OGE Energy forms joint venture with CenterPoint and ArcLight creating $11 billion master limited partnership

Client(s) OGE Energy Corp.

Jones Day advised OGE Energy in the formation of an $11 billion master limited partnership that includes CenterPoint Energy's interstate pipelines and field services businesses and the midstream business of Enogex LLC, owned jointly by subsidiaries of OGE and ArcLight.

The new partnership owns and operates 8,400 miles of interstate pipelines with nearly 9 billion cubic feet of transport capacity and nearly 2,300 miles of intrastate pipelines. It also has more than 11,000 miles of gathering lines, which in 2012 moved nearly 4 billion cubic feet of natural gas per day. Additionally, it has more than 90 billion cubic feet of natural gas storage capacity and 11 major processing plants with nearly 2 billion cubic feet per day of inlet capacity. The joint venture is owned 28.5 percent by OGE Energy, 58.3 percent by CenterPoint Energy, and 13.2 percent by ArcLight, and will be managed by a general partner whose governance will be shared by OGE Energy and CenterPoint Energy on a 50/50 basis.

In addition to M&A representation, Jones Day provided energy, banking, capital markets, employee benefits, tax, and antitrust advice regarding this transaction.