Centerpoint Energy, Inc (holding Co) · NYSE:CNP
Centerpoint Energy, Inc (holding Co) — Q2 2022 Earnings Presentation
21 slides from Centerpoint Energy, Inc (holding Co)'s earnings presentation, Aug 2, 2022
Slide 1: Second Quarter 2022 Investor Update
Establishing a path towards PREMIUM T h r o u g h S u s t a i n a b l e G r o w t h … SECOND QUARTER 2022 INVESTOR UPDATE AUGUST 2, 2022
Slide 2: Cautionary Statement and Other Disclaimers
Cautionary Statement and Other Disclaimers 2 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 st
Slide 3: Achieved Premium Value Proposition: Tracking Delivery
Achieved Premium Value Proposition: Tracking Delivery Raising 2022 full-year guidance to $1.37-$1.39 non-GAAP EPS – 9% growth over 2021 at the midpoint; 5th raise under this management team Executing our 5-year capital plan of $19.3B (2) , and executing 10-year Capital Plan of $40B+ (2) , update exp
Slide 4: Pure-Play Regulated Utility
4 Pure-Play Regulated Utility(5) Over 95% of consolidated earnings are from regulated utility operations (5) with a projected rate base composition that is ~62% electric. Execution of Generation Transition Plan Filed for securitization proceeds of $360M related to AB Brown coal plant in May; receive
Slide 5: Customer Affordability – Houston Electric
$43 $48(3) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022E Average Monthly CEHE Charges (per 1,000 kWh) Customer Affordability – Houston Electric 5 Rates (Based on new capital plan) Customer Growth Structural Headroom O&M Discipline Effective Rates Future Bill Mitigants 1-2% annual customer growt
Slide 6: Q2 2022 vs Q2 2021 Non-GAAP EPS
Utility $0.28 Consolidated $0.31 $0.03 $0.02 $0.02 $0.00 Midstream (2) $0.08 Q2 2021 Non-GAAP EPS Q2 2022 Non-GAAP EPS Q2 2022 v Q2 2021 Non-GAAP EPS(1) Primary Drivers Note: Refer to slide 2 for information on forward-looking statements and slide 21 for information on non-GAAP Utility EPS, non-GAAP
Slide 7: Capital Expenditures by Segment
Capital Expenditures by Segment…. FY 1Q 2Q FY 5-YR 10-YR 2021 2022 2022 2022E (3) Plan Plan Electric (4) ~$2.2B ~$0.7B ~$0.6B ~$2.7B $11.5B $23B+ Natural Gas ~$1.4B ~$0.3B ~$0.4B ~$1.6B $7.7B $16B+ Corporate and other ~$40M ~$2M ~$1M ~$10M $0.1B $0.2B Total Capital Expenditures (4) ~$3.6B ~$1.0B ~$1
Slide 8: Rate Case Update
Rate Case Update ▪ Minnesota Rate Case Settlement: ▪ $48.5M Revenue increase ▪ 9.39% ROE ▪ Subject to MPUC review; Order expected by end of 2022 ▪ $42M Interim rates went into effect 1/1/2022 ▪ Texas DCRF Settlement: ✓ Filed in April with ~$146M Net Revenue Requirement ✓ ~$78M traditional DCRF settl
Slide 9: VUHI Restructuring Update
✓ VUHI restructuring, combined with recent strategic proceeds, aligns with CNP goal of parent-to-total debt target of ~20% ✓ Greater scale and credit profile of CERC should benefit customers through lower future financing costs over the long term ✓ Paid ~$700M of parent level debt now financed at CE
Slide 10: Contacts
Contacts Jackie Richert Vice President Investor Relations and Treasurer Tel. (713) 207 – 9380 jackie.richert@centerpointenergy.com Ben Vallejo Director Investor Relations Tel. (713) 207 – 5461 ben.vallejo@centerpointenergy.com General Contact Tel. (713) 207 – 6500 https://investors.centerpointenergy
Slide 11: Appendix
e CenterPoint. Energy Appendix
Slide 12: Regulatory Schedule
Regulatory Schedule Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec TX (E) IN (E) TX (G) MN (G) (Rate case) N. IN (G) OH (G) S. IN (G) LA (G) MS (G) No rate case until late ’23 / early ‘24 – Two TCOS filings, DCRF filed in April No rate case until late 2023 No rate case until late 2023 IT RT EH RB F
Slide 13: Weather and Throughput Data
Weather and Throughput Data Note: Data as of 6/30/2022 (1) End of period number of metered customers; Natural Gas throughput in Q2 2021 excluding Arkansas and Oklahoma was 104 Bcf, representing a 13% increase year over year. Natural gas metered customers in Q2 2021 excluding Arkansas and Oklahoma wa
Slide 14: Divested AR/OK LDC EPS History
Divested AR/OK LDC EPS History 14 Q1 Q2 Q3 Q4 FY 2022 Impact Non-GAAP EPS Impact (0.03) 0.00 0.03 (0.02) ($0.02) • On Analyst Day, we called out $0.02 for the full year impact to earnings • Divesting these assets has no anticipated impact to our 8% non-GAAP EPS growth for 2022 Note: Refer to slide 2
Slide 15: Indiana Generation Project Updates
Indiana Generation Project Updates 15 59% 3% 38% T&D Coal Gen Natural Gas Projected Composition of Rate Base Project Structure Capacity (MW) Targeted In-service Status In Execution: Gas CT Ownership 460 Q4 2024 Approved Troy Solar Ownership 50 Q1 2021 In-service Posey Solar Ownership 200 Q4 2023 App
Slide 16: Reconciliation: Income and Diluted EPS to non-GAAP
Reconciliation: Income (Loss) and Diluted Earnings (Loss) per share to non-GAAP Income and non-GAAP Diluted EPS used in providing annual earnings guidance (1) Quarterly diluted EPS on both a GAAP and non-GAAP basis are based on the weighted average number of shares of common stock outstanding during
Slide 17: Reconciliation: Income and Diluted EPS to non-GAAP
Reconciliation: Income (Loss) and Diluted Earnings (Loss) per share to non-GAAP Income and non-GAAP Diluted EPS used in providing annual earnings guidance (1) Quarterly diluted EPS on both a GAAP and non-GAAP basis are based on the weighted average number of shares of common stock outstanding during
Slide 18: Reconciliation: Income and Diluted EPS to non-GAAP
Reconciliation: Income (Loss) and Diluted Earnings (Loss) per share to non-GAAP Income and non-GAAP Diluted EPS used in providing annual earnings guidance (1) Quarterly diluted EPS on both a GAAP and non-GAAP basis are based on the weighted average number of shares of common stock outstanding during
Slide 19: Reconciliation: Income and Diluted EPS to non-GAAP
Reconciliation: Income (Loss) and Diluted Earnings (Loss) per share to non-GAAP Income and non-GAAP Diluted EPS used in providing annual earnings guidance (1) Quarterly diluted EPS on both a GAAP and non-GAAP basis are based on the weighted average number of shares of common stock outstanding during
Slide 20: Regulatory Information
Regulatory Information Information Location Electric ▪ Estimated 2021 year-end rate base by jurisdiction ▪ Authorized ROE and capital structure by jurisdiction ▪ Definition of regulatory mechanisms ▪ Projected regulatory filing schedule Regulatory Information – Electric Natural Gas ▪ Estimated 2021
Slide 21: Additional Information
Additional information 21 Use of Non-GAAP Financial Measures In this presentation and the oral statements made in connection herewith, CenterPoint Energy presents, based on diluted earnings per share, non-GAAP income, (in 2021) non-GAAP Utility earnings per share (“Utility EPS”) and (in 2022) non-GA