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CenterPoint Energy Announces Sale of CenterPoint Energy Services Business to Energy Capital Partners

- Sale supports further emphasis on CenterPoint Energy's core utility operations

2020-02-24T06:00:00Z

HOUSTON, Feb. 24, 2020 - CenterPoint Energy, Inc. (NYSE: CNP) today announced it has entered into an agreement to sell its natural gas retail business, CenterPoint Energy Services, Inc. (CES) to Energy Capital Partners, LLC, (ECP), a private equity and credit investor specializing in energy infrastructure projects, for total consideration of approximately $400 million, including estimated working capital at close, subject to the satisfaction of customary terms and conditions. As part of the transaction, CES will enter into a structured long-term Preferred Supply agreement where Shell Energy North America (US), L.P. (SENA) will provide gas supply and collateral support, as well as receive equity warrants. Net proceeds of the sale will be used to repay a portion of outstanding CenterPoint Energy debt.

"The sale of our gas retail business further positions CenterPoint Energy to focus on the long-term performance of our core electric and natural gas utility businesses," said John W. Somerhalder II, interim president and chief executive officer of CenterPoint Energy. "At the same time, this sale will strengthen our balance sheet and improve our business risk profile."

Somerhalder added, "When combined with our recent agreement to sell Miller Pipeline and Minnesota Limited, two businesses that comprised our infrastructure services segment, we expect our utility earnings contribution to approach 90% over the next several years."

CES provides competitive natural gas sales, storage and supply, and other energy-related solutions to approximately 30,000 commercial and industrial customers, utilities and municipalities in more than 30 states. CES is headquartered in Houston and has approximately 300 employees.

"ECP looks forward to partnering with CES and its employees in order to continue providing customers with best-in-class service and reliable gas supply," said Andrew Gilbert, a partner at ECP. "We are excited to support CES' future growth."

The sale is anticipated to be completed in the second quarter 2020, subject to the satisfaction of closing conditions, including the expiration or termination of the Hart-Scott-Rodino waiting period.

Goldman Sachs & Co. LLC is serving as exclusive financial advisor to CenterPoint Energy. Akin Gump Strauss Hauer & Feld LLP is acting as legal counsel to CenterPoint Energy. Latham & Watkins, LLP is serving as legal counsel to Energy Capital Partners, LLC and BNP Paribas is providing a committed borrowing base facility.

Headquartered in Houston, CenterPoint Energy, Inc. (NYSE: CNP) is an energy delivery company with regulated utility businesses in eight states and a competitive energy businesses footprint in nearly 40 states. Through its electric transmission & distribution, power generation and natural gas distribution businesses, the company serves more than 7 million metered customers in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas. CenterPoint Energy's competitive energy businesses include natural gas marketing and energy-related services; energy efficiency, sustainability and infrastructure modernization solutions; and construction and repair services for pipeline systems, primarily natural gas. The company also owns 53.7 percent of the common units representing limited partner interests in Enable Midstream Partners, LP, a publicly traded master limited partnership that owns, operates and develops strategically located natural gas and crude oil infrastructure assets. With approximately 14,000 employees and nearly $35 billion in assets, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.

Energy Capital Partners, founded in 2005, is a North American-focused investor across both equity and credit infrastructure assets, including natural gas power generation, renewables and storage solutions, midstream, environmental infrastructure and opportunistic energy situations emphasizing the transition to clean energy while avoiding the more volatile energy subsectors like exploration and production. The ECP team, comprised of 61 people with 600 years of collective industry experience, deep expertise and extensive relationships, has consummated more than 60 transactions over the last 10 years, representing more than $45 billion of enterprise value.

Forward-Looking Statement
The statements in this press release contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact included in this press release are forward-looking statements made in good faith by us and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "intend," "may," "objective," "plan," "potential," "predict," "projection," "should," "target," "will" or other similar words are intended to identify forward-looking statements. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual events and results may differ materially from those expressed or implied by these forward-looking statements. Forward-looking statements include, but are not limited to, statements relating to benefits of the sale, the timing of the closing, CenterPoint Energy's use of proceeds from the sale, the relative contribution of CenterPoint Energy's core energy delivery business after closing, including the related impact to utility earnings percentages, and anticipated changes in CenterPoint Energy's balance sheet, risk profile and earnings quality. Each forward-looking statement contained in this press release speaks only as of the date of this release. Important factors that could cause actual results to differ materially from those indicated by the provided forward-looking information include risks and uncertainties relating to: (1) the timing of the expiration or termination of the Hart-Scott-Rodino waiting period and the receipt of any consents, waivers or approvals required to be obtained pursuant to applicable antitrust laws, (2) the occurrence of any event, change or other circumstances that could give rise to the termination of the proposed transactions or could otherwise cause the failure of the proposed transactions to close, (3) the risk that a condition to the closing of the proposed transactions may not be satisfied, (4) the outcome of any legal proceedings, regulatory proceedings or enforcement matters that may be instituted relating to the proposed transactions, (5) the timing to consummate the proposed transactions, (6) disruption from the proposed transactions making it more difficult to maintain relationships with customers, employees, regulators or suppliers, (7) the diversion of management time and attention on the proposed transactions and (8) other factors discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2018, CenterPoint Energy's Quarterly Report on Form 10-Q for the quarters ended March 31, 2019, June 30, 2019 and September 30, 2019 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

CenterPoint Communications	CenterPoint Investor Relations
Natalie Hedde: 812.491.5105	David Mordy: 713.207.6284
Natalie.hedde@centerpointenergy.com	David.mordy@centerpointenergy.com

CenterPoint Energy logo. (PRNewsFoto)

SOURCE CenterPoint Energy, Inc.

Recent News

As spring begins, CenterPoint Energy continues progress toward strengthening the grid across the Greater Houston area and shares tips to help customers stay safe while saving energy and money

Houston – March 20, 2025 – With today marking the start of spring, CenterPoint Energy is continuing to strengthen the resiliency of the grid in key areas ahead of the 2025 hurricane season. To date, the company has completed more than 50 percent of several near-term critical resiliency actions and grid improvements outlined in the second phase of its Greater Houston Resiliency Initiative (GHRI), including installing stronger poles, adding more automation devices, undergrounding power lines and trimming hazardous vegetation.

As the company works to complete these steps before the start of hurricane season on June 1, CenterPoint is also helping customers prepare for the warmer weather ahead by sharing tools, easy-to-implement tips and resources to improve the energy efficiency of their homes, and staying safe as they complete projects around their homes.

“Our team remains fully focused on executing our historic effort to strengthen the grid and improve resiliency and reliability. As CenterPoint prepares for hurricane season, we want to remind customers of ways they can prepare, too. The first day of spring serves as a great reminder that warmer temperatures are coming. We encourage our customers to take steps to increase the energy efficiency of their homes so that they can continue to stay comfortable inside year-round while also reducing their energy use," said Tony Gardner, Senior Vice President and Chief Customer Officer at CenterPoint, "We also want to remind customers to keep safety top of mind by taking the time to contact 811 prior to starting any digging projects near their home. By taking this easy step, our customers and community members are taking a critical first step in helping keep themselves, their loved ones and neighbors safe."

Tips, tools and resources for customers to spring into energy and cost savings

Customers can do the following to help spring into energy and cost savings:

Do a spring cleaning by changing or cleaning the filters in HVAC systems: Air conditioning can represent approximately 50 percent of a home's energy use as outside temperatures increase. Regular maintenance is one of the best ways to extend the life of a home's system, so swap out or clean filters to minimize costly repairs and to keep the system running efficiently.
Maintain a comfortable temperature indoors year-round: To save energy and reduce cooling costs, use weatherstripping or caulk areas in and around a home where cooled air may escape such as around windows and doors or where warm air could enter.
Block the sun's rays during warmer days: When temperatures increase outside, keep window coverings closed when the sun is shining brightest to maintain a more comfortable indoor temperature.
Save hot water while maintaining comfort: Showering accounts for 40 percent of a home's hot water use, so energy-saving showerheads and faucet aerators can help lower energy costs and reduce hot water use without sacrificing comfort.

Upgrade to more energy efficient appliances and equipment: When replacing appliances and equipment, look for ENERGY STAR®-certified products for increased energy efficiency and cost savings over time. Energy efficiency rebates may be available for qualifying appliances.

Customers can learn more about energy savings tips and tools that help them prepare for the longer and warmer days in addition to ways to manage their monthly energy bills at CenterPointEnergy.com/SavingsTips.

GHRI Progress Milestone: More than 50% complete on several key metrics
On Sept. 30, CenterPoint announced the launch of Phase Two of the GHRI, which will strengthen the grid in advance of hurricane season, included a series of actions to strengthen resiliency, enable a self-healing power system and reduce the duration and impact of power outages. In February alone, the company made progress in key areas including:

Installed approximately 2,900 stronger, more storm-resilient poles built to withstand extreme winds;
Cleared another 417 miles of high-risk vegetation near power lines to reduce storm-related outages; and
Installed an additional 1,334 automated reliability devices to reduce the impact of outages and improve restoration times; and
Undergrounded 47 more miles of power lines to reduce the impact of extreme weather.

The resiliency actions outlined in GHRI Phase Two are expected to lead to more than 125 million fewer outage minutes annually for customers. Through early March, the company has made significant advances across its Greater Houston service area and is on track to complete its work before the start of hurricane season.

CenterPoint will continue to provide updates on its progress toward completing its critical resiliency actions and other GHRI commitments. More information and real-time updates are available at CenterPointEnergy.com/TakingAction.

Electric customers encouraged to enroll in Power Alert Service ®

In addition to reducing energy use and improving efficiency, customers are encouraged to enroll in CenterPoint Energy's Power Alert Service® to receive outage details, estimated restoration times (as available or determined) and customer-specific restoration updates in the event of a power outage. With the option to receive updates via phone call, text or email, Power Alert Service® keeps customers informed of restoration progress during an outage.

Call before you dig

Spring is a great time to begin outdoor home improvement projects. Anyone planning a project that requires digging should contact 811 at least two days prior to starting work to have underground utilities located and marked at no cost. This includes projects done by customers or their contractors, including building a fence, planting trees, installing a deck, placing a mailbox or laying a patio.

Visit 811BeforeYouDig.com to learn more about 811 and the process to have underground utility lines located and marked. For more information about natural gas safety, visit CenterPointEnergy.com/Safety.

With the start of spring, CenterPoint Energy reminds customers of tips and available resources to save energy, manage bills and stay safe

Dayton – March 20, 2025 – With today marking the start of spring, CenterPoint Energy encourages customers to leverage tools, tips and resources as part of their spring cleaning and preparation. Customers can unlock energy savings through a combination of easy-to-implement tips, remain connected to company programs and stay safe as they complete projects around their homes.

“At CenterPoint, we have tips, tools and programs to help customers save energy and manage their bills. The first day of spring serves as a great reminder that warmer temperatures are approaching, and we encourage our customers to take steps to increase the energy efficiency of their homes so that they can continue to stay comfortable inside year-round while also reducing their energy use. By taking small and easy actions, customers can make a big difference in reducing their monthly energy bills," said Tony Gardner, Senior Vice President and Chief Customer Officer at CenterPoint. “We also want to remind customers to keep safety top of mind by taking the time to contact 811 prior to starting any digging projects near their home. By taking this easy step, our customers and community members are taking a critical first step in helping keep themselves, their loved ones and neighbors safe."

Tips, tools and resources for customers to spring into energy and cost savings

Customers can do the following to help spring into energy and cost savings:

Perform a spring cleaning by changing or cleaning the filters in HVAC systems: Air conditioning can represent approximately 50 percent of a home's energy use as outside temperatures increase. Regular maintenance is one of the best ways to extend the life of a home's system, so swap out or clean filters to minimize costly repairs and keep the system running efficiently.
Maintain a comfortable temperature indoors year-round: To save energy and reduce cooling costs, use weatherstripping or caulk areas in and around a home where cooled air may escape, such as around windows and doors or where warm air could enter.
Block the sun's rays during warmer days: When temperatures increase outside, keep window coverings closed when the sun is shining brightest to maintain a more comfortable indoor temperature.
Save hot water while maintaining comfort: Showering accounts for 40 percent of a home's hot water use. Energy-saving showerheads and faucet aerators can help lower energy costs and reduce hot water use without sacrificing comfort.

Call before you dig

Spring is a great time to begin outdoor home improvement projects. Anyone planning a project that requires digging should contact 811 at least two days prior to starting work to have underground utilities located and marked at no cost. This includes projects done by customers or their contractors, including building a fence, planting trees, installing a deck, placing a mailbox or laying a patio.

With the start of spring, CenterPoint Energy reminds customers of tips and available resources to save energy, manage bills and stay safe

Minneapolis – March 20, 2025 – With today marking the start of spring, CenterPoint Energy encourages customers to leverage tools, tips and resources as part of their spring cleaning and preparation. Customers can unlock energy savings through a combination of easy-to-implement tips, remain connected to company programs and stay safe as they complete projects around their homes.

Tips, tools and resources for customers to spring into energy and cost savings

Customers can do the following to help spring into energy and cost savings:

Perform a spring cleaning by changing or cleaning the filters in HVAC systems: Air conditioning can represent approximately 50 percent of a home's energy use as outside temperatures increase. Regular maintenance is one of the best ways to extend the life of a home's system, so swap out or clean filters to minimize costly repairs and keep the system running efficiently.
Maintain a comfortable temperature indoors year-round: To save energy and reduce cooling costs, use weatherstripping or caulk areas in and around a home where cooled air may escape, such as around windows and doors or where warm air could enter.
Block the sun's rays during warmer days: When temperatures increase outside, keep window coverings closed when the sun is shining brightest to maintain a more comfortable indoor temperature.
Save hot water while maintaining comfort: Showering accounts for 40 percent of a home's hot water use. Energy-saving showerheads and faucet aerators can help lower energy costs and reduce hot water use without sacrificing comfort.
Upgrade to more energy efficient appliances and equipment: When replacing appliances and equipment, look for ENERGY STAR®-certified products for increased energy efficiency and cost savings over time. Energy efficiency rebates may be available for qualifying appliances.

Call before you dig

With the start of spring, CenterPoint Energy reminds customers of tips and available resources to save energy, manage bills and stay safe

Evansville, Ind. – March 20, 2025 – With today marking the start of spring, CenterPoint Energy encourages customers to leverage tools, tips and resources as part of their spring cleaning and preparation. Customers can unlock energy savings through a combination of easy-to-implement tips, remain connected to company programs and stay safe as they complete projects around their homes.

Tips, tools and resources for customers to spring into energy and cost savings

Customers can do the following to help spring into energy and cost savings:

Perform a spring cleaning by changing or cleaning the filters in HVAC systems: Air conditioning can represent approximately 50 percent of a home's energy use as outside temperatures increase. Regular maintenance is one of the best ways to extend the life of a home's system, so swap out or clean filters to minimize costly repairs and keep the system running efficiently.
Maintain a comfortable temperature indoors year-round: To save energy and reduce cooling costs, use weatherstripping or caulk areas in and around a home where cooled air may escape, such as around windows and doors or where warm air could enter.
Block the sun's rays during warmer days: When temperatures increase outside, keep window coverings closed when the sun is shining brightest to maintain a more comfortable indoor temperature.
Save hot water while maintaining comfort: Showering accounts for 40 percent of a home's hot water use. Energy-saving showerheads and faucet aerators can help lower energy costs and reduce hot water use without sacrificing comfort.
Upgrade to more energy efficient appliances and equipment: When replacing appliances and equipment, look for ENERGY STAR®-certified products for increased energy efficiency and cost savings over time. Energy efficiency rebates may be available for qualifying appliances.

Electric customers encouraged to enroll in Power Alert Service®

In addition to reducing energy use and improving efficiency, customers are encouraged to enroll in CenterPoint Energy's Power Alert Service® to receive outage details, estimated restoration times (as available or determined) and customer-specific restoration updates in the event of a power outage. With the option to receive updates via phone call, text or email, Power Alert Service® keeps customers informed of restoration progress during an outage.

Call before you dig

In celebration of Natural Gas Utility Workers Day, CenterPoint Energy honors team members who work every day to serve customers and communities

Houston – March 18, 2025 – Every year, March 18 is recognized as Natural Gas Utility Workers Day, which is a moment to pause and honor the important role natural gas utility workers play in serving as emergency responders and keeping natural gas safely flowing to the businesses and homes in the many communities CenterPoint Energy is privileged to serve. CenterPoint honors the company's employees and those who work throughout the natural gas industry for their tireless work in providing safe, reliable and resilient service to those who rely on natural gas.

CenterPoint's approximately 3,500 natural gas utility workers play a critical role in installing and maintaining natural gas infrastructure such as pipelines and meters, supporting the delivery of energy service to customers, educating the public on natural gas safety and adhering to rigorous safety standards to protect their communities and the environment.

“Our natural gas utility workforce keeps safety at the forefront of all they do. Whether installing natural gas service or responding to emergency calls from customers, our workers focus on delivering resilient, readily available energy solutions for customers. No matter the temperature outside nor the time of day, our natural gas workers are there to help meet the needs of our customers and communities to keep them safe, maintain warmth and enable possibilities to support business needs. We honor and celebrate natural gas utility workers, not just today, but for the work they do every day to help keep us all safe," said Richard Leger, CenterPoint's Senior Vice President, Gas Business.

At CenterPoint, natural gas utility workers serve more than 4.3 million customers across six states, monitor and maintain more than 75,000 miles of distribution pipeline and deploy advanced leak detection technologies to monitor more than 80% of the company's natural gas assets.

In 2024 alone, the company's natural gas utility workers helped:

Replace more than 470 miles of pipeline to help advance efforts to modernize the company's natural gas distribution systems using modern construction materials and installation methods, including efforts to replace cast iron infrastructure.
Deploy more than 250,000 natural gas smart meters across the company's service area, which include enhanced safety and communications features.
Complete more than 2.5 million locates of the company's natural gas facilities, which help customers and community members dig safely and mitigate potential service disruptions.

Tips for customers to stay safe

Safety is CenterPoint's top priority. In addition to the company's employees' commitment to working safely, the company would like to remind customers to always keep natural gas safety top of mind by:

Calling before your dig: Anyone planning a project that requires digging should contact 811 at least two days prior to their work starting to have underground utilities located at no cost.
Learning to recognize a natural gas leak by using one's eyes, ears and noses:

Look for signs of a natural gas leak including persistent bubbling in standing water and discolored or dead vegetation around a pipeline.
Listen for any unusual noises such as whistling, hissing or roaring sounds.
Smell for the distinctive, strong odor, often compared to rotten eggs or sulfur from mercaptan which is added to natural gas for safety detection purposes.

Immediately reporting a suspected natural gas leak: If there's a “rotten egg" odor of natural gas present, immediately leave on foot, go to a safe location and call both 911 and CenterPoint Energy. Don't use electric switches and outlets, phones (including cell phones), drive or start a car or do anything that could cause a spark inside or close to the location.

To learn more about CenterPoint's commitment to natural gas safety, visit CenterPointEnergy.com/Safety.

Images associated with this release can be found at: https://cnplibrary.canto.com/b/UJQKH. These photos are made available courtesy of CenterPoint Energy.