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Discontinued Operations
 12 Months Ended
Dec. 31, 2024
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Note 3 — Discontinued Operations
In March 2023, Cleco Holdings’ management, with the support of its Board of Managers, committed to a plan of action for the disposition of the Cleco Cajun Sale Group. As a result, Cleco Holdings’ management determined that the criteria under GAAP for the Cleco Cajun Sale Group to be classified as held for sale were met, and the sale represents a strategic shift that will have a major effect on Cleco’s future operations and financial results. Therefore, the results of operations and financial position of the Cleco Cajun Sale Group have been presented as discontinued operations since March 31, 2023. Certain expenses incurred by the Cleco Cajun Sale Group as a result of common services provided by Support Group are reflected in Cleco’s results of continuing operations due to the expected ongoing nature of those expenses. In addition, revenue recognized by Cleco Power from transmission services provided to the Cleco Cajun Sale Group is no longer eliminated upon consolidation of Cleco’s financial statements and is reflected in Cleco’s results of continuing operations due to the ongoing nature of these services.
On June 1, 2024, the Cleco Cajun Sellers completed the sale of the Cleco Cajun Sale Group. Upon closing, the Cleco Cajun Sellers received $474.5 million, net of adjustments as set forth in the Cleco Cajun Divestiture Purchase and Sale Agreement and adjustments based on net working capital. Also, in conjunction with the closing of the Cleco Cajun Divestiture, the Cleco Cajun Sellers paid $10.8 million to professional service firms that were engaged to facilitate the transaction. Cleco expects to receive an additional $113.0 million by June 2026, which is not contingent upon the post-divestiture performance of the divested business. This
receivable is discounted to its net present value and recorded in Receivable - Cleco Cajun Divestiture on Cleco’s Consolidated Balance Sheet. In connection with the sale, Cleco entered into an other services agreement and a transition services agreement to provide certain services to the Cleco Cajun Purchasers for up to twelve months. As of December 31, 2024, the transition services agreement has been terminated.
In February 2019 in connection with the approval of the Cleco Cajun Acquisition, Cleco made commitments to the LPSC that included the repayment of $400.0 million of Cleco Holdings’ debt by December 31, 2024. On April 26, 2024, the remaining $66.7 million of that debt was paid and this LPSC commitment was satisfied. Interest expense on that debt is included in discontinued operations.
Cleco determined that the estimated fair value less the estimated cost to sell the Cleco Cajun Sale Group was less than the carrying value of the Cleco Cajun Sale Group. As a result, the Cleco Cajun Sale Group had an impairment of $173.0 million at December 31, 2023. During the three months
ended March 31, 2024, an additional impairment charge of $17.0 million was recorded. On June 1, 2024, the Cleco Cajun Divestiture closed, and an incremental $27.1 million loss on the sale of the Cleco Cajun Sale Group was recorded. This resulted in a cumulative loss related to the Cleco Cajun Divestiture of $217.1 million. The incremental loss on the sale of the Cleco Cajun Sale Group recognized during the three months ended June 30, 2024, was the difference between the fair value of the proceeds received and the derecognized net assets of the Cleco Cajun Sale Group on the closing date. During the three months ended September 30, 2024, the working capital adjustments related to the Cleco Cajun Divestiture were finalized and resulted in a $0.4 million decrease to the loss on the Cleco Cajun Divestiture that was previously recorded.
The following table presents the amounts that have been reclassified from continuing operations and included in discontinued operations within Cleco’s Consolidated Statements of Income for the years ended December 31, 2024, 2023, and 2022:

FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)202420232022
Operating revenue, net
Electric operations$207,555 $543,519 $496,042 
Other operations50,992 125,816 148,823 
Operating revenue, net258,547 669,335 644,865 
Operating expenses
Fuel used for electric generation21,061 126,130 169,195 
Purchased power93,074 230,284 380,233 
Other operations and maintenance37,685 87,599 70,611 
Depreciation and amortization4,336 15,891 69,999 
Taxes other than income taxes
— 13,160 12,330 
Total operating expenses156,156 473,064 702,368 
Operating income (loss)
102,391 196,271 (57,503)
Other income, net
240 47 127 
Interest, net1,396 (6,919)(6,079)
Loss - Cleco Cajun Divestiture(1)
(43,715)(173,000)— 
Income (loss) from discontinued operations before income taxes60,312 16,399 (63,455)
Federal and state income tax expense (benefit)14,795 1,757 (19,118)
Income (loss) from discontinued operations, net of income taxes$45,517 $14,642 $(44,337)
(1) This represents the loss on the classification as held for sale until the closing of the Cleco Cajun Divestiture. After the closing of the Cleco Cajun Divestiture, this represents the loss on the sale of the Cleco Cajun Sale Group.
The following table presents the assets and liabilities of the Cleco Cajun Sale Group that were reclassified as held for sale within Cleco’s Consolidated Balance Sheets as of December 31, 2023:

(THOUSANDS)AT DEC. 31, 2023
Cash, cash equivalents, and restricted cash equivalents$4,100 
Accounts receivable70,001 
Fuel inventory, at average cost47,243 
Materials and supplies, at average cost36,283 
Energy risk management assets1,066 
Property, plant, and equipment, net648,676 
Prepayments18,587 
Intangible assets - other32,569 
Other assets20,207 
Accumulated loss recognized on classification as held for sale
(173,000)
Total assets held for sale - discontinued operations$705,732 
Accounts payable$30,442 
Deferred lease revenue19,945 
Intangible liabilities12,695 
Asset retirement obligations46,165 
Other liabilities5,705 
Total liabilities held for sale - discontinued operations$114,952 

Cleco has elected to present cash flows of discontinued operations combined with cash flows of continuing operations. The following table presents the cash flows from discontinued operations related to the Cleco Cajun Sale Group for the years ended December 31, 2024, 2023, and 2022:

FOR THE YEAR ENDED DEC. 31,
(THOUSANDS)202420232022
Net cash (used in) provided by operating activities - discontinued operations
$(822)$8,778 $6,878 
Net cash used in investing activities - discontinued operations$(3,278)$(8,745)$(6,867)