Dominion Energy Announces Closing of Sale of Western Natural Gas Distribution Assets Questar Gas, Wexpro

Rhea-AI Summary

On June 3, 2024, Dominion Energy (NYSE: D) announced the completion of the sale of Questar Gas Company and Wexpro Company to Enbridge Inc. (TSX: ENB, NYSE: ENB) for approximately $4.3 billion, which includes assumed debt and adjustments for customary closing items. The transaction, initially announced on September 5, 2023, involves Questar Gas, a natural gas utility serving 1.2 million customer accounts across Utah, Wyoming, and Idaho, and Wexpro, which supplies natural gas under a cost-of-service agreement.

Dominion Energy also revealed plans to finalize the sale of its gas distribution company in Gastonia, N.C., to Enbridge later this year. Dominion Energy serves over 4.5 million customers in 13 states and aims for Net Zero emissions by 2050.

Positive

• Dominion Energy secures $4.3 billion from the sale, enhancing liquidity.
• Assumed indebtedness transferred to Enbridge, reducing Dominion's debt burden.
• Maintains commitment to Net Zero emissions by 2050, aligning with ESG goals.

Negative

• Sale includes significant assets, potentially reducing Dominion's future revenue.
• Questar Gas's large customer base (1.2 million accounts) and extensive infrastructure (21,000 system miles) are transferred, impacting Dominion's market presence.
• Further divestiture of the gas distribution company in Gastonia, N.C., indicates continued asset offloading.

News Market Reaction – D

-0.46%

1 alert

-0.46% News Effect

On the day this news was published, D declined 0.46%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

RICHMOND, Va., June 3, 2024 /PRNewswire/ -- Dominion Energy, Inc. (NYSE: D), today announced closure of the sale of its Salt Lake City, Utah-based natural gas utility Questar Gas Company, and its cost-of-service gas supply company, Wexpro Company, to Enbridge Inc. (TSX: ENB) (NYSE: ENB) for approximately $4.3 billion, including assumed indebtedness and adjusted for customary closing items. This transaction was previously announced on Sept. 5, 2023.

Questar Gas Company, with more than 21,000 system miles, serves 1.2 million customer accounts in Utah, Wyoming, and Idaho, and Wexpro Company supplies natural gas under a cost-of-service agreement to Questar Gas. Dominion Energy and Enbridge expect to close on the sale of Dominion Energy's gas distribution company headquartered in Gastonia, N.C., in a separate transaction later this year.

About Dominion Energy
More than 4.5 million customers in 13 states energize their homes and businesses with electricity or natural gas from Dominion Energy (NYSE: D), headquartered in Richmond, Va. The company is committed to providing reliable, affordable, and increasingly clean energy every day and to achieving Net Zero emissions by 2050. Please visit DominionEnergy.com to learn more.

View original content to download multimedia:https://www.prnewswire.com/news-releases/dominion-energy-announces-closing-of-sale-of-western-natural-gas-distribution-assets-questar-gas-wexpro-302161838.html

SOURCE Dominion Energy

FAQ

What assets did Dominion Energy sell to Enbridge?

Dominion Energy sold Questar Gas Company and Wexpro Company to Enbridge for $4.3 billion.

When was the sale of Questar Gas Company and Wexpro Company announced?

The sale was initially announced on September 5, 2023.

How many customer accounts did Questar Gas serve?

Questar Gas served 1.2 million customer accounts in Utah, Wyoming, and Idaho.

What is the value of the transaction between Dominion Energy and Enbridge?

The transaction is valued at approximately $4.3 billion, including assumed debt.

Will Dominion Energy sell any other assets to Enbridge?

Yes, Dominion Energy plans to sell its gas distribution company in Gastonia, N.C., to Enbridge later this year.