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/2022/08/10_sound_box_2.0_payment_terminal_storage_optimization-2-800x500-1.jpg
FinTech: India’s PayTM Gets Heat From Proxy Advisory Firm
August 12, 2022     FinTech, News

Proxy advisory firm Institutional Investor Advisory Services India Ltd. (IiAS) has issued a note ahead of PayTM’s (NSE: PAYTM) annual shareholders’ meeting on August 19 calling for the replacement of…

https://dailyalts.com/wp-content/uploads/2022/08/planet-g69e0d7747_640.jpg
Venture Capital: Lockheed’s Venture Arm To Boost Investment In Space Startups
August 12, 2022     News, Venture Capital

Lockheed Martin (NYSE: LMT) and its venture finance arm Lockheed Martin Ventures plans to boost the latter’s investment outlay from $200 million to $400 million.

https://dailyalts.com/wp-content/uploads/2022/08/picpay-lover.jpg
Digital Assets: Brazilian Fintech PicPay Launches Crypto Exchange With Paxos

PicPay, the well-known Brazilian payment app, has got its shoe in the crypto door in partnership with Paxos, a leading regulated blockchain infrastructure company. Picpay is opening crypto trading services…

https://dailyalts.com/wp-content/uploads/2022/08/one-braham-logo-2.jpg
FinTech: Telecom Behemoth BT Adds Barclaycard Payments To Partnership Network For Micro-Businesses
August 12, 2022     FinTech, News

BT (LON: BT.A), the telecom major, announced that Barclaycard Payments had joined its partnership network seeking to help the growth of UK microbusinesses. BT customers with 0-5 employees would get…