National Fuel to Buy CenterPoint Ohio Gas Utility for $2.62 Billion
The Western New York energy company will double its gas-utility rate base by taking over about 335,000 Ohio customers and 5,900 miles of pipeline.
National Fuel Gas Company (NFG) agreed to buy CenterPoint Energy’s Ohio natural gas local distribution company, Vectren Energy Delivery of Ohio, LLC, for $2.62 billion on a cash-free, debt-free basis, subject to customary closing adjustments.
The purchase price represented about 1.6 times estimated 2026 rate base of $1.6 billion, National Fuel said. CenterPoint framed the same $2.62 billion as about 1.9 times 2024 Ohio LDC rate base.
Upon closing, National Fuel will take the equity of the Ohio LDC, a dedicated operating team, and roughly 5,900 miles of distribution and transmission pipeline serving about 335,000 residential, commercial, industrial, and transportation customers that consume about 60 Bcf of natural gas a year.
The deal will double the size of National Fuel’s gas-utility rate base and expand operations into Ohio, a jurisdiction described as highly supportive of natural gas with a constructive regulatory framework. After the close, National Fuel will serve about 1.1 million customers. It expects $900 million of capital spending in the Ohio business over the next five years and said it would fund that growth with free cash flow from its integrated upstream and gathering operations.
The purchase will be paid with $1.42 billion in cash and a $1.2 billion promissory note from National Fuel to CenterPoint Energy Resources Corp., a CenterPoint subsidiary. The financing strategy is designed to maintain existing investment-grade credit ratings. Consolidated adjusted operating results are expected to be neutral in fiscal 2028, the first complete year after closing, and accretive thereafter, excluding acquisition-related costs.
CenterPoint said the sale continues its practice of recycling capital and that the proceeds will help support the efficient funding of its $66.7 billion, 10-year capital plan. President and CEO Jason Wells said the company remains focused on executing its long-term strategy and investing in the electric and natural gas systems that serve customers across its core utility footprint. “The proceeds from this transaction will help support the efficient funding of our $66.7 billion, 10-year capital plan and our continued efforts to enhance the resiliency and reliability of our infrastructure and facilitate economic growth during one of the most dynamic periods in our industry’s history while helping keep bills as low as possible,” Wells concluded.
Closing is expected in the fourth quarter of calendar 2026, pending a notice filing and review with the Public Utilities Commission of Ohio, Hart-Scott-Rodino review, and other customary conditions. The acquisition remains on track for that window.