CenterPoint Energy announces 2016 earnings guidance of $1.12 to $1.20 per diluted share
2016-02-01T12:00:00Z
​​Houston – Feb. 1, 2016
  • ​Reaffirms 2015 full-year earnings guidance of $1.05 to $1.10 per diluted share
  • Reiterates target of 4-6% annual EPS growth in 2016, 2017 and 2018 on a guidance basis

CenterPoint Energy, Inc. (NYSE: CNP), today announced earnings guidance for 2016 to be in the range of $1.12 to $1.20 per diluted share and reaffirmed its expected earnings guidance for the year ending Dec. 31, 2015, to be in the range of $1.05 to $1.10 per diluted share.

Outlook for 2016​

Earnings guidance for 2016 includes a target of 4-6 percent earnings per share growth from existing businesses and investments. Additional accretive earnings per share benefits are expected to come from:

  • ​Investment of $363 million in Enable preferred security, and
  • Expansion of the company’s non-regulated Energy Services business.

2015 Earnings Guidance Reaffirmed​​

On a consolidated basis, CenterPoint Energy reaffirms earnings on a guidance basis for 2015 in the range of $1.05 to $1.10 per diluted share.

The guidance range for 2015 and for 2016 considers utility operations performance to date and certain significant variables that may impact utility operations earnings, such as weather, regulatory and judicial proceedings, throughput, commodity prices, effective tax rates, and financing activities. In providing this guidance, the company does not include other potential impacts, such as changes in accounting standards or unusual items, earnings 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 service business. 
In providing guidance, the company assumes for equity investments in midstream operations a 55.4 percent limited partner ownership interest in Enable Midstream and includes the amortization of CenterPoint Energy’s basis differential in its investment. The company's guidance takes into account such factors as Enable Midstream’s most recent public outlook dated Nov. 4, 2015, and effective tax rates. The company does not include other potential impacts such as any changes in accounting standards, impairments or Enable Midstream’s unusual items. At this time, the company expects to take a non-cash impairment on its interest in Enable Midstream in connection with preparation of its fourth quarter and full year 2015 financials.

Earnings Growth Outlook Reaffirmed​​

The company reiterates a target range of 4‐6 percent earnings growth per annum through 2018. The company also anticipates earnings per share contributions from Utility Operations and Midstream Investments of 70‐75 percent and 25‐30 percent, respectively.

Previously Disclosed Company News​

  • On Jan. 20, 2016, CenterPoint Energy’s board of directors declared a regular quarterly cash dividend of 25.75 cents per share, which represents a 4 percent increase from the previous quarterly dividend and if annualized, would equate to $1.03 per share.
  • On Jan. 29, 2016, CenterPoint Energy announced an agreement to invest $363 million in Enable Midstream Partners’ 10 percent perpetual preferred security.  Enable will redeem $363 million of notes payable to a wholly-owned subsidiary of CenterPoint Energy bearing rates of 2.1 percent to 2.45 percent due in 2017.  The transaction is expected to close prior to the end of the first quarter of 2016 and is expected to be accretive to CenterPoint Energy’s earnings. 
  • On Jan. 29, 2016, CenterPoint Energy Services, Inc., (CES) an indirect, wholly-owned subsidiary of CenterPoint Energy, Inc., announced that a purchase agreement had been signed to acquire Continuum’s energy services business for $77.5 million, plus working capital.

Fourth Quarter and Full Year Earnings Conference Call​​

CenterPoint Energy’s management will host an earnings call on Friday, Feb. 26, 2016, at 10 a.m. Central time or 11a.m. Eastern. Company executives will discuss the company’s 2015 earnings results as well as its revised capital expenditure forecast and the convergence of utility rate base and utility earnings growth. 
 
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 7,400 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.
 
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, expected accretion, or expected impairment charges 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) 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, and the impact of commodity changes on producer related activities; (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 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, invest planned capital, or execute growth projects; (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 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 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 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; (27) effective tax rate; (28) other factors discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2014, as well as in CenterPoint Energy’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015, June 30, 2015, September 30, 2015, 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​​

In addition to presenting its financial results in accordance with generally accepted accounting principles (GAAP), CenterPoint Energy also 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.
 
Management evaluates financial performance in part based on adjusted diluted earnings per share and believes 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 by excluding items that Management does not believe most accurately reflect its fundamental business performance, which items include the items reflected in the reconciliation table of this news release. This non-GAAP financial measure should be considered as a supplement and complement to, and not as a substitute for, or superior to, the most directly comparable GAAP financial measure and may be different than non-GAAP financial measures used by other companies.

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MPHA, SRC, and CenterPoint Energy team up for extensive weatherization of Glendale Townhomes

​The Minneapolis Public Housing Authority (MPHA), Sustainable Resources Center, Inc. (SRC), and CenterPoint Energy are pleased to announce funding and a timeline for winter weatherization and energy efficiency improvements across all 28 buildings of the Glendale Townhomes.

Glendale is a public housing development of 184 family townhomes in the Prospect Park neighborhood of Minneapolis. It was built in 1952, without modern design or materials ideal for Minnesota winters. In June, SRC weatherized an eight-townhome Glendale building as a pilot project—including wall and attic insulation, vent fans, and weather-stripping—at a cost of approximately $8,000 to $10,000 per unit.

"The pilot was a success in terms of what we learned, and the immediate improvements in comfort we were able to achieve for residents," said Greg Russ, MPHA's Executive Director. "Knowing that, we could push forward with SRC and CenterPoint Energy to find a way to extend the work to every home." Financial support for the project comes from CenterPoint Energy's Conservation Improvement Program (CIP) and the U.S. Department of Energy's "Weatherization Assistance Program" (WAP), which is administered by the Minnesota Department of Commerce.

Based upon the findings from the pilot, SRC anticipates weatherizing an additional 10 to 12 buildings by the end of the year, with the remainder in 2018. SRC provides free home energy upgrades to hundreds of income-eligible homeowners and renters in Hennepin County each year. The Glendale project alone will reach more than 600 people.

"We are proud to be a part of this project and partner with MPHA and SRC to make a positive difference for our neighbors," said Todd Berreman, director of energy efficiency for CenterPoint Energy.  "We look forward to completing the work in the remaining Glendale townhomes and providing a more pleasant and energy-efficient living environment for the residents of this community."

SRC will conduct an energy audit of each building, identifying priorities for each unit. Along with insulation and ventilation, enhancements could include cleaning, repair, or replacement of furnaces or water heaters, and installation of energy-efficient light bulbs.

The three partners are grateful to Minneapolis Ward 2 City Council Member Cam Gordon for helping them bridge the unique hurdles posed by this large-scale project.  

"Glendale has provided home and community for low-income families for 65 years, and we intend for it do so for the next 65," said MPHA Executive Director Russ. "Even as we look to the long-term preservation of Glendale, this major investment with SRC and CenterPoint will make a meaningful difference for families today."

Call CenterPoint Energy now for Cold Weather Rule protection

Minneapolis – Oct. 9, 2017 – CenterPoint Energy is reminding customers about certain rights and their responsibilities as it relates to the Cold Weather Rule (CWR), which protects residential customers experiencing difficulty paying their natural gas bill from having their natural gas service disconnected between Oct. 15, 2017 and April 15, 2018. While the CWR does not prevent customers from being disconnected for nonpayment, it does provide customers extra protection as defined in the CWR, but residential customers must contact CenterPoint Energy to set up a payment plan.

"We want to make sure all of our customers understand the Minnesota Cold Weather Rule. It helps those customers who may have trouble paying their natural gas bill during cold winter months," said Brad Tutunjian, vice president of Gas Operations in Minnesota.  "But, it also helps customers whose service is currently disconnected. I encourage those customers to call us now at 1-800-245-2377 to qualify under the Rule. We'll work together to establish a payment plan so their service is turned back when heating season begins."

Customers who anticipate having trouble paying their entire natural gas bill, have received a Notice of Proposed Disconnection or need gas service reconnected are all urged to call CenterPoint Energy to establish a payment plan. A payment plan will include what is owed as well as the amount to be billed and will take into consideration a customer's financial situation and any other special circumstances. The payment plan must also be agreeable to both the customer and CenterPoint Energy. If an agreed-upon payment plan cannot be reached, customers have a right to appeal under the CWR.

Under the CWR, special payment terms are available to customers who:

  • Apply for and receive Low Income Home Energy Assistance Program (LIHEAP) funding assistance in Minnesota; or
  • Meet income guidelines set by the state of Minnesota and provide proof of income.

Call CenterPoint Energy to set up a payment plan at 1-612-372-4680 or 1-800-729-6164. For additional information, please visit CenterPointEnergy.com/ReadyForWinter.

Other helpful information:

  • In addition to calling CenterPoint Energy to discuss and establish a payment plan, company representatives are available to refer customers to social service agencies who may have energy assistance funds;
  • Customers can also sign up for CenterPoint Energy's Average Monthly Billing Plan, which spreads natural gas costs throughout the year, helping customers avoid payment peaks. Customers can sign up online through My Account at CenterPointEnergy.com/Register or by calling CenterPoint Energy;
  • The Minnesota Department of Commerce maintains a website that provides information on energy efficiency and heating assistance programs; and
  • Customers interested in helping others pay their natural gas bill can support the Salvation Army's HeatShare program. Visit The Salvation Army's website to make a donation.

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 7,400 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. The utility also operates a non-regulated business in Minnesota called Home Service Plus®. For more information, visit the website at CenterPointEnergy.com.

CenterPoint Energy prepares for TS Nate; urges customers to be prepared for potential flooding and issues important natural gas safety tips

Houston – Oct. 6, 2017 – As the Gulf Coast braces for Tropical Storm Nate, CenterPoint Energy is closely monitoring and preparing for the storm. The company has developed the following pre- and post-storm natural gas safety tips that customers should follow:

Before the storm:

  • 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. If you smell gas, leave the area immediately on foot and tell others to leave, too.
  • If you smell gas, do not turn the lights on or off, 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 safely away from the area, call CenterPoint Energy at 888-876-5786. The company will send a trained service technician.

After the storm:

  • 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, the nationwide Call Before You Dig number before cleaning debris, digging on your property or to locate underground natural gas lines and other underground utility lines.
  • 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. If debris is near a gas meter, the 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 CenterPoint Energy's weather safety pages and follow the company @cnpalerts and Facebook.com/CenterPoint Energy.

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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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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