CENTERPOINT ENERGY INC Completes Sale of VEDO for $2.62B

What Happened
CenterPoint Energy Inc. (through subsidiary CenterPoint Energy Resources Corp.) announced on Oct. 1, 2026 that it completed the previously announced sale of all equity interests in Vectren Energy Delivery of Ohio, LLC (VEDO) to National Fuel Gas Company pursuant to a Purchase Agreement dated Oct. 20, 2025. The total stated purchase price is $2.62 billion, subject to customary post‑closing adjustments.

Key Details

• Buyer: National Fuel Gas Company; Seller: CenterPoint Energy Resources Corp. (a wholly owned, indirect subsidiary of CenterPoint Energy).
• Purchase Price: $2.62 billion total, comprised of $1.42 billion paid in cash at closing (subject to adjustments for net working capital, regulatory assets/liabilities and closing capital expenditures) and a $1.20 billion promissory note issued by the Buyer.
• Seller Note terms: $1.20 billion principal, 6.50% annual interest, maturity Sept. 30, 2027; includes affirmative and negative covenants (e.g., consolidated debt-to-capitalization ratio cap of 0.65:1.0, restrictions on liens and dispositions, and covenants relating to VEDO).
• Remedies and defeasance: Lender (Seller) may accelerate the loan and pursue remedies on default; borrower may irrevocably deposit funds with a paying agent to defease covenants while the note remains outstanding.
• Related filing: Company furnished a press release as Exhibit 99.1 and filed the Seller Note Agreement as Exhibit 10.1 to the 8‑K.

Why It Matters
This filing confirms CenterPoint has completed a major asset sale that reduces its regulated distribution footprint and provides near‑term cash proceeds plus a sizeable promissory note from National Fuel. The note’s interest rate, short maturity (Sept. 30, 2027) and borrower covenants are material to CenterPoint’s credit exposure and timing of actual cash realization; purchase price adjustments may further change the net proceeds. Investors should note the company retains counterparty credit exposure to National Fuel under the note but also contractual protections (covenants and default remedies).