Notifications Bell

Berkshire goes all in in the energy market

Berkshire goes all in in the energy market

The pandemic effects are starting to wear off for Berkshire

After the pandemic put a pause on mergers and acquisitions, every major company began to work on expanding and secure a spot in its field: Lululemon bought Mirror, Uber bought Postmates, and now, Berkshire Hathaway purchased Dominion Energy natural gas assets, in a $10 billion deal.

After the deal closed, it became the most significant purchase that Berkshire made since its March collapse. For Dominion, this one is the move that helps its transition from a business focused on the gas transmission to a clean energy utility company. At the moment, Dominion is among the most important producers and transporters of energy in the States, and it provides either electricity or natural gas to more than 7 million customers.

Moreover, the Virginia-based company is looking to invest roughly $55 billion over the next 15 years in emission reduction technologies, including zero-carbon generation, renewable natural gas, and gas distribution line replacement, and energy storage.

Moreover, on Sunday, Dominion Energy and Duke Energy terminated their collaboration – Atlantic Coast Pipeline – a natural gas pipeline that should have gone across West Virginia, Virginia, and North Carolina. Environmental groups scrutinized the project, and the ongoing delays, litigation, and an increase in costs didn't do the project any favours.

For Berkshire, the purchase increased its interstate natural transmission to 18% from what it originally had – 8%. The deal also brings 7,700 miles of transmission pipelines and natural gas storage, and 900 billion cubic feet of gas storage. Moreover, it will have a 50% operating interest in the Iroquois Gas Transmission System and a 25% operating interest in one of the liquid natural gas shipping facilities at Cove Point.

The deal in currently under regulatory approval, but if everything goes according to the schedule, it will be closed in the last quarter of this year.

Dominion Energy carries on with its gains. After Friday at the close it was higher by 0.41%; in today's pre-market, it rallied 0.37%. Unlike Dominion, Duke closed the Friday session lower by 0.11%, and today it lost more than 1%.

News, news, news! Keep up with what is happening on the market by checking our news dedicated section here!

Sources: cnbc.com, finance.yahoo.com, edition.cnn.com


Informațiile prezentate în acest document sunt pregătite de CAPEX.com și nu au intentia de a constitui consultanță pentru investiții. Informațiile din acest document sunt furnizate drept o comunicare generală de marketing cu scop informativ și, ca atare, nu au fost pregătite în conformitate cu cerințele legale concepute pentru a promova independența cercetării în domeniul investițiilor și nu sunt supuse niciunei interdicții de abordare înainte de diseminarea cercetărilor legate de investiții.

Utilizatorii/cititorii nu ar trebui să se bazeze exclusiv pe informațiile prezentate aici și ar trebui să facă propriile lor cercetări/analize, prin citirea cercetărilor de bază. Conținutul acestui document este generic și nu ia în considerare circumstanțele personale ale fiecărui individ, experiența de investiții sau situația financiară actuală.

Prin urmare, Key Way Investments Ltd nu va accepta nicio responsabilitate pentru eventualele pierderi ale traderilor datorate utilizării conținutului sau a conținutului informațiilor prezentate în acest document. Performanțele trecute și previziunile nu sunt indicatori fiabili ai rezultatelor viitoare.