Source: Dominion Resources, Inc.; Cove Point LNG Facility.
Dominion Resources, Inc. (D 0.89%) announced today that its midstream subsidiary has officially filed for limited partnership status.
Dubbed Dominion Midstream Partners, LP, the recently formed company will allow Dominion Resources to take advantage of tax breaks on its pipeline and storage assets, as well as rebalance finances across its two entities.
Spectra Energy Corp. underwent a similar process when it formed Spectra Energy Partners, LP in 2007 to keep its natural gas earnings as profitable as possible. In Dominion Resources, Inc.'s case, the limited partnership will own its natural gas infrastructure assets, including its liquefied natural gas (LNG) import, storage, regasification, and transportation assets at its Cove Point facility in Maryland.
According to its SEC filing, Dominion Resources hopes to raise around $400 million from its limited partnership IPO, although share numbers and prices have yet to be announced. If approved, the new limited partnership will trade on the New York Stock Exchange with the ticker "DM." Dominion Resources, Inc. will remain the majority shareholder.
