Warren Buffett ahead of the Berkshire Hathaway Annual Shareholder’s Meeting in Omaha, NE.David A. Grogan | CNBCBerkshire Hathaway Energy has agreed to purchase a 50% stake in the Cove Point liquefied natural gas facility for $3.3 billion in cash.Warren Buffett’s big energy and utility division bought the stake from Dominion Energy and will now own a 75% limited partnership stake in Cove Point LNG located in Lusby, Maryland. A subsidiary of Brookfield Infrastructure Partners holds the remaining 25% .While the deal, which was announced Monday, isn’t large in size for Berkshire, it builds on a growing bet on energy infrastructure at the conglomerate as it gains control of one of the rare functional facilities in the U.S. that can export LNG.”It builds on their long-term theme of energy resources becoming more valuable and ownership of one of only a few US LNG exporters,” said Bill Stone, chief investment officer at Glenview Trust and a Berkshire shareholder.The Cove Point LNG Terminal has a storage capacity of 14.6 billion cubic feet and a daily send-out capacity of 1.8 billion cubic feet. The firm has a long-term contract with Sumitomo Corp., a Japanese trading company that Buffett also invested in.Berkshire Hathaway first bought a stake in Dominion’s gas pipeline and storage assets for $4 billion in 2020. Greg Abel, Berkshire Hathaway Energy’s chairman and former CEO, previously told CNBC the deal in 2020 was made through a strong relationship he had with the prior Dominion CEO Tom Farrell.Abel is now vice chairman for noninsurance operations at Berkshire Hathaway and the successor to the 92-year-old “Oracle of Omaha.” Buffett said Abel has taken on many of the responsibilities at the conglomerate.In 2022, Berkshire proposed spending nearly $4 billion to help generate more wind and solar power in Iowa. At the same time, the conglomerate has been dramatically increasing its exposure to two traditional energy companies — Occidental Petroleum and Chevron. “Buffett has liked pipelines for a long time, given their toll bridge-type revenues rather than pure commodity exposure, and this is likely similar,” Stone said. “Natural gas prices are down a ton, but I think most of these exporters work on long-term take or pay contracts.”Natural gas futures have fallen more than 40% this year to $2.709 per million British thermal units. …
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[mwai_chat context=”Let’s have a discussion about this article:nnWarren Buffett ahead of the Berkshire Hathaway Annual Shareholder’s Meeting in Omaha, NE.David A. Grogan | CNBCBerkshire Hathaway Energy has agreed to purchase a 50% stake in the Cove Point liquefied natural gas facility for $3.3 billion in cash.Warren Buffett’s big energy and utility division bought the stake from Dominion Energy and will now own a 75% limited partnership stake in Cove Point LNG located in Lusby, Maryland. A subsidiary of Brookfield Infrastructure Partners holds the remaining 25% .While the deal, which was announced Monday, isn’t large in size for Berkshire, it builds on a growing bet on energy infrastructure at the conglomerate as it gains control of one of the rare functional facilities in the U.S. that can export LNG.”It builds on their long-term theme of energy resources becoming more valuable and ownership of one of only a few US LNG exporters,” said Bill Stone, chief investment officer at Glenview Trust and a Berkshire shareholder.The Cove Point LNG Terminal has a storage capacity of 14.6 billion cubic feet and a daily send-out capacity of 1.8 billion cubic feet. The firm has a long-term contract with Sumitomo Corp., a Japanese trading company that Buffett also invested in.Berkshire Hathaway first bought a stake in Dominion’s gas pipeline and storage assets for $4 billion in 2020. Greg Abel, Berkshire Hathaway Energy’s chairman and former CEO, previously told CNBC the deal in 2020 was made through a strong relationship he had with the prior Dominion CEO Tom Farrell.Abel is now vice chairman for noninsurance operations at Berkshire Hathaway and the successor to the 92-year-old “Oracle of Omaha.” Buffett said Abel has taken on many of the responsibilities at the conglomerate.In 2022, Berkshire proposed spending nearly $4 billion to help generate more wind and solar power in Iowa. At the same time, the conglomerate has been dramatically increasing its exposure to two traditional energy companies — Occidental Petroleum and Chevron. “Buffett has liked pipelines for a long time, given their toll bridge-type revenues rather than pure commodity exposure, and this is likely similar,” Stone said. “Natural gas prices are down a ton, but I think most of these exporters work on long-term take or pay contracts.”Natural gas futures have fallen more than 40% this year to $2.709 per million British thermal units. …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]
