CenterPoint Energy OGE Energy Corp and ArcLight Capital close on midstream
2013-05-01T05:00:00Z
  • Partnership can begin to benefit from enhanced scale, and operational and geographic diversification
  • Partnership names initial board members

HOUSTON, OKLAHOMA CITY and BOSTON - May 1, 2013 - CenterPoint Energy, Inc. (NYSE: CNP), OGE Energy Corp. (NYSE: OGE) and ArcLight Capital Partners, LLC (ArcLight) announced today that they have closed on the formation of the previously announced partnership that includes CenterPoint Energy’s interstate pipelines and field services businesses and the midstream business of Enogex LLC. The partnership will be managed by a general partner whose governance will be shared by CenterPoint Energy and OGE on a 50/50 basis.

“We are pleased that timely HSR approval has allowed us to promptly close this transaction. We are working hard to begin to realize the benefits of the partnership’s enhanced scale, broad geographic reach and expanded capabilities,” said David M. McClanahan, president and chief executive officer of CenterPoint Energy. “This new company will be a significant participant in the rapidly growing midstream market.”

“Our plans for an initial public offering in the form of a public master limited partnership are on track,” said Pete Delaney, chairman, president and chief executive officer of OGE Energy. “Integration planning led by executives from CenterPoint Energy and Enogex will continue as we begin today to implement the partnership to capture identified opportunities.”

The new partnership has combined assets of nearly $11 billion. It owns and operates 8,400 miles of interstate pipelines with nearly 9 billion cubic feet per day of transport capacity and nearly 2,300 miles of intrastate pipelines. It also has more than 11,000 miles of gathering lines, which in 2012 moved nearly 4 billion cubic feet of natural gas per day. Additionally, it has more than 90 billion cubic feet of natural gas storage capacity and 11 major processing plants with nearly 2 billion cubic feet per day of inlet capacity.

CenterPoint Energy, OGE Energy and ArcLight hold approximately 58.3 percent, 28.5 percent and 13.2 percent limited partner interests in the partnership, respectively. CenterPoint Energy and OGE Energy also will own 40 percent and 60 percent interests, respectively, in any incentive
distribution rights held by the general partner.

In connection with the formation of the partnership, CenterPoint Energy has designated McClanahan and Gary L. Whitlock, executive vice president and chief financial officer of CenterPoint Energy, and OGE has designated Delaney and Sean Trauschke, vice president and chief financial officer of OGE, as their initial representatives on the board of directors of the general partner of the partnership.

While the partnership’s leadership team is being assembled, CenterPoint Energy’s C. Gregory Harper, senior vice president and group president, Midstream Operations, and Enogex’s Keith Mitchell, president, will continue to be responsible for each company’s respective midstream operations and will work closely together to capture partnership opportunities.

In connection with the closing, the partnership (i) entered into a $1.05 billion three-year senior unsecured term loan facility, (ii) repaid $1.05 billion of intercompany indebtedness owed to CenterPoint Energy’s wholly owned subsidiary, CenterPoint Energy Resources Corp., and (iii) entered into a $1.4 billion senior unsecured revolving credit facility.

CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution and competitive natural gas sales and services operations. The company serves more than 5 million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. The company also owns a 58.3 percent limited partner interest in a midstream partnership it jointly controls with OGE Energy Corp. with operations in major natural gas and liquids-rich producing areas of Oklahoma, Texas, Arkansas and Louisiana. With more than 8,700 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.

In addition to its 50 percent ownership of the general partnership, OGE Energy is the parent company of Oklahoma Gas and Electric Company, a regulated electric utility serving more than 801,000 customers in a service territory spanning 30,000 square miles in Oklahoma and western Arkansas. The website address is www.OGE.com.

ArcLight Capital Partners, LLC is an energy-focused private equity investment firm, having invested over $10 billion since its inception over a decade ago. Since its establishment in 2001, the firm has raised five funds with cumulative capital commitments totaling $10.1 billion. ArcLight has successfully sourced, managed and realized investments through multiple energy industry cycles. The firm’s investment team has extensive energy expertise, investing experience, industry relationships and specialized asset level value creation capabilities. ArcLight is headquartered in Boston, MA, with offices in New York and Luxembourg. More information can be found at www.arclightcapital.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 benefits of the partnership, the potential public offering of the partnership and other statements that are not historical facts are forward-looking statements. Each forward looking statement contained in this release speaks only as of the date of this release. Factors that could affect actual results include those discussed in CenterPoint Energy’s and its subsidiaries’ and OGE Energy Corp.’s. Form 10-Ks for the fiscal year ended December 31, 2012, and other filings with the SEC. The execution of any IPO is subject to market conditions and other factors, and the parties can give no assurance that such an IPO will in fact take place.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities described herein, nor shall there be any sale of such securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Any such offering may be made only by means of a prospectus.

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Spring Branch resident and CenterPoint Energy engineering manager,

Houston – December 6, 2016 – CenterPoint Energy engineer manager Lydia Mares has been appointed by Mayor Turner to join the City of Houston Planning Commission. "It is an honor to be a part of this board, working alongside exceptional and talented community members to improve our city," said Lydia Mares, natural gas engineering manager for CenterPoint Energy.

The Planning Commission is in charge of the approval of subdivision and development plats in the City and its extraterritorial jurisdiction. Also, this commission adopts a comprehensive plan, including a City Council Annual Major Thoroughfare and Freeway Plan, and recommends it to City Council for its approval. The members also conduct hearings, grant variances or waivers and make recommendations to City Council under the provisions of various City land use ordinances.

Mares is a licensed Professional Engineer in the state of Texas and her duties with the company include managing the system and public improvement work for the gas distribution systems in the Houston and Texas Coast areas. "Lydia is a dynamic engineer and a self-starter. Her expertise and knowledge are great assets to our company and will prove to be valuable to her newly appointed position with the planning commission. We know that she will proudly exemplify CenterPoint Energy's values and do excellent work for the City," said Tal Centers, Vice President of Safety and Gas System Integrity.

Mares joins current Commission Members Martha L. Stein (Chair), M. Sonny Garza (Vice Chair), Susan Alleman, Bill Baldwin, Fernando L. Brave, Antoine Bryant, Lisa Clark, Algenita Davis, Mark A. Kilkenny, Paul R. Nelson, Linda Porras-Pirtle, Shafik I. Rifaat, Megan R. Sigler, Eileen Subinsky, Meera D. Victor, Shaukat Zakaria, Honorable Robert Hebert, Honorable Ed Emmett and Commissioner James Noack. Mares will serve this current appointment term through June of 2018.

About the City of Houston Planning Commission

The Planning Commission, a 26-member board appointed by the Mayor and confirmed by City Council includes citizens, elected officials and the Director of Planning and Development. The Commission reviews and approves subdivision and development plats. The Commission also studies and makes recommendations to City Council on development issues in Houston.

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 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 www.CenterPointEnergy.com.

CenterPoint Energy presents check to Pet Solutions for their participation in the Commercial and Industrial Solutions Program

DANVILLE, AR – December 7, 2016 – CenterPoint Energy presented a $163,700 incentive check to Pet Solutions for their participation in CenterPoint Energy's Commercial and Industrial Solutions Program. The program enabled Pet Solutions to replace existing equipment with more efficient, energy saving equipment.

CenterPoint Energy Commercial and Industrial Solutions Program helps customers save energy and money by providing no-cost facility improvement recommendations and financial incentives based on the total amount of energy the equipment will save.

"After participating in our program, CenterPoint Energy offered Pet Solutions a financial incentive to make the changes that will allow them to improve energy efficiency," said Lance Orton, Energy Efficiency Consultant for CenterPoint Energy. "Pet Solutions worked with our program administrator to find opportunities around natural gas efficiency, so they could benefit not only from the monetary incentive, but also from future years of energy and utility bill savings."

The Pet Solutions upgrades will save more than 425,486 CCF of natural gas a year, equal to preventing the average annual natural gas usage of 1,050 homes, according to Environmental Protection Agency calculations.

"The field engineer from the Commercial and Industrial Solutions Program was very knowledgeable and offered advice on how to maximize the energy saving opportunities available to Pet Solutions. It was simple to initiate the projects and the whole process went smoothly," said Dan Price, Division Manager in charge of the project. "Pet Solutions continues to seek additional energy saving opportunities in an effort to become a more energy-conscious company."

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Pet Solutions, located in Danville, AR, is managed by Monett, MO based 3D Corporate Solutions. The Danville facility opened in 2004 and produces value-added ingredients for the Pet Food Industry. The plant and its employees are valued partners of the Danville community. To learn more about Pet Solutions, please visit www.3dsolutions.com.

CenterPoint Energy, Inc.

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 www.CenterPointEnergy.com.

Natural gas service restoration in Paragould, Ark.

HOUSTON – December 2, 2016 – Following a natural gas outage affecting more than 400 customers on the east side of Paragould, Ark., CenterPoint Energy has restored service to all customers who have provided the company access to perform safety checks and relight pilots.  

Customers have been without gas service because of a disruption in the natural gas supply that occurred Thursday afternoon.

"We greatly appreciate our customers' cooperation and patience as our employees worked as quickly as we could to safely restore natural gas service," said Terry Rollins, district director for CenterPoint Energy.

A small number of customers still remain without service because CenterPoint Energy employees were not able to access their home or business. The relighting process requires CenterPoint Energy employees to have access to each location to light pilots and check to make sure it is safe to resume service.

"A customer needs to call us only if there is a door hanger at their home or business indicating that we've already been by to attempt to restore service," Rollins said. "Please call the number on the door tag left by our service personnel."

 

CenterPoint Energy making significant progress restoring service following natural gas outage in Paragould

HOUSTON – December 2, 2016 - CenterPoint Energy has made progress in restoring natural gas service to approximately 450 customers in Paragould, Ark. Customers have been without gas service because of a disruption in the company's gas supply which occurred yesterday afternoon.

"We called in additional employees from other parts of Arkansas which allowed us to turn off each customer's meter yesterday," said Terry Rollins, district director for CenterPoint Energy. "We are now beginning the process of going home to home to restore service to each customer."

The relighting process requires CenterPoint Energy employees to have access to each location to light pilots and check to make sure it is safe to resume service.

"We understand this is an inconvenience, but we appreciate our customers' cooperation and patience," Rollins said. "If at all possible, we'd like to ask that customers be at home since it is necessary for our employees to go inside to restore natural gas service.

"A customer needs to call us only if there is a door hanger at their home or business indicating that we've already been by to attempt to restore service. Please call the number on the door tag left by our service personnel."

For safety reasons, the company urges customers not to turn any valves or tamper with the natural gas meter. Opening or turning any valves could allow air to enter the natural gas lines, which would hinder the re-pressurization process.

"We estimate that all customers who are home will have service restored by this evening," Rollins said.

For updates, follow CenterPoint Energy on Twitter: @CNPAlerts.

CenterPoint Energy reports natural gas outage for customers in Paragould, Arkansas

Houston – December 1, 2016 - CenterPoint Energy is experiencing a natural gas outage on the east side of Paragould, Arkansas that is affecting about 450 customers.

"Safety is our number one priority as we work to restore natural gas service," said Terry Rollins, district director for CenterPoint Energy. "As part of our procedure, we have begun the process this afternoon of turning off each customer's natural gas meter; our goal is to have each meter turned off by later this evening.

"We will then work to ensure that the natural gas distribution lines are clear of air. Once the lines are clear, our certified service technicians will begin performing a series of safety checks to ensure there is no risk involved in restoring gas service," Rollins added. "To perform these inspections, CenterPoint Energy service technicians will need to enter each home or business; we expect this process to begin tomorrow morning and continue throughout the day tomorrow. We have also brought in technicians from other parts of the state to assist in restoring gas service."

"There is no need to call us as we make our initial assessments," Rollins said. "We anticipate restoring service to most customers by end of day tomorrow. At this time, no action is required on the part of the customer. If an adult over age 18 is not at the service address when a technician arrives, the company will leave a door hanger with instructions."

For safety reasons, the company urges customers not to turn any valves or tamper with the natural gas meter. Opening or turning any valves could allow air to enter the natural gas lines, which would hinder the restoration process.

For updates, follow CenterPoint Energy on Twitter: @CNPAlerts.