Dominion Energy to sell Questar Pipelines to Southwest Gas
Dominion Energy announced today execution of a definitive agreement to sell Questar Pipelines to Southwest Gas Holdings Inc., in a transaction valued at $1.975 billion, including the assumption of $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.
“We are pleased with the result of our sale process for these high-quality assets,” said Robert M. Blue, Dominion Energy chair, president and chief executive officer. “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.”
Today’s 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 $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 decarbonization opportunity in the country.
McGuireWoods LLP served as legal counsel to Dominion Energy. Barclays acted as the company’s financial advisor.