8-KMaterial AgreementsExhibits & Filings

CENTERPOINT ENERGY INC 8-K Report, Material Agreement (Jun 24, 2016)

Filed June 24, 2016For Securities:CNP

Summary

This 8-K filing by CenterPoint Energy, Inc. (CNP) on June 24, 2016, primarily concerns amendments to the partnership agreements of Enable Midstream Partners, LP, in which CNP has an interest. The key changes relate to the timing of distributions for both the partnership (Enable Midstream Partners, LP) and its general partner (Enable GP, LLC). Specifically, the last permitted distribution date for Enable Midstream Partners, LP's fiscal quarters has been extended from 45 days to 60 days after the close of the quarter. Concurrently, the distribution deadline for the general partner, Enable GP, LLC, has been modified to occur within five days after the Partnership makes its distributions for the quarter. These adjustments are aimed at aligning operational timelines and potentially accommodating post-initial public offering (IPO) structures.

Key Highlights

  • 1CenterPoint Energy, Inc. (CNP) filed an 8-K on June 24, 2016, effective June 22, 2016.
  • 2The filing details amendments to the 'Fourth Amended and Restated Agreement of Limited Partnership' of Enable Midstream Partners, LP.
  • 3The primary change to the Enable Midstream Partners, LP agreement is extending the last permitted distribution date from 45 days to 60 days after each fiscal quarter's close.
  • 4Amendments were also made to the 'Third Amended and Restated Limited Liability Company Agreement' of Enable GP, LLC, the general partner of Enable Midstream Partners, LP.
  • 5The Enable GP, LLC agreement now ties its distribution deadline to five days after the Partnership makes its distributions, a change from the previous 50-day deadline.
  • 6These amendments reflect adjustments to the governance and financial distribution timelines following Enable Midstream Partners, LP's initial public offering.
  • 7The filing includes Exhibit 10.1 (Amended Partnership Agreement) and Exhibit 10.2 (Amended LLC Agreement).

Frequently Asked Questions

The main purpose of this filing is to report amendments made to the limited partnership agreement of Enable Midstream Partners, LP, and the limited liability company agreement of its general partner, Enable GP, LLC. These amendments primarily adjust the timing of financial distributions.

For CenterPoint Energy (CNP) investors, this filing is more indirect as it pertains to the operational and governance aspects of Enable Midstream Partners, LP. The changes primarily affect the timing of distributions within the Enable structure, which could have minor implications on cash flow timing for CNP, depending on its stake and how it receives distributions.

For Enable Midstream Partners, LP, the deadline for making distributions has been extended from 45 days to 60 days after the end of each fiscal quarter. For Enable GP, LLC, its distribution deadline is now set at five days after Enable Midstream Partners, LP makes its distributions for the quarter, replacing a previous 50-day deadline.

This filing does not indicate any acquisition or divestiture. The amendments appear to be adjustments to the existing structure of Enable Midstream Partners, LP, likely to align with post-initial public offering (IPO) operations and governance.