Natural Gas Is Cheap. Why Electricity Isn’t.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 19 2024
0mins
Should l Buy CNP?
Source: MarketWatch
- Electricity Costs Surge: Electricity costs increased by 0.9% in March compared to February on a seasonally adjusted basis and rose by 5% year-over-year, with a significant 10.2% annual increase last year.
- Natural Gas Prices Impact: Despite natural gas, the main input cost for electricity, becoming cheaper, electricity costs have been rising. Natural gas generates 42% of U.S. electricity, and prices spiked due to Russia's invasion of Ukraine, leading to a shift of U.S. gas to Europe to replace Russian supplies.
- Current Gas Prices: Gas prices have now fallen below $2 per million after the initial spike following the events in Ukraine.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy CNP?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on CNP
Wall Street analysts forecast CNP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CNP is 41.80 USD with a low forecast of 36.00 USD and a high forecast of 45.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
4 Buy
6 Hold
0 Sell
Moderate Buy
Current: 40.050
Low
36.00
Averages
41.80
High
45.00
Current: 40.050
Low
36.00
Averages
41.80
High
45.00
About CNP
CenterPoint Energy, Inc. is an energy delivery company. The Company, through its subsidiaries, owns and operates electric transmission, distribution and generation facilities and natural gas distribution systems. Its segments include Electric and Natural Gas. The Electric segment includes electric transmission and distribution services that are subject to rate regulation in Houston Electric's and Indiana Electric's service territories. The Natural Gas segment includes intrastate natural gas sales to, and natural gas transportation and distribution for residential, commercial, industrial and institutional customers in Indiana, Minnesota, Ohio, and Texas; permanent pipeline connections through interconnects with various interstate and intrastate pipeline companies; and home appliance maintenance and repair services to customers in Minnesota and home repair protection plans to natural gas customers in Indiana, Ohio and Texas through a third party.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Strategic Partnership Enhances CenterPoint's Resiliency Initiative in Houston
- Agreement Signing: Resilient Structures (RS) has entered into a long-term supply agreement with CenterPoint Energy to support the Greater Houston Resiliency Initiative, enhancing the region's energy infrastructure against extreme weather, directly impacting over 2.9 million customers' power supply.
- Local Manufacturing Expansion: RS will expand its operations in Humble, Texas, projecting the creation of over 200 new jobs, which represents a significant economic commitment to the Houston area while addressing the growing infrastructure demands.
- Supply Chain Optimization: By sourcing high-performance infrastructure materials locally, RS and CenterPoint aim to shorten the supply chain, accelerating the deployment of storm-hardened structures across CenterPoint's 12-county service territory, thereby enhancing grid reliability and resiliency.
- Support for Economic Growth: This agreement not only ensures the safety of CenterPoint's electric infrastructure against extreme weather but also promotes local economic growth through job creation, showcasing the shared commitment of both companies to community safety and stability.
See More
Winter Storm Fern Significantly Impacts Energy Sector and Stock Fluctuations
- Natural Gas Producers in Focus: The surge in natural gas prices due to Winter Storm Fern has put companies like Antero Resources and EOG Resources in the spotlight, with analysts predicting significant upside potential for these producers amid production disruptions.
- Equipment Manufacturers at Risk: The freezing of natural gas equipment and pipelines could halt operations for energy transfer companies such as Energy Transfer and Kinder Morgan, potentially impacting their production and revenue.
- Power Supply Assurance: PJM, the largest U.S. power grid, has warned of a potential winter peak, prompting CenterPoint Energy and Duke Energy to implement emergency plans to ensure reliable power supply during the storm.
- Airline Industry Disruption: The storm has led to the cancellation of over 9,400 flights by airlines including Delta, JetBlue, and United Airlines, causing widespread travel disruptions and affecting numerous travelers nationwide.
See More
CenterPoint Energy Mobilizes 2,800 Workers to Restore Power to 30,000 Customers Amid Winter Storm
- System Stability: As of 4 p.m., CenterPoint's electric system is operating as designed with less than 1% of customers affected, approximately 1,000 still experiencing outages, demonstrating the company's resilience in extreme weather conditions.
- Rapid Recovery Progress: Since 6 a.m. Saturday, CenterPoint has restored power to nearly 30,000 customers, indicating the company's efficient recovery capabilities in response to the winter storm.
- Resource Mobilization: The company has deployed over 500 contractors from nine states to support the hardest-hit areas, ensuring continued service during upcoming severe cold weather, showcasing its strong resource integration capabilities.
- Safety Reminders and Customer Communication: CenterPoint advises customers to maintain a safe distance from downed lines and utilizes Power Alert Service® to provide real-time restoration updates, enhancing customer safety awareness and information transparency.
See More
CenterPoint Energy Mobilizes 2,800 Workers to Restore Power to 30,000 Customers Amid Winter Storm
- Emergency Response Capability: CenterPoint Energy mobilized 2,800 workers during the winter storm to ensure rapid power restoration under high winds and freezing conditions, successfully restoring power to nearly 30,000 customers, demonstrating the company's emergency response effectiveness in extreme weather.
- Customer Impact Assessment: As of 4 p.m., approximately 1,000 customers were still experiencing weather-related outages, affecting less than 1% of the 2.9 million customers served, indicating the overall stability of the company's system and its ability to effectively handle emergencies.
- Resource Allocation: The company deployed over 500 contractors from nine states to support recovery efforts in heavily impacted areas, showcasing CenterPoint's resource integration capabilities and effective interstate collaboration in crisis management.
- Safety Reminders and Customer Communication: CenterPoint emphasized safety precautions for customers encountering downed power lines and maintained communication through various channels to keep customers informed about restoration progress and safety information, enhancing customer trust and satisfaction.
See More
CenterPoint Energy Mobilizes 3,300 Workers to Restore Power Amid Winter Storm Impacting Greater Houston
- Power Restoration Progress: As of 6 a.m., approximately 2,000 customers in the Houston area are experiencing outages due to the winter storm, representing less than 1% of the 2.9 million customers served, while 27,000 customers have had their power restored, demonstrating effective response capabilities.
- Emergency Preparedness Measures: CenterPoint Energy activated its Emergency Operations Center on January 21, mobilizing a workforce of 3,300 and preparing over 700 natural gas workers to address potential equipment damage and outages, ensuring customer safety and service restoration.
- Equipment Inspection and Maintenance: The company inspected and tested all 270 electric substations and pre-staged over 9,200 distribution poles, 11,500 transformers, and more than 1,500 vehicles to meet potential power restoration demands, ensuring stable electricity supply during extreme weather.
- Customer Communication and Support: CenterPoint is providing safety and preparedness information to customers through social media and direct outreach, encouraging enrollment in the Power Alert Service® for outage details and restoration times, enhancing customer safety and information transparency during the winter storm.
See More
CenterPoint Energy Restores Power to Over 99% of Customers Amid Winter Storm
- Restoration Progress: As of 6 a.m., CenterPoint Energy has restored power to approximately 27,000 customers, with less than 2,000 currently affected, demonstrating the company's effective recovery capabilities during the winter storm.
- Emergency Response Team: The company has mobilized a workforce of 3,300 workers to conduct damage assessments and restore power, ensuring rapid response under extreme weather conditions, reflecting its commitment to customer service.
- Equipment Preparedness: Prior to the winter storm, CenterPoint Energy prepared over 9,200 distribution poles and 11,500 transformers, ensuring quick restoration of power during adverse weather, thereby enhancing the company's emergency response capabilities.
- Customer Safety Reminder: The company advises customers to maintain a safe distance of at least 35 feet from downed power lines, emphasizing the importance of ensuring customer safety during extreme weather conditions.
See More
Strategic Partnership Enhances CenterPoint's Resiliency Initiative in Houston
- Agreement Signing: Resilient Structures (RS) has entered into a long-term supply agreement with CenterPoint Energy to support the Greater Houston Resiliency Initiative, enhancing the region's energy infrastructure against extreme weather, directly impacting over 2.9 million customers' power supply.
- Local Manufacturing Expansion: RS will expand its operations in Humble, Texas, projecting the creation of over 200 new jobs, which represents a significant economic commitment to the Houston area while addressing the growing infrastructure demands.
- Supply Chain Optimization: By sourcing high-performance infrastructure materials locally, RS and CenterPoint aim to shorten the supply chain, accelerating the deployment of storm-hardened structures across CenterPoint's 12-county service territory, thereby enhancing grid reliability and resiliency.
- Support for Economic Growth: This agreement not only ensures the safety of CenterPoint's electric infrastructure against extreme weather but also promotes local economic growth through job creation, showcasing the shared commitment of both companies to community safety and stability.
See More
Winter Storm Fern Significantly Impacts Energy Sector and Stock Fluctuations
- Natural Gas Producers in Focus: The surge in natural gas prices due to Winter Storm Fern has put companies like Antero Resources and EOG Resources in the spotlight, with analysts predicting significant upside potential for these producers amid production disruptions.
- Equipment Manufacturers at Risk: The freezing of natural gas equipment and pipelines could halt operations for energy transfer companies such as Energy Transfer and Kinder Morgan, potentially impacting their production and revenue.
- Power Supply Assurance: PJM, the largest U.S. power grid, has warned of a potential winter peak, prompting CenterPoint Energy and Duke Energy to implement emergency plans to ensure reliable power supply during the storm.
- Airline Industry Disruption: The storm has led to the cancellation of over 9,400 flights by airlines including Delta, JetBlue, and United Airlines, causing widespread travel disruptions and affecting numerous travelers nationwide.
See More
CenterPoint Energy Mobilizes 2,800 Workers to Restore Power to 30,000 Customers Amid Winter Storm
- System Stability: As of 4 p.m., CenterPoint's electric system is operating as designed with less than 1% of customers affected, approximately 1,000 still experiencing outages, demonstrating the company's resilience in extreme weather conditions.
- Rapid Recovery Progress: Since 6 a.m. Saturday, CenterPoint has restored power to nearly 30,000 customers, indicating the company's efficient recovery capabilities in response to the winter storm.
- Resource Mobilization: The company has deployed over 500 contractors from nine states to support the hardest-hit areas, ensuring continued service during upcoming severe cold weather, showcasing its strong resource integration capabilities.
- Safety Reminders and Customer Communication: CenterPoint advises customers to maintain a safe distance from downed lines and utilizes Power Alert Service® to provide real-time restoration updates, enhancing customer safety awareness and information transparency.
See More
CenterPoint Energy Mobilizes 2,800 Workers to Restore Power to 30,000 Customers Amid Winter Storm
- Emergency Response Capability: CenterPoint Energy mobilized 2,800 workers during the winter storm to ensure rapid power restoration under high winds and freezing conditions, successfully restoring power to nearly 30,000 customers, demonstrating the company's emergency response effectiveness in extreme weather.
- Customer Impact Assessment: As of 4 p.m., approximately 1,000 customers were still experiencing weather-related outages, affecting less than 1% of the 2.9 million customers served, indicating the overall stability of the company's system and its ability to effectively handle emergencies.
- Resource Allocation: The company deployed over 500 contractors from nine states to support recovery efforts in heavily impacted areas, showcasing CenterPoint's resource integration capabilities and effective interstate collaboration in crisis management.
- Safety Reminders and Customer Communication: CenterPoint emphasized safety precautions for customers encountering downed power lines and maintained communication through various channels to keep customers informed about restoration progress and safety information, enhancing customer trust and satisfaction.
See More
CenterPoint Energy Mobilizes 3,300 Workers to Restore Power Amid Winter Storm Impacting Greater Houston
- Power Restoration Progress: As of 6 a.m., approximately 2,000 customers in the Houston area are experiencing outages due to the winter storm, representing less than 1% of the 2.9 million customers served, while 27,000 customers have had their power restored, demonstrating effective response capabilities.
- Emergency Preparedness Measures: CenterPoint Energy activated its Emergency Operations Center on January 21, mobilizing a workforce of 3,300 and preparing over 700 natural gas workers to address potential equipment damage and outages, ensuring customer safety and service restoration.
- Equipment Inspection and Maintenance: The company inspected and tested all 270 electric substations and pre-staged over 9,200 distribution poles, 11,500 transformers, and more than 1,500 vehicles to meet potential power restoration demands, ensuring stable electricity supply during extreme weather.
- Customer Communication and Support: CenterPoint is providing safety and preparedness information to customers through social media and direct outreach, encouraging enrollment in the Power Alert Service® for outage details and restoration times, enhancing customer safety and information transparency during the winter storm.
See More
CenterPoint Energy Restores Power to Over 99% of Customers Amid Winter Storm
- Restoration Progress: As of 6 a.m., CenterPoint Energy has restored power to approximately 27,000 customers, with less than 2,000 currently affected, demonstrating the company's effective recovery capabilities during the winter storm.
- Emergency Response Team: The company has mobilized a workforce of 3,300 workers to conduct damage assessments and restore power, ensuring rapid response under extreme weather conditions, reflecting its commitment to customer service.
- Equipment Preparedness: Prior to the winter storm, CenterPoint Energy prepared over 9,200 distribution poles and 11,500 transformers, ensuring quick restoration of power during adverse weather, thereby enhancing the company's emergency response capabilities.
- Customer Safety Reminder: The company advises customers to maintain a safe distance of at least 35 feet from downed power lines, emphasizing the importance of ensuring customer safety during extreme weather conditions.
See More
