A deal involving Oklahoma City's Enogex LLC to create a master limited partnership for pipelines and services in the central United States has closed after a successful federal antitrust review, the companies said Wednesday.
The partnership, announced March 14, combines Enogex LLC's midstream assets and the pipelines and field services of CenterPoint Energy Inc. It will be an $11 billion company with more than 8,400 miles of interstate pipelines and 2,300 miles of intrastate pipelines.
A name and headquarters for the partnership have yet to be decided. An initial public offering for partnership units is expected in the next six to 12 months.
Enogex's parent company, OGE Energy Corp., holds a 28.5 percent limited partner interest in the master limited partnership, with Houston-based CenterPoint at 58.3 percent and Boston-based ArcLight Capital Partners LLC with 13.2 percent.
“Our plans for an initial public offering in the form of a public master limited partnership are on track,” Pete Delaney, chairman, president and CEO of OGE Energy, said in a statement. “Integration planning led by executives from CenterPoint Energy and Enogex will continue as we begin today to implement the partnership to capture identified opportunities.”
Enogex and CenterPoint share equal representation for governance of the general partner. To that end, both companies named representatives to the board for the general partner. Enogex named Delaney and Sean Trauschke, OGE's vice president and chief financial officer. CenterPoint named its president and CEO, David McClanahan, and Gary Whitlock, executive vice president and chief financial officer.
Until the partnership's leadership team is named, OGE and CenterPoint executives will continue to separately direct their company's midstream operations but will work closely together on new business opportunities.
“We are working hard to begin to realize the benefits of the partnership's enhanced scale, broad geographic reach and expanded capabilities,” CenterPoint's McClanahan said in a statement. “This new company will be a significant participant in the rapidly growing midstream market.”
Along with its 10,700 miles of intrastate and interstate pipelines, the master limited partnership includes 11,000 miles of gathering lines and 11 major processing plants.
We are working hard to begin to realize the benefits of the partnership's enhanced scale, broad geographic reach and expanded capabilities.”
CenterPoint named its president and CEO