National Fuel to Buy CenterPoint’s Ohio Gas Utility

(Bloomberg) -- National Fuel Gas Company of Western New York agreed to buy CenterPoint Energy Inc.’s Ohio natural gas utility to for $2.6 billion.

The deal will significantly expand Nation Fuel’s utility business beyond its core footprint in New York and Pennsylvania. according to a statement Tuesday. Houston-based CenterPoint will use the proceeds to invest in its electric and gas utilities in Texas, Indiana and Minnesota,

The deal is the latest example of US utilities selling off non-core assets to refocus their operations. Center Point Chief Executive Officer Jason Wells is planning to invest $65 billion over the next 10 years building out the company’s operations to meet growing electricity demand and said this month that selling the Ohio unit was an important part of that plan.

National Fuel Gas Company is based outside Buffalo, New York. It also operates pipelines and runs a gas exploration and production business in the Marcellus and Utica shale basins, according to the company’s website. 

CenterPoint’s Ohio utility operates about 5,900 miles (9,500 kilometers) of transmission and distribution pipelines serving 335,000 homes and businesses. National Fuel tapped Toronto-Dominion Bank and Wells Fargo for a bridge loan to finance the deal.

CenterPoint expects the deal to close in the fourth quarter of 2026.

National Fuel’s shares rose 0.7% before the start of regular trading in New York on Tuesday. CenterPoint shares rose 0.2%. 

TD Securities and Jones Day advised National Fuel on the deal. Goldman Sachs Group Inc. and Guggenheim Securities were CenterPoint’s financial advisers. Its legal advisers included Gibson, Dunn & Crutcher and Barnes & Thornburg. 

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