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

Centerpoint Energy, Inc (holding Co) — Q3 2023 Earnings Presentation

22 slides from Centerpoint Energy, Inc (holding Co)'s earnings presentation, Oct 26, 2023

  1. Slide 1: Establishing a Path Towards Premium Through Sustainable Growth

    Establishing a path towards PREMIUM Through Sustainable Growth… THIRD QUARTER 2023 INVESTOR UPDATE October 26, 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 10-Year Plan Deliverables Progress Proposition 14 quarters of Delivered non-GAAP EPS(1) of $0.40 in Q3 2023 despite higher interest rate environment and continued inflationary pressures  meeting/exceeding expectations Sustainable Raising 2023 f

  4. Slide 4: Takeaways

    Takeaways... Increased 2023 Guidance and Initiated 2024 Guidance Delivered non-GAAP EPS(1) of $0.40 for Q3; Raising full-year guidance range to $1.49 - $1.51 non-GAAP EPS; Initiating 2024 guidance of $1.61 - $1.63 non-GAAP EPS(2); Reiterate mid to high-end of 6% - 8% non-GAAP EPS annual growth for 2

  5. Slide 5: 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) 2nd TCOS Filing / 2nd DCRF Filing 9.40% / 42.5% $12.0B IN (E) GRC 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)

  6. Slide 6: Key Regulatory Updates

    Key Regulatory Updates…. Rate Case Update(1) Interim Regulatory Mechanism Update (Cont’d)  Texas Gas  DCRF (Houston Electric)  Filed ~$85MM revenue requirement increase (April)  Expected to be filed by November 1st  Filed for black box settlement for a revenue requirement  Houston Electric inc

  7. Slide 7: Q3 2023 v Q3 2022 Non-GAAP EPS Primary Drivers

    Q3 2023 v Q3 2022 Non-GAAP EPS (1) Primary Drivers Ongoing Cost Growth and Rate Management & Recovery Weather / Usage Interest Expense Other Electric Electric Interest Expense $0.01 Growth $0.04 $0.08 $0.02 Other (2) $0.07 Rate Gas recovery $0.01 O&M Gas - $0.01 Rate recovery Q3 2022 Q3 2023

  8. Slide 8: Capital Expenditures by Segment

    Capital Expenditures by Segment…. Current 5-Yr Plan(1) 10-Yr Plan(2) Through 2030 Continued Incremental FY YTD FY FY 5-YR 10-YR Capital 2022 2023E (3) 2024E Plan Plan Opportunities 2023 (4) Electric ~$3.1B ~$2.1B ~$2.5B ~$2.2B $13.7B $26.7B • Increased & accelerated C&I electrification Natural Gas ~

  9. Slide 9: Continued Focus on Balance Sheet Strength

    Continued Focus on Balance Sheet Strength Floating Rate Exposure FFO / Debt - Moody’s methodology (1) Q4 2022 Q1 2023 Q2 2023 Q3 2023 $5.0 Balance ($ in Billions) 15.4% 14.2% 13.9% 14.3% $4.5B Target 14% - 15% FFO/Debt Thru 2030… $0.1B SIGECO $4.0 Upcoming Maturities $1.9B 2024 2025 2026 CERC $3.0 C

  10. Slide 10: 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

  11. Slide 11: Appendix

    e CenterPoint. Energy Appendix

  12. Slide 12: 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

  13. Slide 13: Capital Plan & Regulatory Mechanisms

    Capital Plan & Regulatory Mechanisms Greater Than 80% of 10-year Capital plan expected to be recoverable through interim Regulatory Highlights Stakeholder Benefits mechanisms Traditional Existing Mechanisms Reasonable cost recovery Rate case rate case for timely recovery of minimizes customer impact

  14. Slide 14: Weather and Throughput Data

    Weather and Throughput Data Electric Natural Gas 3Q 2023 3Q 2022 2023 vs 2022 3Q 2023 3Q 2022 2023 vs 2022 Residential 14 15 (7)% Residential 13,851 11,970 Throughput Throughput 16% (in GWh) (in Bcf) Commercial and 84 81 4% Industrial Total 35,029 30,330 15% Total 98 96 2% Residential 3,967,080 3,92

  15. Slide 15: Generation Project Timeline

    Generation Project Timeline The above highlighted projects are now expected to be placed in service in 2026 which we previously anticipated to go into service in 2025. Note: Refer to slide 2 for information on forward-looking statements. 15

  16. Slide 16: Reconciliation of Income and Diluted EPS to Non-GAAP: Q3 2023

    Reconciliation of Consolidated income available to common shareholders and diluted earnings per share (GAAP) to non-GAAP income and non-GAAP diluted earnings per share Quarter Ended September 30, 2023 Dollars in Diluted millions EPS (1) Consolidated income available to common shareholders and dilute

  17. Slide 17: Reconciliation of Income and Diluted EPS to Non-GAAP: YTD 2023

    Reconciliation of Consolidated income available to common shareholders and diluted earnings per share (GAAP) to non-GAAP income and non-GAAP diluted earnings per share Year-to-Date Ended September 30, 2023 Dollars in Diluted millions EPS (1) Consolidated income available to common shareholders and d

  18. Slide 18: Reconciliation of Income and Diluted EPS to Non-GAAP: Q3 2022

    Reconciliation of Consolidated income available to common shareholders and diluted earnings per share (GAAP) to non-GAAP income and non-GAAP diluted earnings per share Quarter Ended September 30, 2022 Dollars in Diluted millions EPS (1) Consolidated income available to common shareholders and dilute

  19. Slide 19: Reconciliation of Income and Diluted EPS to Non-GAAP: YTD 2022

    Reconciliation of Consolidated income available to common shareholders and diluted earnings per share (GAAP) to non-GAAP income and non-GAAP diluted earnings per share Year-to-Date Ended September 30, 2022 Dollars in Diluted millions EPS (1) Consolidated income available to common shareholders and d

  20. Slide 20: 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 period ended, respectively ($ in millions) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Net cash provided by operatin

  21. 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

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

CenterPoint Energy, Inc (Holding Co) — Q3 2023 Earnings Presentation on 6ix