2023-09-05 22:15:27
Dominion Energy, a leading energy company, has announced the sale of its three natural gas distribution companies to Enbridge for a total transaction value of $14 billion. The sale includes The East Ohio Gas Company, Public Service Company of North Carolina, Incorporated and Questar Gas Company, along with Wexpro Company. These companies collectively serve approximately 3 million homes and businesses in Ohio, North Carolina, Utah, Wyoming and Idaho.
The sale will help Dominion Energy pay down debt and improve its financial position. The company expects to use 100% of the following-tax income, which is estimated at $8.7 billion, to reduce principal debt. The transactions are also expected to improve the company’s consolidated FFO to debt ratio by approximately 3.4%.
Enbridge, one of the largest operators of energy infrastructure assets in North America, will be responsible for operating and managing the natural gas distribution companies. As part of the agreements, Enbridge has committed to protecting existing employees, meeting union commitments and maintaining local operational leadership.
The transactions are subject to customary regulatory approvals and are expected to close by the end of 2024. Dominion Energy plans to complete its business review and announce a repositioned outlook during the fourth quarter of 2023.
Dominion Energy’s focus on the sale of its natural gas distribution companies aligns with its commitment to create long-term shareholder value. The company aims to strengthen its credit standing and emerge from the review on a sustainable credit footing. Dominion Energy is also experiencing significant growth in demand for its electric utilities, driven by data center expansion, electrification and general economic activity.
Overall, the sale of Dominion Energy’s natural gas distribution companies to Enbridge is a strategic move that will allow the company to reduce debt and reposition itself for long-term value creation.
Fuentes:
– Dominion Energy. «Dominion Energy Announces Sale of Natural Gas Distribution Companies to Enbridge for $14 Billion.» PR Newswire. 5 de septiembre de 2023.
– Dominion Energy Investor Relations website.
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