Summit Utilities is acquiring CenterPoint Energy Inc.’s Arkansas and Oklahoma gas distribution assets in a transaction worth $2.15 billion.
Through this transaction, Summit will gain approximately 525,000 customers and 17,000 miles of gas main pipeline across the two states and Texarkana, Texas. CenterPoint announced that it will be receiving $2.15 billion – all cash – which includes the recovery of $425 million of unrecovered storm-related natural gas costs.
“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,” Summit Utilities president and CEO Kurt Adams said in a statement. “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.”
This deal represents a significant increase for Summit’s Arkansas and Oklahoma holdings and customer base.According to a company release, Summit operates in five states: Arkansas, Colorado, Maine, Missouri and Oklahoma. Its subsidiaries, including Colorado Natural Gas, Summit Natural Gas of Missouri, Summit Natural Gas of Maine and Arkansas Oklahoma Gas Corporation, had a collective 100,000 customers and 5,400 miles of pipeline.
According to Summit, the increased amount of pipeline will provide it with additional scale and capacity to deliver natural gas to the two regions.
The deal is expected to close by the end of 2021 pending to closing conditions, regulatory approvals and an antitrust clearance.