RICHMOND, Va., Dec. 1, 2016 /PRNewswire/ -- Dominion
Midstream Partners, LP (NYSE: DM), today closed on the transaction
to acquire Questar Pipeline, LLC, from Dominion Resources, Inc.
(NYSE: D), for $1.725 billion. As
part of the transaction, Dominion Midstream paid $823 million in cash to Dominion, issued
$167 million of common units and
$300 million of convertible preferred
units to Dominion, and has assumed Questar Pipeline's $435 million of outstanding
indebtedness.
Cash sources included a previously announced $360 million underwritten public common unit
offering, a $137.5 million private
placement of common units, and $500
million of convertible preferred units placed with a group
of institutional investors led by Stonepeak Infrastructure
Partners.
Thomas F. Farrell II, chairman,
president and chief executive officer of Dominion and Dominion
Midstream GP, LLC, said:
"Today's announcement once again demonstrates Dominion's and
Dominion Midstream's ability to execute complementary acquisitions
to achieve best-in-class distribution growth at Dominion Midstream
while providing cash to Dominion to pay down debt."
The addition of Questar Pipeline – which owns and operates
Federal Energy Regulatory Commission-regulated natural gas
transmission and storage assets in Colorado, Utah and Wyoming – is expected to be immediately
accretive to Dominion Midstream's distributable cash flow per unit.
This transaction supports the partnership's intention to grow
distributions to unitholders at a compounded annual growth rate of
22 percent per year through the end of the decade.
Dominion plans to use the cash generated by the dropdown
transaction and other related financing activities to reduce debt
at the parent level by $1.2
billion.
Joint bookrunning managers and placement agents on the
above-referenced public and private capital markets activities
included RBC Capital Markets, Barclays, JP Morgan, Mizuho
Securities, BofA Merrill Lynch, Citigroup and UBS Investment
Bank.
About Dominion Midstream
Dominion Midstream is a
Delaware limited partnership
formed by Dominion Resources, Inc., to grow a portfolio of natural
gas terminaling, processing, storage, transportation and related
assets. It is headquartered in Richmond, Va. For more information about
Dominion Midstream, visit its website at www.dommidstream.com.
About Dominion
Dominion is one of the nation's largest
producers and transporters of energy, with a portfolio of
approximately 26,000 megawatts of generation, 14,400 miles of
natural gas transmission, gathering and storage pipeline, and 6,500
miles of electric transmission lines. Dominion operates one of the
nation's largest natural gas storage systems with 1 trillion cubic
feet of storage capacity and serves more than 6 million utility and
retail energy customers. For more information about Dominion, visit
the company's website at www.dom.com.
This news release includes certain forward-looking
information that is subject to various risks and uncertainties.
Words such as "expect," "target," "would," "will," "anticipate,"
"believe," "estimate," "intend," "may," "plan," "predict,"
"project," "should" and similar terms and phrases are used to
identify forward-looking statements. A number of factors that could
cause actual results to differ from those in the forward-looking
statements are identified in Dominion's and Dominion Midstream's
filings with the U.S. Securities and Exchange Commission. You are
referred to those discussions for further information. These
statements are not guarantees of future performance and involve
certain risks, uncertainties and assumptions that are difficult to
predict. Any forward-looking statement speaks only as of the
date on which it is made, and the companies undertake no obligation
to update any forward-looking statement to reflect events or
circumstances after the date on which it is made.
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visit:http://www.prnewswire.com/news-releases/dominion-midstream-partners-completes-acquisition-of-questar-pipeline-300371733.html
SOURCE Dominion Midstream Partners, LP; Dominion Resources,
Inc.