Dominion Energy has executed a definitive agreement to sell substantially all of its Gas Transmission & Storage segment assets to an affiliate of Berkshire Hathaway Inc., in a transaction valued at $9.7 billion, including the assumption of $5.7 billion of existing indebtedness.

Thomas F. Farrell, II, Dominion Energy Chairman, President, and Chief Executive Officer, said: “Today’s announcement further reflects Dominion Energy’s focus on its premier state-regulated, sustainability-focused utilities that operate in some of the most attractive regions in the country.”

He added: “Over the past several years the company has taken a series of steps – including mergers with Questar Corporation and SCANA Corporation, and the divestiture of Blue Racer Midstream and merchant generation assets – to increase materially the state-regulated nature of our profile, enhance the customer experience, strengthen our balance sheet, and improve transparency and predictability. Our mission over that period has remained the same: providing round-the-clock affordable and sustainable energy, world-class customer service, and meaningful community engagement.”

He said Dominion offers “an industry-leading clean-energy profile” which includes a comprehensive net zero target by 2050 for both carbon and methane emissions, as well as one of the U.S.’s largest zero-carbon electric generation and storage investment programmes. 

Over the next 15 years it plans to invest up to $55 billion in emissions reduction technologies including zero-carbon generation and energy storage, gas distribution line replacement, and renewable natural gas. In addition, between 2018 and 2025 it expects to retire more than four gigawatts of coal- and oil-fired electric generation.

He concluded: “This narrowing of focus will also allow us to increase our long-term earnings growth rate guidance by around 30%. Our rebased dividend policy better reflects our revised operating and financial strengths, aligns with our best-in-class industry peers and allows us to grow our dividend much more rapidly than before.

This transaction represents another significant step in our evolution as a company, allowing us to focus even more on fulfilling utility customer needs and positioning us for a bright and increasingly sustainable future.”

Warren Buffett, Chairman of Berkshire Hathaway, added: “I admire Tom Farrell for his exceptional leadership across the energy industry as well as within Dominion Energy. We are very proud to be adding such a great portfolio of natural gas assets to our already strong energy business.”

McGuireWoods LLP served as legal counsel to Dominion Energy. Barclays acted as the company’s lead financial advisor for the transaction. Morgan Stanley acted as financial advisor to the company.

For more information visit news.dominionenergy.com

6th July 2020