Centerpoint Energy, Inc (holding Co) · NYSE:CNP
Centerpoint Energy, Inc (holding Co) — Q4 2024 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: Cautionary Statement and Other Disclaimer
Cautionary Statement and Other Disclaimer 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 state
Slide 3: Q4 and FY 2024 Update
Q4 and FY 2024 Update Long-Term Strategic Objectives Q4 & FY ‘24 Updates Consistent, Delivered $0.40 non-GAAP EPS for fourth Targeting industry-leading non-GAAP EPS annual growth of 8% in 2024 and dividend per Sustainable quarter and $1.62 for FY 2024; Represents 8% share growth in line with non-GAA
Slide 4: FY 2024 vs FY 2023 Non-GAAP EPS
FY 2024 vs FY 2023 Non-GAAP EPS (1) Primary Drivers Ongoing Cost Growth and Rate Management & Recovery Weather / Usage Interest Expense Other ($0.03) ($0.14) $0.34 ($0.05) Electric Electric Interest Expense (2) $0.04 Growth $0.01 Usage $0.10 Other $0.02 Weather $0.25 Rate Recovery $0.05 O
Slide 5: Rate Case Snapshot
Rate Case Snapshot IN Electric Houston Electric MN Gas OH Gas (Docket 45990) (Docket 56211) (Docket 23-173) (Docket 24-0832-GA-AIR ) Date Filed 10/29/2024 Final Order Issued Unopposed Settlement All-Party Settlement Key Details Below Key Details Below Key Details Below Test Year End Forward test yea
Slide 6: System Resiliency Plan ~$5.5B
System Resiliency Plan Improving the customer experience through accelerated and increased investment Strengthening overall Expected savings of ~$50MM resiliency by 30% per year in storm-related costs Resiliency Capital Expected avoidance of 500K+ Investments Expected reductions in outages o
Slide 7: Diverse Electric Load Growth Drivers
Diverse Electric Load Growth Drivers Underpinned by annual customer growth of ~2% Energy Refining Current Peak Commercial and Energy Forecasted Peak Logistics & Load Exports Load Transport ~61GW • Continued expansion and electrification of • Continued expansion of Texas Medical Center Petrochemical
Slide 8: Q4 2024 vs Q4 2023 Non-GAAP EPS
Q4 2024 vs Q4 2023 Non-GAAP EPS (1) Primary Drivers Ongoing Cost Growth and Rate Management & Recovery Weather / Usage Interest Expense Other ($0.06) ($0.06) $0.02 $0.01 $0.02 $0.05 Electric Electric Interest Expense Other $0.01 Growth ▲ $0.01 Usage $0.03(2) $0.01 Other(3) $0.05 Rate Recovery
Slide 9: Capital Expenditures by Segment
Capital Expenditures by Segment Current 5-Yr Plan(1) 10-YR Plan Continued Incremental Capital Opportunities 4Q FY FY ‘21 – ‘25 ‘21 – ‘30 2024 2024 2025E(3) Plan Plan • Electric Transmission Investments (Houston & Indiana Electric) Electric(2) ~$0.7B ~$2.2B ~$3.3B ~$13.7B ~$32.0B • Resiliency and Gri
Slide 10: Temporary Generation Solution
Temporary Generation Solution A unique Texas solution and a constructive outcome for all stakeholders ~$800MM - Original Total Lease Cost Making Customers Whole… …and Preserving Value for Investors Regulatory Foregone Storm Rate Case Revenue Value of Value of Recovery(1) Recovery Reduction Donation
Slide 11: Continued Focus on Credit and Balance Sheet Strength
Continued Focus on Credit and Balance Sheet Strength (1)(2) Consolidated FFO To Debt Company Debt Ratings(3) 2023 Full year 2024 Full Year Moody’s S&P Fitch Moody’s 18.5% 9.7% Entity (Neg) (Neg) (Neg) (2) Adjusted for 1-time items – Moody’s methodology 14.0% 13.6% CenterPoint Energy, Inc. Baa2 BBB B
Slide 12: 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
Slide 13: Appendix
Appendix 13
Slide 14: Regulatory Schedule
Regulatory Schedule Upcoming Regulatory Activity Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ROE / Equity Ratio ’25 Rate Base(4) Settlement Final TX (E) filed Jan 29 Order TCOS(5) / DCRF(5) / TEEEF TCOS / DCRF 9.65% / 43.25%(1) $15.4B IN (E) Final Order Approved Feb 3 CECA / ECA ECA / TDSIC 9.8%
Slide 15: Capital Plan & Regulatory Mechanisms
Capital Plan & Regulatory Mechanisms Over 80% of 10-year Capital Plan expected to be recoverable Regulatory Highlights Stakeholder Benefits through interim mechanisms Traditional Existing Mechanisms for timely recovery Reasonable cost recovery minimizes Rate case rate case with forward ~5% of major
Slide 16: Weather and Throughput Data
Weather and Throughput Data Electric Natural Gas 4Q 2024 4Q 2023 2024 vs 2023 4Q 2024 4Q 2023 2024 vs 2023 Residential 48 61 (21%) Throughput Throughput Residential 6,971 6,312 10% (in GWh) (in Bcf) Commercial and 107 111 (3%) Industrial Total 26,101 23,972 9% Total 155 171 (9%) Residential 4,063,92
Slide 17: 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: ~$1,000MM Supports balance sheet optimization 1.55x of 2023 rate base (1) Sign
Slide 18: Key Resiliency Actions
Key Resiliency Actions GHRI Phase I(1) August 2024 GHRI Phase II Sept. 2024 - June 1, 2025 As of Feb. 5, Near Term Actions Target 2025 QUICK ACTION Target Complete TO REDUCE OUTAGES Installing poles that can withstand extreme 11,330 25,000 winds poles poles Installing automated reliability devices t
Slide 19: Expected Generation Project Timeline
Expected Generation Project Timeline(1) (1) (1) Note: Refer to slide 2 for information on forward-looking statements and slide 25 for our Net Zero Disclaimer. 1) Updated based on most recent information available 19
Slide 20: Reconciliation: Income and Diluted EPS to non-GAAP (2024)
Reconciliation: Income (Loss) and Diluted Earnings (Loss) per share to non-GAAP Income and non-GAAP Diluted EPS used in providing annual earnings guidance Quarter Ended Quarter Ended Quarter Ended Quarter Ended Year-to-Date March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 December 3
Slide 21: Reconciliation: Income and Diluted EPS to non-GAAP (2023)
Reconciliation: Income (Loss) and Diluted Earnings (Loss) per share to non-GAAP Income and non-GAAP Diluted EPS used in providing annual earnings guidance Quarter Ended Quarter Ended Quarter Ended Quarter Ended Year-to-Date March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 December 3
Slide 22: Reconciliation: Operating Cash Flow and Debt to FFO (Moody's)
Reconciliation: Net Cash Provided by Operating Activities and Total Debt, Net to non- GAAP Funds from Operations (FFO) and non-GAAP Adj. Debt Based on Moody’s Methodology Twelve month to date ended and as of period ended, respectively ($ in millions) YE 2023 YE 2024 Net cash provided by operating ac
Slide 23: 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 YE 2024 Unadjusted EBITDA Gross Margin 6,536 6,925 O&M
Slide 24: 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
Slide 25: 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,
CenterPoint Energy, Inc (Holding Co) — Q4 2024 Earnings Presentation on 6ix