Centerpoint Energy, Inc (holding Co) · NYSE:CNP
Centerpoint Energy, Inc (holding Co) — Q1 2024 Earnings Presentation
23 slides from Centerpoint Energy, Inc (holding Co)'s earnings presentation, Apr 30, 2024
Slide 1: First Quarter 2024 Investor Update
Establishing a path towards PREMIUM Through Sustainable Growth… FIRST QUARTER 2024 INVESTOR UPDATE April 30, 2024
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: Our Premium Value Proposition and Continuing Track Record of Execution
OUR PREMIUM VALUE PROPOSITION AND CONTINUING TRACK RECORD OF EXECUTION Long-Term Strategic Objectives Q1’24 Updates Consistent, Targeting industry-leading non-GAAP EPS annual growth of 8% in Delivered $0.55 non-GAAP EPS growth Sustainable 2024 and at the mid-to-high end of 6-8% annually thereafter t
Slide 4: System Resiliency Plan Highlights
System Resiliency Plan Highlights ~$2.2B to $2.7B Capital Investment Plan Range (2025-2027) (1) Electric System Hardening and Modernization Information and Operational Technology (~$1.7B - $2.1B) (~$315MM - $400MM) • Replace and upgrade assets most susceptible to • Implement technology solutions to
Slide 5: Rate Case Snapshot
Rate Case Snapshot TX Gas MN Gas IN Electric Houston Electric (Docket 15513) (Docket 23-173) (Docket 45990) (Docket 56211) Date Filed November 1, 2023 ✓ December 5, 2023 ✓ March 6, 2024 ✓ All Party Settlement Filed: Highlights Below Forward test year: 2024 & Test Year End 2025 Forward test year: 202
Slide 6: Q1 2024 v Q1 2023 Non-GAAP EPS Primary Drivers
Q1 2024 v Q1 2023 Non-GAAP EPS (1) Primary Drivers Ongoing Cost Growth and Weather / Management & Rate Recovery Usage Interest Expense Other $0.06 Electric Gas Interest Expense $0.01 Growth $0.02 Weather $0.04(2) ▲ $0.03 Rate Recovery O&M Gas ▼ $0.02 $0.50 $0.05 Rate Recovery $0.55 Q1 2023 Q
Slide 7: Capital Expenditures by Segment
Capital Expenditures by Segment…. 10-Yr Plan(2) Current 5-Yr Plan(1) Through 2030 Continued Incremental Capital FY 1Q FY 5-YR 10-YR Opportunities 2023 2024 2024E(4) Plan Plan • Increased & accelerated (3) C&I electrification Electric ~$2.7B ~$0.5B $~2.2B ~$13.7B ~$29.0B • Accelerated EV adoption Nat
Slide 8: Continued Focus on Balance Sheet Strength
Continued Focus on Balance Sheet Strength Floating Rate Exposure FFO To Debt(1)(2) 2023 Full year 1Q 2024 TTM $3.5 Moody’s 18.5% 13.5% ~16% Adjusted for 1-time items – Moody’s of total 14.0% 14.6% methodology(2) $3.0 $2.6B S&P 11.2% 11.4% SIGECO Adjusted for 1-time items – S&P methodology 12.3% 12.4
Slide 9: 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 10: Appendix
e CenterPoint. Energy Appendix
Slide 11: 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) ✓ Si
Slide 12: Customer Affordability Houston Electric
Customer Affordability Houston Electric Average Monthly CEHE Charges (per 1,000 kWh) Future Expected Bill Mitigants ~$49 ~$49(1) Customer Growth 1-2% annual customer Rates growth Structural Based Headroom on CEHE’s 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Current Securitization Capital O&M
Slide 13: Capital Plan & Regulatory Mechanisms
Capital Plan & Regulatory Mechanisms Over 80% of 10-year Capital Plan expected to be recoverable through interim Regulatory Highlights Stakeholder Benefits mechanisms Existing Mechanisms Reasonable cost recovery Traditional Rate case rate case for timely recovery of minimizes customer impact with fo
Slide 14: Weather and Throughput Data
Weather and Throughput Data Electric Natural Gas 1Q 2024 1Q 2023 2024 vs 2023 1Q 2024 1Q 2023 2024 vs 2023 Residential 74 96 (23)% Throughput Throughput Residential 5,963 5,968 0% (in GWh) (in Bcf) Commercial and 101 133 (24)% Industrial Total 23,063 21,756 6% Total 175 229 (24)% Residential 4,026,0
Slide 15: Regulatory Schedule
Regulatory Schedule Upcoming Rate Case Activity ROE / Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Equity Ratio ’24 Rate Base(3) TX (E) GRC 9.40% / 42.5% $13.9B IN (E) GRC Phase 1 Rates 10.40% / 43.5%(1) $2.1B Settlement filed TX (G) GRC April 23 9.64% / 55.5%(2) $2.9B MN (G) GRC 9.39% / 51.0% $2
Slide 16: Expected Generation Project Timeline
Expected Generation Project Timeline (1) (1) (1) (1) (1) Note: Refer to slide 2 for information on forward-looking statements. 16 (1) Updated based on most recent information available
Slide 17: Reconciliation: Income and Diluted EPS to non-GAAP, Q1 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 March 31, 2024 Dollars in Diluted millions EPS (1) Consolidated income (loss) available to common shareholders and diluted EPS $ 35
Slide 18: Reconciliation: Income and Diluted EPS to non-GAAP, Q1 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 March 31, 2023 Dollars in Diluted millions EPS (1) Consolidated income (loss) available to common shareholders and diluted EPS $ 31
Slide 19: Reconciliation: Income and Diluted EPS to non-GAAP, 2023 Quarters
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 20: Reconciliation: FFO and Adjusted Debt, Moody's Methodology
Reconciliation: Net Cash Provided by Operating Activities and Total Debt, Net to non-GAAP Funds from Operations (FFO) and non-GAAP Adjusted Debt Based on Moody’s Methodology Twelve month to date ended and as of period ended, respectively ($ in millions) YE 2023 1Q 2024 Net cash provided by operating
Slide 21: Reconciliation: FFO and Adjusted Debt, S&P Methodology
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 1Q 2024 Unadjusted EBITDA Gross Margin 6,536 6,707 O&M
Slide 22: 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 23: 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) — Q1 2024 Earnings Presentation on 6ix