- Improves Dominion Energy's quantitative & qualitative
business risk profile via highly credit-positive
partnership
- Stonepeak to fund 50% of project construction costs with
meaningful protection from any unforeseen increases in the current
project construction budget
- Successfully concludes ~$21
billion debt reduction initiatives associated with Dominion
Energy's business review
RICHMOND, Va. and NEW YORK, Oct. 22,
2024 /PRNewswire/ -- Dominion Energy, Inc. (NYSE: D),
today announced that it has closed on a transaction to sell a 50%
noncontrolling interest in the Coastal Virginia Offshore Wind
(CVOW) commercial project to Stonepeak. Dominion Energy will retain
full operational control of the construction and operations of the
project, and Stonepeak will have customary minority rights. The
transaction was previously announced Feb.
22, 2024.
With this transaction, Dominion Energy has now successfully
completed its business review debt reduction initiatives. During
the review, the company announced transactions that represent
approximately $21 billion of debt
reduction. With the closings of the Cove Point LNG, East Ohio Gas,
Questar Gas and Wexpro, and Public Service Company of North Carolina sales; and completion of the
fuel securitization at Dominion Energy Virginia and the offshore
wind partnership, Dominion Energy has now achieved 100% of the
business review target. These actions have improved the
company's balance sheet, reduced its risk profile, and established
a renewed focus as a pure-play, state-regulated electric utility
business.
Robert M. Blue, Dominion Energy
chair, president and chief executive officer, said:
"We are pleased to partner with Stonepeak on CVOW, which continues
to proceed on-time and on-budget, consistent with our previously
communicated timing and cost expectations. Stonepeak is one of the
world's largest infrastructure investors in large energy projects
such as offshore wind, and its financial participation in CVOW will
benefit both the project and the people who will rely on
electricity from CVOW to keep the lights on and fuel economic
growth in the Commonwealth."
Rob Kupchak, senior managing
director at Stonepeak, added:
"We are excited to have closed this investment in CVOW, which
exemplifies many of the core tenets of essential infrastructure
that we invest behind at Stonepeak. We look forward to continuing
our partnership with Dominion Energy's talented team to bring what
promises to be one of the most impactful energy projects in
the United States to commercial
operation."
The 2.6-gigawatt CVOW, the largest offshore wind farm currently
under construction in the United
States, is on schedule to generate enough clean, renewable
energy to power up to 660,000 homes once fully constructed in late
2026. CVOW will consist of 176 turbines and three offshore
substations in a nearly 113,000-acre lease area off the coast of
Virginia Beach.
At closing, Dominion Energy received proceeds of $2.6 billion, representing reimbursement of
approximately 50% of project-to-date capital investment. Stonepeak
will fund 50% of remaining project costs as they are incurred,
subject to certain conditions as previously disclosed.
About Dominion Energy
Dominion Energy (NYSE: D),
headquartered in Richmond, Va.,
provides regulated electricity service to 3.6
million homes and businesses in Virginia, North
Carolina, and South
Carolina, and regulated natural gas service to 400,000
customers in South Carolina. The
company is one of the nation's leading developers and
operators of regulated offshore
wind and solar power and the largest producer
of carbon-free electricity in New England. The company's mission is
to provide the reliable, affordable, and increasingly clean
energy that powers its customers every day. Please
visit DominionEnergy.com to learn more.
About Stonepeak
Stonepeak is a leading alternative
investment firm specializing in infrastructure and real assets with
approximately $70 billion of assets
under management. Through its investment in defensive, hard-asset
businesses globally, Stonepeak aims to create value for its
investors and portfolio companies, with a focus on downside
protection and strong risk-adjusted returns. Stonepeak, as sponsor
of private equity and credit investment vehicles, provides capital,
operational support, and committed partnership to grow investments
in its target sectors, which include communications, energy and
energy transition, transport and logistics, and real estate.
Stonepeak is headquartered in New
York with offices in Houston, London, Hong
Kong, Seoul, Singapore, Sydney, Tokyo, and Abu
Dhabi. For more information, please
visit www.stonepeak.com.
This release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995 that are subject to various risks and uncertainties. These
factors are identified in Dominion Energy's Forms 10-K and 10-Q
filed with the U.S. Securities and Exchange Commission. Dominion
Energy refers readers to those reports for further information. Any
forward-looking statement speaks only as of the date on which it is
made, and Dominion Energy undertakes no obligation to update any
forward-looking statement to reflect events or circumstances
occurring after the date on which it is made.
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content:https://www.prnewswire.com/news-releases/dominion-energy-stonepeak-announce-closing-of-sale-of-noncontrolling-equity-interest-in-coastal-virginia-offshore-wind-commercial-project-302283638.html
SOURCE Dominion Energy