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NiSource approves separation of CPG

World Pipelines,


NiSource Inc.’s Board of Directors approved the separation of Columbia Pipeline Group (CPG) from NiSource through a distribution of CPG common stock to NiSource shareholders. In connection with the Board's approval, NiSource confirmed the distribution ratio, record date and distribution date for the separation.

As a result, the following will occur:

  • The distribution of CPG common stock is expected to be made after the close of trading on the New York Stock Exchange (NYSE) on 1 July, 2015 (distribution date) to NiSource shareholders of record as of 5:00 p.m. Central Time on 19 June, 2015 (record date).
  • On the distribution date, NiSource shareholders will receive one (1) share of CPG common stock for every one (1) share of NiSource common stock held as of the record date.
  • Following the distribution, CPG will be an independent, publicly traded company, and NiSource will retain no ownership interest in CPG.

"Today's announcement marks another important milestone in NiSource's history and our commitment to building and enhancing shareholder value," NiSource President & Chief Executive Officer Robert C. Skaggs, Jr. said. "As independent, highly focused, premier entities, both NiSource and CPG will benefit from the size and scale of their distinct assets and customer bases. And, both are positioned to deliver enhanced long-term growth supported by investment grade credit ratings, long-term infrastructure investment opportunities, growing dividends and solid leadership."

NiSource will remain one of the largest natural gas utility companies in the US, serving more than 3.4 million customers in seven states under the Columbia Gas and NIPSCO brands. The company also will continue to provide electric distribution, generation and transmission services for approximately 450 000 NIPSCO electric customers in northern Indiana. NiSource will continue to be headquartered in Merrillville, Indiana, and plans to maintain current levels of community involvement, charitable giving and economic development support following the separation.

CPG, based in Houston, after separation will include Columbia Gas Transmission, Columbia Gulf Transmission, Columbia Midstream Group, its ownership in Columbia Pipeline Partners, and other natural gas pipeline, storage and midstream holdings currently 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 announced in December 2014, upon completion of the separation, Skaggs will become Chairman and Chief Executive Officer of CPG. Joseph Hamrock, currently Executive Vice President and group Chief Executive Officer of NiSource's Gas Distribution business unit, will be named NiSource President and Chief Executive Officer and appointed to its Board.

Expected to continue serving on the NiSource Board following the separation are current independent NiSource board members Richard L. Thompson, who is expected to continue serving as Board Chairman, Richard A. Abdoo, Michael E. Jesanis, Aristides S. Candris and Carolyn Y. Woo.

Members of NiSource's current Board expected to join the CPG Board upon separation are independent board members Sigmund L. Cornelius, Marty R. Kittrell, W. Lee Nutter, Deborah S. Parker and Teresa A. Taylor. None of these expected CPG directors are expected to continue to serve on the NiSource Board following the separation.


Adapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/03062015/nisource-approves-separation-of-cpg/

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