Dominion Energy Expects Transaction With Berkshire Hathaway Energy To Close Around November 1

(RTTNews) – Dominion Energy, Inc. (D) on Wednesday provided updates related to the pending sale of its gas transmission and storage assets to an affiliate of Berkshire Hathaway Inc. (BRK-A, BRK-B).

Dominion Energy expects its transaction with Berkshire Hathaway Energy, exclusive of Questar Pipelines, to close around November 1, 2020.

As consideration for that transaction, Dominion Energy will receive about $2.7 billion in cash and transfer $5.3 billion of existing Dominion Energy Gas Holdings-related indebtedness to the buyer at closing.

Subsequently, Dominion Energy expects to complete the sale of Questar Pipelines to Berkshire Hathaway Energy in early 2021. As consideration for that transaction, Dominion Energy will receive approximately $1.3 billion in cash and also transfer around $430 million of existing Questar Pipelines indebtedness to the buyer.

The company noted that the aggregate cash consideration and assumption of debt across the two anticipated closings is exactly equivalent to the original transaction terms announced on July 5, 2020.

Due to the phased closing, Questar Pipelines and its associated debt will be removed from Dominion Energy Gas Holdings before the transfer of DEGH to Berkshire.

Dominion noted that Berkshire Hathaway Energy has indicated it plans to support the existing credit profile of DEGH by foregoing the refinancing of some $1.2 billion of scheduled maturities over the next twelve months, as well as consideration of other credit-enhancing measures including additional deleveraging past 2021, as needed.

Further, Dominion Energy said it has completed over $500 million of open market repurchases to date and executed a $1.5 billion accelerated share repurchase program that will conclude in December. On completion in early 2021, the company continues to expect its total share repurchases to be at least $3 billion.

For fiscal 2020, Dominion Energy now expects operating earnings per share, normalized for weather, to be in the top half of its outlook range of $3.37 to $3.60 per share. In addition, the company affirmed all other earnings and dividend guidance.

The company noted that dual-phase closing will not change its prior guidance with regard to treatment of assets being divested as discontinued operations and excluded from operating earnings.

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