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

Centerpoint Energy, Inc (holding Co) — Q2 2024 Earnings Presentation

22 slides from Centerpoint Energy, Inc (holding Co)'s earnings presentation, Jul 30, 2024

  1. Slide 1: Second Quarter 2024 Investor Update

    SECOND QUARTER 2024 INVESTOR UPDATE July 30, 2024

  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: Hurricane Beryl: Storm Response and Plan of Actions

    Hurricane Beryl Summary Storm Response and Our Plan of Actions Response and Power Restoration Restored 2+ million affected customers (>90% impacted) in the first 7 days • By the numbers: 2,000 crew workers and 13,000+ mutual aid workers mobilized, 28 emergency generation locations, 22 staging sites

  4. Slide 4: Q2 2024 v Q2 2023 Non-GAAP EPS Primary Drivers

    Q2 2024 v Q2 2023 Non-GAAP EPS (1) Primary Drivers Ongoing Cost Growth and Weather / Management & Rate Recovery Usage Interest Expense Other ($0.01) $0.01 $0.06 Electric Electric Interest Expense Other (3)  $0.01 Growth  $0.01 Weather  $0.04(2) ▲ $0.01 $0.10 Rate Recovery  $0.03 Depreciation &

  5. Slide 5: Rate Case Snapshot

    Rate Case Snapshot TX Gas IN Electric MN Gas Houston Electric (Docket 15513) (Docket 45990) (Docket 23-173) (Docket 56211) Date Filed November 1, 2023 March 6, 2024 Settlement Approved Key Details Below Proposed Settlement Filed Key Details Below Forward test year: 2024 & Test Year End 2025 2023

  6. Slide 6: Capital Expenditures by Segment

    Capital Expenditures by Segment…. (2) Current 5-Yr Plan(1) 10-Yr Plan Through 2030 Continued Incremental Capital FY 1Q 2Q FY 5-YR 10-YR Opportunities 2023 2024 2024 2024E(4) Plan Plan • Increased & accelerated C&I electrification Electric(3) ~$2.7B ~$0.5B ~$0.5B ~$2.2B ~$13.7B ~$29.0B • Accelerated

  7. Slide 7: Continued Focus on Credit and Balance Sheet Strength

    Continued Focus on Credit and Balance Sheet Strength Consolidated FFO To Debt(1)(2) Company Debt Ratings(3) 2023 Full year 2Q 2024 TTM Moody’s S&P Fitch Entity Moody’s 18.5% 12.5% (Stable) (Neg) (Neg) Adjusted for 1-time items – Moody’s CenterPoint 14.0% 13.3% Baa2 BBB BBB methodology(2) Energy, Inc

  8. Slide 8: Financing Update

    Financing Update Committing to customer affordability, maintaining credit ratings while affirming guidance targets 2024 May and July 2024 Base Financing Storm Estimates Capital and Storm • $3.7B current base capital expenditures • ~$1.6B - ~$1.8B of estimated costs(1) Costs • Seeking to keep rates a

  9. Slide 9: Contacts

    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. (71

  10. Slide 10: Appendix

    e CenterPoint. Energy Appendix

  11. Slide 11: Continuing Track Record of Execution

    Continuing Track Record of Execution Long-Term Strategic Objectives Q2’24 Updates Consistent, Reaffirming non-GAAP EPS annual growth target of 8% in 2024 and Delivered $0.36 non-GAAP EPS for the Sustainable at the mid-to-high end of 6-8% annually thereafter through 2030(1); second quarter targeting

  12. Slide 12: Louisiana and Mississippi LDC Sale

    Louisiana and Mississippi LDC Sale…. Transaction Highlights Key Transaction Terms  Announced Feb 2024  Gross Purchase Price: ~$1,200MM  Efficiently recycle capital, upside for additional CapEx  Net Purchase Price: ~$1,000MM  Supports balance sheet optimization  1.55x of 2023 rate base (1)  Si

  13. Slide 13: 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

  14. Slide 14: Weather and Throughput Data

    Weather and Throughput Data Electric Natural Gas 2Q 2024 2Q 2023 2024 vs 2023 2Q 2024 2Q 2023 2024 vs 2023 Residential 18 28 (36)% Residential 9,450 9,036 Throughput Throughput 5% (in GWh) (in Bcf) Commercial and 72 91 (21)% Industrial Total 29,034 28,009 4% Total 90 119 (24)% Residential 4,022,435

  15. Slide 15: Regulatory Schedule

    Regulatory Schedule Upcoming Rate Case Activity ROE / Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Equity Ratio ’24 Rate Base(4) TX (E) GRC 9.40% / 42.5%(1) $13.9B Settlement IN (E) GRC filed May 20 Settlement Hearings 10.40% / 43.5%(2) $2.1B Settlement Settlement Approved TX (G) GRC filed April

  16. Slide 16: Expected Generation Project Timeline

    Expected Generation Project Timeline (1) (1) (1) (1) (1) (1) Note: Refer to slide 2 for information on forward-looking statements. 16 (1) Updated based on most recent information available

  17. Slide 17: Reconciliation: Income and Diluted EPS to non-GAAP, Q2 2024

    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 June 30, 2024 Dollars in Diluted millions EPS(1) Consolidated income (loss) available to common shareholders and diluted EPS $ 228

  18. Slide 18: Reconciliation: Income and Diluted EPS to non-GAAP, Q2 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 June 30, 2023 Dollars in Diluted millions EPS(1) Consolidated income (loss) available to common shareholders and diluted EPS $ 106

  19. Slide 19: Reconciliation: Operating Cash Flow and Debt to FFO (Moody's)

    Reconciliation: Net Cash Provided by Operating Activities and Total Debt, Net to non-GAAP Funds from Operations (FFO) and non-GAAP Adjusted Debt Based on Moody’s Methodology Twelve month to date ended and as of period ended, respectively ($ in millions) YE 2023 1Q 2024 2Q 2024 Net cash provided by o

  20. Slide 20: Reconciliation: Gross Margin and Debt to FFO (S&P)

    Reconciliation: Gross Margin and Total Debt, Net to non-GAAP Funds from Operations (FFO) and non-GAAP Rating Agency Adjusted Debt Based on S&P’s Methodology Twelve month to date ended and as of period ended, respectively ($ in millions) YE 2023 1Q 2024 2Q 2024 Unadjusted EBITDA Gross Margin 6,536 6,

  21. Slide 21: Regulatory Information

    Regulatory Information Information Location Electric  Estimated 2023 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 2023

  22. 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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