CenterPoint Energy reports first quarter 2016 earnings of $0.36 per diluted share and reaffirms full year guidance of $1.12 to $1.20
2016-05-10T05:00:00Z
  • Strong utility performance despite milder weather
  • Midstream Investments delivers earnings contributions in-line with expectations
  
Houston, TX – May 10, 2016 - CenterPoint Energy, Inc. (NYSE: CNP) today reported net income of $154 million, or $0.36 per diluted share, for the first quarter of 2016, compared with $131 million, or $0.30 per diluted share for the same period of the prior year. On a guidance basis, first quarter 2016 earnings were $0.32 per diluted share, consisting of $0.23 from utility operations and $0.09 from midstream investments.    

Operating income for the first quarter of 2016 was $250 million, compared with $256 million in the first quarter of the prior year. Equity income from midstream investments was $60 million for the first quarter of 2016, compared with $52 million for the same period in the prior year.

“2016 is off to a solid start with strong performance from our gas and electric utilities,” said Scott M. Prochazka, president and chief executive officer of CenterPoint Energy.  “Enable Midstream provided first quarter earnings in-line with expectations as they continue to execute their strategy.”  

Electric Transmission & Distribution

The electric transmission & distribution segment reported operating income of $83 million for the first quarter of 2016, consisting of $59 million from the regulated electric transmission & distribution utility operations (TDU) and $24 million related to securitization bonds. Operating income for the first quarter of 2015 was $96 million, consisting of $68 million from the TDU and $28 million related to securitization bonds. 

Operating income for the TDU benefited primarily from higher net transmission related revenues ($11 million) and customer growth ($6 million).  These benefits were more than offset by higher depreciation ($12 million), lower right of way revenues ($6 million) and higher operations and maintenance expense ($5 million).

Natural Gas Distribution

The natural gas distribution segment reported operating income of $160 million for the first quarter of 2016, compared with $146 million for the same period of 2015. Operating income benefited from rate increases ($21 million) and customer growth ($2 million).  These benefits were partially offset by decreased usage ($4 million), higher depreciation and amortization expenses ($4 million) and higher labor and benefits expenses ($3 million).    

Energy Services

The energy services segment reported operating income of $6 million for the first quarter of 2016, which included a mark-to-market accounting loss of $9 million, compared with $13 million for the same period of 2015, which included a mark-to-market loss of $4 million.  Excluding mark-to-market losses, the remaining $2 million decrease was margin related, primarily due to reduced weather-related optimization opportunities.  

Midstream Investments

The midstream investments segment reported $60 million of equity income for the first quarter of 2016, compared with $52 million in the first quarter of the prior year.  

Enable Midstream also declared a quarterly cash distribution on April 26, 2016, of $0.318 per common and subordinated unit.  Please refer to Enable’s May 4, 2016, earnings press release for details.

Dividend Declaration

On April 28, 2016, CenterPoint Energy’s board of directors declared a regular quarterly cash dividend of $0.2575 per share of common stock payable on June 10, 2016, to shareholders of record as of the close of business on May 16, 2016. 

Outlook for 2016

On a consolidated basis, CenterPoint Energy reaffirms its earnings estimate for 2016 in the range of $1.12 to $1.20 per diluted share.  
The guidance range 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 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 midstream investments 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 May 4, 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.



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

Today, CenterPoint Energy, Inc. filed with the Securities and Exchange Commission (SEC) its Quarterly Report on Form 10-Q for the period ended March 31, 2016. 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 Tues., May 10, 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 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 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 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 December 31, 2015, as well as in CenterPoint Energy’s Quarterly Report on Form 10-Q for the quarter ended March 31, 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 

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. A reconciliation of net income and diluted earnings per share to the basis used in providing 2016 guidance 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. 



some_text CenterPoint Energy

View More Tweets ›

 Recent News

 

 

MPHA, SRC, and CenterPoint Energy Announce Weatherization Assistance Pilot Program for Glendale Townhomes

​Sustainable Resources Center, Inc. (SRC), CenterPoint Energy, and the Minneapolis Public Housing Authority (MPHA) are pleased to announce a partnership to pursue weatherization and energy-efficiency improvements to Glendale Townhomes.

Glendale is a development of 184 family townhomes in the Prospect Park neighborhood of Minneapolis. It was built in 1952, making it the oldest major public housing property in Minneapolis. "These townhomes were built without many of the features and materials we would use today to best protect against our Minnesota winters," said Mary Boler, MPHA’s Managing Director of Low Income Public Housing. "The enhancements we can put in place over time, with these partners, should help us improve interior comfort and create real energy savings."

The process will start in April with selection of one of Glendale’s eight-unit townhome buildings for an initial pilot. Following a kick-off meeting with residents, SRC will conduct an energy audit of the building, identifying priorities for each unit, and begin the work. Lessons learned from the pilot will inform the approach to the remaining buildings.

"I am delighted to know that SRC, MPHA, and CenterPoint Energy will be working together to bring needed weatherization and heating resources to the Glendale Townhomes," said Minneapolis City Council Member Gordon, whose Ward 2 includes Glendale. "This energy and money-saving investment will help ensure safer, more comfortable, more energy-efficient homes for the residents of this wonderful, close-knit community for years to come."

SRC provides free home energy upgrades to hundreds of income-eligible homeowners and renters in Hennepin County each year. "Not only does the work permanently reduce energy bills, it also improves the health, safety, and comfort of residents," said SRC’s Executive Director Jed Norgaarden. "We are happy to have worked through the unique set of hurdles presented by this particular project, and look forward to getting started."

The weatherization and energy-efficiency measures will likely include wall and attic insulation, weather-stripping of doors and windows, and caulking at critical junctures. Additional enhancements could include cleaning, repair, or replacement of furnaces, water heaters, and vent fans, as well as installing smart thermostats and LED light bulbs.

"We have worked hard and faced considerable expense over the years to keep Glendale, like all of our properties, as comfortable as possible all throughout the year," said MPHA’s Director of Facilities and Development, Tim Gaetz. "In the coming months, we will be exploring how we can leverage this unique, three-way partnership to continue that commitment to the residents of Glendale."

Financial support for the project will come from CenterPoint Energy and the U.S. Department of Energy’s "Weatherization Assistance Program" (WAP), which is administered by the Minnesota Department of Commerce.

"We are pleased to be able to support this worthwhile project through our Conservation Improvement Programs," said Todd Berreman, director of energy efficiency for CenterPoint Energy. "Weatherizing these homes to modern standards will reduce energy costs and emissions and help improve the well-being of our customers."

CenterPoint Energy honored by Junior Achievement with A U.S. President's Volunteer Service Award

HOUSTON – March 14, 2017 – Junior Achievement USA® (JA) announced that it has honored CenterPoint Energy with a Bronze level 2015-2016 U.S. President's Volunteer Service Award for providing more than 5,000 volunteer hours to local Junior Achievement offices during the 2015-2016 school year. The U.S. President's Volunteer Service Award was presented to 64 organizations at an evening awards ceremony during the JA Volunteer Summit, on March 7, 2017 in New York, NY.

In 2003, President George W. Bush established the President's Council on Service and Civic Participation (the Council) to recognize the valuable contributions volunteers make in communities and encourage more people to serve. The Council created the President's Volunteer Service Award program as a way to thank and honor individuals who, by their demonstrated commitment and example, inspire others to engage in volunteer service. In 2006, Junior Achievement became an official certifying organization for this award, which recognizes corporations with a U.S. presence that provide volunteers to teach JA programs anywhere in the world.

"Junior Achievement volunteers are important mentors for young people, bringing our programs to life. JA volunteers share their experiences and skills with students while delivering our programs, teaching them how to manage their money, succeed in the workforce, or start a business that creates jobs and grows the economy. JA's volunteers are critical to our organization's success and are a vital part of our mission," said Rick Franke, president of Junior Achievement of Southeast Texas.

"Respect for the communities in which we operate is a core value upon which CenterPoint Energy has operated for many years," said Scott Prochazka, president and chief executive officer for CenterPoint Energy and JA of Southeast Texas board member. "Our company works with the communities we serve to enhance quality of life in the areas of community development, health and human services and education."

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

CenterPoint Energy honored by Junior Achievement with A U.S. President's Volunteer Service Award

MINNEAPOLIS – March 14, 2017 – Junior Achievement USA® (JA) announced that it has honored CenterPoint Energy with a Bronze level 2015-2016 U.S. President's Volunteer Service Award for providing more than 5,000 volunteer hours to local Junior Achievement offices during the 2015-2016 school year. The U.S. President's Volunteer Service Award was presented to 64 organizations at an evening awards ceremony during the JA Volunteer Summit, on March 7, 2017 in New York, NY.

In 2003, President George W. Bush established the President's Council on Service and Civic Participation (the Council) to recognize the valuable contributions volunteers make in communities and encourage more people to serve. The Council created the President's Volunteer Service Award program as a way to thank and honor individuals who, by their demonstrated commitment and example, inspire others to engage in volunteer service. In 2006, Junior Achievement became an official certifying organization for this award, which recognizes corporations with a U.S. presence that provide volunteers to teach JA programs anywhere in the world.

 "Junior Achievement volunteers are important mentors for young people, bringing our programs to life. JA volunteers share their experiences and skills with students while delivering our programs, teaching them how to manage their money, succeed in the workforce, or start a business that creates jobs and grows the economy. JA's volunteers are critical to our organization's success and are a vital part of our mission," said Gina Blayney, president of Junior Achievement of the Upper Midwest.

"Respect for the communities in which we operate is a core value upon which CenterPoint Energy has operated for many years," said Scott Prochazka, president and chief executive officer for CenterPoint Energy and JA of Southeast Texas board member. "Our company works with the communities we serve to enhance quality of life in the areas of community development, health and human services and education."

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

CenterPoint Energy Employees Present Workshop to Future Leaders

​CenterPoint Energy employees, in conjunction with the Beaumont Chamber Foundation, conducted a leadership workshop at Vidor High School on Wednesday, March 8, 2017. 

Nearly 40 high school students were chosen by their counselors and club sponsors to attend this workshop in an effort to grow their leadership skills.  The workshop combined activities, group projects, and personality quizzes in order to acquire necessary skills to lead their organizations.  The leadership workshop was the first in a new initiative to train local youth to become effective leaders.

Matt McCallon, Senior Marketing Consultant, and Tara Vincent, Ops Support Rep were two of the three presenters to the group of high school students attending the workshop.  They were honored to represent CenterPoint Energy and impart skills and knowledge regarding effective communication, group collaboration, and a charge to share newly learned skills with their peers.  McCallon and Vincent work out of CenterPoint's Southeast TX District Office in Beaumont, Texas.

 

 

CenterPoint Energy recognized by the Greater Beaumont Chamber of Commerce with the Century Plus Award

HOUSTON – March 13, 2017 – CenterPoint Energy received The Century Plus Award presented by the Greater Beaumont Chamber of Commerce. This award is given to businesses that have been members of the chamber for over one hundred years. The awards were presented at the Member Recognition Luncheon 2017 on February 23. CenterPoint Energy district director Gary Chalk attended the luncheon and received the award on behalf of the company.