Why Warren Buffett jumped into the midstream

Abstract

Last year Mid-America Energy Holdings, which is 80% owned by Berkshire Hathaway, acquired two midstream prizes: 1. Northern Natural Gas Co. for $928 million, and 2. Kern River Transmission Co. for $450 million. The private Midwestern utility holding company backed by investor Warren Buffett jumped into the disarray of the natural gas pipeline business because change creates opportunity.