Dominion Energy Sells 25% Interest in Dominion Cove Point LNG
Dominion Energy, Inc. (“Dominion Energy”) announced that it has entered into an agreement with Brookfield Super-Core Infrastructure Partners, an infrastructure fund managed by Brookfield Asset Management Inc. (“Brookfield”), whereby Dominion Energy will transfer a 25% non-controlling equity interest in Dominion Energy Cove Point LNG, LP (“Cove Point”) to Brookfield in exchange for cash consideration of just over $2 billion. Cove Point owns the LNG import, export and storage facility in Lusby, Md., and a 136-mile pipeline that interconnects the facility with the interstate pipeline system. According to the press release, the transaction represents an implied enterprise value of $8.22 billion, excluding working capital, and proceeds are expected to be used for general corporate purposes, including significantly reducing annual common equity financing. Upon transaction close, expected by the end of 2019, Dominion Energy will retain full operational control of the facility and its services, and existing customers and employees will be unaffected by this recapitalization agreement.