Centerpoint Energy, Inc (holding Co) · NYSE:CNP
Centerpoint Energy, Inc (holding Co) — Investor Presentation (October 2018)
18 slides from Centerpoint Energy, Inc (holding Co)'s investor presentation, Oct 2, 2018
Slide 1: CenterPoint Energy Investor Update
CENTERPOINT ENERGY Investor Update October 2, 2018 Exhibit 99.1
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 net income and diluted earnings per share, the Company also provides guidance based on adjusted ne
Slide 4: CenterPoint Energy Vision and Strategy
CenterPoint Energy Vision and Strategy Our Vision: Lead the nation in delivering energy, service and value Our Strategy: Operate, Serve, Grow Ensure safe, reliable, efficient and environmentally responsible energy delivery businesses Utilize new and innovative technology to enhance performance Add v
Slide 5: CenterPoint Energy – Vectren Strategic Rationale
CenterPoint Energy – Vectren Strategic Rationale Growth More rate-regulated investment More customers for existing products and services Additional products and services for existing customers Complementary Capabilities Combining CenterPoint Energy’s and Vectren’s utilities positions the Company as
Slide 6: Recent Offerings
Recent Offerings Series A Preferred Stock Common Stock Mandatory Convertible Preferred Stock Pricing Date (2018) Aug 15th Sept 25th Sept 25th Amount Issued ($ in millions) $800 $1,898(1) $978(1) Equity Credit 50% 100% 100% Dividend 6.125% $1.11(2) 7% Conversion Premium n/a n/a 20% These offerings co
Slide 7: Anticipated Sources and Uses
CenterPoint Energy Anticipated Sources and Uses(1) Sources of Funds Uses of Funds Assumption of Vectren debt(2) $2,500 Assumption of Vectren debt(2) $2,500 Series A Preferred Stock 800 Acquisition of Vectren common shares outstanding 5,982 Series B Preferred Stock(3) 978 Common Stock(3) 1,897 Debt(4
Slide 8: Combined 2020 EPS Potential
Combined 2020 EPS Potential (in millions, except per share amounts) 2020 CenterPoint Net Income Forecast (High-end of $1.50 - $1.60 2018 guidance basis EPS range assuming 5 - 7% growth in 2019 and 2020)(1) $764 - $794 Vectren Net Income Forecast (Midpoint of $2.80 - $2.90 2018 guidance basis EPS ran
Slide 9: CenterPoint Energy – Vectren Merger Details and Timeline
CenterPoint Energy – Vectren Merger Details and Timeline CenterPoint Energy and Vectren: $28 billion total enterprise value(1) Cash consideration of $72 per share, plus assumed debt Approximately 83.1 million Vectren shares outstanding Nearly $29 billion in combined assets and more than 7 million to
Slide 10: Combined Company Rate Base Growth
Note: CenterPoint rate base numbers are based upon the capital plan included in the 2017 Form 10-K; Vectren rate base numbers as provided on slide 15 of Vectren’s Q2 2018 Financial Review published on August 2, 2018 (1) The projected year-end rate base is subject to change depending on actual capita
Slide 11: CenterPoint Energy – Vectren Combined Business Profile
CenterPoint Energy – Vectren Combined Business Profile Combined 2017 Operating Income and Equity Earnings(1) 5% (Other) Post-merger Increased percentage of utility earnings provides greater confidence in long-term earnings Vectren infrastructure services (part of Vectren “Other”) driven primarily by
Slide 12: Demonstrated Commitment to Solid Investment Grade Credit
CenterPoint Energy has Demonstrated Commitment to Solid Investment Grade Credit Current Ratings and Outlook Moody’s S&P Fitch Company/Instrument Rating Outlook (1) Rating CreditWatch (2) Rating Outlook (3) CenterPoint Energy Senior Unsecured Debt Baa1 Negative BBB+ Negative BBB Stable Houston Electr
Slide 13: CERC Reorganization Activities
CERC Reorganization Activities Internal Spin of Midstream Investment out of CERC Objectives Move CERC toward a pure natural gas LDC company; providing better visibility of earnings and simplifying structure CERC’s pro-forma capital structure would reflect the weighted average capital structure used
Slide 14: Summary
Summary CenterPoint Energy’s pending merger with Vectren advances its vision to lead the nation in delivering energy, service and value Expect higher percentage of regulated utility earnings with 7.6% compound annual rate base growth assuming current capital plans Increased geographic and business-l
Slide 15: Appendix
A p pend ix :
Slide 16: Post-Merger CenterPoint Energy at a Glance
Post-Merger CenterPoint Energy at a Glance(1) 7+ Million Customers (1) Operational data based on information as of December 31, 2017 (2) Does not include approximately 72,000 natural gas customers as of December 31, 2017 that are under residential and small commercial choice programs invoiced by the
Slide 17: Consolidated Adjusted Diluted EPS Drivers
(1) Excluding $34 million of pre-tax costs ($27 million of operating income and $7 million of interest) associated with the pending merger with Vectren; Utility Operations EPS includes all earnings except those related to Midstream Investments (Utility Operations EPS includes the Enable Series A Pre
Slide 18: Reconciliation: Net Income and Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS
Reconciliation: Net Income and Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS Used in Providing Annual Earnings Guidance
Centerpoint Energy — Investor Presentation (October 2018) on 6ix