Dominion Will Spin Off Cove Point LNG Plant + Blue Racer as MLP

Yesterday, the day after Dominion Resources learned of the approval from the Dept. of Energy for their proposed LNG export facility at Cove Point, MD, Dominion’s CEO Thomas Farrell announced that Dominion would spin off the new LNG facility along with their share in the Blue Racer Midstream joint venture in Ohio into a master limited partnership (MLP). An MLP is a special kind of company structure that issues “units” instead of shares of stock. MLPs are set up by the government specifically for the natural resources/mining industry–usually for oil and gas companies.

MLP units are traded on public securities exchanges combining the tax benefits of a limited partnership with the liquidity of publicly traded securities. Dominion’s MLP announcement caused its own shares of stock to reach a record high yesterday…

Please Login to view this content. (Not a member? Join Today!)
Password Reset
Please enter your e-mail address. You will receive a new password via e-mail.