Centerpoint Energy, Inc (holding Co) · NYSE:CNP
Centerpoint Energy, Inc (holding Co) — Q2 2017 Earnings Presentation
25 slides from Centerpoint Energy, Inc (holding Co)'s earnings presentation, Aug 3, 2017
Slide 1: 2nd Quarter 2017 Earnings Call
2nd Quarter 2017 Earnings Call August 3, 2017 Exhibit 99.2
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 performa
Slide 3: Agenda
Agenda Scott Prochazka – President and CEO Second Quarter Results Business Segment Highlights Houston Electric Natural Gas Distribution Energy Services Midstream Investments Full-Year Outlook Midstream Investments Ownership Review Update Bill Rogers – Executive Vice President and CFO Business Segmen
Slide 4: Second Quarter 2017 Performance
Second Quarter 2017 Performance (1) Refer to slide 23 for reconciliation to GAAP measures and slide 2 for information on non-GAAP measures (2) Excluding ZENS and CES mark-to-market adjustments (3) Items related to the Texas Gulf rate order include recording of a regulatory asset (and a corresponding
Slide 5: Electric Transmission and Distribution Highlights
Electric Transmission and Distribution Highlights TDU core operating income was $144 million in Q2 2017 compared to $135 million in Q2 2016 Added more than 52,000 metered customers year-over-year, representing 2% customer growth Total throughput increased 2.5% from Q2 2016 to Q2 2017 DCRF Unanimous
Slide 6: Natural Gas Distribution Highlights
Natural Gas Distribution Highlights Natural Gas Distribution operating income was $37 million in Q2 2017 compared to $20 million in Q2 2016 Added more than 32,000 customers year-over-year, representing 1% customer growth Texas Gulf rate order approved by the RRC in May 2017 establishes parameters fo
Slide 7: Energy Services Highlights and Outlook
Energy Services Highlights and Outlook Q2 2017 Operating Income Operating income was $10 million in Q2 2017 compared to $7 million in Q2 2016, excluding a mark-to-market gain of $6 million and loss of $7 million, respectively Business Outlook Energy Services projected to contribute $45 - $55 million
Slide 8: Midstream Investments Highlights
Midstream Investments Highlights $0.09 EPS Contribution in Q2 2017 vs $0.03 in Q2 2016 Source: Enable Midstream Partners, August 1, 2017, Q2 Earnings Call. Please refer to these materials for an overview of Enable’s Q2 2017 performance 44 Active Rigs on Enable’s Footprint (4) 50,000 New acres dedica
Slide 9: 2017 Full-Year Outlook
2017 Full-Year Outlook Utility rate relief and continued customer growth Increased contribution from Energy Services, partly due to recent acquisitions Increased earnings per Enable Midstream Partners’ forecast (2) Anticipate 2017 EPS growth will be driven by: (1) Refer to slide 25 for reconciliatio
Slide 10: Midstream Investments Ownership Review Update
Midstream Investments Ownership Review Update Criteria for Consideration of a Sale or Spin – Sustainable value for our long-term shareholders Comparable earnings per share and dividends Improve visibility of future earnings Maintain current credit ratings of CenterPoint Activity Update Sale – Multip
Slide 11: Agenda
Scott Prochazka – President and CEO Second Quarter Results Business Segment Highlights Houston Electric Natural Gas Distribution Energy Services Midstream Investments Full-Year Outlook Midstream Investments Ownership Review Update Bill Rogers – Executive Vice President and CFO Business Segment Perfo
Slide 12: Electric Transmission and Distribution Operating Income Drivers
Electric Transmission and Distribution Operating Income Drivers Q2 2016 vs Q2 2017 (1) Houston Electric’s customer count increased by 52,051 from 2,377,352 as of June 30, 2016 to 2,429,403 as of June 30, 2017 (2) Q2 2016 TDU core operating income represents total segment operating income of $158 mil
Slide 13: Natural Gas Distribution Operating Income Drivers
Natural Gas Distribution Operating Income Drivers Q2 2016 vs Q2 2017 (1) Natural Gas Distribution’s customer count increased by 32,685 from 3,397,827 as of June 30, 2016 to 3,430,512 as of June 30, 2017 (2) Includes rate relief increases of $6 million, primarily from the Arkansas rate case filing of
Slide 14: Utility Operations Adjusted Diluted EPS Drivers
Utility Operations Adjusted Diluted EPS Drivers Q2 2016 vs Q2 2017 (Guidance Basis) (1) Excludes equity return; please refer to slide 22 for more detail on core operating income (2) Includes a $9 million decrease in interest expense due to lower weighted average interest rates on outstanding debt an
Slide 15: Consolidated Adjusted Diluted EPS Drivers
Consolidated Adjusted Diluted EPS Drivers Q2 2016 vs Q2 2017 (Guidance Basis) Utility Operations Midstream Investments $0.17 $0.29 Midstream Investments Utility Operations (1) See previous slide (2) Uses an ownership percentage of 55.4% for Q2 2016 and 54.1% for Q2 2017 (3) Midstream Investments com
Slide 16: Update on 2017 Investment and Financing
Update on 2017 Investment and Financing 2017 Investment and Financing Planned capital investment of approximately $1.5 billion (1) Net incremental borrowing anticipated of $200 – $400 million (2) Equity issuance not anticipated Increased size of Credit Facilities by $400 million to an aggregate of $
Slide 17: Consolidated Adjusted Diluted EPS Drivers, Six Months
Consolidated Adjusted Diluted EPS Drivers Six Months Ended June 30, 2016 vs YTD 2017 (Guidance Basis) Utility Operations Midstream Investments $0.49 $0.66 Midstream Investments Utility Operations (1) Includes Utility Operations improvement of $0.04 in Q1 2017 vs Q1 2016 and $0.06 in Q2 2017 vs Q2 20
Slide 18: Agenda
Scott Prochazka – President and CEO Second Quarter Results Business Segment Highlights Houston Electric Natural Gas Distribution Energy Services Midstream Investments Full-Year Outlook Midstream Investments Ownership Review Update Bill Rogers – Executive Vice President and CFO Business Segment Perfo
Slide 19: Electric Transmission and Distribution Q2 2017 Regulatory Update
Electric Transmission and Distribution Q2 2017 Regulatory Update Mechanism Docket # Annual Increase (1) ($ in millions) Filing Date Effective Date Approval Date Additional Information AMS 47364 N/A June 2017 TBD TBD Final reconciliation of AMS surcharge proposing a $28.7 million refund for AMS reven
Slide 20: Natural Gas Distribution Q2 2017 Regulatory Update
Natural Gas Distribution Q2 2017 Regulatory Update Jurisdiction Mechanism Docket # Annual Increase (1) ($ in millions) Filing Date Effective Date Approval Date Additional Information South Texas and Beaumont/East Texas (RRC) GRIP 10618, 10619 $7.6 March 2017 July 2017 June 2017 Based on net change i
Slide 21: Natural Gas Distribution Q2 2017 Regulatory Update
Natural Gas Distribution Q2 2017 Regulatory Update Jurisdiction Mechanism Docket # Annual Increase (1) ($ in millions) Filing Date Effective Date Approval Date Additional Information Minnesota (MPUC) Rate Case G008/GR-17-285 $56.5 August 2017 TBD TBD Reflects a proposed 10.0% ROE on a 52.18% equity
Slide 22: Reconciliation: Operating Income to Core Operating Income
Reconciliation: Operating Income to Core Operating Income on a Guidance (Non-GAAP) Basis
Slide 23: Reconciliation: Net Income and Diluted EPS to Adjusted
Reconciliation: Net Income and Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS Used in Providing Annual Earnings Guidance
Slide 24: Reconciliation: Net Income and Diluted EPS to Adjusted
Reconciliation: Net Income and Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS Used in Providing Annual Earnings Guidance
Slide 25: Reconciliation: Net Income and Diluted EPS to Adjusted
Reconciliation: Net Income and Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS Used in Providing Annual Earnings Guidance