Centerpoint Energy, Inc (holding Co) · NYSE:CNP

Centerpoint Energy, Inc (holding Co) — Q1 2023 Earnings Presentation

20 slides from Centerpoint Energy, Inc (holding Co)'s earnings presentation, Apr 27, 2023

  1. Slide 1: First Quarter 2023 Investor Update

    Continuing to execute on our path to PREMIUM FIRST QUARTER 2023 INVESTOR UPDATE April 27, 2023

  2. 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

  3. Slide 3: Premium Value Proposition: Tracking Delivery

    Premium Value Proposition: Tracking Delivery CNP Value Long-Term Plan Deliverables Progress Proposition 12 quarters of Delivered non-GAAP EPS(1) of $0.50 in Q1 2023 despite milder than normal weather and a higher interest rate environment  meeting/exceeding expectations Reaffirming FY 2023 guidance

  4. Slide 4: Takeaways

    Takeaways... First Quarter Results; Reaffirming 2023 Guidance Delivered non-GAAP EPS(1) of $0.50 for the first quarter; Reaffirming 2023 full-year guidance of $1.48-$1.50 non-GAAP EPS(2); Continue to target 8% non-GAAP EPS growth for 2024 and mid to high-end of 6-8% annually thereafter through 2030(

  5. Slide 5: Q1 2023 v Q1 2022 Non-GAAP EPS Primary Drivers

    Q1 2023 v Q1 2022 Non-GAAP EPS (1) Primary Drivers Growth and Rate Weather / Usage Interest O&M Savings Other Recovery Expense $0.04 $0.02 $0.09 $0.06 $0.02 Electric Electric Electric $0.02 Other(2) $0.01 Growth $0.02 $0.01 $0.01 Tax $0.05 Rate Gas Gas $0.01 AR-OK $0.47 recovery $0.02 $0.01

  6. Slide 6: Capital Expenditures by Segment

    Capital Expenditures by Segment…. 10-Yr Plan(2) Current 5-Yr Plan(1) Through 2030 Potential Incremental Capital FY 1Q FY 5-YR 10-YR of ~$3B • Increased & accelerated 2022 2023 2023(3) Plan Plan C&I electrification (4) Electric ~$3.1B ~$0.3B ~$2.1B $12.9B $26B+ • Accelerated EV adoption • Additional

  7. Slide 7: Key Regulatory Updates

    Key Regulatory Updates…. Rate Case Update(1) Interim Regulatory Mechanism Update  Texas Gas (Cont’d)  Plan to file rate case in July  DCRF (Houston Electric)  Filed in April 2023 with ~$162MM revenue requirement, increase of $85MM over last year Interim Regulatory Mechanism Update  Recovery ant

  8. Slide 8: Contacts

    Contacts Jackie Richert Vice President Investor Relations and Treasurer Tel. (713) 207 – 9380 jackie.richert@centerpointenergy.com Ben Vallejo Director Investor Relations Tel. (713) 207 – 5461 ben.vallejo@centerpointenergy.com General Contact Tel. (713) 207 – 6500 https://investors.centerpointenergy

  9. Slide 9: Appendix

    e CenterPoint. Energy Appendix

  10. Slide 10: Reduced Floating Rate Debt

    Reduced Floating Rate Debt Floating Rate Debt Balance Reduced outstanding balance to ~16% of total debt outstanding $5.0 $4.5B $0.1B SIGECO ($1.1B) $4.0 Uri Related Proceeds Balance ($ in Billions) $1.9B CERC ($0.8B) $3.0 Other Net $2.6B Reduction $0.1B SIGECO $0.5B $2.0 CERC $2.5B CNP $2B $1.0 CNP

  11. Slide 11: 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 plan)

  12. Slide 12: Capital Plan & Regulatory Mechanisms

    Capital Plan & Regulatory Mechanisms ~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 with rate case for timely recovery of reduces customer impact and forw

  13. Slide 13: Weather and Throughput Data

    Weather and Throughput Data Electric Natural Gas 1Q 2023 1Q 2022 2023 vs 2022 1Q 2023 1Q 2022 2023 vs 2022 Residential 96 123 (22)% Residential 5,968 6,346 Throughput Throughput (6)% (in GWh) (in Bcf) Commercial and 133 137 (3)% Industrial Total 21,756 23,155 (6)% Total 229 260 (12)% Residential 3,9

  14. Slide 14: 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) 2 TCOS Filings / 1 DCRF Filing / 1 TEEEF Filing GRC 9.40% / 42.5% $12.0B IN (E) GRC 10.40% / 43.5% $2.0B TX (G)(3) GRC 9.64% / 55.5%(1) $2.0B MN (G) GRC 9.39% /

  15. Slide 15: Generation Project Timeline

    Generation Project Timeline Note: Refer to slide 2 for information on forward-looking statements. 15

  16. Slide 16: Reconciliation: Income and Diluted EPS to non-GAAP (Q1 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 March 31, 2023 Dollars in Diluted millions EPS (1) Consolidated income (loss) available to common shareholders and diluted EPS $ 31

  17. Slide 17: Reconciliation: Income and Diluted EPS to non-GAAP (Q1 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 March 31, 2022 Dollars in Diluted millions EPS (1) Consolidated income (loss) available to common shareholders and diluted EPS $ 51

  18. Slide 18: Reconciliation: Operating Cash Flow and Debt to FFO and Adjusted Debt

    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 March 31, 2023, respectively ($ in millions) Net cash provided by operating Total Debt, Net activities $

  19. Slide 19: 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

  20. Slide 20: 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 diluted earnings per share, non-GAAP income, non-GAAP earnings per share (“non-GAAP EPS”), as well as non-GAAP funds from operatio

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