Dominion Energy Closes on Sale of Majority of Gas Transmission & Storage Assets to Berkshire Hathaway Energy
Total enterprise value of approximately $8 billion representing more than 80% of total transaction value
Remaining assets expected to close in early 2021 following Hart-Scott-Rodino clearance
RICHMOND, VA (STL.News) Dominion Energy (NYSE: D) announced today that it has closed on the sale of the majority of its gas transmission and storage assets to Berkshire Hathaway Energy, an affiliate of Berkshire Hathaway Inc. (NYSE: BRK.A), for approximately $2.7 billion in cash and the transfer of approximately $5.3 billion of related indebtedness. These operations include more than 5,500 miles of interstate gas transmission pipelines, about 775 billion cubic feet (Bcf) of gas storage that the company operates and an operating 25 percent stake in Cove Point.
The sale of the company’s interests in the Questar Pipelines, also to Berkshire Hathaway Energy, is expected to be completed in early 2021 following receipt of Hart-Scott-Rodino clearance. The company has received a cash payment of approximately $1.3 billion in anticipation of the sale of these interests, and will transfer approximately $430 million of related debt to Berkshire Hathaway Energy upon close of this follow-on transaction.
The full transaction is expected to result in a nearly $6 billion reduction in Dominion Energy debt. The company also expects total share repurchases of Dominion Energy common stock to be at least $3 billion.
More than 7 million customers in 16 states energize their homes and businesses with electricity or natural gas from Dominion Energy (NYSE: D), headquartered in Richmond, Va. The company is committed to sustainable, reliable, affordable and safe energy and to achieving net zero carbon dioxide and methane emissions from its power generation and gas infrastructure operations by 2050.
NOTE: this is NOT the complete release. News provided by Dominion Energy.
For complete release visit: https://news.dominionenergy.com/2020-11-02-Dominion-Energy-Closes-on-Sale-of-Majority-of-Gas-Transmission-Storage-Assets