Dominion Energy Inc. agreed to sell a 25% non-controlling equity interest in its Cove Point LNG facility to Brookfield Asset Management Inc. affiliate Brookfield Super-Core Infrastructure Partners LP for more than $2 billion.
The deal represents an implied enterprise value of $8.22 billion, excluding working capital, Dominion said in an Oct. 21 release. The company plans to use proceeds for general corporate purposes, including significantly reducing annual common equity financing.
Dominion Energy Cove Point LNG LP owns an LNG import, export and storage facility on the Chesapeake Bay in Lusby, Md., as well as a 136-mile pipeline. Dominion completed a $4.1 billion expansion to provide export services in 2018.
Dominion previously announced a plan to establish a permanent capital structure for Cove Point. The transaction is expected to close by the end of the year.
"The agreement highlights the compelling intrinsic value of Cove Point and allows us to efficiently redeploy capital toward our robust regulated growth capital programs," Thomas Farrell II, Dominion's chairman, president and CEO, said.
J.P. Morgan is acting as financial adviser to Dominion. McGuireWoods LLP served as legal counsel to Dominion, while Kirkland & Ellis LLP served as legal counsel to Brookfield.