Core Viewpoint - CenterPoint Energy has agreed to sell its Ohio natural gas distribution business, Vectren Energy Delivery of Ohio, to National Fuel Gas Company for $2.62 billion, which includes approximately 5,900 miles of pipeline servicing around 335,000 customers [1][2]. Group 1: Transaction Details - The transaction is expected to close in the fourth quarter of 2026, pending customary closing conditions and regulatory approvals [2]. - CenterPoint is projected to receive $1.42 billion upon closing and the remaining $1.2 billion in 2027 via a seller note [1]. Group 2: Impact on National Fuel - The acquisition will double National Fuel's gas utility rate base to approximately $3.2 billion and expand its operations into Ohio [3]. - The transaction is expected to be accretive to National Fuel's earnings per share, excluding acquisition-related expenses, and neutral to overall operating results by fiscal year 2028 [4]. Group 3: Strategic Objectives - National Fuel's acquisition aligns with its strategic objective to increase the scale of regulated operations through high-quality assets in favorable regulatory environments [5]. - The acquisition provides an opportunity to reinvest free cash flow from integrated upstream and gathering operations, enhancing the long-term outlook for regulated growth [7].

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Core Viewpoint - National Fuel Gas Company is acquiring CenterPoint Energy's Ohio Natural Gas Utility business, indicating a strategic expansion in the natural gas sector [2][3]. Group 1: Acquisition Details - The acquisition involves CenterPoint Energy's Ohio Natural Gas Utility business, which is expected to enhance National Fuel's operational footprint [2]. - A press release and investor presentation regarding the acquisition have been made available on the Investor Relations website [2]. Group 2: Conference Call Structure - The conference call features key executives from National Fuel Gas Company, including the President and CEO, and the Treasurer and CFO, who will provide insights into the acquisition [3]. - The call will conclude with a question-and-answer session, allowing for further clarification and discussion on the acquisition [3].

Summary of National Fuel Gas Company Conference Call Company and Industry - **Company**: National Fuel Gas Company (NYSE: NFG) - **Industry**: Natural Gas Utility Key Points and Arguments Acquisition Details - National Fuel Gas Company announced the acquisition of CenterPoint Energy's Ohio Natural Gas Utility business for **$2.62 billion** on a cash-free, debt-free basis, valuing the transaction at approximately **1.6 times** the estimated rate base at year-end **2026** [4][10] - The acquisition will add **335,000 customers** and over **5,900 miles** of natural gas transmission and distribution pipelines, along with a **$1.6 billion** rate base [4][10] - Expected closing of the acquisition is in the **fourth quarter of calendar 2026**, pending regulatory reviews [4][10] Strategic Importance - The acquisition is part of National Fuel's strategic priority to grow through M&A, particularly in regulated sectors [4][10] - It is expected to enhance the company's investment-grade credit profile and support continued growth on both regulated and non-regulated sides [5][10] - The Ohio Natural Gas Utility business is seen as a great fit due to its scale, geographical proximity to existing operations, favorable regulatory environment, and stable customer base [5][6][10] Financial Implications - The acquisition is anticipated to be immediately accretive to the company's regulated earnings per share, excluding transaction-related expenses [6][10] - On a consolidated basis, adjusted operating results are expected to be neutral in **fiscal 2028**, with potential for accretion thereafter [7][10] - National Fuel plans to finance the acquisition through a combination of **$300 million to $400 million** in common equity, long-term debt, and free cash flow from integrated upstream and gathering operations [14][16] Regulatory Environment - Ohio's regulatory framework is described as constructive, with mechanisms in place for timely recovery of investments and system modernization [11][12] - The Ohio Commission has approved cost recovery for nearly **100%** of capital investments through various riders, providing certainty for future cash flows [12][10] Growth Opportunities - National Fuel plans to invest **$150 million to $200 million** in capital for modernization and safety improvements in the Ohio operations [27][10] - The service territory is positioned between Columbus and Cincinnati, presenting growth opportunities due to regional sprawl and investment [27][10] Integration and Future Outlook - National Fuel is committed to a smooth integration process with CenterPoint's Ohio workforce, emphasizing shared values in safety and customer service [9][17] - The acquisition is expected to deliver long-term value for stakeholders, with a strong outlook for the natural gas industry [10][18] Earnings and Capital Allocation - Historical net income from CenterPoint's Ohio business is approximately **$65 million**, with built-in rate increases expected to support growth over the next five years [30][10] - National Fuel aims to maintain a balance between strengthening its balance sheet and deploying capital for growth opportunities [40][10] Additional Important Information - The acquisition aligns with National Fuel's long-term strategy to enhance its portfolio and improve earnings and credit metrics [10][18] - The company has a nearly **125-year** history in the energy sector, reinforcing its commitment to providing reliable energy supplies [9][10]

Acquisition Overview - National Fuel Gas Company (NFG) has agreed to acquire CenterPoint's Ohio regulated gas utility business (CNP Ohio) for $2.62 billion[5] - The purchase price represents approximately 1.6x CNP Ohio's estimated 2026 rate base[5, 11] - The transaction is expected to close in the fourth quarter of calendar year 2026[7, 11] Strategic Benefits - The acquisition will increase NFG's customer base to approximately 1.1 million[8, 12] - CNP Ohio has ~$1.6 billion in rate base expected at closing[7] - NFG's regulated rate base is expected to double with the addition of CNP Ohio[8, 16] - CNP Ohio is expected to have capital spending of $900 million over the next five years[8] Financial Impact - The acquisition is expected to be immediately accretive to regulated earnings[10, 24] - Consolidated adjusted earnings per share are expected to be neutral in fiscal year 2028 and accretive thereafter[10, 24] Financing and Credit Profile - A $1.2 billion seller promissory note with an interest rate of 6.5% and a maturity date of 364 days after closing is included in the financing structure[11] - Permanent transaction financing is expected to include $300 to $400 million in equity[11] - The company is targeting Debt/EBITDA of 2.5 – 3.0x and FFO/Net Debt of greater than 30% by the end of the fiscal year after closing[11] Regulatory Environment - CNP Ohio's Stipulation under the General Rate Case on file with PUCO includes an equity layer of 52.9% and a Return on Equity of 9.85%[12, 13] - The General Rate Case filed with PUCO in July 2025 includes an agreed upon revenue increase of $60 million[18]

CenterPoint agreed to sell its Ohio natural gas utility to National Fuel Gas Company for $2.6 billion https://t.co/mmDOg7xwJY ...

Core Insights - CenterPoint Energy has agreed to sell its natural gas local distribution business in Ohio to National Fuel Gas for $2.62 billion [1] Company Summary - CenterPoint Energy is divesting its natural gas distribution operations in Ohio, indicating a strategic shift in its business focus [1] - National Fuel Gas is acquiring the Ohio distribution business, which may enhance its market presence and operational scale in the region [1] Financial Summary - The sale is valued at $2.62 billion, reflecting a significant transaction in the energy sector [1]

Core Viewpoint - CenterPoint Energy, Inc. has announced the sale of its Ohio natural gas Local Distribution Company, Vectren Energy Delivery of Ohio, LLC, to National Fuel Gas Company for $2.62 billion, indicating a strategic move to streamline operations and focus on core business areas [1]. Group 1: Transaction Details - The sale price for Vectren Energy Delivery of Ohio, LLC is $2.62 billion [1]. - The assets involved in the transaction include approximately 5,900 miles of transmission and distribution pipeline in Ohio [1]. - The business serves approximately 335,000 metered customers in the region [1].

Core Viewpoint - National Fuel Gas Company has announced a definitive agreement to acquire CenterPoint Energy Resources Corp.'s Ohio natural gas utility business for $2.62 billion, significantly expanding its regulated assets and cash flow in a favorable regulatory environment [1][2][3] Acquisition Details - The acquisition involves the equity interests in CNP Ohio for a total consideration of $2.62 billion on a cash-free, debt-free basis, representing an acquisition multiple of approximately 1.6x the estimated 2026 rate base of $1.6 billion [2] - National Fuel will acquire a team operating approximately 5,900 miles of pipeline and serving around 335,000 customers consuming approximately 60 Bcf of natural gas annually [2] - The transaction is expected to close in the fourth quarter of calendar 2026, pending regulatory approvals [2] Strategic and Financial Benefits - The acquisition will double National Fuel's gas utility rate base to approximately $3.2 billion, serving about 1.1 million customers across New York, Pennsylvania, and Ohio [6] - Ohio's regulatory framework is supportive of natural gas infrastructure improvements, allowing for timely recovery of capital investments [6] - The ability to reinvest free cash flow from upstream operations into regulated growth is expected to enhance long-term earnings and shareholder value [6][15] Financing Structure - National Fuel has secured a fully committed bridge facility for the entire purchase price, supported by The Toronto-Dominion Bank and Wells Fargo Bank [9] - At closing, a promissory note of $1.2 billion will be issued to CERC, with the remainder paid in cash [10] - The financing mix will include approximately $300 to $400 million of common equity, long-term debt, and future free cash flow, aimed at maintaining a strong credit profile [11][15] Stakeholder Benefits - The acquisition is expected to be immediately accretive to National Fuel's regulated earnings per share, enhancing the long-term outlook for regulated earnings growth and supporting the company's dividend history [15][7] - National Fuel will continue to provide reliable service at fair prices to CNP Ohio's customers, leveraging the existing workforce for operational performance [15]

Well, a mixed day on Wall Street here with the S&P 500 end ending the day fractionally lower lower. The Nasdaq as well, the Dow actually finishing the day higher. Volatility index hit a four-month high as investors digest the latest in the US China trade battle.This as the government shutdown enters its second week, third week. How should investors position amid all this uncertainty. Joining us exclusively, Mario Gabelli, chairman and CEO of Gamco Investors right here on set.It's great to have you. Welcome. ...