The board of directors of Dominion Midstream GP LLC, the general partner of Dominion Midstream Partners LP, has announced that it is targeting an average compounded annual growth rate of 22% for its cash distributions from 2015 through the end of the decade.
The growth policy would result in an annualised cash distribution rate of US$0.85/unit by year-end 2015. All cash distributions are subject to quarterly declaration by the board.
Thomas F. Farrell II, Chairman and Chief Executive Officer of Dominion Midstream, said: "We are confident in our ability to acquire interests in businesses through dedicated dropdowns from Dominion or by other means that will produce sufficient cash flows to support best-in-class cash distributions. These are businesses that are federally regulated or have long-term contracts with little commodity risk."
Dominion Midstream is a growth-oriented Delaware limited partnership formed by Dominion Resources Inc. in March 2014 to initially own all of the outstanding preferred equity interests in Dominion Cove Point LNG LP, a Delaware limited partnership, which owns LNG import, storage, regasification and transportation assets.
Adapted from press release by Callum O'Reilly