CenterPoint Energy Inc. will sell its Ohio natural gas distribution business to National Fuel Gas Company for $2.62 billion, marking another step in the utility’s effort to streamline operations and reinvest in its core electric and gas markets.
The sale includes Vectren Energy Delivery of Ohio, which operates about 5,900 miles of pipeline serving 335,000 customers across west-central Ohio. The price equates to 1.9 times the company’s 2024 rate base, underscoring continued investor interest in regulated energy distribution assets.
CenterPoint said the divestiture supports its strategy to concentrate on larger markets in Texas, Indiana, and Minnesota, where it has a greater customer footprint and active capital investment plans. Proceeds from the transaction will be redeployed into the company’s $65 billion capital plan, which targets grid modernization, gas system upgrades, and reliability improvements.
“This transaction allows us to optimize our portfolio and efficiently recycle more than $2 billion back into our other electric and natural gas businesses,” said Jason Wells, CenterPoint’s chair, and chief executive officer. “While we’ve executed several gas LDC transactions in recent years to drive growth, natural gas distribution remains a core part of our strategy.”
The sale is expected to close in the fourth quarter of 2026, pending approval from the Public Utilities Commission of Ohio and clearance under the Hart-Scott-Rodino Antitrust Improvements Act. CenterPoint expects to receive $1.42 billion in 2026 and $1.20 billion in 2027 via a seller note.
For National Fuel, headquartered in Western New York, the deal expands its regulated utility footprint into Ohio, adding to its existing operations in New York and Pennsylvania. The company’s four business segments—Exploration and Production, Pipeline and Storage, Gathering, and Utility—serve about 760,000 customers today.
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