March 14 CenterPoint Energy Inc, OGE Energy Corp and ArcLight Capital Partners LC agreed to combine some of their operations to form a midstream company with nearly $11 billion in assets.
The newly formed master limited partnership will include CenterPoint Energy's interstate pipelines and field services businesses, and the midstream business of Enogex LLC, owned jointly by the units of OGE and Arclight.
CenterPoint Energy will have a 59 percent stake in the partnership, while OGE Energy will own 28 percent and ArcLight 13 percent of the new company.
The new partnership will own and operate 8,400 miles of interstate pipelines spread across Oklahoma, Texas, Arkansas and Louisiana.
The partnership will be managed by a general partner whose governance will be equally shared by CenterPoint Energy and OGE.
The companies expect the formation of the partnership to close in the second or third quarter this year, following regulatory approvals.
Under the terms of the agreement, the new partnership will seek to arrange a new $1.4 billion credit facility as well as a $1.05 billion term loan.
The transaction has been approved by the board of all three companies.