CenterPoint Energy Signs Agreement with Continuum Energy to Acquire Retail Energy Services Business
Accretive, Strategic Acquisition Complements CenterPoint Energy’s Non-Regulated Energy Services Business
2016-01-29T06:00:00Z

​​Houston – Jan. 29, 2016 – CenterPoint Energy Services, Inc., (CES) an indirect, wholly-owned subsidiary of CenterPoint Energy, Inc. (NYSE: CNP), and Continuum Energy, LLC, along with its wholly-owned subsidiary, Continuum Energy Services, LLC, today announced they have signed an agreement under which CES will acquire Continuum’s retail energy services business through the acquisition of Continuum Retail Energy Services, LLC, including its wholly-owned subsidiary Lakeshore Energy Services, LLC. The acquisition also includes the natural gas wholesale assets of Continuum Energy Services, LLC. The aggregate purchase price for the acquisition is $77.5 million plus working capital, subject to customary post-closing purchase price adjustments. With the addition of these businesses, CES would operate in 26 states and serve nearly 24,000 commercial and industrial customers and more than 65,000 individual Choice customers.

“Continuum has built an impressive retail energy services business, which complements our overall natural gas business strategy,” said Joe McGoldrick, executive vice president and president of CenterPoint Energy’s Gas Division. “With similar business models, customer-focus and risk management practices, this transaction positions CES to have access to more markets and efficiently grow our customer base, and we expect it to increase our total gross margin by 40 percent. This transaction is projected to be earnings per share accretive in 2016 and subsequent years.”

CES and the Continuum businesses both operate with a low value-at-risk, mitigating potential high-risk exposure to gas price and supply market fluctuations.  Their core functions are retail focused.

“We are excited about the opportunity for our retail energy services business to become part of CenterPoint Energy, a company with substantial scale and diverse markets, focused on quality customer service at competitive prices,” said Jason Few, president and chief executive officer of Continuum Energy. “This transaction allows Continuum to concentrate on growing its midstream business and solidifies an attractive business portfolio for our stakeholders as we move forward.” 

CES is part of CenterPoint Energy, an electric and natural gas energy delivery company headquartered in Houston with more than 140 years of experience in the utility and retail energy industry. Ranked among the top 20 natural gas energy services companies in the country based on volume, CES complements the company’s gas distribution business by providing gas purchase options to customers across multiple states. Combined, CES and the company’s natural gas distribution business deliver more than 1 trillion cubic feet of natural gas a year or 4 percent of the country’s throughput.

In 2014, CES marketed approximately 600 billion cubic feet of natural gas and related energy services and transportation to approximately 18,000 commercial and industrial customers in 19 states. Continuum marketed nearly 300 billion cubic feet of natural gas, related energy services and transportation to nearly 6,000 commercial and industrial customers in 2014.

The acquisition includes Continuum’s:

  • ​Retail business, which includes commercial and industrial transport customers in 25 states
  • Choice customers in California, Michigan, Nebraska, Ohio and Wyoming
  • Origination and logistics segment, which optimizes transport and storage capacity through its retail segment
Continuum will continue to operate its midstream, crude oil logistics and producer services businesses primarily in the Mid-Continent, Appalachia, West Texas and New Mexico and the Utica with more than 1,000 miles of gathering pipeline, 656 million cubic feet system capacity and 44,000 horsepower of compression.

Transaction Terms and Other Details​

The transaction, financed from internally generated cash flow or borrowings under CenterPoint Energy’s commercial paper programs, is expected to close in the first quarter of 2016, subject to customary closing conditions, the expiration of any Hart-Scott-Rodino waiting period and receipt of certain third-party consents. The transaction has been approved by the board of directors of both companies.

Wells Fargo Securities LLC acted as financial advisor to CenterPoint Energy and Baker Hostetler LLP acted as their outside legal counsel. Citi acted as financial advisor to Continuum and Winston & Strawn acted as their outside legal counsel.

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 7,400 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​.

Continuum Energy

Continuum Energy is an integrated energy products and services company that serves over 500 producers and 90,000 retail customers across 25 states. The company owns and operates gathering, processing, treating, compression and transportation assets for natural gas, crude oil and NGLs. With midstream assets in key production areas throughout the United States, that includes more than 44,000 HP of compression, 1,000 miles of pipeline, rail terminal services, a transportation fleet, and marketing services, the company provides comprehensive services for both natural gas and crude oil producers.

This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which include the ability of the companies to receive regulatory and other approvals  and close the transaction, the ability of the CES to access markets and its footprint, customer growth and future customer count, the accretive effect of the transaction and impact on future earnings and gross margin and future operations, 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. Any statements in this news release regarding future earnings, growth, performance, results of operations and any other statements that are not historical facts are forward-looking statements. Each forward-looking statement contained in this news release speaks only as of the date of this release. Factors that could affect actual results include (1) the ability of the parties to satisfy the conditions precedent and consummate the proposed transactions and the timing of the consummation of the proposed transactions, (2) factors related to our business and the economy, including commodity prices, (3) the performance of the companies, (4) competitive conditions in the industry, (5) state and federal legislative and regulatory actions or developments affecting various aspects of the businesses, and (6) other factors discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2014, as well as in CenterPoint Energy's Quarterly Report on Form 10-Q for the quarter ended March 31, 2015, June 30, 2015, and September 30, 2015, and other reports on Form 8-K CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

 
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CenterPoint Energy linemen head east to help with aftermath of Hurricane Michael

Houston – Oct. 10, 2018 – This morning, more than 100 CenterPoint Energy linemen, contractors and support personnel departed for Florida to assist Gulf Power with anticipated power outages resulting from Hurricane Michael.

Crews are expected to arrive to their destination on Thursday and will work 12- to 16-hour days restoring power. "Our thoughts are with those in the path of Hurricane Michael," said Steve Greenley, vice president of Distribution Operations for CenterPoint Energy. "Once the storm has passed, our dedicated team will work to restore service as safely and quickly as possible."

CenterPoint Energy is also sending transmission crews to help with repairs. "Our transmission crews will help repair high-voltage power lines so electricity can be distributed to homes and businesses in the impacted areas," said Martin Narendorf, vice president of High Voltage Operations for CenterPoint Energy.

CenterPoint Energy is part of electric utility mutual assistance programs which provide access to thousands of linemen and tree trimmers from around the country to lend a hand during widespread power outage emergencies. Over the years, CenterPoint Energy crews have restored power to hundreds of thousands of customers throughout the country who were left in the dark following hurricanes, ice storms, tornadoes and severe thunderstorms.

For updates, follow CenterPoint Energy on Facebook and Twitter.

CenterPoint Energy provides important flood safety tips

Minneapolis – Oct. 09, 2018 – With flooding expected in parts of Minnesota, CenterPoint Energy reminds residents of some important natural gas safety tips.

Before a flood:

  • Do not turn off natural gas at the meter. The gas meter should be left on to maintain proper pressure in the gas piping within the house and to prevent water from entering the lines should flooding occur.
  • If a customer wishes to discontinue gas service, the gas should be turned off at each appliance.

After a flood:

  • If your home was flooded and your natural gas meter was underwater, call CenterPoint Energy to schedule an inspection. The meter may need to be replaced.
  • Have flooded appliances inspected by a qualified technician, like HSP before operating the equipment.  This includes outdoor gas appliances such as pool heaters, gas grills and gaslights.
  • If your home did not flood and your natural gas is turned off at the meter, call CenterPoint Energy to reconnect service.
    • Be alert for leaking gas as you return to your home or business. If you smell gas, leave the area immediately on foot and tell others to do the same.
    • Do not turn the lights on or off, smoke, strike a match, use a cell phone or operate anything that may cause a spark, including a flashlight or driving your car.
    • Do not attempt to turn natural gas valves on or off.
    • Once safely away from the area, call the 24 hours emergency gas leak hot line number 1-800-296-9815 and 911 to report the location and description of the leak.

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 54.0 percent of the common units representing limited partner interests in Enable Midstream Partners, LP, a publicly traded master limited partnership it jointly controls with OGE Energy Corp. Enable Midstream Partners, LP owns, operates and develops natural gas and crude oil infrastructure assets. With more than 8,000 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. The utility also operates a non-regulated business in Minnesota called Home Service Plus®.  For more information, please visit CenterPointEnergy.com.

Call CenterPoint Energy now for Cold Weather Rule protection

Minneapolis – Oct. 08, 2018 – CenterPoint Energy is reminding customers about certain rights and their responsibilities as it relates to the Cold Weather Rule (CWR). The CWR protects residential customers who are experiencing difficulty paying their natural gas bill from having their natural gas service disconnected between Oct. 15, 2018 and April 15, 2019.

While the CWR does not prevent customers from being disconnected for nonpayment, it does provide customers with extra protection as defined in the CWR. However, residential customers must contact CenterPoint Energy to set up a payment plan.

"The Minnesota Cold Weather Rule isn't just for customers who may have trouble paying their natural gas bill during cold winter months," said Brad Tutunjian, vice president of CenterPoint Energy Gas Operations in Minnesota.  "It is also there for customers whose service is currently disconnected.  If you are a customer in this position, I urge you to call us now to set up a payment plan under the rule. We can work together to create a payment plan so that you get service throughout the heating season."

Customers who anticipate having trouble paying their entire natural gas bill, have received a Notice of Proposed Disconnection, or need gas service reconnected are all urged to call CenterPoint Energy to establish a payment plan. A payment plan will include what is owed and the amount to be billed. The plan will also take into consideration a customer's financial situation and any other special circumstances. The plan must be agreeable to both the customer and CenterPoint Energy. If an agreed-upon payment plan cannot be reached, customers have a right to appeal under the CWR.

Under the CWR, special payment terms are available to customers who:

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Other helpful information:

  • In addition to calling CenterPoint Energy to discuss and establish a payment plan, company representatives are available to refer customers to social service agencies who may have energy assistance funds;
  • Customers interested in helping others pay their natural gas bill can support the Salvation Army's HeatShare program. Visit The Salvation Army's website to make a donation.

Call CenterPoint Energy to set up a payment plan at 1-612-372-4680 or 1-800-729-6164. For additional information, please visit CenterPointEnergy.com/ReadyForWinter.

 

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 54.0 percent of the common units representing limited partner interests in Enable Midstream Partners, LP, a publicly traded master limited partnership it jointly controls with OGE Energy Corp. Enable Midstream Partners, LP owns, operates and develops natural gas and crude oil infrastructure assets. With more than 8,000 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. The utility also operates a non-regulated business in Minnesota called Home Service Plus®.  For more information, please visit CenterPointEnergy.com.

CenterPoint Energy Inc. announces closing of $1.5 billion senior notes offering

Houston - Oct. 5, 2018 - CenterPoint Energy, Inc. (NYSE: CNP) today announced the closing of its offering and sale of $1.5 billion of senior notes comprised of $500 million aggregate principal amount of 3.60% senior notes due 2021, $500 million aggregate principal amount of 3.85% senior notes due 2024; and $500 million aggregate principal amount of 4.25% senior notes due 2028.

CenterPoint Energy intends to use the net proceeds from the offering to finance a portion of the cash consideration payable by CenterPoint Energy in connection with its pending merger with Vectren Corporation (Vectren Merger), as well as a portion of the related fees and expenses. If for any reason the Vectren Merger is not completed on or prior to Oct. 31, 2019, CenterPoint Energy will be required to redeem all of the senior notes at a redemption price equal to 101% of the principal amount of the senior notes plus accrued and unpaid interest, if any, to, but excluding the date of redemption.

Goldman Sachs & Co. LLC, Morgan Stanley, Mizuho Securities, MUFG and RBC Capital Markets served as joint bookrunners. Additional joint book-running managers were PNC Capital Markets LLC, Regions Securities LLC, TD Securities and US Bancorp. Senior co-managers were BNY Mellon Capital Markets, LLC and Comerica Securities. Guggenheim Securities, LLC and Loop Capital Markets served as co-managers.

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.

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 54.0 percent of the common units representing limited partner interests in Enable Midstream Partners, LP, a publicly traded master limited partnership it jointly controls with OGE Energy Corp. Enable Midstream Partners, LP owns, operates and develops natural gas and crude oil infrastructure assets. With more than 8,000 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years.

This press release includes forward-looking statements that are not historical facts. Actual events and results may differ materially from those projected. Forward-looking statements in this press release include, but are not limited to, the use of proceeds from the offering and the Vectren Merger.  Factors that could affect actual results include, but are not limited to, the factors discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, CenterPoint Energy's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2018, and June 30, 2018, and CenterPoint Energy's other SEC filings.

Factors that could affect the company's ability to complete the Vectren Merger include, but are not limited to, the satisfaction of the conditions to the Vectren Merger discussed in the prospectus supplement and accompanying base prospectus and other factors discussed in the company's SEC filings.

CenterPoint Energy partners with Akin Gump for Houston Volunteer Lawyers-sponsored will clinic

Houston – Oct. 3, 2018 – As part of its ongoing commitment to community involvement, CenterPoint Energy partnered with Akin Gump, a leading international law firm, to provide pro bono will preparation services to Houston residents at a recent Houston Volunteer Lawyers Will Clinic sponsored in partnership with the City of Houston Department of Neighborhoods.

Through the will clinic, lawyers from CenterPoint Energy and Akin Gump's Houston office collaborated to provide will preparation services to more than 30 Houstonians in need. The will signing took place on Thurs., Sept.13, in the historically significant Emancipation Cultural Center. The center is located in the park of the same name that was established by African American Houstonians in the 1870s as a home for Juneteenth celebrations of the signing of the Emancipation Proclamation.

"CenterPoint Energy's Legal Department participates in a number of volunteer events each year. We are especially proud to support Mayor Turner's 'Complete Communities' initiative and the important work performed by Houston Volunteer Lawyers," said Monica Karuturi, vice president and AGC of Corporate and Securities for CenterPoint Energy. "We are also grateful for the generous support of Akin Gump, our partner in this community service."  

Akin Gump Partner Robert Shearer, who led Akin Gump's participation in the clinic, added, "We have been thrilled to partner with our client, CenterPoint Energy, and a great organization like Houston Volunteer Lawyers to be able to provide meaningful assistance to residents of Houston."

Houston Volunteer Lawyers serves as the pro bono legal aid arm of the Houston Bar Association, and helps thousands of people across the Houston area each year with their most pressing legal needs. This will clinic is one of several that the organization will sponsor in underserved communities throughout Houston this year.

The clinic is part of Houston Mayor Sylvester Turner's "Complete Communities" initiative for the City of Houston, an initiative aimed at improving neighborhoods so that all of Houston's residents and business owners can have access to quality services and amenities.

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 54.0 percent of the common units representing limited partner interests in Enable Midstream Partners, LP, a publicly traded master limited partnership it jointly controls with OGE Energy Corp. Enable Midstream Partners, LP owns, operates and develops natural gas and crude oil infrastructure assets. With more than 8,000 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years.

About Akin Gump

Founded in 1945, Akin Gump Strauss Hauer & Feld LLP is a leading international law firm with more than 900 lawyers in offices throughout the United States, Europe, Asia and the Middle East.