Latest news with #capitalinvestments
Yahoo
27-05-2025
- Business
- Yahoo
CenterPoint Energy (NYSE:CNP) Completes Grid Resiliency Enhancements Ahead Of Hurricane Season
CenterPoint Energy recently finalized its grid resiliency improvements ahead of the 2025 hurricane season, a development that emphasizes its dedication to customer service and reliability. The company's stock price increased by 8% over the past quarter, a period marked by positive market movements that did not significantly diverge in direction. The completion of key infrastructural upgrades added positive weight against a backdrop of market disturbances, such as trade uncertainties led by presidential announcements impacting broad market indices. Overall, CenterPoint's enhancements and strategic collaborations supported its stock performance amidst fluctuating market conditions. We've discovered 2 weaknesses for CenterPoint Energy (1 is a bit concerning!) that you should be aware of before investing here. Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 24 best rare earth metal stocks of the very few that mine this essential strategic resource. The recent news regarding CenterPoint Energy's completion of grid resiliency improvements is an integral part of the company's planned capital investments aimed at enhancing future revenue and earnings growth. These developments align with the narrative of CenterPoint's focus on infrastructure upgrades to support load growth and regulatory stability. Increased capital expenditures, like the $1 billion boost through 2030, can reinforce long-term earnings potential, especially given the projected 5.3% annual revenue growth and increased profit margins confirming analyst forecasts. Over the past five years, CenterPoint Energy's total shareholder return, including stock appreciation and dividends, was 135.03%, showcasing a robust performance relative to individual market fluctuations. Over the past year alone, the company's shares outperformed the US Market's 9.1% return and the US Integrated Utilities industry, which returned 12.5%, reflecting its resilience in various market conditions. Considering the current share price stands at US$38.92, slightly above the consensus analyst price target of US$37.97, implies that investors perceive the stock to be appropriately valued. However, the close proximity suggests potential moderation in upward price movement unless further earnings forecasts are realized. Analysts anticipate earnings will reach $1.4 billion by 2028, requiring a future PE ratio of 22.0x, down from today's 26.3x, which may reflect elevated expectations within the industry. This calculation serves as an important context when weighing the company's current valuation against its growth potential. Gain insights into CenterPoint Energy's past trends and performance with our report on the company's historical track record. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:CNP. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
08-05-2025
- Business
- Globe and Mail
Cenovus cuts jobs to remain competitive, CEO says as company concludes series of capital investments
Cenovus Energy Inc. CVE-T has cut an undisclosed number of jobs, which chief executive Jon McKenzie said is part of the company's plan to remain competitive as the oil giant wraps up a series of capital investments. Cenovus would not confirm the number of jobs cut, nor where those workers were located, but said in an email that the changes are 'part of a continued focus on being more competitive across all areas of our business.' With a number of projects concluding, it said, 'we have reviewed some team structures, which has led to some employees and contractors leaving the company.' Asked about the job cuts on an earnings call Thursday, Mr. McKenzie said he wouldn't comment on the numbers or locations of job losses out of respect for affected employees. 'As a company, we are getting to the end of an investment cycle in this business, and our capital spending is decreasing,' he said. 'Consistent with that, the amount of work that we have to do is decreasing, and that means we've got to readjust our labor force to make it fit for purpose and ensure that we are competitive.' Projects close to completion include the West White Rose extension off the coast of St. John's, NL, and, in Northern Alberta, the construction of a 17-km pipeline from the company's Narrows Lake lease to its Christina Lake processing facility, and improvements at its Foster Creek oil sands site. At least 50 people lost their jobs at a single location in Alberta - the minimum number to trigger mandatory notice to the provincial government. Alberta Jobs Minister Matt Jones confirmed the job losses in an emailed statement, adding it is challenging every time Albertans lose their jobs. 'Cenovus has indicated that severance, extended benefits, and career counselling services are being provided to support impacted qualifying employees,' Mr. Jones said. The job losses come as the company on Thursday posted a fall in its first-quarter profit, but beat analyst cash flow expectations largely driven by stronger-than-expected oil sands earnings and higher prices. Upstream production hit 818,900 barrels a day, maintaining a near-record performance and exceeding the previous quarter, the company said. Total production for the quarter was about 1 per cent higher than analysts expected. Cenovus also announced an 11 per cent increase to its base dividend, to $0.80 per share. Mr. McKenzie said a large drop in capital spending over the next year will be due to the completion of the West White Rose project. The White Rose field sits around 350 kilometres east of St. John's. It produces roughly 26,000 barrels a day, but that number is falling as its oil reserves decline. The extension project will add about 75,000 barrels a day to production and extend the life of the field to 2038. Cenovus floated a massive gravity-based structure for the project on Wednesday night, Mr. McKenzie said, and will tow it to the field in June. After a few months of commissioning and startup work, the company will start drilling, with first production expected in the second quarter of 2026. 'This is becoming very real, very, very quickly,' he said. Cenvous' capital spend will begin to come down in the forth quarter of 2025 as other projects move to the commissioning and startup phases, Mr. McKenzie said. 'We have high confidence that we are going to be decreasing our capital budget from the 5 billion that we've been running in to a lower number in 2026,' he said. 'We've spent the last three years focusing on the growth plan. This year, we've got about 1.4 to 1.8 billion of growth spent, and that growth, really in earnest, starts to show up this year and going through into 2027.'
