Centerpoint Energy, Inc (holding Co) · NYSE:CNP
Centerpoint Energy, Inc (holding Co) — Q1 2017 Earnings Presentation
22 slides from Centerpoint Energy, Inc (holding Co)'s earnings presentation, May 5, 2017
Slide 1: 1st Quarter 2017 Earnings Call
May 5, 2017 1st Quarter 2017 Earnings Call Q1 2017 EPS of $0.44 versus $0.36 in Q1 2016 Q1 2017 guidance basis EPS of $0.37 versus $0.32 in Q1 2016 Company reiterates 2017 EPS guidance of $1.25 - $1.33 Potential $250 million increase to the five-year capital plan with Freeport, Texas electric transm
Slide 2: Cautionary Statement
Cautionary Statement This presentation and the oral statements made in connection herewith contain statements concerning our expectations, beliefs, plans, objectives, goals, strategies, future operations, events, financial position, earnings, growth, costs, prospects, capital investments or performa
Slide 3: Agenda
Agenda Scott Prochazka – President and CEO First Quarter Results Business Segment Highlights Houston Electric Natural Gas Distribution Energy Services Midstream Investments Full Year Outlook Bill Rogers – Executive Vice President and CFO Business Segment Performance Utility Operations EPS Drivers Co
Slide 4: First Quarter 2017 Performance
First Quarter 2017 Performance (1) Refer to slide 21 for reconciliation to GAAP measures and slide 2 for information on non-GAAP measures (2) Excluding ZENS and CES mark-to-market adjustments (3) Primarily due to the annual true-up of transition charges correcting for over-collections that occurred
Slide 5: Electric Transmission and Distribution Highlights
Electric Transmission and Distribution Highlights TDU core operating income was $58 million in Q1 2017 compared to $59 million in Q1 2016 Added more than 49,000 electric customers year over year, representing 2% customer growth Throughput increased 3% from Q1 2016 to Q1 2017 TCOS filing for $7.8 mil
Slide 6: Natural Gas Distribution Highlights
Natural Gas Distribution Highlights Natural Gas Distribution operating income was $164 million in Q1 2017 compared to $160 million in Q1 2016 Added more than 28,000 natural gas distribution customers year-over-year, representing 1% customer growth Houston/Texas Coast rate case settlement includes an
Slide 7: Energy Services Highlights and Outlook
Energy Services Highlights and Outlook Q1 2017 Operating Income Operating income was $20 million in Q1 2017 compared to $15 million in Q1 2016, excluding a mark-to-market gain of $15 million and loss of $9 million, respectively Business Outlook Energy Services projected to contribute $45 - $55 milli
Slide 8: Highlights from Enable Midstream's Earnings Call on May 3, 2017
Highlights from Enable Midstream’s Earnings Call on May 3, 2017 Source: Enable Midstream Partners, May 3, 2017, Press Release and Q1 Earnings Call. Please refer to these materials for an overview of Enable’s Q1 2017 performance Announcing Project Wildcat, providing premium market outlets for growing
Slide 9: 2017 Full Year Outlook
2017 Full Year Outlook Utility rate relief and continued customer growth Increased contribution from Energy Services, partly attributable to recent acquisitions Increased earnings per Enable Midstream Partners’ forecast (2) Anticipate 2017 EPS growth will be driven by: * 2017 Guidance of $1.25 - $1.
Slide 10: Agenda
Scott Prochazka – President and CEO First Quarter Results Business Segment Highlights Houston Electric Natural Gas Distribution Energy Services Midstream Investments Full Year Outlook Bill Rogers – Executive Vice President and CFO Business Segment Performance Utility Operations EPS Drivers Consolida
Slide 11: Electric Transmission and Distribution Operating Income Drivers
Electric Transmission and Distribution Operating Income Drivers Q1 2016 vs Q1 2017 (1) Houston Electric’s customer count increased by 49,409 from 2,364,784 as of March 31, 2016 to 2,414,193 as of March 31, 2017 (2) Q1 2016 TDU core operating income represents total segment operating income of $83 mi
Slide 12: Natural Gas Distribution Operating Income Drivers
Natural Gas Distribution Operating Income Drivers Q1 2016 vs Q1 2017 (1) Natural Gas Distribution’s customer count increased by 28,672 from 3,417,875 as of March 31, 2016 to 3,446,547 as of March 31, 2017 (2) Rate increases of $13 million, primarily from the Texas GRIP filing of $5 million and the A
Slide 13: Utility Operations Adjusted Diluted EPS Drivers
Utility Operations Adjusted Diluted EPS Drivers Q1 2016 vs Q1 2017 (Guidance Basis) (1) Excludes equity return; please refer to slide 20 for more detail on core operating income (2) Includes Q1 2017 income from investment in Enable Midstream Series A Preferred Units of $9 million and interest expens
Slide 14: Consolidated Adjusted Diluted EPS Drivers
Consolidated Adjusted Diluted EPS Drivers Q1 2016 vs Q1 2017 (Guidance Basis) Utility Operations Midstream Investments $0.32 $0.37 Midstream Investments Utility Operations (1) See previous slide (2) Uses an ownership percentage of 55.4% for Q1 2016 and 54.1% for Q1 2017 (3) Fair value adjustments fo
Slide 15: Investment and Financing
Investment and Financing 2017 Investment and Financing Planned capital investment of approximately $1.5 billion (1) Net incremental borrowing anticipated of $200 - $500 million Equity issuance not anticipated Guidance EPS growth of 8% to 15% projected to reduce the 2017 payout ratio to be in the ran
Slide 16: Agenda
Scott Prochazka – President and CEO First Quarter Results Business Segment Highlights Houston Electric Natural Gas Distribution Energy Services Midstream Investments Full Year Outlook Bill Rogers – Executive Vice President and CFO Business Segment Performance Utility Operations EPS Drivers Consolida
Slide 17: Electric Transmission and Distribution Q1 2017 Regulatory Update
Electric Transmission and Distribution Q1 2017 Regulatory Update Mechanism Docket # Annual Increase (1) ($ in millions) Filing Date Effective Date Approval Date Additional Information DCRF 47032 $44.6 April 2017 TBD TBD Based on an increase in eligible distribution-invested capital for 2016 of $479
Slide 18: Q1 2017 Regulatory Update
Natural Gas Distribution Q1 2017 Regulatory Update Jurisdiction Mechanism Docket # Annual Increase (1) ($ in millions) Filing Date Effective Date Approval Date Additional Information South Texas and Beaumont/East Texas (RRC) GRIP 10618, 10619 $7.6 March 2017 July 2017 TBD Based on net change in inve
Slide 19: Q1 2017 Regulatory Update
Natural Gas Distribution Q1 2017 Regulatory Update Jurisdiction Mechanism Docket # Annual Increase (1) ($ in millions) Filing Date Effective Date Approval Date Additional Information Minnesota (MPUC) Decoupling G008/GR-13-316 $26.2 September 2016 February 2017 March 2017 Reflects revenue under recov
Slide 20: Reconciliation: Operating Income to Core Operating Income on a Guidance Basis
Reconciliation: Operating Income to Core Operating Income on a Guidance (Non-GAAP) Basis Operating Income ($ in millions) Quarter Ended March 31, 2017 Quarter Ended March 31, 2016 DifferenceFav/(Unfav) Electric Transmission and Distribution $78 $83 $-5 Transition and System Restoration Bond Companie
Slide 21: Reconciliation: Net Income and Diluted EPS to Adjusted Net Income and EPS
Reconciliation: Net Income and Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS Used in Providing Annual Earnings Guidance
Slide 22: Reconciliation: Net Income and Diluted EPS to Adjusted Net Income and EPS
Reconciliation: Net Income and Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS Used in Providing Annual Earnings Guidance