US utility Dominion Energy has closed on the sale of the majority of its gas transmission and storage assets to Berkshire Hathaway Energy.
The transaction includes the utility receiving approximately $2.7 billion in cash and the transfer of approximately $5.3 billion of related indebtedness.
The sold infrastructure and operations include more than 5,500 miles of interstate gas transmission pipelines, about 775 billion cubic feet (Bcf) of gas storage that the company operates and an operating 25% stake in Cove Point.
The sale of the company’s interests in the Questar Pipelines, also to Berkshire Hathaway Energy, is expected to be completed in early 2021.
Dominion Energy has received a cash payment of approximately $1.3 billion in anticipation of the sale of these interests and will transfer approximately $430 million of related debt to Berkshire Hathaway Energy upon close of this follow-on transaction.
The full transaction is expected to result in a nearly $6 billion reduction in Dominion Energy debt. The company also expects total share repurchases of Dominion Energy common stock to be at least $3 billion.