Summary
Dominion Resources, Inc. (Dominion) announced the completion of its acquisition of Louis Dreyfus Natural Gas Corp. (Louis Dreyfus) on November 1, 2001. This significant transaction, valued at approximately $1.8 billion, involved Dominion issuing approximately 14 million shares of its common stock and $888 million in cash. Louis Dreyfus will be merged into a subsidiary of Consolidated Natural Gas Company (CNG), a wholly owned subsidiary of Dominion, and will continue its operations within CNG. The acquisition significantly expands Dominion's footprint in the natural gas and crude oil sector, integrating Louis Dreyfus' substantial proved reserves of 1.8 Tcfe and operations primarily located in the Permian, Mid-Continent, and Gulf Coast regions of the United States. The company noted that 89% of Louis Dreyfus' reserves are natural gas, with 82% already developed.
Key Highlights
- 1Dominion Resources, Inc. has completed the acquisition of Louis Dreyfus Natural Gas Corp. for approximately $1.8 billion.
- 2The acquisition was financed through a combination of Dominion common stock (valued at $876 million) and cash ($888 million).
- 3Louis Dreyfus will be merged into a subsidiary of Consolidated Natural Gas Company (CNG), a Dominion subsidiary.
- 4Louis Dreyfus brings significant proved reserves of 1.8 Tcfe, with natural gas comprising 89% of its reserve base.
- 5Operations acquired are concentrated in key US regions: Permian, Mid-Continent, and Gulf Coast.
- 6The company plans to file the required audited financial statements and pro forma financial information for the acquired business within 60 days.