Week ending October 2, 2026. Prepared October 5 from information published by October 2.

UTILITIES

Houston-based CenterPoint Energy completed the sale of its Ohio natural gas utility to National Fuel on October 1, nearly a year after signing the agreement. The business serves about 335,000 customers and includes roughly 5,900 miles of pipeline. National Fuel confirmed the closing.

The $2.62 billion price combines $1.42 billion in cash paid at closing with a $1.20 billion seller note, according to CenterPoint's filing. Nearly half the consideration remains money owed to CenterPoint. The total is subject to adjustments, and the cash figure does not establish net proceeds after taxes and fees.

The note bears interest at 6.50% a year and matures September 30, 2027. Its terms permit early repayment under specified conditions. Until repayment, CenterPoint retains exposure to the borrower's ability to pay, even though ownership of the utility has changed. The interest compensates CenterPoint for extending credit, but the rate alone does not tell us whether that credit is attractively priced.

BUSINESS CONDITIONS

September's Dallas Fed surveys describe an uneven Texas economy. The manufacturing production index rose to 29.5 from 16.1 in August, while the service revenue index fell to -0.9 from 6.6. The bank described service activity as broadly steady.

These indexes measure the share reporting increases minus the share reporting decreases, not percentage growth. They also cover different groups of businesses. Cost pressures increased in both surveys, with the service input-price index reaching its highest level since December 2022, according to the bank. Service employment remained positive. Operators face stronger factory activity alongside largely flat service revenue and broader cost pressure, rather than one common growth story.

CAPITAL MARKETS

The parent of the Texas Stock Exchange says it completed a third financing round, bringing its capital position to $430 million. Existing owners supplied more than 75% of the new round, according to TXSE Group's September 30 announcement.

The money supports the exchange business. Management says it will strengthen reserves and support primary listings and continuous trading. It is separate from money companies might raise by listing shares on the exchange. The release does not disclose the latest round's size, so $430 million should be read as the resulting capital position, rather than the amount newly raised.

DATA CENTERS

Zone Frontier announced a lease covering about 4,077 acres in Potter County for a proposed data center campus. Its lease summary sets a commencement condition of utility commitments for at least 200 megawatts of firm power. The company can waive that condition. Secured power and project financing were not established in the reviewed disclosures.

In its September 28 annual filing, management said the company's resources could not fund planned capital spending over the next 12 months. The filing also reported substantial doubt about the company's ability to continue as a going concern. These are company financial constraints, not a quantified funding gap for the Potter County project.

ENERGY STORAGE

Linea Energy reported a financing milestone for Mesa View, its planned 250-megawatt, 500-megawatt-hour battery project in Upton County. The October 1 announcement says project debt financing closed and DESRI supplied a preferred equity commitment. NORD/LB coordinated the debt financing, with Texas Capital in the lending group.

The debt includes a construction-to-term loan, a tax equity bridge loan, and a letter of credit. These facilities support development, but the announcement does not establish that all capital has been drawn. Linea expects commercial operation in 2027. Financing amounts and pricing were not disclosed, leaving the project's cost of capital unknown.

Jason Gould
Editor, The Texas Bell