Elliott Management Supportive of DTE Energy's Intent to Spin-Off Midstream Business
Elliott Management Corporation expressed strong support for DTE Energy's plan to spin off its DTE Midstream business.
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Rhea-AI Summary
Elliott Management Corporation expressed strong support for DTE Energy's plan to spin off its DTE Midstream business. Senior Portfolio Manager Jeff Rosenbaum praised CEO Gerardo Norcia for the decision, emphasizing that it aims to unlock significant shareholder value. The spin-off is expected to highlight DTE Electric and DTE Gas as leading U.S. regulated utilities, while DTE Midstream will focus on attractive natural gas basins, promising best-in-class earnings growth. Elliott believes both entities will achieve superior results as independent companies.
Positive
- Elliott Management supports DTE's spin-off, seeing it as a value-unlocking strategy.
- The spin-off could enhance the focus on DTE Electric and DTE Gas as leading regulated utilities.
- DTE Midstream is expected to provide best-in-class earnings growth in attractive natural gas basins.
Negative
- None.
Details
News Market Reaction – DTE
The recorded move for DTE in the trading session of this news was +2.36%.
Data tracked by StockTitan Argus. Session date unavailable.
AI-generated analysis. How Rhea-AI works. Not financial advice.
NEW YORK, Oct. 27, 2020 /PRNewswire/ -- Elliott Management Corporation ("Elliott"), which manages funds that collectively own a significant interest in DTE Energy Co. ("DTE" or the "Company"), today released a statement supporting DTE's decision to pursue a spin-off of the DTE Midstream business from DTE Energy. Elliott Senior Portfolio Manager Jeff Rosenbaum also commended CEO Gerardo "Jerry" Norcia on the Company's commitment to unlocking value:
"Elliott is supportive of DTE's plan to spin-off the DTE Midstream business, and we applaud CEO Jerry Norcia and the entire DTE team for taking these steps to unlock significant value. We appreciate the engagement and dialogue we have had with DTE's senior management team over the past several months. We believe the new DTE Energy and DTE Midstream will stand as leading companies in their respective sectors. In particular, the transaction will highlight the value of DTE Electric and DTE Gas as two of the best regulated utilities in the U.S. with industry-leading system capital investment and growth, a strong management execution track record and a top-tier regulatory jurisdiction. Additionally, we believe DTE Midstream will be differentiated as one of the only publicly traded midstream businesses operating in the two most attractive U.S. natural gas basins and providing both best-in-class earnings growth and contract coverage. We believe this transaction should unlock significant shareholder value. Both companies are now poised to deliver results and value that exceed what they could otherwise achieve on a combined basis."
About Elliott
Elliott Management Corporation manages approximately
Media Contact:
Stephen Spruiell
Elliott Management Corporation
(212) 478-2017
sspruiell@elliottmgmt.com
View original content:http://www.prnewswire.com/news-releases/elliott-management-supportive-of-dte-energys-intent-to-spin-off-midstream-business-301160697.html
SOURCE Elliott Management Corporation
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