RICHMOND, Va., April 1, 2015 /PRNewswire/ -- Dominion
Midstream Partners, LP (NYSE: DM), today announced that it has
acquired Dominion Carolina Gas Transmission, LLC, from Dominion
Resources, Inc. (NYSE: D), for approximately $495 million. Dominion Midstream is issuing
approximately $200 million of limited
partnership units to Dominion and has entered into a two-year note
with Dominion for the remaining $295
million in transaction consideration.
Thomas F. Farrell II, chairman,
president and chief executive officer of Dominion and Dominion
Midstream GP, LLC, said:
"Today's asset contribution demonstrates Dominion's and Dominion
Midstream's ability to execute complementary acquisitions to
augment our dropdown strategy to achieve targeted best-in-class
distribution growth at Dominion Midstream."
When Dominion announced it would purchase Dominion Carolina Gas
Transmission in December 2014, the
company said that it expected to contribute the business, which
owns and operates nearly 1,500 miles of FERC-regulated interstate
natural gas pipeline in South
Carolina and southeastern Georgia, into Dominion Midstream by mid-year
2015.
The addition of Dominion Carolina Gas Transmission is expected
to be immediately accretive to Dominion Midstream's distributed
cash flow per unit. This transaction supports the partnership's
intention to grow distributions to unitholders at a compounded
annual growth rate of about 22 percent per year through the end of
the decade.
About Dominion Midstream
Dominion Midstream is a
growth-oriented Delaware limited
partnership formed by Dominion Resources, Inc., in March 2014 to own, operate, develop and acquire
natural gas import, storage, regasification, 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 24,600 megawatts of generation, 12,200 miles of
natural gas transmission, gathering and storage pipeline, and 6,455
miles of electric transmission lines. Dominion operates one of the
nation's largest natural gas storage systems with 928 billion cubic
feet of storage capacity and serves utility and retail energy
customers in 13 states. 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 SEC. 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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SOURCE Dominion Midstream Partners, LP; Dominion Resources,
Inc.