McGuireWoods Advises Dominion Energy in $2 Billion Recapitalization of Gas Facility

October 23, 2019

McGuireWoods advised Dominion Energy in a recapitalization of the company’s Cove Point liquefied natural gas facility in Lusby, Maryland, by an affiliate of Brookfield Asset Management.

The deal calls for Dominion Energy to transfer a 25 percent, non-controlling equity interest in Cove Point to Brookfield Super-Core Infrastructure Partners, a fund managed by Brookfield Asset Management, in exchange for cash consideration of just over $2 billion, excluding working capital.

Dominion Energy Cove Point LNG, LP owns a liquefied natural gas import, export and storage facility and a 136-mile pipeline that connects the facility with an interstate system. The facility serves customers in the United States, India and Japan. In 2018, Dominion Energy Cove Point LNG completed a $4.1 billion expansion to enable natural gas exports. Dominion Energy will retain operational control of the facility and its services.

Partner Jay Hughes and deputy managing partner Joanne Katsantonis led the McGuireWoods deal team, which included Colin Bumby, James Gross, Will Tysse, Jon Neal, Emily Winbigler, Marvin Rogers and Ben Iselin. Katherine DeLuca, Jane Whitt Sellers and Emily Blair also assisted in the transaction.

“We were pleased to represent Dominion Energy in connection with another significant transaction that advances the company’s strategic priorities and demonstrates McGuireWoods’ substantial M&A capabilities in the energy sector,” Hughes said.

“This was a team effort by lawyers from multiple practices, showing the strength of our collaborative, industry-focused approach to client service,” Katsantonis added.

Earlier this year, McGuireWoods served as legal adviser to Dominion Energy in finalizing its $13.4 billion merger with South Carolina-based SCANA Corporation. The firm also represented Dominion Energy in completing a merger agreement with Dominion Energy Midstream Partners.

McGuireWoods’ multidisciplinary energy team includes more than 200 lawyers who work across all sectors of the industry. The firm consistently ranks among the top law firms in highly respected league tables for M&A deals involving U.S. companies.