This Monday Dominion Resources Inc, the noted Gas and electric company said that it will sell all its U.S. onshore oil and gas exploration and production operations at $6.5 billion in two transactions.
Dominion’s operations in Michigan, Alabama and the Permian Basin of Texas will be bought by the Loews Corp. at $4.03 billion.
On the other hand, Dominion’s operations in the Rocky Mountains, Gulf Coast, New Mexico’s San Juan Basin and South Louisiana will be bought by the XTO Energy Inc. of Fort Worth, Texas at $2.5 billion.
Both the operations comprise of approximately 3.51 trillion cubic feet which will be equal to the natural gas and oil reserves. It is being expected that deals will be closed by August.
Lowes is New York based and owner of CNA Financial Corp., the tobacco company Lorillard Inc., Loews Hotels and the watchmaker Bulova Corp. It had also been the owner of CBS television network.
Earlier Dominion quoted to concentrate mainly on its power generation and energy distribution, transmission, storage and retail businesses. The entire process of divesting the Mid-Continent Basin operation and would commence by July. On the other hand, company has also reiterated their plans of retaining their Appalachian operations.
Due to divestitures, Dominion is expecting to generate operating earnings at $6 per share in the year 2008.
Image:earthtimes
Via:msnbc
