RICHMOND, Va., Oct. 5, 2021 /PRNewswire/ -- Dominion Energy
(NYSE: D) announced today execution of a definitive agreement to
sell Questar Pipelines to Southwest Gas Holdings Inc. (NYSE: SWX),
in a transaction valued at $1.975
billion, including the assumption of $430 million of existing indebtedness. Questar
Pipelines consists of FERC-regulated, long-term contracted,
transportation and underground storage assets in Utah, Wyoming
and Colorado, together with
related services and processing entities. The transaction is
expected to close in the fourth quarter of 2021, subject to
regulatory approvals.
Robert M. Blue, Dominion Energy
chair, president and chief executive officer, said:
"We are pleased with the result of our sale process for these
high-quality assets. This transaction represents another
significant step in our evolution as a company, allowing us to
focus even more on fulfilling the energy needs of our utility
customers and continuing growth of our clean-energy portfolio,
including development of the largest offshore wind farm in
North America. We appreciate the
focus and professionalism of the Questar Pipelines employees, who
have maintained safe and reliable operations. We look forward to
closure by year's end."
Today's announcement does not change Dominion Energy's existing
financial guidance. Questar Pipelines will continue to be accounted
for as discontinued operations. Proceeds from the sale will be used
by Dominion Energy to reduce parent-level debt, including retiring
the 364-day term loan that was entered into in July, which Dominion
Energy previously used to repay the approximately $1.3 billion transaction deposit made by
Berkshire Hathaway Energy. Proceeds from the sale of Questar
Pipelines will also be used to support Dominion Energy's robust
regulated capital plan, as part of the largest regulated
decarbonization opportunity in the country.
McGuireWoods LLP served as legal counsel to Dominion Energy.
Barclays acted as the company's financial advisor.
About Dominion Energy
More than 7 million customers in 16 states energize their homes
and businesses with electricity or natural gas from Dominion Energy
(NYSE: D), headquartered in Richmond, Va. The company is committed
to sustainable, reliable, affordable and safe energy and to
achieving net zero carbon dioxide and methane emissions from its
power generation and gas infrastructure operations by 2050. Please
visit DominionEnergy.com to learn more.
This release contains certain forward-looking statements with
respect to the sale of Dominion Energy Questar Pipeline, LLC, and
associated entities, and the use of the proceeds of such sale,
which are subject to various risks and uncertainties. Factors that
could cause actual results to differ include but are not limited
to: the risk that Dominion Energy and Southwest Gas may be unable
to obtain any necessary regulatory approvals for the transaction or
that required regulatory approvals may delay the transaction and
the risk that any conditions to the closing of any of the
transaction may not be satisfied. Other risk factors are
detailed from time to time in Dominion Energy's quarterly reports
on Form 10-Q and most recent annual report on Form 10-K filed with
the Securities and Exchange Commission. These forward-looking
statements speak only as of the date of this press release.
Dominion Energy assumes no obligation to provide any revisions to,
or update, any projections and forward-looking statements contained
in this press release.
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SOURCE Dominion Energy