Dominion Energy to Buy Rest of Dominion Energy Midstream Partners
(Reuters) – Dominion Energy said Wednesday it offered to buy the rest of Dominion Energy Midstream Partners in an all-stock deal, valuing the company at about $2.2 billion.
Dominion Energy, which owns a stake of 15% in the company, offered 0.2468 of its shares per Dominion Energy Midstream common unit, valuing each unit at $17.75 based on closing prices as of Sept. 18, the company said.
Pipeline companies are reorganizing their business structure after the U.S. Federal Energy Regulatory Commission in March stopped them from claiming an income tax allowance as part of the fees they charge shippers.
"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 Officer Thomas Farrell said.
The offer represented a discount of nearly 2% to Dominion Energy Midstream’s Wednesday close of $18.05 but was at a premium of 8.2% based on the 30-day volume-weighted average unit price.
Shares of Dominion Energy Midstream were down 3.3% at $17.45 in extended trading, while those of Dominion Energy were largely unchanged.
Related News
Related News
- Texas Waha Hub Gas Prices Plunge to Record Lows, Hit Negative Territory
- Williams Seeks Emergency Certificate to Operate $1 Billion Mid-Atlantic Gas Pipeline After Court Reversal
- Texas Oil Pipelines Near Max Capacity, Threatening Future Export Limits
- Energy Transfer Subsidiary Selects KTJV for Lake Charles LNG Export Project
- FERC Sides with Williams in Texas-Louisiana Pipeline Dispute with Energy Transfer
- Saudi Arabia Looking to Expand Pipeline to Reduce Oil Exports via Gulf
- Report: Houston Region Poised to Become a Global Clean Hydrogen Hub
- Texas Startup Endeavors Again to Build First Major U.S. Oil Refinery Since 1977
- Alaska Greenlights Enstar’s $57 Million Pipeline to Boost LNG Imports
- Texas Waha Hub Gas Prices Plunge to Record Lows, Hit Negative Territory
Comments