BG2008 Posted September 28, 2015 Share Posted September 28, 2015 Does anyone know what kind of EV/EBITDA multiple Berkshire paid for the pipelines that it purchased in 2002 from Dynergy. I'm trying to use Buffet's EV/EBITDA multiple to use as a bear case scenario to gauge how close are the public MLPs GPs and LPs trading relative to Buffet's purchase EV/EBITDA. On a P/Sale multiple, I estimated that Buffet paid about 6.25x P/S for Northern Natural. Nine month revenue was $201 at the time when Mid American bought the pipelines. I used a $300mm revenue full year figure as the $201 was likely not for all the days in 9 months as Dynegy bought the pipeline and then sold it fairly quickly to MidAmerican to raise liquidity. From BRK 2002 Annual Report Last year MEHC acquired two important gas pipelines. The first, Kern River, extends from Southwest Wyoming to Southern California. This line moves about 900 million cubic feet of gas a day and is undergoing a $1.2 billion expansion that will double throughput by this fall. At that point, the line will carry enough gas to generate electricity for ten million homes. The second acquisition, Northern Natural Gas, is a 16,600 mile line extending from the Southwest to a wide range of Midwestern locations. This purchase completes a corporate odyssey of particular interest to Omahans. From its beginnings in the 1930s, Northern Natural was one of Omaha’s premier businesses, run by CEOs who regularly distinguished themselves as community leaders. Then, in July, 1985, the company – which in 1980 had been renamed InterNorth – merged with Houston Natural Gas, a business less than half its size. The companies announced that t Link to comment Share on other sites More sharing options...
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