Page 12 - NorthAmOil Week 27 2021

NorthAmOil NEWS IN BRIEF NorthAmOil

MIDSTREAM advisors with respect to the US federal, state and advisor to ExxonMobil Chemical Co..
local or foreign tax consequences, as applicable, ExxonMobil, June 30 2021
DTE Energy completes of the spin-off.
DTE Energy, July 1 2021
spin-off of DT Midstream SERVICES
DTE Energy announced today that it has com- PETROCHEMICALS TGS and PGS announce Lewis
pleted the previously announced spin-off of its
non-utility natural gas pipeline, storage and ExxonMobil to sell global Hills 3D multi-client phase 2
gathering business, DT Midstream. The trans-
action transforms DTE into a best-in-class, pre- SantopreneTM business offshore East Canada
dominantly pure-play electric and natural gas
utility with superior earnings growth, a strong ExxonMobil Chemical Co. has signed an agree- TGS, a global provider of energy data and intelli-
capital investment plan and a proven record of ment with Celanese for the sale of its global gence, in partnership with PGS, has announced
cost management. SantopreneTM business for $1.15bn, subject to Lewis Hills 3D multi-client phase 2 offshore East
“The separation of DT Midstream builds on working capital and other adjustments. Canada. Phase 2 includes the acquisition of 947
our long track record of delivering value to our The sale includes two world-scale manufac- square km of additional 3D data, tying into the
shareholders,” said Jerry Norcia, DTE Energy turing sites in Pensacola, Florida, and Newport, existing project’s 2,811 square km to create one
president and CEO. “With the completion of this Wales, along with associated product, process contiguous dataset.
transaction, approximately 90% of DTE Energy’s development and laboratory equipment, oper- The Lewis Hill 3D volume is positioned in the
operating earnings and investments will now be ating and administration buildings, control highly prospective Orphan Basin, with recent
focused on our utility operations. I am incredibly systems and documentation, and intellectual discoveries in the Flemish Pass and connecting
proud of the work the DTE and DT Midstream property. further south to the productive Jeanne D’Arc
teams have done over the last few months to “Reaching this agreement with Celanese is basin. An expansive well log library is also availa-
complete the separation and establish two inde- consistent with our strategy and allows us to ble in the region, along with advanced multi-cli-
pendent, Detroit-based companies that are even focus on serving the growing market for pri- ent interpretation products that will improve
better positioned to grow and thrive.” mary olefin derivatives, where we can leverage play, trend and prospect delineation.
With the separation complete, DTE Energy our competitive advantages of industry leading David Hajovsky, EVP of Western Hemisphere
continues to target a long-term operating EPS scale, integration and proprietary technology,” at TGS, commented: “The TGS and PGS joint
growth rate of 5% to 7% off its 2020 original said Jack Williams, senior vice president of venture continues to consistently provide the
guidance. DTE Energy’s growth is supported by Exxon Mobil Corporation. highest quality data ahead of scheduled licens-
$17bn of planned utility capital investments over ExxonMobil’s SantopreneTM brand is a ing rounds, further strengthening our position
the next five years. These investments are aligned global leader in a specialised market. The com- in East Coast Canada. Phase 2 of this project will
with DTE Energy’s aggressive clean energy tar- pany will continue to serve elastomers customers provide additional contiguous 3D data coverage
gets, including net zero greenhouse gas emis- with specialty products, including Butyl rubber and enhance the geological understanding in the
sions by 2050 and its commitment to providing and VistalonTM, which are used in a variety of region, allowing clients to de-risk their explora-
clean, safe, reliable and affordable energy. applications. tion activities and investments.”
As previously announced, in connection The transaction is expected to close in Neil Paddy, VP North America at PGS,
with the spin-off, DTE Energy shareholders the fourth quarter of 2021, subject to regula- commented: “The Lewis Hills Phase 2 survey
retained their current shares of DTE stock. At tory, information and consultation processes, completes coverage between the Flemish Pass
12:01 a.m. ET on July 1, 2021, DTE sharehold- and third-party approvals. The ExxonMobil and Orphan Basin. GeoStreamer imaging tech-
ers also received a distribution of one share of employees impacted by the sale are expected nology supports the ongoing exploration drill-
DT Midstream common stock for every two to transfer to positions at Celanese following ing programmes, and this project will be key
shares of DTE common stock owned as of the change-in-control. in enhancing understanding of the petroleum
close of business on June 18, 2021, the record Morgan Stanley & Co. LLC served as financial systems at play.”
date. Fractional shares of DT Midstream com-
mon stock were not distributed to DTE Energy
shareholders.
Instead, the fractional shares of DT Mid-
stream common stock are being aggregated
and sold in the open market, with the net pro-
ceeds distributed pro rata in cash payments to
DTE Energy shareholders who would otherwise
receive a fractional share of DT Midstream com-
mon stock. DTE Energy did not retain any of the
outstanding common stock of DT Midstream.
For US federal income tax purposes, DTE Ener-
gy’s US shareholders (other than those subject
to special rules) generally should not recognise
gain or loss as a result of the distribution of DT
Midstream shares, except with respect to cash
received in lieu of fractional shares. DTE Energy
shareholders are urged to consult with their tax

P12 www. NEWSBASE .com Week 27 08•July•2021