8-KMaterial AgreementsExhibits & Filings

CENTERPOINT ENERGY INC 8-K Report, Material Agreement (Nov 15, 2017)

Filed November 15, 2017For Securities:CNP

Summary

CenterPoint Energy Inc. (CNP) filed an 8-K on November 15, 2017, to announce a material definitive agreement related to its investment in Enable Midstream Partners, LP. Specifically, Enable GP, LLC, the general partner of Enable Midstream Partners, LP, adopted a Fifth Amended and Restated Agreement of Limited Partnership (Amended Partnership Agreement). This amendment is primarily to align Enable Midstream's partnership structure and procedures with changes in the Internal Revenue Code concerning partnership audit and adjustment rules, enacted by the Bipartisan Budget Act of 2015. An important operational note for investors is the removal of references to subordinated units, as all such units have already converted into common units. This amendment is effective as of November 14, 2017, and signifies a procedural update rather than a change in ownership or strategic direction for CenterPoint Energy's stake in Enable Midstream. Investors should note that the full details are contained within the referenced exhibit.

Key Highlights

  • 1CenterPoint Energy announced an amendment to the Enable Midstream Partners, LP Limited Partnership Agreement.
  • 2The amendment, effective November 14, 2017, is to comply with new IRS partnership audit and adjustment rules under the Bipartisan Budget Act of 2015.
  • 3The Fifth Amended and Restated Agreement of Limited Partnership was adopted by Enable GP, LLC.
  • 4References to subordinated units and related provisions have been removed as they no longer exist.
  • 5This filing is primarily a procedural update related to tax code compliance for Enable Midstream.
  • 6The full agreement is available as an exhibit to the 8-K filing.

Frequently Asked Questions

The main purpose of this filing is to report a material definitive agreement, specifically the adoption of the Fifth Amended and Restated Agreement of Limited Partnership for Enable Midstream Partners, LP. This amendment is to ensure compliance with updated Internal Revenue Code regulations concerning partnership audits.

This filing primarily relates to procedural and tax compliance updates for Enable Midstream Partners, LP. It does not appear to indicate any change in CenterPoint Energy's ownership structure in Enable Midstream or any immediate operational changes resulting from this amendment. The changes are to the internal governance and tax handling procedures of the partnership itself.

The removal of references to subordinated units signifies that all of these units have previously been converted into common units. This amendment cleans up the partnership agreement by removing provisions related to units that are no longer outstanding.

The complete text of the Fifth Amended and Restated Agreement of Limited Partnership is filed as Exhibit 10.1 to this Current Report and is incorporated by reference.