Dominion Midstream to Acquire Questar From Dominion Resources

   By Austen Hufford 
 

Dominion Midstream Partners LP (DM) and Dominion Resources Inc. (D) said Dominion Midstream will acquire Questar Pipeline LLC from Dominion Resources for about $1.73 billion, including debt.

Questar has $435 million of outstanding debt and owns Federal Energy Regulatory Commission-regulated natural-gas transmission and storage assets in Colorado, Utah and Wyoming.

Dominion Midstream is funding the deal through equity offerings and $300 million in new debt.

Dominion Resources and Questar Corp. agreed to combine in February in a deal valued at about $4.4 billion, including debt.

Dominion Midstream is a partnership formed by Dominion Resources to create a portfolio of natural gas terminaling, processing, storage, transportation assets. Dominion Resources produces and transports energy, with about 26,000 megawatts of generation, 14,400 miles of natural gas transmission, gathering and storage pipeline, and 6,500 miles of electric-transmission lines. Dominion operates natural gas storage systems with 1 trillion cubic feet of storage capacity.

The Dominion companies also reported quarterly results. Dominion Resources reported earnings of $690 million, or $1.10 a share, up from $593 million, or $1 a share, a year prior. Revenue rose 5.4% to $3.13 billion.

Dominion Midstream reported revenue of $85 million, down 18% from the year prior. It also reported earnings of $24.3 million, up from $18 million previously. On a per common unit basis, income rose to 30 cents from 28 cents.

Write to Austen Hufford at [e-mail]

(END) Dow Jones Newswires

October 31, 2016 07:38 ET (11:38 GMT)

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