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OGE Energy, CenterPoint Energy to combine pipeline assets for master limited partnership

Oklahoma City's OGE Energy Corp. will combine its Enogex LLC pipeline business with CenterPoint Energy's pipelines in a new partnership. Also involved will be ArcLight Capital Partners LLC, which owns 20 percent of Enogex. The new partnership is expected to file for an initial public offering.

By Paul Monies | Published: March 15, 2013 Comment on this article

The companies said the partnership will benefit from geographic diversification because they have operations in major natural gas and liquids-rich areas of Oklahoma, Texas, Arkansas and Louisiana. It will also benefit from enhanced supply and market access and independent access to capital.

“We are very excited about creating a substantial, growth-oriented midstream company,” David McClanahan, president and CEO of CenterPoint Energy, said in a statement. “This new company will be a significant participant in the rapidly growing midstream market. With enhanced scale, broader geographic reach and expanded capabilities, the partnership will be able to compete in ways that neither we nor Enogex could do as separate companies.”

The new partnership plans to arrange a $1.4 billion credit agreement and a $1.05 billion term loan.

OGE is the parent company of Enogex and Oklahoma Gas and Electric Co.

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