Oct 21 (Reuters) – CenterPoint Energy (CNP.N) will sell its natural gas distribution unit in Ohio to National Fuel Gas (NFG.N) for $2.62 billion, as the U.S. utility focuses on its core regulated electric and gas operations in other states.
Shares of distribution company National Fuel fell 4.7% in morning trade on Tuesday and that of CenterPoint were down marginally.
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Assets being sold include about 5,900 miles of transmission and distribution pipeline in Ohio serving about 335,000 metered customers, CenterPoint said.
The deal is the latest in a slew of sales by U.S. utilities refocusing on higher-growth, regulated markets in response to surging power demand.
It will allow CenterPoint to recycle more than $2 billion into other electric and natural gas businesses, CEO Jason Wells said.
Analysts at Scotiabank said the deal shows CenterPoint’s progress toward a profit growth of nearly 9%, which would be among the fastest in the industry.
Being one of the few utilities with the ability to turn demand into earnings should make CenterPoint attractive to investors, they said.
The deal will boost CenterPoint’s balance sheet and free up capital to expand in Texas, Indiana and Minnesota.
The utility in late September said it was planning $65 billion in capital spending from 2026 through 2035.
For National Fuel, the unit provides a stronger foothold in Ohio, broadening its regulated gas utility services.
The deal value represents roughly 1.9 times the unit’s 2024 rate base, CenterPoint said, adding that the deal is expected to close in the fourth quarter of 2026.
CenterPoint expects $1.42 billion in proceeds in 2026 and the rest in 2027.
The company delivers electricity and natural gas to more than 7 million customers across Indiana, Louisiana, Minnesota, Mississippi, Ohio and Texas.
Reporting by Katha Kalia in Bengaluru; Editing by Sahal Muhammed
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