Brookfield to take 25% interest in Cove Point for over $2 billion

Dominion Energy today announced it will transfer a 25% non-controlling equity interest in the Cove Point liquefied natural gas facility in Maryland to Brookfield Asset Management for just over $2 Billion in cash.

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

Dominion Energy noted the deal is part of its plan to establish a permanent capital structure for Cove Point. The Cove Point LNG import, export and storage facility is located on the western shore of the Chesapeake Bay in Lusby, Maryland. It includes a 136-mile pipeline that interconnects the facility with the interstate pipeline system. In 2018 the company completed a $4.1 billion expansion to enable natural gas exports.

The deal has an implied enterprise value of $8.22B, excluding working capital, and proceeds will be used to reduce annual common equity financing according to a Dominion Energy statement.