CenterPoint Energy has sold 17,000 miles of main pipeline natural gas LDC assets in Arkansas and Oklahoma to Summit Utilities for $2.15 billion in cash.
The transaction includes the recovery of $425 million in cash of unrecovered storm-related incremental natural gas costs incurred in February 2021.
CenterPoint said it is planning to use the sale proceeds to recycle capital to fund its 10 percent planned compound annual rate base growth.
“The announcement demonstrates not only our ability to efficiently recycle capital across our utility footprint, but also our ability to execute on our commitments to our shareholders,” said Dave Lesar, president and CEO of CenterPoint. “Further, we will also be eliminating the Oklahoma and Arkansas storm-related incremental natural gas cost from our balance sheet.”
The transaction is expected to close by the end of 2021, subject to customary closing conditions.
