Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of OGE Energy , an electric utility and natural gas provider in the south-central United States, shot up as much as 10% after it announced a partnership with Centerpoint Energy and Arclight Capital Partners to form a $10.7 billion midstream company.
So what: The new partnership is going to combine Centerpoint's interstate pipelines and field service businesses with Enogex, a midstream business that's jointly owned by OGE Energy and Arclight Capital. When formed, Centerpoint will boast a 59% stake in the company, OGE 28%, and Arclight 13%. Assuming it gains all regulatory approvals, the new company will begin operations in either the second or third-quarter this year and will control about 8,400 miles of interstate pipeline in Texas, Oklahoma, Louisiana, and Arkansas.
Now what: Genius! That's all I have to say about this move ... pure genius! Midstream transportation and storage is one of the most under-met needs in this country, and is one area where energy companies will be spending a fortune over the next decade. Pipeline and storage partnerships like this one could make for quite the investment, so keep your eye out for this partnership when it debuts.
Craving more input? Start by adding OGE Energy to your free and personalized Watchlist so you can keep up on the latest news with the company.
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The article Why OGE Energy Shares Sparked Higher originally appeared on Fool.com.
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