Dominion Energy has announced the execution of a definitive agreement to sell Questar Pipelines to Southwest Gas Holdings Inc., in a transaction valued at US$1.975 billion, including the assumption of US$430 million of existing indebtedness.
Questar Pipelines consists of FERC-regulated, long-term contracted, transportation and underground storage assets in Utah, Wyoming and Colorado, together with related services and processing entities. The transaction is expected to close in the fourth quarter of 2021, subject to regulatory approvals. Robert M. Blue, Dominion Energy chair, president and chief executive officer, said:
"We are pleased with the result of our sale process for these high-quality assets. This transaction represents another significant step in our evolution as a company, allowing us to focus even more on fulfilling the energy needs of our utility customers and continuing growth of our clean-energy portfolio, including development of the largest offshore wind farm in North America. We appreciate the focus and professionalism of the Questar Pipelines employees, who have maintained safe and reliable operations. We look forward to closure by year's end."
This announcement does not change Dominion Energy's existing financial guidance. Questar Pipelines will continue to be accounted for as discontinued operations. Proceeds from the sale will be used by Dominion Energy to reduce parent-level debt, including retiring the 364-day term loan that was entered into in July, which Dominion Energy previously used to repay the approximately US$1.3 billion transaction deposit made by Berkshire Hathaway Energy. Proceeds from the sale of Questar Pipelines will also be used to support Dominion Energy's robust regulated capital plan, as part of the largest regulated decarbonisation opportunity in the country.
McGuireWoods LLP served as legal counsel to Dominion Energy. Barclays acted as the company's financial advisor.
Morrison & Foerster advised Southwest Gas Holdings, Inc. in connection with its agreement to acquire Questar Pipeline, consisting of Dominion Energy Questar Pipeline, LLC, its subsidiaries, and certain associated affiliates, including Overthrust Pipeline, White River Hub, and Questar Field Services from Dominion Energy, Inc. The MoFo team advising Southwest Gas Holdings was led by San Francisco corporate partner and global M&A co-chair Brandon C. Parris, together with Palo Alto M&A partner Michael Krigbaum.
Read the article online at: https://www.worldpipelines.com/business-news/06102021/dominion-energy-announces-agreement-to-sell-questar-pipelines-to-southwest-gas/