Dominion Energy and Berkshire Hathaway Energy Agree to Terminate Sale of Questar Pipelines; Dominion Energy Commencing Competitive Sale Process

Rhea-AI Summary

Dominion Energy (NYSE: D) and Berkshire Hathaway Energy announced the termination of the planned sale of Questar Pipelines due to uncertainties with Federal Trade Commission clearance. This decision, effective July 9, 2021, does not affect the previous sale of gas transmission assets completed in November 2020. Dominion is initiating a competitive sale process for Questar Pipelines, aiming for completion by year-end 2021. The company will account for the pipelines as discontinued operations and plans to secure a 364-day loan to repay a $1.3 billion deposit to Berkshire Hathaway Energy.

Positive

• Initiation of a competitive sale process for Questar Pipelines targeting year-end 2021.
• Ongoing financial guidance remains unchanged despite the termination of the sale.

Negative

• Termination of the sale due to Federal Trade Commission clearance uncertainties.

RICHMOND, Va., July 12, 2021 /PRNewswire/ -- Dominion Energy (NYSE: D) and Berkshire Hathaway Energy, an affiliate of Berkshire Hathaway Inc. (NYSE: BRK.A), today announced they have agreed to terminate the planned sale of Questar Pipelines to Berkshire Hathaway Energy. The decision is a result of ongoing uncertainty associated with achieving clearance from the Federal Trade Commission under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.  

Termination of the sale, effective July 9, 2021, was a potential outcome provided for in the agreement to sell Questar Pipelines. The decision has no impact on the sale of gas transmission and storage assets to Berkshire Hathaway Energy completed in November 2020. That sale represented approximately 80% of the original transaction value.

Dominion Energy is commencing a competitive process for the sale of Questar Pipelines, with a target close of year-end 2021. 

Today's announcement does not change Dominion Energy's existing financial guidance. Dominion Energy will continue to account for Questar Pipelines as discontinued operations. Dominion Energy intends to enter into a 364-day term loan. The company will use proceeds from the loan to repay the approximately $1.3 billion transaction deposit made by Berkshire Hathaway Energy. That loan is expected to be repaid by year-end 2021 with proceeds from the sale of Questar Pipelines to an alternative buyer.

About Dominion Energy
More than 7 million customers in 16 states energize their homes and businesses with electricity or natural gas from Dominion Energy (NYSE: D), headquartered in Richmond, Va. The company is committed to sustainable, reliable, affordable and safe energy and to achieving net zero carbon dioxide and methane emissions from its power generation and gas infrastructure operations by 2050. Please visit DominionEnergy.com to learn more. 

This release contains certain forward-looking statements with respect to certain future plans concerning the sale of Dominion Energy Questar Pipeline, LLC, and associated entities (the "Q-Pipe Group"), and the repayment of outstanding debt with the proceeds of such sale, which are subject to various risks and uncertainties. Factors that could cause actual results to differ include, but are not limited to: Dominion Energy's ability to enter into an agreement for any future sale of the Q-Pipe Group; the expected timing and likelihood of completion of any such transaction; the risk that Dominion Energy or any potential buyer of the Q-Pipe Group may be unable to obtain any necessary regulatory approvals for the transaction or that required regulatory approvals may delay the transaction; and the risk that any conditions to the closing of any such transaction may not be satisfied.  Other risk factors are detailed from time to time in Dominion Energy's quarterly reports on Form 10-Q and most recent annual report on Form 10-K filed with the Securities and Exchange Commission.  These forward-looking statements speak only as of the date of this press release. Dominion Energy assumes no obligation to provide any revisions to, or update, any projections and forward-looking statements contained in this press release.

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SOURCE Dominion Energy

FAQ

Why was the sale of Questar Pipelines terminated by Dominion Energy and Berkshire Hathaway Energy?

The sale was terminated due to ongoing uncertainties in obtaining clearance from the Federal Trade Commission.

What is the impact of terminating the Questar Pipelines sale on Dominion Energy's financial guidance?

The termination has no impact on Dominion Energy's existing financial guidance.

What steps is Dominion Energy taking after the sale termination of Questar Pipelines?

Dominion Energy is commencing a competitive sale process for Questar Pipelines with a target to close by year-end 2021.

What financial maneuvers is Dominion Energy planning after the sale cancellation?

Dominion Energy intends to enter a 364-day term loan to repay a $1.3 billion transaction deposit made by Berkshire Hathaway Energy.