Key Points:
- CenterPoint Energy will sell natural gas assets in Louisiana and Mississippi for $1.2 billion to Bernhard Capital Partners.
- The move is part of CenterPoint’s strategy to focus on its regulated business, aligning with investor preferences for stable returns.
- The sale includes 12,000 miles of main pipelines serving 380,000 customers in Louisiana and Mississippi.
- CenterPoint expects the deal to close by the end of the first quarter 2025 without impacting its profit growth targets.
CenterPoint Energy (CNP.N) decided to divest its natural gas assets in Louisiana and Mississippi for $1.2 billion to Bernhard Capital Partners. This move aims to streamline its operations and concentrate on its regulated business, aligning with investor preferences for steady returns.
CEO Jason Wells emphasized the company’s confidence in and commitment to its regulated natural gas utilities in Texas, Indiana, Minnesota, and Ohio, where it maintains significant footprints and rate bases. CenterPoint’s decision reflects a strategic realignment to optimize its portfolio and enhance shareholder value.
The sold assets include approximately 12,000 miles of main pipelines, serving approximately 380,000 customers in Louisiana and Mississippi. The transaction is expected to close by the end of the first quarter of 2025 and will not impact CenterPoint’s targeted adjusted profit growth rate of 8% in 2024 and the mid-to-high end of 6%-8% annually from 2025 through 2030.
CenterPoint reported performance in its fourth-quarter results, citing increased interest expenses that offset growth and rate recovery. The company’s revenue of $2.18 billion fell short of the average analyst estimate of $2.69 billion, according to LSEG data. However, its adjusted profit of 32 cents per share aligned with expectations.
Despite reporting fourth-quarter results that fell short of revenue expectations, CenterPoint remains resilient in its pursuit of growth and profitability. The company’s ability to maintain an adjusted profit aligned with analyst estimates amidst increased interest expenses demonstrates its operational efficiency and strategic resilience.
CenterPoint Energy is well-positioned to capitalize on opportunities in its regulated markets, particularly in Texas, Indiana, Minnesota, and Ohio. By concentrating on these core areas, CenterPoint aims to sustain its growth trajectory and deliver value to its stakeholders in the coming years.
