Dominion Energy, a power and energy company, announced on Monday that it has reached an agreement to sell its 50% partner interest in the gas liquefaction facility Cove Point to Berkshire Hathaway Energy for $3.5 billion. The sale comes as Dominion Energy undergoes a business review and aims to focus on its state-regulated utility operations.
The proceeds from the transaction will be used to pay off debt, including the existing $2.3 billion term loan secured by Dominion Energy’s noncontrolling interest in Cove Point, which is situated in Maryland.
According to Chief Executive Robert Blue, the divestment aligns with Dominion Energy’s strategy to prioritize its core businesses. He stated that the company considers its investment in Cove Point as “non-core” and added that the sale presents an opportunity to reduce variable rate debt and strengthen the company’s balance sheet.
Dominion Energy’s current business review, which was announced in November 2022, is still ongoing. The company’s shares rose by 0.3% to $51.75 in after-hours trading.