01—Abstract
Summary
Summary of the 8-K filed June 3, 2024. Cited figures are marked; the original filing is the authoritative source.
Dominion Energy, Inc. (D) filed an 8-K on June 2, 2024, detailing the completion of its previously announced sale of Questar Gas and related entities to Enbridge Quail Holdings, LLC (Enbridge).
The transaction, which closed on May 31, 2024, involved the sale of all membership interests in Fall West Holdco LLC, the intermediate holding company for Questar Gas, Wexpro Company, and other related entities. Investors should note that Dominion Energy received approximately $3.0 billiona in cash and Enbridge assumed approximately $1.3 billion of indebtedness related to the sale.
Questar Gas is a natural gas utility serving Utah, Wyoming, and Idaho, with Wexpro Company being a significant supplier. This divestiture is a key step in Dominion Energy's strategic repositioning, with pro forma financial information for this transaction not requiring immediate filing as the disposed business was already reported as discontinued operations.
02—Key points
Key Highlights
- Completion of the sale of Questar Gas and related entities (Fall West Holdco LLC, Wexpro Company) to Enbridge Quail Holdings, LLC on May 31, 2024.
- Dominion Energy received $3.0 billion in cash from the sale.
- Enbridge assumed approximately $1.3 billion of indebtedness related to the disposed assets.
- Questar Gas operates as a natural gas utility in Utah, Wyoming, and Idaho.
- Wexpro Company, a supplier to Questar Gas, was also part of the transaction.
- An amendment to the revolving credit agreement was executed to remove Questar Gas as a party, effective in anticipation of the sale.
- Pro forma financial information for the transaction is not required in this filing as the business was already classified as discontinued operations.
03—Questions
Frequently Asked Questions
What was the total value of the Questar Gas sale?
Dominion Energy received approximately $3.0 billion in cash from Enbridge, and Enbridge assumed approximately $1.3 billion of indebtedness, bringing the total transaction value to approximately $4.3 billion.
What entities were included in the sale of Questar Gas?
The sale included all of Dominion Energy's membership interests in Fall West Holdco LLC, which is the intermediate holding company for Questar Gas, Wexpro Company, and other related entities.
Will Dominion Energy need to file pro forma financial statements for this sale?
No, pro forma financial information is not required to be filed with this Current Report on Form 8-K. This is because Dominion Energy had already reported the results of the disposed business as discontinued operations in its Annual Report on Form 10-K for the year ended December 31, 2023.
How does this sale affect Dominion Energy's credit facility?
Dominion Energy entered into an amendment to its revolving credit agreement to remove Questar Gas as a party to the facility, which was done in anticipation of the closing of the sale.
04—Continue