RICHMOND, Va., Sept. 29, 2015 /PRNewswire/ -- Dominion Midstream Partners, LP (NYSE: DM), has closed the previously announced acquisition of a 25.93 percent ownership interest in Iroquois Gas Transmission System, L.P. Dominion Midstream issued approximately 8.6 million common units to affiliates of National Grid plc and New Jersey Resources Corporation to acquire their ownership interests in Iroquois.
Thomas F. Farrell II, chairman, president and chief executive officer of Dominion Resources, Inc. (NYSE: D) and Dominion Midstream GP, LLC, said:
"This acquisition will help Dominion Midstream to achieve best-in-class distribution growth rates without having to drop additional Dominion-held assets into the partnership through the end of 2016. We are also excited that National Grid and New Jersey Resources have joined us as partners in Dominion Midstream."
Approximately 6.8 million units were issued to National Grid, and approximately 1.8 million units were issued to New Jersey Resources. National Grid and New Jersey Resources have agreed to certain transfer restrictions applicable to such units including, with certain exceptions, a general one-year lockup period, and have been granted certain registration rights and piggyback registration rights with respect to future Dominion Midstream equity offerings. No public market issuance of units was made in connection with these transactions.
Iroquois Gas Transmission System, L.P., is a Delaware limited partnership that owns and operates a 416-mile, FERC-regulated natural gas transmission pipeline extending from the Canada-United States border near Waddington, N.Y., through New York and Connecticut to South Commack, N.Y., on Long Island and Hunts Point, N.Y., in the Bronx.
The ownership stake in Iroquois is expected to contribute about $20 million annually in cash flows to Dominion Midstream. The partnership expects that those cash flows and cash flows associated with Dominion Midstream's existing preferred equity interest in Cove Point and ownership of Dominion Carolina Gas Transmission will be sufficient to support annual cash distribution growth at Dominion Midstream at the targeted rate of 22 percent through 2016.
Dominion Midstream has no plans to acquire the 24.72 percent ownership interest in Iroquois currently held by Dominion Gas Holdings, LLC, a wholly owned subsidiary of Dominion Resources.
About Dominion Midstream
Dominion Midstream is a growth-oriented Delaware limited partnership formed by Dominion Resources, Inc., in March 2014 to own, operate, develop and acquire natural gas import, storage, regasification, transportation and related assets. It is headquartered in Richmond, Va. For more information about Dominion Midstream, visit its website at www.dommidstream.com.
This news release includes certain forward-looking information that is subject to various risks and uncertainties. Words such as "expect," "target," "would," "will," "anticipate," "believe," "estimate," "intend," "may," "plan," "predict," "project," "should" and similar terms and phrases are used to identify forward-looking statements. A number of factors that could cause actual results to differ from those in the forward-looking statements are identified in Dominion Midstream's filings with the SEC. You are referred to those discussions for further information. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Any forward-looking statement speaks only as of the date on which it is made, and the company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made.
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SOURCE Dominion Midstream Partners