CenterPoint Energy Offloads Ohio Gas Business to National Fuel in $2.62B Strategic Pivot

The Deal in Numbers

CenterPoint Energy just inked a major divestiture, selling its Ohio natural gas distribution operations to National Fuel Gas Company for $2.62 billion. The transaction values the Ohio LDC business at roughly 1.9x its 2024 rate base, covering approximately 5,900 miles of pipeline infrastructure and serving around 335,000 metered customers across West Central Ohio.

Why Now? Capital Reallocation at Scale

Here’s the strategic angle: CenterPoint isn’t just dumping assets. The company plans to recycle more than $2 billion from this sale into its electric and natural gas businesses across Texas, Indiana, and Minnesota—markets where it has deeper operational footprints. The move aligns with CenterPoint’s refreshed 10-year capital plan, which targets an industry-leading $65 billion investment commitment.

This capital optimization strategy is designed to fuel what the company calls “industry-leading earnings growth.” CenterPoint recently raised its non-GAAP EPS growth guidance to 9% for 2025, with sustained expansion targets extending through 2035.

Timeline and Deal Structure

The transaction is expected to close in Q4 2026, pending Hart-Scott-Rodino review and Public Utilities Commission of Ohio approval. CenterPoint will receive proceeds in two tranches: $1.42 billion in 2026 and the remaining $1.20 billion in 2027 via a seller note arrangement.

The Bigger Picture

National Fuel, a diversified energy operator headquartered in Western New York with four business segments (Exploration & Production, Pipeline & Storage, Gathering, and Utility), is acquiring a stable, customer-centric asset base. Meanwhile, CenterPoint is consolidating its portfolio around markets where it maintains stronger competitive advantages.

This isn’t CenterPoint’s first gas LDC divestiture—the company has executed several similar transactions recently, signaling a deliberate shift toward its core regulated electric and multi-state natural gas operations. The move reflects a broader trend in the utility sector: strategic rationalization to enhance operational efficiency and shareholder returns.

Jason Wells, CenterPoint’s CEO, emphasized that the sale will enable “seamless transition” for customers while allowing the company to concentrate capital where returns align with long-term growth targets.