Dominion Offers to Buy Out Rest of Dominion Energy Midstream -- Update
September 19 2018 - 5:39PM
Dow Jones News
By Bowdeya Tweh
Dominion Energy Inc. (D) has made a nonbinding offer to buy the
rest of Dominion Energy Midstream Partners LP (DM) it doesn't
already own for $17.75 a unit, the utility-holding company said
Wednesday.
Dominion offered to buy the remaining outstanding units of
Dominion Energy Midstream for $17.75 each, which is about 1.7% less
than its Wednesday closing price of $18.05.
"Continued weakness in MLP capital markets combined with the
prolonged disruption in Dominion Energy Midstream's common unit
price since the March 15 Federal Energy Regulatory Commission
policy revision were key factors that led to this decision,"
Dominion Energy Chief Executive Thomas Farrell II said in prepared
remarks.
Richmond, Va.-based Dominion Energy supplies electricity or
natural gas to nearly six million customers in 19 states.
Dominion Energy Midstream has a portfolio of natural-gas
terminaling, processing, storage and transportation assets.
Dominion Energy Midstream didn't immediately respond to a
request for comment about the offer.
Shares of Dominion were little changed in after-hours trading,
while Dominion Energy Midstream units fell 3.3%.
Through Wednesday's close, Dominion Energy Midstream is down
about 41% for the year while Dominion is down about 13%.
The move by Dominion follows several similar proposals in the
sector, where energy companies are completing buyouts of master
limited partnerships. Enbridge Inc. (ENB) reached a deal to buy out
Spectra Energy Partners LP (SEP) in August, and Williams Cos. (WMB)
announced a deal in May to buy out Williams Partners.
Write to Bowdeya Tweh at bowdeya.tweh@wsj.com
(END) Dow Jones Newswires
September 19, 2018 17:24 ET (21:24 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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