The deal with Eni Petroleum Co. includes about 967 billion cubic feet equivalent of natural gas and oil reserves in the
AdvertisementThe sale is part of the
“Dominion has been extremely successful in the E&P (exploration and production) operations, but that success has not been fully reflected in our share price,” chief executive Thomas F. Farrell II said in the statement announcing the deal, which is expected to be completed on July 2.
Shares of Eni rose 0.4 percent to 24.44 euros ($33.34) in
Shelby G. Tucker, an analyst with Banc of America Securities, said the sale price for the
“Thus, if the sale price for the remainder of the E&P assets is in line with our estimates, this could add $2/share to Dominion"s valuation,” Tucker said Monday in a research report.
Dominion said in Monday"s statement that it is continuing efforts to sell its onshore oil and natural gas holdings in the
Dominion said last November that it planned to sell most of its energy and production assets by mid-2007 in an attempt to cut earnings volatility, reduce risk and maintain or improve the company"s credit rating. Dominion"s oil and natural gas holdings are managed by its Dominion Exploration & Production Inc. subsidiary, based in
After selling off most of its E&P businesses, Dominion said it expects earnings per share to grow 4 percent to 6 percent annually.
Eni"s acquisition will increase its
The deal is the latest in a series of Eni"s acquisitions this year in
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