Arclight affiliate to acquire stake in Enogex

Energy company OGE and private equity firm Arclight Capital Partners have announced a transaction through which an Arclight affiliate will acquire a 9.9 per cent 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.

Arclight has agreed to pay OGE $183m (£115m) for the equity ownership stake in Enogex in a transaction that is expected to be completed by 1 November 2010.

The transaction will enable Arclight to increase its ownership stake over time, by providing equity funding for capital expenditures associated with Enogex’s business plan.