Centerpoint Energy, Inc (holding Co) · NYSE:CNP
Centerpoint Energy, Inc (holding Co) — Q3 2024 Earnings Presentation
22 slides from Centerpoint Energy, Inc (holding Co)'s earnings presentation, Oct 28, 2024
Slide 1: Third Quarter 2024 Investor Update
THIRD QUARTER 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: Q3 Update
Q3 Update Long-Term Strategic Objectives Q3’ 24 Updates Consistent, Targeting industry-leading non-GAAP EPS annual growth of 8% in 2024 and dividend per Delivered $0.31 non-GAAP EPS for the third Sustainable share growth in line with non-GAAP EPS earnings of $1.61 - $1.63; achieved ~75% YTD of quart
Slide 4: Mutual Assistance Response: Hurricane Beryl
Mutual Assistance Response: Hurricane Beryl This coordination allowed us to restore power to 1 million customers within the first 48 hours Percentage of affected customers restored 100% 90% 85% 80% 75% 70% 61% 53% 50% 53% 50% 42% 45% 36% 35% 27% 25% 22% 12% 5% 0% Deployed and managed 2,000 crew work
Slide 5: Key Resiliency Actions
Key Resiliency Actions GHRI Phase I(1) August 2024 GHRI Phase II Sept. 2024 - June 1, 2025 QUICK ACTION Installing poles that can withstand extreme winds 25,000 poles Target Complete TO REDUCE OUTAGES Installing automated reliability devices to reduce outages 4,500 devices Trimmed or removed 2,000 2
Slide 6: Rate Case Snapshot
Rate Case Snapshot IN Electric MN Gas Houston Electric OH Gas (Docket 45990) (Docket 23-173) (Docket 56211) (Docket 24-0832-GA-AIR ) Date Filed November 1, 2023 March 6, 2024 Yet to be Filed Proposed Settlement Filed (Requested to withdraw Aug. 2024) Key Details Below Test Year End Forward test
Slide 7: Q3 2024 vs Q3 2023 Non-GAAP EPS
Q3 2024 vs Q3 2023 Non-GAAP EPS (1) Primary Drivers Ongoing Cost Growth and Rate Management & Recovery Weather / Usage Interest Expense Other ($0.06) ($0.06) $0.16 ($0.02) Electric Electric Interest Expense Other $0.01 Growth $0.02 Usage $0.01(2) $0.02 Other(4) $0.07 Rate Recovery $0.04 W
Slide 8: Capital Expenditures by Segment
Capital Expenditures by Segment Current 5-Yr Plan(1) 10-YR Plan Continued Incremental Capital Opportunities YTD FY FY ‘21 – ‘25 ’21 – ‘30 2024 2024E(3) 2025E(3) Plan Plan • Electric Transmission Investments (Houston & Indiana Electric) Electric(2) ~$1.5B ~$2.2B ~$3.6B ~$13.7B ~$31.5B • Resiliency an
Slide 9: Continued Focus on Credit and Balance Sheet Strength
Continued Focus on Credit and Balance Sheet Strength Consolidated FFO To Debt(1)(2) Company Debt Ratings(3) 2023 Full year 3Q 2024 TTM Moody’s S&P Fitch Entity Moody’s 18.5% 10.3% (Neg) (Neg) (Neg) Adjusted for 1-time items – Moody’s CenterPoint Energy, Inc. Baa2 BBB BBB 14.0% 13.8% methodology(2) H
Slide 10: 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 11: Appendix
Appendix 11
Slide 12: 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 13: 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 14: Weather and Throughput Data
Weather and Throughput Data Electric Natural Gas 3Q 2024 3Q 2023 2024 vs 2023 3Q 2024 3Q 2023 2024 vs 2023 Residential 16 14 14% Throughput Throughput Residential 11,807 13,851 (15%) (in GWh) (in Bcf) Commercial and 91 84 8% Industrial Total 32,633 35,029 (7%) Total 107 98 9% Residential 4,031,298 3
Slide 15: Regulatory Schedule
Regulatory Schedule Upcoming Regulatory Activity Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ROE / Equity Ratio ’24 Rate Base(4) Filed to withdraw DCRF, TCOS, TX (E) GRC GRC on 8/1 Securitization(6) 9.40% / 42.5%(1) $13.9B Settlement filed Settlement IN (E) GRC May 20 Hearings(5) 10.40% / 43.5%(
Slide 16: Expected Generation Project Timeline
Expected Generation Project Timeline (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) aaaaaaaaa Note: Refer to slide 2 for information on forward-looking statements. 1) Updated based on most recent information available 16
Slide 17: Reconciliation: Income and Diluted EPS to non-GAAP (2024)
Reconciliation: Income (Loss) and Diluted Earnings (Loss) per share to non-GAAP Income and non-GAAP Diluted EPS used in providing annual earnings guidance Quarter Ended Year-to-Date Ended September 30, 2024 September 30, 2024 Dollars in Diluted Dollars in Diluted millions EPS(1) millions EPS(1) Cons
Slide 18: Reconciliation: Income and Diluted EPS to non-GAAP (2023)
Reconciliation: Income (Loss) and Diluted Earnings (Loss) per share to non-GAAP Income and non-GAAP Diluted EPS used in providing annual earnings guidance Quarter Ended Year-to-Date Ended September 30, 2023 September 30, 2023 Dollars in Diluted Dollars in Diluted millions EPS(1) millions EPS(1) Cons
Slide 19: Reconciliation: Operating Cash Flow and Debt to non-GAAP FFO (Moody's)
Reconciliation: Net Cash Provided by Operating Activities and Total Debt, Net to non- GAAP Funds from Operations (FFO) and non-GAAP Adj. Debt Based on Moody’s Methodology Twelve month to date ended and as of period ended, respectively ($ in millions) YE 2023 3Q 2024 Net cash provided by operating ac
Slide 20: Reconciliation: Gross Margin and Debt to non-GAAP 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 3Q 2024 Unadjusted EBITDA Gross Margin 6,536 6,832 O&M
Slide 21: 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 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 income available to common shareholders, diluted earnings per share, and net cash provided by operating activities to total debt,
CenterPoint Energy, Inc (Holding Co) — Q3 2024 Earnings Presentation on 6ix