Dominion Midstream Partners LP (NYSE: DM) has acquired Dominion Carolina Gas Transmission LLC from Dominion Resources Inc. (NYSE: D) for approximately $495 million. Dominion Midstream is issuing approximately $200 million of limited partnership units to Dominion and has entered into a two-year note with Dominion for the remaining $295 million in transaction consideration.
The addition of Dominion Carolina Gas Transmission is expected to be immediately accretive to Dominion Midstream's distributed cash flow per unit. This transaction supports the partnership's intention to grow distributions to unitholders at a compounded annual growth rate of about 22% per year through the end of the decade.
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.