Buffett’s Company Pulls Out Of $1.3 Billion Natural Gas Pipeline Agreement

OMAHA, Neb. — The purchase of a natural gas pipeline from Dominion Energy by Warren Buffett’s firm has been canceled due to uncertainties over whether the agreement will be approved by regulators.

When the proposed purchase of Questar Pipelines was announced a year ago, it was also expected to contain $430 million of Dominion’s debt. Berkshire Hathaway Inc. will receive a $1.3 billion return. The energy business located in Richmond, Virginia, said it still intends to sell Questar and will seek to find a buyer by the end of the year. Dominion further stated that the decision will have no impact on its financial forecast.

Separate from the Questar pipeline transaction, Berkshire purchased Dominion’s natural gas transmission and storage assets for $2.7 billion last year, including about 5,500 miles of natural gas transmission pipes and 775 billion cubic feet of gas storage facilities. As part of the deal, Berkshire acquired $5.3 billion of Dominion debt.

The decision to pass on the Questar pipeline purchase lowers the value of one of Berkshire’s most significant purchases from the previous year. Berkshire Hathaway has failed to locate large purchases to employ its enormous $145.4 billion cash pile in recent years, instead, it has spent about $38 billion in its own shares since the beginning of 2020.

Berkshire Hathaway, located in Omaha, Nebraska, controls more than 90 firms, including many major utilities, the BNSF railroad, big insurance companies such as Geico, and a variety of retail and manufacturing businesses. Berkshire Hathaway also has significant shares in Apple, Bank of America, Coca-Cola, and other firms.