CenterPoint Energy Announces Exploration Of Strategic Review, Offers 2016 Outlook

Shares of CenterPoint Energy, Inc. CNP were trading higher by more than 3 percent on Monday after the company confirmed it's seeking strategic alternatives for its investment in Enable Midstream Partners, a pipeline partnership between OGE Energy Corp. OGE and CenterPoint Energy.

CenterPoint Energy noted in its press release it's evaluating strategic alternatives including a sale or spin-off of the unit in which the company owns a 50 percent general partner interest.

CenterPoint Energy also stated it will explore the use of an real estate investment trust model for all or part of its utility businesses.

Scott M. Prochazka, president and chief executive officer of CenterPoint Energy, said, "We are pleased with our investment in Enable, which has grown its distributions during 2015 and continues to enjoy volume growth despite a challenging commodity price environment. With continued connections and drilling activity across its system, Enable is well-positioned for long-term growth as commodity markets recover. We believe that now is the right time to explore options for unlocking the value of our strategic investment, reflecting our continuous commitment to drive value for shareholders."

In a second press release, CenterPoint Energy reaffirmed its 2015 full-year earnings expectations of $1.05 to $1.10 per share and guided its full year fiscal 2016 earnings to a range of $1.12 to $1.20 - exceeding the $1.10 per share Wall Street analysts were expecting.