Market Overview

Dominion Agrees To Acquire Carolina Gas Transmission


Dominion Resources, Inc. (NYSE: D), today announced that it has agreed to purchase Carolina Gas Transmission (CGT) from SCANA Corporation (NYSE: SCG) for approximately $492.9 million. CGT owns and operates nearly 1,500 miles of FERC-regulated interstate natural gas pipeline in South Carolina and southeastern Georgia. The company plans to close on the acquisition in January 2015.

The transaction would include no assumption of debt and, upon closing, would be immediately accretive to Dominion's operating earnings per share.

Subject to board approvals by Dominion and Dominion Midstream Partners, LP (NYSE: DM), Dominion expects to contribute CGT into Dominion Midstream for a combination of debt and units by mid-year 2015. Dominion, through certain of its subsidiaries, currently owns an approximate 68.5 percent limited partner interest in Dominion Midstream, in addition to its general partner, and all associated incentive distribution rights. Dominion will update its strategic plan at its Feb. 9, 2015, Analyst Meeting.

Dominion expects that the contribution of CGT would be immediately accretive to Dominion Midstream's distributed cash flow per unit and supportive of Dominion Midstream's intention to grow distributions to unit-holders at a best-in-class rate.

Thomas F. Farrell II, chairman, president and chief executive officer of Dominion and chairman and CEO of Dominion Midstream, said:

"This is a compelling strategic opportunity for Dominion and Dominion Midstream that both supports our targeted growth rates and demonstrates our ability to deliver value-accretive M&A for our share- and unit-holders.

"Carolina Gas Transmission is a great fit for our well-run, regulated natural gas businesses as we expand our operations into the Southeast. It also boasts an outstanding safety record, a tremendous reputation for reliable service and a robust pipeline of committed expansion projects that we expect to create significant EBITDA growth over the next several years."

As part of the acquisition agreement, Dominion is offering continued employment for CGT's approximately 120-person workforce. In addition, the company has committed to an extended period of rate stability for current CGT customers. As an engaged corporate citizen, Dominion will honor CGT's commitment to economic development and community vitality in its service area.

The acquisition will require Hart-Scott-Rodino antitrust clearance.

More information about the planned transaction is available on the web at

Posted-In: News Press Releases


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