Dominion Resources Inc. (NYSE: D) announced Dec. 16 it agreed to acquire Carolina Gas Transmission (CGT) from SCANA Corp. (NYSE: SCG) for about $492.9 million.
CGT owns and operates about 1,500 miles of Federal Energy Regulatory Commission-regulated interstate natural gas pipeline in South Carolina and southeastern Georgia. The acquisition is expected to close in January.
The transaction would not include assumption of debt and, upon closing, would be immediately accretive to Dominion’s operating earnings per share.
Subject to board approvals by Dominion and Dominion Midstream Partners LP (NYSE: DM), Dominion plans to contribute CGT into Dominion Midstream for a combination of debt and units by mid-year 2015. Dominion, through its subsidiaries, currently owns about 68.5% of the limited partner interest in Dominion Midstream, in addition to its general partner, and all associated incentive distribution rights.
Dominion expects that the contribution of CGT would be immediately accretive to Dominion Midstream’s distributed cash flow per unit, and supportive of its intention to grow distributions to unitholders at a best-in-class rate. The acquisition will require Hart-Scott-Rodino antitrust clearance.