Dominion Energy Sells Gas Unit to Enbridge for $14B
Ticker: D · Form: 8-K · Filed: May 6, 2024 · CIK: 715957
Sentiment: neutral
Topics: divestiture, acquisition, energy, regulatory-approval
Related Tickers: ENB
TL;DR
DOM selling gas biz to ENB for $14B, closing Q4 2024.
AI Summary
Dominion Energy, Inc. announced on May 6, 2024, that it has entered into a definitive agreement to sell its Gas Distribution business to Enbridge Inc. for approximately $14 billion. This transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions and regulatory approvals.
Why It Matters
This significant divestiture allows Dominion Energy to focus on its regulated utility electric generation and electric transmission businesses, potentially leading to a more streamlined and focused operational strategy.
Risk Assessment
Risk Level: medium — The transaction is subject to regulatory approvals and customary closing conditions, which introduce a degree of uncertainty until completion.
Key Numbers
- $14.0B — Sale Price (Total consideration for the Gas Distribution business sale to Enbridge.)
- Q4 2024 — Expected Closing (Anticipated timeframe for the completion of the transaction.)
Key Players & Entities
- Dominion Energy, Inc. (company) — Seller
- Enbridge Inc. (company) — Buyer
- $14 billion (dollar_amount) — Sale price of Gas Distribution business
- May 6, 2024 (date) — Announcement date
- fourth quarter of 2024 (date) — Expected closing period
FAQ
What is the primary reason for Dominion Energy selling its Gas Distribution business?
Dominion Energy is selling its Gas Distribution business to focus on its regulated utility electric generation and electric transmission businesses.
Who is the buyer of Dominion Energy's Gas Distribution business?
Enbridge Inc. is the buyer of Dominion Energy's Gas Distribution business.
What is the total value of the transaction?
The definitive agreement is for approximately $14 billion.
When is the transaction expected to close?
The transaction is expected to close in the fourth quarter of 2024.
What are the conditions for the closing of the sale?
The sale is subject to customary closing conditions and regulatory approvals.
Filing Stats: 1,081 words · 4 min read · ~4 pages · Grade level 13.4 · Accepted 2024-05-06 08:12:32
Key Financial Figures
- $1,000 — ferred Stock, without par value, with a $1,000 liquidation preference per share (the S
- $997.50 — eferred Shares), at a purchase price of $997.50 per share, plus accrued and unpaid divi
- $800 million — Series B Preferred Shares (representing $800 million in aggregate liquidation preference) is
Filing Documents
- d779874d8k.htm (8-K) — 27KB
- 0001193125-24-131493.txt ( ) — 144KB
- d-20240506.xsd (EX-101.SCH) — 3KB
- d-20240506_lab.xml (EX-101.LAB) — 17KB
- d-20240506_pre.xml (EX-101.PRE) — 11KB
- d779874d8k_htm.xml (XML) — 3KB
FORWARD-LOOKING STATEMENTS
FORWARD-LOOKING STATEMENTS This report contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding Dominion Energy. The statements relate to, among other things, expectations concerning the Notes Offering and the commencement and settlement of, and consideration to be paid in, the Tender Offer, which are subject to various risks and uncertainties. Factors that could cause actual results to differ include, but are not limited to, the ability to satisfy the conditions to the Tender Offer, including the settlement of the Notes Offering, and risks and uncertainties relating to the commencement of the Tender Offer. Other risk factors relating to Dominion Energy's business more generally are detailed from time to time in Dominion Energy's annual report on Form 10-K and quarterly reports on Form 10-Q filed with the SEC. These forward-looking statements speak only as of the date of this Form 8-K. Dominion Energy assumes no obligation to provide any revisions to, or update, any projections and forward-looking statements contained in this report. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. DOMINION ENERGY, INC. Registrant /s/ David M. McFarland Name: David M. McFarland Title: Vice President – Investor Relations and Treasurer Date: May 6, 2024