RICHMOND, Va., Dec. 16, 2014 /PRNewswire/ -- Dominion Resources,
Inc. (NYSE: D), today announced that it has agreed to purchase
Carolina Gas Transmission (CGT) from SCANA Corporation (NYSE: SCG)
for approximately $492.9 million. CGT
owns and operates nearly 1,500 miles of FERC-regulated interstate
natural gas pipeline in South
Carolina and southeastern Georgia. The company plans to close on the
acquisition in January 2015.
The transaction would include no assumption of debt and, upon
closing, would be immediately accretive to Dominion's operating
earnings per share.
Subject to board approvals by Dominion and Dominion Midstream
Partners, LP (NYSE: DM), Dominion expects to contribute CGT into
Dominion Midstream for a combination of debt and units by mid-year
2015. Dominion, through certain of its subsidiaries, currently owns
an approximate 68.5 percent limited partner interest in Dominion
Midstream, in addition to its general partner, and all associated
incentive distribution rights. Dominion will update its strategic
plan at its Feb. 9, 2015, Analyst
Meeting.
Dominion expects that the contribution of CGT would be
immediately accretive to Dominion Midstream's distributed cash flow
per unit and supportive of Dominion Midstream's intention to grow
distributions to unit-holders at a best-in-class rate.
Thomas F. Farrell II, chairman,
president and chief executive officer of Dominion and chairman and
CEO of Dominion Midstream, said:
"This is a compelling strategic opportunity for Dominion and
Dominion Midstream that both supports our targeted growth rates and
demonstrates our ability to deliver value-accretive M&A for our
share- and unit-holders.
"Carolina Gas Transmission is a great fit for our well-run,
regulated natural gas businesses as we expand our operations into
the Southeast. It also boasts an outstanding safety record, a
tremendous reputation for reliable service and a robust pipeline of
committed expansion projects that we expect to create significant
EBITDA growth over the next several years."
As part of the acquisition agreement, Dominion is offering
continued employment for CGT's approximately 120-person workforce.
In addition, the company has committed to an extended period of
rate stability for current CGT customers. As an engaged corporate
citizen, Dominion will honor CGT's commitment to economic
development and community vitality in its service area.
The acquisition will require Hart-Scott-Rodino antitrust
clearance.
More information about the planned transaction is available on
the web at
https://www.dom.com/library/domcom/pdfs/investors/Midstream/fact-sheet.pdf.
About Dominion
Dominion is one of the nation's largest producers and
transporters of energy, with a portfolio of approximately 24,900
megawatts of generation, 10,900 miles of natural gas transmission,
gathering and storage pipeline, and 6,400 miles of electric
transmission lines. Dominion operates one of the nation's largest
natural gas storage systems with 947 billion cubic feet of storage
capacity and serves utility and retail energy customers in 10
states. For more information about Dominion, visit the company's
website at www.dom.com.
About Dominion Midstream
Dominion Midstream is a growth-oriented Delaware limited partnership formed on
March 11, 2014, by Dominion to
initially own all of the outstanding preferred equity interests in
Dominion Cove Point LNG, LP, a Delaware limited partnership, which owns
liquefied natural gas import, storage, regasification and
transportation assets. It is headquartered in Richmond, Va. For more information about
Dominion Midstream, visit its website at www.dommidstream.com.
This news release includes certain "forward-looking
information." Examples include information as to expectations,
beliefs, plans, goals, objectives and future financial or other
performance or assumptions concerning matters discussed in this
release. These businesses are influenced by many factors that
are difficult to predict, involve uncertainties that may materially
affect actual results and are often beyond our ability to control
or estimate precisely. A number of factors that could cause
actual results to differ from those in the forward-looking
statements have been and will be identified in the SEC Reports on
Forms 10-K and 10-Q, as applicable to Dominion and Dominion
Midstream. We refer you to those discussions for further
information. Any forward-looking statement speaks only as of
the date on which it is made, and we undertake no obligation to
update any forward-looking statement to reflect events or
circumstances after the date on which it is made.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/dominion-agrees-to-acquire-carolina-gas-transmission-300010346.html
SOURCE Dominion Resources, Inc.; Dominion Midstream Partners,
LP