CenterPoint Energy Services, Inc. (CES), an indirect, wholly-owned subsidiary of CenterPoint Energy, Inc, has closed on its previously reported agreement (see story here) to acquire Atmos Energy's retail energy marketing business, Atmos Energy Marketing, LLC (AEM).

"This is an exciting time for our CES business," said Joe Vortherms, vice president of CES. "This transaction is a strategic fit for both CES and AEM, and the acquisition will enable CES to more effectively access new markets and customer segments, grow our customer base and gross margins, and maintain our low value-at-risk, cost-effective organizational structure. AEM's complementary operational and geographic footprints will provide CES with increased scale, geographic reach, and expanded capabilities that will enable it to grow, while maintaining a focus on excellent customer service."

"Energy Services is an integral part of our company that allows us to provide gas purchase options to CenterPoint's growing customer base," said Scott Prochazka, president and chief executive officer of CenterPoint Energy. "AEM is a key investment that will allow us to expand our footprint and build scale to better serve our current and future customers."

AEM adds approximately 400 Bcf of additional natural gas throughput and 800 delivered gas customers to CES.

With the addition of the AEM business, CES now operates in six additional states for a total of 32 states and will deliver in excess of 1 trillion cubic feet of natural gas to approximately 100,000 customers annually, including 33,000 metered commercial and industrial customers and 65,000 individual Choice retail customers.

Tags:
CenterPoint Energy Services   M&A  

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