tip toe in-?! Warren Buffett's Berkshire buys Dominion Energy natural gas

johnN

https://www-cnbc-com.cdn.ampproject.org/v/s/www.cnbc.com/amp/2020/07/05/warren-buffetts-berkshire-buys-dominion-energy-natural-gas-assets-in-10-billion-deal.html?amp_js_v=a3&amp_gsa=1&usqp=mq331AQFKAGwASA=#aoh=15939870378601&referrer=https://www.google.com&amp_tf=From %1$s&ampshare=https://www.cnbc.com/2020/07/05/warren-buffetts-berkshire-buys-dominion-energy-natural-gas-assets-in-10-billion-deal.html

Warren Buffett's Berkshire buys Dominion Energy natural gas assets in $10 billion deal

KEY POINTS
The conglomerate is spending $4 billion to buy the natural gas transmission and storage assets of Dominion Energy.
Including the assumption of debt, the deal totals almost $10 billion.
It's the first major purchase from Berkshire since the coronavirus pandemic and subsequent market collapse in March.
For Berkshire, the move greatly increases its footprint in the natural gas business.


With the purchase, Berkshire Hathaway Energy will
carry 18% of all interstate natural gas transmission in
the United States, up from 8% currently.




https://www.nasdaq.com/articles/be-fearful-when-others-are-greedy-2020-07-01

rforno

I dumped my D shares in the pre-market to lock in my major LTCGs.

I have 5 short put options strike 80 that I'll see what happens when the market opens.

rforno

EDIT: Much to my surprise, my order to buy back the short puts for a small credit fired just after the open. Now I can reassess things and plan a potential re-entry if I want later on.

rforno said:

I dumped my D shares in the pre-market to lock in my major LTCGs.

I have 5 short put options strike 80 that I'll see what happens when the market opens.

Mark

@rforno - what might you know about Dominion's gas assets that make them attractive to Buffett? TIA. I hold a wad of EPD and never felt much of a need to look elsewhere.

rforno

Not much, Mark. I never really looked too closely into D's NG aspirations with the pipeline.

I hold a *very* large slug of EPD as well and don't really need more pipelines. Frankly I think that's the sort of company Warren would buy given its range, reach, and 'moat' factors plus a very solid/capable management team.

Mark said:

@rforno - what might you know about Dominion's gas assets that make them attractive to Buffett? TIA. I hold a wad of EPD and never felt much of a need to look elsewhere.