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Warren Buffett’s Berkshire Hathaway Energy Acquires $3.3 Billion Stake in LNG Terminal

One of Warren Buffett's Berkshire Hathaway subsidiaries is set to raise its ownership in the Cove Point liquefied natural gas (LNG) export terminal located in Maryland. This comes after the company signed a substantial $3.3 billion agreement with Dominion Energy.
Under the agreement, Dominion Energy has agreed to sell its 50 percent noncontrolling limited partner interest in Cove Point LNG to Berkshire Hathaway Energy. Berkshire Hathaway Energy is the current operator of the facility and already holds a 100 percent general partner interest and a 25 percent limited partner interest.

Upon the completion of the deal, Berkshire Hathaway Energy will have a 75 percent limited partnership stake in Cove Point LNG, while a subsidiary of Brookfield Infrastructure Partners will retain the remaining 25 percent limited partnership interest in the terminal.

The newly acquired interest in Cove Point LNG will be held within BHE GT&S, which is a business unit of Berkshire Hathaway Energy.

Berkshire Hathaway Increases Cove Point LNG

The $3.3 billion transaction will be funded through cash on hand, including proceeds from the liquidation of certain investments, according to Berkshire Hathaway.
Dominion expects to receive approximately $200 million from the termination of interest-rate derivatives, as stated in a separate statement.
In the previous year, the Cove Point LNG plant achieved a significant milestone by shipping its 300th cargo since commencing commercial liquefaction operations in April 2018.
The facility comprises an LNG import and export terminal situated in Calvert County, Maryland, along with associated pipeline facilities.
With a storage capacity of 14.6 billion cubic feet, the plant has a daily send out capacity of 1.8 bcf (billion cubic feet) or approximately 5.25 million tons of LNG per year from a single liquefaction unit.

Located in Lusby, Maryland, approximately 60 miles southeast of Washington DC, Cove Point LNG has secured long-term contracts with notable companies such as Tokyo Gas Co. and Sumitomo Corp.

In a separate statement, Dominion revealed its intention to utilize the proceeds from the transaction to repay debt. As part of its ongoing business review, Dominion has announced plans to hold an investor day in the third quarter to provide an updated strategic and financial outlook.

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Chevron Announces Intent to Divest Oil and Gas Properties in New Mexico and Texas

According to Reuters, Chevron has recently made additional assets available for acquisition in both New Mexico and Texas. As part of its strategy to streamline operations following significant shale acquisitions, Chevron is reportedly offering multiple oil and gas properties for sale in New Mexico and Texas. Marketing documents reviewed by Reuters reveal the company's intention to divest these assets. Despite its prominent position as the largest publicly-traded oil and gas producer and property owner with 2.2 million acres in the Permian Basin of West Texas and New Mexico, Chevron has been actively divesting properties in the region. This divestment aligns with Chevron's efforts to optimize its portfolio and focus on its core operations.

Chord Energy Corp.'s subsidiary has entered into an agreement to purchase assets in the Williston Basin from Exxon Mobil, and its affiliates for $375 million. Chord Energy, a US independent company, is strategically expanding its presence in the Williston Basin of Montana and the Dakotas. While industry attention remains fixated on the Permian Basin, Chord Energy recognizes the potential of the Williston Basin and is capitalizing on the opportunity to enhance its reserve portfolio. Chord Energy successfully completed the acquisition of 62,000 acres in the Williston Basin from XTO Energy for a substantial cash consideration of $375 million.

Rangeland Energy has agreed to sell Rangeland Midstream Canada to Kingston Midstream Alberta and remains committed to future Canadian midstream investments. Texas-based Rangeland Energy, supported by financial partner EnCap Flatrock Midstream, has inked a deal to sell its Canadian subsidiary, Rangeland Midstream Canada Ltd., to Calgary's Kingston Midstream Alberta Ltd. for cash.

The merger between ONEOK and Magellan received approval from Magellan shareholders, securing just 55% of the total votes at Magellan’s meeting on Sept. 21. ONEOK Inc. has successfully concluded the acquisition of Magellan Midstream Partners LP on Sept. 25. The deal will bring together their respective assets and expertise, resulting in a powerful entity boasting an extensive network of approximately 25,000 miles of pipelines primarily focused on transporting liquids.

Viper Energy's deal, comprised of cash and equity, secures an additional 2,800 net royalty acres in the Midland Basin and 1,800 in the Delaware Basin. Viper Energy Partners LP, a Diamondback Energy Inc. subsidiary, has inked a deal to acquire mineral and royalty interests in the Permian Basin. The deal, valued at around $1 billion, is with Warwick Capital Partners and GRP Energy Capital. Viper was established by Diamondback with the purpose of owning, purchasing, and capitalizing on oil and natural gas assets in North America, specifically targeting mineral and royalty interests.

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