Dividend Announcement Thread!

[fenders53]

(04-02-2020, 11:22 AM)EricL Wrote:

(04-02-2020, 11:15 AM)fenders53 Wrote:

(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.

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.

UTEs cutting divs is scary Eric.

CNP had significant exposure to an MLP, Enable Midstream. Enable cut its distribution, lowering the amount of cash flow headed to the parent company CNP.

It is a relatively unique situation, but there are a few others with exposure to mid-stream. OGE for example, has a stake in Enable as well.

I have completely avoided any UTE with significant exposure to petro pricing.   I know where to got find that risk when I want it. Do you have much CNP in your port or was it just a screen candidate for your SA article?