Dominion Midstream Partners Completes Acquisition of Questar Pipeline

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Dominion Midstream Partners closed on the transaction to acquire Questar Pipeline, LLC, from Dominion Resourcesfor $1.725 billion. As part of the transaction, Dominion Midstream paid $823 million in cash to Dominion, issued $167 million of common units and $300 million of convertible preferred units to Dominion, and assumed Questar Pipeline’s $435 million of outstanding indebtedness.

Cash sources included a previously announced $360 million underwritten public common unit offering, a $137.5 million private placement of common units, and $500 million of convertible preferred units placed with a group of institutional investors led by Stonepeak Infrastructure Partners.

“Today’s announcement once again demonstrates Dominion’s and Dominion Midstream’s ability to execute complementary acquisitions to achieve best-in-class distribution growth at Dominion Midstream while providing cash to Dominion to pay down debt,” said Thomas F. Farrell II, chairman, president and chief executive officer of Dominion and Dominion Midstream.

The addition of Questar Pipeline – which owns and operates Federal Energy Regulatory Commission-regulated natural gas transmission and storage assets in Colorado, Utah and Wyoming – is expected to be immediately accretive to Dominion Midstream’s distributable cash flow per unit. This transaction supports the partnership’s intention to grow distributions to unitholders at a compounded annual growth rate of 22% per year through the end of the decade.

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