Centerpoint Energy, Inc (holding Co) · NYSE:CNP
Centerpoint Energy, Inc (holding Co) — Q1 2015 Earnings Presentation
16 slides from Centerpoint Energy, Inc (holding Co)'s earnings presentation, May 11, 2015
Slide 1: First Quarter 2015 Earnings Call
Exhibit 99.2 First Quarter 2015 Earnings Call • Strong Customer Growth • Key Regulatory Filings • Guidance Reaffirmed th May 11 , 2015
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains statements concerning our expectations, beliefs, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are not historical facts. These statements are “forward-looking statements” within
Slide 3: Earnings Call Discussion Highlights
ScottProchazka – PresidentandCEO Earnings Call Discussion Highlights First Quarter Results Utility Earnings Enable Midstream Houston Economy investors.centerpointenergy.com 3
Slide 4: First Quarter 2015 Highlights
First Quarter 2015 Highlights GAAP EPS $0.43 $0.30 $0.13 $0.08 $0.30 $0.22 2015 2014 EPS on a Guidance Basis Q1 2015 vs Q1 2014 Drivers (EPS on a Guidance Basis) $0.40 $0.30 $0.13 Rate Relief Weather Impact $0.08 $0.22 $0.27 Customer Growth Interest Expense Enable Equity Return 2015 2014 related to
Slide 5: Electric Division Earnings Call Discussion Highlights
Tracy BridgeEVP – & President, Electric Division Earnings Call Discussion Highlights Electric Results Customer Growth Brazos Valley Connection Regulatory Update Intelligent Grid Construction of high voltage transmission infrastructure investors.centerpointenergy.com 5
Slide 6: Houston Electric: Residential Electric Customers and Houston Employment vs WTI
Houston Electric: Residential Electric Customers and Houston Employment vs West Texas Intermediate (WTI) 3,000,000 $140 $130 $120 2,500,000 $110 $100 2,000,000 $90 $80 $70 1,500,000 $60 $50 $40 1,000,000 $30 $20 500,000 $10 1 Residential Customers Employment2 3 WTI-Real Dollars (2010=100) Houston El
Slide 7: Houston Electric: Brazos Valley Connection
Houston Electric: Brazos Valley Connection Project Cost Estimate:$276 to $383 million, depending on route selection and other variables PUC Docket #: 44547 Project Timeline: Action Estimated Timeframe CCN Filed April 24, 2015 PUC Proceeding Second/Third Quarters 2015 PUC Decision Fourth Quarter 2015
Slide 8: Houston Electric: Distribution Cost Recovery Factor (DCRF)
Houston Electric: Distribution Cost Recovery Factor (DCRF) DCRF Equation (how it works) Revenue requirement associated with eligible DCRF Revenue Requirement distribution capital since last rate case Revenue adjustment associated with growth in Growth Adjustment customer count and usage since last r
Slide 9: Houston Electric: Realization of Intelligent Grid Benefits
Houston Electric: Realization of Intelligent Grid Benefits Customer Satisfaction, Cost Control and Carbon Reduction Absence of generation assets significantly reduces CenterPoint’s carbon footprint compared to integrated utilities One of the first large scale Smart Meter deployments in the U.S. Elim
Slide 10: Gas Division Earnings Call Discussion Highlights
Joe McGoldrickEVP – & President, Gas Division Earnings Call Discussion Highlights Gas Operations Results Weather Impacts Regulatory Update Energy Services Results Using horizontal directional drilling to construct and install a new pipeline under the bed of the Arkansas River investors.centerpointen
Slide 11: Natural Gas Utilities: Regulatory Updates
Natural Gas Utilities: Regulatory Updates Filings YTD Expected Requested Jurisdiction Mechanism – Comments Effective DateIncrease $- MM Oklahoma –PBRC 3Q 2015 $0.9 Mississippi –RRA 3Q 2015 $2.5 South Texas –GRIP 3Q 2015 $4.2 Beaumont/East TX GRIP – 3Q 2015 $5.9 Included a rate base of $132.3 TX Coas
Slide 12: Natural Gas Utilities: Arkansas Formula Rate Plan
Natural Gas Utilities: Arkansas Formula Rate Plan Arkansas Act 725 Highlights • The utility may elect to: • Have rates regulated under an annual formula rate review mechanism • Utilize a forward test year • Rates adjusted annually to restore revenues to the target ROE when earned ROE is above or bel
Slide 13: CFO Earnings Call Discussion Highlights
Bill RogersEVP – & CFO Earnings Call Discussion Highlights Quarterly Drivers Strong Cash Flow Financing Plan Guidance Reaffirmed Dividend Declaration investors.centerpointenergy.com 13
Slide 14: Q1 EPS Normalization GAAP to Guidance Basis to Baseline
Q1 EPS Normalization GAAP to Guidance Basis to Baseline Quarter Ended Quarter Ended March 31, 2015 March 31, 2014 Net Income ($MM) EPS Net Income ($MM) EPS Consolidated as reported $ 131 $ 0.30 $ 185 $ 0.43 Midstream Investments as reported (33) $ (0.08) (57) $ (0.13) (1) Utility Operations as repor
Slide 15: 2014 Q1 Baseline EPS to 2015 Q1 EPS on a Guidance Basis
2014 Q1 Baseline EPS to 2015 Q1 EPS on a Guidance Basis Quarter Ended Quarter Ended March 31, 2015 March 31, 2014 Net Income ($MM) EPS Net Income ($MM) EPS Consolidated as reported $ 131 $ 0.30 $ 185 $ 0.43 Midstream Investments as reported (33) $ (0.08) (57) $ (0.13) (1) Utility Operations as repor
Slide 16: Reconciliation: Net Income and diluted EPS to Guidance Basis
Reconciliation: Net Income and diluted EPS to the Basis Used in Providing Annual Earnings Guidance Quarter Ended Quarter Ended March 31, 2015 March 31, 2014 Net Income ($MM) EPS Net Income ($MM) EPS Consolidated as reported $ 131 $ 0.30 $ 185 $ 0.43 Midstream Investments as reported (33) $ (0.08) (5