CenterPoint Energy gears up for hurricane season

Houston – June 1, 2020 – Hurricane season begins June 1, and CenterPoint Energy encourages customers to have an emergency plan, particularly if they depend on electricity for life-sustaining equipment. As a part of CenterPoint Energy's commitment to restore services as quickly and safely as possible following a severe weather event, the company has an Emergency Operations Plan (EOP). CenterPoint Energy's employees, across all areas, are called upon to support the company­­'s EOP.

"Hurricanes are unpredictable, which makes it hard to anticipate the impact to our electric system," said Randy Pryor, vice president of Distribution Operations for CenterPoint Energy. "Based on the severity of the event, customers should be prepared for outages and have resources to be without power for at least two weeks or possibly longer."

CenterPoint Energy recommends that customers be prepared to be without service according to the following guidelines:

HURRICANE WIND SPEED ESTIMATED OUTAGE*
CATEGORY 1 winds 74-95 mph 7 to 10 days
CATEGORY 2winds 96-110 mph 2 to 3 weeks
CATEGORY 3winds 111-130 mph 3 to 5 weeks
CATEGORY 4winds 131-155 mph 4 to 6 weeks
CATEGORY 5winds 156 mph and up 6 to 8 weeks

  *Individual restoration times will vary.

In response to COVID-19, CenterPoint Energy implemented its Pandemic Preparedness Plan to help ensure safe, reliable delivery of energy and services to homes and businesses. In the event of a hurricane, the company will continue to take the necessary steps to protect the safety and well-being of customers, employees, contractors and communities.

"We are dedicated to restoring our electrical transmission and distribution system safely and effectively, while also taking the necessary safety measures to prevent the spread of COVID-19. We are asking customers to respect social distancing guidelines and not approach working employees and contractors," added Pryor.

CenterPoint Energy has implemented additional measures to protect the safety and health of its customers, employees and contractors. These safety measures include:

  • Equipping employees with hand sanitizer in their vehicles as well as latex gloves – in addition to standard protective equipment;
  • Directing field employees to attempt to resolve service issues without entering homes or businesses;
  • Following social distancing guidelines and wearing protective equipment if entering businesses to provide service;
  • Implementing a telework approach for employees who can perform their job responsibilities from home or a remote location;
  • Increasing cleaning and disinfecting frequency of facilities and vehicles;
  • Leveraging technology to minimize face-to-face contact and meetings;
  • Emphasizing good hygiene, including washing and sanitizing hands;
  • Requiring employees to stay home if they are feeling sick;
  • Suspending international air travel and non-essential domestic air travel; and
  • Minimizing contact with visitors and others at company facilities.

For the latest information on power outages:

No two storms are alike and, as was the case with Hurricane Harvey, flooding can have a significant impact on natural gas operations. For information on natural gas safety, electric safety and other resources, visit CenterPointEnergy.com/StormCenter.

 

2020-06-01T05:00:00Z
CenterPoint Energy reports first quarter 2020 loss of $2.44 per diluted share; $0.50 earnings per diluted share from utility operations and $0.10 per diluted share from midstream investments on a guidance basis, excluding impairment charges

Houston - May 7, 2020 - CenterPoint Energy, Inc. (NYSE: CNP) today reported a loss available to common shareholders of $1,228 million, or loss of $2.44 per diluted share, for the first quarter of 2020, compared to income available to common shareholders of $140 million, or $0.28 per diluted share, for the first quarter of 2019.  The company recognized $1,568 million of after-tax non-cash impairment charges and losses on assets held for sale in the first quarter of 2020, which are discussed in detail below.

On a guidance basis, first quarter 2020 earnings were $0.50 per diluted share from utility operations and $0.10 per diluted share from midstream investments, excluding non-cash impairment charges. First quarter 2019 earnings, on a guidance basis, were $0.41 per diluted share from utility operations and $0.05 per diluted share from midstream investments. See "Reconciliation of Consolidated income available to common shareholders and diluted earnings (loss) per share (GAAP) to adjusted income and adjusted diluted earnings per share (Non-GAAP)" below.

"During these unprecedented times, I am proud of the tremendous efforts our employees are making every day to continue providing safe and reliable electricity and natural gas to our customers," said John W. Somerhalder II, interim president and chief executive officer of CenterPoint Energy. "I would like to extend a special thank you to our operations personnel who are on the front lines keeping the electricity on and the natural gas flowing during a time when our customers need them most. Despite the challenges created by the COVID-19 pandemic and less-than-favorable weather, I am pleased to report that CenterPoint Energy delivered strong first quarter results driven by customer growth, rate relief, disciplined cost management and favorable tax benefits."

Business Segments

Houston Electric - Transmission & Distribution

The Houston electric - transmission & distribution segment reported net income of $37 million for the first quarter of 2020, compared with $30 million for the first quarter of 2019. Net income for the first quarter of 2020 included $3 million of after-tax severance costs. Net income for the first quarter of 2019 included $8 million of after-tax merger-related expenses.  On a guidance basis, first quarter 2020 net income was $40 million, compared with $38 million for the first quarter of 2019.  On a guidance basis, net income in the first quarter of 2020 benefited primarily from customer growth and lower operations and maintenance expense. These benefits were partially offset by increased depreciation and amortization and other taxes expense, lower equity return, primarily due to the annual true-up of transition charges, and lower miscellaneous revenues.

Indiana Electric – Integrated

The Indiana electric - integrated segment reported a net loss of $171 million for the first quarter of 2020, compared with a net loss of $9 million for the first quarter of 2019. The net loss for the first quarter of 2020 included $185 million of non-cash impairment charges. The net loss for the first quarter of 2019 included $18 million of after-tax merger-related expenses.  On a guidance basis, excluding non-cash impairment charges, first quarter 2020 net income was $14 million, compared with $9 million for the first quarter of 2019.  On a guidance basis, net income in the first quarter of 2020 benefited primarily from an additional month of earnings from the electric utility acquired in the merger in February 2019 and rate relief. These benefits were partially offset by lower usage, primarily due to unfavorable weather.

Natural Gas Distribution

The natural gas distribution segment reported net income of $204 million for the first quarter of 2020, compared with $120 million for the first quarter of 2019. Net income for the first quarter of 2020 includes $3 million of after-tax severance costs. Net income for the first quarter of 2019 included $44 million of after-tax merger-related expenses.  On a guidance basis, first quarter 2020 net income was $207 million, compared with $164 million for the first quarter of 2019. On a guidance basis, net income in the first quarter of 2020 benefited primarily from an additional month of earnings from the gas jurisdictions acquired in the merger in February 2019, rate relief, customer growth and lower operations and maintenance expense. These increases were partially offset by increased depreciation and amortization and other taxes expense, interest expense and lower usage, primarily due to unfavorable weather.

Midstream Investments

The midstream investments segment reported a net loss of $1,127 million for the first quarter of 2020.  This loss included after-tax non-cash impairment charges totaling $1,177 million, composed of the company's impairment of its investment in Enable Midstream Partners, LP ("Enable") of $1,166 million and the company's share, $11 million, of impairment charges Enable recorded for goodwill and long-lived assets during the first quarter of 2020.  Excluding non-cash impairment charges, first quarter of 2020 net income was $50 million, compared with $24 million for the first quarter of 2019.  For further detail, please refer to Enable's investor materials provided during its first quarter 2020 earnings call on May 6, 2020.

Corporate and Other

The corporate and other segment reported net income of $4 million for the first quarter of 2020, compared with a net loss of $22 million for the first quarter of 2019.  Net income for the first quarter of 2020 included $7 million of after-tax merger-related expenses and severance costs. The net loss for the first quarter of 2019 included $12 million of after-tax merger-related expenses.

Discontinued Operations - Energy Services and Infrastructure Services

Discontinued operations reported a net loss of $146 million for the first quarter of 2020, compared with net income of $26 million for the first quarter of 2019.  The net loss for the first quarter of 2020 included $111 million of after-tax non-cash impairment charges at Energy Services recorded for goodwill and loss on assets held for sale, plus an additional after-tax loss of $4 million for cost to sell, and $80 million of after-tax non-cash impairment charges at Infrastructure Services recorded for goodwill, plus an additional after-tax loss of $11 million for cost to sell. Results related to discontinued operations are excluded from the company's guidance basis results.

Earnings Outlook

To provide greater transparency on utility earnings, 2020 guidance will be presented in two components, a guidance basis Utility EPS range and a Midstream Investments EPS expected range.

  • Reiterate 2020 guidance basis Utility EPS range of $1.10 - $1.20
  • 2020 - 2024 target of 5 - 7% compound annual guidance basis Utility EPS growth, using the 2020 range of $1.10 - $1.20 as the starting EPS, assuming the COVID-19 scenario described below
  • 2020 Midstream Investments EPS expected range is $0.15 - $0.18 

Utility EPS Guidance Range

  • Utility EPS guidance range includes net income from Houston Electric, Indiana Electric and Natural Gas Distribution segments, as well as after tax operating income from the Corporate and Other segment.
  • The 2020 Utility EPS guidance range considers operations performance to date and assumptions for certain significant variables that may impact earnings, such as customer growth (approximately 2% for electric operations and 1% for natural gas distribution) and usage including normal weather, throughput, recovery of capital invested through rate cases and other rate filings, effective tax rates, financing activities and related interest rates, regulatory and judicial proceedings, anticipated cost savings as a result of the merger and reflects dilution and earnings as if the newly issued preferred stock were issued as common stock.  In addition, the Utility EPS guidance range incorporates a COVID-19 scenario range of $0.05 - $0.08 which assumes reduced demand levels with April as the peak and reflects anticipated deferral and recovery of incremental expenses, including bad debt. The COVID-19 scenario also assumes a gradual re-opening of the economy in CenterPoint Energy's service territories, leading to diminishing levels of demand reduction, which would continue through August.  To the extent actual recovery deviates from these COVID-19 scenario assumptions, the 2020 Utility EPS guidance range may not be met and our projected full-year guidance range may change.  The Utility EPS guidance range also assumes an allocation of corporate overhead based upon its relative earnings contribution. Corporate overhead consists of interest expense, preferred stock dividend requirements, income on Enable preferred units and other items directly attributable to the parent along with the associated income taxes.
  • Utility EPS guidance excludes:
    • Certain integration and transaction-related fees and expenses associated with the merger
    • Severance costs
    • Midstream Investments and allocation of associated corporate overhead
    • Results related to Infrastructure Services and Energy Services, including anticipated costs and impairment resulting from the sale of those businesses
    • Earnings or losses from the change in value of ZENS and related securities
    • Changes in accounting standards

In providing this 2020 guidance, CenterPoint Energy uses a non-GAAP measure of adjusted diluted earnings per share that does not consider the items noted above and other potential impacts, including other unusual items, which could have a material impact on GAAP reported results for the applicable guidance period. CenterPoint Energy is unable to present a quantitative reconciliation of forward looking adjusted diluted earnings per share because changes in the value of ZENS and related securities are not estimable as they are highly variable and difficult to predict due to various factors outside of management’s control.

Midstream Investments EPS Expected Range

The 2020 Midstream Investments EPS expected range is $0.15 - $0.18. In providing this EPS range for Midstream Investments, the company assumes a 53.7 percent limited partner ownership interest in Enable and includes the amortization of its basis differential in Enable and assumes an allocation of CenterPoint Energy corporate overhead based upon Midstream Investments relative earnings contribution. The Midstream Investments EPS expected range reflects dilution and earnings as if CenterPoint Energy's newly issued preferred stock were issued as common stock. The Midstream Investments EPS expected range takes into account such factors as Enable's most recent public outlook for 2020 dated May 6, 2020, and effective tax rates. The company does not include other potential impacts such as any changes in accounting standards, impairments or Enable'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 quarter ended March 31, 2020. A copy of that report is available on the company’s website, under the Investors section. Investors and others should note that we may announce material information using SEC filings, press releases, public conference calls, webcasts, and the Investor Relations page of our website. In the future, we will continue to use these channels to distribute material information about the company and to communicate important information about the company, key personnel, corporate initiatives, regulatory updates and other matters. Information that we post on our website could be deemed material; therefore we encourage investors, the media, our customers, business partners and others interested in our company to review the information we post on our website.

Webcast of Earnings Conference Call

CenterPoint Energy's management will host an earnings conference call on Thursday, May 7, 2020, at 10:00 a.m. Central time/11:00 a.m. Eastern time. Interested parties may listen to a live audio broadcast of the conference call on the company's website under the Investors section. A replay of the call can be accessed approximately two hours after the completion of the call and will be archived on the website for at least one year.

Headquartered in Houston, Texas, CenterPoint Energy, Inc. is an energy delivery company with regulated utility businesses in eight states and a competitive energy businesses footprint in more than 30 states. Through its electric transmission & distribution, power generation and natural gas distribution businesses, the company serves more than 7 million metered customers in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas. CenterPoint Energy's competitive energy businesses include natural gas marketing and energy-related services, energy efficiency and sustainability solutions, and owning and operating intrastate natural gas pipeline systems that help fund utility operations. As of March 31, 2020, the company owned approximately $33 billion in assets and also owned 53.7 percent of the common units representing limited partner interests in Enable Midstream Partners, LP, a publicly traded master limited partnership that owns, operates and develops strategically located natural gas and crude oil infrastructure assets. With approximately 9,900 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.

This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this news release, the words "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "intend," "may," "objective," "plan," "potential," "predict," "projection," "should," "target," "will" or other similar words are intended to identify forward-looking statements. 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 capital investments, future earnings, and future financial performance and results of operations, including, but not limited to earnings guidance, impact of COVID-19, including with respect to regulatory actions, 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.

Risks Related to CenterPoint Energy

Important factors that could cause actual results to differ materially from those indicated by the provided forward-looking information include risks and uncertainties relating to: (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 Enable 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 drilling, production and capital spending decisions of third parties and 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) economic effects of the recent actions of Saudi Arabia,  Russia and other oil-producing countries, which have resulted in a substantial decrease in oil and natural gas prices and the combined impact of these events and COVID-19 on commodity prices; (D) the demand for crude oil, natural gas, NGLs and transportation and storage services; (E) environmental and other governmental regulations, including the availability of drilling permits and the regulation of hydraulic fracturing; (F) recording of goodwill, long-lived asset or other than temporary impairment charges by or related to Enable; (G) the timing of payments from Enable's customers under existing contracts, including minimum volume commitment payments; (H) changes in tax status; and (I) access to debt and equity capital; (2) the COVID-19 pandemic and its effect on CenterPoint Energy's and Enable's operations, business and financial condition, the industries and communities they serve, U.S. and world financial markets and supply chains, potential regulatory actions and changes in customer and stakeholder behaviors relating thereto; (3) volatility and a substantial recent decline in the markets for oil and natural gas as a result of the actions of crude-oil exporting nations and the Organization of Petroleum Exporting Countries and reduced worldwide consumption due to the COVID-19 pandemic; (4) CenterPoint Energy's expected benefits of the merger with Vectren Corporation (Vectren) and integration, including the outcome of shareholder litigation filed against Vectren that could reduce anticipated benefits of the merger, as well as the ability to successfully integrate the Vectren businesses and to realize anticipated benefits and commercial opportunities; (5) the recording of impairment charges, including any impairment or loss associated with the sale of Infrastructure Services and Energy Services; (6) industrial, commercial and residential growth in CenterPoint Energy's service territories and changes in market demand, including the demand for CenterPoint Energy's non-utility products and services and effects of energy efficiency measures and demographic patterns; (7) timely and appropriate rate actions that allow recovery of costs and a reasonable return on investment; (8) future economic conditions in regional and national markets and their effect on sales, prices and costs; (9) weather variations and other natural phenomena, including the impact of severe weather events on operations and capital; (10) 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; (11) tax legislation, including the effects of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the comprehensive tax reform legislation informally referred to as the Tax Cuts and Jobs Act (which includes any potential changes to interest deductibility) and uncertainties involving state commissions' and local municipalities' regulatory requirements and determinations regarding the treatment of excess deferred income taxes and CenterPoint Energy's rates; (12) CenterPoint Energy's ability to mitigate weather impacts through normalization or rate mechanisms, and the effectiveness of such mechanisms; (13) the timing and extent of changes in commodity prices, particularly natural gas and coal, and the effects of geographic and seasonal commodity price differentials; (14) the ability of CenterPoint Energy's and CERC's non-utility business (Energy Services) to effectively optimize opportunities related to natural gas price volatility and storage activities, including weather-related impacts; (15) actions by credit rating agencies, including any potential downgrades to credit ratings; (16) changes in interest rates and their impact on CenterPoint Energy's costs of borrowing and the valuation of its pension benefit obligation; (17) problems with regulatory approval, legislative actions, construction, implementation of necessary technology or other issues with respect to major capital projects that result in delays or cancellation or in cost overruns that cannot be recouped in rates; (18) the availability and prices of raw materials and services and changes in labor for current and future construction projects; (19) local, state and federal legislative and regulatory actions or developments relating to the environment, including, among others, those related to global climate change, air emissions, carbon, waste water discharges and the handling and disposal of coal combustion residuals (CCR) that could impact the continued operation, and/or cost recovery of generation plant costs and related assets; (20) the impact of unplanned facility outages or other closures; (21) any direct or indirect effects on CenterPoint Energy's or Enable'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, ice, earthquakes, explosions, leaks, floods, droughts, hurricanes, tornadoes, pandemic health events or other occurrences; (22) CenterPoint Energy's ability to invest planned capital and the timely recovery of CenterPoint Energy's existing and future investments, including those related to Indiana Electric's anticipated Integrated Resource Plan; (23) CenterPoint Energy's ability to successfully construct and operate electric generating facilities, including complying with applicable environmental standards and the implementation of a well-balanced energy and resource mix, as appropriate; (24) CenterPoint Energy's ability to control operation and maintenance costs; (25) the sufficiency of CenterPoint Energy's insurance coverage, including availability, cost, coverage and terms and ability to recover claims; (26) the investment performance of CenterPoint Energy's pension and postretirement benefit plans; (27) 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; (28) changes in rates of inflation; (29) inability of various counterparties to meet their obligations to CenterPoint Energy; (30) non-payment for CenterPoint Energy's services due to financial distress of its customers; (31) the extent and effectiveness of CenterPoint Energy's and Enable's risk management and hedging activities, including but not limited to, financial and weather hedges and commodity risk management activities; (32) timely and appropriate regulatory actions, which include actions allowing securitization, for any future hurricanes or natural disasters or other recovery of costs; (33) 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 the proposed sale of Energy Services, which CenterPoint Energy and Enable cannot assure will be completed or will have the anticipated benefits to CenterPoint Energy or Enable; (34) the development of new opportunities and the performance of projects undertaken by ESG, including, among other factors, the level of success in bidding contracts and cancellation and/or reductions in the scope of projects by customers, and obligations related to warranties and guarantees; (35) acquisition and merger activities involving CenterPoint Energy or its competitors, including the ability to successfully complete merger, acquisition and divestiture plans; (36) CenterPoint Energy's or Enable's ability to recruit, effectively transition and retain management and key employees and maintain good labor relations; (37) the outcome of litigation; (38) the ability of retail electric providers (REPs), including REP affiliates of NRG Energy, Inc. and Vistra Energy Corp., formerly known as TCEH Corp., to satisfy their obligations to CenterPoint Energy and its subsidiaries; (39) changes in technology, particularly with respect to efficient battery storage or the emergence or growth of new, developing or alternative sources of generation; (40) the impact of alternate energy sources on the demand for natural gas; (41) the timing and outcome of any audits, disputes and other proceedings related to taxes; (42) the effective tax rates; (43) the transition to a replacement for the LIBOR benchmark interest rate; (44) the effect of changes in and application of accounting standards and pronouncements; and (45) other factors discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2019, CenterPoint Energy's Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

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

In addition to presenting its financial results in accordance with generally accepted accounting principles (GAAP), including presentation of income (loss) available to common shareholders and diluted earnings (loss) per share, CenterPoint Energy also provides guidance based on adjusted income and adjusted diluted earnings per share, which are non-GAAP financial measures.  Generally, a non-GAAP financial measure is a numerical measure of a company's historical or future financial performance that excludes or includes amounts that are not normally excluded or included in the most directly comparable GAAP financial measure.

To provide greater transparency on utility earnings, CenterPoint Energy's 2020 guidance will be presented in two components, a guidance basis Utility EPS range and a Midstream Investments EPS expected range. The 2020 Utility EPS guidance range includes net income from Houston Electric, Indiana Electric and Natural Gas Distribution business segments, as well as after tax operating income from the Corporate and Other business segment. The 2020 Utility EPS guidance range considers operations performance to date and assumptions for certain significant variables that may impact earnings, such as customer growth (approximately 2% for electric operations and 1% for natural gas distribution) and usage including normal weather, throughput, recovery of capital invested through rate cases and other rate filings, effective tax rates, financing activities and related interest rates, regulatory and judicial proceedings, anticipated cost savings as a result of the merger and reflects dilution and earnings as if the recently issued preferred stock were issued as common stock.  In addition, the 2020 Utility EPS guidance range incorporates a COVID-19 scenario range of $0.05 - $0.08 which assumes reduced demand levels with April as the peak and reflects anticipated deferral and recovery of incremental expenses, including bad debt. The COVID-19 scenario also assumes a gradual re-opening of the economy in CenterPoint Energy's service territories, leading to diminishing levels of demand reduction, which would continue through August.  To the extent actual recovery deviates from these COVID-19 scenario assumptions, the 2020 Utility EPS guidance range may not be met and our projected full-year guidance range may change.  The 2020 Utility EPS guidance range also assumes an allocation of corporate overhead based upon its relative earnings contribution. Corporate overhead consists of interest expense, preferred stock dividend requirements, income on Enable preferred units and other items directly attributable to the parent along with the associated income taxes. Utility EPS guidance excludes (a) certain integration and transaction-related fees and expenses associated with the merger, (b) severance costs, (c) Midstream Investments and associated allocation of corporate overhead, (d) results related to Infrastructure Services and Energy Services, including anticipated costs and impairment resulting from the sale of those businesses, and (e) earnings or losses from the change in value of ZENS and related securities. In providing this guidance, CenterPoint Energy 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, which could have a material impact on GAAP reported results for the applicable guidance period.  CenterPoint Energy is unable to present a quantitative reconciliation of forward looking adjusted diluted earnings per share because changes in the value of ZENS and related securities are not estimable as they are highly variable and difficult to predict due to various factors outside of management's control.

The 2020 Midstream Investments EPS expected range assumes a 53.7 percent limited partner ownership interest in Enable and includes the amortization of the Company's basis differential in Enable and assumes an allocation of CenterPoint Energy corporate overhead based upon Midstream Investments relative earnings contribution. The Midstream Investments EPS expected range reflects dilution and earnings as if the CenterPoint Energy recently issued preferred stock were issued as common stock.  The Midstream Investments EPS expected range takes into account such factors as Enable's most recent public outlook for 2020 dated May 6, 2020, and effective tax rates. The company does not include other potential impacts such as any changes in accounting standards, impairments or Enable's unusual items.

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

2020-05-07T05:00:00Z
CenterPoint Energy urges customers to follow important electric safety tips

Houston – May 6, 2020 CenterPoint Energy continues to be committed to providing customers throughout its service territory with safe and reliable electricity during COVID-19.

"We recognize that customers are facing many challenges resulting from COVID-19. Some of our customers who are staying at home are using this time to do house repairs and work in their yards," said Randy Pryor, vice president of Distribution Operations for CenterPoint Energy. "As we continue to work safely to deliver power to our customers' homes and businesses, we ask our customers to always be safe around electric appliances, equipment and power lines."

CenterPoint Energy is also commemorating National Electric Safety Month in May. The company would like to take this opportunity to share important electric safety tips with customers:

  • Stay away from downed power lines. 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.
    • Report downed power lines to 713-207-2222 or 800-332-7143.
  • Be aware of and stay at least 10 feet away from overhead lines, including any objects you're holding or touching even when you're on the ground. Contact with overhead electrical lines can cause serious injuries or fatalities.
  • Before starting an outdoor project, remember to do the following:
    • Look up and become aware of overhead lines;
    • Carry long objects horizontally, whenever possible;
    • If your project could bring a person, equipment, objects or tools within 10 feet of an overhead power line, you must contact CenterPoint Energy in advance to discuss options for making the worksite safe, which may include temporary de-energization; and 
    • Be aware of underground electrical lines. Contact 811 at least 48 hours in advance if you plan to dig so that underground lines owned by utilities can be located. Note that property owners are responsible for locating customer-owned equipment, such as underground electrical drops.
  • Stay away from damaged or vandalized equipment and report it by calling 713-207-2222 or 800-332-7143.
  • Don't play near electrical equipment.
    • Never climb trees close to power lines.
    • Never climb or hang on guy wires, transformers, utility poles or transmission towers.
    • Never enter electrical substations.
  • Keep toys far from power lines.
    • Kites can conduct electricity from power lines, electrical wires or lightning.
    • Never place trampolines or swimming pools near overhead electrical lines.
    • Drones, balls, balloons and other airborne toys can damage or short-circuit electrical lines.

"By taking simple precautions, our customers can take advantage of the extra time at home while ensuring the safety of themselves and their family," added Pryor.

If customers would like to learn more about additional safety steps that the company is taking to protect them and their employees from COVID-19, visit the Safety & Reliability page. For more information and other resources:

2020-05-06T05:00:00Z
CenterPoint Energy continues to build on its commitment to a clean energy future

Houston – April 22, 2020 – CenterPoint Energy, a leading U.S. energy delivery company, continues to build on its commitment to a clean energy future by working with partners, customers, employees and other stakeholders to reduce carbon emissions across its service territory.

In March 2020, the company announced goals to reduce its operational emissions by 70% by 2035 and emissions attributable to natural gas usage in heating, appliances and equipment within the residential and commercial sectors by 20 to 30% by 2040. The reduction goals are based on its 2005 emissions. CenterPoint Energy is among the first energy delivery companies to issue such a commitment across a multi-state footprint, establishing a new natural gas utility standard. The company's goals are aligned with the recently announced Houston Climate Action Plan.

"CenterPoint Energy has a long history of environmental commitment and we are proud to be a leader in the transition to a cleaner energy future," said John W. Somerhalder II, CenterPoint Energy's interim president and chief executive officer. "Further reductions in our carbon footprint align with this commitment, and we look forward to bringing new, innovative technologies to the emissions-reduction effort, while maintaining affordability, reliability and quality of life."

CenterPoint Energy is a proud sponsor of the Houston Climate Action Plan. This initiative is a science-based, community-driven strategy for the city of Houston to reduce greenhouse gas (GHG) emissions and lead a global energy transition. CenterPoint Energy also helped fund the Houston Advanced Research Center and C40 Cities, a climate leadership group, which provided technical support for the development of the plan.

The company applauds Houston Mayor Sylvester Turner for focusing on reducing emissions in transportation, energy transition, building optimization and materials management. These areas generate most of the region's GHG emissions. To achieve its reduction goals, CenterPoint Energy will focus on:

  1. Partnering with customers to offer affordable conservation and energy efficiency programs;
  2. Continuing to develop alternative fuel programs;
  3. Collaborating with our suppliers to lower their methane emissions; and
  4. Piloting and supporting innovation.

As a leading energy partner, CenterPoint Energy will continue to invest in and utilize innovative technologies to reduce emissions and expand alternative fuel programs. One example is EVolve Houston, a coalition to accelerate clean transportation with a focus on improving regional air quality and reducing GHG emissions. EVolve Houston was cofounded by CenterPoint Energy as a key initiative of the Houston Climate Action Plan planning process.

"By leveraging electric vehicles and other available technologies, such as renewable natural gas and methane leak detection, utilities have helped lead the transition to a lower carbon emission energy system," said Jason Ryan, CenterPoint Energy's senior vice president and general counsel. "It is important to support the continued development of technologies and fuels that enable widespread access to energy that is clean, affordable, reliable and resilient."

CenterPoint Energy continues its infrastructure modernization projects, such as smart meters, cast-iron pipe replacement and other proven technologies. Smart meters have reduced the need for truck rolls and enabled Power Alert Service to restore electric service to over 2.5 million customers without a single phone call. The company's commitment to eliminate cast-iron pipe in its service territory has helped to significantly lower operational GHG emissions across its footprint. All these projects are executed while CenterPoint Energy invests in local communities and delivers reliable natural gas and electric service.

For more information about CenterPoint Energy's commitment to the environment, please visit the company's Environmental Responsibility page.

2020-04-22T05:00:00Z
CenterPoint Energy Foundation announces $1.5 million COVID-19 Relief Fund

Houston – April 6, 2020 – CenterPoint Energy today announced through its foundation the company will contribute $1.5 million to nonprofit organizations, agencies and causes that are committed to supporting those who have been disproportionately impacted by COVID-19. CenterPoint Energy's COVID-19 Relief Fund will include $1 million in direct contributions, as well as up to $500,000 in matching gifts for employees' contributions to qualifying 501(c)3 organizations.

"During this challenging time, the safety and well-being of CenterPoint Energy's customers, employees, contractors and communities we serve remain a top priority," said John W. Somerhalder II, interim president and chief executive officer of CenterPoint Energy. "We hope to assist the most vulnerable of our population who are experiencing significant challenges resulting from the COVID-19 crisis. Through the CenterPoint Energy Foundation's contributions to local nonprofit organizations, we will strive to make a positive difference in the communities where we live and work."

Qualifying nonprofit organizations in CenterPoint Energy's utility footprint of Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma, Texas will be eligible to receive grants. Organizations that are interested in applying for a CenterPoint Energy COVID-19 Relief Fund grant should visit www.centerpointenergy.com/cnpgives.

CenterPoint Energy continues to provide additional support to customers regarding their utility service. As previously announced, the company will support customers who may need payment assistance, arrangements or extensions during the COVID-19 crisis. In addition, the company has temporarily suspended natural gas service disconnections for nonpayment. For customers in southwest Indiana, this includes the temporary suspension of electric service disconnections.

Additional information about CenterPoint Energy's COVID-19 response can be found at centerpointenergy.com.

 

2020-04-06T05:00:00Z
CenterPoint Energy provides updates to Texas natural gas customers concerning service during the Coronavirus situation

Houston – March 25, 2020 – CenterPoint Energy continues to be committed to providing its customers throughout its service territory with safe and reliable service during the current Coronavirus situation. During this challenging time, CenterPoint Energy is committed to serving its customers and keeping them informed as the situation continues to evolve.

CenterPoint Energy's natural gas crews will continue to provide service by responding to calls and completing work orders. If you see CenterPoint Energy crews performing work, please avoid approaching them and continue to practice social distancing.

CenterPoint Energy will continue to support those natural gas customers who may need payment assistance, arrangements or extensions during the Coronavirus situation. In addition, the company has temporarily suspended natural gas service disconnections for nonpayment. There have been reports of scams following the COVID-19 outbreak, so customers are reminded that CenterPoint Energy would never call and demand payment over the phone or by prepaid debit card to avoid disconnection. Natural gas customers who would like to discuss payment options should call 1-800-752-8036 or visit the company's website.

"We are committed to the safety and well-being of our customers, employees, contractors and communities as the Coronavirus situation continues to evolve," said Tal Centers, CenterPoint Energy's vice president of Regional Operations in Texas. "CenterPoint Energy has activated its Pandemic Preparedness Plan and we continue to monitor updates and follow protocols from the Centers for Disease Control and Prevention (CDC), World Health Organization (WHO) and state and local officials. We are also working closely with all regulatory agencies, government entities and emergency management organizations across our service territory."

CenterPoint Energy has implemented additional measures to protect the safety and health of its customers, employees and contractors, as well as to prevent the spread of the Coronavirus. These safety measures include:

  • Equipping employees with additional personal protective equipment (PPE);
  • Directing field employees to attempt to resolve service issues without entering homes or businesses;
  • Following social distancing guidelines and wearing PPE if entering customers' homes, businesses and property to provide service;
  • Implementing a telework approach for employees who can perform their job responsibilities from home or a remote location;
  • Increasing cleaning and disinfecting frequency of facilities and vehicles;
  • Leveraging technology to minimize face-to-face contact and meetings; and
  • Emphasizing good hygiene, including washing and sanitizing hands
2020-03-25T05:00:00Z
CenterPoint Energy remains committed to health and safety of customers, employees, contractors and communities

Houston – March 16, 2020 – As a provider of essential energy services to customers across its footprint, CenterPoint Energy continues to monitor the impact of the Coronavirus (COVID-19). During this time, the company is reassuring its customers that comprehensive plans and processes are in place to help ensure safe, reliable energy delivery to electricity customers across greater Houston and southwest Indiana, as well as to natural gas customers in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas.

"We are committed to the safety and well-being of our customers, employees, contractors and communities as the Coronavirus situation continues to evolve," said John W. Somerhalder II , interim president and chief executive officer of CenterPoint Energy. "CenterPoint Energy has activated its Pandemic Preparedness Plan and we continue to monitor updates and follow protocols from the Centers for Disease Control and Prevention (CDC), World Health Organization (WHO) and state and local officials. We are also working closely with all regulatory agencies, government entities and emergency management organizations across our service territory to help ensure uninterrupted electricity and natural gas service delivery to our customers."

CenterPoint Energy will support customers who may need payment assistance, arrangements or extensions during the Coronavirus situation. In addition, the company has temporarily suspended natural gas service disconnections for nonpayment. For customers in southwest Indiana, this includes the temporary suspension of electric service disconnections.

CenterPoint Energy has implemented additional measures to protect the safety and health of its customers, employees and contractors, as well as to prevent the spread of the Coronavirus. These safety measures include:

  • Equipping employees with hand sanitizer in their vehicles as well as latex gloves and shoe covers – in addition to standard protective equipment;
  • Directing field employees to attempt to resolve service issues without entering homes or businesses;
  • Following social distancing guidelines and wearing protective equipment if entering customers' homes and businesses to provide service;
  • Implementing a telework approach for employees who can perform their job responsibilities from home or a remote location;
  • Increasing cleaning and disinfecting frequency of facilities and vehicles;
  • Leveraging technology to minimize face-to-face contact and meetings;
  • Emphasizing good hygiene, including washing and sanitizing hands;
  • Requiring employees to stay home if they are feeling sick;
  • Suspending international air travel and non-essential domestic air travel; and
  • Minimizing contact with visitors and others at company facilities.

CenterPoint Energy continues to provide regular updates to its employees and has established a Coronavirus information page on the company's intranet site, with resources and current prevention recommendations from official sources, such as the CDC and WHO.

2020-03-16T05:00:00Z
CenterPoint Energy statement regarding cut natural gas line in The Woodlands, Texas

HOUSTON – March 11, 2020 – A CenterPoint Energy natural gas line near the intersection of Research Forest and Aldine Bridge Drive in The Woodlands, Tex., was struck yesterday evening by a third-party contractor.

We have had well-trained, experienced crews on the scene since the line was struck, working to control the gas and ensure the area is safe. Crews continue to work as safely and quickly as possible to shut the natural gas off.

CenterPoint Energy appreciates the cooperation of Montgomery County Precinct 2 Commissioner, Charlie Riley; Montgomery County Precinct 3 Commissioner, James Noack; and associated local emergency officials with whom we've been working closely to ensure the area is safe.

We encourage the public to avoid the area near the intersection of Research Forest and Aldine Bridge Drive and plan for extra time. We will provide an update when the natural gas has been shut off and the area is safe.

Always be alert for the smell of natural gas. If you smell gas, leave the area immediately on foot and tell others to leave, too. Once safely away from the area, call 911 and CenterPoint Energy.

2020-03-11T05:00:00Z
CenterPoint Energy reports full-year 2019 earnings of $1.33 per diluted share; $1.79 earnings per diluted share on a guidance basis, excluding certain Vectren merger impacts and impairment charges

Houston - February 27, 2020 - CenterPoint Energy, Inc. (NYSE: CNP) today reported income available to common shareholders of $674 million, or $1.33 per diluted share, for the full-year 2019, compared with $333 million, or $0.74 per diluted share for the full-year 2018. On a guidance basis, full-year 2019 earnings were $1.79 per diluted share, excluding certain impacts associated with the Vectren merger (the merger) and non-cash impairment charges recorded at Energy Services and Midstream Investments. Full-year 2019 earnings, on a guidance basis, included $0.12 of favorable weather and one-time tax benefits. Full-year 2018 earnings, on a guidance basis and excluding certain impacts associated with the merger, were $1.60 per diluted share.

Fourth quarter 2019 earnings were $0.25 per diluted share, compared to $0.18 per diluted share for the fourth quarter of 2018.  On a guidance basis and excluding certain impacts associated with the merger and non-cash impairment charges, fourth quarter 2019 earnings were $0.45 per diluted share, compared to $0.36 per diluted share for the fourth quarter of 2018.

"I am very pleased with our 2019 results, driven by strong utility performance, primarily as a result of customer growth and disciplined cost management, as well as favorable weather and tax related outcomes," said John W. Somerhalder II, interim president and chief executive officer of CenterPoint Energy. "The recently announced agreements to sell our Energy Services and Infrastructure Services businesses will further sharpen the company's focus on our core utility businesses, improving our business profile and earnings quality, while at the same time strengthening our balance sheet and enhancing our investment grade credit quality."

  • Strong utility performance drives 2019 results well above upper end of EPS guidance basis range of $1.60 - $1.70
  • Sale of Energy Services and Infrastructure Services businesses
  • Announced 2020 Utility EPS guidance range of $1.10 - $1.20; 2020 Midstream Investments EPS expected range of $0.23 - $0.28

Business Segments

Houston Electric - Transmission & Distribution

The Houston electric - transmission & distribution segment reported operating income of $624 million for the full-year 2019, consisting of $590 million from the regulated electric transmission and distribution utility operations (TDU) and $34 million related to securitization bonds. Operating income for the TDU for 2019 includes $10 million of merger-related expenses.  Excluding merger-related expenses, 2019 TDU operating income was $600 million.

Operating income for 2018 was $623 million, consisting of $568 million from the TDU and $55 million related to securitization bonds. Excluding merger-related expenses, operating income for the TDU benefited primarily from rate relief, lower operation and maintenance expenses, customer growth and miscellaneous revenues, primarily related to right-of-way revenues. These benefits were partially offset by increased depreciation and amortization expense, lower usage, lower revenues related to the Tax Cuts and Jobs Act (TCJA) and lower equity return, primarily related to the annual true-up of transition charges.

Indiana Electric – Integrated

The Indiana electric – integrated segment reported operating income of $90 million for the full-year 2019. Operating income includes $21 million of merger-related expenses. These results are not comparable to 2018 as this segment was acquired in the merger in February 2019.

Natural Gas Distribution

The natural gas distribution segment reported operating income of $408 million for the full-year 2019. Operating income includes $55 million of merger-related expenses. Excluding merger-related expenses, 2019 natural gas distribution segment operating income was $463 million. Natural gas distribution segment operating income for the full-year 2018 was $266 million.

Excluding merger-related expenses, operating income increased $136 million due to the gas utilities acquired in the merger in February 2019. The remaining increase is primarily due to favorable weather and usage, driven by timing of a decoupling mechanism in Minnesota, rate relief, customer growth and lower operation and maintenance expenses. These increases were partially offset by increased depreciation and amortization expense.

Energy Services

The energy services segment reported operating income of $32 million for the full-year 2019, which included a mark-to-market gain of $39 million and a non-cash impairment charge of $48 million recorded for goodwill, compared with an operating loss of $47 million for 2018, which included a mark-to-market loss of $110 million. Excluding mark-to-market adjustments and the non-cash impairment charge, operating income was $41 million for the full-year 2019 compared to $63 million for 2018. Operating income, excluding mark-to-market adjustments and the non-cash impairment charge, decreased primarily as a result of a decrease in margin due to fewer opportunities to optimize natural gas supply costs in 2019 relative to 2018.

Infrastructure Services

The infrastructure services segment reported operating income of $95 million for the full-year 2019. Operating income includes $32 million of merger-related expenses. These results are not comparable to 2018 as this segment was acquired in the merger in February 2019.

Midstream Investments

The midstream investments segment reported $229 million of equity income for the full-year 2019, which included the company's share, $46 million, of the non-cash impairment charge Enable Midstream Partners, LP (Enable) recorded for goodwill.  Equity income for 2018 was $307 million. For further detail, please refer to Enable's investor materials provided during its 4th quarter earnings call on February 19, 2020.

Corporate and Other

The corporate and other segment reported an operating loss of $23 million for the full-year 2019, compared with an $11 million operating loss for 2018. Operating income in 2019 included $79 million of merger-related expenses. Operating income for 2018 included $46 million of merger-related expenses.

Earnings Outlook

To provide greater transparency on utility earnings, 2020 guidance will be presented in two components, a guidance basis Utility EPS range and a Midstream Investments EPS expected range.

  • 2020 guidance basis Utility EPS range of $1.10 - $1.20
  • 2020 - 2024 target of 5 - 7% compound annual guidance basis Utility EPS growth, using the 2020 range of $1.10 - $1.20 as the starting EPS
  • 2020 Midstream Investments EPS expected range is $0.23 - $0.28

Utility EPS Guidance Range

  • Utility EPS guidance range includes net income from Houston Electric, Indiana Electric and Natural Gas Distribution business segments, as well as after tax operating income from the Corporate and Other business segment.
  • The 2020 Utility EPS guidance range considers operations performance to date and assumptions for certain significant variables that may impact earnings, such as customer growth (approximately 2% for electric operations and 1% for natural gas distribution) and usage including normal weather, throughput, recovery of capital invested through rate cases and other rate filings, effective tax rates, financing activities and related interest rates, regulatory and judicial proceedings and anticipated cost savings as a result of the merger.  The Utility EPS guidance range also assumes an allocation of corporate overhead based upon its relative earnings contribution. Corporate overhead consists of interest expense, preferred stock dividend requirements and other items directly attributable to the parent along with the associated income taxes.
  • Utility EPS guidance excludes:
    • Certain integration and transaction-related fees and expenses associated with the merger
    • Severance costs
    • Midstream Investments and allocation of associated corporate overhead
    • Results related to Infrastructure Services and Energy Services prior to the anticipated closing of the sale of those businesses, including anticipated costs and impairment resulting from the sale of Infrastructure Services and Energy Services
    • Earnings or losses from the change in value of ZENS and related securities
    • Changes in accounting standards

In providing this 2020 guidance, CenterPoint Energy uses a non-GAAP measure of adjusted diluted earnings per share that does not consider the items noted above and other potential impacts, including unusual items, which could have a material impact on GAAP reported results for the applicable guidance period.  CenterPoint Energy is unable to present a quantitative reconciliation of forward looking adjusted diluted earnings per share because changes in the value of ZENS and related securities is not estimable as it is highly variable and difficult to predict due to various factors outside of management's control.

Midstream Investments EPS Expected Range
The 2020 Midstream Investments EPS expected range is $0.23 - $0.28. In providing this EPS range for Midstream Investments, the company assumes a 53.7 percent limited partner ownership interest in Enable and includes the amortization of its basis differential in Enable and assumes an allocation of CenterPoint Energy corporate overhead based upon Midstream Investments relative earnings contribution. The Midstream Investments EPS expected range takes into account such factors as Enable's most recent public outlook for 2020 dated Feb. 19, 2020, and effective tax rates. The company does not include other potential impacts such as any changes in accounting standards, impairments or Enable's unusual items.

2019 Q4 Guidance Tables

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 fiscal year ended December 31, 2019. A copy of that report is available on the company's website, under the Investors section. Investors and others should note that we may announce material information using SEC filings, press releases, public conference calls, webcasts, and the Investor Relations page of our website.  In the future, we will continue to use these channels to distribute material information about the company and to communicate important information about the company, key personnel, corporate initiatives, regulatory updates and other matters.  Information that we post on our website could be deemed material; therefore we encourage investors, the media, our customers, business partners and others interested in our company to review the information we post on our website.

Webcast of Earnings Conference Call

CenterPoint Energy's management will host an earnings conference call on Thursday, February 27, 2020, at 10:00 a.m. Central time/11:00 a.m. Eastern time. Interested parties may listen to a live audio broadcast of the conference call on the company's website under the Investors section. A replay of the call can be accessed approximately two hours after the completion of the call and will be archived on the website for at least one year.

2019 Q4 Financial Tables

Headquartered in Houston, Texas, CenterPoint Energy, Inc. is an energy delivery company with regulated utility businesses in eight states and a competitive energy businesses footprint in nearly 40 states. Through its electric transmission & distribution, power generation and natural gas distribution businesses, the company serves more than 7 million metered customers in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas. CenterPoint Energy's competitive energy businesses include natural gas marketing and energy-related services; energy efficiency, sustainability and infrastructure modernization solutions; and construction and repair services for pipeline systems, primarily natural gas. The company also owns 53.7 percent of the common units representing limited partner interests in Enable Midstream Partners, LP, a publicly traded master limited partnership that owns, operates and develops strategically located natural gas and crude oil infrastructure assets. With approximately 14,000 employees and approximately $35 billion in assets, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit 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.

Risks Related to CenterPoint Energy

Important factors that could cause actual results to differ materially from those indicated by the provided forward-looking information include risks and uncertainties relating to: (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 Enable 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 goodwill, long-lived asset or other than temporary impairment charges by or related to Enable; (F) the timing of payments from Enable's customers under existing contracts, including minimum volume commitment payments; (G) changes in tax status; and (H) access to debt and equity capital; (2) CenterPoint Energy's expected benefits of the merger with Vectren Corporation (Vectren) and integration, including the outcome of shareholder litigation filed against Vectren that could reduce anticipated benefits of the merger, as well as the ability to successfully integrate the Vectren businesses and to realize anticipated benefits and commercial opportunities; (3) industrial, commercial and residential growth in CenterPoint Energy's service territories and changes in market demand, including the demand for CenterPoint Energy's non-utility products and services and effects of energy efficiency measures and demographic patterns; (4) the outcome of the pending Houston Electric rate case; (5) timely and appropriate rate actions that allow recovery of costs and a reasonable return on investment; (6) future economic conditions in regional and national markets and their effect on sales, prices and costs; (7) weather variations and other natural phenomena, including the impact of severe weather events on operations and capital; (8) 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; (9) tax legislation, including the effects of the comprehensive tax reform legislation informally referred to as the Tax Cuts and Jobs Act (which includes any potential changes to interest deductibility) and uncertainties involving state commissions' and local municipalities' regulatory requirements and determinations regarding the treatment of excess deferred income taxes and CenterPoint Energy's rates; (10) CenterPoint Energy's ability to mitigate weather impacts through normalization or rate mechanisms, and the effectiveness of such mechanisms; (11) the timing and extent of changes in commodity prices, particularly natural gas and coal, and the effects of geographic and seasonal commodity price differentials; (12) the ability of CenterPoint Energy's and CERC's non-utility business operating in the Energy Services reportable segment to effectively optimize opportunities related to natural gas price volatility and storage activities, including weather-related impacts; (13) actions by credit rating agencies, including any potential downgrades to credit ratings; (14) changes in interest rates and their impact on CenterPoint Energy's costs of borrowing and the valuation of its pension benefit obligation; (15) problems with regulatory approval, legislative actions, construction, implementation of necessary technology or other issues with respect to major capital projects that result in delays or cancellations or in cost overruns that cannot be recouped in rates; (16) the availability and prices of raw materials and services and changes in labor for current and future construction projects; (17) local, state and federal legislative and regulatory actions or developments relating to the environment, including, among other things those related to global climate change, air emissions, carbon, waste water discharges and the handling and disposal of coal combustion residuals (CCR) that could impact the continued operation, and/or cost recovery of generation plant costs and related assets; (18) the impact of unplanned facility outages or other closures; (19) any direct or indirect effects on CenterPoint Energy's or Enable'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, ice, earthquakes, explosions, leaks, floods, droughts, hurricanes, tornadoes, pandemic health events or other occurrences; (20) CenterPoint Energy's ability to invest planned capital and the timely recovery of CenterPoint Energy's existing and future investments, including those related to the Indiana Electric's anticipated Integrated Resource Plan; (21) CenterPoint Energy's ability to successfully construct and operate electric generating facilities, including complying with applicable environmental standards and the implementation of a well-balanced energy and resource mix, as appropriate; (22) CenterPoint Energy's ability to control operation and maintenance costs; (23) the sufficiency of CenterPoint Energy's insurance coverage, including availability, cost, coverage and terms and ability to recover claims; (24) the investment performance of CenterPoint Energy's pension and postretirement benefit plans; (25) 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; (26) changes in rates of inflation; (27) inability of various counterparties to meet their obligations to CenterPoint Energy; (28) non-payment for CenterPoint Energy's services due to financial distress of its customers; (29) the extent and effectiveness of CenterPoint Energy's and Enable's risk management and hedging activities, including but not limited to, financial and weather hedges and commodity risk management activities; (30) timely and appropriate regulatory actions, which include actions allowing securitization, for any future hurricanes or natural disasters or other recovery of costs, including costs associated with Hurricane Harvey; (31) 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 the proposed sales of Infrastructure Services and CES, which CenterPoint Energy and Enable cannot assure will be completed or will have the anticipated benefits to CenterPoint Energy or Enable; (32) the recording of impairment charges, including any impairment associated with Infrastructure Services and CES; (33) the performance of projects undertaken by CenterPoint Energy's non-utility businesses and the success of efforts to realize value from, invest in and develop new opportunities and other factors affecting those non-utility businesses, including, but not limited to, the level of success in bidding contracts, fluctuations in volume and mix of contracted work, mix of projects received under blanket contracts, failure to properly estimate cost to construct projects or unanticipated cost increases in completion of the contracted work, changes in energy prices that affect demand for construction services and projects and cancellation and/or reductions in the scope of projects by customers and obligations related to warranties and guarantees; (34) acquisition and merger activities involving CenterPoint Energy or its competitors, including the ability to successfully complete merger, acquisition and divestiture plans; (35) CenterPoint Energy's or Enable's ability to recruit, effectively transition and retain management and key employees and maintain good labor relations; (36) the outcome of litigation; (37) the ability of retail electric providers (REPs), including REP affiliates of NRG Energy, Inc. and Vistra Energy Corp., formerly known as TCEH Corp., to satisfy their obligations to CenterPoint Energy and its subsidiaries; (38) changes in technology, particularly with respect to efficient battery storage or the emergence or growth of new, developing or alternative sources of generation; (39) the impact of alternate energy sources on the demand for natural gas; (40) the timing and outcome of any audits, disputes and other proceedings related to taxes; (41) the effective tax rates; (42) the transition to a replacement for the LIBOR benchmark interest rate; (43) the effect of changes in and application of accounting standards and pronouncements; and (44) other factors discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

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

In addition to presenting its financial results in accordance with generally accepted accounting principles (GAAP), including presentation of income available to common shareholders and diluted earnings per share, CenterPoint Energy also provides guidance based on adjusted income and adjusted diluted earnings per share, which are non-GAAP financial measures.  Generally, a non-GAAP financial measure is a numerical measure of a company's historical or future financial performance that excludes or includes amounts that are not normally excluded or included in the most directly comparable GAAP financial measure.

To provide greater transparency on utility earnings, CenterPoint Energy's 2020 guidance will be presented in two components, a guidance basis Utility EPS range and a Midstream Investments EPS expected range. The 2020 Utility EPS guidance range includes net income from Houston Electric, Indiana Electric and Natural Gas Distribution business segments, as well as after tax operating income from the Corporate and Other business segment. The 2020 Utility EPS guidance range considers operations performance to date and assumptions for certain significant variables that may impact earnings, such as customer growth (approximately 2% for electric operations and 1% for natural gas distribution) and usage including normal weather, throughput, recovery of capital invested through rate cases and other rate filings, effective tax rates, financing activities and related interest rates, regulatory and judicial proceedings and anticipated cost savings as a result of the merger.  The 2020 Utility EPS guidance range also assumes an allocation of corporate overhead based upon its relative earnings contribution. Corporate overhead consists of interest expense, preferred stock dividend requirements and other items directly attributable to the parent along with the associated income taxes. Utility EPS guidance excludes (a) certain integration and transaction-related fees and expenses associated with the merger, (b) severance costs, (c) Midstream Investments and associated allocation of corporate overhead, (d) results related to Infrastructure Services and Energy Services prior to the anticipated closing of the sale of those businesses, including anticipated costs and impairment resulting from the sale of Infrastructure Services and Energy Services, and (e) earnings or losses from the change in value of ZENS and related securities. In providing this guidance, CenterPoint Energy 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, which could have a material impact on GAAP reported results for the applicable guidance period.  CenterPoint Energy is unable to present a quantitative reconciliation of forward looking adjusted diluted earnings per share because changes in the value of ZENS and related securities is not estimable as it is highly variable and difficult to predict due to various factors outside of management's control.

The 2020 Midstream Investments EPS expected range assumes a 53.7 percent limited partner ownership interest in Enable and includes the amortization of the Company's basis differential in Enable and assumes an allocation of CenterPoint Energy corporate overhead based upon Midstream Investments relative earnings contribution. The Midstream Investments EPS expected range takes into account such factors as Enable's most recent public outlook for 2020 dated Feb. 19, 2020, and effective tax rates. The company does not include other potential impacts such as any changes in accounting standards, impairments or Enable's unusual items.

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

2020-02-27T06:00:00Z
CenterPoint Energy along with HomeServe USA bringing home protection plans to Louisiana

Houston – Feb. 3, 2020 – Today, CenterPoint Energy (NYSE: CNP) and HomeServe USA Corp. (HomeServe), a provider of emergency home repair programs to homeowners nationwide, are announcing an extension of their business relationship to bring home protection plans to CenterPoint Energy's Louisiana natural gas customers.  Since launching June 2018 in other markets, more than 250,000 CenterPoint Energy customers have already purchased a HomeServe plan and have saved more than $5 million in repair costs.

The program from HomeServe, introduced by CenterPoint Energy, will offer a suite of optional plans covering repairs to a variety of energy-consuming and home systems, including customer-owned natural gas lines, heating and cooling systems, interior and exterior electric lines, water heaters, and exterior water and sewer service lines.

The service plans are designed to protect homeowners from the inconvenience and unexpected expenses associated with repairs to these critical household systems. Another benefit is plans will help repair or maintain energy-consuming appliances, which will help them use energy more efficiently.

"CenterPoint Energy prides itself on being a trusted energy advisor, so we are pleased to work with HomeServe to provide our customers access to these new services," said Christe Singleton, Vice President of CenterPoint Energy's Louisiana Gas Operations. "CenterPoint Energy provides high-quality, highly rated energy delivery to our customers. In fact, J.D. Power has ranked us #1 in Customer Satisfaction with Residential Natural Gas Service in the South among Large Utilities, 3 Years in a Row.* These new  plans from HomeServe are a natural service extension, and we believe they will provide homeowners with a low-cost, peace-of mind option for unexpected repairs to covered systems."

The Gas Line service plan, for example, will offer homeowners protection against the expense and inconvenience of repairs to the customer-owned natural gas line from the CenterPoint Energy meter up to and including the connectors to each natural gas appliance inside the home. The plan would also cover repairs to the piping leading to connectors to natural gas appliances outside around the property, such as a natural gas grill or natural gas pool heater.

"HomeServe shares the same level of commitment to quality customer service as CenterPoint Energy," said John Kitzie, CEO of HomeServe. "Our cost-effective service plans provide a better way for customers to secure and pay for repairs through our reliable network of qualified local contractors."

For more information on these plans, call CenterPoint Energy at 833-273-4663 or visit ProtectYourPipes.com

*CenterPoint Energy received the highest score in the South Large segment of the J.D. Power 20172019 Gas Utility Residential Customer Satisfaction Studies (tied in 2017) of customers' satisfaction with their residential gas provider. Visit jdpower.com/awards

 

2020-02-03T06:00:00Z

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