Dominion has completed two separate sales of U.S. onshore natural gas and oil operations to a new subsidiary of Loews Corp. and to XTO Energy Corp. for a total of $6.5 billion. The two sales were announced in June (see Daily GPI, June 5).
HighMount Exploration & Production LLC, a newly formed subsidiary of Loews Corp., purchased Dominion’s operations in the Permian Basin, Michigan and Alabama for about $4 billion. These operations include about 2.5 Tcfe of reserves.
Fort Worth, TX-based XTO purchased Dominion’s Rocky Mountains, San Juan Basin and Gulf Coast operations for $2.5 billion. These operations include about 1 Tcfe of proved reserves.
Proceeds from the sales will be used by Dominion to repurchase stock under the company’s outstanding tender offer, which expires on Aug. 7. With the sales completed, Dominion has sold more than 85% of the oil and gas reserves it planned to sell. Dominion in June agreed to sell the remaining 15% of its reserves, which total about 780 Bcfe, to Linn Energy LLC for $2.05 billion (see Daily GPI, July 3). The sale is expected to close by the end of September.
When all of its asset sales are completed, Dominion will have sold about 5.5 Tcfe for about $13.9 billion. The company is retaining its Appalachian assets, which include about 1 Tcfe of proved reserves.
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