Berkshire Hathaway Energy, a subsidiary of Warren Buffett's conglomerate, Berkshire Hathaway (BRK.A 0.65%) (BRK.B 0.86%), today announced it has closed on the first phase of its previously announced deal with Dominion Energy (D 2.14%). The $8 billion purchase consisted of approximately $2.7 billion in cash and the assumption of $5.3 billion in debt.
The energy subsidiary also said it completed a coinciding issuance of $1.2 billion in senior notes with the proceeds going to pay down Dominion Energy debt as it matures in future months. The closing transaction does not yet include Dominion's Questar Pipeline Group, which is expected to receive regulatory approval in early 2021.
Image source: Getty Images.
Berkshire and Dominion announced a $9.7 billion deal in July 2020. The second, and final, phase of the deal for the Questar Pipeline Group will be for another $1.3 billion in cash and the assumption of approximately $430 million in long-term debt. Questar operates 1,888 miles of natural gas pipeline and provides transportation and underground storage services in Utah, Wyoming, and Colorado.
Today's completed deal includes a 25% stake in Cove Point LNG -- an LNG export, import, and storage facility in Maryland that will now be operated by Berkshire Hathaway Energy.
In a statement on today's closing, Greg Abel, Berkshire Hathaway's vice chairman, noninsurance operations, and Berkshire Hathaway Energy chairman, said, "With shared values and priorities, the business is a great fit within our organization and will play an important role in our long-term plan to deliver clean, low-cost and sustainable energy solutions to customers and communities."
