CenterPoint Energy's Stock Sale Agreement Involves 24.9 Million Shares, Ranking as One of the Largest Deals in Recent History

On May 29, 2025, CenterPoint Energy (CNP) experienced a significant decline in trading volume, with a total of 2.81 billion shares traded, marking a 49.97% decrease from the previous day. The stock price of CNP fell by 0.19%, marking the second consecutive day of decline, with a total decrease of 1.64% over the past two days.

CenterPoint Energy has finalized a major stock sale agreement, which includes forward sale agreements with various financial institutions. These agreements allow for settlement by February 2027 and involve potential impacts on the company's financial structure. The company has entered into separate forward sale agreements with Bank of America, Mizuho Markets Americas LLC, and JPMorgan Chase Bank, National Association. These agreements encompass an aggregate of 21,621,622 shares of its common stock, with the potential for additional shares to be issued if the underwriters exercise their option to purchase more.

CenterPoint Energy has expanded its forward sale agreements to include nearly 24.9 million common shares, representing a potential $901 million in capital. This move is part of the company's broader capital plan, which aims to generate significant proceeds by early 2027. The company has also announced the pricing of a registered underwritten offering of 21,621,622 shares of its common stock at $37.00 per share. The net proceeds from this offering are expected to be used for general corporate purposes, which may include repayment of commercial paper or other debt.