CenterPoint Begins Midstream Exit Following Enable Sale to Energy Transfer

The sale by CenterPoint, one of Enable Midstream’s two largest unitholders, was part of the $7.2 billion all-stock merger of Enable with Energy Transfer that underwent an extended FTC investigation.

CenterPoint Begins Midstream Exit Following Enable Sale to Energy Transfer

Energy Transfer described the acquisition of Enable Midstream as a credit-accretive bolt-on with expectations for the deal to further its deleveraging efforts and generate over $100 million of annual cost efficiencies. (Source: Hart Energy)

CenterPoint Energy Inc. completed the sale of its stake in Enable Midstream Partners LP on Dec. 2, kicking off the Houston-based company’s exit from the midstream space.

“We are now firmly on an accelerated path to reducing our exposure to the midstream industry,” Dave Lesar, president and CEO of CenterPoint, commented in a company release on Dec. 2.

The sale was part of a previously announced $7.2 billion all-stock merger agreement with Dallas-based Energy Transfer LP that underwent an extended investigation by the Federal Trade Commission. The terms of the merger agreement, however, were approved earlier this year by Enable’s two largest unitholders, CenterPoint and OGE Energy Corp., which together owned approximately 79% of Enable’s outstanding common units.

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Emily Patsy

Emily Patsy is the senior managing editor for Hart Energy’s Digital News Group. She's responsible for the daily news flow and also manages the A&D Watch and Energy Pulse weekly newsletters.