Centerpoint Energy, Inc (holding Co) · NYSE:CNP
Centerpoint Energy, Inc (holding Co) — FY2024 Earnings Presentation
25 slides from Centerpoint Energy, Inc (holding Co)'s earnings presentation, Feb 20, 2025
Slide 1: Fourth Quarter & FY 2024 Investor Update
FOURTH QUARTER & FY 2024 INVESTOR UPDATE
Slide 2: Forward-looking statements
2 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 fact included in thi
Slide 3: Q4 and FY 2024 Update
3 Consistent, Sustainable Growth for Our Investors Positively Impacting our Communities Resilient, Reliable, & Affordable Energy for Customers Targeting industry-leading non-GAAP EPS annual growth of 8% in 2024 and dividend per share growth in line with non-GAAP EPS earnings of $1.61 - $1.63 Long-Te
Slide 4: FY 2024 vs FY 2023 Non-GAAP EPS Primary Drivers
4 FY 2023 Non-GAAP EPS FY 2024 Non-GAAP EPS $0.50 Growth and Rate Recovery Ongoing Cost Management & Interest ExpenseWeather / Usage Other $1.50 $0.34 ($0.14) $1.62 ($0.05) Electric $0.04 Growth $0.25 Rate Recovery $0.08 Depreciation & Other Taxes Gas $0.14 Rate Recovery $0.01 Depreciation
Slide 5: Rate case summary
5 OH Gas (Docket 24-0832-GA-AIR ) MN Gas (Docket 23-173) Houston Electric (Docket 56211) IN Electric (Docket 45990) 10/29/2024 All-Party Settlement Key Details Below Unopposed Settlement Key Details Below Final Order Issued Key Details Below Date Filed Forward test year: 2024Test Year End $99.5MM202
Slide 6: System Resiliency Plan
Strengthening overall resiliency by 30% Expected reductions in outages by 1.3B minutes into 2029 Expected savings of ~$50MM per year in storm-related costs Expected avoidance of 500K+ outages during a Beryl-like storm ~$5.5B(1) Resiliency Capital Investments of From 2026 through 2028 6 Syste
Slide 7: Diverse Electric Load Growth Drivers
~61GW Logistics & Transport • Large and medium duty vehicle fleet conversion • Port of Houston Electrification Commercial • Continued expansion of Texas Medical Center • Data Centers Current Peak Load ~21GW 2024 2031E ~31GW Energy Refining and Energy Exports • Continued expansion and electrification
Slide 8: Q4 2024 vs Q4 2023 Non-GAAP EPS Primary Drivers
8 Q4 2023 Non-GAAP EPS Q4 2024 Non-GAAP EPS $0.50 Growth and Rate Recovery Ongoing Cost Management & Interest ExpenseWeather / Usage Other $0.32 $0.05 $0.02 $0.02 $0.40 Electric $0.01 Growth $0.05 Rate Recovery $0.04 Depreciation & Other Taxes Gas $0.03 Rate Recovery Interest Expense $0.03(
Slide 9: Capital Expenditures Plan
9 ‘21 – ‘30‘21 – ‘25FYFY4Q PlanPlan2025E(3)20242024 ~$32.0B~$13.7B~$3.3B~$2.2B~$0.7BElectric(2) ~$15.3B~$7.5B~$1.5B~$1.5B~$0.4BNatural Gas ~$0.2B~$0.1B~$31MM~$36MM~$25MMCorporate and Other ~$47.5B~$21.3B~$4.8B~$3.8B~$1.2BTotal Capital(4) Expenditures Current 5-Yr Plan(1) 10-YR Plan Continued Increme
Slide 10: Temporary Generation Solution
~$475MM $110MM Foregone Storm Recovery Benefit(2) $250MM Rate Case Revenue Reduction Benefit (3) Value of Donation to ERCOT(4) $180MM ~$200MM - ~$400MM Potential Marketed Sublease Revenue(5) Making Customers Whole… …and Preserving Value for Investors 10 Temporary Generation Solution A unique Texas s
Slide 11: Credit ratings, FFO to Debt and Maturities
11 Fitch (Neg) S&P (Neg) Moody’s (Neg)Entity BBBBBBBaa2CenterPoint Energy, Inc. AAA2Houston Electric A-BBB+A3CERC -AA1SIGECO Company Debt Ratings(3) Consolidated FFO To Debt(1)(2) 2024 Full Year2023 Full year 9.7%18.5%Moody’s 13.6%14.0%Adjusted for 1-time items – Moody’s methodology(2) 12.0%11.2%S&P
Slide 12: Contacts
12 Contacts Jackie Richert Senior Vice President Corporate Planning, Investor Relations and Treasury 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.
Slide 13: Appendix
e CenterPoint. Energy Appendix
Slide 14: Regulatory Schedule
14 DecNovOctSepAugJulJunMayAprMarFebJan TX (E) IN (E) TX (G) MN (G) N. IN (G) OH (G) S. IN (G) ’25 Rate Base(4)ROE / Equity Ratio $15.4B9.65% / 43.25%(1) $2.6B9.8% / 48.3%(2) $3.1B9.8% / 60.6% $2.4BN/A / N/A(3) $2.3B9.80% / 46.8%(2) $1.5BN/A / 51.1% $0.7B9.70% / 46.2%(2) $28.0BTotal = Upcoming Regul
Slide 15: Regulatory Highlights and Stakeholder Benefits
15 Stakeholder BenefitsRegulatory Highlights Reasonable cost recovery minimizes customer impact and earnings volatility Existing Mechanisms for timely recovery of major storm costs Reasonable cost recovery minimizes customer impact and earnings volatility Winter storm gas cost almost fully recovered
Slide 16: Electric and Natural Gas operating statistics
16 aaaaaaaaa Electric Natural Gas 2024 vs 20234Q 20234Q 2024 10%6,3126,971Residential Th ro ug hp ut (in G W h) 9%23,97226,101Total 2%2,588,5102,640,150Residential M et er ed C us to m er s (1 ) 2%2,916,028 2,971,730Total 76%363637Cooling Degree Days W ea th er v s N or m al (2 ) (39%)451273Heating
Slide 17: Efficient Recycling of Capital: Gas LDC sale
17 Targeting Our 4th Efficient Recycling of Capital over the last 3 years Transaction Highlights Announced Feb 2024 Efficiently recycle capital, upside for additional CapEx Supports balance sheet optimization Signals continued demand for U.S. gas LDC’s Aligns with the continued execution o
Slide 18: GHRI Phase I Key Resiliency Actions
18 CompleteTargetQUICK ACTION TO REDUCE OUTAGES 2,026 POWER LINE MILES 2,000 POWER LINE MILES Trimmed or removed higher-risk vegetation 1,133 POLES 1,000 POLES Installed stronger and more storm-resilient poles 307 DEVICES 300 DEVICES Installed automated devices, known as trip savers GHRI Phase I(1)
Slide 19: Expected Generation Project Timeline
19 (1) (1) 1) Updated based on most recent information available Note: Refer to slide 2 for information on forward-looking statements and slide 25 for our Net Zero Disclaimer. Expected Generation Project Timeline(1)
Slide 20: 2024 Non-GAAP EPS Reconciliation
20 aaaaaaaaa Year-to-DateQuarter EndedQuarter EndedQuarter EndedQuarter Ended December 31, 2024December 31, 2024September 30, 2024June 30, 2024March 31, 2024 Diluted EPS(1) Dollars in millions Diluted EPS(1) Dollars in millions Diluted EPS(1) Dollars in millions Diluted EPS(1) Dollars in millions Di
Slide 21: 2023 Non-GAAP EPS Reconciliation
21 aaaaaaaaa Year-to-DateQuarter EndedQuarter EndedQuarter EndedQuarter Ended December 31, 2023December 31, 2023September 30, 2023June 30, 2023March 31, 2023 Diluted EPS(1) Dollars in millions Diluted EPS(1) Dollars in millions Diluted EPS(1) Dollars in millions Diluted EPS(1) Dollars in millions Di
Slide 22: Moody's FFO/Debt Reconciliation
22 aaaaaaaaa YE 2024YE 2023Twelve month to date ended and as of period ended, respectively ($ in millions) $2,139$3,877Net cash provided by operating activities (A) Add back: 84(423)Accounts receivable and unbilled revenues, net (42)(167)Inventory 2774Taxes receivable (210)302Accounts payable (15)(1
Slide 23: S&P FFO/Debt Reconciliation
23 YE 2024YE 2023Twelve month to date ended and as of period ended, respectively ($ in millions) Unadjusted EBITDA 6,9256,536Gross Margin (2,949)(2,850)O&M (547)(525)Taxes and Other 3,4293,161Unadjusted EBITDA 805664Less: Cash interest paid (9)215Less: Cash taxes paid (161)(179)Plus: Rating agency a
Slide 24: Regulatory Information
24 aaaaaaaaa LocationInformation Regulatory Information – Electric Electric Estimated 2023 year-end rate base by jurisdiction Authorized ROE and capital structure by jurisdiction Definition of regulatory mechanisms Projected regulatory filing schedule Regulatory Information – Gas Natural Gas
Slide 25: Use of Non-GAAP Financial Measures
25 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, net, and gross margi