We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ETFs in Focus as Buffett Gains Dominion Energy's Stake in LNG Project
Read MoreHide Full Article
Berkshire Hathaway, Warren Buffett's investment vehicle, has made a significant move in the energy sector by acquiring Dominion Energy's (D - Free Report) stake in the Cove Point LNG project located in Maryland. The purchase, costing Berkshire $3.3 billion, has increased the company's ownership of Cove Point to 75%, with the remaining stake held by Brookfield Infrastructure Partners, as reported by Bloomberg.
Cove Point LNG is a prominent liquefied natural gas (LNG) facility with an annual capacity of over 5 million tons. The majority of this capacity has been contracted on a long-term basis with established buyers such as Tokyo Gas Co. and Sumitomo Corp. This acquisition by Berkshire Hathaway demonstrates Buffett's confidence in the potential of the LNG market and positions the company to benefit from the growing demand for LNG both domestically and globally.
U.S. LNG Growth and Europe's Demand
The acquisition of Dominion Energy's stake in Cove Point LNG comes at an opportune time as U.S. LNG has become one of the fastest-growing sectors in global energy. Last year, Europe experienced a gas shortage due to Russia cutting off supply in response to EU sanctions. As a result, U.S. LNG emerged as the primary source of gas for the continent. While supply in Europe is relatively stable for now, concerns remain about potential tightening as winter approaches, especially with increased competition from Asian LNG importers.
Expanding LNG Projects in the United States
Currently, the United States has only seven LNG exporting projects. However, there are projections for a significant capacity increase that could position the U.S. as the world's largest exporter of LNG. Eight new LNG projects are currently under construction, set to add a combined annual production capacity of 86 million tons, according to Reuters.
ETFs in Focus
Against this backdrop, below we highlight a few Dominion Energy-heavy ETFs that could benefit from Buffett’s move.
BNY Mellon Global Infrastructure Income ETF (BKGI - Free Report) – Dominion Energy has about 7.26% weight
Utilities Select Sector SPDR Fund (XLU - Free Report) – Dominion Energy has about 4.54% weight
Fidelity MSCI Utilities Index ETF (FUTY - Free Report) – Dominion Energy has about 4.02% weight
Vanguard Utilities ETF (VPU - Free Report) – Dominion Energy has about 3.94% weight
(Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.)
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ETFs in Focus as Buffett Gains Dominion Energy's Stake in LNG Project
Berkshire Hathaway, Warren Buffett's investment vehicle, has made a significant move in the energy sector by acquiring Dominion Energy's (D - Free Report) stake in the Cove Point LNG project located in Maryland. The purchase, costing Berkshire $3.3 billion, has increased the company's ownership of Cove Point to 75%, with the remaining stake held by Brookfield Infrastructure Partners, as reported by Bloomberg.
Cove Point LNG is a prominent liquefied natural gas (LNG) facility with an annual capacity of over 5 million tons. The majority of this capacity has been contracted on a long-term basis with established buyers such as Tokyo Gas Co. and Sumitomo Corp. This acquisition by Berkshire Hathaway demonstrates Buffett's confidence in the potential of the LNG market and positions the company to benefit from the growing demand for LNG both domestically and globally.
U.S. LNG Growth and Europe's Demand
The acquisition of Dominion Energy's stake in Cove Point LNG comes at an opportune time as U.S. LNG has become one of the fastest-growing sectors in global energy. Last year, Europe experienced a gas shortage due to Russia cutting off supply in response to EU sanctions. As a result, U.S. LNG emerged as the primary source of gas for the continent. While supply in Europe is relatively stable for now, concerns remain about potential tightening as winter approaches, especially with increased competition from Asian LNG importers.
Expanding LNG Projects in the United States
Currently, the United States has only seven LNG exporting projects. However, there are projections for a significant capacity increase that could position the U.S. as the world's largest exporter of LNG. Eight new LNG projects are currently under construction, set to add a combined annual production capacity of 86 million tons, according to Reuters.
ETFs in Focus
Against this backdrop, below we highlight a few Dominion Energy-heavy ETFs that could benefit from Buffett’s move.
BNY Mellon Global Infrastructure Income ETF (BKGI - Free Report) – Dominion Energy has about 7.26% weight
Utilities Select Sector SPDR Fund (XLU - Free Report) – Dominion Energy has about 4.54% weight
Fidelity MSCI Utilities Index ETF (FUTY - Free Report) – Dominion Energy has about 4.02% weight
Vanguard Utilities ETF (VPU - Free Report) – Dominion Energy has about 3.94% weight
(Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.)