OGE Energy and ArcLight Capital have entered into an agreement under which an ArcLight affiliate will acquire a 9.9% equity ownership stake in Enogex, OGE's midstream natural gas pipeline subsidiary.
As part of the transaction, OGE will contribute its marketing business, OGE Energy Resources, to Enogex, and ArcLight will pay $183m for the equity ownership stake in Enogex.
The transaction is expected to be completed by 1 November 2010, and will enable ArcLight to increase its ownership stake over time by providing equity funding for capital expenditures associated with Enogex’s business plan.
OGE chairman, president and CEO Pete Delaney said that the agreement will provide OGE with additional equity funding flexibility that will enable the company to fund ongoing capital expenditures at both businesses with the goal of improving its credit profile and increasing earnings.