DTE Energy announced that the board of directors have unanimously authorized management to pursue a spin off of DTE Midstream. DTE Midstream includes non-utility natural gas pipelines, storage, and gathering assets. Under the separation plan, DTE Energy shareholders will receive a pro-rata divided of shares of DTE Midstream stock with the number of shares to be determined prior to closing. The company plans to complete the spin off by mid-year 2021.
DTE Midstream's adjusted EBITDA is estimated to be $700 million in 2020 and has generated over $3 billion of cash since 2008. DTE Midstream president and COO David Slater will become president and CEO of the independent company, and Robert Skaggs will serve as executive chairman. Barclays and Lazard are serving as financial advisors to the DTE Energy.