- CGT expected to be contributed to Dominion Midstream Partners in first half of 2015
- Dominion offering continued employment for workers, rate stability for customers
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.
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.
SOURCE Dominion Resources, Inc.; Dominion Midstream Partners, LP
For further information: Media: Ryan Frazier, (804) 819-2521 or C.Ryan.Frazier@dom.com or Financial analysts: Kristy Babcock, (804) 819-2492 or Kristy.R.Babcock@dom.com