Dominion Energy Transfers Stake in Cove Point to Brookfield Asset Management

October 21, 2019 | Investments, News, Real Estate
https://dailyalts.com/wp-content/uploads/2019/10/54e2d044574ffd08f3d18c74c5202a7f1038dfe25350724072_640.jpg

Brookfield Asset Management scores stake in LNG facility

Dominion Energy has entered an agreement with Brookfield Super-Core Infrastructure Partners.

The latter is an infrastructure fund managed by Brookfield Asset Management (BAM). The deal will see Dominion transfer a 25 percent non-controlling equity interest in Cove Point to Brookfield. In addition, Dominion will receive cash consideration of more than $2 billion, excluding working capital.

The announcement is part of Dominion Energy’s previously communicated intention to establish a permanent capital structure for Cove Point.

Dominion Energy and Cove Point

Dominion Energy Cove Point LNG (Cove Point) owns a liquefied natural gas (LNG) import, export, and storage facility. The facility is located on the western shore of the Chesapeake Bay in Lusby, Maryland. The company also operates a  136-mile pipeline that interconnects the facility with the interstate pipeline system.

Furthermore, these assets provide liquefaction, gasification, transportation, storage, and peaking gas supply services to customers in the United States, India, and Japan. In 2018, the company completed a $4.1 billion expansion to enable natural gas exports.

The transaction represents an implied enterprise value of $8.22 billion, excluding working capital. The deal also supports Cove Point’s existing operating earnings per share and earnings growth guidance. Dominion will use proceeds for general corporate purposes. These include the reduction of its annual common equity financing. The firm discussed this plan at its investor day in March 2019.

Finally, the transaction will likely close by the end of 2019. Dominion Energy will then retain full operational control of the facility and its services. Furthermore, the recapitalization agreement will not impact existing customers and employees.

[Related: Hedge Elliott Management May Join Apollo Global Management to Save EP Energy Corp.]

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2020/09/online-banking-3559760_640.jpg
FinTech: Ant Bank, The All-New Virtual Bank From Ant Group, Is Live in HK
September 29, 2020     FinTech, News

Hong Kong’s citizens can now look forward to bank with an arm of the largest fintech unicorn in the world. Ant Bank, a part of the Ant Group, has launched…

https://dailyalts.com/wp-content/uploads/2020/09/trees-5605176_640.jpg
Alternative Investments/ESG: New ETFs For ESG Investing From iShares

iShares launched September 24 its new suite of ESG screened ETFs that track S&P 500 sustainability indexes by market capitalization. Investors looking to keep their portfolios with a greater component…

https://dailyalts.com/wp-content/uploads/2020/09/screenshot-www.mosameat.com-2020.09.29-16_33_37.png
Venture Capital: Mosa Meat’s Slaughter-Free Hamburger
September 29, 2020     ESG and Sustainability, News, Venture Capital

Alternative meat startup Mosa Meat, which harvests beef directly from cow cells, rather than raising and slaughtering a whole animal, announced its Series B fundraising of $ 55 million. The…

https://dailyalts.com/wp-content/uploads/2020/09/consensys-2020-featured-image.jpg
Digital Assets: Consensys To Work On CBDC for HK-Thai Cross-Border Payments
September 29, 2020     Digital Assets, News

Consensys is a leading U.S. blockchain technology company specializing in Ethereum blockchain infrastructure and applications for new economic systems. It announced September 25 its win of a contract from the…