CenterPoint Energy to acquire gathering and processing assets in northeast Texas
Through two transactions, field services unit will increase fee based gathering and treating portfolio, and expand position in liquids-rich area
2012-06-19T05:00:00Z

HOUSTON - June 19, 2012 - CenterPoint Energy Field Services, LLC (CEFS), an indirect, wholly-owned natural gas gathering, processing and treating subsidiary of CenterPoint Energy, Inc. (NYSE: CNP), announced today that it has entered into two agreements to acquire gathering and processing assets located primarily in northeast Texas.

  • The first is an agreement to acquire gathering and processing assets from Prism Gas Systems I, L.P. (Prism), a wholly-owned subsidiary of Martin Midstream Partners L.P. (NASDAQ: MMLP), and certain other gathering and processing assets from MMLP’s Natural Gas Services segment for approximately $275 million, subject to certain adjustments. The assets to be acquired include Prism’s 50 percent interest in Waskom Gas Processing Company (Waskom). A subsidiary of CEFS currently owns the other 50 percent interest in Waskom.
  • CEFS has also entered into a 15-year agreement with Encana Oil & Gas (USA) Inc. (Encana), a subsidiary of Encana Corporation (NYSE: ECA), to gather and treat its natural gas production from the Amoruso and Hilltop fields located in Robertson and Leon counties in east Texas. In connection with entering into the gathering agreement, which includes volume commitments and acreage dedication, CEFS purchased Encana’s 139-mile Amoruso gathering systems for approximately $89 million. Amoruso currently has more than 200 million cubic feet per day of natural gas throughput primarily from the Deep Bossier and Cotton Valley Lime formations.

“We are very excited about these acquisitions, which will strategically increase our portfolio of gathering and processing assets,” said Greg Harper, group president of CenterPoint Energy’s Midstream businesses. “These transactions expand our capabilities in a liquids-rich production area and position us as the operator of key processing assets in northeast Texas.”

Prism Transaction

The assets to be acquired from Prism, located primarily in northeast Texas, include:

  • Prism’s 50 percent interest in Waskom, which includes a 320 million cubic feet per day natural gas processing facility, a 14,500 barrels per day fractionation plant, and the Harrison system, a 75 million cubic feet per day gathering system,
  • The Woodlawn plant and gathering system, a 30 million cubic feet per day gathering and processing system with 135 miles of gathering pipe, and
  • The McLeod, Hallsville and Darco gathering systems, which combine to gather and treat more than 40 million cubic feet of natural gas per day and are located near the other assets to be acquired in east Texas and northwest Louisiana.

“We have seen a significant increase in producer activity due to the improved economics of producing liquids-rich natural gas in the Cotton Valley field as well as other nearby formations,” said Bill May, division senior vice president and chief commercial officer of CenterPoint Energy’s Field Services business. “Waskom provides a competitive outlet for natural gas liquids, including ethane, as well as several take-away options for natural gas including our CenterPoint Energy Gas Transmission pipeline and direct access to our Perryville Hub™.”

The Prism transaction is subject to the satisfaction of certain closing conditions, including Hart, Scott, Rodino approval, and satisfactory completion of due diligence, and is expected to close in the third quarter of 2012.

Encana Agreement

Under the terms of the Encana gathering agreement, which includes volume commitments and acreage dedication, CEFS will expand the Amoruso systems in order to gather and treat additional volumes as necessary to support Encana’s future production within the dedicated area.

“We are excited to partner with Encana again and appreciate the confidence they have placed in our ability to meet their needs on a timely basis as they develop their properties in this region,” said May.

The Encana transaction closed on May 31, 2012.

CEFS owns and operates approximately 3,900 miles of gathering pipelines and processing plants that gather, treat and process approximately 2.6 billion cubic feet per day of natural gas from approximately 150 separate systems located in major producing fields in Arkansas, Louisiana, Oklahoma and Texas.

CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution, competitive natural gas sales and services, interstate pipelines, and field services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. Assets total more than $22 billion. With about 8,800 employees, CenterPoint Energy and its predecessor companies have been in business for more than 135 years. For more information, visit the website at www.CenterPointEnergy.com.

This news release includes forward-looking statements. Actual events and results may differ materially from those projected. The statements in this news release regarding the anticipated acquisition of the Prism assets, including the anticipated benefits and closing date of the Prism acquisition, the anticipated benefits of the long-term gathering agreement with Encana, and other statements that are not historical facts are forward-looking statements. Factors that could affect actual results include the satisfaction or waiver of the conditions to closing the Prism transaction, the receipt of applicable regulatory approvals, post-signing due diligence, and the termination rights of the parties under the purchase agreement for the Prism transaction, the effects of competition, the timing and extent of changes in commodity prices, and other factors discussed in CenterPoint Energy’s and its subsidiaries’ Form 10-Ks for the fiscal year ended December 31, 2011, and form 10-Qs for the quarterly period ended March 31, 2012, and other filings with the SEC.

some_text CenterPoint Energy

View More Tweets ›

 Recent News

 

 

River Oaks resident, Kimberly Johnston, named one of “Houston’s 50 Most Influential Women of 2016” by Houston Woman Magazine

HOUSTON – February 27, 2017 – CenterPoint Energy Tax vice president and River Oaks resident, Kimberly Johnston, has been named one of "Houston's 50 Most Influential Women of 2016" by Houston Woman Magazine. The magazine staff selected honorees from nominations submitted by subscribers.

Johnston has twenty five years of finance and tax experience with Fortune 500 companies, Big 4 accounting firms, and the U.S. Treasury in the areas of strategy, tax policy, audit negotiations, regulatory proceedings, mergers and acquisitions, and SEC matters. She is the founder of Good Works Houston, a community-based organization focused on tackling upward mobility challenges by growing innovative social enterprises. She also serves as a member of the Convergence Center for Policy Resolution convening leaders solving problems across the political divide on critical national issues.

Her inspiration to form Good Works Houston came from her American Leadership Forum experience convening Houstonian leaders to serve the public good.  "I became seriously concerned about Houston's growing social issues which pushed me to think differently about our solutions," said Johnston.  She hopes to foster a more vibrant community of leaders who are motivated to empower Houstonians in need by investing their talents in growing sustainable social enterprises.

"Kimberly is a great professional and a true leader for our company. She exemplifies CenterPoint core values and reflects the competitive spirit that so many of our colleagues demonstrate in their communities," said Bill Rogers, executive vice president and chief financial officer for CenterPoint Energy.

According to Beverly Denver, publisher of Houston Woman Magazine, "Those selected as Houston's 50 Most Influential Women of 2016 are individuals with vast networks of social and professional connections. They have earned an enviable reputation for their expertise in a particular field or arena. They are knowledgeable, credible and trustworthy. The thoughts and actions of these women influence the thoughts and actions of others. It is our distinct pleasure to introduce these remarkable women to our readers and to others in our community."

Kimberly, her husband, Michael, and four adult children are dedicated to build a brighter future for the Houston community.

About Houston's 50 Most Influential Women of the Year

Since 2008, Houston Woman Magazine has published an annual, keepsake edition featuring Houston's 50 Most Influential Women of the Year. Those previously recognized as Women of Influence by Houston Woman Magazine are listed, by year selected, online at www.houstonwomanmagazine.com/50women/.

About CenterPoint Energy

CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution and energy services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. The company also owns a 54.1 percent limited partner interest in Enable Midstream Partners, a publicly traded master limited partnership it jointly controls with OGE Energy Corp.,  which owns, operates and develops natural gas and crude oil infrastructure assets. With more than 7,800 employees, CenterPoint Energy and its predecessor companies have been in business for more than 140 years.

Forest Lake native Carol Donnellan receives SGA Humanitarian Award for lifesaving efforts

MINNEAPOLIS – February 16, 2017 – CenterPoint Energy employee and Forest Lake native, Carol Donnellan, was recently selected by the Southern Gas Association (SGA) to receive the Humanitarian Award in recognition of her life saving efforts. The award is designed to recognize natural gas industry employees(s) whose Good Samaritan actions promote human welfare and community responsibility.

Donnellan was awarded for her efforts in helping save an unresponsive driver in November 2016 who was slumped over in his vehicle at a green light in an intersection.  Concerned for his safety and since the driver appeared to be experiencing a medical emergency, she immediately pulled over and dialed 911.

 Donnellan, a utility person-meter reader for CenterPoint Energy in Coon Rapids, says she is very grateful for the award.  "To me, helping another where I live and work is putting the 'golden rule' of doing the right things for people into action," said Donnellan.  "The real heroes are the local police officers who arrived on the scene really quickly to come to our aid."

"This award was given to Carol for demonstrating compassion and competence and exceeding normal expectations, in assisting individuals in need," said Cheryl Johnson, Donnellan's supervisor. 

"At CenterPoint Energy, we put safety first in everything we do – not only for our employees but also our communities. Carol's actions support CenterPoint Energy's core values including initiative," added Brad Tutunjian, vice president of Gas Operations for CenterPoint Energy.   "We are extremely proud of her."

To learn more about what CenterPoint Energy is doing in your community, visit CenterPointEnergy.com/Community.

CenterPoint Energy designated a 2016 Residential Customer Champion in Utility Trusted Brand & Engagement™ Residential study

MINNEAPOLIS - February 2, 2017 - CenterPoint Energy achieved top tier rankings among U.S. natural gas utilities throughout 2016 in the Midwest and South regions, designating the company a 2016 Residential Customer Champion by Cogent Reports. The Customer Champions list was compiled from year-end Engaged Customer Relations (ECR) scores and ratings from consumers surveyed for the annual Utility Trusted Brand & Customer Engagement™ study. The results are based on responses from more than 52,000 residential ratepayers for 130 leading gas and electric utilities throughout the U.S.  The study measures and tracks brand trust, customer engagement, satisfaction and relationship strength among residential customers.

"Over the past several years, we have made substantial investments to further enhance safety, reliability and service," said Gregg Knight, senior vice president and chief customer officer for CenterPoint Energy. "While these rankings confirm that our customers appreciate our efforts, we plan to continue working hard to improve our systems and service and earn our customers' trust."

 Rick Zapalac, senior vice president of Gas Operations for CenterPoint Energy agrees and added, "Whether it's in the field, in the office or on the phones, it takes a team of employees all aligned around the goal of serving the customer, to provide the kind of service reflected in these scores.  I would like to thank our employees for their hard work and dedication."

This is the third year Cogent Reports™ has computed Customer Champion scores for individual utilities and recognized Customer Champions. In October 2015, CenterPoint Energy ranked third in the Midwest for environmental dedication by Cogent Reports.  In April 2014, CenterPoint Energy was also ranked first in operational satisfaction by Cogent Reports™.  

Cogent Reports™, a division of Market Strategies International, announced customer rankings for the top tier electric, natural gas and combination providers in four regions across the U.S. The ranking is based on how CenterPoint Energy performed compared to other large utilities in the U.S.

CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution and energy services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma and Texas. The company also owns a 55.4 percent limited partner interest in Enable Midstream Partners, a publicly traded master limited partnership it jointly controls with OGE Energy Corp., which owns, operates and develops natural gas and crude oil infrastructure assets. With more than 7,800 employees, CenterPoint Energy and its predecessor companies have been in business for more than 140 years. For more information, visit the website at CenterPointEnergy.com.

 

CenterPoint Energy receives EEI’s Emergency Recovery Award

Houston, TX - January 16, 2017 – The Edison Electric Institute (EEI) recently presented CenterPoint Energy with the association's "Emergency Recovery Award" for its outstanding power restoration efforts after severe thunderstorms and flooding hit Houston in April 2016.

 The award is presented twice annually to EEI member companies to recognize their extraordinary efforts to restore power to customers after service disruptions caused by severe weather conditions or other natural events. The winners were chosen by a panel of judges following an international nomination process, and the awards were presented during the winter EEI Board of Directors and CEO Meeting.

 On April 17, 2016, potent thunderstorms brought torrential rain and caused severe flooding in the greater Houston area. CenterPoint Energy restored 90 percent of outages within 27 hours, and resumed fully normal operations within 60 hours of the storm. CenterPoint Energy crews devoted 15,827 hours to this recovery operation.

 "The tireless work by CenterPoint Energy crews to restore service following a violent spring storm exemplifies our industry's commitment to customer service and safety," said EEI President Tom Kuhn. "The courageous and dedicated CenterPoint Energy crews who faced dangerous conditions in the wake of this storm are greatly deserving of this terrific recognition."

 "Responding in the aftermath of severe weather is part of the job at an electric company," said Kenny Mercado, senior vice president of Electric Operations for CenterPoint Energy. "Our employees take that responsibility very seriously and we are proud to be recognized by EEI for the tremendous effort our employees made to restore service to our customers as quickly and safely as possible following the torrential flooding we experienced last April."

CenterPoint Energy subsidiary closes on $300 million of general mortgage bonds

Houston – January 12, 2017 - CenterPoint Energy Houston Electric, LLC (Houston Electric), an indirect, wholly-owned subsidiary of CenterPoint Energy, Inc. (NYSE: CNP), today closed on 3.00 % general mortgage bonds totaling $300 million due February 1, 2027. Net proceeds will be for general limited liability company purposes.

Mizuho Securities, Regions Securities LLC and US Bancorp served as joint bookrunners with The Williams Capital Group, L.P. and Wolfe Capital Markets and Advisory as Co-Managers. 

"We were pleased to work with such a distinguished and diverse group of banks to help finance our growth and capital investment requirements in our Houston service territory," said Tracy Bridge, executive vice president and president of CenterPoint Energy's Electric Division.

This news release does not constitute an offer to sell, or the solicitation of any offer to buy, any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering would be unlawful.

This news release includes forward-looking statements. Actual events and results may differ materially from those projected.  The statements in this news release regarding the use of proceeds from the offering and other statements that are not historical facts are forward-looking statements. Factors that could affect actual results include the timing and impact of future regulatory and legislative decisions, effects of competition, weather variations, changes in business plans, financial market conditions and other factors discussed in Houston Electric's Form 10-K, as amended, for the period ended December 31, 2015, Houston Electric's Form 10-Qs for the periods ended March 31, 2016, June 30, 2016 and September 30, 2016 and Houston Electric's other filings with the Securities and Exchange Commission. A written prospectus may be obtained by visiting EDGAR on the SEC Website at https://www.sec.gov/.

CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution and energy services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. The company also owns a 54.1 percent limited partner interest in Enable Midstream Partners, a publicly traded master limited partnership it jointly controls with OGE Energy Corp.,  which owns, operates and develops natural gas and crude oil infrastructure assets. With more than 7,800 employees, CenterPoint Energy and its predecessor companies have been in business for more than 140 years.