CenterPoint Energy Announces Sale of CenterPoint Energy Services Business to Energy Capital Partners
– Sale supports further emphasis on CenterPoint Energy’s core utility operations
– ECP to support CES’ continued focus on providing the highest level of customer service
– Transaction is expected to close in Second Quarter
HOUSTON, Feb. 24, 2020 /PRNewswire/ — CenterPoint Energy, Inc. (NYSE: CNP) today announced it has entered into an agreement to sell its natural gas retail business, CenterPoint Energy Services, Inc. (CES) to Energy Capital Partners, LLC, (ECP), a private equity and credit investor specializing in energy infrastructure projects, for total consideration of approximately $400 million, including estimated working capital at close, subject to the satisfaction of customary terms and conditions. As part of the transaction, CES will enter into a structured long-term Preferred Supply agreement where Shell Energy North America (US), L.P. (SENA) will provide gas supply and collateral support, as well as receive equity warrants. Net proceeds of the sale will be used to repay a portion of outstanding CenterPoint Energy debt.
“The sale of our gas retail business further positions CenterPoint Energy to focus on the long-term performance of our core electric and natural gas utility businesses,” said John W. Somerhalder II, interim president and chief executive officer of CenterPoint Energy. “At the same time, this sale will strengthen our balance sheet and improve our business risk profile.”
Somerhalder added, “When combined with our recent agreement to sell Miller Pipeline and Minnesota Limited, two businesses that comprised our infrastructure services segment, we expect our utility earnings contribution to approach 90% over the next several years.”