CenterPoint Energy completes $2.62 billion sale of Ohio natural gas business

CenterPoint Energy, Inc. (CNP) said Wednesday that it completed the sale of its Ohio natural gas local distribution company business, Vectren Energy Delivery of Ohio, LLC, to National Fuel Gas Company for $2.62 billion.

The transaction includes approximately 5,900 miles of gas transmission and distribution pipeline serving approximately 335,000 metered customers in West Central Ohio.

The purchase price consists of $1.42 billion in cash paid upon closing and a $1.20 billion promissory note issued by National Fuel Gas Company under a seller note agreement. The note bears interest at a rate of 6.50% per annum and matures on Sept. 30, 2027.

"I would like to thank our Ohio natural gas employees and the many team members who support this business for their continued dedication to safety, customer service and operational excellence," CenterPoint Chair and Chief Executive Officer Jason Wells said in a statement.

"We remain focused on executing our long-term strategy and investing in the electric and natural gas systems that serve the customers and communities across our core utility footprint," Wells said.

The company said proceeds from the transaction will support investments across its regulated utility footprint, helping fund its 10-year capital plan.

The transaction received all required federal and state approvals, including a review by the Public Utilities Commission of Ohio. National Fuel Gas Company has assumed responsibility for serving the former CenterPoint customers.