We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CenterPoint Energy Unit Acquires Atmos Energy Marketing
Read MoreHide Full Article
CenterPoint Energy, Inc.’s (CNP - Free Report) wholly owned subsidiary, CenterPoint Energy Services, Inc., has completed a previously announced agreement to acquire Atmos Energy Holdings, Inc.’s retail energy services business, Atmos Energy Marketing, LLC (AEM). Note that Atmos Energy Holdings is a wholly owned subsidiary of Atmos Energy Corporation (ATO - Free Report) .
Details of the Deal
The transaction will include the transfer of approximately 800 delivered gas customers and AEM’s related asset optimization business at an all cash price of $40 million plus working capital at the date of closing.
The assets will be combined with CenterPoint Energy’s non-regulated Energy Services business, which upon finalization, will operate across six additional states, bringing the total service area to 32 states, and deliver in excess of one trillion cubic feet of natural gas to approximately 100,000 customers.
Benefits of the Deal
The acquisition will allowCenterPoint Energy Services to gain access to new markets and customer segments more efficiently. Atmos Energy Marketing’s operational and geographic footprint will enable CenterPoint Energy Services to unlock growth opportunities and maintain focus on improving customer service and creating a cost-effective organizational structure.
Price Movement
Shares of CenterPoint Energyhave gained 33.6% in the last 12 months, outperforming the Zacks categorized Utility- Electric Power Market industry’s gain of 5.6%.
Steady growth in the customer count has mainly driven CenterPoint Energy’s performance over the last several quarters. In the third quarter, the company added 51,208 meter customers under its Electric Transmission & Distribution segment. This represents an annual growth rate of 2.2%. Also, CenterPoint added 34,844 users at the Gas Utility business during this period. Ongoing economic development in CenterPoint Energy’s operating territories primarily boosted the customer base. The trend is expected to continue in the future given the economic recovery in Houston, which will subsequently boost utility demand.
Ameren’s2017 estimates improved 0.4% to $2.77 from $2.76 over the last 60 days. Shares of the company gained 20.5% in the last 12 months, outperforming the broader industry.
Consolidated Edison Company’s 2017 estimates inched up 0.5% to $4.17 from $4.15 over the last 90 days. Its shares gained 13.5% in the last 12 months, outperforming the broader industry.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CenterPoint Energy Unit Acquires Atmos Energy Marketing
CenterPoint Energy, Inc.’s (CNP - Free Report) wholly owned subsidiary, CenterPoint Energy Services, Inc., has completed a previously announced agreement to acquire Atmos Energy Holdings, Inc.’s retail energy services business, Atmos Energy Marketing, LLC (AEM). Note that Atmos Energy Holdings is a wholly owned subsidiary of Atmos Energy Corporation (ATO - Free Report) .
Details of the Deal
The transaction will include the transfer of approximately 800 delivered gas customers and AEM’s related asset optimization business at an all cash price of $40 million plus working capital at the date of closing.
The assets will be combined with CenterPoint Energy’s non-regulated Energy Services business, which upon finalization, will operate across six additional states, bringing the total service area to 32 states, and deliver in excess of one trillion cubic feet of natural gas to approximately 100,000 customers.
Benefits of the Deal
The acquisition will allowCenterPoint Energy Services to gain access to new markets and customer segments more efficiently. Atmos Energy Marketing’s operational and geographic footprint will enable CenterPoint Energy Services to unlock growth opportunities and maintain focus on improving customer service and creating a cost-effective organizational structure.
Price Movement
Shares of CenterPoint Energyhave gained 33.6% in the last 12 months, outperforming the Zacks categorized Utility- Electric Power Market industry’s gain of 5.6%.
Steady growth in the customer count has mainly driven CenterPoint Energy’s performance over the last several quarters. In the third quarter, the company added 51,208 meter customers under its Electric Transmission & Distribution segment. This represents an annual growth rate of 2.2%. Also, CenterPoint added 34,844 users at the Gas Utility business during this period. Ongoing economic development in CenterPoint Energy’s operating territories primarily boosted the customer base. The trend is expected to continue in the future given the economic recovery in Houston, which will subsequently boost utility demand.
Zacks Rank & Other Key Picks
CenterPoint Energy currently has a Zacks Rank #2 (Buy). A couple of other favorably placed stocks in the same space include Ameren Corporation (AEE - Free Report) and Consolidated Edison, Inc. (ED - Free Report) . Both the companies carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ameren’s2017 estimates improved 0.4% to $2.77 from $2.76 over the last 60 days. Shares of the company gained 20.5% in the last 12 months, outperforming the broader industry.
Consolidated Edison Company’s 2017 estimates inched up 0.5% to $4.17 from $4.15 over the last 90 days. Its shares gained 13.5% in the last 12 months, outperforming the broader industry.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>