Following the sale, Continuum Energy will focus on growing its midstream business
Houston (Jan. 29, 2016) – Continuum Energy, LLC (Continuum), along with its wholly-owned subsidiary, Continuum Energy Services, LLC, and CenterPoint Energy Services, Inc., (CES) an indirect, wholly-owned subsidiary of CenterPoint Energy, Inc. (NYSE: CNP) today announced the companies have entered an agreement for CES to purchase Continuum’s retail energy services business through the acquisition of Continuum Retail Energy Services, LLC (CRES), including its wholly owned subsidiary Lakeshore Energy Services, LLC, as well as Continuum’s natural gas wholesale assets.
“We are excited about the opportunity for our retail energy services business to become part of CenterPoint Energy, a company with substantial scale and diverse markets, focused on quality customer service at competitive prices. The industry-leading Continuum team members joining CenterPoint will add to their talented organization,” said Jason Few, president and chief executive officer of Continuum Energy. “This transaction allows Continuum to concentrate on growing its midstream assets and solidifies an attractive business portfolio for our stakeholders as we move forward.”
CES is part of CenterPoint Energy, an electric and natural gas energy delivery company headquartered in Houston with more than 140 years of experience in the utility and retail energy industry.
“Continuum has built an impressive retail energy services business, which complements our overall natural gas business strategy,” said Joe McGoldrick, executive vice president and president of CenterPoint Energy’s Gas Division. “With similar business models, customer-focus and risk management practices, this transaction not only positions CES to have access to more markets and efficiently grow our customer base, we expect to increase our total gross margin by 40 percent.”
The acquisition includes Continuum’s retail business; Choice customers in California, Michigan, Nebraska, Ohio and Wyoming; and its origination and logistics segment.
Following the agreement, Continuum will continue to operate its midstream, crude oil logistics and producer services businesses primarily in the Mid-Continent, Appalachia, West Texas and New Mexico and the Utica with more than 1,000 miles of gathering pipeline, 656 million cubic feet system capacity and 44,000 HP of compression.
“The Continuum brand remains strong because of the dedication and expertise of our leadership and employees,” Few said. “Our midstream and producer services business are growing, and we will continue to focus on delivering quality services and products to our customers.”
The transaction has been approved by the board of directors of both companies. Wells Fargo acted as financial advisor to CenterPoint Energy and Baker Hostetler LLP acted as their outside legal counsel. Citi acted as financial advisor to Continuum and Winston & Strawn acted as their outside legal counsel.
Continuum Energy is an integrated energy products and services company that serves over 500 producers and 90,000 retail customers across 25 states. The company owns and operates gathering, processing, treating, compression and transportation assets for natural gas, crude oil and NGLs. With midstream assets in key production areas throughout the United States, that includes more than 44,000 HP of compression, 1,000 miles of pipeline, rail terminal services, a transportation fleet, and marketing services, the company provides comprehensive services for both natural gas and crude oil producers. For more information, visit the website at www.ContinuumEnergyServices.com.
CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution and energy services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. The company also owns a 55.4 percent limited partner interest in Enable Midstream Partners, a publicly traded master limited partnership it jointly controls with OGE Energy Corp., which owns, operates and develops natural gas and crude oil infrastructure assets. With more than 7,400 employees, CenterPoint Energy and its predecessor companies have been in business for more than 140 years. For more information, visit the website at www.CenterPointEnergy.com.< Back