Summary
Dominion Energy, Inc. has entered into definitive agreements to sell its local gas distribution businesses, including East Ohio Gas, PSNC, and Questar Gas (along with Wexpro), to wholly-owned subsidiaries of Enbridge Inc. The total transaction value is approximately $14.0 billion, comprising $9.4 billion in cash and $4.6 billion in assumed debt. This divestiture represents a significant strategic move for Dominion Energy, allowing it to focus on its core regulated utility and renewable energy operations. The sale is structured as three separate transactions, with closings not being cross-conditioned and expected by the end of 2024. The transactions are subject to customary closing conditions, including regulatory approvals such as HSR, CFIUS, FCC, and state-level approvals. Dominion Energy will provide transition services for a limited period post-closing, and Enbridge has secured a $9.4 billion bridge facility for the transaction.
Key Highlights
- 1Sale of three local gas distribution companies (East Ohio Gas, PSNC, Questar Gas/Wexpro) to Enbridge for $14.0 billion.
- 2Transaction comprises $9.4 billion in cash and $4.6 billion in assumed indebtedness.
- 3Divestiture allows Dominion Energy to streamline its business and focus on core regulated utility and renewable energy assets.
- 4Each transaction closing is independent and expected by the end of 2024.
- 5Key regulatory approvals required, including HSR, CFIUS, FCC, and state commissions.
- 6Enbridge has secured a $9.4 billion bridge financing facility for the acquisition.
- 7Dominion Energy will provide transition services post-closing.