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
- Phillips 66 to Shut LA Oil Refinery, Ending Major Gasoline Output Amid Supply Concerns
- FERC Sides with Williams in Texas-Louisiana Pipeline Dispute with Energy Transfer
- Trump Aims to Revive 1,200-Mile Keystone XL Pipeline Despite Major Challenges
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- U.S. Appeals Court Blocks Kinder Morgan’s Tennessee Pipeline Permits
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Marathon Oil to Lay Off Over 500 Texas Workers Ahead of ConocoPhillips Merger
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- Another Major U.S. Oil Refinery Shutting Down as Lyondell Confirms Houston Closure
- Chevron CEO Wirth Under Fire as Hess Deal Delay Drags Down Stock Performance
Comments