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CenterPoint To Sell Arkansas And Oklahoma Natural Gas LDC Businesses In $2.15 Bln Cash Deal

Texas-based electric and gas utility CenterPoint Energy Inc. (CNP) announced Thursday the sale of its Arkansas and Oklahoma natural gas LDC assets to Summit Utilities for $2.150 billion in cash.

The consideration includes recovery of around $425 million in cash of unrecovered storm-related incremental natural gas costs incurred in February 2021, subject to true-up at transaction close.

The proceeds will be $1.725 billion in cash, after recovery of approximately $425 million in cash unrecovered storm costs.

The sale is anticipated to close by the end of 2021, subject to customary closing conditions, including Hart-Scott Rodino antitrust clearance and state regulatory approvals.

The divesting assets include approximately 17,000 miles of main pipeline in Arkansas, Oklahoma, and Texarkana serving more than half a million customers residing in high-quality regulatory jurisdictions.

In the deal, J.P. Morgan Securities LLC. and RBC Capital Markets, LLC. served as CenterPoint Energy's financial advisors.

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