Berkshire Hathaway: Cove Point Deal Fits With Berkshire's Focus on Energy and Utilities

We see no reason to alter our fair value estimate for wide-moat-rated Berkshire Hathaway following news that the company has agreed to acquire narrow-moat Dominion Energy's 50% stake in Cove Point, a U.S.-based export, import, and storage facility for liquefied natural gas. For those who may not recall, the insurer's utilities and energy segment, Berkshire Hathaway Energy, acquired nearly all of Dominion's natural gas transmission and storage operations for around $4.0 billion ($9.6 billion when including assumed debt) in July 2020. That deal included BHE's assumption of a 25% economic stake in Cove Point, with Dominion retaining its 50% stake and the other 25% held by Brookfield Infrastructure Partners.