OGE Energy Corp. said Friday it exercised its right of first offer to increase the utility’s stake in Enable Midstream Partners LP along with an unnamed third party, according to a report in The Oklahoman.
OGE Energy currently holds a 26.3 percent limited partnership interest in Enable. The offer comes after Houston-based CenterPoint Energy Inc. announced earlier this year it was exploring options for its 55.4 percent limited partner interest in Enable. ArcLight Capital Partners LLC holds the remaining limited partner stake in Enable, according to The Oklahoman.
Under the partnership, OGE Energy has the right of first offer and the right of first refusal on any sales of CenterPoint’s Enable stake.
CenterPoint issued a right of first offer to OGE Energy on July 18, and OGE Energy had 30 days to respond.
“If the company’s proposal is accepted by CenterPoint, and if the transaction contemplated by the proposal is in fact consummated, the company anticipates that the third party would, as a result of such transaction, become the owner of all or substantially all of the securities subject to the ROFO (right of first offer),” OGE Energy said in a securities filing with the Securities and Exchange Commission.
OGE Energy representatives declined to comment further Friday.
In a conference call earlier this month, CenterPoint said it continues to evaluate a number of strategic alternatives for its stake in Enable, including a sale, a spinoff or maintaining its ownership.
Oklahoma City-based Enable was formed in 2013 by OGE Energy, CenterPoint and ArcLight Capital. Its general partner is equally controlled by OGE Energy and CenterPoint, according to The Oklahoman.
