04-02-2020, 11:15 AM
(04-02-2020, 11:06 AM)EricL Wrote: CenterPoint Energy (CNP) is the first utility on my watch list to cut. Thought it would be able to make it without doing so, but I was wrong on this one.UTEs cutting divs is scary Eric.
CenterPoint Energy (NYSE:CNP) unveils several steps to strengthen its financial position in response to Enable Midstream Partners' (NYSE:ENBL) 50% distribution cut.
CenterPoint will reduce 2020 capital spending by $300M to $2.3B, target $40M in operation and maintenance expense reductions, and cut its quarterly dividend nearly in half to $0.14/share from $0.29.
Given CenterPoint's 53.7% ownership of Enable's outstanding units, the distribution decrease would reduce distributions to CenterPoint by ~$155M/year.
Separately, CenterPoint names Chief Accounting Officer Kristie Colvin as interim CFO to succeed Xia Liu, who will leave the company to become CFO at WEC Energy (NYSE:WEC).
CNP +3.6% pre-market.