Dominion Midstream Partners LP, a natural gas-focused limited partnership within Dominion Resources Inc. (D), filed to raise $400 million in an initial public offering in the U.S.
The figure is a placeholder used to calculate fees and may change. Barclays Plc and Citigroup Inc. are managing the offering. Dominion Midstream plans to apply to list its units on the New York Stock Exchange under the symbol DM, according to a filing today with the Securities and Exchange Commission.
Dominion Resources, headquartered in Richmond, Virginia, will be the largest shareholder in the unit after the offering. The company, with a $41.3 billion market value, provides electricity and natural gas services to customers in 15 states, the filing shows. Dominion Midstream will receive preferred equity interest from Dominion’s Cove Point, which owns a storage facility in Lusby, Maryland, and gas pipeline that runs about 136 miles (219 kilometers) in the region.
Cove Point’s customers include BP Plc, Royal Dutch Shell Plc and Statoil ASA, which pay annual fees to use the pipeline, according to the filing. Cove Point posted operating revenue of $343.5 million last year, a 17 percent jump from 2012, the filing shows. Its net income attributable to Dominion Midstream last year was $50 million.
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