Dominion Energy Agrees to Sell Questar Pipelines to Southwest Gas

By Stephen Nakrosis

Dominion Energy on Tuesday said it agreed to sell Questar Pipelines to Southwest Gas Holdings Inc. in a deal valued at $1.975 billion.

Dominion said the deal, which includes the assumption of $430 million of existing indebtedness, doesn't change its existing financial guidance.

The deal is expected to close in the fourth quarter of this year, Dominion said.

Proceeds from the sale will be used by Dominion Energy to reduce parent-level debt and support its regulated capital plan, the company said.

"This transaction represents another significant step in our evolution as a company, allowing us to focus even more on fulfilling the energy needs of our utility customers and continuing growth of our clean-energy portfolio," said Robert M. Blue, Dominion Energy chair.

On Tuesday, The Wall Street Journal reported Carl Icahn, in a letter to the Southwest Gas board, said he had a significant stake in the company and said the purchase of Questar Pipelines would be a mistake.

Write to Stephen Nakrosis at [e-mail]

(END) Dow Jones Newswires

10-05-21 1708ET