Dominion Midstream to Acquire Questar From Dominion Resources
October 31 2016 - 7:53AM
Dow Jones News
By Austen Hufford
Dominion Midstream Partners LP (DM) and Dominion Resources Inc.
(D) said Dominion Midstream will acquire Questar Pipeline LLC from
Dominion Resources for about $1.73 billion, including debt.
Questar has $435 million of outstanding debt and owns Federal
Energy Regulatory Commission-regulated natural-gas transmission and
storage assets in Colorado, Utah and Wyoming.
Dominion Midstream is funding the deal through equity offerings
and $300 million in new debt.
Dominion Resources and Questar Corp. agreed to combine in
February in a deal valued at about $4.4 billion, including
debt.
Dominion Midstream is a partnership formed by Dominion Resources
to create a portfolio of natural gas terminaling, processing,
storage, transportation assets. Dominion Resources produces and
transports energy, with about 26,000 megawatts of generation,
14,400 miles of natural gas transmission, gathering and storage
pipeline, and 6,500 miles of electric-transmission lines. Dominion
operates natural gas storage systems with 1 trillion cubic feet of
storage capacity.
The Dominion companies also reported quarterly results. Dominion
Resources reported earnings of $690 million, or $1.10 a share, up
from $593 million, or $1 a share, a year prior. Revenue rose 5.4%
to $3.13 billion.
Dominion Midstream reported revenue of $85 million, down 18%
from the year prior. It also reported earnings of $24.3 million, up
from $18 million previously. On a per common unit basis, income
rose to 30 cents from 28 cents.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
October 31, 2016 07:38 ET (11:38 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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