Dominion Energy Stocks (re ) – Get reportfell on Monday after Warren Buffett’s Berkshire Hathaway (BRK.A) – Get report (BRK.B) – Get report He said he agreed to buy the company’s natural gas transmission and storage business for nearly $ 10 billion in cash and debt, bolstering Berkshire’s energy operations and allowing Dominion to focus on its public services.
Berkshire Hathaway announced that it was purchasing Dominion Energy Transmission, Questar Pipeline and Carolina Gas Transmission, as well as 50% of the Iroquois gas transmission system and 25% of the Cove Point liquefied natural gas facility in Maryland, the company reported in a statement.
Berkshire Hathaway will pay $ 4 billion in cash and take on another $ 5.7 billion of Dominion’s debt, giving the transaction a business value of nearly $ 10 billion. The transaction is expected to close in the fourth quarter, pending regulatory approvals.
The deal marks Berkshire Hathaway’s first major purchase since the coronavirus pandemic and the subsequent market crash in March, something Buffett’s critics had pointed to could mark the end of the investor’s longstanding history of conducting large focused transactions. in the high profile sector. who played Berkshire’s comeback.
It also greatly increases Berkshire’s footprint in the natural gas business: with the purchase, Berkshire Hathaway Energy will transport 18% of all interstate natural gas transmission in the United States, up from 8% today.
“We are very proud to add such a large portfolio of natural gas assets to our already strong energy business,” Buffett said in a statement.
The transaction does not include Dominion’s interest in the Atlantic Coast Pipeline. Dominion and Duke Energy (DUK) – Get report They announced separately on Sunday that they would cancel that project, saying delays and uncertain costs threatened its economic viability.
Dominion Energy shares fell 2.27% to $ 80.81 in trading on Monday. Berkshire Hathaway’s Class B shares rose 1.92% to $ 182.26. The company’s Class A shares rose 2.2% to $ 273,444 per piece.
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