CenterPoint Energy reports full year 2015 earnings Net loss of $1.61 per diluted share; Net income of $1.10 per diluted share on a guidance basis
2016-02-26T06:00:00Z
  • Achieved top end of revised guidance range of $1.05 to $1.10
  • Utility operations delivered $0.79 EPS and midstream investments delivered $0.31 EPS on a guidance basis
  • Company reiterates 2016 full year guidance of $1.12 - $1.20 with $0.88 - $0.92 from utility operations and $0.24 - $0.28 from midstream investments

Houston, TX – Feb. 26, 2016 - CenterPoint Energy, Inc. (NYSE: CNP) reports fourth quarter and full year 2015 earnings.  Scott M. Prochazka, president and chief executive officer said, “We are pleased to report earnings at the high end of our guidance range.  Utility operations contributed increased revenues from timely cost recovery and strong customer growth, while midstream investments finished the year within the initial guidance range provided.  We expect continued strong financial performance from utility operations in 2016, which is incorporated in our guidance.” 

“We have a great team of employees who are committed to our strategy of operating our systems safely, serving our customers effectively and efficiently, and growing our business to produce long-term shareholder value,” added Prochazka.

CenterPoint Energy, Inc. today reported a net loss of $509 million, or a loss of $1.18 per diluted share, for the fourth quarter of 2015.  This loss included pre-tax, non-cash impairment charges in this quarter totaling $984 million from midstream investments.  

Excluding the impairment charges, fourth quarter net income would have been $111 million, or $0.26 per diluted share, compared to $176 million or $0.41 per diluted share for the same period in 2014.  

For the year ended Dec. 31, 2015, net loss was $692 million, or a loss of $1.61 per diluted share.  This loss included pre-tax, non-cash impairment charges taken during 2015 totaling $1,846 million, related to midstream investments.  Excluding the impairment charges, net income would have been $465 million, or $1.08 per diluted share compared with net income of $611 million, or $1.42 per diluted share for the previous year.    

On a guidance basis, full-year 2015 earnings would have been $1.10 per diluted share, consisting of $0.79 from utility operations and $0.31 from midstream investments. ​

Business Segments​

Electric Transmission & Distribution

The electric transmission & distribution segment reported operating income of $109 million for the fourth quarter of 2015, consisting of $84 million from the regulated electric transmission & distribution utility operations (TDU) and $25 million related to securitization bonds. Operating income for the fourth quarter of 2014 was $113 million, consisting of $85 million from the TDU and $28 million related to securitization bonds. 

Operating income for the year ended Dec. 31, 2015, was $607 million, consisting of $502 million from the TDU and $105 million related to securitization bonds. Operating income for the same period of 2014 was $595 million, consisting of $477 million from the TDU and $118 million related to securitization bonds. 

Full year 2015 operating income for the TDU benefited from higher transmission and distribution related revenues, revenue increases associated with the addition of nearly 50,000 metered customers, as well as higher usage due to a return to more normal weather.  These increases were partially offset by lower equity return related to true-up proceeds, lower energy efficiency bonus, including the absence of a one-time energy efficiency remand bonus received in 2014, higher depreciation and lower right of way revenues.  

Natural Gas Distribution

The natural gas distribution segment reported operating income of $97 million for the fourth quarter of 2015, compared with $103 million for the same period of 2014.  

Operating income for the year ended Dec. 31, 2015, was $273 million compared with $287 million in 2014.  

Full year 2015 operating income for natural gas distribution decreased as a result of lower usage from a return to more normal weather and higher depreciation and amortization.  This decrease was partially offset by revenue from rate increases associated with capital investment and revenue from customer growth of approximately 30,000 new customers.

Energy Services

The energy services segment reported operating income of $13 million for the fourth quarter of 2015, which included a mark-to-market accounting gain of $1 million, compared with $9 million for the same period of 2014, which included a mark-to-market accounting gain of $6 million.  Excluding mark-to-market gains, operating income increased $9 million versus 2014.

Operating income for the year ended Dec. 31, 2015, was $42 million, which included a mark-to-market gain of $4 million, compared with $52 million in 2014, which included a mark-to-market gain of $29 million.  Excluding mark-to-market gains, the $15 million increase in 2015 was primarily due to operations and maintenance expense reductions, a lower inventory write down and improved margins. 

Midstream Investments

The midstream investments segment reported an equity loss of $934 million for the fourth quarter of 2015, which includes the impairment charges noted above.  The impairments noted above were partially offset by earnings of $50 million for the fourth quarter of 2015.  Earnings were $67 million for the same period of 2014.  

For the year ended Dec. 31, 2015, the segment reported an equity loss of $1,633 million, which includes the impairment charges noted above.  The impairments noted above were partially offset by full-year earnings of $213 million.  Earnings were $308 million for the full year of 2014.  

Earnings Outlook

On a consolidated basis, CenterPoint Energy expects earnings on a guidance basis for 2016 in the range of $1.12 - $1.20 per diluted share.  This guidance includes anticipated utility operations earnings of $0.88 - $0.92 per diluted share and midstream investment earnings of $0.24 - $0.28 per diluted share.  

CenterPoint Energy is targeting 4-6 percent earnings per share annual growth through 2018 on a guidance basis, inclusive of midstream investments.

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 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 for midstream investments, the company assumes a 55.4 percent limited partner ownership interest in Enable Midstream and includes the amortization of our basis differential in Enable Midstream. The company’s guidance takes into account such factors as Enable Midstream's most recent public outlook for 2016 dated Feb. 17, 2016, 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.  

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

Today, CenterPoint Energy, Inc. filed with the Securities and Exchange Commission (SEC) its Annual Report on Form 10-K for the year ended Dec. 31, 2015. 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, Feb. 26, 2016, at 10 a.m. Central time or 11 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 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 approximately 7,500 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.



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 earnings per share 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, 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, (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 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 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 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 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 Dec. 31, 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, and adjusted net income to reflect the impact of the impairments, 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. A reconciliation of net income and diluted earnings per share to the basis used in providing 2015 guidance and net income, adjusted for the impairments, is provided in this news release.

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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CenterPoint Energy reports natural gas outage for customers in Cleveland, Texas

Houston – Jan. 17, 2018 - CenterPoint Energy is experiencing a natural gas outage in Cleveland, Texas that is affecting 1,400 customers. The outage is a result of an equipment malfunction due to the inclement weather in the area, and has since been repaired.

"Safety is our number-one priority as we work to restore natural gas service," said Gary Chalk, district director for CenterPoint Energy. "As part of our safety procedures, to ensure that there is no air in the natural gas distribution lines we have begun the process of turning off each customer's natural gas meter.

"We will then work to ensure that the natural gas distribution lines are clear of air. Once the lines are clear, our qualified service technicians will begin performing a series of safety checks to ensure there is no risk involved in restoring gas service," Chalk added. "To perform these inspections, CenterPoint Energy service technicians will need to enter each home or business. We have also brought in technicians from other parts of the state to assist in restoring gas service.

"There is no need to call us as we make our initial assessments," Chalk said. "Once those checks are complete, we anticipate restoring service to most customers within 48-72 hours. At this time, no action is required on the part of the customer. If an adult over age 18 is not at the service address when a technician arrives, the company will leave a door hanger with instructions."

For safety reasons, the company urges customers not to turn any valves or tamper with the natural gas meter. Opening or turning any valves could allow air to enter the natural gas lines, which would hinder the restoration process.

For updates, follow CenterPoint Energy on Twitter: @CNPAlerts.

CenterPoint Energy’s systems performing well; reminds customers of important cold weather safety tips

Houston – Jan. 16, 2018 –CenterPoint Energy's electric and natural gas distribution systems are performing well in the extreme cold temperatures.

Safety is the company's number one priority and, just like for all Houston-area residents, weather conditions may impact the ability of CenterPoint Energy crews to navigate safely around the city.

CenterPoint Energy also wants to remind customers of important tips to stay safe and warm.

Electric:

High winds and ice could cause downed power lines in isolated areas. Always assume downed lines/wires are live and potentially dangerous if contacted.

  • Do not go near downed lines or fallen wires.
  • Keep your distance from objects touching downed lines (tree limbs, vehicles, fences, etc.).
  • If someone already made contact with a power line, do not try to rescue them. You can't help if you become a victim.
  • Report downed power lines to 713-207-2222 or 800-332-7143.

Natural gas:

Carbon monoxide (CO) is a poisonous gas that is colorless, odorless, tasteless and non-irritating, and any fuel-burning appliance in the home has the potential to produce CO. To prevent CO buildup:

  • Follow manufacturers' operating instructions properly for gas heating equipment.
  • Do not use stovetop burners or ovens to heat a room since they are not designed for this use.
  • Make sure to follow the blue flame rule. Natural gas flames should burn blue except natural gas fireplace logs which burn orange to have a more realistic wood burning look.
  • Crack windows slightly if using unvented space heaters.
  • Consider buying a CO detector as another line of defense against CO poisoning. CenterPoint Energy recommends buying one with an audible alarm and continuous digital display; make sure it is tested to the national standard for residential CO detectors (UL2034 or IAS NO. 6-96).
If you are in a room with operating gas equipment and experience a headache, followed by dizziness and nausea, you may be experiencing CO poisoning. Get fresh air immediately, and call 911 and CenterPoint Energy at 713.659-2111 or 800-752-8036. For the latest information on power outages:
CenterPoint Energy announces five-year capital investment plan

HoustonJan. 5, 2018 – CenterPoint Energy, Inc. (NYSE: CNP) today announced its capital spending plan for 2018-2022. For the five-year period, the company expects to make capital investments totaling $8.3 billion, representing an 18 percent increase over the company's 2017-2021 capital plan. Growth, reliability and grid hardening, as well as regulatory requirements are driving higher capital investment. The company's five-year capital plan is as follows: 

 

 20182019202020212022
Capital Estimate (in millions)$    1,664$    1,623$    1,689$    1,670$    1,634

 

The 2018-2022 forecast includes the proposed $250 million Freeport transmission project approved by the Electric Reliability Council of Texas on Dec. 12, 2017. The company anticipates the Texas Public Utility Commission will provide a decision on the project in 2019.    

CenterPoint Energy's management will host an earnings call at 11:00 a.m. Eastern time on Thursday, Feb. 22, 2018, and will provide dial-in instructions at a later date. Company executives plan to discuss 2017 earnings results, 2018 earnings guidance, long-term growth drivers and the impact of the Tax Cuts and Jobs Act. 

 

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 7,700 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 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. 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 capital spending, regulatory actions and timing 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, including the effects of the Tax Cuts and Jobs Act; (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 December 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.

 

 

CenterPoint Energy 2017 earnings expected to increase as a result of Tax Cuts and Jobs Act

HoustonJan. 4, 2018 – CenterPoint Energy, Inc. (NYSE: CNP) today announced expected earnings on a guidance basis for 2017 will incorporate a re-measurement of deferred tax liabilities and a credit to income tax expense. As a result, earnings are expected to exceed the previously provided $1.25 to $1.33 guidance range. Absent these adjustments, earnings are anticipated to be at or near the high end of the $1.25 to $1.33 range. 

CenterPoint Energy's management will host an earnings call at 11:00 a.m. Eastern time on Thursday, Feb. 22, 2018, and will provide dial-in instructions at a later date. Company executives plan to discuss 2017 earnings results, 2018 earnings guidance, long-term growth drivers, and the impact of the Tax Cuts and Jobs Act. 

Earnings Guidance Variables and Assumptions

Guidance for 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, anticipated 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 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 2017 provided on Nov. 1, 2017, and anticipated 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 7,700 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 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. 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 guidance and earnings 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, including the effects of the Tax Cuts and Jobs Act; (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 December 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

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 2017 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.

CenterPoint Energy elects to make a ZENS Reference Share Offer Adjustment

Houston - Jan. 3, 2018 - CenterPoint Energy, Inc. (NYSE: CNP) has elected to make a Reference Share Offer Adjustment and distribute Additional Interest, if any, in accordance with the terms of CenterPoint Energy's 2.0 percent Zero-Premium Exchangeable Subordinated Notes due 2029 (ZENS) rather than electing to increase the Early Exchange Ratio to 100 percent during the pendency of Meredith Corporation's tender offer for all outstanding shares of common stock of Time Inc. 

According to the terms of Meredith's tender offer provided in Meredith's Schedule TO filed with the Securities and Exchange Commission on Dec. 12, 2017, (a) the tender offer is being made solely for cash and expires one minute after 11:59 p.m. (Eastern Time) on January 10, 2018, unless the offer is extended or earlier terminated; and (b) Meredith expects to acquire all remaining shares of common stock of Time Inc. for the same cash price in the subsequent merger of Time Inc. with a subsidiary of Meredith, if Meredith consummates its tender offer.

Distributions of Additional Interest on the ZENS are therefore expected to be made by CenterPoint Energy in connection with the consummation of Meredith's tender offer and the subsequent merger of Time Inc. with a subsidiary of Meredith. CenterPoint Energy's distribution of Additional Interest in connection with the Reference Share Offer is expected to be proportionate to the percentage of eligible shares that are validly tendered by Time Inc. stockholders in Meredith's tender offer. 

As of the date of this press release, the Reference Shares for each ZENS note consist of 0.5 share of Time Warner Inc. common stock, 0.0625 share of Time Inc. common stock and 0.061382 share of Charter Communications, Inc. common stock.  After the tender offer and subsequent merger of Time Inc. with a subsidiary of Meredith, the Reference Shares for each ZENS note will consist of 0.5 share of Time Warner Inc. common stock and 0.061382 share of Charter Communications, Inc. common stock. 

Capitalized terms not otherwise defined in this press release have the meanings given to such terms in the indenture governing the ZENS.           

CenterPoint Energy, 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, 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 events, including the consummation of Meredith Corporation's tender offer and subsequent acquisition of Time Inc., and other statements that are not historical facts are forward-looking statements that involve risks and uncertainties including market conditions and other factors discussed in CenterPoint Energy's Form 10-K for the fiscal year ended December 31, 2016, CenterPoint Energy's Form 10-Q for the quarters ended March 31, 2017, June 30, 2017, and September 30, 2017, and CenterPoint Energy's other filings with the Securities and Exchange Commission. Each forward-looking statement contained in this news release speaks only as of the date of the release.