Dominion Midstream (DM) Hikes Quarterly Cash Distribution By 5%
Zacks Investment Research | Apr 23, 2017 09:58PM ET
Dominion Midstream Partners, LP (NYSE:D) , announced that its board of directors has approved a 5% hike in its quarterly common unit distribution above the fourth-quarter 2016 distribution.
The Raise
The raised distribution is 27.4 cents per common and subordinated unit and has taken the annualized payout to $1.096 per unit. The distribution is expected to be paid on May 15, 2017 to all the unitholders of record as on May 5, 2017.
The partnership declared the last quarterly distribution on Jan 25, 2017.
The Regular Distribution Hikes
Dominion Midstream has been increasing its cash distribution per unit in every quarter since the declaration of first distribution on Jan 26, 2015. Thanks to the regular hikes in cash distribution, the partnership has raised its distribution from 13.9 cents per unit to the present level.
The raise is a part of the partnership’s long-term growth target of 22% hike in annual cash distribution through the decade from 2015 distribution levels of 85 cents.
Acquisition to Support Distribution
In Dec 2016, Dominion Midstream announced that it expanded the natural gas storage and distribution business through the acquisition of Questar Pipeline from Dominion Resources, Inc. (NYSE:D) . The total value of the deal is $1.725 billion, of which the partnership paid $823 million in cash and issued $167 million of common units and $300 million of convertible preferred units to Dominion. (Read More: Zacks Investment Research
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