Dominion CEO: Expects To Get Natural-Gas Export Permit In 2012

Dominion Resources Inc. (D) expects to obtain a key federal permit this year that will allow it to export natural gas from an existing facility in Maryland, the company's top executive said Friday.

Dominion's Cove Point liquefied natural-gas terminal was originally built to receive natural-gas imports. But with the U.S. boom in natural-gas production, Dominion, Cheniere Energy Inc. (LNG) and other companies have sought to modify their terminals to export natural gas abroad, where prices and demand are higher.

"With all the gas that's available in this country now, particularly in this region, we think it's likely the permit will be issued [and] we expect to have it later this year," Dominion Chairman and Chief Executive Thomas Farrell said during a conference call with analysts to discuss fourth-quarter earnings.

Last autumn, the company applied with the U.S. Department of Energy to export up to 365 billion cubic feet of natural gas per year from the terminal, and has been in discussions with potential customers in Europe and Asia, and with U.S. natural-gas producers, about deals, Farrell said.

Dominion Resources plans to build pipelines and other facilities to gather, process and ship natural gas produced from the Marcellus and Utica shale formations in the Northeast and Mid-Atlantic, Farrell said.

Dominion Resources reported a fourth-quarter profit of $201 million, or 35 cents a share, down from $298 million, or 51 cents a share, a year earlier. Excluding write-downs of generation assets and other items, earnings fell to 58 cents a share from 63 cents. In October, the company forecast adjusted earnings of 58 cents to 73 cents a share.

Shares of Dominion were recently trading 0.9% lower at about $50.42.

-By Cassandra Sweet, Dow Jones Newswires; 415-269-4446; [e-mail]