• 3 minutes Shale Oil Fiasco
  • 7 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 12 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 16 minutes Global Debt Worries. How Will This End?
  • 3 hours americavchina.com
  • 29 mins Greta named Time Magazine "Person of the Year"
  • 34 mins DUMB IT DOWN-IMPEACHMENT
  • 6 hours Tories on course to win majority
  • 7 hours Winter Storms Hitting Continental US
  • 1 day China Burns More Coal than the Rest of the World !
  • 10 hours 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 2 hours Aramco Raises $25.6B in World's Biggest IPO
  • 6 hours WTO is effectively neutered. Trump *already* won the trade war against China and WTO is helpless to intervene
  • 1 day POTUS Trump signs the HK Bill
Jen Alic

Jen Alic

 

More Info

Premium Content

Relentless Buffett Woos Nevada

Nevada’s officials are breaking out the champagne with the news that investor extraordinaire Warren Buffett is acquiring the state’s electric monopoly, NV Energy, for $5.6 billion. 

Even more cause for celebration was the fact that Buffet agreed to pay 23% more per share ($23.75) than the energy monopoly was worth at closing yesterday ($19.28).

It’s a long-term investment in the state of Nevada, as Buffett puts it, and a good buy because it is, after all, a monopoly—one that earned $330 million over the past 12 months. This was in part boosted by a 2011 rate increase passed by the Public Utilities Commission—effective as of 2012.

Related article: Will Washington Allow US Companies to Export Natural Gas?

What this means for Buffett’s bigger picture is that his MidAmerican Energy Holding Co. will officially become the largest US utility owner, serving 8.4 million customers, according to Bloomberg. 

The deal should be finalized by the end of Q1 2014, and will boost MidAmerican’s assets to $66 billion. The company’s utility stocks reached a five-year high in April this year, but then decline since.

The news of Buffett’s acquisition deal caused NV Energy to rise 22% in New York yesterday, to $23.59 in a self-fulfilling prophecy based on Buffett’s purchase price.  This was the biggest rise for NV Energy in a decade.

Does it mean that regulated utilities are more attractive than we thought? Well, at least if Buffett’s behind it.

By. Jen Alic of Oilprice.comcom




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play