Dominion Widens Its Economic Competitive Advantage, i.e. “Moat”

Last July we were introduced to the concept of a “wide economic moat” (see Marcellus Shale Gives Dominion Unstoppable Competitive Advantage). What is it? According to Investopedia, a wide economic moat 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 call it being so far ahead of the pack no one else can catch up. Last July, a Morningstar analyst wrote about Dominion’s wide economic moat. The reason for that moat? “[N]otably the Atlantic Coast Pipeline and Cove Point LNG facility.” That is, because of the Marcellus Shale. The Morninstar analyst is back, writing more about Dominion’s wide moat getting wider. Why? Certainly the Marcellus/Utica remains front and center. But the analyst also says Dominion’s purchase of Questar, with a pipeline network in the West, is helping too…

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