By Jim Polson
Dominion Resources Inc., the third-largest U.S. utility owner and parent of Dominion East Ohio, said Thursday it will form a master-limited partnership for natural gas assets next year that may generate as much as $2 billion annually in earnings.
Initial holdings would include the Cove Point liquefied natural gas terminal in Maryland and Dominion’s stake in Blue Racer Midstream LLC, a joint venture in Ohio’s Utica Shale, Chief Executive Officer Thomas Farrell said at a New York conference sponsored by Barclays Plc. The partnership may generate as much as $1 billion of earnings before interest, taxes, depreciation and amortization annually, he said.
U.S. partnerships don’t pay corporate income tax and have more cash available to pay holders of units, which are like shares.