CenterPoint Energy Inc. (NYSE: CNP) announced today that it will sell its Ohio natural gas Local Distribution Company (LDC), Vectren Energy Delivery of Ohio, LLC, to National Fuel Gas Company (NYSE: NFG) for $2.62 billion. The transaction includes roughly 5,900 miles of transmission and distribution pipeline and serves about 335,000 metered customers in Ohio. The deal is part of CenterPoint’s ongoing portfolio optimization, following the March 2025 sale of its Louisiana and Mississippi LDCs.
The $2.62 billion cash proceeds will be used to strengthen CenterPoint’s balance sheet, reduce debt, and fund its aggressive capital plan in Texas, where the company expects a nearly 50% increase in peak electric demand by 2031. By divesting its Ohio assets, CenterPoint can concentrate capital and operational resources on high-growth Texas jurisdictions, improving return on equity and supporting its long‑term earnings guidance. The sale also aligns with the company’s strategy to streamline its regulated asset base and enhance shareholder value.
The transaction is expected to close in 2026, subject to customary regulatory approvals and customary closing conditions. The divestiture is a material event that will reshape CenterPoint’s asset mix, reduce its regulated rate base, and provide a significant liquidity boost that can be deployed toward debt reduction, capital expenditures, or shareholder returns. Investors will view the sale as a positive step toward a more focused, high‑growth portfolio and a stronger financial position.
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