Plato may have said it, Shakespeare wrote about it, and anyone who has engaged in a friendly debate about the best classic car, hunting rifle, or wristwatch knows it to be true: beauty lies in the eye of the beholder. Of course, not everyone sees value the same way, or value in the same things. That’s at the heart of the dispute over the recently announced acquisition of Questar Pipeline LLC by Southwest Gas Holdings. The prospective buyer sees Questar as a picture-perfect addition, while an activist investor sees it as a butt-ugly mistake. In today’s RBN blog, we continue an examination of the Southwest Gas/Questar deal with a look at Questar’s relationship with its local distribution companies, potential competition with the nearby Kern River Pipeline, and challenges Questar may face in serving power generators and direct industrial load.
As we discussed in We Just Disagree, Part 1, the planned acquisition of Questar Pipeline by Southwest Gas has stirred up a hornet’s nest. The story began with Dominion Energy’s July 2020 decision to sell a broad set of its natural gas transmission and storage assets to Warren Buffett’s Berkshire Hathaway Energy for $9.7 billion, but it became more complicated a year later when Dominion and Berkshire decided to terminate the Questar part of the sale over lingering concerns that it would be held up by the Federal Trade Commission. That put Questar back on the market and Southwest Gas quickly moved in, announcing a deal to buy the midstream company on October 5. Dominion said during its third-quarter earnings call on November 5 that it expects the Questar sale to be completed in the fourth quarter of 2021. But the $1.975 billion price tag, which included the assumption of $430 million in debt, brought with it a lot of attention, and questions.
Southwest Gas sees the Questar acquisition as a milestone that will allow it an increased role in the energy transition, but activist investor Carl Icahn, owner of a 4.9% stake in Southwest Gas, sees the deal as a serious blunder that would make all previous management missteps pale in comparison. That dispute has led to a proxy fight, a tender offer for Southwest Gas, and a lot of harsh words. Southwest Gas said November 8 that Icahn’s offer was inadequate and advised shareholders to reject it.
The Canadian NATGAS Billboard is a weekly, early morning email and report that’s designed to keep physical and financial participants informed of the various fundamental components that make up the complex Canadian natural gas market. This service saves readers time and confusion by compiling all the most critical data points into one clear and concise report.
Join Backstage Pass to Read Full Article
About the song
“We Just Disagree” was written by Jim Krueger and appears as the second song on Dave Mason’s seventh studio album, Let It Flow. Released as a single in August 1977, the song went to #12 on the Billboard Hot 100 Singles chart. The tune featured its author and Dave Mason band member Jim Krueger on 12-string guitar and high harmonies. “We Just Disagree” was covered by country music singer Billy Dean in 1993. His version went to #9 on the Billboard Hot Country Songs Singles chart. Personnel on the Dave Mason record were: Dave Mason (lead vocals, guitar), Jim Krueger (12-string guitar, backing vocals), Gerald Johnson (bass), Mike Finnigan (keyboards, backing vocals), Rick Jaeger (drums), Bobbye Hall (percussion), Ernie Watts (sax), and Karen Patterson, Verna Richardson, Stephen Stills (backing vocals).
Let It Flow was released in April 1977 and went to #37 on the Billboard Top 200 Albums chart. Produced by Dave Mason and Ron Nevison, the album would become Mason’s biggest seller while on Columbia Records. Three singles were released from the LP.
Dave Mason is an English singer, songwriter, and musician. He was a founding member of the rock band Traffic, with whom he was inducted into the Rock and Roll Hall of Fame in 2004. Mason has played on records by Jimi Hendrix, Eric Clapton, The Rolling Stones, Delaney & Bonnie, and David Crosby. As a member of Traffic, he appeared on three studio albums. As a solo artist, he has released 15 studio albums, seven live albums, 12 compilation albums, and 13 singles. He continues to record and perform.
