DT Midstream (DTM) has agreed to acquire around 1,300 miles of natural gas transmission pipelines connecting seven US states from Oklahoma-based midstream operator ONEOK (OKE) for $1.2 billion in cash, the companies said in separate statements late Tuesday.

The deal includes three pipelines -- Midwestern Gas Transmission, Guardian Pipeline and Viking Gas Transmission -- with a combined capacity of more than 3.7 billion cubic feet per day, DT Midstream said.

DT Midstream said it expects the transaction to be immediately accretive to distributable cash flow, increase its pipeline segment to about 70% of adjusted earnings before interest, taxes, depreciation, and amortization in 2025 and raise the backlog of organic growth projects.

The company said it will fund the transaction using about $900 million in debt and $300 million in common equity. The deal is expected to close later this year or in early 2025, subject to regulatory approvals.

Separately, ONEOK said it expects net proceeds from the deal to improve its financial flexibility.