Oct. 6 (Bloomberg) -- OGE Energy Corp., the owner of Oklahoma City’s electric and natural-gas utility, said private-equity firm ArcLight Capital Partners LLC will pay $183 million for a 9.9 percent stake in its Enogex gas-pipeline and processing unit to help fund expansion.
The agreement allows ArcLight, with offices in Boston, London and New York, to expand its interest in the future, Oklahoma City-based OGE said today in a statement. OGE will include its energy-marketing unit, OGE Energy, with Enogex. The deal is expected to close by Nov. 1.
Enogex is building a $124 million gas-processing plant, extending pipelines and adding shipping capacity to handle rising output from western Oklahoma and the Texas Panhandle, OGE Chief Executive Officer Peter Delaney said on an Aug. 5 earnings call. Planned spending through 2011 at the unit rose by $140 million in the second quarter, he said. The unit’s net income rose 39 percent to $22.3 million from the year-earlier quarter.
Basins including the Cana field in Canadian County, Oklahoma, and the Granite Wash formation in Texas and Oklahoma produce natural-gas rich in liquids such as ethane and propane, which sell at a premium to dry gas after they are extracted by processors such as Enogex.
OGE rose $1.64, or 4 percent, to $42.55 as of 4:04 p.m. in New York Stock Exchange composite trading, for an increase of 15 percent this year.
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