CenterPoint Energy exits midstream interest with sale
CenterPoint Energy sold its Energy Transfer (ET) holdings as part of its plan to exit its midstream interest.
The sale includes the company’s remaining 51 million ET common units and all its ET Series G preferred units. The net proceeds will pay down debt and taxes from the transaction.
Further, Moody’s Investors Service revised the CenterPoint Energy, Inc. downgrade threshold of cash flow from operations to debt ratio to 13 percent from 14 percent. Moody’s said the company’s recent credit strengths include the exit of the midstream business, its diverse group of regulated utilities operating in credit supportive regulatory environments, and good economic and regulatory diversity across its service territories.
“As committed, we have taken decisive actions to align our interests more closely with those of our customers and our investors, including refocusing on our core regulated utility businesses,” CenterPoint President and CEO Dave Lesar said. “As we extend our track record of meeting and exceeding expectations, we believe our accelerated exit from midstream well ahead of our goal of year-end 2022 demonstrates that we are a management team that is committed to becoming a premium utility with industry-leading growth.”
CenterPoint Energy delivers energy to more than 7 million metered customers in Indiana, Louisiana, Minnesota, Mississippi, Ohio, and Texas.
“We believe that these actions to improve our business risk profile and strengthen our balance sheet, coupled with investments in our pure-play regulated business and efficient recycling of capital, position us firmly on that path. Our long-term strategy also supports a transition to a cleaner energy future that will benefit our customers and our investors,” Lesar said.
