Centerpoint Energy, Inc (holding Co) · NYSE:CNP
Centerpoint Energy, Inc (holding Co) — Q4 2023 Earnings Presentation
22 slides from Centerpoint Energy, Inc (holding Co)'s earnings presentation, Feb 20, 2024
Slide 1: Fourth Quarter 2023 Investor Update
Establishing a path towards PREMIUM Through Sustainable Growth… FOURTH QUARTER 2023 INVESTOR UPDATE February 20, 2024
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: Our Premium Value Proposition and Continuing Track Record of Execution
OUR PREMIUM VALUE PROPOSITION AND CONTINUING TRACK RECORD OF EXECUTION Long-Term Strategic Objectives 2023 YE Updates Consistent, Targeting industry-leading non-GAAP EPS annual growth of 8% in Delivered 9% non-GAAP EPS & DPS Sustainable 2024 and at the mid-to-high end of 6-8% annually thereafter thr
Slide 4: FY 2023 v FY 2022 Non-GAAP EPS Primary Drivers
FY 2023 v FY 2022 Non-GAAP EPS (1) Primary Drivers Ongoing Cost Growth and Weather / Management & Rate Recovery Usage Interest Expense Other Electric Electric Interest Expense $0.10 Other(2) $0.04 Growth $0.03 Weather $0.27 ▲ $0.20 Rate Recovery Gas Gas O&M $0.02 Growth $0.03 Weather ▲ $0
Slide 5: Increases in Customer-Driven Investments
Increases in Customer-Driven Investments Capital 10-Year Plan (2021A – 2030E)(1) Rate Base 10-Year Ending (2030E) ~$44.5B ~$41B +~11% +~11% ($4B+) ($4B+) $40B+ $37B+ 2021 2023 2021 2023 Analyst Day Revised Plan Analyst Day Revised Plan $40B+ Rate Base by 2030E Rate Base Projection 2030E Continued bi
Slide 6: Louisiana and Mississippi Sale
Louisiana and Mississippi Sale…. Transaction Highlights Key Transaction Terms ✓ Efficiently recycle capital, upside for additional ▪ Gross Purchase Price: ~$1,200 million ✓ Supports balance sheet optimization ▪ Net Purchase Price: ~$1,000 million ✓ Signals continued demand for U.S. gas LDC’s ▪ 1.55x
Slide 7: Rate Case Snapshot
Rate Case Snapshot TX Gas MN Gas IN Electric (Docket 15513) (Docket 23-173) (Docket 45990) Date Filed October 30, 2023 ✓ November 1, 2023 ✓ December 5, 2023 ✓ Test Year End June 30, 2023 Forward test year: 2024 & 2025 Forward test year: 2025 2024: $42.1M 2024: $84.6M Revenue Request 2024: $37.4M(1)
Slide 8: Q4 2023 v Q4 2022 Non-GAAP EPS Primary Drivers
Q4 2023 v Q4 2022 Non-GAAP EPS (1) Primary Drivers Ongoing Cost Growth and Weather / Management & Rate Recovery Usage Interest Expense Other $0.06 Electric Electric Interest Expense $0.06 Other(3) $0.01 Growth $0.01 Weather $0.05(2) ▲ $0.03 Rate $0.01 Usage $0.06 Recovery Gas O&M Gas $0.0
Slide 9: Capital Expenditures by Segment
Capital Expenditures by Segment…. 10-Yr Plan(2) Current 5-Yr Plan(1) Through 2030 Continued Incremental Capital 4Q FY FY 5-YR 10-YR Opportunities 2023 2023 2024E(3) Plan Plan • Increased & accelerated (4) C&I electrification Electric ~$0.6B ~$2.7B $~2.2B $13.7B ~$29B • Accelerated EV adoption Natura
Slide 10: Continued Focus on Balance Sheet Strength
Continued Focus on Balance Sheet Strength Floating Rate Exposure FFO / Debt - Moody’s methodology(1) $5.0 Q1 2023 Q2 2023 Q3 2023 Q4 2023 $4.5B 14.2% 13.9% 14.3% 14.0% $0.1 SIGECO Target 14% - 15% FFO/Debt Thru 2030… $4.0 $1.9 Upcoming Maturities CERC 2024 2025 2026 Balance ($ in Billions) $3.0 CNP
Slide 11: Contacts
Contacts Jackie Richert Vice President Corporate Planning, Investor Relations and Treasurer Tel. (713) 207 – 9380 jackie.richert@centerpointenergy.com Ben Vallejo Director Investor Relations and Corporate Planning Tel. (713) 207 – 5461 ben.vallejo@centerpointenergy.com General Contact Tel. (713) 207
Slide 12: Appendix
e CenterPoint. Energy Appendix
Slide 13: Customer Affordability Houston Electric
Customer Affordability Houston Electric Average Monthly CEHE Charges (per 1,000 kWh) Future Expected Bill Mitigants ~$49 ~$49(1) Customer Growth 1-2% annual customer Rates growth Structural (Based Headroom on new CEHE’s 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Securitization capital O&M pla
Slide 14: Capital Plan & Regulatory Mechanisms
Capital Plan & Regulatory Mechanisms Over 80% of 10-year Capital Plan expected to be recoverable through interim Regulatory Highlights Stakeholder Benefits mechanisms Existing Mechanisms Reasonable cost recovery Traditional Rate case rate case for timely recovery of minimizes customer impact with fo
Slide 15: Weather and Throughput Data
Weather and Throughput Data Electric Natural Gas 4Q 2023 4Q 2022 2023 vs 2022 4Q 2023 4Q 2022 2023 vs 2022 Residential 61 74 (18)% Throughput Throughput Residential 4,975 6,755 (26)% (in GWh) (in Bcf) Commercial and 110 117 (5)% Industrial Total 19,068 22,529 (16)% Total 171 191 (10)% Residential 4,
Slide 16: Regulatory Schedule
Regulatory Schedule Upcoming Rate Case Activity ROE / Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Equity Ratio ’23 Rate Base(2) TX (E) GRC 9.40% / 42.5% $12.0B IN (E) GRC Phase 1 Rates 10.40% / 43.5% $2.0B TX (G) GRC 9.64% / 55.5%(1) $2.0B MN (G) GRC 9.39% / 51.0% $2.0B N. IN (G) No Rate Case Pl
Slide 17: Generation Project Timeline
Generation Project Timeline Note: Refer to slide 2 for information on forward-looking statements. 17
Slide 18: Reconciliation: Income and Diluted EPS to non-GAAP (2023)
Reconciliation: Income (Loss) and Diluted Earnings (Loss) per share to non-GAAP Income and non-GAAP Diluted EPS used in providing annual earnings guidance Quarter Ended Quarter Ended Quarter Ended Quarter Ended Year-to-Date March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 December 3
Slide 19: Reconciliation: Income and Diluted EPS to non-GAAP (2022)
Reconciliation: Income (Loss) and Diluted Earnings (Loss) per share to non-GAAP Income and non-GAAP Diluted EPS used in providing annual earnings guidance Quarter Ended Quarter Ended Quarter Ended Quarter Ended Year-to-Date March 31, 2022 June 30, 2022 September 30, 2022 December 31, 2022 December 3
Slide 20: Reconciliation: Operating Cash Flow and Debt to non-GAAP FFO
Reconciliation: Net Cash Provided by Operating Activities and Total Debt, Net to non-GAAP Funds from Operations (FFO) and non-GAAP Rating Agency Adjusted Debt Twelve month to date ended and as of period ended, respectively ($ in millions) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Net cash provided by operatin
Slide 21: Regulatory Information
Regulatory Information Information Location Electric ▪ Estimated 2022 year-end rate base by jurisdiction Regulatory Information – Electric ▪ Authorized ROE and capital structure by jurisdiction ▪ Definition of regulatory mechanisms ▪ Projected regulatory filing schedule Natural Gas ▪ Estimated 2022
Slide 22: Additional Information
Additional Information Use of Non-GAAP Financial Measures In this presentation and the oral statements made in connection herewith, CenterPoint Energy presents, based on income available to common shareholders, diluted earnings per share, and net cash provided by operating activities to total debt,
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