UPDATE 1-CenterPoint Energy considering review of Enable Midstream investment

Mon Feb 1, 2016 7:28am EST
 
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Feb 1 (Reuters) - Electric and natural gas utility CenterPoint Energy Inc said on Monday it was considering strategic options for its investment in oil and natural gas pipeline company Enable Midstream Partners LP, including a sale or a spinoff.

The move follows CenterPoint's $363 million investment in Enable Midstream's preferred securities on Friday, through the early redemption of notes payable to a CenterPoint unit of the same amount.

CenterPoint owns a 50 percent general partner interest and 55.4 percent limited partner interest in Enable Midstream, which it jointly controls with OGE Energy Corp.

CenterPoint said it will also explore converting all or part of its utility business into a real estate investment trust (REIT).

"The REIT structure has recently received significant attention in the regulated utility industry in Texas and could have substantial potential for CenterPoint," Chief Executive Scott Prochazka said in a statement.

CenterPoint serves Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma and Texas.

Up to Friday's close of $7.58, Enable Midstream's shares had more than halved over the past twelve months. (Reporting by Amrutha Gayathri in Bengaluru; Editing by Sriraj Kalluvila)