CenterPoint: Additional "Opportunistic" Retail Acquisitions Possible
November 4, 2016 Email This Story Copyright 2010-16 EnergyChoiceMatters.com
Reporting by Paul Ring • email@example.com
During an earnings call on Friday, CenterPoint Energy, Inc. CEO Scott Prochazka said the company's goal is to grow its competitive energy services business, and is open to opportunistic acquisitions
CenterPoint earlier this month announced that its CenterPoint Energy Services, Inc. unit had signed an agreement under which CES will acquire Atmos Energy's retail energy services business, Atmos Energy Marketing, LLC (AEM). Click here for details on the transaction
Asked by an analyst about the strategy for the energy services business, Prochazka said, "Let me characterize the strategy this way. We see it as an important part of our business mix, it's a great complement to our gas utilities. We will continue to look for opportunities organically through the management team for growing that business just as we're growing our utilities. I would characterize any thoughts around M&A as opportunistic as opposed to a stated strategy in that direction. Our goal though is to continue to grow that business just as we're growing our utilities."
CenterPoint's energy services segment reported operating income of $5 million for the third quarter of 2016 compared with $7 million for the same period in the prior year. Third quarter operating income for 2016 included a mark-to-market accounting loss of $2 million, compared to a gain of $5 million for the same period of the prior year. Excluding mark-to-market adjustments, operating income would have been $7 million in the third quarter of 2016 and $2 million in the third quarter of 2015.