8-KOther Events

CENTERPOINT ENERGY INC 8-K Report, Corporate Update (Jun 3, 2014)

Filed June 3, 2014For Securities:CNP

Summary

This 8-K filing from CenterPoint Energy, Inc. (CNP) reports on a transaction related to its participation in Enable Midstream Partners, LP (Enable). On May 30, 2014, CenterPoint Energy Resources Corp. (CERC), a subsidiary, contributed its 24.95% interest in Southeast Supply Header, LLC (SESH) to Enable. This action was taken pursuant to a put right exercised under a Master Formation Agreement (MFA) established on March 14, 2013, with OGE Energy Corp. and ArcLight Capital Partners, LLC. The contribution was made in exchange for 6,322,457 common units of Enable. Notably, no cash payment was required from Enable or CERC for this transaction. This event is part of the broader formation of Enable Midstream Partners, which consolidated the midstream assets of CenterPoint and OGE. Investors should note this is a non-cash exchange that increases CenterPoint's stake in the Enable partnership.

Key Highlights

  • 1CenterPoint Energy's subsidiary, CERC, contributed a 24.95% interest in Southeast Supply Header, LLC (SESH) to Enable Midstream Partners, LP.
  • 2The transaction closed on May 30, 2014, and was executed under a put right exercised by CenterPoint.
  • 3This contribution was made pursuant to a Master Formation Agreement (MFA) originally signed on March 14, 2013, with OGE Energy Corp. and ArcLight Capital Partners.
  • 4In exchange for the SESH interest, CERC received 6,322,457 common units representing limited partner interests in Enable.
  • 5No cash payment was required from Enable or CERC for this specific transaction.
  • 6This event reflects the ongoing integration and formation of Enable Midstream Partners, LP, which combines midstream assets of CenterPoint and OGE.

Frequently Asked Questions

This 8-K filing announces the completion of a transaction where CenterPoint Energy's subsidiary, CenterPoint Energy Resources Corp., contributed its interest in Southeast Supply Header, LLC (SESH) to Enable Midstream Partners, LP, in exchange for common units of Enable.

CenterPoint Energy, along with OGE Energy Corp. and ArcLight Capital Partners, agreed to form Enable Midstream Partners, LP, to own and operate their respective midstream businesses. This filing details one step in that process, the contribution of SESH to Enable.

No, the filing explicitly states that no cash payment was required to be made by Enable or CenterPoint Energy Resources Corp. in connection with this transaction. The contribution was an exchange for Enable common units.

SESH is a limited liability company in which CenterPoint Energy Resources Corp. held a 24.95% interest prior to this transaction. This interest was contributed to Enable Midstream Partners, LP.