CenterPoint to Form Midstream Partnership With OGE, Arclight
Stock Chart for OGE Energy Corp (OGE)
Centerpoint Energy Inc. (CNP) agreed to form a master limited partnership with a jointly owned subsidiary of OGE Energy Corp. (OGE) and ArcLight Capital Partners LLC, combining pipeline and storage assets in Oklahoma, Texas, Arkansas and Louisiana.
Centerpoint, a Houston-based utility owner, and OGE Energy, an Oklahoma City-based utility owner, plan an initial public offering of equity in the partnership after the transaction closes, which is expected in the second or third quarter of 2013, according to a statement.
Centerpoint will have a 59 percent interest in the partnership, OGE Energy will have a 28 percent interest and ArcLight, a private equity investor, will hold a 13 percent interest, the companies said today in a joint statement. Centerpoint will hold a 40 percent interest and OGE Energy will have a 60 percent interest in distribution payments made by the new company to the general partner.
“We are very excited about creating a substantial, growth- oriented midstream company,” David M. McClanahan, president and chief executive officer of Centerpoint, said in a statement.
Centerpoint said last month it was exploring forming a partnership of its midstream assets, located near gas-rich shale formations, as a way to fund additional growth. The new partnership will own 8,400 miles of interstate pipelines, 2,300 miles of intrastate pipelines and have more than 11,000 miles of gathering lines.
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