Centerpoint Energy, Inc (holding Co) · NYSE:CNP
Centerpoint Energy, Inc (holding Co) — Corporate Update (April 2020)
12 slides from Centerpoint Energy, Inc (holding Co)'s corporate update, Apr 2, 2020
Slide 1: Investor Market Update April 2, 2020
Exhibit 99.2 INVESTOR MARKET UPDATE APRIL 2, 2020
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT 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 statements of historical f
Slide 3: Reduction to Annual Cash Distribution from Midstream Investments
REDUCTION TO ANNUAL CASH DISTRIBUTION FROM MIDSTREAM INVESTMENTS • Enable Midstream Partners, LP (Enable) announced a reduction to its annual LP common unit distributions • Enable’s 50% reduction in distributions results in approximately $155 million of lower annualized cash flow to CNP relative to
Slide 4: Disciplined O&M Management
DISCIPLINED O&M MANAGEMENT • Accelerated action on key O&M management initiatives seeking to realize incremental targeted savings of ~$40 million in 2020 Utility O&M Management(1) Key O&M Management Initiatives ($40) ➢ Continued systematic review of operating areas to reduce O&M by aligning work act
Slide 5: Utility Capital Investment Deferral
UTILITY CAPITAL INVESTMENT DEFERRAL Reduce 2020 utility capital investment from $2.6B to $2.3B Continue to target ~$13B of total capital to be invested over next 5 years 2021E – 2024E Incremental capital opportunity Redeploy deferred 2020 capital of $0.3B(1) $2.8 $2.6 $2.7 $2.5 $2.6 (1) ($0.3) $2.3
Slide 6: Common Stock Dividend Rebalance
COMMON STOCK DIVIDEND REBALANCE Target approximately 50% - 55% payout ratio relative to utility earnings ($0.56) ~48% annualized reduction(1) $1.16 annualized $0.60 annualized Previous annualized Reduction to Revised annualized common stock dividend common stock dividend common stock dividend Common
Slide 7: Prudent and Appropriate Actions Strengthen Financial Position
PRUDENT AND APPROPRIATE ACTIONS STRENGTHEN FINANCIAL POSITION $40 million $300 million ~48% Incremental O&M Deferral of utility Reduction to common reductions capital investment stock dividend(1) • Planned actions above and increased earnings contribution from utilities are expected to strengthen Ce
Slide 8: CenterPoint's Continued Transition to More Utility Focused Strategy
CENTERPOINT’S CONTINUED TRANSITION TO MORE UTILITY FOCUSED STRATEGY 2018A(1) 2020E(2) 2022E(2) Announced Vectren utilities acquisition of and sale of Energy Services / Core utility focus Vectren Infrastructure Services 70% 87% 97% Utility(1) Utility(2) Utility(2) ❑ Regulated utility ❑ Pure play gas
Slide 9: Areas of Strategic Focus
AREAS OF STRATEGIC FOCUS Top Quartile Customer Growth Lower-risk T&D and Gas LDC and Low Customer Rates ◼ 96%(1) of rate base from lower-risk Gas ◼ Electric customer growth of 2.0%(2) and LDC and electric T&D utility asset bases gas of 1.2%(3), both above the national ◼ Premium utilities earning the
Slide 10: Appendix
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Slide 11: Pandemic Update
PANDEMIC UPDATE • The COVID-19 pandemic poses safety, economic and financial challenges throughout the United States – CenterPoint maintains liquidity via our $5.1 billion credit facilities, utility cash flow and commercial paper programs – CenterPoint has engaged with regulators and industry partne
Slide 12: Texas Electric Regulatory Update
TEXAS ELECTRIC REGULATORY UPDATE • The PUCT approved an accounting order approving a regulatory asset for Houston Electric’s incremental expenses associated with COVID-19 – The amount of carrying costs and the period of recovery will be addressed in a future proceeding – Constructive precedent for u