Summit Utilities, Inc. to Acquire CenterPoint Energy's Arkansas and Oklahoma Gas Distribution Assets
Apr 29, 2021, 07:33 ET
FORT SMITH, Ark., April 29, 2021 /PRNewswire/ -- Summit Utilities, Inc. ("Summit") announced today that it has signed a definitive agreement to acquire the Arkansas and Oklahoma gas distribution assets of CenterPoint Energy, Inc. ("CenterPoint") for an enterprise value of $2.15 billion.
CenterPoint's Arkansas and Oklahoma gas distribution systems serve approximately 525,000 customers and include 17,000 miles of gas main pipeline across Arkansas, Oklahoma and Texarkana, Texas.
"In 2017, Summit expanded its footprint to Arkansas and Oklahoma with our acquisition of Arkansas Oklahoma Gas Corporation. Today, we couldn't be more excited to announce our plans to serve more communities in these two great states with the acquisition of CenterPoint's Arkansas and Oklahoma gas distribution systems," said Summit Utilities President and CEO Kurt Adams. "CenterPoint has built a strong reputation for quality customer service and we are eager to carry on that tradition, and continue to help families, businesses and industries throughout Arkansas and Oklahoma meet their energy needs through the delivery of safe, reliable and affordable natural gas services."
Expanding its service territories in Arkansas and Oklahoma will provide Summit with additional scale and capacity to further its mission of providing exceptional service to natural gas customers in the region. Integration of CenterPoint's Arkansas and Oklahoma operations into Summit's will benefit from the alignment of cultures between these two organizations, which are based on core values of customer service and a commitment to the communities they serve.
The transaction is anticipated to close by the end of 2021, subject to customary closing conditions, including Hart-Scott Rodino antitrust clearance and approval by the Public Service Commission of Arkansas and the Oklahoma Corporation Commission.
Centerview Partners LLC and KeyBanc Capital Markets are serving as financial advisors, and Morgan, Lewis & Bockius LLP is serving as legal counsel to Summit Utilities. In addition, a committed bridge financing facility to support the transaction is being provided by KeyBank National Association.
About Summit Utilities, Inc.
Summit Utilities, Inc. owns natural gas distribution and transmission subsidiaries that operate in Arkansas, Colorado, Maine, Missouri, and Oklahoma. The company provides safe, clean and affordable natural gas to businesses and residents in five states through Colorado Natural Gas, Summit Natural Gas of Missouri, Inc., Summit Natural Gas of Maine, Inc. and Arkansas Oklahoma Gas Corporation. Each of Summit's subsidiaries constructs and installs natural gas distribution systems with the goal of supporting economic development by providing clean-burning, safe and reliable natural gas to residential and commercial customers through exceptional customer service and commitment to community. Overall, Summit entities serve approximately 100,000 customers and operate more than 5,400 miles of pipeline in Arkansas, Colorado, Maine, Missouri and Oklahoma.
Stacie Smith (AR and OK)
479-252-2610 [email protected]
Dave Wilby (national)
207-217-4344 [email protected]
SOURCE Summit Utilities, Inc.
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