El Paso, Xcel, Centerpoint in Various Stages of Trouble
Brutal earnings, panic borrowing and a potential bankruptcy filing greeted energy investors Friday morning.
El Paso
( EP) was the latest, posting a 2-cent loss in the third quarter on a 16% revenue dip and saying it would exit the energy trading business. The company was supposed to earn 27 cents a share, according to the consensus estimate of analysts polled by First Call.
Meanwhile,
NRG Energy
(NRG) - Get NRG Energy, Inc. Report
reportedly offered to turn itself over to creditors via a Chapter 11 filing. The company, which was set up by
Xcel Energy
(XEL) - Get Xcel Energy Inc. Report
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to sell power in wholesale markets, owes about $10 billion and has missed a number of debt payments.
And
Centerpoint
(CPT) - Get Camden Property Trust Report
, the former Reliant Energy, will get a badly needed $1.3 billion loan from
Berkshire Hathaway
( BRK) at an annual interest rate of 12.25%,
The Wall Street Journal
reported. Centerpoint needed to raise at least $400 million by next week in order to preserve a much larger credit pact.
