Thread by @rationalwalk, Much additional information on the $BRKA purchase of Dominion assets can be [...]

The Rational Walk

rationalwalk

Much additional information on the $BRKA purchase of Dominion assets can be found in this presentation posted by Berkshire Hathaway energy this morning:

https://www.sec.gov/Archives/edgar/data/1081316/000119312520187362/d948170dex991.htm">https://www.sec.gov/Archives/...

In addition to the $3.8 billion in cash used to fund the transaction, over the next year BHE plans to pay off $1.2 billion in maturing debt that is being assumed in the transaction bringing the cash commitment to $5 billion.

Here& #39;s the debt of Dominion Gas, the segment of Dominion containing the pipeline assets. (From $D 10-K)

Segment information

I am not sure that the Dominion Energy Gas segment results map exactly to what Berkshire is purchasing. The parent company apparently has some transmission assets.

But I think segment data in the prior tweet contains a rough idea of the numbers behind what is being purchased.

It& #39;s a boring deal with boring assets that appear to be capable of providing good incremental income for the capital invested - which is exactly what Buffett has been looking for over the past 20 years - that& #39;s the BHE platform.

I view this as a BHE "tuck-in" acquisition. Small.

I don& #39;t really have much more to add beyond this thread. I was going to write a post about the deal but there isn& #39;t a whole lot to discuss beyond the media reports. I may write a few paragraphs in this week& #39;s newsletter.

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