Centerpoint Energy, Inc (holding Co) · NYSE:CNP

Centerpoint Energy, Inc (holding Co) — Q2 2023 Earnings Presentation

21 slides from Centerpoint Energy, Inc (holding Co)'s earnings presentation, Jul 27, 2023

  1. Slide 1: Second Quarter 2023 Investor Update

    Continuing to execute on our path to PREMIUM SECOND QUARTER 2023 INVESTOR UPDATE July 27, 2023

  2. 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

  3. Slide 3: Premium Value Proposition: Tracking Delivery

    Premium Value Proposition: Tracking Delivery CNP Value Long-Term Plan Deliverables Progress Proposition 13 quarters of Delivered non-GAAP EPS(1) of $0.28 in Q2 2023 despite higher interest rate environment, milder weather and continued inflationary pressures  meeting/exceeding expectations Sustaina

  4. Slide 4: Takeaways

    Takeaways... Second Quarter Results; Reaffirming 2023 Guidance Delivered non-GAAP EPS(1) of $0.28 for the second quarter; Reaffirming 2023 full-year guidance of $1.48-$1.50 non-GAAP EPS; Continue to target 8% non-GAAP EPS growth for 2024 and the mid-to-high range of 6%-8% annually from 2025 to 2030(

  5. Slide 5: Legislative Outcomes

    Legislative Outcomes First Period of Bill # & Description High-level Description Expected Benefit Indiana HB 1420 - Electric Transmission Right-of-first-refusal for transmission lines. TBD Facilities HB 1417 - Utility Deferred Costs & Allows a utility to defer costs and create a regulatory asset for

  6. Slide 6: Key Regulatory Updates

    Key Regulatory Updates…. Rate Case Update(1) Interim Regulatory Mechanism Update (Cont’d)  Texas Gas  DCRF (Houston Electric)  Now plan to file rate case in November of this year  Filed in April 2023 with ~$163MM revenue requirement, increase of $85MM over last year  Houston Electric  Filed fo

  7. Slide 7: Regulatory Schedule

    Regulatory Schedule Upcoming Rate Case Activity ROE / Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Equity Ratio ’23 Rate Base(2) TX (E) 2nd TCOS Filing / 2nd DCRF Filing 9.40% / 42.5% $12.0B IN (E) GRC 10.40% / 43.5% $2.0B TX (G) GRC 9.64% / 55.5%(1) $2.0B MN (G) GRC 9.39% / 51.0% $2.0B N. IN (G)

  8. Slide 8: Q2 2023 v Q2 2022 Non-GAAP EPS Primary Drivers

    Q2 2023 v Q2 2022 Non-GAAP EPS (1) Primary Drivers Ongoing Cost Growth and Rate Management & Recovery Weather / Usage Interest Expense Other Electric Electric Electric $0.02 Other (2) $0.01 Growth $0.04 $0.01 O&M $0.02 Tax $0.05 Rate Gas Gas recovery $0.02 $0.01 O&M Gas Interest Expense $0.

  9. Slide 9: Continued Focus on Balance Sheet

    Continued Focus on Balance Sheet Floating Rate Exposure FFO / Debt - Moody’s methodology (1) Q4 2022 Q1 2023 Q2 2023 $5.0 $4.5B Floating 15.4% 14.2% 13.9% 27% of total $0.1B SIGECO Target 14% - 15% FFO/Debt Thru 2030… $4.0 Balance ($ in Billions) $1.9B CERC $3.0 $2.6B $2.4B $0.1B 14% of total $0.5B

  10. Slide 10: Capital Expenditures by Segment

    Capital Expenditures by Segment…. Current 5-Yr Plan(1) 10-Yr Plan(2) Through 2030 Potential Incremental Capital FY 1Q 2Q FY 5-YR 10-YR of ~$2.6B • Increased & accelerated 2022 2023 2023 2023E(3) Plan Plan C&I electrification (4) • Accelerated EV adoption Electric ~$3.1B ~$0.8B ~$0.7B ~$2.3B $13.3B $

  11. Slide 11: Contacts

    Contacts Jackie Richert Vice President Corporate Planning, Investor Relations and Treasurer 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. (713) 207

  12. Slide 12: Appendix

    e CenterPoint. Energy Appendix

  13. Slide 13: 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 new CEHE’s 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Securitization capital O&M plan)

  14. Slide 14: Capital Plan & Regulatory Mechanisms

    Capital Plan & Regulatory Mechanisms ~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 with rate case for timely recovery of reduces customer impact and for

  15. Slide 15: Weather and Throughput Data

    Weather and Throughput Data Electric Natural Gas 2Q 2023 2Q 2022 2023 vs 2022 2Q 2023 2Q 2022 2023 vs 2022 Residential 28 28 0% Residential 9,036 10,003 Throughput Throughput (10)% (in GWh) (in Bcf) Commercial and 91 90 1% Industrial Total 28,009 29,270 (4)% Total 119 118 1% Residential 3,965,118 3,

  16. Slide 16: Generation Project Timeline

    Generation Project Timeline 1 Note: Refer to slide 2 for information on forward-looking statements. 1. Commercial operation is expected as early as end of 2025, however, factors (such as Miso interconnection process) could delay the project into 2026 16

  17. Slide 17: Reconciliation of Consolidated income and diluted EPS (Q2 2023)

    Reconciliation of Consolidated income available to common shareholders and diluted earnings per share (GAAP) to non-GAAP income and non-GAAP diluted earnings per share Quarter Ended June 30, 2023 Dollars in Diluted millions EPS (1) Consolidated income available to common shareholders and diluted EPS

  18. Slide 18: Reconciliation of Consolidated income and diluted EPS (Q2 2022)

    Reconciliation of Consolidated income available to common shareholders and diluted earnings per share (GAAP) to non-GAAP income and non-GAAP diluted earnings per share Quarter Ended June 30, 2022 Dollars in Diluted millions EPS (1) Consolidated income available to common shareholders and diluted EPS

  19. Slide 19: Reconciliation: Net Cash from Operations to Non-GAAP FFO

    Reconciliation: Net Cash Provided by Operating Activities and Total Debt, Net to non-GAAP Funds from Operations (FFO) and non-GAAP Rating Agency Adjusted Debt Twelve month to date ended and as of period ended, respectively ($ in millions) Q4 2022 Q1 2023 Q2 2023 Net cash provided by operating activi

  20. Slide 20: Regulatory Information

    Regulatory Information Information Location Electric  Estimated 2022 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 2022

  21. Slide 21: 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 diluted earnings per share, non-GAAP income, non-GAAP earnings per share (“non-GAAP EPS”), as well as non-GAAP funds from operatio

CenterPoint Energy, Inc (Holding Co) — Q2 2023 Earnings Presentation on 6ix