CenterPoint Energy increases quarterly dividend 4 percent to 27.75 cents per shar

Houston – Dec. 13, 2017 - CenterPoint Energy, Inc. (NYSE: CNP) today announced that its Board of Directors declared a regular quarterly cash dividend of $0.2775 per share of common stock, payable on March 8, 2018, to shareholders of record at the close of business on February 15, 2018. This represents approximately a 4 percent increase from the previous quarterly dividend of $0.2675, and if annualized, would equate to $1.11 per share.

"I am pleased that for the thirteenth consecutive year, CenterPoint Energy is raising its dividend," said Scott M. Prochazka, president and chief executive officer of CenterPoint Energy.  "This increase demonstrates a strong commitment to our shareholders and the confidence the board of directors has in our ability to deliver sustainable earnings and cash flow."

CenterPoint Energy will begin utilizing a standardized payment schedule for future dividends with dividends payable on the second Thursday of March, June, September and December to shareholders of record at the close of business on the third Thursday of February, May, August and November.   

CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution and energy services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. The company also owns 54.1 percent of the common units representing limited partner interests in Enable Midstream Partners, a publicly traded master limited partnership it jointly controls with OGE Energy Corp., which owns, operates and develops natural gas and crude oil infrastructure assets. With more than 7,700 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, please visit www.CenterPointEnergy.com.

This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual events and results may differ materially from those expressed or implied by these forward-looking statements. Any statements in this news release regarding future events, such as annualized dividends per share, future earnings and cash flow, projected dividend record and payment dates, and any other statements that are not historical facts are forward-looking statements. Each forward-looking statement contained in this news release speaks only as of the date of this release.

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2017-12-13T06:00:00Z
CenterPoint Energy reports third quarter 2017 earnings of $0.39 per diluted share; $0.38 per diluted share on a guidance basis

CenterPoint Energy anticipates achieving at or near the high end of the $1.25 - $1.33 guidance range for 2017; Company continues to target upper end of 4-6% year-over-year earnings growth range for 2018

Houston - Nov. 3, 2017 - CenterPoint Energy, Inc. (NYSE: CNP) today reported net income of $169 million, or $0.39 per diluted share, for the third quarter of 2017, compared with net income of $179 million, or $0.41 per diluted share for the same period of the prior year. On a guidance basis, third quarter 2017 earnings were $0.38 per diluted share, consisting of $0.28 from utility operations and $0.10 from midstream investments. Third quarter 2016 earnings on a guidance basis were $0.41 per diluted share, consisting of $0.31 from utility operations and $0.10 from midstream investments. 

Operating income for the third quarter of 2017 was $279 million, compared with $284 million in the third quarter of the prior year. Equity income from midstream investments was $68 million for the third quarter of 2017, compared with $73 million for the third quarter of the prior year.

"We had a solid third quarter, putting us on track to deliver at or near the high end of our full year guidance range," said Scott M. Prochazka, president and chief executive officer of CenterPoint Energy. "Our ongoing focus on reliability and resilience enabled our system to perform well in the face of Hurricane Harvey."

Business Segments

Electric Transmission & Distribution

The electric transmission & distribution segment reported operating income of $247 million for the third quarter of 2017, consisting of $229 million from the regulated electric transmission & distribution utility operations (TDU) and $18 million related to securitization bonds. Operating income for the third quarter of 2016 was $257 million, consisting of $234 million from the TDU and $23 million related to securitization bonds.

Operating income for the TDU benefited primarily from rate relief and customer growth. These benefits were more than offset by lower usage largely due to a return to more normal weather, lower equity return and lower miscellaneous revenues, including right of way. 

Natural Gas Distribution

The natural gas distribution segment reported operating income of $19 million for the third quarter of 2017, compared with $22 million for the same period of 2016. Operating income benefited primarily from rate relief and customer growth.  These benefits were more than offset by higher depreciation and amortization expense, lower usage primarily due to the timing of a decoupling normalization adjustment and higher operations and maintenance expenses. 

Energy Services

The energy services segment reported operating income of $7 million for the third quarter of 2017, which included a mark-to-market gain of $2 million. In comparison, operating income for the same period in 2016 was $5 million, which included a mark-to-market loss of $2 million.  Excluding mark-to-market adjustments, operating income was $5 million for the third quarter of 2017 compared with $7 million for the same period in 2016.  The $2 million decrease in operating income was primarily due to expenses related to the acquisition and integration of Atmos Energy Marketing.

Midstream Investments

The midstream investments segment reported $68 million of equity income for the third quarter of 2017, compared with $73 million in the third quarter of the prior year. 

Earnings Outlook

On a consolidated basis, CenterPoint Energy anticipates earnings at or near the high end of its 2017 guidance range of $1.25 - $1.33 per diluted share. 

The utility operations guidance range considers performance to date and certain significant variables that may impact earnings, such as weather, regulatory and judicial proceedings, throughput, commodity prices, effective tax rates, and financing activities.

In providing this guidance, the company uses a non-GAAP measure of adjusted diluted earnings per share that does not consider other potential impacts, such as changes in accounting standards or unusual items, earnings or losses from the change in the value of the ZENS securities and the related stocks, or the timing effects of mark-to-market accounting in the company's Energy Services business. 

In providing guidance for midstream investments, the company assumes ownership of 54.1 percent of the common units representing limited partner interests in Enable Midstream and includes the amortization of CenterPoint Energy's basis differential in Enable Midstream. CenterPoint Energy's guidance takes into account such factors as Enable Midstream's most recent public outlook for 2017 dated Nov. 1, 2017, and effective tax rates. The company does not include other potential impacts, such as any changes in accounting standards or Enable Midstream's unusual items. 

Filing of Form 10-Q for CenterPoint Energy, Inc.

Today, CenterPoint Energy, Inc. filed with the Securities and Exchange Commission (SEC) its Quarterly Report on Form 10-Q for the period ended Sept. 30, 2017. A copy of that report is available on the company's website, under the Investors section. Other filings the company makes with the SEC and certain documents relating to its corporate governance can also be found under the Investors section.

Webcast of Earnings Conference Call

CenterPoint Energy's management will host an earnings conference call on Friday, Nov. 3, 2017, at 10:00 a.m. Central time/11:00 a.m. Eastern time. Interested parties may listen to a live audio broadcast of the conference call on the company's website under the Investors section. A replay of the call can be accessed approximately two hours after the completion of the call and will be archived on the website for at least one year.

 

CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution and energy services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. The company also owns 54.1 percent of the common units representing limited partner interests in Enable Midstream Partners, a publicly traded master limited partnership it jointly controls with OGE Energy Corp., which owns, operates and develops natural gas and crude oil infrastructure assets. With more than 7,700 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, please visit www.CenterPointEnergy.com.

 

This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. You are cautioned not to place undue reliance on any forward-looking statements. Actual events and results may differ materially from those expressed or implied by these forward-looking statements. Any statements in this news release regarding future earnings, and future financial performance and results of operations, including, but not limited to earnings guidance, targeted dividend growth rate and any other statements that are not historical facts are forward-looking statements. Each forward-looking statement contained in this news release speaks only as of the date of this release. Factors that could affect actual results include (1) the performance of Enable Midstream Partners, LP (Enable), the amount of cash distributions CenterPoint Energy receives from Enable, Enable's ability to redeem the Series A Preferred Units in certain circumstances and the value of CenterPoint Energy's interest in Enable, and factors that may have a material impact on such performance, cash distributions and value, including factors such as: (A) competitive conditions in the midstream industry, and actions taken by Enable's customers and competitors, including the extent and timing of the entry of additional competition in the markets served by Enable; (B) the timing and extent of changes in the supply of natural gas and associated commodity prices, particularly prices of natural gas and natural gas liquids (NGLs), the competitive effects of the available pipeline capacity in the regions served by Enable, and the effects of geographic and seasonal commodity price differentials, including the effects of these circumstances on re-contracting available capacity on Enable's interstate pipelines; (C) the demand for crude oil, natural gas, NGLs and transportation and storage services; (D) environmental and other governmental regulations, including the availability of drilling permits and the regulation of hydraulic fracturing; (E) recording of non-cash goodwill, long-lived asset or other than temporary impairment charges by or related to Enable; (F) changes in tax status; (G) access to debt and equity capital; and (H) the availability and prices of raw materials and services for current and future construction projects; (2) industrial, commercial and residential growth in CenterPoint Energy's service territories and changes in market demand, including the effects of energy efficiency measures and demographic patterns; (3) timely and appropriate rate actions that allow recovery of costs and a reasonable return on investment; (4) future economic conditions in regional and national markets and their effect on sales, prices and costs; (5) weather variations and other natural phenomena, including the impact of severe weather events on operations and capital; (6) state and federal legislative and regulatory actions or developments affecting various aspects of CenterPoint Energy's and Enable's businesses, including, among others, energy deregulation or re-regulation, pipeline integrity and safety and changes in regulation and legislation pertaining to trade, health care, finance and actions regarding the rates charged by our regulated businesses; (7) tax reform and legislation; (8) CenterPoint Energy's ability to mitigate weather impacts through normalization or rate mechanisms, and the effectiveness of such mechanisms; (9) the timing and extent of changes in commodity prices, particularly natural gas, and the effects of geographic and seasonal commodity price differentials; (10) problems with regulatory approval, construction, implementation of necessary technology or other issues with respect to major capital projects that result in delays or in cost overruns that cannot be recouped in rates; (11) local, state and federal legislative and regulatory actions or developments relating to the environment, including those related to global climate change; (12) the impact of unplanned facility outages; (13) any direct or indirect effects on CenterPoint Energy's facilities, operations and financial condition resulting from terrorism, cyber-attacks, data security breaches or other attempts to disrupt CenterPoint Energy's businesses or the businesses of third parties, or other catastrophic events such as fires, earthquakes, explosions, leaks, floods, droughts, hurricanes, pandemic health events or other occurrences; (14) CenterPoint Energy's ability to invest planned capital and the timely recovery of CenterPoint Energy's investment in capital; (15) CenterPoint Energy's ability to control operation and maintenance costs; (16) actions by credit rating agencies; (17) the sufficiency of CenterPoint Energy's insurance coverage, including availability, cost, coverage and terms; (18) the investment performance of CenterPoint Energy's pension and postretirement benefit plans; (19) commercial bank and financial market conditions, CenterPoint Energy's access to capital, the cost of such capital, and the results of CenterPoint Energy's financing and refinancing efforts, including availability of funds in the debt capital markets; (20) changes in interest rates or rates of inflation; (21) inability of various counterparties to meet their obligations to CenterPoint Energy; (22) non-payment for CenterPoint Energy's services due to financial distress of its customers; (23) the extent and effectiveness of CenterPoint Energy's risk management and hedging activities, including, but not limited to, its financial hedges and weather hedges; (24) timely and appropriate regulatory actions allowing securitization or other recovery of costs associated with Hurricane Harvey and any future hurricanes or natural disasters; (25) CenterPoint Energy's or Enable's potential business strategies and strategic initiatives, including restructurings, joint ventures and acquisitions or dispositions of assets or businesses (including a reduction of CenterPoint Energy's interests in Enable, whether through its election to sell the common units it owns in the public equity markets or otherwise, subject to certain limitations), which CenterPoint Energy cannot assure will be completed or will have the anticipated benefits to it or Enable; (26) acquisition and merger activities involving CenterPoint Energy or its competitors; (27) CenterPoint Energy's or Enable's ability to recruit, effectively transition and retain management and key employees and maintain good labor relations; (28) the ability of GenOn Energy, Inc. (formerly known as RRI Energy, Inc., Reliant Energy and RRI), a wholly-owned subsidiary of NRG Energy, Inc. (NRG), and its subsidiaries, currently the subject of bankruptcy proceedings, to satisfy their obligations to CenterPoint Energy, including indemnity obligations; (29) the outcome of litigation; (30) the ability of retail electric providers (REPs), including REP affiliates of NRG and Vistra Energy Corp., formerly known as TCEH Corp., to satisfy their obligations to CenterPoint Energy and its subsidiaries; (31) changes in technology, particularly with respect to efficient battery storage or the emergence or growth of new, developing or alternative sources of generation; (32) the timing and outcome of any audits, disputes and other proceedings related to taxes; (33) the effective tax rates; (34) the effect of changes in and application of accounting standards and pronouncements; and (35) other factors discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2016, as well as in CenterPoint Energy's Quarterly Report on Form 10-Q for the quarter ended March 31, 2017, June 30, 2017 and September 30, 2017 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

Use of Non-GAAP Financial Measures by CenterPoint Energy in Providing Guidance

In addition to presenting its financial results in accordance with generally accepted accounting principles (GAAP), including presentation of net income and diluted earnings per share, CenterPoint Energy also provides guidance based on adjusted net income and adjusted diluted earnings per share, which are non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's historical or future financial performance that excludes or includes amounts that are not normally excluded or included in the most directly comparable GAAP financial measure. CenterPoint Energy's adjusted net income and adjusted diluted earnings per share calculation excludes from net income and diluted earnings per share, respectively, the impact of ZENS and related securities and mark-to-market gains or losses resulting from the company's Energy Services business.  CenterPoint Energy is unable to present a quantitative reconciliation of forward looking adjusted net income and adjusted diluted earnings per share because changes in the value of ZENS and related securities and mark-to-market gains or losses resulting from the company's Energy Services business are not estimable.

Management evaluates the company's financial performance in part based on adjusted net income and adjusted diluted earnings per share.  We believe that presenting these non-GAAP financial measures enhances an investor's understanding of CenterPoint Energy's overall financial performance by providing them with an additional meaningful and relevant comparison of current and anticipated future results across periods.  The adjustments made in these non-GAAP financial measures exclude items that Management believes does not most accurately reflect the company's fundamental business performance.  These excluded items are reflected in the reconciliation tables of this news release, where applicable. CenterPoint Energy's adjusted net income and adjusted diluted earnings per share non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, net income and diluted earnings per share, which respectively are the most directly comparable GAAP financial measures.  These non-GAAP financial measures also may be different than non-GAAP financial measures used by other companies.

 

2017-11-03T05:00:00Z
CenterPoint Energy declares $0.2675 quarterly dividend

Houston – Oct. 25, 2017 - CenterPoint Energy, Inc.'s. (NYSE: CNP) board of directors today declared a regular quarterly cash dividend of $0.2675 per share of common stock payable on Dec. 8, 2017, to shareholders of record as of the close of business on Nov. 16, 2017.

CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution and energy services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. The company also owns 54.1 percent of the common units representing limited partner interests in Enable Midstream Partners, a publicly traded master limited partnership it jointly controls with OGE Energy Corp., which owns, operates and develops natural gas and crude oil infrastructure assets. With more than 7,700 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, please visit www.CenterPointEnergy.com.

2017-10-25T21:25:00Z
CenterPoint Energy urges customers to stay safe during clean-up

HOUSTON - September 1, 2017 – The safety of our employees and our customers is our top priority. We urge customers to follow the below safety tips as clean-up efforts continue following Hurricane Harvey.

ELECTRIC SAFETY TIPS

Stay away from downed power lines. Be especially mindful of downed lines that could be hidden in flood waters and debris, and treat all downed lines as if they are energized or “live.” Boats being used in high water can expose you to danger from power lines at their normal height. Be aware and stay away. DO NOT attempt to remove a tree limb or other debris from a power line. Once away from the area, call 713-207-2222 and we will respond as soon as it is safe.

Power restoration

• If you find that water has risen above your electrical outlets, you must call a licensed electrician before you turn on the main circuit breaker or turn on the power for any connected appliances, such as televisions, computers and more.

• Your electrician will assess the damage and will then need to ensure that your home’s electrical system is safe to receive power.

• Your electrician may need to either call CenterPoint Energy or direct you to call us at 713-207-2222 to ensure that it is safe to perform electrical work. CenterPoint Energy may temporarily disconnect service to your home to allow work to be performed.

• Even if you or your electrician calls and asks us to remotely disconnect service, there still could be voltage present. Therefore, we will ask the electrician and you to confirm you want us to proceed before going forward, and will remind you to take precautions around your breakers.

• CenterPoint Energy is responsible for and will make repairs to the electric delivery system up to where it connects to your home or business. However, you are responsible for repairs if there is damage to the meter box or weatherhead (where the line enters your home through a pipe).

• If the meter box or weatherhead is damaged, our crews will not be able to re-establish service. If in doubt, contact a licensed electrician now to make an inspection and any necessary repairs.

Appliance and equipment safety

• All electrical appliances and electronic equipment that have been submerged in water must be dried thoroughly for at least one week. Then, you should have them checked by a qualified repair professional before turning them on.

• Do not try to repair a flood-damaged appliance as it could result in electrical shock or death. Attempting to restart it could result in further damage and costly repairs. Page 2 of 2 For more information contact Olivia Ross 713.207.3288 24-hour media access 713.619.5143 For Immediate Release

• If the outside unit of your air conditioning system has been under water, the controls may have mud and water accumulated in them. Have the unit inspected by a qualified air conditioning technician before using it.

• Never connect a portable electric generator or a motor home/RV generator directly to your home’s electrical system during a power outage. Electricity could back feed into the power lines and endanger repair workers.

Call 811 before any digging is started – it’s the law. Striking buried utility lines can cause serious injury or death. Alert participating utility companies, such as electric, gas, cable and phone about planned digging so they can mark the appropriate location of their underground lines. Please be prepared for a longer than usual wait time during the next few weeks, and do not dig until the lines have been marked.

NATURAL GAS SAFETY TIPS

• Do not turn off your natural gas service at the meter; doing so could allow water to enter the natural gas lines.

• Be alert for the smell of natural gas - It smells like rotten eggs. If you do smell natural gas, leave the area immediately on foot and tell others to leave, too.

• Do NOT turn on your lights, smoke, strike a match, use a cell phone or operate anything that might cause a spark, including a flashlight or a generator.

• Do not attempt to turn natural gas valves on or off. Once you are safely away from the area, call 911 and 888-876-5786. Once it is safe, CenterPoint Energy will send a trained service technician.

• If your home was flooded, call a licensed plumber or gas appliance technician to inspect your appliances and gas piping to make sure they are in good operating condition before calling CenterPoint Energy to reconnect service. This includes outdoor gas appliances including pool heaters, gas grills and gas lights.

Call 811 before any digging is started – it’s the law. Striking buried utility lines can cause serious injury or death. Alert participating utility companies, such as electric, gas, cable and phone about planned digging so they can mark the appropriate location of their underground lines. Please be prepared for a longer than usual wait time during the next few weeks, and do not dig until the lines have been marked.

• Be aware of where your natural gas meter is located. As debris is put out for heavy trash pickup, make sure it is placed away from the meter. In many areas the meter may be located near the curb. If debris is near a gas meter, the mechanized equipment used by trash collectors could pull up the meter, damaging it and causing a potentially hazardous situation. If this happens, leave the area immediately and call CenterPoint Energy at 888- 876-5786.

• Visit CenterPointEnergy.com/StormCenter for natural gas safety tips and other resources.

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2017-09-01T05:00:00Z
CenterPoint Energy donates $1.25 million to assist Hurricane Harvey recovery and relief efforts

Houston – Sept. 1, 2017 – CenterPoint Energy today announced that it is committing $1.25 million to Hurricane Harvey recovery and relief efforts. CenterPoint Energy’s contributions include a $250,000 donation each to the American Red Cross for Hurricane Harvey relief efforts, the City of Houston Mayor’s Hurricane Harvey Relief Fund and the United Way of Greater Houston disaster relief efforts.

“Our thoughts are with everyone impacted by this unprecedented catastrophe,” said Scott Prochazka, president and chief executive officer of CenterPoint Energy. “CenterPoint Energy has been a part of these communities for more than 150 years. The safety and well-being of our communities and employees impacted by Hurricane Harvey remain our top priorities.”

CenterPoint Energy is also donating $300,000 to support employees across its service territory significantly impacted by the storm. The company has also established an employee assistance fund, CenterPoint Energy Employees 1st Fund, to collect employee donations and match them up to a total of $200,000. “We take pride in lending a helping hand to those in need, which is a core part of our culture,” added Prochazka.

In addition to the charitable contributions, employee volunteerism is an important part of CenterPoint Energy’s role in communities throughout its service territory. Employee volunteers provide their time and energy to assist with altruistic initiatives. In 2016, employees, retirees and their families and friends contributed 237,500 hours to their communities, and the company donated more than 2,000 grants to qualified nonprofit organizations.

CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution and energy services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. The company also owns 54.1 percent of the common and subordinated units representing limited partner interests in Enable Midstream Partners, a publicly traded master limited partnership it jointly controls with OGE Energy Corp., which owns, operates and develops natural gas and crude oil infrastructure assets. With more than 7,700 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, please visit www.CenterPointEnergy.com.

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2017-09-01T05:00:00Z
August 11 (8/11) serves as a reminder to always call before digging

Houston – Aug. 11, 2017 – Today's date of 8/11 is a reminder for everyone to call the national "Call Before You Dig" number – 811 – prior to any digging project. One free call to 811 before digging can prevent injuries, property damage, service disruption and possible costly fines for damaged infrastructure.

"It doesn't matter where you're digging in your yard; we encourage everyone to always call 811 before any digging project. On this day and throughout the year we continue to remind homeowners and professional contractors alike to call before digging to eliminate the risk of striking an underground utility line," said Joe Berry, director of Damage Prevention for CenterPoint Energy. "The number-one cause of underground utility damage is not digging properly. The only physical way to know what's below is to call and have the utilities buried in your area marked. Not only is it a free call and service, it is also the law."

By calling 811, a homeowner connects to a One Call Center, which then notifies the appropriate utility companies of the homeowner's intent to dig. Professional locators are sent to the requested digging site to mark the approximate locations of underground lines with flags and spray paint, enabling the homeowner to dig safely.

The depth of utility lines varies and there may be multiple utility lines in a common area. Whether it is a small project like planting a tree, or a larger one such as hiring a professional to install a lawn irrigation system, smart digging means calling 811 before each job. For more information, visit call811.com.

CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution and energy services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. The company also owns 54.1 percent of the common and subordinated units representing limited partner interests in Enable Midstream Partners, a publicly traded master limited partnership it jointly controls with OGE Energy Corp., which owns, operates and develops natural gas and crude oil infrastructure assets. With more than 7,700 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, please visit www.CenterPointEnergy.com.

 

2017-08-11T05:00:00Z
CenterPoint Energy, Inc. announces closing of $500 million senior notes offering

Houston – Aug. 10, 2017 - CenterPoint Energy, Inc. (NYSE: CNP) today announced the closing of its offering of $500 million aggregate principal amount of its 2.50 percent senior notes due Sept. 1, 2022. Net proceeds will be for general corporate purposes, including the repayment of a portion of its outstanding commercial paper.

Barclays, Goldman Sachs & Co. LLC, Morgan Stanley and MUFG served as joint bookrunners with TD Securities as senior co-manager. Additionally, Evercore ISI and Ramirez & Co., a diversity and inclusion (D&I) firm, served as co-managers. 

This news release does not constitute an offer to sell, or the solicitation of any offer to buy, any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering would be unlawful.

This news release includes forward-looking statements. Actual events and results may differ materially from those projected.  The statements in this news release regarding the use of proceeds from the offering and other statements that are not historical facts are forward-looking statements. Factors that could affect actual results include, but are not limited to, future financial performance and results of operations, the timing and impact of future regulatory and legislative decisions, weather variations, changes in business plans, financial market conditions and other factors discussed in CenterPoint Energy, Inc.'s Annual Report on Form 10-K for the period ended December 31, 2016, CenterPoint Energy, Inc.'s Quarterly Reports on Form 10-Q for the periods ended March 31, 2017, and June 30, 2017, and CenterPoint Energy's other filings with the Securities and Exchange Commission. A written prospectus may be obtained by visiting EDGAR on the SEC Website at https://www.sec.gov/.

CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution and energy services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. The company also owns 54.1 percent of the common and subordinated units representing limited partner interests in Enable Midstream Partners, a publicly traded master limited partnership it jointly controls with OGE Energy Corp., which owns, operates and develops natural gas and crude oil infrastructure assets. With more than 7,700 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, please visit www.CenterPointEnergy.com.

 

 

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2017-08-11T05:00:00Z
CenterPoint Energy reports second quarter 2017 earnings of $0.31 per diluted share; $0.29 per diluted share on a guidance basis

Strong second quarter performance driven by continued utility growth and rate relief, as well as Midstream Investments performance; CenterPoint Energy reiterates full-year 2017 guidance of $1.25 - $1.33; Company continues to target upper end of 4-6% year-over-year earnings growth range for 2018

Houston – Aug. 3, 2017 - CenterPoint Energy, Inc. (NYSE: CNP) today reported net income of $135 million, or $0.31 per diluted share, for the second quarter of 2017, compared with a net loss of $2 million, or a loss of $0.01 per diluted share for the same period of the prior year. On a guidance basis, second quarter 2017 earnings were $0.29 per diluted share, consisting of $0.20 from utility operations and $0.09 from midstream investments. Second quarter 2016 earnings on a guidance basis were $0.17 per diluted share, consisting of $0.14 from utility operations and $0.03 from midstream investments.

Operating income for the second quarter of 2017 was $223 million, compared with $182 million in the second quarter of the prior year. Equity income from midstream investments was $59 million for the second quarter of 2017, compared with $31 million for the second quarter of the prior year.

“We are very pleased with strong second quarter results,” said Scott M. Prochazka, president and chief executive officer of CenterPoint Energy. “All four of our business segments performed well this quarter.”

 

Business Segments

Electric Transmission & Distribution

The electric transmission & distribution segment reported operating income of $164 million for the second quarter of 2017, consisting of $144 million from the regulated electric transmission & distribution utility operations (TDU) and $20 million related to securitization bonds. Operating income for the second quarter of 2016 was $158 million, consisting of $135 million from the TDU and $23 million related to securitization bonds.

Operating income for the TDU benefited primarily from rate relief and customer growth. These benefits were partially offset by higher depreciation and amortization expense, other taxes and lower equity return.

Natural Gas Distribution

The natural gas distribution segment reported operating income of $37 million for the second quarter of 2017, compared with $20 million for the same period of 2016. Operating income benefited primarily from rate relief, customer growth and favorable usage due to timing of a decoupling adjustment. These benefits were partially offset by higher depreciation and amortization expense and other taxes. In addition, operating income benefited from $10 million of adjustments related to the Texas Gulf rate order, including the recording of a $16 million regulatory asset, and the corresponding reduction in expense, to recover prior post-retirement expenses in future rates, which was partially offset by a $6 million operations and maintenance expense adjustment that is primarily timing related.

Energy Services

The energy services segment reported operating income of $16 million for the second quarter of 2017, which included a mark-to-market gain of $6 million. In comparison, operating income for the same period in 2016 was $-0- , which included a mark-to-market loss of $7 million. Excluding mark-to-market adjustments, operating income was $10 million for the second quarter of 2017, compared with $7 million for the same period in 2016. The $3 million increase in operating income was primarily due to an increase in throughput and number of customers related to the acquisition of Atmos Energy Marketing in 2017.

Midstream Investments

The midstream investments segment reported $59 million of equity income for the second quarter of 2017, compared with $31 million in the second quarter of the prior year.

Earnings Outlook

On a consolidated basis, CenterPoint Energy reaffirms its earnings estimate for 2017 in the range of $1.25 - $1.33 per diluted share.

The utility operations guidance range considers performance to date and certain significant variables that may impact earnings, such as weather, regulatory and judicial proceedings, throughput, commodity prices, effective tax rates, and financing activities.

In providing this guidance, the company uses a non-GAAP measure of adjusted diluted earnings per share that does not consider other potential impacts, such as changes in accounting standards or unusual items, earnings or losses from the change in the value of the ZENS securities and the related stocks, or the timing effects of mark-to-market accounting in the company’s Energy Services business.

In providing guidance for midstream investments, the company assumes ownership of 54.1 percent of the common and subordinated units representing limited partner interests in Enable Midstream and includes the amortization of CenterPoint Energy’s basis differential in Enable Midstream. CenterPoint Energy’s guidance takes into account such factors as Enable Midstream's most recent public outlook for 2017 dated Aug. 1, 2017, and effective tax rates. The company does not include other potential impacts, such as any changes in accounting standards or Enable Midstream’s unusual items.

Filing of Form 10-Q for CenterPoint Energy, Inc.

Today, CenterPoint Energy, Inc. filed with the Securities and Exchange Commission (SEC) its Quarterly Report on Form 10-Q for the period ended June 30, 2017. A copy of that report is available on the company’s website, under the Investors section. Other filings the company makes with the SEC and certain documents relating to its corporate governance can also be found under the Investors section.

Webcast of Earnings Conference Call

CenterPoint Energy’s management will host an earnings conference call on Thurs., Aug. 3, 2017, at 9:00 a.m. Central time/10:00 a.m. Eastern time. Interested parties may listen to a live audio broadcast of the conference call on the company’s website under the Investors section. A replay of the call can be accessed approximately two hours after the completion of the call and will be archived on the website for at least one year.

CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution and energy services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. The company also owns 54.1 percent of the common and subordinated units representing limited partner interests in Enable Midstream Partners, a publicly traded master limited partnership it jointly controls with OGE Energy Corp., which owns, operates and develops natural gas and crude oil infrastructure assets. With more than 7,700 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, please visit www.CenterPointEnergy.com.

This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual events and results may differ materially from those expressed or implied by these forward-looking statements. Any statements in this news release regarding future earnings, and future financial performance and results of operations, including, but not limited to earnings guidance, targeted dividend growth rate and any other statements that are not historical facts are forward-looking statements. Each forward-looking statement contained in this news release speaks only as of the date of this release. Factors that could affect actual results include (1) state and federal legislative and regulatory actions or developments affecting various aspects of CenterPoint Energy's businesses (including the businesses of Enable Midstream Partners (Enable Midstream)), including, among others, energy deregulation or re-regulation, pipeline integrity and safety and changes in regulation and legislation pertaining to trade, health care, finance and actions regarding the rates charged by CenterPoint Energy's regulated businesses; (2) local, state and federal legislative and regulatory actions or developments relating to the environment, including those related to global climate change; (3) recording of non-cash goodwill, long-lived asset or other than temporary impairment charges by or related to Enable Midstream; (4) timely and appropriate rate actions that allow recovery of costs and a reasonable return on investment; (5) the timing and outcome of any audits, disputes or other proceedings related to taxes; (6) problems with regulatory approval, construction, implementation of necessary technology or other issues with respect to major capital projects that result in delays or in cost overruns that cannot be recouped in rates; (7) industrial, commercial and residential growth in CenterPoint Energy's service territories and changes in market demand, including the effects of energy efficiency measures and demographic patterns; (8) the timing and extent of changes in commodity prices, particularly natural gas, and the effects of geographic and seasonal commodity price differentials; (9) weather variations and other natural phenomena, including the impact of severe weather events on operations and capital from; (10) any direct or indirect effects on CenterPoint Energy's facilities, operations and financial condition resulting from terrorism, cyber-attacks, data security breaches or other attempts to disrupt its businesses or the businesses of third parties, or other catastrophic events such as fires, earthquakes, explosions, leaks, floods, droughts, hurricanes, pandemic health events or other occurrences ; (11) the impact of unplanned facility outages; (12) timely and appropriate regulatory actions allowing securitization or other recovery of costs associated with any future hurricanes or natural disasters; (13) changes in interest rates or rates of inflation; (14) commercial bank and financial market conditions, CenterPoint Energy's access to capital, the cost of such capital, and the results of its financing and refinancing efforts, including availability of funds in the debt capital markets; (15) actions by credit rating agencies; (16) the extent and effectiveness of CenterPoint Energy's risk management and hedgingactivities, including, but not limited to, its financial hedges and weather hedges; (17) inability of various counterparties to meet their obligations; (18) non-payment for services due to financial distress of CenterPoint Energy's and Enable Midstream’s customers; (19) the ability of GenOn Energy, Inc. (formerly known as RRI Energy, Inc.), a wholly-owned subsidiary of NRG Energy, Inc., and its subsidiaries, currently the subject of bankruptcy proceedings, to satisfy their obligations to CenterPoint Energy and its subsidiaries, including indemnity obligations; (20) the ability of retail electric providers, including affiliates of NRG Energy, Inc. and Vistra Energy Corp., formerly known as TCEH Corp., to satisfy their obligations to CenterPoint Energy and its subsidiaries; (21) the outcome of litigation; (22) CenterPoint Energy's ability to control operation and maintenance costs; (23) the investment performance of pension and postretirement benefit plans; (24) CenterPoint Energy’s or Enable’s potential business strategies and strategic initiatives, including restructurings, joint ventures, and acquisitions or dispositions of assets or businesses (including a reduction of CenterPoint Energy’s interests in Enable, whether through its election to sell the common units it owns in the public equity markets or otherwise, subject to certain limitations) , for which no assurance can be given that they will be completed or will provide the anticipated benefits to CenterPoint Energy or Enable Midstream; (25) acquisition and merger activities involving CenterPoint Energy, Enable Midstream or their competitors; (26) the ability to recruit, effectively transition and retain management and key employees and maintain good labor relations; (27) future economic conditions in regional and national markets and their effects on sales, prices and costs; (28) the performance of Enable Midstream, the amount of cash distributions CenterPoint Energy receives from Enable Midstream, Enable Midstream’s ability to redeem its Series A Preferred Units in certain circumstances and the value of its interest in Enable Midstream, and factors that may have a material impact on such performance, cash distributions and value, including certain of the factors specified above and: (A) the integration of the operations of the businesses contributed to Enable Midstream; (B) the achievement of anticipated operational and commercial synergies and expected growth opportunities, and the successful implementation of Enable Midstream’s business plan; (C) competitive conditions in the midstream industry, and actions taken by Enable Midstream’s customers and competitors, including the extent and timing of the entry of additional competition in the markets served by Enable Midstream; (D) the timing and extent of changes in the supply of natural gas and associated commodity prices, particularly natural gas and natural gas liquids, the competitive effects of the available pipeline capacity in the regions served by Enable Midstream, and the effects of geographic and seasonal commodity price differentials, including the effects of these circumstances on re-contracting available capacity on Enable Midstream’s interstate pipelines; (E) the demand for crude oil, natural gas, NGLs and transportation and storage services; (F) changes in tax status; (G) access to growth capital; and (H) the availability and prices of raw materials for current and future construction projects; (29) effective tax rates; (30) tax reform and legislation; (31) the effect of changes in and application of accounting standards and pronouncements; and (32) other factors discussed in CenterPoint Energy’s Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2016, as well as in CenterPoint Energy’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017 and June 30, 2017 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

Use of Non-GAAP Financial Measures by CenterPoint Energy in Providing Guidance

In addition to presenting its financial results in accordance with generally accepted accounting principles (GAAP), including presentation of net income and diluted earnings per share, CenterPoint Energy also provides guidance based on adjusted net income and adjusted diluted earnings per share, which are non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company’s historical or future financial performance that excludes or includes amounts that are not normally excluded or included in the most directly comparable GAAP financial measure. CenterPoint Energy’s adjusted net income and adjusted diluted earnings per share calculation excludes from net income and diluted earnings per share, respectively, the impact of ZENS and related securities and mark-to-market gains or losses resulting from the company’s Energy Services business. CenterPoint Energy is unable to present a quantitative reconciliation of forward looking adjusted net income and adjusted diluted earnings per share because changes in the value of ZENS and related securities and mark-to-market gains or losses resulting from the company’s Energy Services business are not estimable.

Management evaluates the company’s financial performance in part based on adjusted net income and adjusted diluted earnings per share. We believe that presenting these non-GAAP financial measures enhances an investor’s understanding of CenterPoint Energy’s overall financial performance by providing them with an additional meaningful and relevant comparison of current and anticipated future results across periods. The adjustments made in these non-GAAP financial measures exclude items that Management believes does not most accurately reflect the company’s fundamental business performance. These excluded items are reflected in the reconciliation tables of this news release, where applicable. CenterPoint Energy’s adjusted net income and adjusted diluted earnings per share non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, net income and diluted earnings per share, which respectively are the most directly comparable GAAP financial measures. These non-GAAP financial measures also may be different than non-GAAP financial measures used by other companies.

2017-08-03T10:30:00Z
CenterPoint Energy declares $0.2675 quarterly dividend

Houston – July 27, 2017 - CenterPoint Energy, Inc.'s. (NYSE: CNP) board of directors today declared a regular quarterly cash dividend of $0.2675 per share of common stock payable on Sept. 8, 2017, to shareholders of record as of the close of business on Aug. 16, 2017.

CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution and energy services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. The company also owns 54.1 percent of the common and subordinated units representing limited partner interests in Enable Midstream Partners, a publicly traded master limited partnership it jointly controls with OGE Energy Corp.,  which owns, operates and develops natural gas and crude oil infrastructure assets. With more than 7,700 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, go to www.CenterPointEnergy.com.

2017-07-27T20:45:00Z
CenterPoint Energy named a 2017 Most Trusted Brand

HOUSTON – July 13, 2017 – CenterPoint Energy earned a 2017 "Most Trusted Brand" designation, making it one of the nation's most trusted utilities according to a new Cogent Reports™ study by Market Strategies International. The Utility Trusted Brand and Customer Engagement: Residential study, now in its fourth year, benchmarks brand performance of 130 electric and natural gas utilities on a quarterly basis among 59,823 utility consumers.  The study measures Brand Trust through scoring six factors among residential customers – customer focus, company reputation and advocacy, community support, communications effectiveness, environmental dedication and reliable quality.

"We have made substantial investments over the last several years to enhance the safety and reliability of our natural gas system and to improve our service to customers," said Gregory E. Knight, senior vice president and chief customer officer for CenterPoint Energy. "We believe being named a 'most trusted brand' clearly demonstrates that customers value and appreciate these efforts."

This year, the utilities designated by Cogent as 2017 Most Trusted Brands score 40 points higher on brand trust than their industry peers and are more likely to receive positive sentiments from their customers in the study.  The annual study highlights a statistical relationship between brand trust and rate case support, and shows customers expect utilities to expand support for new offerings and community outreach as a result of rate increases. Additionally, customers who trust their utility are twice as likely to recommend those alternative energy products to other customers.

 

CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution and energy services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. The company also owns a 54.1 percent limited partner interest in Enable Midstream Partners, a publicly traded master limited partnership it jointly controls with OGE Energy Corp., which owns, operates and develops natural gas and crude oil infrastructure assets. With more than 7,700 employees, CenterPoint Energy and its predecessor companies have been in business for more than 140 years. For more information, visit the website at www.CenterPointEnergy.com.

2017-07-13T05:00:00Z

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