M&As this week: DTE Energy, Rice Energy, Shell Midstream

DTE Energy Company has agreed to spend $1.3 billion for the acquisition of 100% interest in M3 Appalachia Gathering (AGS) and a 55% stake in Stonewall Gas Gathering (SGG).

Under the agreement, DTE Energy will acquire 100% interest in AGS and a 40% stake in SGG from M3 Midstream, as well as a 15% interest in SGG from Vega Energy Partners.

Upon completion of the transaction, the assets will form part of the DTE's non-utility gas storage and pipeline operations.

DTE Energy has retained Wells Fargo Securities as financial advisor for the transaction, which is scheduled for completion by the end of this year's fourth quarter.

The acquisition will allow DTE Energy to expand its midstream operations in the Appalachian Basin, US.

Through its wholly owned subsidiary Rice Energy Appalachia (REA), Rice Energy has agreed to acquire Vantage Energy, from Vantage Energy Investment and Vantage Energy Investment II (collectively, Vantage Sellers).

The deal implies a purchase consideration of $2.7 billion, which will be funded through a combination of cash and issuance of membership interests in REA.

Vantage Energy holds stakes in upstream and midstream assets in the US.

Evercore Partners and Latham & Watkins are the financial and legal advisors to Rice Energy respectively.

The acquisition is scheduled for completion in the fourth quarter of 2016.

Shell Midstream Partners has agreed to spend $350 million for the acquisition of an additional 20% interest in Mars Oil Pipeline Company and a 49% stake in Odyssey Pipeline, from Royal Dutch Shell.

The purchase consideration will be funded by Shell Midstream through a combination of cash in hand and borrowings under its credit facilities.

Mars Oil and Odyssey pipelines have installed capacities of 600,000 barrels of oil per day (bopd) and 220,000bopd respectively.

Shell Midstream has appointed Evercore Group as financial advisor and Akin Gump Strauss Hauer & Feld as legal advisor for the transaction, which is scheduled for completion by 3 October.