Enbridge To Buy Three Natural Gas Distribution Companies From Dominion Energy For About $14.0 Bln

(RTTNews) - Enbridge Inc. (ENB, ENB.TO) said that it has entered into three separate definitive agreements with Dominion Energy Inc. (D) to acquire the East Ohio Gas Company, Questar Gas Company, and its related Wexpro companies, and Public Service Company of North Carolina Inc. for an aggregate purchase price of US$14.0 billion or C$19 billion.

The purchase price comprised of US$9.4 billion of cash consideration and US$4.6 billion of assumed debt.

Enbridge reaffirmed its 2023 financial guidance.

The acquisitions are expected to close in 2024, subject to the satisfaction of customary closing conditions, including the receipt of certain required U.S. federal and state regulatory approvals.

In a separate press release, Dominion Energy confirmed that it agreed to sell its three natural gas distribution companies to Enbridge for about $14.0 billion.

Dominion Energy expects it will use total after-tax proceeds of $8.7 billion to reduce parent debt in addition to the conveyance of $4.6 billion of operating company debt.

Dominion noted that the assets included in the transactions will be reclassified as discontinued operations for GAAP reporting and excluded from operating earnings for the third-quarter and full-year 2023.

The company expects a decrease of $0.05 to $0.06 per share from the previously announced third-quarter operating earnings guidance range of $0.72 to $0.87 per share for the removal of such assets, which excludes any potential impact from the use of sales proceeds. The company has not provided full-year 2023 earnings guidance.