Benzinga | Apr 29, 2021 07:20AM EDT

Centerpoint Announces Sale Of Arkansas And Oklahoma Natural Gas LDC Businesses To Summit Utilities For $2.15B In Cash

* CenterPoint to receive $2.150 billion in cash, including recovery of approximately $425 million in cash of unrecovered storm-related incremental natural gas costs incurred in February 2021

* Transaction represents a landmark valuation at 38.0x 2020 earnings and 2.5x 2020 year-end rate base

* Sale proceeds will allow CenterPoint to recycle capital to fund its industry-leading 10% planned compound annual rate base growth

* Sale will not impact company's targeted 6% - 8% annual utility non-GAAP EPS growth rate

* Sale demonstrates significantly higher market value for natural gas infrastructure assets, including CenterPoint's remaining gas businesses