Dominion Energy announced on Dec. 31 that it has closed the previously announced sale of Questar Pipelines to Southwest Gas Holdings Inc., in a transaction valued at $1.975 billion, including the assumption of $430 million of existing debt. This transaction was previously announced on Oct. 5, 2021.
Southwest Gas Holdings Inc. has also created a new subsidiary named MountainWest Pipelines Holding Co. that owns the Questar Pipeline Entities, Southwest Gas said in a separate press release. The Questar Pipeline Entities will be rebranded under the MountainWest brand during the first half of 2022.
MountainWest provides 2,160 miles of highly contracted, FERC-regulated interstate natural gas pipelines in the Rocky Mountain region. Colleen Larkin Bell will lead the MountainWest entities as president who will report to Karen Haller, executive vice president of Southwest Gas Holdings. The acquisition is expected to be accretive to Southwest Gas Holdings' earnings per share in 2022.
"We are very enthusiastic about the addition of MountainWest to the Southwest Gas Holdings family of assets," said John Hester, president and CEO of Southwest Gas Holdings. "Natural gas pipelines are essential to the nation's energy future, which includes alternative sources such as renewable natural gas and hydrogen blended gas, and MountainWest brings increased scale and diversification to our business portfolio. MountainWest will focus on adding value by accelerating growth opportunities and positioning the Company as a leader in the evolving energy landscape. We look forward to sharing additional information about growth opportunities related to this acquisition in the near future."
Lazard Frères & Co. LLC served as the exclusive financial advisor to Southwest Gas Holdings, while Morrison & Foerster LLP served as legal advisor to the company.
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