NEW YORK - Stonepeak, an alternative investment firm, has entered into an agreement to acquire a 50% interest in the Coastal Virginia Offshore Wind project (CVOW) from Dominion Energy (NYSE: NYSE:D). The partnership aims to establish what is anticipated to be the largest offshore wind farm in the United States and one of the largest globally upon its completion.
CVOW, located 27 miles off the coast of Virginia Beach, Virginia, is a 2.6-gigawatt offshore wind project designed to meet the energy needs of approximately 660,000 homes. Dominion Energy initiated the development of CVOW in 2013, with offshore construction expected to begin this spring and completion targeted by the end of 2026. The project is projected to significantly reduce carbon emissions, equating to the removal of 1 million cars from the road annually.
Rob Kupchak, Senior Managing Director at Stonepeak, expressed enthusiasm for the partnership, emphasizing Stonepeak's global renewable strategy and confidence in the project's development. Dominion Energy will maintain control over the daily operations and construction of CVOW, with Stonepeak contributing its expertise in large-scale renewable and energy infrastructure projects, including offshore wind.
The transaction awaits customary and regulatory approvals and is slated for completion by the end of 2024. Legal advisory for Stonepeak was provided by Vinson & Elkins LLP, while Mizuho Securities USA and Santander (BME:SAN) US Capital Markets LLC served as co-financial advisors.
Dominion Energy, headquartered in Richmond, Virginia, serves about 7 million customers across 15 states and is focused on providing sustainable energy solutions. The company has committed to achieving Net Zero emissions by 2050.
This news is based on a press release statement.
InvestingPro Insights
As Dominion Energy (NYSE: D) commits to leading the charge in sustainable energy with the Coastal Virginia Offshore Wind project, investors are closely watching the company's financial health and performance metrics. According to InvestingPro, Dominion Energy operates with a notable debt burden, which is an essential consideration for stakeholders. However, the company also boasts a strong track record of returning value to shareholders, having maintained dividend payments for an impressive 42 consecutive years. This consistency underscores the company's commitment to its shareholders and provides a degree of financial predictability amidst the capital-intensive nature of energy infrastructure projects.
InvestingPro data highlights several key financial metrics for Dominion Energy as of Q3 2023. The company's market capitalization stands at $38.74 billion, reflecting its significant presence in the energy sector. A P/E ratio of 23.47 suggests that investors are willing to pay a higher price for earnings, potentially due to the company's established market position and future growth prospects. Moreover, Dominion Energy's revenue growth over the last twelve months was 27.71%, indicating robust business expansion, which may be further propelled by projects like CVOW.
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