CNP Energy

Locator: 10010CNP.

Yesterday I mentioned CenterPoint Energy, something I knew nothing about except that I bought some shares in this company back in the 1980s (?) and have long forgotten about them in an "orphaned" brokerage account. 

Time to take a more in-depth look.

Google CNP energy winter storm URI.

Reminder: Winter Storm URI began to hit parts of Texas on February 13, 2021.

First google hit from Forbes: Elective cooperatives, the lone shining utility start --

The more than two-thirds of Texans who lost power during this devastating storm were notably more negative than positive in their evaluation of the performance of their local electric utility, with one exception.

That exception are the members of the more than 60 electric cooperatives operating within the Texas Interconnection electrical grid, which, in sharp contrast to the customers of the commercial utilities that provide power to the majority of Texans, gave their local utility a positive evaluation related to its performance during the storm.

[Not getting good grades:] The four main utility providers are Oncor, CenterPoint CNP, American Electric Power (AEP) North, and American Electric Power (AEP) Central. 

The other 25% of the survey population live in areas with regulated markets, where a single company is responsible for both delivering the electricity to homes and businesses and serves as the only source from which electricity is purchased. 

Municipal-owned and operated utilities (e.g., Austin Energy, Bryan Texas Utilities, Burnet Electric Department, Denton Municipal Electric, New Braunfels Utilities, San Antonio’s CPS Energy serve 73% of the regulated market.

Electric cooperatives (e.g., Bluebonnet Electric Cooperative, Central Texas Electric Cooperative, Guadalupe Valley Cooperative, Lamb County Electric Cooperative, Pedernales Electricity Cooperative, Wood County Electric Cooperative) serve one-fifth of this market (21%), with private companies accounting for 6% of the regulated market. 

Texans served by electric cooperatives in regulated markets were more likely to agree that the power cuts in their local area were carried out in an equitable manner compared to Texans served by commercial electricity utilities in deregulated markets. More than half (52%) of those served by an electric cooperative agreed that power cuts during the winter storm in their area were carried out in an equitable manner, compared to only 26%, 23% and 23% of those served by Oncor, AEP and CenterPoint respectively.

Corporate presentation: 3Q21, November 4, 2021.  

CNP is in the process of becoming ... google a pure-play regulated electricity provider: CNP is one step closer to becoming a 'pure-play regulated utility' this quarter -- CEO, November 11, 2021.

CenterPoint Energy begins exit of midstream following Energy Transfer's completed acquisition of Enable Midstream Partners.

• Upon the closing of the transaction, CenterPoint Energy (CenterPoint) received approximately 201 million Energy Transfer LP (ET) common units and $5 million in cash in exchange for its Enable Midstream Partners, LP (Enable) common units and general partner interest, respectively
• In addition, CenterPoint exchanged approximately $363 million of Enable Series A Fixed to Floating Non-Cumulative Redeemable Perpetual Preferred units for approximately $385 million ET Series G Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred units
• The closing of the transaction triggers the settlement of the previously announced contingent forward sale of 50 million ET common units, or approximately 25% of CenterPoint’s total ET common unit holding
• Transaction supports and aligns with CenterPoint’s goal to fully eliminate midstream exposure by the end of 2022, its current 10-year growth strategy and plan to move to a purely regulated utility

I don't know if I have this right, but it looks to me like this:

• CenterPoint Energy, an electricity provider based in Houston, TX had (past tense) a regulated division (electric utility) and a non-regulated division (gathering and transporting natural gas by pipeline)
• the unregulated division was primary through a large stake in Enable Midstream Partners
• CenterPoint Energy sold its share of Enable Midstream Partners, LLP, to Energy Transfer
• once that sale was complete, then CenterPoint divested itself of it Energy Transfer LP shares.

I might have it wrong -- I'm generally interested in the big picture, not all the details in these kinds of stories -- but that's how I see it now.

So, the question is whether the "new" CenterPoint Energy company is a buy, hold, or sell.