Centerpoint Energy, Inc (holding Co) · NYSE:CNP
Centerpoint Energy, Inc (holding Co) — Q3 2022 Earnings Presentation
26 slides from Centerpoint Energy, Inc (holding Co)'s earnings presentation, Nov 1, 2022
Slide 1: Third Quarter 2022 Investor Update
Establishing a path towards PREMIUM T h r o u g h S u s t a i n a b l e G r o w t h … THIRD QUARTER 2022 INVESTOR UPDATE November 1, 2022
Slide 2: Cautionary Statement and Other Disclaimers
Cautionary Statement and Other Disclaimers This presentation and the oral statements made in connection herewith contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than stat
Slide 3: Premium Value Proposition: Tracking Delivery
Note: Refer to slide 2 for information on forward-looking statements and slide 26 for information on non-GAAP EPS assumptions and non-GAAP measures. (1) Refers to non-GAAP EPS annual growth rate for 2022A – 2030E (2) Refers to 10-year capital plan from 2021A-2030E (3) Based on current 10-year capita
Slide 4: Focused on a Strong Balance Sheet
Focused on a Strong Balance Sheet Reduced parent debt by 9 percentage points since the beginning of year and floating rate debt by 35% since the beginning of the year Not Reliant on ‘Big Bets’ Approximately 80% of the nearly $43B capital plan through 2030 expected to be recovered through regulatory
Slide 5: Q3 2022 vs Q3 2021 Non-GAAP EPS Primary Drivers
Utility $0.25 Consolidated $0.32 $0.05 $0.02 $0.02 $0.01 $0.01 Midstream (2) $0.08 Q3 2022 v Q3 2021 Non-GAAP EPS(1) Primary Drivers Note: Refer to slide 2 for information on forward-looking statements and slide 26 for information on non-GAAP Utility EPS and non-GAAP EPS assumptions and non-GAAP mea
Slide 6: Capital Expenditures by Segment
Capital Expenditures by Segment…. FY 1H 3Q FY 5-YR 10-YR 2021 2022 2022 2022 (3) Plan Plan Electric (4) ~$2.2B ~$1.3B ~$0.7B ~$2.9B $12.5B $26B+ Natural Gas ~$1.4B ~$0.7B ~$0.5B ~$1.7B $7.7B $17B+ Corporate and Other ~$40MM ~$3MM ~$24MM ~$40MM $0.1B $0.2B Total Capital Expenditures(4) ~$3.6B ~$2.0B
Slide 7: Increasing Capital Opportunities
Increasing Capital Opportunities Responding to Customer-Driven Capital… …. Increasing investments for the benefit of our customers and investors ~$2.3B Resiliency & Grid Modernization $1.6B - $1.8B • Strategic Undergrounding • Pole infrastructure • Substation Flood Mitigation • “Smart Grid” Technolo
Slide 8: Sustainable Rate Base Growth
Sustainable Rate Base Growth ….Adding to earnings power & dividend growth potential $11.0 $13.1 $14.1 $16.5 $17.8 $6.6 $7.5 $8.4 $9.3 $10.0 $17.6 $20.5 $22.5 $25.7 $27.8 2021A 2022E 2023E 2024E 2025E Electric Natural Gas 9.5%+ Rate Base CAGR over 10-Year Plan (1) ~$25B by 2030 ~$15B by 2030 $40B+ Ra
Slide 9: Securitization and Other Updates
Securitization and Other Updates SIGECO anticipates costs to be securitized (related to coal facility retirements) Filed securitization application for $360MM in May IURC currently reviewing, final order is anticipated in early 2023 Bonds estimated to be issued Q1 2023 Texas $1.1B to be se
Slide 10: Contacts
Contacts Jackie Richert Vice President Investor Relations and Treasurer Tel. (713) 207 – 9380 jackie.richert@centerpointenergy.com Ben Vallejo Director Investor Relations Tel. (713) 207 – 5461 ben.vallejo@centerpointenergy.com General Contact Tel. (713) 207 – 6500 https://investors.centerpointenergy
Slide 11: Appendix
e CenterPoint. Energy Appendix
Slide 12: Customer Driven Outcomes
Customer Driven Outcomes ….Improvement to an already strong growth story 550 150 More Miles ~400 Miles 4,500+ Miles New Underground Residential Distribution Lines Upgraded Distribution Lines ‘21 Analyst Day Updated 136 14 More 122 32 / 90 Substations New / Upgraded 11% 38% 650 50 More Miles ~600 Mil
Slide 13: Expected Customer Benefits Houston Electric
Expected Customer Benefits Houston Electric ….Incremental capital leading to incremental expected customer benefits Improvement Opportunities • 69kV de-energization • Transmission hardening • Transmission S90 (90-degree angle) towers replacements • Substations flood mitigation • Electromechanical re
Slide 14: Customer Affordability Houston Electric Rates
$43 $48(3) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022E Average Monthly CEHE Charges (per 1,000 kWh) Customer Affordability Houston Electric Rates (Based on new capital plan) Customer Growth Structural Headroom O&M Discipline Effective Rates Future Bill Mitigants 1-2% annual customer growth CE
Slide 15: Electric Vehicle Opportunities for Houston and CenterPoint
Electric Vehicle (EV) Opportunities for Houston and CenterPoint ….Potential additional upside to our increased capital plan 15 EV Density by Metro Area Note: Refer to slide 2 for information on forward looking statements. (1) Based on current Houston Electric’s rates and 4,000 kWh of usage per EV pe
Slide 16: Capital Plan & Regulatory Mechanisms
Capital Plan & Regulatory Mechanisms ….No big bets with limited regulatory uncertainty Note: Refer to slide 2 for information on forward-looking statements. (1) Includes capital expenditures that is expected to be recovered through interim mechanisms but requires approval of Certificate of Public Co
Slide 17: Capital By Category
Capital By Category ….Supporting sustainable non-GAAP EPS & dividend growth Note: Refer to slide 2 for information on forward-looking statements and slide 26 for information on non-GAAP EPS assumptions and non-GAAP measures. $1.5 $1.0 $0.7 $0.8 $1.0 $1.1 $1.1 $1.1 $1.0 $1.1 $1.1 $0.2 $0.1 $0.1 $0.2
Slide 18: Weather and Throughput Data
Weather and Throughput Data Note: Data as of 9/30/2022. (1) End of period number of metered customers; Natural Gas throughput in Q3 2021 excluding Arkansas and Oklahoma was 85 BCF, representing a 12% increase year over year. Natural gas metered customers in Q3 2021 excluding Arkansas and Oklahoma wa
Slide 19: Regulatory Schedule
Regulatory Schedule Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec TX (E) IN (E) TX (G) MN (G) (Rate case) N. IN (G) OH (G) S. IN (G) LA (G) MS (G) No rate case until late ’23 / early ‘24 – Two TCOS filings, DCRF filed in April No rate case until late 2023 No rate case until mid 2023 IT RT EH RB FO
Slide 20: Generation Project Timeline
Generation Project Timeline 20 Note: Refer to slide 2 for information on forward-looking statements.
Slide 21: Reconciliation: Income and Diluted EPS to non-GAAP
Reconciliation: Income (Loss) and Diluted Earnings (Loss) per share to non-GAAP Income and non-GAAP Diluted EPS used in providing annual earnings guidance (1) Quarterly diluted EPS on both a GAAP and non-GAAP basis are based on the weighted average number of shares of common stock outstanding during
Slide 22: Reconciliation: Income and Diluted EPS to non-GAAP
Reconciliation: Income (Loss) and Diluted Earnings (Loss) per share to non-GAAP Income and non-GAAP Diluted EPS used in providing annual earnings guidance (1) Quarterly diluted EPS on both a GAAP and non-GAAP basis are based on the weighted average number of shares of common stock outstanding during
Slide 23: Reconciliation: Income and Diluted EPS to non-GAAP
Reconciliation: Income (Loss) and Diluted Earnings (Loss) per share to non-GAAP Income and non-GAAP Diluted EPS used in providing annual earnings guidance (1) Quarterly diluted EPS on both a GAAP and non-GAAP basis are based on the weighted average number of shares of common stock outstanding during
Slide 24: Reconciliation: Income and Diluted EPS to non-GAAP
Reconciliation: Income (Loss) and Diluted Earnings (Loss) per share to non-GAAP Income and non-GAAP Diluted EPS used in providing annual earnings guidance (1) Quarterly diluted EPS on both a GAAP and non-GAAP basis are based on the weighted average number of shares of common stock outstanding during
Slide 25: Regulatory Information
Regulatory Information Information Location Electric Estimated 2021 year-end rate base by jurisdiction Authorized ROE and capital structure by jurisdiction Definition of regulatory mechanisms Projected regulatory filing schedule Regulatory Information – Electric Natural Gas Estimated 2021
Slide 26: Additional Information: Use of Non-GAAP Financial Measures
Additional Information 26 Use of Non-GAAP Financial Measures In this presentation and the oral statements made in connection herewith, CenterPoint Energy presents, based on diluted earnings per share, non-GAAP income, (in 2021) non-GAAP Utility earnings per share (“Utility EPS”) and (in 2022) non-GA