Centerpoint Energy, Inc (holding Co) · NYSE:CNP
Centerpoint Energy, Inc (holding Co) — Q1 2016 Earnings Presentation
21 slides from Centerpoint Energy, Inc (holding Co)'s earnings presentation, May 10, 2016
Slide 1: 1st Quarter 2016 Earnings Call
Exhibit 99.2 1st Quarter 2016 Earnings Call • Strong utility performance despite milder weather • Midstream Investments delivers earnings contributions in-line with expectations • Company reaffirms full year guidance of $1.12 to $1.20 May 10, 2016
Slide 2: Cautionary Statement
Cautionary Statement This presentation and the oral statements made in connection herewith contain statements concerning our expectations, beliefs, plans, objectives, goals, strategies, future operations, events, financial position, earnings, growth, costs, prospects capital investments or performan
Slide 3: Earnings Call Highlights
ScottProchazka – PresidentandCEO Earnings Call Highlights First Quarter Performance Highlights Full-Year Outlook Enable Midstream Highlights investors.centerpointenergy.com 3
Slide 4: First Quarter 2016 Performance Highlights
First Quarter 2016 Performance Highlights Q1 GAAP EPS $0.36 $0.30 $0.27 Q1 2016 vs Q1 2015 Drivers $0.22 (EPS on a Guidance Basis) $0.08 $0.09 Rate Relief Depreciation 2015 2016 Customer Growth O&M Expenses Midstream Weather Related Q1 EPS on a Guidance Basis Investments Usage $0.32 $0.30 Favorable
Slide 5: Full-Year Outlook
Full-Year Outlook 2016 Guidance Range vs. 2015 EPS on a Guidance Basis $1.12 -$1.20 $1.10 $0.79 $0.88 -$0.92 $0.31 $0.24 -$0.28 2015 2016 Ourfocusremainsto investin our currentutility serviceterritoriesto address ongoing growth, maintenance, reliability, safety and customer service Earningsfrom Util
Slide 6: Enable Midstream Highlights
Enable Midstream Highlights Enable Q1 2016 Performance Active Rigs Connected to Enable in SCOOP/STACK (1) 26 Announced a first quarter 2016 cash 22 24 21 distribution of $0.318 per common and 16 subordinated unit Increased first quarter 2016 per-day natural gas processed volumes by 6% compared to fi
Slide 7: Earnings Call Highlights: Houston Electric
TracyBridge– EVP& President,ElectricDivision Earnings Call Highlights Houston Electric Results Houston ElectricGrowth A Houston Electric lineman working on lines damaged by th stormsthe weekof April17 investors.centerpointenergy.com 7
Slide 8: Electric Transmission and Distribution Operating Income Drivers: Q1 2015 vs Q1 2016
Electric Transmission and Distribution Operating Income Drivers: Q1 2015 vs Q1 2016 $90 $6 $11 $80 $70 ($12) 2% YoY ($6) $60 Customer ($5) Growth(1) ($3) $50 $40 $68 $30 $59 $20 $10 $- Q1 2015 TDU Rate relief(3) Customer Depreciation Right of way O&M expense Other(4) Q1 2016 TDU Core Operating growt
Slide 9: Houston Electric Growth
Houston Electric Growth December to December Houston Job Growth (1,2) 125 75 25 -25 -75 -125 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 Houston Electric Residential Meter Count (3) In 2015, metro Houston led the nation in population gr
Slide 10: Earnings Call Highlights: Gas Division
Joe McGoldrickEVP – & President, Gas Division Earnings Call Highlights Gas Utilities Results Energy Services Results o Acquisition of Continuum Retail Energy Services 2015 Minnesota Beltline Replacement Project in downtown Minneapolis investors.centerpointenergy.com 10
Slide 11: Natural Gas Utilities Operating Income Drivers: Q1 2015 vs Q1 2016
Natural Gas Utilities Operating Income Drivers: Q1 2015 vs Q1 2016 $175 $170 $2 $21 $165 ($4) 1% YoY $160 Customer ($4) Growth(1) ($1) $155 $150 $145 $160 $140 $146 $135 $130 Q1 2015 Gas Rate relief Customer growthUsage, primarily Depreciation Other(2) Q1 2016 Gas Utility Operating weather Utility O
Slide 12: Energy Services Operating Income Drivers: Q1 2015 vs Q1 2016
Energy Services Operating Income Drivers: Q1 2015 vs Q1 2016 $30 $28 $26 $24 $22 $20 $1 $18 $16 $14 ($3) $17 $12 $15 $10 Q1 2015 Energy Services Other (2) Margin Q1 2016 Energy Services Operating Income(1) Operating Income(3,4) (1) Operating income as reported in Q1 2015 was $13 million. Chart exclu
Slide 13: CenterPoint Energy Services Acquires Continuum's Retail Energy Services Business
CenterPoint Energy Services Acquires Continuum’s Retail Energy Services Business Acquisition closed on April 1, 2016 Acquisition includes Continuum’s retail business, Choice customers, and origination & logistics assets Aggregate purchase price of $77.5 million plus working capital and customary pos
Slide 14: Earnings Call Highlights: CFO
Bill RogersEVP – & CFO Earnings Call Highlights First Quarter Earnings Guidance Parameters Financing,Interest Expense & Tax investors.centerpointenergy.com 14
Slide 15: EPS: Q1 2016 vs Q1 2015
EPS: Q1 2016 vs Q1 2015 Quarter Ended March 31, 2016 March 31, 2015 EPS EPS Consolidated as reported $ 0.36 $ 0.30 Midstream Investments (0.09) (0.08) Utility Operations(1) 0.27 0.22 Timing effects impacting (2) CES : Mark-to-market (gains) losses 0.01 0.01 ZENS-related mark-to-market (gains) losses
Slide 16: 2016 Earnings Guidance
2016 Earnings Guidance 2015 2016 2017 2018 4-6% YoY EPS Growth 4-6% YoY EPS Growth 4-6% YoY EPS Growth 2016 Consolidated 2015 Consolidated EPS: $1.12 -$1.20 EPS: $1.10 Earnings from Utility Operations were ~70% of overall earnings in 2015 and are expected to represent 75%80% - in 2016 Utility Operat
Slide 17: Financing, Interest Expense and Tax
Financing, Interest Expense and Tax Liquidity and Capital Resources Long Term Debt Maturities ($MM) (1) Anticipate strong balance sheet and cash flow $800 Project total capital investment of ~$1.4 billion for 2016 $600 No external sources or cash from operations needed to finance $363 million invest
Slide 18: Appendix
Appendix investors.centerpointenergy.com 18
Slide 19: Q1 2016 Regulatory Update
Q1 2016 Regulatory Update Electric Transmission and Distribution: 2016 Regulatory Update Requested annualized rate relief from pending 2016 filings: $36.4 million Expected Annual Increase Mechanism Comments Docket # Effective Date ($MM) Filed on April 4, 2016; request of $49.4 million, DCRF 3Q 2016
Slide 20: Q1 2016 Regulatory Update: Natural Gas Utilities (Continued)
Q1 2016 Regulatory Update Natural Gas Utilities: 2016 Regulatory Update (Continued) Requested annualized rate relief from pending 2015 filings: $35.6 million Expected Annual Increase Jurisdiction Comments Docket # Effective Date ($MM) Rate case filed on November 10, 2015; pending Arkansas 3Q 2016 $3
Slide 21: Reconciliation: Net Income and diluted EPS to the Basis Used in Providing Annual Earnings Guidance
Reconciliation: Net Income and diluted EPS to the Basis Used in Providing Annual Earnings Guidance Quarter Ended March 31, 2016 March 31, 2015 Net Income Net Income (in millions) EPS (in millions) EPS Consolidated as reported $ 154 $ 0.36 $ 131 $ 0.30 Midstream Investments (37) (0.09) (33) (0.08) Ut