CenterPoint Energy Thursday announced a leadership change atop the organization, with COO Jason Wells replacing the retiring David Lesar as CEO.
Wells will become CenterPoint’s CEO on Jan. 5. Lesar will work closely with his successor in the meantime to ensure a seamless transition, the Houston-based company said.
“I have full confidence that Jason is the right person to take the helm,” Lesar told financial analysts during the company’s third-quarter earnings conference call. “Now is the right time to advance this transition as our very strong third-quarter results demonstrate. We have great momentum and a solid foundation in place. Making this change at the beginning of 2024 allows Jason and the team to hit the ground running.”
Lesar, a former CEO with Haliburton, was brought out of retirement in 2020 to provide leadership after the Texas Public Utility Commission reduced a $161 million rate case settlement to $13 million. Scott Prochazka resigned as CEO shortly after the decision. (See New CenterPoint CEO Promises to ‘Simplify the Story.’)
Wells joined CenterPoint as its CFO in 2020, shortly after Lesar was appointed CEO. The two have worked together to “reshape and launch our utility-focused strategy,” he said.
Wells previously spent 13 years with PG&E Corp., where he worked his way up the ladder before eventually serving as CFO. He holds bachelor’s and master’s degrees in accounting from the University of Florida.
He thanked Lesar for his “tireless” leadership, mentorship and friendship and said he has “incredibly big shoes to fill.”
CenterPoint reported earnings of $256 million ($0.40/diluted share), compared to $189 million ($0.30/diluted share) for the same period a year ago. The company said the results primarily were driven by growth, regulatory recovery and favorable weather.
It was the 14th straight quarter CenterPoint has met or exceeded expectations, Lesar said. Zacks Investment Research had projected earnings of $0.37/share.
Commiserating with CenterPoint’s executive team over the Houston Astros’ recent elimination from the MLB playoffs, one analyst said, “You can win every year in the utility business, but you can’t in baseball.”
“So true,” Lesar responded. He closed the conference call by saying, “Just stick with us, because the best is yet to come.”
CenterPoint’s share price closed at $27.60 Thursday, a gain of 13 cents for the day.
