CenterPoint, OGE, ArcLight Capital Form Midstream MLP

May 2013, Vol. 240, No. 5

CenterPoint Energy Inc., OGE Energy Corp. and ArcLight Capital Partners LLC have entered into an agreement to form a master limited partnership that will include CenterPoint Energy’s interstate pipelines and field services businesses and the midstream business of Enogex LLC, owned jointly by subsidiaries of OGE and Arclight.

The partnership will be managed by a general partner whose governance will be shared by CenterPoint Energy and OGE on a 50/50 basis.

The partnership will own and operate 8,400 miles of interstate pipelines with nearly 9 Bcf of transport capacity and nearly 2,300 miles of intrastate pipelines. It will also have more than 11,000 miles of gathering lines, which in 2012 moved nearly 4 Bcf/d of natural gas. Additionally, it will have more than 90 Bcf of natural gas storage capacity and 11 major processing plants with nearly 2 Bcf/d of inlet capacity.

The partnership will benefit from: enhanced scale geographic diversification, with operations in major natural gas and liquids-rich producing areas of Oklahoma, Texas, Arkansas and Louisiana; significant asset positions in a broad range of basins, including the Granite Wash, Tonkawa, Mississippi Lime, Cana Woodford, Haynesville, Fayetteville, Barnett and Woodford plays; enhanced supply and market access; and meaningful operating and commercial synergies.