Dominion closes sales of two operations |
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Tue, 31 Jul 2007 21:58
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RICHMOND, Va. (AP) - Gas and electric company Dominion Resources Inc. said Tuesday it closed a previously announced $6.5 billion deal to sell two exploration and production operations.The sale is part of the company's plan to divest most of its natural-gas and oil reserves and refocus on its power generation and energy distribution, transmission, storage and retail businesses.Loews Corp. paid $4 billion for Dominion's operations in Michigan, Alabama and the Permian Basin of Texas. These operations include reserves of approximately 2.5 trillion cubic feet equivalent of proved reserves.XTO Energy Inc. paid $2.5 billion for operations in the Rocky Mountains, San Juan Basin and the Gulf Coast region, which include approximately 1 trillion cubic feet equivalent of proved reserves.With these sales, Dominion has closed on more than 85 percent of the natural gas and oil reserves the company plans to sell. Funds will be used to repurchase stock under the company's outstanding tender offer that expires on Aug. 7.In June, Dominion said it would sell the other 15 percent, approximately 780 billion cubic feet equivalent of reserves, to Linn Energy LLC for approximately $2.05 billion. That sale is expected to close by the end of the third quarter. If completed, Dominion will have sold about 5.5 trillion cubic feet equivalent of proved reserves for approximately $13.9 billion.Dominion shares rose 32 cents Tuesday to close at $84.22.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Dominion sells E&P assets to Linn Energy 