RICHMOND, Va., Sept. 30, 2020 /PRNewswire/ -- Dominion
Energy (NYSE: D) today provided several updates related to the
pending sale of its gas transmission and storage assets to an
affiliate of Berkshire Hathaway Inc. (NYSE: BRK.A).
Transaction closing
Dominion Energy expects its
transaction with Berkshire Hathaway Energy, exclusive of Questar
Pipelines, to close around November
1, 2020. As consideration for that transaction,
Dominion Energy will receive approximately $2.7 billion in cash and transfer $5.3 billion of existing Dominion Energy Gas
Holdings ("DEGH") related indebtedness to the buyer at
closing.
Dominion Energy expects to complete the sale of Questar
Pipelines to Berkshire Hathaway Energy upon receipt of
Hart-Scott-Rodino ("HSR") clearance in early 2021. As
consideration for that transaction, Dominion Energy would receive
approximately $1.3 billion in cash
and transfer around $430 million of
existing Questar Pipelines indebtedness to the buyer.
Aggregate cash consideration and assumption of debt across the
two anticipated closings is exactly equivalent to the original
transaction terms announced on July 5,
2020.
This mutually agreed dual-phase closing is the result of updated
timing expectations for receipt of the HSR clearance from the
Federal Trade Commission ("FTC") related exclusively to the sale of
Questar Pipeline and Overthrust Pipeline (together with related
entities, "Questar Pipelines"). Given all closing conditions
have been met with respect to non-Questar Pipelines assets included
in the transaction, Dominion Energy and Berkshire Hathaway Energy
have opted to move forward with an expeditious initial closing to
be followed with a subsequent Questar Pipelines closing in early
2021.
As a result of the phased closing, Questar Pipelines and its
associated debt will be removed from Dominion Energy Gas Holdings
prior to the transfer of DEGH to Berkshire. Berkshire
Hathaway Energy, which is A-rated, has indicated it plans to
support the existing credit profile of DEGH by foregoing the
refinancing of some $1.2 billion of
scheduled maturities over the next 12 months as well as
consideration of other credit-enhancing measures including
additional deleveraging past 2021, as needed.
Share repurchases
To date, Dominion Energy has
completed over $500 million of open
market repurchases as well as executed a $1.5 billion accelerated share repurchase program
that will conclude in December. When complete in early 2021,
the Company continues to expect total share repurchases to be at
least $3 billion.
2020 operating earnings per share guidance
Based on
strong year-to-date performance, Dominion Energy now expects 2020
operating earnings per share, normalized for weather, to be in the
top half of its $3.37 to $3.60 guidance range. Dominion Energy is
also affirming all other earnings and dividend guidance. The
dual-phase closing will not change the Company's prior guidance
with regard to treatment of assets being divested (inclusive of
Questar Pipelines) as discontinued operations and excluded from
operating earnings.
About Dominion Energy
More than 7 million customers in
20 states energize their homes and businesses with electricity or
natural gas from Dominion Energy (NYSE: D), headquartered in
Richmond, Va. The company is
committed to sustainable, reliable, affordable and safe energy and
to achieving net zero carbon dioxide and methane emissions from its
power generation and gas infrastructure operations by 2050. Please
visit DominionEnergy.com to learn more.
This release contains certain forward-looking statements,
including 2020 operating earnings guidance and projected dividends
for the remainder of 2020 and beyond which are subject to various
risks and uncertainties. Factors that could cause actual results to
differ include, but are not limited to: the expected timing
and likelihood of completion of the proposed transaction with
Berkshire Hathaway Energy; the risk that Dominion Energy or
Berkshire Hathaway Energy may be unable to obtain necessary
regulatory approvals for the transaction or required regulatory
approvals may delay the transaction; the risk that conditions to
the closing of the transaction may not be satisfied; the repurchase
of less than $3 billion of Dominion
Energy common stock through a share repurchase program;
unusual weather conditions and their effect on energy sales to
customers and energy commodity prices; extreme weather events and
other natural disasters; extraordinary external events, such as the
current pandemic health event resulting from COVID-19; federal,
state and local legislative and regulatory developments; changes to
federal, state and local environmental laws and regulations,
including proposed carbon regulations; cost of environmental
compliance; changes in enforcement practices of regulators relating
to environmental standards and litigation exposure for remedial
activities; capital market conditions, including the availability
of credit and the ability to obtain financing on reasonable terms;
fluctuations in interest rates; changes in rating agency
requirements or credit ratings and their effect on availability and
cost of capital; impacts of acquisitions, divestitures, transfers
of assets by Dominion Energy to joint ventures, and retirements of
assets based on asset portfolio reviews; receipt of approvals for,
and timing of, closing dates for acquisitions and divestitures;
changes in demand for Dominion Energy's services; additional
competition in Dominion Energy's industries; changes to regulated
rates collected by Dominion Energy; changes in operating,
maintenance and construction costs; timing and receipt of
regulatory approvals necessary for planned construction or
expansion projects and compliance with conditions associated with
such regulatory approvals; adverse outcomes in litigation matters
or regulatory proceedings; and the inability to complete
planned construction projects within time frames initially
anticipated. Other risk factors are detailed from time to time in
Dominion Energy's quarterly reports on Form 10-Q and most recent
annual report on Form 10-K filed with the Securities and Exchange
Commission.
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SOURCE Dominion Energy