Warren Buffett’s Berkshire Hathaway Acquires Dominion Energy

Despite the significant volatility in the US stock market, there still appear to be deals worth pursuing – at least according to Warren Buffet. The billionaire’s Berkshire Hathaway has caved in and purchased Dominion Energy’s natural gas transmission and storage assets for a total of $4 billion and $5.7 billion in debt.

This significant purchase marks the first for the conglomerate since the onset of the coronavirus pandemic and resulting market crash. Back in May, Buffet stated that Berkshire had been hoarding a total of approximately $137 billion in cash while stock markets collapsed due to lack of feasible deals – until now.

With Berkshire’s new acquisition, Dominion has been focusing on transitioning to a pure-play regulated utility firm with a concentration on deriving clean energy from solar, wind, and natural gas. As such, the company is anticipating that at least 90% of its future earnings will be derived from its various utility companies that deliver energy to over 7 million customers across the US.

In the meantime, Dominion revealed that it will be terminating the planned Atlantic Coast Pipeline project alongside Duke Energy, and will also be anticipating a reduction in its operating earnings for the remainder of the year. However, Berkshire sees this new acquisition as a positive step towards developing its footprint in the natural gas market.

Before the acquisition, Berkshire accounted for 8% of interstate natural gas transmission across the US; now however, the conglomerate will be responsible for 18% of natural gas transmission. Furthermore, with the 100% purchase of Dominion, Berkshire will also be acquiring Carolina Gas Transmission and Questar Pipeline, in addition to 50% of the Ironquois Gas Transmission System, and 25% of Cove Point LNG.

Information for this briefing was found via CNBC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Gold Drilling Scaled to 60,000 Meters: How Big Can This Get? | Roger Rosmus – Goliath Resources

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Recommended

Antimony Resources Drills 4.17% Antimony Over 7.4 Metres At Bald Hill

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Related News

Buffett Shuns Bitcoin Anew: “It Isn’t Going To Do Anything”

Speaking at the annual Berkshire Hathaway (NYSE: BRK.A) shareholder meeting, Chairman and CEO Warren Buffett...

Monday, May 2, 2022, 10:14:00 AM

Buffett’s Berkshire Slashes Apple Stake by Half in Major Selloff

Berkshire Hathaway (NYSE: BRK.B), led by billionaire Warren Buffett, has slashed its stake in Apple...

Monday, August 5, 2024, 12:32:00 PM

A Deep Dive On Berkshire Hathaway’s Annual Letter

Warren Buffett, the Chairman and CEO of Berkshire Hathaway (NYSE: BRK.B), recently provided insight into...

Monday, February 26, 2024, 03:44:00 PM

BREAKING: Berkshire Hathaway Class A Shares Suddenly Drop 99.97%

Berkshire Hathaway (NYSE: BRK.A) has seen its Class A shares halted by the New York...

Monday, June 3, 2024, 10:17:12 AM

Warren Buffet Buys 20.9 Million Shares of Barrick Gold, Sells Remainder of Stake in Goldman Sachs

It appears that Barrick Gold (TSX: ABX) (NYSE: GOLD) has a lot of reason to...

Friday, August 14, 2020, 07:11:47 PM