Dominion Energy divests Gas Transmission, Storage Assets to Berkshire Hathaway Energy

Dominion Energy has executed a definitive agreement to sell its gas transmission and storage assets – including more than 7,700 miles of natural gas storage and transmission pipelines and about 900 billion cubic feet of gas storage that the company currently operates in the US– to an affiliate of Berkshire Hathaway Energy in a transaction valued at approximately US$9.7 billion, including the assumption of about US$5.7 billion of existing indebtedness which will reduce Dominion Energy's total leverage. The buyer will also make a cash payment of approximately US$4 billion to Dominion Energy upon closing.

Thomas F. Farrell, II, Dominion Energy chairman, president, and chief executive officer, said: "Dominion Energy's best-in-class gas transmission and storage business has been a major component of our success. Our talented employees set the standard for industry operating, environmental and safety performance and provide our customers with reliable, affordable, and safe service. They will be joining another of the foremost corporate organizations in Berkshire Hathaway Energy which has agreed to provide significant protections for existing employees and to honor existing union commitments."

Assets covered by the sale agreement include the company's ownership interests in Dominion Energy Transmission, Questar Pipeline (including Overthrust and White River Hub), Carolina Gas Transmission, Iroquois Gas Transmission System (50 percent interest), legacy gathering and processing operations, farmout acreage, as well as a 25 percent operating interest in Cove Point. These assets will be reclassified as discontinued operations for GAAP reporting and excluded from operating earnings for full-year 2020. The company's interest in the Atlantic Coast Pipeline is not included in the transaction.

The transaction is expected to close during the fourth quarter. It requires Hart-Scott-Rodino clearance as well as approval from the US Department of Energy.

McGuireWoods LLP served as legal counsel to Dominion Energy. Barclays acted as the company's lead financial advisor for the transaction. Morgan Stanley acted as financial advisor to the company.