CenterPoint Energy, Vectren Merge

CenterPoint Energy Inc. and Vectren Corporation have entered into a definitive merger agreement.

Headquartered in Houston, CenterPoint Energy Inc. is a domestic energy delivery company. Its significant natural gas operations in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma and Texas serve more than 3.4 million customers. The company also delivers electricity to more than 2.4 million customers in the greater Houston area. Its competitive natural gas sales and services business has more than 100,000 customers in 33 states. With nearly 8,000 employees, CenterPoint and its predecessor companies have been in business for more than 150 years.

Vectren Corporation is an energy holding company headquartered in Evansville, Ind., employing about 5,500 people. It provides natural gas to more than 1 million customers in Indiana and Ohio, and electricity to 145,000 customers in Indiana. Non-utility subsidiaries and affiliates across the country offer infrastructure services (including underground pipeline construction, repair and replacement), performance contracting and other services.

These include Miller Pipeline (Indianapolis), a large natural gas distribution contractor, and Minnesota Limited (Big Lake, Minn.), a large pipeline transmission contractor, which formalized their partnership into MVerge, an infrastructure services division of Vectren offering turnkey solutions to the pipeline construction market.

When the merger is completed, the company will be named CenterPoint Energy. Corporate headquarters will be in Houston, but the newly combined natural gas utility operations and Indiana electric operations will be headquartered in Evansville.
“By combining our two highly complementary companies, we are creating an energy delivery, infrastructure and services leader that will drive value for our shareholders and customers, while enhancing growth opportunities for our businesses,” said Scott Prochazka, CenterPoint president and CEO.

The “new” CenterPoint will operate regulated utility businesses in eight states, have a combined footprint in nearly 40 states, and serve more than 7 million customers. Total assets will be $29 billion, and the enterprise value will be $27 billion. In addition, CenterPoint expects to maintain an annual guidance basis EPS growth target of 5 to 7 percent in 2019 and 2020, excluding any one-time, merger-related charges.

Under the terms of the agreement, Vectren shareholders will receive $72 in cash for each share of Vectren common stock. CenterPoint will also assume all outstanding Vectren net debt. The merger is expected to close by the first quarter of 2019, subject to approvals, regulatory filings and other conditions.

“This merger represents a significant step toward our vision to lead the nation in delivering energy, service and value,” added Prochazka. “From the evolution of customer expectations to the development of innovative technologies, this is a time of extraordinary opportunity for our industry. As a combined company, we will continue to focus on a future that benefits our customers, employees, communities and shareholders.”

Carl Chapman, chairman, president and CEO of Vectren echoed the enthusiasm. “With CenterPoint Energy, we’ve found the right partner to begin the next chapter for Vectren and our family of companies,” he said. “Together, we will be a stronger, more competitive company that will be well-positioned to continue to provide value for our stakeholders in the years to come.”

FOR MORE INFORMATION
CenterPoint Energy Inc., (800) 495-9880, centerpointenergy.com

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