CenterPoint Energy, Inc. has completed the sale of its Ohio natural gas business, Vectren Energy Delivery of Ohio, LLC, to National Fuel Gas Company. The transaction, valued at $2.62 billion, closed on October 1, 2026.
The purchase price consists of $1.42 billion in cash paid at closing, subject to adjustments for net working capital, regulatory assets and liabilities, and capital expenditures. Additionally, National Fuel Gas issued a promissory note to CenterPoint Energy Resources Corp. in the amount of $1.20 billion.
The promissory note, known as the Seller Note, carries an interest rate of 6.50% per annum and is set to mature on September 30, 2027. The agreement includes covenants that limit the borrower's consolidated indebtedness to consolidated capitalization to a ratio of 0.65 to 1.0, as well as restrictions on liens, asset dispositions, and activities related to Vectren Energy Delivery of Ohio.
The assets sold include approximately 5,900 miles of gas transmission and distribution pipelines serving about 335,000 metered customers in West Central Ohio. National Fuel Gas will assume responsibility for serving these customers immediately following the closing.
CenterPoint Energy stated that the proceeds from the sale will support its $66.7 billion, 10-year capital plan and investments in its electric and natural gas systems across its core utility footprint.
