What happened
CenterPoint Energy, Inc. (NYSE: CNP) said Oct. 1, 2026, that it completed the sale of its Ohio natural gas business for $2.62 billion. National Fuel Gas Company bought the assets. The price includes $1.42 billion in cash and a $1.20 billion promissory note.
The assets are Vectren Energy Delivery of Ohio, LLC. They include about 5,900 miles of gas transmission and distribution pipeline and serve about 335,000 metered customers in West Central Ohio. The deal got the required federal and state approvals, including review by the Public Utilities Commission of Ohio. National Fuel will now take over service for the former Ohio natural gas customers.
Key numbers
| Metric | Latest | Change | Source |
|---|---|---|---|
| Sale price | $2.62 billion | CenterPoint press release | |
| Cash paid at closing | $1.42 billion | SEC 8-K | |
| Promissory note | $1.20 billion | SEC 8-K | |
| Seller note interest rate | 6.50% per annum | SEC 8-K | |
| 10-year capital plan | $66.7 billion | CenterPoint press release | |
| Company-owned assets as of June 30, 2026 | $48.3 billion | CenterPoint press release |
Why it matters
CenterPoint said the proceeds will help fund its $66.7 billion, 10-year capital plan and support work to improve the resilience and reliability of its infrastructure. OptimistFi's view is that CenterPoint can create utility-style value if regulators keep allowing it to earn on infrastructure spending. This sale gives it cash for that plan. CenterPoint also said the proceeds will support investments across its focused regulated utility footprint.
On OptimistFi's figures, the $2.62 billion price is about 5.4% of CenterPoint's $48.3 billion in assets as of June 30, 2026. That supports the funding part of the case. But the note and adjustment terms mean the final cash outcome is not fully settled. The $1.20 billion note carries 6.50% interest and matures on September 30, 2027, so part of the payment comes later.
The purchase price can still change for net working capital, regulatory assets and liabilities, and capital expenditures at closing.
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What's next
The next dated item in the filing is September 30, 2027, when the seller note matures. If National Fuel pays principal and interest by then, CenterPoint will collect the deferred part of the consideration as stated.
The note can also be defeased if the borrower deposits enough cash to cover principal and interest and delivers the required officer certificates. A full collection of the note would strengthen the case for the transaction's funding role. The adjustment language still leaves the final price open.
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Sources
- CenterPoint Energy press release — Press release announcing completion of the Ohio natural gas sale.
- CenterPoint Energy Form 8-K — 8-K reporting completion of the sale and the seller note terms.
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Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.
