Kirkland & Ellis counseled Indigo Natural Resources on the sale of its interest in a gathering system and gathering pipeline in the Haynesville shale formation of Louisiana to DTE Midstream, a non-utility business of DTE Energy (NYSE: DTE), for a total purchase price of $2.25 billion in cash, plus a $400 million milestone payment upon completion of the gathering pipeline in the second half of 2020. Under the terms of the agreement, DTE will acquire 100 percent of the assets from Momentum Midstream and Indigo Natural Resources, as the primary gas producer supplying the system. Assets that are part of the acquisition include an existing gathering system and a 150-mile gathering pipeline under construction, which will be in service in the second half of 2020. The primary assets gather natural gas produced in the Haynesville shale basin and access multiple major downstream pipelines, including those serving the Gulf Coast.
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The Kirkland team was led by transactional partners John Pitts and Cyril Jones and associates Josh Abbotoy and Daniel Cadis; and capital markets partners Matt Pacey, Brooks Antweil and Sara-Ashley Moreno.