Centerpoint Energy, Inc (holding Co) · NYSE:CNP
Centerpoint Energy, Inc (holding Co) — Debt Investor Presentation (October 2016)
19 slides from Centerpoint Energy, Inc (holding Co)'s debt investor presentation, Oct 18, 2016
Slide 1: Introduction to CenterPoint Energy Fixed Income Investors
Focused on Energy Delivery, Positioned to Execute Introduction to CenterPoint Energy Fixed Income Investors October 2016 A Fortune 500 company Exhibit 99.1
Slide 2: Cautionary Statement
Cautionary Statement This presentation and the oral statements made in connection herewith contain statements concerning our expectations, beliefs, plans, objectives, goals, strategies, future operations, events, financial position, earnings, growth, costs, prospects capital investments or performan
Slide 3: Agenda
Agenda Overview Review of Utilities Electric Transmission and Distribution Natural Gas Distribution CNP Credit Thesis Additional Resources Capital Expenditure Plans Energy Services Reference Materials
Slide 4: Regulated Electric and Natural Gas Utility Serving ~5.8 Million Customers
CenterPoint Energy, Inc. (NYSE: CNP) Regulated Electric and Natural Gas Utility Serving ~5.8 Million Customers Electric Transmission & Distribution: Electric utility operations with ~2.4 million metered customers across ~5,000 square miles in and around Houston, Texas 19th largest U.S. investor-owne
Slide 5: CenterPoint Energy's Value Proposition
CenterPoint Energy’s Value Proposition Expect to continue delivering long-term value… Targeting 4-6% year-over-year EPS growth through 2018 Strong credit metrics for current ratings As a result of strong fundamentals… Strong operating cash flow and balance sheet Capital investment in transmission an
Slide 6: Operating Energy Delivery Businesses that Provide Superior Performance
Operating Energy Delivery Businesses that Provide Superior Performance for our Key Stakeholders Our Vision: Lead the nation in delivering energy, service and value We are a premier U.S. energy delivery company Delivering energy is CenterPoint Energy’s core business Delivering service and value appli
Slide 7: Houston Electric – Overview
Houston Electric – Overview T&D with strong growth and limited business risk ~2.4 million metered customers; ~5,000 square miles in and around Houston, Texas Consistent residential customer growth of ~2% June 2016 average residential electric price in TX: $0.11/kwh (1) Has consistently earned at or
Slide 8: Houston Electric Residential Meter Count and Growth
Houston Electric Residential Meter Count (3) Houston Electric Growth December to December Houston Job Growth (1,2) In Thousands In Millions (1) Job growth data from the Texas Workforce Commission (2) 2016 job growth forecast from the Greater Houston Partnership (3) Meter count data from CenterPoint
Slide 9: Gas Operations – Overview
Gas Operations – Overview Natural Gas Utilities with Growing, Geographic Diversity Six state footprint with vibrant metropolitan areas of Houston and Minneapolis ~3.4 million customers ~1% annual customer growth since 2010 Named 2nd in the South Region in J.D. Power 2015 Customer Satisfaction Study
Slide 10: CenterPoint Energy Credit Thesis
CenterPoint Energy Credit Thesis Strong Credit Metrics and Conservative Balance Sheet Commitment to strong credit metrics Target 18-20% FFO/Debt Metrics strong for current credit ratings Target Baa1 (Moody’s)/A- (S&P) for CNP and CERC, A3/A- for CEHE Commitment to maintaining a strong balance sheet
Slide 11: CenterPoint Energy Credit Metrics/Ratings
CenterPoint Energy Credit Metrics/Ratings Funds from Operations (“FFO”) = net cash provided by operating activities, less transition and system restoration bond expense (amortization) of $448 million in 2014, $376 million in 2015, and $433 million for LTM Q2 2016; debt excludes transition and system
Slide 12: Liquidity and Capital Requirements
Liquidity and Capital Requirements as of June 30, 2016 Anticipate strong balance sheet and cash flow in 2016 Project total capital investment of ~$1.4 billion for 2016 Expected net incremental borrowings of ~$200 million for 2016, inclusive of funding for the acquisition of the retail energy service
Slide 13: Financing Entities and Liquidity
CenterPoint Energy Financing Entities and Liquidity CenterPoint Energy, Inc. $1.6 Billion CenterPoint Energy Houston Electric, LLC $300 Million CenterPoint Energy Resources Corp. $600 Million 64% of total capacity 12% of total capacity 24% of total capacity Money Pool Money Pool Total contracted liq
Slide 14: CenterPoint Energy Summary
CenterPoint Energy Summary Growing Utilities with Favorable Rate Environment Limit Business Risk Strong utility service territories 2% customer growth at CEHE and 1% customer growth at CERC over last several years Geographic, economic and seasonal diversity Constructive regulatory environment Favora
Slide 15: Additional Resources
Additional Resources
Slide 16: Electric Transmission and Distribution Capital Expenditures
2015A 2016E 2017E 2018E 2019E 2020E Transmission 38% 48% 43% 30% 32% 25% Distribution 61% 49% 52% 64% 64% 69% $ Millions Electric Transmission and Distribution Capital Expenditures
Slide 17: Natural Gas Utilities Capital Expenditures
Capital Recovery Method 2015A 2016E 2017E 2018E 2019E 2020E Annual Mechanisms 47% 39% 59% 63% 59% 63% Rate Cases 53% 61% 41% 37% 41% 37% $ Millions Natural Gas Utilities Capital Expenditures
Slide 18: Energy Services Overview
CenterPoint Energy Services Overview CES Overview Competitive natural gas supply and related energy services Non-regulated operations ~30,000 commercial and industrial customers across 26 states Low Value at Risk business model – storage and transportation capacity matched to retail customer needs C
Slide 19: Additional Reference Materials
Additional Reference Materials Category Reference Material Link Financial Information Quarterly Results http://investors.centerpointenergy.com/results.cfm Debt & Maturity Schedules Equity Return Amortization Schedules Regulatory Information State Commission Website Access Points http://investors.cen
Centerpoint Energy — Debt Investor Presentation (October 2016) on 6ix