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.
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.
For further information: Media: Ryan Frazier, (804) 819-2521 or C.Ryan.Frazier@dom.com; Financial analysts: Kristy Babcock, (804) 819-2492 or Kristy.R.Babcock@dom.com