Houston - Feb. 22, 2018 -
CenterPoint Energy, Inc. (NYSE: CNP) today reported full-year 2017 net income of $1,792 million, or $4.13 per diluted share, compared to net income of $432 million, or $1.00 per diluted share in 2016.
On a guidance basis, full-year 2017 earnings were $3.93 per diluted share, which includes a one-time tax benefit of $1,113 million related to the Tax Cuts and Jobs Act (TCJA) federal income tax rate reduction. Excluding the tax benefit, on a guidance basis, full-year 2017 earnings were $1.37 per diluted share, consisting of $0.99 from utility operations and $0.38 from midstream investments. Full-year 2016 earnings on a guidance basis were $1.16 per diluted share, consisting of $0.88 from utility operations and $0.28 from midstream investments.
Fourth quarter 2017 earnings were $2.99 per diluted share, compared to $0.23 per diluted share for the fourth quarter of 2016. Excluding the tax benefit, on a guidance basis, fourth quarter 2017 earnings were $0.33 per diluted share, compared to fourth quarter 2016 earnings of $0.26 per diluted share.
"I am very pleased with our performance in 2017. We had strong results and delivered more than 18 percent year-over-year EPS growth on a guidance basis, excluding the tax benefit," said Scott M. Prochazka, president and chief executive officer of CenterPoint Energy. "We continue to invest significant capital in our businesses to support safety, customer growth, reliability projects, and infrastructure programs."
Electric Transmission & Distribution
The electric transmission & distribution segment reported full-year 2017 operating income of $610 million, consisting of $535 million from the regulated electric transmission & distribution utility operations (TDU) and $75 million related to securitization bonds. Operating income for the same period of 2016 was $628 million, consisting of $537 million from the TDU and $91 million related to securitization bonds.
Full-year 2017 operating income for the TDU benefited from rate relief and customer growth with the addition of nearly 41,000 customers. These increases were more than offset by lower equity return, higher depreciation, higher operation and maintenance expenses, lower usage and lower miscellaneous revenues.
Natural Gas Distribution
The natural gas distribution segment reported full-year 2017 operating income of $328 million compared with $303 million in 2016.
Full-year 2017 operating income for natural gas distribution improved as a result of rate relief, higher transportation revenues, customer growth with the addition of more than 30,000 customers, and favorable labor and benefits expenses resulting primarily from the recording of a regulatory asset to recover prior postretirement expenses in future rates established in the Texas Gulf rate order. These improvements were partially offset by higher operation and maintenance expenses and increased depreciation and amortization.
The energy services segment reported full-year 2017 operating income of $125 million, which included a mark-to-market gain of $79 million, compared with $20 million in 2016, which included a mark-to-market loss of $21 million. Excluding mark-to-market adjustments, operating income was $46 million in 2017 and $41 million in 2016. The increase in operating income was primarily due to increased margin associated with increased throughput in 2017.
The midstream investments segment reported full-year 2017 equity income of $265 million, compared to equity income of $208 million in 2016.
CenterPoint Energy expects earnings on a guidance basis for 2018 in the range of $1.50 - $1.60 per diluted share, inclusive of Enable's net income guidance of $355 - $435 million announced on Enable Midstream's fourth-quarter earnings call on Feb. 20, 2018. The guidance range assumes ownership of 54.1 percent of the common units representing limited partner interests in Enable Midstream and includes the amortization of CenterPoint Energy's basis differential in Enable Midstream and effective tax rates. CenterPoint does not include other potential Enable Midstream impacts on guidance, such as any changes in accounting standards or unusual items.
The guidance range considers utility operations performance to date and certain significant variables that may impact earnings, such as weather, throughput, commodity prices, effective tax rates, financing activities, and regulatory and judicial proceedings to include regulatory action as a result of recent tax reform legislation.
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, earnings or losses from the change in the value of the ZENS securities and the related stocks, or the timing effects of mark-to-market accounting in the company's Energy Services business.
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 Dec. 31, 2017. 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 Thursday, Feb. 22, 2018, 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.
CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution and energy services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. The company also owns 54.1 percent of the common units representing limited partner interests in Enable Midstream Partners, a publicly traded master limited partnership it jointly controls with OGE Energy Corp., which owns, operates and develops natural gas and crude oil infrastructure assets. With nearly 8,000 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, please visit