Connect with us

Hi, what are you looking for?

FINANCE

Berkshire’s energy unit to buy Dominion Energy’s gas transmission, storage business

imageStock Markets2 hours ago (Jul 05, 2020 05:35PM ET)

(C) Reuters. Berkshire Hathaway Chairman Warren Buffett walks through the exhibit hall as shareholders gather to hear from the billionaire investor at Berkshire Hathaway Inc’s annual shareholder meeting in Omaha

By Jonathan Stempel

(Reuters) – Berkshire Hathaway Inc (N:BRKa) said its energy unit will buy Dominion Energy Inc’s (N:D) natural gas transmission and storage network for $4 billion, helping billionaire Chairman Warren Buffett reduce his conglomerate’s cash pile while letting Dominion focus on utilities operations.

The transaction announced on Sunday includes more than 7,700 miles (12,390 km) of natural gas transmission lines and 900 billion cubic feet of gas storage.

Berkshire Hathaway Energy is buying Dominion Energy Transmission, Questar Pipeline, Carolina Gas Transmission, 50% of the Iroquois Gas Transmission System, and 25% of the Cove Point liquefied natural gas facility in Maryland.

Dominion will retain 50% of Cove Point. Brookfield Asset Management Inc (TO:BAMa) owns 25%.

The Berkshire unit will also assume $5.7 billion of debt, giving the transaction a $9.7 billion enterprise value. It expects a fourth-quarter closing, pending regulatory approvals.

“We are very proud to be adding such a great portfolio of natural gas assets to our already strong energy business,” Buffett said in a statement.

Dominion expects up to 90% of future operating earnings to come from utilities.

The company and Duke Energy Inc (N:DUK) separately announced on Sunday they would abandon their $8 billion Atlantic Coast Pipeline, running under the Appalachian Trail and through West Virginia, Virginia and North Carolina.

Dominion and Duke cited delays and uncertain costs, despite a favorable U.S. Supreme Court decision last month.

Berkshire controls 91.1% of Berkshire Hathaway Energy, which owns the MidAmerican Energy, NV Energy and PacifiCorp utilities, natural gas pipelines, wind power assets and electricity businesses in Britain and Canada.

The unit accounted for 12% of Berkshire’s $23.97 billion of operating profit in 2019. Its chairman, Greg Abel, is also a Berkshire vice chairman.

Berkshire ended March with $137.2 billion of cash, reflecting Buffett’s four-year inability to find major acquisitions, even as the coronavirus pandemic took hold and stock prices plunged.

Berkshire Hathaway Energy declined additional comment.

Buffett’s Berkshire to buy Dominion Energy gas assets for $4 billion

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

You May Also Like

WORLDWIDE

While not one of the most frequently talked about social networks, Twitch has a lot of users and can be a viable option...

BREAKING NEWS

Politics56 minutes ago (Feb 29, 2020 10:54PM ET) (C) Reuters. Democratic Presidential candidate Tom Steyer speaks to supporters as he announced that he is...

EDITOR'S CHOICE

Let’s Talk Liberal The decades old game show, The Price Is Right, you know the one – where men dress up as women? I’ll...

EDITOR'S CHOICE

Let’s Talk Liberal If you thought “we’re all in this together” battling COVID-19, Multnomah County, Ore., is here to set you straight. We’re not...

Disclaimer: PoliticalInvestorsDaily.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 PoliticalInvestorsDaily. All Rights Reserved.

Enter Your Information Below To Receive Latest News And Articles



Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!