8-KOther Events

DOMINION ENERGY, INC 8-K Report (Nov 14, 2001)

Filed November 14, 2001For Securities:D

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.

Frequently Asked Questions

The total value of the acquisition was approximately $1.8 billion. This consisted of about 14 million shares of Dominion common stock, valued at $876 million, and approximately $888 million in cash.

Louis Dreyfus Natural Gas Corp. was merged into a newly formed, wholly owned subsidiary of Dominion, which was then contributed to Consolidated Natural Gas Company (CNG), another wholly owned subsidiary of Dominion. The operations will continue under CNG.

Dominion acquired Louis Dreyfus' operations in the acquisition, development, exploration, and marketing of natural gas and crude oil. Key operational areas include the Permian Region (west Texas, southeast New Mexico, San Juan Basin), the Mid-Continent Region (Oklahoma, Kansas, Texas panhandle, east Texas, southwest Arkansas, north Louisiana), and the Gulf Coast Region (south Texas, offshore Gulf of Mexico). Louis Dreyfus had proved reserves of 1.8 Tcfe as of December 31, 2000, with 89% being natural gas.

The required audited financial statements and pro forma financial information for the acquired business are not yet available. Dominion Resources has stated that these will be filed as soon as practicable, but no later than 60 days after the filing date of this report (November 13, 2001).