The deals, with
, cover 3.51 trillion cubic feet equivalent of proved natural gas and oil reserves as of Dec. 31, 2006.
"We expect the New Dominion to produce 2008 operating earnings of $6.00 or more per share, and we are confident that we can achieve long-term average annual earnings per share growth of at least 4 percent to 6 percent thereafter," CEO Thomas Farrell said. "We will provide detailed 2008 operating earnings guidance in January."
Loews agreed to purchase Dominion's operations in the Permian Basin, Michigan and Alabama for $4.025 billion. These operations include reserves of 2.5 Tcfe
XTO Energy agreed to purchase Dominion's operations in the Rocky Mountains, Gulf Coast, San Juan Basin and South Louisiana for $2.5 billion. These operations include proved reserves of approximately 1 Tcfe.
Closing on both sales is expected to occur in August.