Dominion Midstream Partners closes $1.725bn Questar Pipeline acquisitionStaff Writer | December 2, 2016
Dominion Midstream Partners closed on the transaction to acquire Questar Pipeline from Dominion Resources for $1.725 billion.
Acquisition $167 million of common units
Cash sources included a previously announced $360 million underwritten public common unit offering, a $137.5 million private placement of common units, and $500 million of convertible preferred units placed with a group of institutional investors led by Stonepeak Infrastructure Partners.
The addition of Questar Pipeline – which owns and operates Federal Energy Regulatory Commission-regulated natural gas transmission and storage assets in Colorado, Utah and Wyoming – is expected to be immediately accretive to Dominion Midstream's distributable cash flow per unit.
This transaction supports the partnership's intention to grow distributions to unitholders at a compounded annual growth rate of 22 percent per year through the end of the decade.
Dominion plans to use the cash generated by the dropdown transaction and other related financing activities to reduce debt at the parent level by $1.2 billion. ■