CenterPoint Energy Discloses $1.2B Sale of Gas Assets, Fuels Capital Expansion Plans After Q4 Results
Portfolio Pulse from Nabaparna Bhattacharya
CenterPoint Energy, Inc. (CNP) reported Q4 adjusted earnings per share of 32 cents, aligning with expectations and marking a 14% year-over-year increase. This growth was driven by regulatory recovery and a one-time tax benefit. Additionally, CNP announced the sale of its Louisiana and Mississippi natural gas operations to Bernhard Capital Partners for $1.2 billion, representing less than 4% of its rate base. The sale will fund a $1 billion boost to its capital plan, now totaling $44.5 billion through 2030. CNP reaffirmed its 2024 EPS guidance, indicating an 8% growth.

February 20, 2024 | 1:49 pm
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CenterPoint Energy's Q4 earnings met expectations with a 14% increase YOY, driven by regulatory recovery and tax benefits. The sale of gas assets for $1.2B will fund capital expansion, with a revised 10-year plan of $44.5B. 2024 EPS growth is projected at 8%.
The positive earnings report, coupled with the strategic sale of underperforming assets to fund capital expansion, positions CNP favorably for future growth. The reaffirmation of the 2024 EPS growth target further supports a positive outlook, likely leading to increased investor confidence and potential stock price appreciation in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100