CenterPoint Energy monitors tropical system in Gulf with minimal impact expected

HOUSTON - CenterPoint Energy (NYSE:CNP), a $23.6 billion utility company known for its stable operations and 55-year track record of consecutive dividend payments according to InvestingPro, is monitoring a low-pressure system offshore of Florida’s east coast, designated as Invest 93L, as it moves across Florida toward the Gulf of Mexico, according to a company statement released Tuesday.

Current weather models project the system will remain relatively weak but could develop into a tropical depression or low-end tropical storm before making landfall in Central or Western Louisiana by the end of the week. The Greater Houston area is expected to experience rain and possible localized flash flooding on Friday and Saturday.

"We project a low likelihood that this storm could become a tropical depression or tropical storm later this week and are prepared to respond accordingly," said Matt Lanza, CenterPoint’s Manager of Meteorology. "Impacts to the Greater Houston area are currently expected to be minimal beyond some isolated heavy rains and localized flash flooding."

The company has implemented several measures as part of its summer storm readiness plan, including mobilizing vegetation management workers, coordinating with government officials, conducting outreach to critical care customers, and organizing additional call center staffing.

Since Hurricane Beryl last summer, CenterPoint has completed various resiliency improvements across its 12-county service area, including installing over 26,000 storm-resilient poles, undergrounding more than 400 miles of power lines, and installing over 100 weather stations to improve storm preparation. These infrastructure investments align with the company’s solid financial performance, with InvestingPro data showing revenue growth of 4.76% over the last twelve months.

CenterPoint Energy (NYSE:CNP) encourages customers to enroll in its Power Alert Service to receive outage details and restoration updates. The company also advises customers to prepare and have a safety plan for this week’s weather. For investors seeking detailed analysis, InvestingPro offers comprehensive research reports and additional insights, including 6 more key ProTips that highlight the company’s defensive characteristics with its beta of 0.56.

In other recent news, CenterPoint Energy has announced an $800 million stock offering, which is expected to be settled by February 2027. This initiative involves forward sale agreements with major financial institutions like Bank of America and JPMorgan Chase, with the proceeds potentially used for general corporate purposes. Additionally, CenterPoint Energy has increased its capital plan by 8% or $4 billion, as noted by KeyBanc Capital Markets, who maintained a Sector Weight rating for the company. The expansion is largely driven by growth in the Texas market, and the company plans to support this plan by divesting its Ohio Gas Local Distribution Company assets.

Jefferies has raised its price target for CenterPoint Energy shares to $43, highlighting the company’s potential for further upside due to anticipated capital expenditures. The firm also projects an 8.4% compound annual growth rate in earnings per share through 2029. Evercore ISI has also increased its price target for CenterPoint Energy to $41, maintaining an Outperform rating, and noted the company’s first-quarter 2025 adjusted earnings per share of $0.53 met expectations.

CenterPoint Energy has further expanded its collaboration with Convey to improve communication during extreme weather events. This partnership aims to enhance customer engagement by delivering critical updates and modernizing communication methods. The company’s strategic initiatives, including its capital plan and communication enhancements, reflect its commitment to leveraging technology for improved operational efficiency.

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