Summit Utilities Inc. further expands its footprint
Summit Utilities Inc. is acquiring the Arkansas and Oklahoma gas distribution assets of CenterPoint Energy Inc. for $2.15 billion, the utility announced.
These gas distribution systems serve about 535,000 customers and include 17,000 miles of main pipeline across Arkansas, Oklahoma and Texarkana.
“Our acquisition of CenterPoint’s assets in Arkansas, Oklahoma and Texarkana is a great opportunity to expand our company’s footprint in states that understand the value our energy distribution system brings to the economy, families, businesses and industry,” Summit Utilities President and CEO Kurt Adams told American Gas.
The acquisition gains not just customers, but also an integral team in these expanded territories, he said.
“This brings incredible value to this acquisition. The team members on the ground in Arkansas, Oklahoma and Texarkana are deeply committed to the communities they serve. It’s clear their values are aligned with ours, which makes this an exceptional opportunity to strengthen our culture and company,” Adams said.
The utility first expanded its footprint to Arkansas and Oklahoma in 2017 with its acquisition of Arkansas Oklahoma Gas Corporation.
The current sale allows CenterPoint Energy to recover about $425 million in cash of unrecovered storm-related incremental natural gas costs incurred in February 2021, CenterPoint Energy said in a news release. According to the utility, the sale proceeds also will allow CenterPoint to recycle capital to fund its industry-leading 10% planned compound annual rate base growth.
“Summit has an industry track record of being a high-quality operator, and we are confident they will continue to provide safe, reliable and low-cost natural gas service to our customers in Arkansas and Oklahoma,” CenterPoint Energy President and CEO Dave Lesar said in the news release.
The transaction is anticipated to close by the end of 2021.