Dominion Resources Inc. (D-NYSE) has been trying to trim down its focus on more core assets via assets sales and select combinations. This morning the company has enetered into two seperate asset sales in a combined deal worth more than $6.5 Billion.
Loews Corporation (LTR-NYSE) is buying Dominion’s operations in the Permian Basin, Michigan and Alabama for $4.025 billion, including reserves of approximately 2.5 TCFE on Dec. 31, 2006.
XTO Energy Inc. (XTO-NYSE) is buying Dominion’s operations in the Rocky Mountains, Gulf Coast, San Juan Basin and South Louisiana for $2.5 billion; including proved reserves of approximately 1 TCFE on Dec. 31, 2006.
The company says it now has enough data on a post-sale basis for forward investment models. Domonion is internally projecting 2008 fiscal operating earnings per share to come in at $6.00 per share, with 4% to 6% growth thereafter. Here is a site link for its newer 2008 model on a post-sale basis. http://www.dom.com/investors/ir.jsp
XTO is an obvious play, but Loews Corp was a bit of a surprise from an outsider’s viewpoint. Loews does already own LNG storage and pipeline operations, but many were not expecting the company to spend this much to add on to LNG operations.
Jon C. Ogg
June 4, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
