Centerpoint Energy, Inc (holding Co) · NYSE:CNP
Centerpoint Energy, Inc (holding Co) — Q4 2020 Earnings Presentation
27 slides from Centerpoint Energy, Inc (holding Co)'s earnings presentation, Feb 25, 2021
Slide 1: Fourth Quarter 2020 Investor Update
FOURTH Quarter 2020 Investor Update February 25, 2021 Exhibit 99.2
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
Slide 3: Takeaways: Executing on our promises
takeaways…. 2020 Guidance Basis Consolidated EPS Beats Consensus Organic customer growth, disciplined O&M management, capital recovery. Overcame share dilution. Delivered guidance basis Utility EPS of $1.17 Minimizing Midstream Exposure Transaction announced between Enable and Energy Transfer; Curre
Slide 4: Fourth quarter and full year 2020 results
Fourth quarter and Full year 2020 results…. ….STRONG GUIDANCE BASIS RESULTS. RAISING FUTURE GUIDANCE! Note: Refer to slide 2 for information on forward-looking statements and slide 27 for information on guidance basis Utility EPS assumptions and non-GAAP measures. Refer to $185M loss on impairment i
Slide 5: Fourth quarter and full year 2020 primary drivers
Fourth quarter and full year 2020 PRIMARY DRIVERS…. ….DEMONSTRATE LONG-TERM RUNWAY Note: Refer to slide 2 for information on forward-looking statements and slide 27 for information on guidance basis Utility EPS assumptions and non-GAAP measures. Refer to slides 23 - 26 for reconciliation to GAAP mea
Slide 6: Enable transaction puts us on a path to minimize midstream exposure
Enable transaction…. ….PUTS US ON A PATH TO MINIMIZE MIDSTREAM EXPOSURE Note: Refer to slide 2 for information on forward-looking statements and slide 27 for information on guidance basis Utility EPS assumptions and non-GAAP measures. Refers to guidance basis utility EPS annual growth rate over 2021
Slide 7: 2021 guidance basis utility EPS raised
2021 GUIDANCE BASIS utility eps raised…. Note: Refer to slide 2 for information on forward-looking statements and slide 27 for information on guidance basis Utility EPS assumptions and non-GAAP measures. Refers to guidance basis Utility EPS annual growth rate over 2021 – 2025 Includes customer growt
Slide 8: February 2021 winter storm event highlights our strong regulatory construct
February 2021 Winter storm event…. ….HIGHLIGHTS OUR STRONG REGULATORY CONSTRUCT Note: Refer to slide 2 for information on forward-looking statements and slide 27 for information on guidance basis Utility EPS assumptions and non-GAAP measures. As compared to plan Based on current cost recovery mechan
Slide 9: Efficient financing plan enhances risk reduction and earnings growth
EFFICIENT FINANCING Plan…. Key Actions Executed extension of Revolving Credit Facilities in February 2021: Maturity extended by 3 years with aggregate amount reduced by $900M Addressing near term maturities at CEHE and parent Strong liquidity: ~$2.1Bn as of 2/22/2021 DRIP expected to raise ~$25 mill
Slide 10: Consistent, premier performance for customers and investors
Consistent, premier performance…. OPERATING EXCELLENCE UTILITY EPS (5) OUTLOOK DURING 2020 We sweat the details… ….so you don’t have to. Future CNP Peer Avg (4) Rate Base Growth 10% (1) 7% Utility EPS Growth 6% - 8% (2) 5% Customer Growth Up ~2% Flat O&M (3) Cost Down 1% to 2% +1% Customer Satisfact
Slide 11: Culture of continuous improvement
Culture of continuous improvement…. Safety – Every day Quality – The first time Delivery – On time Cost – See, eliminate waste Morale – Proud to serve ACCELERATES EXAMPLES OF O&M (1) COST SAVINGS Good Business Decisions 2021 vs 2020 (millions) 2021 – 2025 (millions) Attrition $4 $20 Carbon Reduction
Slide 12: Our value proposition – Report card
Our value proposition – Report card Note: Refer to slide 2 for information on forward-looking statements and slide 27 for information on guidance basis Utility EPS assumptions and non-GAAP measures. Refers to guidance basis Utility EPS annual growth rate for 2021 – 2025 Refers to CNP Rate Base CAGR
Slide 13: Thank you for your support
THANK YOU FOR YOUR SUPPORT Contacts Philip Holder Senior Vice President Strategic Planning and Investor Relations Tel. (713) 207 – 7792 philip.holder@centerpointenergy.com Panpim Lohachala Manager Investor Relations Tel. (713) 207 – 7961 panpim.lohachala@centerpointenergy.com
Slide 14: Appendix
@ LenterPoint. Energy APPENDIX
Slide 15: Q4 2020 v Q4 2019 guidance basis EPS drivers
Q4 2020 v Q4 2019 Guidance Basis (NON-GAAP) EPS(1) drivers for Continuing Operations Note: Refer to slide 27 for information on guidance basis Utility EPS assumptions and non-GAAP measures Refer to slides 23 and 25 for reconciliation to GAAP measures Reference Enable’s 2020 Form 10-K and fourth quar
Slide 16: Full year 2020 v 2019 guidance basis EPS drivers
Full year 2020 v 2019 Guidance Basis (NON-GAAP) EPS(1) drivers for Continuing Operations Note: Refer to slide 27 for information on guidance basis Utility EPS assumptions and non-GAAP measures Refer to slides 24 and 26 for reconciliation to GAAP measures Reference Enable’s 2020 Form 10-K and fourth
Slide 17: Weather-adjusted throughput growth
Electric Natural Gas Weather-adjusted throughput (1) growth 2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020 Note: C&I – Commercial and Industrial Volume in kWh for Electric and MCF for Gas.
Slide 18: Indiana Integrated Resource Plan
Indiana INTEGRATED RESOURCE PLAN (1) Note: Refer to slide 2 for information on forward-looking statements. IRP – Integrated Resource Plan; CPCN – Certificate of Public Convenience and Necessity. Subject to change based on availability and approval Based on 2005 levels PROPOSED GENERATION TRANSFORMAT
Slide 19: Legislative and Regulatory Update
Legislative and Regulatory Update Legislative bills to monitor Economic tests for transmission project approval: Texas (Electric) Including storage lease payments in rate base: Texas (Electric) Preventing city bans on natural gas: Arkansas, Indiana and Texas Supporting use of renewable gas: Arkansas
Slide 20: Regulatory schedule – Electric
Regulatory schedule – Electric 2021 2022 2023 Rate Case Expect to file in Q4 for both Houston and Indiana TCOS (TX) Expect to file two times per year (timing may vary) DCRF (TX) Expect to file in Q2 Expect to file in Q2 TDSIC (IN) Expect to file two times per year CECA (IN) Expect to file in Q1 of e
Slide 21: Regulatory schedule – Natural gas
Regulatory schedule – Natural gas 2021 2022 2023 Rate Case Phase I for Indiana North and Indiana South Phase II for Indiana N & S Expect to file for Minnesota Expect file in Q4 for Houston and TX Coast GRIP (TX) Expect to file in Q1 of each year FRP (AR) Expect to file in Q2 of each year PBRC (OK) E
Slide 22: Midstream transaction summary term sheet
MIDSTREAM TRANSACTION Summary Term sheet Note: Refer to slide 2 for information on forward-looking statements. ET – Energy Transfer LP Calculated based on the 10-day VWAP as of 2/12/2021 Based on an exchange ratio of 0.8595x. Assumes Enable common unit count of 435.5M as of 10/16/20 and 1.8M of Enab
Slide 23: Reconciliation: income and diluted EPS to guidance basis
RECONCILIATION: INCOME (loss) AND DILUTED Earnings (loss) per share TO Guidance basis INCOME AND guidance basis DILUTED EPS USED IN PROVIDING ANNUAL Earnings GUIDANCE Note: Refer to slide 27 for information on non-GAAP measures Energy Services segment Infrastructure Services segment Quarterly dilute
Slide 24: Reconciliation: income and diluted EPS to guidance basis
RECONCILIATION: INCOME (loss) AND DILUTED Earnings (loss) per share TO guidance basis INCOME AND guidance basis DILUTED EPS USED IN PROVIDING ANNUAL Earnings GUIDANCE Note: Refer to slide 27 for information on non-GAAP measures Energy Services segment Infrastructure Services segment Quarterly dilute
Slide 25: Reconciliation: income and diluted EPS to guidance basis
RECONCILIATION: INCOME (loss) AND DILUTED Earnings (loss) per share TO guidance basis INCOME AND guidance basis DILUTED EPS USED IN PROVIDING ANNUAL Earnings GUIDANCE Note: Refer to slide 27 for information on non-GAAP measures Energy Services segment Infrastructure Services segment Quarterly dilute
Slide 26: Reconciliation: income and diluted EPS to guidance basis
RECONCILIATION: INCOME (loss) AND DILUTED Earnings (loss) per share TO guidance basis INCOME AND guidance basis DILUTED EPS USED IN PROVIDING ANNUAL Earnings GUIDANCE Note: Refer to slide 27 for information on non-GAAP measures Energy Services segment Infrastructure Services segment Quarterly dilute
Slide 27: Additional information: Use of Non-GAAP Financial Measures
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, guidance basis Utility earnings per share (“Utility EPS”), which is not a generally accepted accountin