Approximately $200m of limited partnership units is being paid by Dominion Midstream to seller Dominion. A two-year note has also been signed with Dominion for the remaining $295m to acquire the Dominion Carolina Gas Transmission.
Dominion and Dominion Midstream chairman, president and chief executive officer Thomas Farrell II said: "Today’s asset contribution demonstrates Dominion’s and Dominion Midstream’s ability to execute complementary acquisitions to augment our dropdown strategy to achieve targeted best-in-class distribution growth at Dominion Midstream."
Dominion Carolina Gas Transmission owns and operates approximately 1,500 miles of FERC-regulated interstate natural gas pipeline in South Carolina and southeastern Georgia.
The transaction, which is expected to be immediately accretive to Dominion Midstream’s distributed cash flow per unit, supports the aim of partnership to grow distributions to unitholders at a compounded annual growth rate of about 22% annually by 2020.
Established by Dominion Resources in March 2014, Dominion Midstream owns, operates, develops and acquires natural gas import, storage, regasification, transportation and related assets.
