Marcellus Shale Gives Dominion Unstoppable Competitive Advantage

wide moatEver hear of a “wide economic moat?” No, we hadn’t either. That is, until we read a Morningstar analyst writing about mighty utility and midstream giant Dominion. A “wide economic moat,” according to Investopedia, is “A type of sustainable competitive advantage that a business possesses that makes it difficult for rivals to wear down its market share and profit. The term is derived from the water filled moats that surrounded medieval castles.” Makes sense. We’d call it being so far ahead of the pack no one else can catch up. Whatever metaphor floats your boat. The interesting part (for MDN) in the Morningstar analysis of Dominion is *why* they are head and shoulders above their midstream and utility peers. Why? “[N]otably the Atlantic Coast Pipeline and Cove Point LNG facility.” That is, because of the Marcellus Shale. The analyst predicts Cove Point LNG will be the only LNG export facility on the East Coast. That would certainly qualify as a competitive advantage for Dominion…

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