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Wednesday, 07 January, 2009, 22:40 GMT | more >>

Dominion agrees sale package



By Upstream staff 

Dominion Resources said today it has agreed to sell most of its gas and oil exploration and production operations for about $6.5 billion, as part of its plan to focus on its power business.

Loews will pay about $4.03 billion for Dominion's gas operations in the Permian basin in Texas as well as properties in Michigan and Alabama, while XTO Energy will pay about $2.5 billion for the operations in the Rocky Mountains, Gulf coast, San Juan basin and Louisiana.

These operations include 3.51 trillion cubic feet equivalent of proven natural gas and oil reserve as of 31 December 2006.

Dominion said proceeds from the widely expected sales are being earmarked for about $3.2 billion to $3.5 billion in debt reduction, with the remainder planned to go to repurchasing common stock.

Dominion also said it now expects 2008 operating earnings of $6 or more per share, Reuters reported.


Monday, 04 June, 2007, 12:16 GMT  | last updated: Monday, 04 June, 2007, 12:19 GMT

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