After announcing the sale of its Oklahoma and Arkansas gas operations, CenterPoint Energy, Inc. said its first quarter income available to common shareholders was $334 million or 56 cents a diluted share, a big improvement over a year earlier when the company suffered a loss of $1.2 billion.
On a non-GAAP basis, first quarter 2021 earnings were $0.59 per diluted share, with $0.47 per diluted share from utility operations, and $0.12 per diluted share from midstream investments, compared to $0.50 per diluted share from utility operations and $0.10 per diluted share from midstream investments in first quarter 2020.
The Houston-based company announced April 29 the sale of its Arkansas and Oklahoma natural gas LDC assets to Summit Utilities for $2.15 billion in cash. The deal also includes recovery of approximately $425 million in cash of unrecovered storm-related incremental natural gas costs incurred in February 2021.
“The increasing strength of our utility operations contributed to our strong first quarter results,” said Dave Lesar, President and Chief Executive Officer of CenterPoint Energy. “We are developing a consistent track record of delivering on our financial and strategic objectives that we outlined during our 2020 Investor Day.”
“Regarding strategic objectives, we recently announced the agreement to sell our Arkansas and Oklahoma gas LDC businesses for $1.725 billion, net of winter storm related gas costs, representing a landmark valuation. At this sales price, we now anticipate that this transaction will provide us with approximately $300 million of incremental after-tax proceeds, compared to our Investor Day plan. These additional proceeds will now allow us the opportunity to begin to invest above our current $16 billion capital plan after the sale closes.”
Lesar said the company is reaffirming its 2021 Utility earnings per share range of $1.24 to $1.26. CenterPoint has a current $16 billion 5-year capital plan.
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