Business Context and Reporting Period
This Form 8-K filing by CenterPoint Energy, Inc. and CenterPoint Energy Resources Corp. (CERC) covers the period ending May 30, 2014. The report details the closing of a transaction related to the Master Formation Agreement (MFA) entered into on March 14, 2013, with OGE Energy Corp. and affiliates of ArcLight Capital Partners, LLC to form Enable Midstream Partners, LP (Enable).
Key Financial Metrics
The filing does not provide standard financial metrics such as revenue, profit, cash flow, margins, debt, or liquidity figures. The transaction described involved the exchange of equity interests rather than a cash transaction.
- Transaction Type: Equity contribution and exchange.
- Cash Impact: No cash payment was required by Enable or CERC.
- Units Received: 6,322,457 common units representing limited partner interests in Enable.
Material Changes
On May 13, 2014, CenterPoint exercised its put right regarding a 24.95% interest in Southeast Supply Header, LLC (SESH). The transaction closed on May 30, 2014. CERC contributed this 24.95% interest in SESH to Enable. The number of units received was adjusted to reflect a 1 for 1.279082616 reverse unit split effected by Enable in connection with its initial public offering.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on future outlook, or specific risk factors beyond the execution of the previously agreed-upon MFA terms. The transaction was executed as a standard fulfillment of the put right provision within the MFA.
Key Facts for Investor Verification
- Verify the valuation of the 6,322,457 Enable common units received by CERC.
- Confirm the impact of the 24.95% SESH interest transfer on CenterPoint's consolidated financial statements.
- Review the terms of the Master Formation Agreement to understand future obligations or rights related to Enable Midstream Partners, LP.
- Check subsequent filings for the market performance of the Enable units received.