Natural gas-focused energy company Questar Corp.’s (NYSE:STR) proposed merger with Virginia-based Dominion Resources, Inc. (NYSE:D) was recently okayed by the Wyoming Public Service Commission. The approval was subject to certain terms and conditions of an agreed settlement stipulation.
The duo crossed a major regulatory hurdle in August when they received consent from the Public Service Commission of Utah. The approval from Wyoming Public Service Commission was the final regulatory permit required the companies. The transaction is now expected to be completed on Sep 16, 2016.
The entity formed by the combination of Questar Corp and Dominion Resources will serve about 2.5 million electric utility customers and 2.3 million gas utility customers across seven states. Moreover, the integrated energy company will be operating more than 14,400 miles of natural gas transmission and generate approximately 25,700 megawatts of electricity.
Post merger, Questar will operate as a wholly owned subsidiary of Dominion Resources and maintain its significant authority, local management arrangement and headquarters in Richmond, with its Western operations based in Salt Lake City.
QUESTAR Price
Dominion Resources is a major energy company engaged in regulated and non-regulated electricity distribution, generation and transmission businesses. In addition, it sells electricity at wholesale prices to rural electric cooperatives, municipalities and wholesale electricity markets.
Questar is a natural gas-focused energy company with three principal subsidiaries – Wexpro Company, Questar Pipeline, and Questar Gas Company.
Both Questar and Dominion Resources currently carry a Zacks Rank #3 (Hold), which implies that these companies will perform in line with the broader U.S. equity market over the next one to three months.
Some better-ranked players from the broader energy sector include NGL Energy Partners LP (NYSE:NGL) and Matador Resources Company (NYSE:D) . Both these stocks sport a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
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DOMINION RES VA (D): Free Stock Analysis Report
QUESTAR (STR): Free Stock Analysis Report
NGL ENERGY PART (NGL): Free Stock Analysis Report
MATADOR RESOURC (MTDR): Free Stock Analysis Report
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