Question · Q3 2025
Jeremy Tonett inquired about the Ohio asset sale's credit accretive nature and its potential impact on earnings over time. He also asked for clarification on how the seller's note facilitates the financial plan and helps manage future earnings.
Answer
CFO Chris Foster stated the Ohio sale is directly beneficial to the financing plan and earnings, projecting a 25-30% reduction in cash lag. He noted proceeds would be redeployed into Texas gas and electric businesses, accelerating approximately $1 billion in CapEx in 2026 to fully replace Ohio's rate base by early 2027. He explained the seller's note provides a 6.5% annual coupon for 2027 on over $1 billion, offering clarity and quarterly settlement.