Dominion Sells Minority Stake in Cove Point LNG

Virginia-based Dominion Energy said October 21 it has reached agreement to sell a 25% non-controlling equity interest in its Cove Point LNG complex in Maryland to Brookfield Super-Core Infrastructure Partners, an infrastructure fund managed by Brookfield Asset Management.

Brookfield will pay $2bn in cash, excluding working capital, for the interest in Cove Point, a combined LNG import and export facility on the shores of Chesapeake Bay, near Lusby, Maryland.

“The agreement highlights the compelling intrinsic value of Cove Point and allows us to efficiently redeploy capital toward our robust regulated growth capital programs,” Dominion Energy CEO Thomas F. Farrell II said. “We are very excited to have a highly respected infrastructure investor such as Brookfield as our partner in this world-class facility.”

The transaction, expected to close by the end of 2019, represents an implied enterprise value of $8.22bn, excluding working capital, and is supportive of the company’s existing operating earnings per share and earnings growth guidance, Dominion said. Proceeds are expected to be used for general corporate purposes and to reduce the need for annual common equity financing.