Centerpoint Energy, Inc (holding Co) · NYSE:CNP
Centerpoint Energy, Inc (holding Co) — Q1 2019 Earnings Presentation
23 slides from Centerpoint Energy, Inc (holding Co)'s earnings presentation, May 9, 2019
Slide 1: 1st quarter 2019 earnings call
1st quarter 2019 earnings call May 9, 2019 Exhibit 99.2
Slide 2: Cautionary statement
Cautionary statement 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 statements of historical f
Slide 3: Additional information: Use of Non-GAAP Financial Measures
Additional information Use of Non-GAAP Financial Measures In addition to presenting its financial results in accordance with generally accepted accounting principles (“GAAP”), including presentation of income available to common shareholders and diluted earnings per share, the Company also provides
Slide 4: Agenda
Scott Prochazka President and CEO First Quarter Results Business Segment Highlights Houston Electric – T&D Indiana Electric – Integrated Natural Gas Distribution Energy Services Infrastructure Services Midstream Investments Guidance Basis EPS Outlook Xia Liu Chief Financial Officer Business Segment
Slide 5: First quarter 2019 performance
First quarter 2019 performance (1) Refer to slide 21 for reconciliation to GAAP measures and slide 3 for information on non-GAAP measures (2) Excluding ZENS, CES mark-to-market adjustments and certain impacts associated with the Vectren merger (the merger) (3) Primarily due to the annual true-up of
Slide 6: Houston Electric – T&D Highlights
Houston Electric – T&D Highlights Houston Electric – T&D core operating income, excluding merger-related expenses, was $84 million(1) in Q1 2019 compared with core operating income of $99 million(2) in Q1 2018, in line with expectations Nearly 41,000 Houston Electric customers added year-over-year R
Slide 7: Indiana Electric – Integrated Highlights and generation transition plan
Indiana Electric – Integrated Highlights and generation transition Plan Operating income of $11 million(1) for Q1 2019, excluding $20 million of merger-related expenses, in line with expectations Recently, the Indiana Utility Regulatory Commission (IURC) approved portions of the 2016 generation tran
Slide 8: Natural Gas Distribution Highlights
Natural Gas Distribution Highlights Operating income of $220 million(1) in Q1 2019, including $46 million(2) from the addition of new jurisdictions and excluding $53 million(3) of merger-related expenses, was in line with expectations. Q1 2018 operating income was $156 million Added more than 45,000
Slide 9: Energy Services and Infrastructure Services highlights
Energy Services and Infrastructure services highlights Energy Services Operating income was $14 million in Q1 2019 compared to $54 million in Q1 2018, excluding a mark-to-market gain of $19 million and loss of $80 million, respectively(1) Anticipate performance for remainder of 2019 will provide for
Slide 10: Midstream Investments highlights
Midstream Investments highlights Higher natural gas gathered, natural gas processed, crude oil and condensate gathered and natural gas transported volumes compared to the first quarter of 2018 Rig activity remains strong around Enable’s gathering footprint with 52 rigs currently drilling wells expec
Slide 11: Guidance Basis EPS Outlook
Guidance Basis EPS Outlook(1) Utility growth Houston Electric – T&D rate case conclusion will allow for recovery on capital invested Natural Gas Distribution – interim rates will go into effect post filing of Minnesota general rate case application Realized merger cost savings A full year of contrib
Slide 12: Agenda
Scott Prochazka President and CEO First Quarter Results Business Segment Highlights Houston Electric – T&D Indiana Electric – Integrated Natural Gas Distribution Energy Services Infrastructure Services Midstream Investments Guidance Basis EPS Outlook Xia Liu Chief Financial Officer Business Segment
Slide 13: Houston Electric – T&D: Core Operating Income Drivers
Houston Electric – T&D: Core Operating Income Drivers Q1 2018 v. Q1 2019 (1) Houston Electric – T&D Core Operating Income excludes $16 million from transition and system restoration bonds (2) Includes rate changes, exclusive of the TCJA impact (3) Includes lower usage of $15 million, primarily Janua
Slide 14: Operating Income Drivers Q1 2018 v. Q1 2019
Natural Gas Distribution: Operating Income Drivers Q1 2018 v. q1 2019 (1) Includes rate increases, exclusive of the TCJA impact (2) Decoupling normalization timing benefit of $15 million partially offset by increased operation and maintenance expenses of $8 million (3) Represents February 1, 2019 th
Slide 15: Consolidated adjusted diluted EPS drivers Q1 2018 v. Q1 2019
Consolidated adjusted diluted eps drivers q1 2018 v. q1 2019 (Guidance basis)(1) Note: All bars exclude certain merger integration and transaction related fees and expenses as well as merger financing impacts before the completion of the merger. Legacy Vectren results represented for February 1, 201
Slide 16: Agenda
Agenda Scott Prochazka President and CEO First Quarter Results Business Segment Highlights Houston Electric – T&D Indiana Electric – Integrated Natural Gas Distribution Energy Services Infrastructure Services Midstream Investments Guidance Basis EPS Outlook Xia Liu Chief Financial Officer Business S
Slide 17: Houston Electric – T&D: Residential Customers and Weather Normalized Load
Residential Customers / Houston Employment Weather Normalized Residential GWH Usage Nearly 1 million customers added since 1990 (over 2% annualized residential customer growth) Sources: 1 Company Provided 2 Texas Workforce Commission (Houston, Sugarland, Woodlands Metro) 1 1 2 Houston Electric – T&D
Slide 18: Electric Operations Q1 2019 Regulatory Update
Electric Operations Q1 2019 Regulatory Update Mechanism Annual Increase (Decrease) (1) (in millions) Filing Date Effective Date Approval Date Additional Information CenterPoint Energy - Houston Electric (PUCT) Rate Case (1) $161.0 Apr-19 TBD TBD On April 5, 2019, Houston Electric filed its base rate
Slide 19: Q1 2019 Regulatory Update
Natural Gas Distribution Q1 2019 Regulatory Update Note: Please see slides posted under regulatory information for additional detail (http://investors.centerpointenergy.com/regulatory-information) GRIP – Gas Reliability Infrastructure Program; FRP – Formula Rate Plan; RRA – Rate Regulation Adjustmen
Slide 20: Q1 2019 Regulatory Update
Natural Gas Distribution Q1 2019 Regulatory Update Mechanism Annual Increase (Decrease) (1) (in millions) Filing Date Effective Date Approval Date Additional Information CenterPoint Energy - Indiana North - Gas (IURC) CSIA 2.8 Oct-18 Jan-19 Jan-19 Requested an increase of $54.3 million to rate base,
Slide 21: Reconciliation: Income and Diluted EPS to Adjusted (Quarterly Guidance)
Reconciliation: Income and Diluted EPS to Adjusted Income and Adjusted Diluted EPS Used in Providing quarterly Earnings Guidance
Slide 22: Reconciliation: Income and Diluted EPS to Adjusted (Annual Guidance)
Reconciliation: Income and Diluted EPS to Adjusted Income and Adjusted Diluted EPS Used in Providing annual Earnings Guidance
Slide 23: Summary of merger-related expenses first quarter 2019
Summary of merger-related expenses(1) first quarter 2019 (1) Represents certain impacts reported in operating income which are excluded from 2019 guidance basis EPS (2) Primarily consists of severance and incentive compensation costs (3) Attributable to construction backlog; reported in non-utility