Centerpoint Energy, Inc (holding Co) · NYSE:CNP
Centerpoint Energy, Inc (holding Co) — Investor Presentation (March 2015)
27 slides from Centerpoint Energy, Inc (holding Co)'s investor presentation, Mar 26, 2015
Slide 1: Focused on Energy Delivery, Positioned to Execute
Exhibit 99.1 Focused on Energy Delivery, Positioned to Execute Introduction to CenterPoint Energy March 2015 A Fortune 500 company included in the: S&P 500 Index S&P 500 Utility Index Dow Jones Utility Average Index PHLX Utility Sector Index Russell 1000 Index
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains statements concerning our expectations, beliefs, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are not historical facts. These statements are “forward-looking statements” within
Slide 3: CenterPoint Energy, Inc. (NYSE: CNP)
CenterPoint Energy, Inc. (NYSE: CNP) Regulated Electric and Natural Gas Utility Serving more than Million 5.5 Customers Electric Transmission & Distribution: • Electric utility operation with ~2.3 million metered customers • ~12,900 kms² ervice territory in and around Houston • 18th largest U.S. inv
Slide 4: Operating Energy Delivery Businesses that Provide Superior Performance for our Key Stakeholders
Operating Energy Delivery Businesses that Provide Superior Performance for our Key Stakeholders Our Vision: Lead the nation in delivering energy, service and value We are a premier U.S. energy delivery company Delivering energy is CenterPoint Energy’s core business Delivering service and value appli
Slide 5: CenterPoint Energy’s Value Proposition
CenterPoint Energy’s Value Proposition Growth, Market Structure and Leadership Strong dividend yield (4.75% as of March 19, 2015) Competitive dividend growth rate projected to be supported by regulated utilities with potential for additional growth from Midstream investment Lack of generation assets
Slide 6: 2014 Year Highlights
2014 Year Highlights Utility Operations: Strong financial and operational performances Electric transmission and distribution utility operating income for 2014 was $477 million as compared to $474 million in 2013 Natural gas utility operating income for 2014 was $287 million as compared to $263 mill
Slide 7: 2015 Guidance as Provided on February 26, 2015
2015 Guidance as Provided on February 26, 2015 Consolidated EPS Guidance of $1.00 to $1.10 per Diluted Share Utility Operations EPS guidance: $0.71 to $0.75 per diluted share from a 2014 Baseline of $0.70 2014 Fully Diluted EPS $ 1.42 On an adjusted guidance basis: ZENS-related mark to market gains
Slide 8: CenterPoint Summary Financials at a Glance
CenterPoint Summary Financials at a Glance as of Dec. 31, 2014 1. Excludes revenue from Transition and system restoration bond companies of $566 MM 2. Excludes Transition and Restoration Bonds March 2015 3. Excludes operating income from Transition and Restoration Bond companies of $118 MM investors
Slide 9: Houston Electric: Transmission & Distribution (T&D) Utility
Houston Electric: Transmission & Distribution (T&D) Utility March 2015 investors.centerpointenergy.com 9
Slide 10: Houston Electric: Overview
Houston Electric: Overview Electric T&D operating income for 2014 was $477 million as compared to $474 million in 2013 ~2.3millionmeteredcustomers;~5,000miles² (12,900km²) in andaroundHouston,Texas Dec. 2014 average residential electric price in TX: $0.118/kwh¹ Usage per customer ~30% higher than th
Slide 11: Houston Economy: Diverse and Growing
Houston Economy: Diverse and Growing 3rd highest concentration of Fortune 500 company headquarters in US (26) Over the past 10 years and compared to the 10 largest U.S. cities, Houstoncreated the most jobs (645,000+), had the highest job growth CAGR, and made up 8% of all U.S. jobs created $30.5 bil
Slide 12: Houston Economy: Outpacing the Nation
Houston Economy: Outpacing the Nation Economy Drives Continued 2% Customer Growth Source: Freeportlng.com 39th largest metropolitan economy in the world² Industrial growth, such as the Freeport Largest absolute population growth of US cities LNG terminal above, and population from July 2012 –July 20
Slide 13: Houston Electric’s Capital Investment Continues to Grow
Houston Electric’s Capital Investment Continues to Grow $4.4 Billion 20152019 – Capital Plan Capital Plan Includes: BrazosValleyConnection– Highvoltagetransmissionline¹ Reliability/Resiliency – Intelligentgrid Technology– AdvancedMeteringSystem,CustomerService Platform CustomerGrowth– customermetera
Slide 14: Gas Operations
Gas Operations March 2015 investors.centerpointenergy.com 14
Slide 15: Gas Operations: Overview
Gas Operations: Overview NATURALGASUTILITIES Six state footprint with vibrant metropolitan areas of Houston and Minneapolis Nearly 3.4 million customers;th5largest gas utility in the U.S. Earning at or near allowed returns; aggregated authorized ROE: 10% Average Rate Base in 2014 of $2.1 billion Cus
Slide 16: Natural Gas Utilities
Natural Gas Utilities Typical cost of natural gas to CNP residential customer Gas utilities are regulated at state and/or local level Most gas utilities collect a fixed monthly customer charge and a volumetric variable charge for delivering gas to customers Conservation improvement programs offered
Slide 17: Natural Gas Utilities’ Capital Investment Continues to Grow
Natural Gas Utilities’ Capital Investment Continues to Grow $2.7 Billion 20152019 – Capital Plan Capital Plan Includes: Replacingaginginfrastructure– castiron, plastic Customergrowth investment– customeradditions System-wide Automated Meter Reading; 3.4 million meters Using horizontal directional dr
Slide 18: Midstream Investments
Midstream Investments March 2015 investors.centerpointenergy.com 18
Slide 19: Committed to Midstream Excellence
Committed to Midstream Excellence Enable Midstream Partners is a joint venture formed in May 2013 that includes CenterPoint Energy, Inc.’s legacy interstate pipelines and field services businesses and the midstream business of Enogex LLC, a previous subsidiary of OGE Energy Corp. It is managed by a
Slide 20: Enable Midstream Highlights
Extract from Enable Midstream Partners’ March 4, 2015 Investor Presentation Enable Midstream Highlights Integrated suite of gathering, processing, transportation and storage assets with a high degree of interconnectivity between assets and end markets Significant fee-based and demand-fee margin Long
Slide 21: Well-Positioned for Today’s Environment
Extract from Enable Midstream Partners’ March 4, 2015 investor presentation Well-Positioned for Today’s Environment Investment grade ratings, low leverage and substantial liquidity with a 2.9x debt-to-Adjusted EBITDA ratio¹ and $1.1 billion in revolver capacity² as of December 31, 2014 Significant f
Slide 22: Improving Customer Satisfaction while Reducing Carbon Emissions
Improving Customer Satisfaction while Reducing Carbon Emissions March 2015 investors.centerpointenergy.com 22
Slide 23: Electric T&D Utility Technology
Electric T&D Utility Technology: Improving Customer Satisfaction while Reducing Carbon Emissions Absence of generation assets significantly reduces CenterPoint’s carbon footprint compared to integrated utilities One of the first large scale Smart Meter deployments in the U.S. Eliminated need for ove
Slide 24: Electric T&D Utility
Electric T&D Utility Improving Customer Satisfaction while Reducing Carbon Emissions Hike and Bike trails along our transmission corridors within Source: Philips, Roadstar GPLS Houston LED streetlight project: 173,000 street lights over 5 years Awarded the Tree Line USA th designation for 10 consecu
Slide 25: Natural Gas Utilities
Natural Gas Utilities: Improving Customer Satisfaction while Reducing Carbon Emissions CNP is a first-mover in new gas leak Drive-by Advanced Meter Pipeline replacement programs, detection technology which will be Technology eliminates the especially cast-iron and bare steel, begin to be deployed ac
Slide 26: Committed to Community Service
Committed to Community Service 223,005 volunteer hours from employees, retirees, family and friends (Valued at more than $5.1 million.) $5.6 million in total corporate charitable contributions $2.8 million in corporate/employee contributions to United Way in more than 94 United Way offices across th
Slide 27: Additional Reference Materials
Additional Reference Materials Category Reference Material Link Financial Information Quarterly Financial Tables Debt & Maturity Schedules http://investors.centerpointenergy.com/highlights.cfm Equity Return Amortization Schedules Supplemental Year End Materials Regulatory Information State Commissio
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