Following the terminated deal with Berkshire Hathaway Energy, Dominion Energy said it has commenced a competitive process for the sale of Questar Pipeline Group with a target close of year-end 2021. (Source: Dominion Energy)
Dominion Energy and Berkshire Hathaway Energy agreed to terminate the planned Questar Pipeline Group sale due to issues dealing with regulatory clearance, the companies said in separate releases on July 12.
Questar Pipeline provides natural gas transportation and underground storage services from the Rocky Mountains region near large reserves in six major producing areas, including the Greater Green River, Uinta and Piceance basins.
Berkshire Hathaway Energy, a subsidiary of Berkshire Hathaway Inc.—the conglomerate headed by famed investor Warren Buffett, entered an agreement last year to acquire Questar Pipeline as part of its nearly $10 billion acquisition of Dominion’s gas business.
“The decision is a result of ongoing uncertainty associated with achieving clearance from the Federal Trade Commission under the Hart-Scott-Rodino Antitrust Improvements Act of 1976,” Dominion said of the termination in a company statement on July 12.
Further, the terminated deal has no impact on the sale of gas transmission and storage assets to Berkshire Hathaway Energy completed in November 2020. That sale represented approximately 80% of the original transaction value, according to the company releases.
In addition to Questar Pipeline, the transaction included the acquisition of 100% of Dominion Energy Transmission and Carolina Gas Transmission plus 50% of Iroquois Gas Transmission System as well as a stake in the Cove Point LNG facility in Maryland. The all-cash transaction has an enterprise value of approximately $9.7 billion including the assumption of $5.7 billion of debt.
RELATED:
Warren Buffett’s Berkshire Hathaway Buys Dominion Gas Business Worth Nearly $10 Billion
On July 12, Dominion said it will continue to consider Questar Pipeline as discontinued operations and is commencing a competitive process for its sale with a target close of year-end 2021.
Dominion also said it intends to enter into a 364-day term loan to repay the approximately $1.3 billion transaction deposit made by Berkshire Hathaway Energy. The company plans to ultimately repay the loan using proceeds from the sale of Questar Pipelines to an alternative buyer.
Recommended Reading
US Energy Secretary Nominee Chris Wright Champions Energy at DUG GAS
2024-11-19 - President-elect Donald Trump's energy secretary nominee Chris Wright championed energy's role in bettering human lives earlier this year on stage at Hart Energy’s DUG GAS Conference and Expo.
ConocoPhillips Adds Connors to Board
2024-09-05 - Nelda J. Connors will serve on the audit and finance committee and public policy and sustainability committee of ConocoPhillips’ board.
Utica Oil E&P Infinity Natural Resources Latest to File for IPO
2024-10-05 - Utica Shale E&P Infinity Natural Resources has not yet set a price or disclosed the number of shares it intends to offer.
Quantum Raises $10B for Oil, Gas, Midstream, Energy Transition
2024-10-29 - Quantum Capital Group raised $5.25 billion for its private equity flagship, Quantum Energy Partners VIII. A source told Hart Energy that most of the firm’s capital has gone into oil and gas because it offers the best risk-adjusted returns.
BP Profit Falls On Weak Oil Prices, May Slow Share Buybacks
2024-10-30 - Despite a drop in profit due to weak oil prices, BP reported strong results from its U.S. shale segment and new momentum in the Gulf of Mexico.
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.