Dominion Power 2004 Annual Report Download - page 23

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D 2004/Page 21
In the past, we’ve had to take on
earnings dilution by issuing new equity
to fund new acquisitions. But last year,
we sold forward 10 million shares
of Dominion’s common stock. It was a
unique transaction that enables us to
draw down the capital and absorb
the share dilution only when and if it’s
needed. Some call it “equity on
demand.”
Hit: Well-Timed Sale of Assets
to Raise Funds
In early 2004, we sold interests in
reserves representing about 83 billion
cubic feet of future natural gas produc-
tion from both onshore and offshore
wells for about $413 million. In industry-
speak, it’s called a “volumetric produc-
tion payment.” In plain English, it means
we sold rights to a portion of our
reserves for cash up front and will deliver
the gas to the buyer as it is produced
over four years. The transaction allows
us to monetize a portion of our reserves,
but keep control of the operating rights
to the wells and their future production.
In late 2004, we raised $476 million
through the sale of select natural
gas and oil properties in British
Columbia. Proceeds will help reduce
In early 2004, we
sold interests in
reserves represent-
ing about 83 billion
cubic feet of
future natural gas
production from
both onshore and
offshore wells for
about $413 million.
Gas Transmission Pipelines & Storage/
Electric Transmission Lines
As of Year End
Natural Gas
Transmission Pipelines
Natural Gas
Transmission Pipelines
(Partnership)
Natural Gas
Underground Storage Pools
Dominion Cove Point LNG Facility
Electric Transmission Lines
(Bulk delivery)