DTE Energy announces Board of Directors for DT Midstream
DTE Energy (NYSE: DTE) has announced the formation of the Board of Directors for DT Midstream, a new independent company to be established from its non-utility natural gas pipeline, storage, and gathering business. This spin-off is projected to be completed in July 2021. The board will consist of seven members, including five independent directors, with Robert Skaggs, Jr. as executive chair and David Slater as president and CEO. A Form 10 registration statement has been filed with the SEC, and the separation is expected to be tax-free for shareholders. Shareholders will receive a pro-rata dividend of DT Midstream shares.
- Formation of a diverse board with experienced directors to lead DT Midstream.
- Anticipated tax-free spin-off benefits for shareholders.
- Expected growth and value creation driven by seasoned executives in the energy sector.
- Completion of the spin-off is subject to various approvals and conditions, introducing uncertainty.
Board comprised of highly qualified, diverse directors with experience and expertise to oversee the new independent midstream company
Director appointments will be effective upon completion of DT Midstream spin-off, which is expected in July 2021
DT Midstream files Form 10 registration statement with Securities and Exchange Commission
DETROIT, May 07, 2021 (GLOBE NEWSWIRE) -- DTE Energy (NYSE: DTE) today announced the composition of the Board of Directors for DT Midstream, the new independent, publicly traded company that is expected to be formed through the planned spin-off of DTE Energy’s non-utility natural gas pipeline, storage and gathering business. DTE Energy expects that the spin-off will be completed in July 2021.
The DT Midstream Board will consist of seven directors, including five independent directors:
- Robert Skaggs, Jr., executive chair of the DT Midstream Board, former chairman and CEO of Columbia Pipeline Group, Inc. and former president and CEO of NiSource, Inc.
- David Slater, president and CEO of DT Midstream, currently president and COO of DTE Midstream
- Stephen Baker, owner, president and CEO, Rondeau Energy Consulting Inc.
- Wright Lassiter III, lead independent director of the DT Midstream Board and president and CEO of Henry Ford Health System Inc.
- Elaine Pickle, senior audit partner, Ernst & Young LLP, retiring June 30, 2021
- Peter Tumminello, former group president of commercial businesses, Southern Company Gas
- Dwayne Wilson, former senior vice president, Fluor Corporation
An infographic with more information about the DT Midstream Board’s composition and these directors can be found at DTE Energy Newsroom and dtemidstream.com.
“DT Midstream will be a premier independent, natural gas midstream company, and we are pleased to assemble an outstanding group of directors to help guide it forward,” said Skaggs. “Our diverse Board will include seasoned executives with significant energy, midstream, natural gas and local market experience, as well as financial and regulatory expertise. I am confident that we will have the right skill sets to drive growth and value creation at the new DT Midstream."
In addition, DT Midstream has filed the Form 10 registration statement with the Securities and Exchange Commission in connection with the planned spin-off. Completion of the spin-off is subject to final approval by DTE Energy’s Board of Directors, the Form 10 registration statement being declared effective by the Securities and Exchange Commission, regulatory approvals and satisfaction of other conditions. Under the separation plan, DTE Energy shareholders will retain their shares of DTE Energy stock and receive a pro-rata dividend of shares of DT Midstream stock.
The separation transaction is expected to be tax-free to DTE Energy and its shareholders for U.S. federal income tax purposes. A copy of the Form 10 registration statement, including subsequent amendments, is available on the Investor Relations page of DTE Energy’s website: dteenergy.com.
About Stephen Baker
Baker has more than 30 years of senior executive experience in the energy industry, including in the natural gas storage distribution and transmission field.
Baker is owner, president and CEO of Rondeau Energy Consulting Inc., a company established in 2019 focused on energy related and merger and acquisition engagements. Baker served as president of Union Gas, Limited from 2017 to 2019 as part of Enbridge Inc. Baker also served as president and chairman of Union Gas as part of Spectra Energy Corp. from 2012 to 2017. Over the course of his three-decade career with Union Gas, Baker held senior executive roles in finance, business development and marketing. Baker also held the role of vice president and treasurer of Spectra Energy Corp. from 2010 to 2012, where he led all treasury, capital markets and financing strategies.
Baker has served on the board of Ontario’s Independent Electricity System Operator (IESO) since 2019 and is currently chair of the markets committee and a member of the human resources and governance committee. Baker is also on the Advisory Board of the MaRS Discovery District Energy Board and MyHEAT. He previously chaired or served as a board member of a number of professional and community organizations, including the Canadian Gas Association, Ontario Energy Association and Union Gas, as well as the Children’s Treatment Centre of Chatham-Kent and the Chatham-Kent Community Leaders’ Cabinet.
Baker earned a Bachelor of Arts degree in honours chartered accountancy studies and a Master of Accounting degree from the University of Waterloo. Baker is a Certified Professional Accountant (Ontario/Canada) and holds an ICD.D directors certification from the Institute of Corporate Directors.
About Wright Lassiter III
Lassiter, who will serve as lead independent director for DT Midstream, has more than 30 years of experience leading large, complex healthcare systems.
Currently, Lassiter is president and CEO of Henry Ford Health System Inc., overseeing a
Lassiter serves on the board of Quest Diagnostics, Inc. He also serves as the board vice chair for the Federal Reserve Bank of Chicago and chairs its governance and nominating committee and serves on the audit committee. He also serves on the boards of Le Moyne College, the Detroit Regional Chamber of Commerce, the Detroit Children’s Fund and the Detroit Regional Partnership.
Lassiter earned a Bachelor of Science degree in chemistry from Le Moyne College and a Master’s degree in healthcare administration from Indiana University.
About Elaine Pickle
Pickle has extensive knowledge of the energy industry having served upstream, midstream and energy services companies in the U.S. and internationally.
Pickle is currently a senior audit partner at Ernst & Young LLP, having served as an audit partner since 2002, and will be retiring after a 35 year career with Ernst & Young, effective June 30, 2021. She will be appointed to the DT Midstream Board no earlier than July 1, 2021. Pickle served as a National Professional Practice partner from 2014 to 2018, during which time she evaluated and oversaw technical accounting, auditing and SEC reporting matters as well as quality initiatives in the Southwest region.
Pickle has served on the board and development committee of Theatre Under the Stars (TUTS) since 2018.
Pickle earned her Bachelor of Business Administration in accounting, summa cum laude, from Texas Tech University in 1986. Pickle is a certified public accountant and member of the American Institute of Certified Public Accountants.
About Robert Skaggs, Jr.
Skaggs, who will serve as executive chair of DT Midstream, has over 35 years of experience in the energy industry, including leading companies in the midstream, pipeline and regulated utility sectors.
Skaggs also currently serves as an independent director on the board of DTE Energy, where he has been a director since 2017, and is a member of its nuclear oversight, organization and compensation and finance committees. In addition, Skaggs currently serves on the board of Team, Inc., a global provider of specialized industrial services, where he has served as a director since 2019. He previously served as a director for Cloud Peak Energy, Inc., a coal mining company, from 2015 to 2019. He also is past chairman of the American Gas Association’s board of directors and has served in leadership roles for a variety of charitable, community and civic efforts.
Prior to joining DTE Energy’s Board, Skaggs served as president and CEO of NiSource, Inc., a Fortune 500 energy holding company engaged in natural gas and electric utilities and the gas storage and pipeline business, from 2005 to 2015 and executed its successful separation of Columbia Pipeline Group, Inc., a natural gas pipeline and underground storage system company , in mid-2015. Earlier in 2015, Skaggs executed the successful IPO of Columbia Pipeline Partners. Skaggs served as chairman and CEO of Columbia Pipeline Group, Inc. and Columbia Pipeline Partners from 2015 to 2016.
Skaggs joined the law department of Columbia Gas Transmission in 1981 and served in various management roles until 1996, when he became president of Columbia Gas of Ohio and Columbia Gas of Kentucky. Effective with the 2000 merger of NiSource, Inc. and Columbia Energy Group, Skaggs became the president of Bay State Gas and Northern Utilities. In December 2001, his role was expanded to include the duties of president and CEO of the Columbia companies in Pennsylvania, Virginia and Maryland. Skaggs was promoted to executive vice president, regulated revenue of NiSource, Inc. in
2003.
Skaggs earned a Bachelor of Arts degree in economics from Davidson College, a Juris Doctorate from West Virginia University and a Master’s degree in Business Administration from Tulane University.
About David Slater
Slater, who will serve as the president and CEO of DT Midstream, has over 30 years of experience in the energy industry, and has worked in both commercial business development and operational roles.
Currently, Slater is president and COO of DTE Midstream and has been a member of DTE Energy’s executive leadership team since 2015. Slater joined DTE Energy in 2011 as senior vice president of DTE Gas Storage & Pipelines Company and DTE Pipeline Company and was promoted to executive vice president of DTE Midstream / GS&P in 2014.
Prior to joining DTE Energy, Slater held various senior management positions at Goldman Sachs, Nexen Marketing USA Inc., a top 10 North American energy merchant, Engage Energy US, L.P., an energy merchant, and Union Gas Ltd., a gas utility in Ontario.
Slater is a member of the boards of directors for the Millennium Pipeline, the Vector Pipeline and the NEXUS Gas Transmission Pipeline and is the elected chair of the Interstate Natural Gas Association of America.
Slater earned a Master’s degree in Business Administration and an honors degree in business commerce from the University of Windsor.
About Peter Tumminello
Tumminello has more than 30 years of experience in the energy industry, including overseeing wholesale services, retail energy and midstream businesses, including pipeline investments and gas storage, as well as finance, planning and project evaluation.
Tumminello was most recently group president of commercial businesses for Southern Company Gas, a natural gas utility and energy services company and a subsidiary of Southern Company, a gas and electric utility company headquartered in Atlanta, Georgia. He served in this most recent role since 2016 prior to retiring on April 30, 2021. In this role, he was responsible for all operations outside of the regulated entities, including wholesale services, retail energy and all midstream businesses, including pipeline investments and gas storage. In addition, he served on the Board of the Southern Company Gas Foundation and was a member of the Southern Company Gas management council.
Prior to joining Southern Company Gas in 2003, Tumminello was vice president of energy supply for Green Mountain Energy Company, a renewable energy company. Earlier in his career, he worked for TPC Corporation, a midstream energy company, and ARCO Oil and Gas Company, a provider of oil and natural gas, in various capacities in energy marketing, storage and transportation asset management, petroleum engineering, finance and planning, mergers and acquisitions and project evaluation.
Tumminello was recently vice chair at the Interstate Natural Gas Association of America where he served as the board chair of the climate policy committee. He is an advisory board member at Cristo Rey Jesuit College Preparatory School of Houston. He also serves as a director of CareerSpring.
Tumminello earned a Bachelor of Science degree in petroleum engineering from Louisiana Tech University and Master’s degree in Business Administration from the University of Southwestern Louisiana.
About Dwayne Wilson
Wilson has over 36 years of executive experience in the engineering, procurement and construction industry, serving energy, industrial, infrastructure, mining, manufacturing and power generation companies.
Wilson also currently sits on the boards of Crown Holdings, Inc., a leading global supplier of packaging products, Sterling Construction Company, Inc., a publicly traded heavy civil construction company, and Ingredion, Inc., a leading global ingredients solutions company, where he previously chaired the compensation committee. From 2017 to 2020, he served on the board of AK Steel Holding Corporation, a leading producer of flat-rolled carbon, stainless and electrical steel products and carbon and stainless tubular products, where he served on the public and environmental affairs committee, as well as the nominating and corporate governance committee.
Previously, Wilson was senior vice president of Fluor Corporation, a publicly traded multinational engineering and construction firm, serving in the role from 2014 to 2016. From 1980 until 2011, he served in roles of increasing executive responsibility with Fluor Corporation, including as group president of industrial & infrastructure, president of mining and metals, president of commercial & institutional and vice president of manufacturing and life sciences. From 2011 until 2014, he served as president and CEO of Savannah River Nuclear Solutions, a joint venture between Fluor Corporation, Honeywell International Inc. and Newport News Nuclear, Inc.
Wilson earned a Bachelor of Science degree in civil engineering from Loyola Marymount University.
About DTE Energy
DTE Energy (NYSE: DTE) is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. Its operating units include an electric company serving 2.2 million customers in Southeast Michigan and a natural gas company serving 1.3 million customers in Michigan. The DTE portfolio includes energy businesses focused on power and industrial projects; renewable natural gas; natural gas pipelines, gathering and storage; and energy marketing and trading. As an environmental leader, DTE utility operations will reduce carbon dioxide and methane emissions by more than 80 percent by 2040 to produce cleaner energy while keeping it safe, reliable and affordable. DTE Electric and Gas aspires to achieve net zero carbon and greenhouse gas emissions by 2050. DTE is committed to serving with its energy through volunteerism, education and employment initiatives, philanthropy and economic progress. Information about DTE is available at dteenergy.com, empoweringmichigan.com, twitter.com/dte_energy and facebook.com.
Forward looking statement
The information contained herein is as of the date of this release. DTE Energy expressly disclaims any current intention to update any forward-looking statements contained in this release as a result of new information or future events or developments. Words such as “anticipate,” “believe,” “expect,” “may,” “could,” “projected,” “aspiration,” “plans” and “goals” signify forward-looking statements.
Forward-looking statements are not guarantees of future results and conditions but rather are subject to various assumptions, risks and uncertainties. This release contains forward-looking statements about DTE Energy’s and DT Midstream’s financial results and estimates of future prospects, and actual results may differ materially. This release contains forward-looking statements about DTE Energy’s intent to spin-off DT Midstream and DTE Energy’s preliminary strategic, operational and financial considerations related thereto. The statements with respect to the separation transaction are preliminary in nature and subject to change as additional information becomes available. The separation transaction will be subject to the satisfaction of a number of conditions, including the final approval of DTE Energy’s Board of Directors, and there is no assurance that such separation transaction will in fact occur. Many factors
impact forward-looking statements including, but not limited to, the following: risks related to the spinoff of DT Midstream, including that the process of exploring the transaction and potentially completing the transaction could disrupt or adversely affect the consolidated or separate businesses, results of operations and financial condition, that the transaction may not achieve some or all of any anticipated benefits with respect to either business, and that the transaction may not be completed in accordance with DTE Energy’s expected plans or anticipated timelines, or at all; the duration and impact of the COVID-19 pandemic on DTE Energy and customers, impact of regulation by the EPA, the EGLE, the FERC, the MPSC, the NRC, and for DTE Energy, the CFTC and CARB, as well as other applicable governmental proceedings and regulations, including any associated impact on rate structures; the amount and timing of cost recovery allowed as a result of regulatory proceedings, related appeals, or new legislation, including legislative amendments and retail access programs; economic conditions and population changes in our geographic area resulting in changes in demand, customer conservation, and thefts of electricity and, for DTE Energy, natural gas; the operational failure of electric or gas distribution systems or infrastructure; impact of volatility of prices in the oil and gas markets on DTE Energy’s gas storage and pipelines operations and the volatility in the short-term natural gas storage markets impacting third-party storage revenues related to DTE Energy; impact of volatility in prices in the international steel markets on DTE Energy’s power and industrial projects operations; the risk of a major safety incident; environmental issues, laws, regulations, and the increasing costs of remediation and compliance, including actual and potential new federal and state requirements; the cost of protecting assets against, or damage due to, cyber incidents and terrorism; health, safety, financial, environmental, and regulatory risks associated with ownership and operation of nuclear facilities; volatility in commodity markets, deviations in weather, and related risks impacting the results of DTE Energy’s energy trading operations; changes in the cost and availability of coal and other raw materials, purchased power, and natural gas; advances in technology that produce power, store power or reduce power consumption; changes in the financial condition of significant customers and strategic partners; the potential for losses on investments, including nuclear decommissioning and benefit plan assets and the related increases in future expense and contributions; access to capital markets and the results of other financing efforts which can be affected by credit agency ratings; instability in capital markets which could impact availability of short and long-term financing; the timing and extent of changes in interest rates; the level of borrowings; the potential for increased costs or delays in completion of significant capital projects; changes in, and application of, federal, state, and local tax laws and their interpretations, including the Internal Revenue Code, regulations, rulings, court proceedings, and audits; the effects of weather and other natural phenomena on operations and sales to customers, and purchases from suppliers; unplanned outages; employee relations and the impact of collective bargaining agreements; the availability, cost, coverage, and terms of insurance and stability of insurance providers; cost reduction efforts and the maximization of plant and distribution system performance; the effects of competition; changes in and application of accounting standards and financial reporting regulations; changes in federal or state laws and their interpretation with respect to regulation, energy policy, and other business issues; contract disputes, binding arbitration, litigation, and related appeals; and the risks discussed in DTE Energy’s public filings with the Securities and Exchange Commission. New factors emerge from time to time. We cannot predict what factors may arise or how such factors may cause results to differ materially from those contained in any forward-looking statement. Any
forward-looking statements speak only as of the date on which such statements are made. We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. This document should also be read in conjunction with the Forward-Looking Statements section of the joint DTE Energy and DTE Electric 2020 Form 10-K and 2021 Form 10-Q (which sections are incorporated by reference herein), and in conjunction with other SEC reports filed by DTE Energy and DTE Electric.
For further information, members of the media may call:
Pete Ternes, DTE Energy, 313.235.5555
FAQ
What is the expected timeline for the DT Midstream spin-off?
Who will lead DT Midstream after the spin-off?
What is the composition of the DT Midstream Board of Directors?
How will DTE Energy shareholders benefit from the spin-off?
What are the risks associated with the spin-off of DT Midstream?
