NEW YORK (TheStreet) -- Questar Corp. (STR) stock is up by 21.53% to $24.78 in mid-morning trading on Monday, after the natural gas company announced it would be acquired by DominionResources (D) in a deal valued at about $4.4 billion.  

Under the terms of the deal, Dominion, an energy company based in Richmond, will pay Questar shareholders $25 per share in cash. Additionally, Dominion will acquire Questar's outstanding debt.

The combined company will have about 4.8 million electric and gas customers across seven states, the companies said in a statement on Monday. The deal is expected to close by the end of 2016.

"This addition is well-aligned with Dominion's existing strategic focus on core regulated energy infrastructure operations," Dominion CEO Thomas Farrell II said in a statement. "Questar boasts best-in-sector customer growth in states with strong pro-business credentials and constructive regulatory environments. These high-performing regulated assets will improve Dominion's balance between electric and gas operations and provide enhanced scale and diversification into Questar's regulatory jurisdictions. "

Dominion stock is down by 1.36% to $71.17 in mid-morning trading.

Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rates this stock as a "hold" with a ratings score of C+. The company's strengths can be seen in multiple areas, such as its expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and generally higher debt management risk.

You can view the full analysis from the report here: STR

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