8-KOther Events

CENTERPOINT ENERGY INC 8-K Report, Corporate Update (May 14, 2014)

Filed May 14, 2014For Securities:CNP

Summary

This 8-K filing from CenterPoint Energy, Inc. (CNP) reports on the exercise of a put right related to its interest in Southeast Supply Header, LLC (SESH). As part of the formation of Enable Midstream Partners, LP (Enable), CenterPoint Energy Resources Corp. (CERC), a subsidiary, will contribute its 24.95% interest in SESH to Enable. This contribution will be in exchange for 6,322,457 common units of Enable. The transaction is subject to adjustments for fair market value, potentially requiring a cash payment between Enable and CERC. The company anticipates this transaction to close in the second quarter of 2014, representing a significant step in the previously announced Master Formation Agreement with OGE Energy Corp. and ArcLight Capital Partners.

Key Highlights

  • 1CenterPoint Energy exercised its put right for a 24.95% interest in Southeast Supply Header, LLC (SESH).
  • 2The SESH interest will be contributed to Enable Midstream Partners, LP (Enable).
  • 3CenterPoint Energy Resources Corp. (CERC), a subsidiary, will receive 6,322,457 common units of Enable in exchange for the SESH interest.
  • 4The transaction is a result of the Master Formation Agreement with OGE Energy Corp. and ArcLight Capital Partners.
  • 5Potential cash payment may be required if the fair market value of the SESH interest differs from the value of the Enable units received.
  • 6The transaction is expected to close during the second quarter of 2014.
  • 7This filing does not involve any new material agreements, amendments, or financial statements, but rather an update on a previously announced strategic transaction.

Frequently Asked Questions

The main event reported is CenterPoint Energy's exercise of its put right for a 24.95% interest in Southeast Supply Header, LLC (SESH), which will be contributed to Enable Midstream Partners, LP (Enable) in exchange for Enable common units.

Enable Midstream Partners, LP was formed through a Master Formation Agreement involving CenterPoint Energy, OGE Energy Corp., and ArcLight Capital Partners to own and operate the midstream businesses of CenterPoint and OGE. This filing details a specific contribution to Enable.

The transaction is expected to close during the second quarter of 2014.

Yes, if the fair market value of the contributed SESH interest is different from the value of the Enable common units received, a cash payment may be required to be made by either Enable or CenterPoint Energy Resources Corp. (CERC).