Deltas Utilities to buy CenterPoint Energy operations in Louisiana, Mississippi

Delta Utilities struck an agreement with CenterPoint Energy to buy its natural gas distribution operations in both Louisiana and Mississippi.

CenterPoint’s natural gas distribution systems serve approximately 381,000 residential and commercial customers across both states. Delta Utilities is owned by Bernhard Capital Partners, a services and infrastructure-focused private equity management firm.

“This agreement models Bernhard Capital’s commitment to building more resilient communities through investment in critical infrastructure assets,” Jeff Jenkins, founder and partner at Bernhard Capital Partners, said. “This transaction will bring together deep expertise and leadership with many years of experience in utility operations and the invaluable institutional knowledge of those who have operated these systems for decades to benefit customers. It builds upon our recent announcement to acquire Entergy’s New Orleans and Baton Rouge natural gas distribution businesses, establishing stronger, more resilient communities across the Gulf South. Once both transactions are complete, Delta Utilities will be a leading natural gas utility in Louisiana and Mississippi and among the top 40 providers in the United States.”

All current employees of CenterPoint’s Louisiana and Mississippi natural gas business units will be offered employment by Delta Utilities. Officials said that bringing these operations into Delta Utilities will add scale and capacity that benefits all operations, allowing for enhanced service delivery, affordable rates for customers and additional investment into infrastructure improvements.

The sale is expected to close in the first quarter of 2025.

Jefferies serves as the lead financial advisor to Bernhard Capital, with Scotiabank also serving as a financial advisor.