The merger of Salt Lake City’s Questar Corp. and Dominion Resources Inc. of Richmond, Virginia, is complete. The final hurdle for the transaction that was announced earlier this year, approval from the Wyoming Public Service Commission, came on Sept. 14 and the two companies announced on Sept. 16 that the deal was done.
The merger of Salt Lake City’s Questar Corp. and Dominion Resources Inc. of Richmond, Virginia, is complete. The final hurdle for the transaction that was announced earlier this year, approval from the Wyoming Public Service Commission, came on Sept. 14 and the two companies announced on Sept. 16 that the deal was done.
Word came in the form of an announcement from Thomas F. Farrell II, chairman, president and chief executive officer of Dominion. In a release, Farrell said, “We are pleased to complete our strategic combination with Questar, and to continue serving our Questar customers in the West with the same commitment and dedication to safety and excellence to which they — and our customers along the eastern seaboard and Midwest — are accustomed. Questar’s high-performing regulated businesses also improve our geographic diversity and enhance our balance between electric and gas operations.”
The combined operations of Questar and Dominion form one of the nation’s largest combined electric and natural gas energy companies. The combined company includes:
• 2.5 million electric utility customer accounts in Virginia and North Carolina;
• 2.3 million natural gas utility customer accounts in Idaho, Ohio, Utah, West Virginia and Wyoming;
• 1.3 million retail energy and related services customer accounts in 13 states;
• 14,400 miles of natural gas gathering, storage and transmission pipeline and nearly 51,000 miles of gas distribution pipeline;
• 6,500 miles of electric transmission lines and 57,300 miles of electric distribution lines;
• 25,700 megawatts of electric production in 11 states; and
• More than a trillion cubic feet of natural gas storage.
Questar’s “hub of the Rockies” system is a principal gateway for gas supply to western states. Dominion expects that demand on Questar’s pipeline system will rise as western states rely increasingly on low-carbon, natural gas-fired generation to comply with potentially stringent federal clean air requirements and to support state-mandated renewable standards. Questar’s gas distribution operations benefit from being located in one of the country’s fastest-growing regions.
“Questar’s businesses are ideally located to take advantage of the growth opportunities due to the changing energy landscape, benefiting the economies of the states in which they operate,” Farrell said.
Ronald W. Jibson, former chairman, president and chief executive officer of Questar, has retired and been elected to the board of Dominion. Craig C. Wagstaff has been named president of Dominion Questar, the new local identity of Questar. He will lead Dominion’s western natural gas operations and be responsible for all current Questar operating companies.
“From our initial meetings with Dominion leaders, it was evident from our similar strategies, cultures, values and employee and safety focus that Dominion was an excellent company to combine with to move us into the future,” said Jibson. “After working through a very smooth merger, I’m more confident than ever that this opportunity to combine with one of the nation’s best energy companies will benefit Questar customers, employees, shareholders and the communities we serve.”
“Ron Jibson will bring to Dominion's board more than three decades of expertise in the energy infrastructure field, with a strong reputation for providing excellent customer service, protecting the environment and operating safely and efficiently,” Farrell said. We look forward to adding Ron's outstanding capabilities, intellect and insights to our board.”
Under the terms of the merger agreement, as of market close on Sept. 16, each Questar share has been canceled and shareholders are to receive $25 per share of common stock — about $4.4 billion in total. Dominion has also assumed approximately $1.5 billion of Questar’s outstanding debt. Questar shareholders of record as of the close of business Sept. 16 will also receive a pro-rated dividend of 7.018 cents per share of common stock, Which was paid last Monday.
Questar Corp. common stock cease trading on the New York Stock Exchange prior to market open on Sept. 19.