Warren Buffet’s Berkshire Hathaway is finally pulling the trigger into pushing the billionaire towards investing into green energy. The latter is reportedly spending $4 billion towards buying natural gas transmission and storage assets of Dominion Energy. Including a fair assumption of debt that Dominion Energy might carry, the total deal is about to take Warren for a ride for no less than $10 billion. This will mark the first purchase from the billionaire in a post-pandemic world where the economy is crashing and subsequent market collapse occurred in March.
In an annual shareholder meet in May, Buffet revealed that Berkshire has a cash-built up of $137 billion as the financial markets crashed, and that even though the cash influx he hasn’t been able to capitalize subsequently.
“We have not done anything because we don’t see anything that attractive to do,” Buffett said at the time hinting the hinderance of preventing takeovers of companies that were imposed during the 2008 and 2009 financial crisis. “If we really liked what we were seeing, we would do it, and that will happen someday,” Buffett said in May.
For Dominion, the sale will come as a boon as a pure-playing regulated utility company that mainly focuses on clean energy production that is created from wind, solar and natural gas. Following the sale, Dominion is expected that 90% of the operating earnings will come from their utility companies that will provide energy to more than 7 million customers in states ranging from Virginia, North and South Carolina, Ohio and Utah.
As a result of the sale and the streamlined operations that will now fall through, Dominion warned that they now expect operation earnings to be $3.37 to $3.63 a share. Their previous guidelines were issued between $4.25 to $4.60 share before the deal fell through.