Dominion Closes on Two Onshore E&P Sales for $6.5 Billion
31 Julho 2007 - 4:15PM
PR Newswire (US)
-- Proved reserves of 3.51 Tcfe sold to Loews, XTO RICHMOND, Va.,
July 31 /PRNewswire-FirstCall/ -- Dominion (NYSE:D) announced today
that it has closed on two separate sales of U.S. onshore natural
gas and oil exploration and production operations for a total of
approximately $6.5 billion. These operations include 3.51 trillion
cubic feet equivalent (Tcfe) of proved natural gas and oil reserves
as of Dec. 31, 2006. In the transactions completed today: --
HighMount Exploration & Production LLC, a newly formed
subsidiary of Loews Corporation (NYSE:LTR), purchased Dominion's
operations in the Permian Basin, Michigan and Alabama for
approximately $4.0 billion. These operations include reserves of
approximately 2.5 Tcfe on Dec. 31, 2006. -- XTO Energy Inc.
(NYSE:XTO) purchased Dominion's operations in the Rocky Mountains,
San Juan Basin and the Gulf Coast region for approximately $2.5
billion. These operations include proved reserves of approximately
1 Tcfe on Dec. 31, 2006. Proceeds from the sales will be used to
repurchase stock under the company's outstanding tender offer that
expires on Aug. 7, unless extended. With these sales, Dominion has
closed on more than 85 percent of the natural gas and oil reserves
the company plans to sell. In June, Dominion reached an agreement
to sell the other 15 percent, approximately 780 billion cubic feet
equivalent (Bcfe), to Linn Energy, LLC for approximately $2.05
billion. That sale is expected to close by the end of the third
quarter 2007, subject to customary closing conditions and
adjustments. When it is completed, Dominion will have sold about
5.5 Tcfe for approximately $13.9 billion. As previously announced,
Dominion will retain its Appalachian E&P operations, which
include approximately 1 Tcfe of proved reserves as of Dec. 31,
2006. Those operations are lower risk and fit well strategically
with Dominion's natural gas gathering, pipeline and storage system.
Dominion was advised in the two sales announced today by the
investment banking firms of JPMorgan, Lehman Brothers and Juniper
Advisory L.P. The company's legal advisers were BakerBotts LLP and
McGuireWoods LLP. Dominion is one of the nation's largest producers
of energy, with a portfolio of more than 26,500 megawatts of
generation and 7,800 miles of natural gas transmission pipeline.
Dominion also owns and operates the nation's largest underground
natural gas storage system with about 960 billion cubic feet of
storage capacity and serves retail energy customers in 11 states.
For more information about Dominion, visit the company's Web site
at http://www.dom.com/ . DATASOURCE: Dominion CONTACT: Media, Ryan
Frazier, +1-804-819-2521, , or Mark Lazenby, 804-819-2042, , or
Analysts, Greg Snyder, +1-804-819-2383, , or Fiona McCarthy,
+1-804-819-2447, , all of Dominion Web site: http://www.dom.com/
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