CenterPoint Energy reports Second Quarter 2013 earnings reaffirms full year 2013 guidance
2013-08-01T05:00:00Z

Houston - August 1, 2013 - CenterPoint Energy, Inc. (NYSE: CNP) today reported a net loss of $100 million, or $0.23 per diluted share, for the second quarter of 2013. Second quarter results included two unusual items related to the formation of the midstream partnership: (i) a $225 million, non-cash deferred tax charge and (ii) $10 million of partnership formation expenses. Excluding these items, the second quarter net income would have been $131 million, or $0.30 per diluted share. This compares to net income of $126 million, or $0.29 per diluted share, for the same period of 2012.

“The most significant accomplishment this quarter was the closing of our midstream partnership with OGE Energy, Enable Midstream Partners,” said David M. McClanahan, president and chief executive officer of CenterPoint Energy. “Our financial results for the quarter include a number of one-time charges associated with its formation.  While it will take some time to realize the full potential of this new venture we remain very excited about the future of this business. Our other businesses continue to show the benefits of our balanced portfolio with our gas distribution utilities reporting a strong quarter largely offsetting the impact of milder weather on our electric utility. Operational performance continues to be very good across all of our businesses.”

For the six months ended June 30, 2013, net income was $47 million, or $0.11 per diluted share. Excluding the two unusual items noted above, net income would have been $279 million, or $0.65 per diluted share. This compares to net income of $273 million, or $0.64 per diluted share, for the same period of 2012.

Operating income for the second quarter and for the six months ended June 30, 2013, was $223 million and $555 million, respectively. CenterPoint Energy’s second quarter 2013 operating income reflects only the month of April’s results for the Interstate Pipeline and Field Services segments. Following the May 1, 2013, formation of Enable Midstream Partners, CenterPoint Energy reports its investment in midstream operations as equity income thus is not reflected in operating income. As a result, CenterPoint Energy’s operating income for the second quarter and the six months ended June 30, 2013, is not comparable to prior results.

Electric Transmission & Distribution

The electric transmission & distribution segment reported operating income of $165 million for the second quarter of 2013, consisting of $131 million from the regulated electric transmission & distribution utility operations (TDU) and $34 million related to securitization bonds. Operating income for the second quarter of 2012 was $191 million, consisting of $153 million from the TDU and $38 million related to securitization bonds.

Economic activity around the Houston area remains robust, however second quarter operating income for the TDU declined due to milder weather. Customer growth, which continued at an annual rate of 2 percent, and higher net transmission revenues, offset increased depreciation and taxes, lower right of way revenues, and higher expenses.

Operating income for the six months ended June 30, 2013, was $249 million, consisting of $180 million from the TDU and $69 million related to securitization bonds. Operating income for the same period of 2012 was $298 million, consisting of $223 million from the TDU and $75 million related to securitization bonds.

Natural Gas Distribution

The natural gas distribution segment reported operating income of $25 million for the second quarter of 2013, compared to $9 million for the same period of 2012. Operating income benefited from colder weather as compared to last year, rate changes, and increased economic activity across our footprint, partially offset by an increase in depreciation and property taxes. Operating income also benefited from continued control of operation and maintenance expenses.

Operating income for the six months ended June 30, 2013, was $164 million, compared to $130 million for the same period of 2012.

Competitive Natural Gas Sales and Services

The competitive natural gas sales and services segment reported operating income of $3 million for the second quarter of 2013, compared to an operating loss of $4 million for the same period of 2012. Excluding the adjustments from mark-to-market accounting for derivatives associated with forward natural gas transactions used to lock in economic margin, the business performance was consistent with the prior year. Operating income for the six months ended June 30, 2013, was $10 million, compared to an operating loss of $3 million for the same period of 2012.

Other Operations

The other operations segment reported an operating loss of $10 million for the second quarter of 2013, compared to operating income of $3 million for the same period of 2012. The decline is related to the expenses associated with the formation of Enable Midstream Partners as well as higher property taxes.

Interstate Pipelines/ Field Services

For the month of April, prior to the formation of Enable Midstream Partners, the interstate pipelines segment reported operating income of $20 million and equity earnings of $2 million from its 50 percent interest in the Southeast Supply Header (SESH) and the field services segment reported operating income of $20 million.

Midstream Investments

As previously announced, the formation of Enable Midstream Partners closed on May 1, 2013.The partnership consists of OGE’s midstream business, Enogex LLC, and CenterPoint Energy’s interstate pipelines and field services businesses, other than a 25.05 percent interest in SESH retained by the company. Following the formation of Enable Midstream Partners, CenterPoint Energy reports equity earnings from its interest in the partnership and equity earnings from its retained interest in SESH under a new midstream investments reporting segment. In May and June, CenterPoint Energy reported equity income of $33 million from its interest in Enable Midstream Partners and equity income of $2 million from its retained interest in SESH.The performance of the partnership was in line with management’s expectations given low natural gas liquids prices and low seasonal and geographic price differentials.

Dividend Declaration

On July 25, 2013, CenterPoint Energy’s board of directors declared a regular quarterly cash dividend of $0.2075 per share of common stock payable on September 10, 2013, to shareholders of record as of the close of business on August 16, 2013.

Guidance Reaffirmed for 2013

Excluding the effects of the two unusual items recorded in the second quarter related to the formation of Enable Midstream Partners as noted above, CenterPoint Energy reaffirmed its estimate for 2013 earnings on a guidance basis in the range of $1.17 to $1.25 per diluted share. Earnings guidance is being provided in the form of a range to reflect economic and operational variables associated with the company’s various business segments and ownership interest in Enable Midstream Partners and takes into consideration performance to date. Significant variables include the impact to earnings of commodity prices, volume throughput, ancillary services, weather, regulatory proceedings, effective tax rates and financing activities. In providing this guidance, the company does not include the impact of any changes in accounting standards, any impact to earnings from the change in the value of Time Warner stocks and the related ZENS securities, or the timing effects of mark-to-market and inventory accounting in the company’s competitive natural gas sales and services business.

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

Today, CenterPoint Energy, Inc. filed its Form 10-Q with the Securities and Exchange Commission (SEC) for the period ended June 30, 2013. A copy is available on the company’s website, under the Investors section. Company SEC filings and other documents relating to its corporate governance can also be found on the website.

Webcast of Earnings Conference Call

CenterPoint Energy’s management will host an earnings conference call on Thursday, August 1, 2013, at 10:30 a.m. Central time or 11:30 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 competitive natural gas sales and 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 58.3 percent limited partner interest in Enable Midstream Partners it jointly controls with OGE Energy Corp. with operations in major natural gas and liquids-rich producing areas of Oklahoma, Texas, Arkansas and Louisiana. With more than 8,700 employees, CenterPoint Energy and its predecessor companies have been in business for more than 135 years. For more information, visit the website at www.CenterPointEnergy.com.

This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual events and results may differ materially from those expressed or implied by these forward-looking statements. The statements in this news release regarding the company’s earnings outlook for 2013 and future financial performance and results of operations, 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 its midstream partnership with OGE Energy Corp. and affiliates of ArcLight Capital Partners, LLC (Enable Midstream Partners)), including, among others, energy deregulation or re-regulation, pipeline integrity and safety, health care reform, financial reform, tax legislation, and actions regarding the rates charged by CenterPoint Energy’s regulated businesses; (2) state and federal legislative and regulatory actions or developments relating to the environment, including those related to global climate change; (3) timely and appropriate rate actions that allow recovery of costs and a reasonable return on investment; (4) the timing and outcome of any audits, disputes or other proceedings related to taxes; (5) problems with 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; (6) 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; (7) the timing and extent of changes in commodity prices, particularly natural gas and natural gas liquids, and the effects of geographic and seasonal commodity price differentials; (8) weather variations and other natural phenomena, including the impact on operations and capital from severe weather events; (9) 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; (10) the impact of unplanned facility outages; (11) timely and appropriate regulatory actions allowing securitization or other recovery of costs associated with any future hurricanes or natural disasters; (12) changes in interest rates or rates of inflation; (13) 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; (14) actions by credit rating agencies; (15) effectiveness of CenterPoint Energy’s risk management activities; (16) inability of various counterparties to meet their obligations; (17) non-payment for services due to financial distress of CenterPoint Energy’s customers; (18) the ability of GenOn Energy, Inc. (formerly known as RRI Energy, Inc.), a wholly owned subsidiary of NRG Energy, Inc., and its subsidiaries to satisfy their obligations to CenterPoint Energy and its subsidiaries; (19) the ability of retail electric providers, and particularly the two largest customers of the TDU, to satisfy their obligations to CenterPoint Energy and its subsidiaries; (20) the outcome of litigation brought by or against CenterPoint Energy or its subsidiaries; (21) CenterPoint Energy’s ability to control costs; (22) the investment performance of pension and postretirement benefit plans; (23) potential business strategies, including restructurings, joint ventures, and acquisitions or dispositions of assets or businesses, for which no assurance can be given that they will be completed or will provide the anticipated benefits to CenterPoint Energy; (24) acquisition and merger activities involving CenterPoint Energy or its competitors; (25) future economic conditions in regional and national markets and their effects on sales, prices and costs; (26)  the performance of the Midstream Partnership, the amount of cash distributions CenterPoint Energy receives from the Midstream Partnership, and the value of its interest in the Midstream Partnership, 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 the Midstream Partnership with those contributed by OGE and ArcLight; (B) the achievement of anticipated operational and commercial synergies and expected growth opportunities, and the successful implementation of the Midstream Partnership’s business plan; (C) competitive conditions in the midstream industry, and actions taken by the Midstream Partnership's customers and competitors, including the extent and timing of the entry of additional competition in the markets served by the Midstream Partnership; (D) the timing and extent of changes in commodity prices, particularly natural gas and natural gas liquids, the competitive effects of the available pipeline capacity in the regions served by the Midstream Partnership, and the effects of geographic and seasonal commodity price differentials, including the effects of these circumstances on re-contracting available capacity on the Midstream Partnership's interstate pipelines; (E) the demand for 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; and (27) other factors discussed in CenterPoint Energy’s Form 10-K for the period ended December 31, 2012, as well as in CenterPoint Energy's Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2013, and June 30, 2013, and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

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Forest Lake native Carol Donnellan receives SGA Humanitarian Award for lifesaving efforts

MINNEAPOLIS – February 16, 2017 – CenterPoint Energy employee and Forest Lake native, Carol Donnellan, was recently selected by the Southern Gas Association (SGA) to receive the Humanitarian Award in recognition of her life saving efforts. The award is designed to recognize natural gas industry employees(s) whose Good Samaritan actions promote human welfare and community responsibility.

Donnellan was awarded for her efforts in helping save an unresponsive driver in November 2016 who was slumped over in his vehicle at a green light in an intersection.  Concerned for his safety and since the driver appeared to be experiencing a medical emergency, she immediately pulled over and dialed 911.

 Donnellan, a utility person-meter reader for CenterPoint Energy in Coon Rapids, says she is very grateful for the award.  "To me, helping another where I live and work is putting the 'golden rule' of doing the right things for people into action," said Donnellan.  "The real heroes are the local police officers who arrived on the scene really quickly to come to our aid."

"This award was given to Carol for demonstrating compassion and competence and exceeding normal expectations, in assisting individuals in need," said Cheryl Johnson, Donnellan's supervisor. 

"At CenterPoint Energy, we put safety first in everything we do – not only for our employees but also our communities. Carol's actions support CenterPoint Energy's core values including initiative," added Brad Tutunjian, vice president of Gas Operations for CenterPoint Energy.   "We are extremely proud of her."

To learn more about what CenterPoint Energy is doing in your community, visit CenterPointEnergy.com/Community.

CenterPoint Energy designated a 2016 Residential Customer Champion in Utility Trusted Brand & Engagement™ Residential study

MINNEAPOLIS - February 2, 2017 - CenterPoint Energy achieved top tier rankings among U.S. natural gas utilities throughout 2016 in the Midwest and South regions, designating the company a 2016 Residential Customer Champion by Cogent Reports. The Customer Champions list was compiled from year-end Engaged Customer Relations (ECR) scores and ratings from consumers surveyed for the annual Utility Trusted Brand & Customer Engagement™ study. The results are based on responses from more than 52,000 residential ratepayers for 130 leading gas and electric utilities throughout the U.S.  The study measures and tracks brand trust, customer engagement, satisfaction and relationship strength among residential customers.

"Over the past several years, we have made substantial investments to further enhance safety, reliability and service," said Gregg Knight, senior vice president and chief customer officer for CenterPoint Energy. "While these rankings confirm that our customers appreciate our efforts, we plan to continue working hard to improve our systems and service and earn our customers' trust."

 Rick Zapalac, senior vice president of Gas Operations for CenterPoint Energy agrees and added, "Whether it's in the field, in the office or on the phones, it takes a team of employees all aligned around the goal of serving the customer, to provide the kind of service reflected in these scores.  I would like to thank our employees for their hard work and dedication."

This is the third year Cogent Reports™ has computed Customer Champion scores for individual utilities and recognized Customer Champions. In October 2015, CenterPoint Energy ranked third in the Midwest for environmental dedication by Cogent Reports.  In April 2014, CenterPoint Energy was also ranked first in operational satisfaction by Cogent Reports™.  

Cogent Reports™, a division of Market Strategies International, announced customer rankings for the top tier electric, natural gas and combination providers in four regions across the U.S. The ranking is based on how CenterPoint Energy performed compared to other large utilities in the U.S.

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 55.4 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 7,800 employees, CenterPoint Energy and its predecessor companies have been in business for more than 140 years. For more information, visit the website at CenterPointEnergy.com.

 

CenterPoint Energy receives EEI’s Emergency Recovery Award

Houston, TX - January 16, 2017 – The Edison Electric Institute (EEI) recently presented CenterPoint Energy with the association's "Emergency Recovery Award" for its outstanding power restoration efforts after severe thunderstorms and flooding hit Houston in April 2016.

 The award is presented twice annually to EEI member companies to recognize their extraordinary efforts to restore power to customers after service disruptions caused by severe weather conditions or other natural events. The winners were chosen by a panel of judges following an international nomination process, and the awards were presented during the winter EEI Board of Directors and CEO Meeting.

 On April 17, 2016, potent thunderstorms brought torrential rain and caused severe flooding in the greater Houston area. CenterPoint Energy restored 90 percent of outages within 27 hours, and resumed fully normal operations within 60 hours of the storm. CenterPoint Energy crews devoted 15,827 hours to this recovery operation.

 "The tireless work by CenterPoint Energy crews to restore service following a violent spring storm exemplifies our industry's commitment to customer service and safety," said EEI President Tom Kuhn. "The courageous and dedicated CenterPoint Energy crews who faced dangerous conditions in the wake of this storm are greatly deserving of this terrific recognition."

 "Responding in the aftermath of severe weather is part of the job at an electric company," said Kenny Mercado, senior vice president of Electric Operations for CenterPoint Energy. "Our employees take that responsibility very seriously and we are proud to be recognized by EEI for the tremendous effort our employees made to restore service to our customers as quickly and safely as possible following the torrential flooding we experienced last April."

CenterPoint Energy subsidiary closes on $300 million of general mortgage bonds

Houston – January 12, 2017 - CenterPoint Energy Houston Electric, LLC (Houston Electric), an indirect, wholly-owned subsidiary of CenterPoint Energy, Inc. (NYSE: CNP), today closed on 3.00 % general mortgage bonds totaling $300 million due February 1, 2027. Net proceeds will be for general limited liability company purposes.

Mizuho Securities, Regions Securities LLC and US Bancorp served as joint bookrunners with The Williams Capital Group, L.P. and Wolfe Capital Markets and Advisory as Co-Managers. 

"We were pleased to work with such a distinguished and diverse group of banks to help finance our growth and capital investment requirements in our Houston service territory," said Tracy Bridge, executive vice president and president of CenterPoint Energy's Electric Division.

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 the timing and impact of future regulatory and legislative decisions, effects of competition, weather variations, changes in business plans, financial market conditions and other factors discussed in Houston Electric's Form 10-K, as amended, for the period ended December 31, 2015, Houston Electric's Form 10-Qs for the periods ended March 31, 2016, June 30, 2016 and September 30, 2016 and Houston Electric'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 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 7,800 employees, CenterPoint Energy and its predecessor companies have been in business for more than 140 years.

CenterPoint Energy announces 2017 earnings guidance of $1.25 to $1.33 per diluted share

Houston - Jan. 6, 2017 - CenterPoint Energy, Inc. (NYSE: CNP) today announces expected earnings on a guidance basis for 2017 to be in the range of $1.25 to $1.33 per diluted share and reaffirms its expected earnings on a guidance basis to be in the range of $1.16 to $1.20 per diluted share for the year ending Dec. 31, 2016.

 Guidance for 2017 includes earnings per share growth expected to come from:

  • Utility growth,
  • Increased earnings per Enable Midstream Partners' forecast, as provided on Enable's third quarter 2016 earnings call, and
  • Increased earnings contribution from CenterPoint Energy Services, partly attributable to recent acquisitions.

In addition to these drivers, the company expects lower interest expense and a full year of dividend income from CenterPoint's investment in Enable's preferred units.

"Our 2017 earnings guidance represents solid growth over our 2016 year end estimated range supported by both utility operations and midstream investments," said Scott M. Prochazka, president and chief executive officer of CenterPoint Energy. "Utility operations, driven by fundamental growth and investment, continue to perform very well and we are pleased with Enable's 2017 forecast."

The company anticipates 2017 capital spending of $1.5 billion, a 14 percent increase over the previous forecast for 2017 capital spending.  Both the electric and gas utilities are expected to contribute to the growth in capital spending:

  • Houston Electric anticipates capital spending of $922 million in 2017 in support of sustained industrial, commercial and residential customer growth. 
  • Gas Distribution anticipates capital spending of $534 million in 2017 to accommodate continued growth, particularly in the Houston metro and Minnesota jurisdictions, as well as pipe replacement needs in the six states served by CenterPoint. 

CenterPoint Energy's management will host an earnings call on Tuesday, Feb. 28, 2017, at 11:00 a.m. Eastern time. Company executives will discuss the company's 2016 earnings results, as well as provide additional detail on earnings growth drivers and the company's five-year capital forecast. 

Earnings Guidance Variables and Assumptions

The guidance range for 2016 and 2017 considers utility operations 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, the company assumes for midstream investments a limited partner ownership interest in Enable Midstream averaging 55.3 percent for 2016 and 54.1 percent for 2017 and includes the amortization of CenterPoint Energy's basis difference in Enable Midstream. CenterPoint Energy's guidance takes into account such factors as Enable Midstream's most recent public outlook for 2016, dated Nov. 2, 2016, 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.

About CenterPoint Energy

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 7,800 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.

Forward Looking Statements

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 2016 and future earnings, and 2016 and future financial performance and results of operations, including, but not limited to earnings guidance, future interest expense, dividend income, capital spending, growth 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, health care reform, financial reform, tax legislation, and actions regarding the rates charged by CenterPoint Energy's regulated businesses; (2) 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 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 natural gas liquids, and the effects of geographic and seasonal commodity price differentials, and the impact of commodity changes on producer related activities; (9) weather variations and other natural phenomena, including the impact on operations and capital from severe weather events; (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; (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) effectiveness of CenterPoint Energy's risk management activities; (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 to satisfy their obligations to CenterPoint Energy and its subsidiaries; (20) the ability of retail electric providers, and particularly the largest customers of the TDU, to satisfy their obligations to CenterPoint Energy and its subsidiaries; (21) the outcome of litigation; (22) CenterPoint Energy's ability to control costs, invest planned capital, or execute growth projects; (23) the investment performance of pension and postretirement benefit plans; (24) potential business strategies, including restructurings, joint ventures, and acquisitions or dispositions of assets or businesses, for which no assurance can be given that they will be completed or will provide the anticipated benefits to CenterPoint Energy; (25) acquisition and merger activities and successful integration of such activities, involving CenterPoint Energy or its 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, 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 achievement of anticipated operational and commercial synergies and expected growth opportunities, and the successful implementation of  Enable Midstream's business plan; (B) 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; (C) 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; (D) the demand for crude oil, natural gas, NGLs and transportation and storage services; (E) changes in tax status; (F) access to growth capital; and (G) the availability and prices of raw materials for current and future construction projects; (29) effective tax rate; (30) the effect of changes in and application of accounting standards and pronouncements; (31) other factors discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2015, as well as in CenterPoint Energy's Quarterly Report on Form 10-Q for the quarter ended March 31, 2016, June 30, 2016 and September 30, 2016 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

CenterPoint Energy provides guidance based on adjusted diluted earnings per share, which is a non-GAAP financial measure. 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 diluted earnings per share calculation excludes from diluted earnings per share 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 or 2016 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 diluted earnings per share.  We believe that presenting this non-GAAP financial measure 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 this non-GAAP financial measure exclude items that Management believes do not most accurately reflect the company's fundamental business performance.  CenterPoint Energy's adjusted diluted earnings per share non-GAAP financial measure should be considered as a supplement to, and not as a substitute for, or superior to, diluted earnings per share, which is the most directly comparable GAAP financial measure.  This non-GAAP financial measure also may be different than non-GAAP financial measures used by other companies.