CenterPoint Energy To Sell Natural Gas Retail Business For About $400 Mln

(RTTNews) - CenterPoint Energy Inc. (CNP) said Monday it agreed to sell its natural gas retail business, CenterPoint Energy Services Inc. to Energy Capital Partners LLC, a private equity and credit investor specializing in energy infrastructure projects, for total consideration of about $400 million, including estimated working capital at close, subject to the satisfaction of customary terms and conditions.

As part of the deal, CenterPoint Energy Services will enter into a structured long-term Preferred Supply agreement where Shell Energy North America (US), L.P. (SENA) will provide gas supply and collateral support, as well as receive equity warrants.

CenterPoint Energy said it will use net proceeds of the sale to repay a portion of its debt.

The sale is anticipated to be completed in the second quarter 2020.