MoFo Advises Southwest Gas on $2 Billion Acquisition of Questar Pipeline

Morrison & Foerster advised Southwest Gas Holdings, Inc. (NYSE: SWX) in connection with its agreement to acquire Questar Pipeline, consisting of Dominion Energy Questar Pipeline, LLC, its subsidiaries, and certain associated affiliates, including Overthrust Pipeline, White River Hub, and Questar Field Services from Dominion Energy, Inc. (NYSE: D). 

Under the terms of the transaction, Southwest Gas Holdings will acquire 100% of Questar Pipeline for approximately $2 billion (including the assumption of $430 million in debt) in cash. The transaction is expected to close in Q4 of 2021.

Southwest Gas Holdings' President and CEO John P. Hester said, “The acquisition of Questar Pipeline is a milestone moment for the Company that we believe will provide significant financial and strategic benefits to our company, shareholders, employees and partners…This acquisition accelerates our energy transition strategy by strengthening our ability to provide affordable, low carbon energy to customers while positioning us to transport renewable natural gas, responsibly sourced gas, and eventually, hydrogen and CO2.”

Southwest Gas Holdings engages in the business of purchasing, distributing, and transporting natural gas, and providing comprehensive utility infrastructure services across North America. The acquisition of Questar Pipeline, an essential Rocky Mountain energy hub with 2,160 miles of highly contracted, FERC-regulated interstate natural gas pipelines providing transportation and underground storage services in Utah, Wyoming, and Colorado, will expand Southwest Gas Holdings’ regulated business with strong cash flow generating assets, and will strengthen the company’s financial profile.

MoFo also recently advised Southwest Gas Holdings’ subsidiary, Centuri Group, on its $855 million acquisition of Riggs Distler.

The MoFo team advising Southwest Gas Holdings was led by San Francisco corporate partner and global M&A co-chair Brandon C. Parris, together with Palo Alto M&A partner Michael Krigbaum.