PITTSBURGH, March 2 /PRNewswire-FirstCall/ -- Equitable Resources, Inc.
(NYSE: EQT) today announced that it has entered into a definitive agreement to
acquire Dominion Resources' natural gas distribution and midstream assets in
Pennsylvania and its natural gas distribution assets in West Virginia for
approximately $970 million, subject to adjustments, in a cash transaction.
The acquisition will add approximately 475,000 customers, 33 Bcf of storage,
936 miles of gathering pipelines and 466 miles of high pressure transmission
lines to EQT's current natural gas operations in southwestern Pennsylvania and
West Virginia. These assets increase the number of customers by 173%, total
storage capacity by 60%, gathered volume by 40% and miles of transmission by
42%.
"The acquisition is consistent with our growth strategy," said Murry S.
Gerber, Chairman, President and Chief Executive Officer of Equitable
Resources. "This transaction will be accretive to earnings per share and will
earn a return in excess of our cost of capital."
"This acquisition is a great strategic fit with our existing operations
given the geographic and operational profile of the combined asset base," said
Randall L. Crawford, president of Equitable Utilities. "We will be building
the scale and scope of our regulated operations in areas with overlapping
service territories and familiar ratemaking environments. Just as important,
we are adding assets that complement our midstream growth initiatives."
The transaction requires approvals from the Pennsylvania Public Utility
Commission and the West Virginia Public Service Commission and is subject to
Hart-Scott-Rodino review. Equitable expects to receive the required approvals
by the end of 2006. The Company will finance the transaction through a
combination of equity and debt issuances and possibly asset sales.
Equitable will host a teleconference with security analysts beginning at
10:30 a.m. Eastern Time today. Equitable's teleconference with security
analysts will be simulcast live via the Equitable Resources website,
http://www.eqt.com, and will be available for replay on the website for seven days.
Equitable Resources is an integrated energy company with emphasis on
Appalachian area natural gas supply, transmission and distribution. For
information please visit http://www.eqt.com.
Forward-Looking Statements
Disclosures in this press release contain forward-looking statements.
Statements that do not relate strictly to historical or current facts are
forward-looking. Without limiting the generality of the foregoing, forward-
looking statements contained in this press release specifically include the
expectations of plans, strategies, objectives and growth and anticipated
financial and operational performance of the Company and its subsidiaries,
including guidance regarding the Company's drilling program, production
volumes, earnings, and capital expenditure program. A variety of factors
could cause the Company's actual results to differ materially from the
anticipated results or other expectations expressed in the Company's forward-
looking statements. The risks and uncertainties that may affect the
operations, performance and results of the Company's business and forward-
looking statements include, but are not limited to, the following:
- the substance and timing of regulatory actions and proceedings
- the Company's success in implementing acquisition or divestiture
activities
- the risk factors set forth in Item 1A of the Company's annual report on
Form 10-K for the year ended December 31, 2005
- other factors discussed in other reports filed by the Company with the
Securities and Exchange Commission from time to time.
Any forward-looking statement speaks only as of the date on which such
statement is made and the Company undertakes no obligation to correct or
update any forward-looking statement, whether as a result of new information,
future events or otherwise.
SOURCE Equitable Resources, Inc.
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Related links:
http://www.eqt.com
CONTACT:
Media, Dave Spigelmyer, +1-412-553-5739, or
Patricia Kornick, +1-412-553-5738, or Analysts, Patrick Kane,
+1-412-553-7833, all of Equitable Resources, Inc.
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