CenterPoint to Sell Arkansas, Oklahoma Gas Utilities for $2.15 Billion
(Reuters) — U.S. electricity provider CenterPoint Energy Inc said on Thursday it has agreed to sell its natural gas utility businesses in Arkansas and Oklahoma to privately-held Summit Utilities for $2.15 billion in cash.
CenterPoint, which claims to be the largest gas utility in terms of customers, said the assets being sold include about 17,000 miles of pipeline in Arkansas, Oklahoma and Texarkana that deliver natural gas to over half-a-million customers.
Electricity providers around the United States are increasingly turning their focus to renewable energy as investors and customers clamor for cleaner power generation.
A sale would help funding CenterPoint's turnaround strategy outlined last December, when the company floated plans to hike its spending as it tries to grow annual earnings by up to 8% and add renewable energy to its portfolio.
If Summit Utilities deal goes through, it would include $425 million in cash of unrecovered storm-related natural gas costs incurred in February, when parts of the United States experienced record cold temperatures due to winter storm Uri, which shut down natural gas and electricity infrastructure.
Related News
Related News
- Kinder Morgan Proposes 290-Mile Gas Pipeline Expansion Spanning Three States
- Valero Plans to Shut California Refinery, Takes $1.1 Billion Hit
- Three Killed, Two Injured in Accident at LNG Construction Site in Texas
- Tallgrass to Build New Permian-to-Rockies Pipeline, Targets 2028 Startup with 2.4 Bcf Capacity
- TC Energy Approves $900 Million Northwoods Pipeline Expansion for U.S. Midwest
- US Poised to Become Net Exporter of Crude Oil in 2023
- EIG’s MidOcean Energy Acquires 20% Stake in Peru LNG, Including 254-Mile Pipeline
- Construction Begins on Ghana's $12 Billion Petroleum Hub, But Not Without Doubts
- Valero Plans to Shut California Refinery, Takes $1.1 Billion Hit
- Newsom Seeks to Aid Struggling Refiners Following Valero’s California Exit
Comments