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.
Recommended Reading
E&P Highlights: Nov. 4, 2024
2024-11-05 - Here’s a roundup of the latest E&P headlines, including a major development in Brazil coming online and a large contract in Saudi Arabia.
Proppant Suppliers Covia, Black Mountain Merge to Become Iron Oak Energy Solutions
2024-11-04 - Iron Oak Energy Solutions will supply proppant to E&P operations in basins across North America.
Exxon Plans Longest 20,000-Ft Wells on Pioneer’s Midland Asset
2024-11-04 - Exxon Mobil has already drilled some of the longest wells in the New Mexico Delaware Basin. Now, the Texas-based supermajor looks to go longer on Pioneer’s Midland Basin asset.
Glenfarne Selects Kiewit to Tackle EPC on Texas LNG
2024-11-04 - Glenfarne Energy Transition said Kiewit Energy Group will complete the engineering required to move Texas LNG toward a final investment decision.
Diamondback Swaps Delaware Assets, Pays $238MM For TRP’s Midland Assets
2024-11-04 - After closing a $26 billion acquisition of Endeavor Energy Resources, Diamondback Energy is getting deeper in the Midland Basin through an asset swap with TRP Energy.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.