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
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
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