XLU - OGE Energy Clarifies Investment Thesis By Selling Enable Midstream Stake

• OGE Energy has significantly under-performed the broad utility sector over the past 12-months.
• That's because OGE owns 25.5% of MLP Enable Midstream Partners' LP units, and a 50% stake in the GP, giving it considerable commodity price exposure.
• Last week, OBE announced it had agreed to a merger between Energy Transfer Partners and Enable, paving the way for it to become a pure-play electric utility company.
• The deal appears to be an equitable disposition, with OGE effectively reaping an estimated $36 million in cash while holding onto a 3% stake in Energy Transfer.
• The deal will clarify OGE's investment thesis as a pure-play utility company and should generally lift the "commodity price exposure" cloud that has hung over it and pressured the shares.

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