Dominion Energy To Divest 50% Interest In Blue Racer Midstream JV – Quick Facts
While reporting its third-quarter financial results on Thursday, Dominion Energy Inc. (D) said it has executed a definitive agreement to divest its 50 percent interest in the Blue Racer Midstream joint venture to First Reserve and affiliated investment funds for total consideration of up to $1.5 billion.
The total consideration of $1.5 billion includes $1.2 billion of cash consideration and up to $300 million in earn-out payments that would be payable from 2019 through 2021 based on Blue Racer Midstream’s performance.
The transaction is expected to close by year-end 2018 and initial proceeds will be used to reduce parent-level debt.
Goldman Sachs & Co acted as financial advisor to Dominion Energy and Troutman Sanders as legal counsel.
“Blue Racer Midstream is a high-quality business with an extremely capable management team. However, this investment has become non-core to Dominion Energy as we continue to focus on regulated energy infrastructure,” said Thomas Farrell, chairman, president and chief executive officer of Dominion Energy.
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