Dominion Energy Transfers Stake in Cove Point to Brookfield Asset Management
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.
Latest Alternative Investment News
The $110 million comprised both debt and equity capital. Zilch, the UK-based BNPL platform has raised an additional $110 million from Goldman Sachs and DMG Ventures. The funding is part…
A market survey by alternatives technology provider Vidrio Financial shows that fears of inflation have helped move substantial fund allocations during the first half of 2021 to alternative assets such…
Global X, the New York-based ETF provider and subsidiary of $560 billion investment manager Mirae Asset, has filed with the SEC for permission to launch a bitcoin ETF titled the…
Four news bites that show cryptos are hanging on, recent crashes notwithstanding. From bitcoin ATMs to crypto FOMO, here goes….