Dominion Completes Carolina Gas Transmission Acquisition
RICHMOND, Va., Feb. 2, 2015 /PRNewswire/ -- Dominion Resources, Inc. (NYSE: D), today announced that it has closed the transaction to acquire Carolina Gas Transmission (CGT) from SCANA Corporation (NYSE: SCG) for approximately $492.9 million, excluding working capital adjustments. CGT owns and operates nearly 1,500 miles of FERC-regulated interstate natural gas pipeline in South Carolina and southeastern Georgia.
The transaction includes no assumption of debt and is expected to be immediately accretive to Dominion's operating earnings per share.
Subject to board approvals by Dominion and Dominion Midstream GP, LLC, the general partner of Dominion Midstream Partners, LP (NYSE: DM), Dominion expects to contribute CGT into Dominion Midstream by mid-year 2015 for a combination of debt and units.
The contribution of CGT is also anticipated 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 best-in-class rate.
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. Dominion expects to build upon CGT's existing infrastructure growth plans to enable this fully subscribed system to meet the increasing demand for natural gas transportation services in the region.
McGuireWoods LLP was the company's legal adviser for the acquisition.
Dominion is one of the nation's largest producers and transporters of energy, with a portfolio of approximately 24,600 megawatts of generation, 12,400 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 947 billion cubic feet of storage capacity and serves utility and retail energy customers in 12 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 by Dominion Resources, Inc., in March 2014 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 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; Dominion Midstream