Dominion Energy announced that it has executed definitive agreements to divest its interests in three merchant electric generation assets for total proceeds of $1.32 billion.

Proceeds will be used to reduce parent-level debt

The interests being sold in two separate transactions include:

• 100 percent interest in the Fairless Power Station, a 1,240-megawatt combined-cycle gas turbine located in Pennsylvania;

• 100 percent interest in the Manchester Street Power Station, a 468-megawatt combined-cycle gas turbine located in Rhode Island; and

• 25 percent interest in the Catalyst Old River Hydroelectric Limited Partnership, which owns a 192-megawatt hydroelectric generating station in Louisiana.

Fairless and Manchester are being sold to an affiliate of Starwood Energy for cash consideration of approximately $1.23 billion, which includes no working capital.

The partial interest in Catalyst Old River Hydroelectric is being sold for cash consideration of approximately $90 million.

Both transactions are expected to close by year-end 2018.

Thomas F. Farrell, II, Dominion Energy chairman, president and chief executive officer, said: "We are pleased with these results from our non-core asset sales. The total proceeds exceed the midpoint of our previously issued guidance range of $1.0 to $1.5 billion. These actions demonstrate our commitment to the company's credit profile and represent the successful completion of the credit improvement initiatives that we announced in March."

Based on strong interest from third parties, Dominion Energy will continue to evaluate its 50 percent interest in the Blue Racer Midstream joint venture though additional non-core asset sale proceeds are not required to achieve Dominion Energy's credit objectives.

Tags:
M&A   Dominion Energy   Dominion   Starwood Energy  

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