Summary
Dominion Energy, Inc. (D) announced the closing of the sale of the majority of its gas transmission and storage assets to Berkshire Hathaway Energy Company (BHE) for approximately $2.7 billion in cash and the assumption of $5.3 billion in related debt, effective November 1, 2020. This significant divestiture is a key step in Dominion's strategic refocusing. The transaction also includes a follow-on sale of Dominion Energy Questar Pipeline, LLC and related entities to BHE, expected in early 2021, which will involve an additional cash payment of approximately $1.3 billion and a debt transfer of $430 million. Investors should note that the sale of the Questar Pipeline assets is contingent on regulatory approvals, specifically Hart-Scott-Rodino clearance. While Dominion has received an interim payment for these future assets, the finalization and full financial impact will occur upon the closing of this second tranche. The company has cautioned that these forward-looking statements are subject to various risks and uncertainties that could impact the actual timing and completion of these transactions.
Key Highlights
- 1Closed sale of majority of gas transmission and storage assets to Berkshire Hathaway Energy for $2.7 billion cash and $5.3 billion debt transfer.
- 2Transaction effective date was November 1, 2020.
- 3Sale of Dominion Energy Questar Pipeline, LLC and related entities to BHE expected in early 2021.
- 4Anticipated $1.3 billion cash payment and $430 million debt transfer for Questar Pipeline assets.
- 5Questar Pipeline sale is subject to Hart-Scott-Rodino clearance.
- 6Company highlights risks and uncertainties related to the timing and completion of these transactions in its forward-looking statements.