Dominion Offers to Buy Out Rest of Dominion Energy Midstream -- Update

   By Bowdeya Tweh 
 

Dominion Energy Inc. (D) has made a nonbinding offer to buy the rest of Dominion Energy Midstream Partners LP (DM) it doesn't already own for $17.75 a unit, the utility-holding company said Wednesday.

Dominion offered to buy the remaining outstanding units of Dominion Energy Midstream for $17.75 each, which is about 1.7% less than its Wednesday closing price of $18.05.

"Continued weakness in MLP capital markets combined with the prolonged disruption in Dominion Energy Midstream's common unit price since the March 15 Federal Energy Regulatory Commission policy revision were key factors that led to this decision," Dominion Energy Chief Executive Thomas Farrell II said in prepared remarks.

Richmond, Va.-based Dominion Energy supplies electricity or natural gas to nearly six million customers in 19 states.

Dominion Energy Midstream has a portfolio of natural-gas terminaling, processing, storage and transportation assets.

Dominion Energy Midstream didn't immediately respond to a request for comment about the offer.

Shares of Dominion were little changed in after-hours trading, while Dominion Energy Midstream units fell 3.3%.

Through Wednesday's close, Dominion Energy Midstream is down about 41% for the year while Dominion is down about 13%.

The move by Dominion follows several similar proposals in the sector, where energy companies are completing buyouts of master limited partnerships. Enbridge Inc. (ENB) reached a deal to buy out Spectra Energy Partners LP (SEP) in August, and Williams Cos. (WMB) announced a deal in May to buy out Williams Partners.

Write to Bowdeya Tweh at [e-mail]

(END) Dow Jones Newswires

September 19, 2018 17:24 ET (21:24 GMT)

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