NiSource Inc. and Columbia Pipeline Group (CPG) have announced that the separation of the two companies was completed successfully through a distribution of all the common stock of CPG held by NiSource to NiSource shareholders.
Under the terms of the distribution, effective at 11:59 pm, New York City time, on 1 July 2015, NiSource shareholders were distributed one share of CPG stock for every one share of NiSource common stock they held as of 5:00 pm CT on 19 June 2015, the record date. Beginning with market open on 2 July, CPG will begin ‘regular way’ trading on the NYSE as an independent public company under the symbol CPGX.
As of the separation, NiSource, based in Merrillville, Indiana, remains one of the largest natural gas utility companies in the US, serving more than 3.5 million customers in seven states under the Columbia Gas and NIPSCO brands. The company also provides electric distribution, generation and transmission services for approximately 500 000 NIPSCO electric customers in northern Indiana. NiSource will continue to be listed on the New York Stock Exchange (NI).
"As a pure play utility company, NiSource offers a fully regulated platform for growth with a storied track record of execution on stakeholder-supported system enhancement opportunities, which are expected to exceed US$30 billion over the next 20 plus years," said NiSource President and Chief Executive Officer Joseph Hamrock. "This straightforward and well established plan is underpinned by a deep commitment to safety, customer service, environmental sensitivity and employee engagement."
CPG, based in Houston, includes Columbia Gas Transmission, Columbia Gulf Transmission, Columbia Midstream Group, its ownership interest in Columbia Pipeline Partners LP (CPPL), and other natural gas pipeline, storage and midstream holdings previously owned by NiSource. In total CPG operates more than 15 000 miles of natural gas transmission pipelines, nearly 300 billion ft3 of underground natural gas storage working capacity, and a growing portfolio of midstream and related facilities.
"As an independent company, we are committed to unlocking significant value and enabling even greater growth investment," said CPG Chairman and Chief Executive Officer Robert C. Skaggs, Jr. "We are actively executing on a significant number of transformational growth opportunities, as well as our landmark long term system modernisation programme. These investments are expected to drive robust adjusted EBITDA and dividend growth and triple CPG's net investment by 2020."
Adapted from press release by Rosalie Starling
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/03072015/nisource-and-columbia-pipeline-group-complete-separation-1037/