Dominion to focus on power; to sell gas assets to Linn Energy

02 July 2007

Carrying forward its plans to restructure by divesting its exploration assets in favour of the power business, Dominion Resources Inc. today said that it would sell its mid-continent natural gas assets to Linn Energy LLC for $2.05 billion.

With this move, Dominion has now sold or agreed to sell all of the natural gas and oil exploration and production operations it plans to divest. The company is retaining its Appalachian gas assets.

Last November, the Richmond, Virginia-based company said it would pursue the sale of most of its exploration and production assets as part of a restructuring. Prior to the Mid-Continent deal, Dominion had agreed to sell $11.84 billion of those assets.

The sale of the Mid-Continent operations, which are primarily in Oklahoma, is expected to close by the end of the third quarter. The rest of Dominion''s asset sales have closed or are scheduled to close by that time, the company said.

Dominion, one of the nation''s largest energy producers, including 26,500 megawatts of power generation, said it would use the proceeds from the sales to pay down debt and repurchase common stock.