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  • 3 months later...
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CovePoint was part of the Dominion purchase.  I see Pipelines as "Axes, Picks, and Shovels" of the oil/nat gas biz - great way to get exposure to the sector without taking on the commodity risk.  The shut down is probably Greg Abel investing some capital into the pipeline to make it run better - my guess.  

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1 minute ago, longterminvestor said:

CovePoint was part of the Dominion purchase.  I see Pipelines as "Axes, Picks, and Shovels" of the oil/nat gas biz - great way to get exposure to the sector without taking on the commodity risk.  The shut down is probably Greg Abel investing some capital into the pipeline to make it run better - my guess.  

 

I don't have any insight to why the operator is who it is, but the shutdown here is probably not capex related. Large energy facilities take turnarounds for maintenance often, usually either annually or biannually. 

 

You need to shut it down to inspect the pressure vessels, do the major service on compressor engines, etc.

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I get all of that.  I just find it really interesting that BHE is the operator, given that D owns 50%/majority, and BIP claims to be master operators.  BHE's operational expertise is second to none imho.  I'd like to see headquarters expand more into the regulated utility space smartly...who knows a possible distressed utility deal may come-up over the next few years.  

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  • 2 weeks later...

Does someone know the status of BHE's offer to provide Texas with a standby generation capability?  As of last May, it sounded like the offer was still on the table, but maybe others were underbidding.  Likely it is now clarified?  I haven't heard but surely some of you who follow energy topics more carefully will know.  My question: Do Texans have some actual (tangible, physical, not just financial or other compensating payments) energy security going into next winter, to offset risk of another loss of supply?

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No.  I havent heard anything regarding BHE's plan.  The way it is structured is brilliant.  I'd reminder everyone of the 9.9% regulated return.  You also have BHE WILLING to be fined if they cannot deliver on their commitments.  I really wish BHE was more aggressive with ONCOR several years ago.  That would have been a material transaction and benefited both customers and Berkshire overall.  Even still the D pipeline deal was done at a very attractive level still...

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