Author Topic: Berkshire Hathaway Energy  (Read 5271 times)

Cigarbutt

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Re: Berkshire Hathaway Energy
« Reply #20 on: August 26, 2019, 01:27:30 PM »
Berkshire Hathaway Energy is the only subsidiary I know of where you can see the valuation that Buffett places on it.  Since Walter Scott is a minority shareholder and he periodically sells his shares to Berkshire Hathaway Energy, those transactions are reported in the Berkshire Hathaway Energy filings.  Scott's last reported sale was in Q1 2019.  He sold 447,712 shares for $293mm ($654 per share).  This transaction values BHE at approximately $50 billion.

Transactions in previous years suggest the following per share values....
2018 $602
2017 $542
2015 $480
2013 $350
2010 $225
2009 $210

He purchased MidAmerican for $35/share in 1999.  This equates to an annual rate of return of close to 16%.
Reviewing regulatory filings and the March 2019 fixed income presentation, it seems that the long term growth of earnings and reported equity (which includes goodwill) corresponds to the value-based long term redemption activity revolving around Mr. Scott's declining stake. No activity in Q2 2019 but, in Q1 2019, 447,712 shares were redeemed for $293 million, implying a $654 per share value and a 1.7 ratio to reported book value.
It looks like the future will look like the past. It seems to me that the future of private ownership of energy utilities includes a component of the increasing realization that infrastructure spending can and should be delegated to strong, reliable and private hands. 
BHE has relatively high exposure to Nevada and related wildfire risks but they interestingly note that the $risk is less because of lower concentrations of population in the interface areas.


Spekulatius

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Re: Berkshire Hathaway Energy
« Reply #21 on: August 26, 2019, 03:21:43 PM »
Berkshire Hathaway Energy is the only subsidiary I know of where you can see the valuation that Buffett places on it.  Since Walter Scott is a minority shareholder and he periodically sells his shares to Berkshire Hathaway Energy, those transactions are reported in the Berkshire Hathaway Energy filings.  Scott's last reported sale was in Q1 2019.  He sold 447,712 shares for $293mm ($654 per share).  This transaction values BHE at approximately $50 billion.

Transactions in previous years suggest the following per share values....
2018 $602
2017 $542
2015 $480
2013 $350
2010 $225
2009 $210

He purchased MidAmerican for $35/share in 1999.  This equates to an annual rate of return of close to 16%.
Awesome post. It gives us a great idea what BHE is worth right now. 9-10% return forever is a great deal and I think the longevity is what WEB is after in this case. A lot of business die over time or need to reinvent themselves, which sometimes works and something it does not. BHE probably doesn’t need to reinvent itself for the next 50 years.
To be a realist, one has to believe in miracles.

longinvestor

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Re: Berkshire Hathaway Energy
« Reply #22 on: October 05, 2019, 06:55:07 PM »
https://www.pacificorp.com/about/newsroom/news-releases/2019-draft-irp-increased-renewables-phased-coal-transition.html

October 18 is the date they target releasing the long term plan. Lots of investments.