Dominion Midstream Partners LP (NYSE: DM) has acquired Dominion Carolina Gas Transmission LLC from Dominion Resources Inc. (NYSE: D) for $495 million.
Dominion Carolina owns about 1,500 miles of pipeline in South Carolina and Georgia.
Richmond, Virginia-based Dominion Midstream produces and transports energy. The company has power generation and natural gas operations in 13 states.
The company paid by issuing 200 million limited partnership units to seller Dominion and entering into a two-year note with Dominion for the remaining $295 million.
The transaction comes as many dealmakers are looking to buy oil assets at a discount. Recent oil and gas deals include Warburg Pincus' up to $500 million investment in oil startup Independence Resources Management, also announced April 1, and EnLink Midstream Partners LP's (NYSE: ENLK) and EnLink Midstream LLC's (NYSE: ENLC) deal for Coronado Midstream Holdings LLC.
For more on the energy sector, see Investors Flow Into Oil & Gas and Low Energy Bills May Boost M&A in Consumer Goods and Retail Sector.