- Total cash proceeds of $1.32 billion, above the midpoint of previously issued guidance
- Successfully completes the credit improvement initiatives announced earlier this year
RICHMOND, Va., Sept. 24, 2018 Dominion Energy (NYSE: D) today announced that it has executed definitive agreements to divest its interests in three merchant electric generation assets for total proceeds of $1.32 billion. The interests being sold in two separate transactions include:
- 100 percent interest in the Fairless Power Station, a 1,240-megawatt combined-cycle gas turbine located in Pennsylvania;
- 100 percent interest in the Manchester Street Power Station, a 468-megawatt combined-cycle gas turbine located in Rhode Island; and
- 25 percent interest in the Catalyst Old River Hydroelectric Limited Partnership, which owns a 192-megawatt hydroelectric generating station in Louisiana.
Fairless and Manchester are being sold to an affiliate of Starwood Energy for cash consideration of approximately $1.23 billion, which includes no working capital. The sale will require the approval of the Federal Energy Regulatory Commission and Hart-Scott-Rodino antitrust clearance. The partial interest in Catalyst Old River Hydroelectric is being sold for cash consideration of approximately $90 million.
Both transactions are expected to close by year-end 2018.
Thomas F. Farrell, II, Dominion Energy chairman, president and chief executive officer, said:
"We are pleased with these results from our non-core asset sales. The total proceeds exceed the midpoint of our previously issued guidance range of $1.0 to $1.5 billion. These actions demonstrate our commitment to the company's credit profile and represent the successful completion of the credit improvement initiatives that we announced in March. We appreciate the opportunity to have worked with Starwood Energy and know that it will benefit greatly from the continued efforts of the plant employees who have delivered best-in-class performance at Fairless and Manchester Street."
Based on strong interest from third parties, Dominion Energy will continue to evaluate its 50 percent interest in the Blue Racer Midstream joint venture though additional non-core asset sale proceeds are not required to achieve Dominion Energy's credit objectives.
With regard to the transaction with Starwood Energy, Citi and J.P. Morgan are serving as financial advisers to Dominion Energy. McGuireWoods LLP is serving as the company's legal counsel for both transactions.
About Dominion Energy
Nearly 6 million customers in 19 states energize their homes and businesses with electricity or natural gas from Dominion Energy (NYSE: D), headquartered in Richmond, Va. The company is committed to sustainable, reliable, affordable, and safe energy and is one of the nation's largest producers and transporters of energy with over $78 billion of assets providing electric generation, transmission and distribution, as well as natural gas storage, transmission, distribution, and import/export services. As one of the nation's leading solar operators, the company intends to reduce its carbon intensity 50 percent by 2030. Through its Dominion Energy Charitable Foundation, as well as EnergyShare and other programs, Dominion Energy plans to contribute more than $30 million in 2018 to community causes throughout its footprint and beyond.
This press release contains "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements relate to, among other things, expectations and projections. Actual results may differ from expectations, estimates and projections and, consequently, readers should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "assume," "estimate," "project," "anticipate," "intend," "plan," "may," "will," "could," "should," "believe," "potential," and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results, and may include, but are not limited to, statements about proposed transactions, Dominion Energy's plans, objectives, expectations and intentions and the timing of future events. All statements relating to events or developments that we expect or anticipate will occur in the future are forward-looking statements, and Dominion Energy's ability to predict results or the actual effect of future events is inherently uncertain. Although Dominion Energy believes that the expectation reflected in any forward-looking statement are based on reasonable assumptions, it can give no assurance that actual outcomes and results will not differ materially from what is expressed in such forward-looking statements. There can be no assurance that the transactions will close.
Forward-looking statements in this release are based on information available as of the date of this release, which such information is subject to change at any time. Dominion Energy undertakes no obligation to update any forward-looking statement to reflect developments after the statement is made.
SOURCE Dominion Energy
For further information: Media: Ryan Frazier, (804) 819-2521 or C.Ryan.Frazier@dominionenergy.com or Financial analysts: Steven Ridge, (804) 929-6865 or Steven.D.Ridge@dominionenergy.com