CenterPoint Energy drops after $800 mln equity offering

CenterPoint Energy

28/05/2025 12:30

**  Shares of utility CenterPoint Energy CNP.N down 2.2% before the bell at $36.90 after follow-on priced with forward sale component

    ** Houston, Texas-based CenterPoint late Tues announced ~21.6 mln shares at $37 for total deal size of $800 mln

      ** Offering price represents 1.9% discount to stock's last sale of $37.73

    ** Co entered into separate
    forward sales agreements with bookrunners BoFA, Mizuho and JP Morgan

    ** Upon settlement of such agreements, expected to occur no later than Feb 25, 2027, CNP plans to use net proceeds for general purposes, including commercial or other debt repayment

    ** With ~652.7 mln shares outstanding, CNP has $24.6 bln market cap

    ** Also late Tues, co said now expects to spend $52.5 bln through 2030, just a month after boosting its 10-yr capex plan by $1 bln to $48.5 bln, betting on surge in AI power demand

    ** Through Tues, CNP shares up ~19%
    YTD and outperforming S&P 500 Utilities index's .SPLRCU ~7% advance

    ** Of 18 analysts covering CNP, recommendation breakdown is 6 "strong buy" or "buy", 12 "hold" with $40 median PT, according to latest LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))