Dominion to Sell Two Power Stations to Starwood Energy -- Update

   By Josh Beckerman 
 

Dominion Energy (D) said Monday that it agreed to sell its interests in three merchant electric generation assets for total proceeds of $1.32 billion.

The company is selling the Fairless Power Station in Pennsylvania and the Manchester Street Power Station in Rhode Island to Starwood Energy for about $1.23 billion.

Dominion also agreed to sell its 25% stake in Catalyst Old River Hydroelectric LP, which owns a Louisiana hydroelectric generating station, for $90 million. Dominion didn't specify the buyer.

Earlier this year, the company said it planned to sell non-core assets. Dominion said Monday it is "pleased" with the sale results, exceeding the midpoint of its guidance of $1 billion to $1.5 billion for asset-sale proceeds.

Based on strong third-party interest, Dominion will continue to evaluate its 50% stake in the Blue Racer Midstream joint venture.

Dominion shares rose 1.1% to $70.85 after hours.

Last week, Dominion announced a nonbinding offer to buy the rest of Dominion Energy Midstream Partners LP (DM) it doesn't already own, citing factors including weakness in capital markets for master limited partnerships.

Write to Josh Beckerman at [e-mail]

(END) Dow Jones Newswires

September 24, 2018 18:41 ET (22:41 GMT)

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