21 slides from Centerpoint Energy, Inc (holding Co)'s earnings presentation, Aug 5, 2016
Slide 1: Utility growth and performance remain on track
Utility growth and performance remain on track Earnings reduced by $0.17 per share associated with ZENS primarily due to the merger of Time Warner Cable and Charter Communications Company reaffirms full-year guidance of $1.12 - $1.20 per diluted share Company concludes REIT review 2nd Quarter 2016 E
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: Earnings Call Highlights
Earnings Call Highlights Second Quarter Performance Enable Midstream Highlights Full-Year Outlook Scott Prochazka – President and CEO
Slide 4: Second Quarter 2016 Performance Highlights
Second Quarter 2016 Performance Highlights (1) Refer to slide 16 for reconciliation to GAAP measures and slide 2 for information on non-GAAP measures (2) Excluding ZENS and mark-to-market adjustments Q2 2016 vs Q2 2015 Drivers (2) h Favorable Variance i Unfavorable Variance Interest Expense Rate Rel
Slide 5: Enable Midstream
Enable Midstream (1) Enable is one of the top gathering and processing companies in the country in terms of customer drilling activity, driven by a strong focus on customer service and continued infrastructure investments 29 rigs are currently contractually dedicated to Enable (2), representing appr
Slide 6: Full-Year Outlook
Full-Year Outlook Our focus remains to invest in our current utility service territories to address ongoing growth, maintenance, reliability, safety and customer service Earnings from Utility Operations are expected to represent 75% - 80% of overall earnings in 2016 We anticipate 2016 Utility Operat
Slide 7: Earnings Call Highlights: Houston Electric
Earnings Call Highlights Houston Electric Results Houston Electric Regulatory Update Tracy Bridge – EVP & President, Electric Division Construction of a new 345kV double circuit tower
Slide 8: Electric Transmission and Distribution Operating Income Drivers
(1) Houston Electric’s customer count increased from 2,322,164 as of June 30, 2015 to 2,377,352 as of June 30, 2016 (2) 2015 TDU core operating income represents total segment operating income of $158 million, excluding operating income from transition and system restoration bonds of $27 million (3)
Slide 9: Electric Transmission and Distribution Q2 2016 Regulatory Update
DCRF – Distribution Cost Recovery Factor; PUCT – Texas Public Utility Commission; TCOS – Transmission Cost of Service; EECRF – Energy Efficiency Cost Recovery Factor (1) Performance incentive approved and recognized in October 2015 was $6.6 million Mechanism Effective Date Annual DCRF Revenue Requir
Slide 10: Earnings Call Highlights: Natural Gas Distribution
2015 Minnesota Beltline Replacement Project in downtown Minneapolis Earnings Call Highlights Natural Gas Distribution Results Natural Gas Distribution Regulatory Update Energy Services Results Joe McGoldrick – EVP & President, Gas Division
Slide 11: Natural Gas Distribution Operating Income Drivers
1% YoY Customer Growth (1) $ Millions Natural Gas Distribution Operating Income Drivers: Q2 2015 vs Q2 2016 (2) (1) Natural Gas Distribution’s customer count increased from 3,362,044 as of June 30, 2015 to 3,397,827 as of June 30, 2016 (2) Increased miscellaneous revenues, primarily due to weather-r
Slide 12: Natural Gas Distribution Q2 2016 Regulatory Update
GRIP – Gas Reliability Infrastructure Program; RRA – Rate Regulation Adjustment; CIP – Conservation Improvement Program (1) Performance incentive approved and recognized in August 2015 was $11.6 million Jurisdictions Effective Date Annual Increase ($MM) Comments Docket # Houston South Texas Beaumont
Slide 13: Natural Gas Distribution Rate Case Updates
Jurisdiction Effective Date Rate Relief ($MM) Comments Docket # Minnesota October 2015 Interim rates effective in October 2015 (1) Rate case; interim increase of $47.8 million effective in October 2015; MPUC order issued in June 2016 includes $27.5 million rate increase based on an ROE of 9.49%; req
Slide 14: Energy Services Results
Second Quarter Operating Income Operating income was $7 million for both the second quarter 2016 and the same period last year, excluding a mark-to-market loss of $7 million and a gain of $2 million, respectively Acquisition Integration Integration efforts from recent acquisition is expected to be s
Slide 15: Earnings Call Highlights: Financial Review
Bill Rogers – EVP & CFO Earnings Call Highlights Second Quarter Earnings ZENS Guidance Parameters Financing, Interest Expense & Tax
Slide 16: Reconciliation: Net Income and Diluted EPS to Adjusted
Note: Refer to slide 2 for information on non-GAAP measures Reconciliation: Net Income and Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS Used in Providing Annual Earnings Guidance
Slide 17: ZENS and the Charter-Time Warner Cable Merger
The Charter Communications merger with Time Warner Cable (TWC) closed May 18, 2016 Upon closing of the merger, CenterPoint received $100 and 0.4891 shares of Charter Common for each share of TWC Common, cash proceeds of $178 million In accordance with the terms of ZENS, CenterPoint remitted $178 mil
Slide 18: 2016 Earnings Guidance
2016 Earnings Guidance (1) Midstream Investments $0.31 2015 Consolidated EPS: $1.10 Utility Operations 2016 Consolidated EPS: $1.12 - $1.20 2015 2016 2017 2018 $0.79 $0.88 to $0.92 $0.24 to $0.28 4-6% YoY EPS Growth Earnings from Utility Operations were ~70% of overall earnings in 2015 and are expec
Slide 19: Financing, Interest Expense and Tax
Liquidity and Capital Resources Anticipate strong balance sheet and cash flow Project total capital investment of ~$1.4 billion for 2016 Net incremental borrowings of ~$200 million for 2016, inclusive of funding for the acquisition of the retail energy services business and natural gas wholesale ass
Slide 20: Appendix
Appendix
Slide 21: Reconciliation: Net Income and Diluted EPS to Adjusted
Note: Refer to slide 2 for information on non-GAAP measures Reconciliation: Net Income and Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS Used in Providing Annual Earnings Guidance