• 15 mins DOE Seeks To Boost Usage Of Carbon Capture Tech
  • 1 hour Taxpayers Likely To Pick Up The Growing Tab For DAPL Protests
  • 4 hours WTI At 7-Month High On Supply Optimism, Kurdistan Referendum
  • 10 hours Permian Still Holds 60-70 Billion Barrels Of Recoverable Oil
  • 15 hours Petrobras Creditors Agree To $6.22 Billion Debt Swap
  • 19 hours Cracks Emerge In OPEC-Russia Oil Output Cut Pact
  • 23 hours Iran Calls On OPEC To Sway Libya, Nigeria To Join Cut
  • 1 day Chevron To Invest $4B In Permian Production
  • 1 day U.S.-Backed Forces Retake Syrian Conoco Gas Plant From ISIS
  • 1 day Iraq Says Shell May Not Quit Majnoon Oilfield
  • 4 days Nigerian Oil Output Below 1.8 Million BPD Quota
  • 4 days Colorado Landfills Contain Radioactive Substances From Oil Sector
  • 4 days Phillips 66 Partners To Buy Phillips 66 Assets In $2.4B Deal
  • 4 days Japan Court Slams Tepco With Fukushima Damages Bill
  • 4 days Oil Spills From Pipeline After Syria Army Retakes Oil Field From ISIS
  • 4 days Total Joins Chevron In Gulf Of Mexico Development
  • 4 days Goldman Chief Urges Riyadh To Get Vision 2030 Going
  • 4 days OPEC Talks End Without Recommendation On Output Cut Extension
  • 4 days Jamaican Refinery Expansion Stalls Due To Venezuela’s Financial Woes
  • 5 days India In Talks to Acquire 20 Percent Of UAE Oilfield
  • 5 days The Real Cause Of Peak Gasoline Demand
  • 5 days Hundreds Of Vertical Oil Wells Damaged By Horizontal Fracking
  • 5 days Oil Exempt In Fresh Sanctions On North Korea
  • 5 days Sudan, South Sudan Sign Deal To Boost Oil Output
  • 5 days Peruvian Villagers Shut Down 50 Oil Wells In Protest
  • 5 days Bay Area Sues Big Oil For Billions
  • 5 days Lukoil Looks To Sell Italian Refinery As Crimea Sanctions Intensify
  • 6 days Kurdistan’s Biggest Source Of Oil Funds
  • 6 days Oil Prices On Track For Largest Q3 Gain Since 2004
  • 6 days Reliance Plans To Boost Capacity Of World’s Biggest Oil Refinery
  • 6 days Saudi Aramco May Unveil Financials In Early 2018
  • 6 days Has The EIA Been Overestimating Oil Production?
  • 6 days Taiwan Cuts Off Fossil Fuels To North Korea
  • 6 days Clash In Oil-Rich South Sudan Region Kills At Least 25
  • 6 days Lebanon Passes Oil Taxation Law Ahead Of First Licensing Auction
  • 7 days India’s Oil Majors To Lift Borrowing To Cover Dividends, Capex
  • 7 days Gulf Keystone Plans Further Oil Output Increase In Kurdistan
  • 7 days Venezuela’s Crisis Deepens As Hurricane Approaches
  • 7 days Tension Rises In Oil-Rich Kurdistan
  • 7 days Petrobras To Issue $2B New Bonds, Exchange Shorter-Term Debt
Baghdad Asks World To Stop Buying Kurdish Oil

Baghdad Asks World To Stop Buying Kurdish Oil

The Iraqi government has asked…

Warren Buffett’s MidAmerican Energy Holdings Buys NV Energy for $5.6 Billion

MidAmerican Energy Holdings, the energy unit of Warren Buffett’s Berkshire Hathaway investment company will buy Nevada’s largest utility, NV Energy, for $5.6 billion.

The announcement was made on Wednesday that MidAmerican Energy Holdings will become the world’s largest utility owner, serving 8.4 million consumers, after it purchases NV Energy Inc. for $23.75 a share, a 23% premium on the day’s closing price.

Greg Abel, the CEO of MidAmerican, explained that they’re “investing in a management team we believe in, we’re investing in quality assets. We see, fundamentally, there will be underlying economic growth in Nevada.”

Buffett has been looking for capital intensive businesses in which to invest as looks to spend parts of the $49.1 billion in cash that his company had at the end of March.

Related article: Canada Putting Too Many Eggs in Oil Basket

 Berkshire Hathaway was interested in investing in renewable energy companies after it deemed that utilities had become over-valued. CFO Patrick Goodman, said at the end of last year that, “as a cash buyer, we will be looking at utilities if pricing comes in a bit.”

Valuations must have fallen sufficiently for them to accept this deal, a deal that analysts at Wells Fargo & Co. believe “could serve to remind investors of the attractive fundamentals underlying the regulated electric utilities.”

Buffett has always liked utilities, stating that they offer good earnings, even during times of economic difficulty, and will always provide decent returns on capital invested, as long as the infrastructure is maintained to meet customer’s needs. In 2006 Buffett remarked that owning utilities was “not a way to get rich,” but “it’s a way to stay rich.”

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News