Dominion Energy Inc. And Subsidiaries Outlooks Revised To Positive On Planned Asset Sale And Cancelled Pipeline Project

Dominion Energy Inc. (DEI) announced that it has entered into a definitive agreement to sell nearly all of its gas transmission and storage assets to Berkshire Hathaway Energy Co. for $9.745 billion. The sale of these businesses results in reduction of debt of about $5.7 billion. We expect Dominion to use the remaining proceeds to primarily buy back shares. At the same time the company also announced that it was cancelling the Atlantic Coast Pipeline (ACP) due to ongoing delays and increasing cost uncertainty. This divestiture and cancellation of the higher-risk midstream businesses highlights DEI's strategic shift to the lower-risk regulated utility operations. We are revising our outlook on DEI and its subsidiaries, Virginia Electric&Power Co. (VEPCO), Questar

...July 7, 2020 - Dominion Energy Inc. (DEI) announced that it has entered into a definitive agreement to sell nearly all of its gas transmission and storage assets to Berkshire Hathaway Energy Co. for $9.745 billion. - The sale of these businesses results in reduction of debt of about $5.7 billion. We expect Dominion to use the remaining proceeds to primarily buy back shares. - At the same time the company also announced that it was cancelling the Atlantic Coast Pipeline (ACP) due to ongoing delays and increasing cost uncertainty. - This divestiture and cancellation of the higher-risk midstream businesses highlights DEI's strategic shift to the lower-risk regulated utility operations. - We are revising our outlook on DEI and its subsidiaries, Virginia Electric & Power Co. (VEPCO), Questar Gas Co. (QGC), Dominion Energy Ohio (DEO), Dominion Energy South Carolina Inc. (DESC), SCANA Corp. and Public Service Co. of North Carolina Inc. (PSNC), to positive from stable. - At the same time we are...

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