT Midstream is the ideal owner of these FERC regulated interstate pipeline systems, with our employees sharing a similar culture of safety and reliability as they will continue to be excellent stewards of these assets providing essential natural gas transportation services.

“This strategic move to optimize ONEOK’s asset portfolio reinforces our standing as one of the largest diversified energy infrastructure companies delivering essential products and services. We are deeply grateful for the contributions of our employees, both those in the field and those who will become the foundation of DT Midstream’s new Tulsa office, and we are confident that they will thrive under DT Midstream’s strong leadership,” added Norton.

The three interstate pipeline systems include:

• Guardian Pipeline, L.L.C., which interconnects with several pipelines at the Chicago Hub near Joliet, Illinois, and with local natural gas distribution and electric generation companies in Wisconsin;
• Midwestern Gas Transmission, which is a bidirectional system with a major pipeline interconnect near Portland, Tennessee, and with multiple interstate pipelines that have access to both the Utica Shale and the Marcellus Shale, and multiple interstate pipelines at the Chicago Hub near Joliet, Illinois; and
• Viking Gas Transmission, which is a bidirectional system that interconnects with a major pipeline system at the U.S. border near Emerson, Canada, and Marshfield, Wisconsin.

Upon closing of this transaction, the net proceeds from the sale are expected to enhance ONEOK’s financial flexibility and ONEOK’s deleveraging trend toward its previously announced target of 3.5 times during 2026.

At ONEOK (NYSE: OKE), we deliver energy products and services vital to an advancing world. We are a leading midstream operator that provides gathering, processing, fractionation, transportation and storage services. Through our more than 50,000-mile pipeline network, we transport the natural gas, natural gas liquids (NGLs), refined products and crude oil that help meet domestic and international energy demand, contribute to energy security and provide safe, reliable and responsible energy solutions needed today and into the future. As one of the largest diversified energy infrastructure companies in North America, ONEOK is delivering energy that makes a difference in the lives of people in the U.S. and around the world.

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