HOUSTON, Aug. 3, 2018 - CenterPoint Energy, Inc. (NYSE: CNP) today reported a net loss of $75 million, or $0.17 per diluted share, for the second quarter of 2018, compared with net income of $135 million, or $0.31 per diluted share, for the second quarter of 2017. On a guidance basis and excluding $34 million of pre-tax costs associated with the pending merger with Vectren, second quarter 2018 earnings were $0.30 per diluted share, consisting of $0.20 from utility operations and $0.10 from midstream investments. Second quarter 2017 earnings on a guidance basis were $0.29 per diluted share, consisting of $0.20 from utility operations and $0.09 from midstream investments.
Operating income for the second quarter of 2018 was $187 million, compared with $240 million in the second quarter of 2017. For the second quarter of 2017 operating income was increased and other income decreased by $17 million in accordance with the retrospective adoption of the accounting standard for compensation-retirement benefits (ASU 2017-07). Equity income from midstream investments was $58 million for the second quarter of 2018, compared with $59 million for the second quarter of 2017.
"Our businesses, including our midstream investments, performed well and as expected this quarter. We remain on track to achieve the high end of our guidance range," said Scott M. Prochazka, president and chief executive officer of CenterPoint Energy. "At the same time, we are making solid progress on the approvals and conditions to close our pending merger with Vectren in the first quarter of 2019."
Business Segments
Electric Transmission & Distribution
The electric transmission & distribution segment reported operating income of $181 million for the second quarter of 2018, consisting of $167 million from the regulated electric transmission & distribution utility operations (TDU) and $14 million related to securitization bonds. Operating income for the second quarter of 2017 was $171 million, consisting of $151 million from the TDU and $20 million related to securitization bonds.
Operating income for the TDU benefited primarily from higher equity return related to the annual true-up of transition charges, rate relief and increased usage resulting from a return to more normal weather and customer growth. These benefits were partially offset by lower revenues reflecting the lower federal tax rate due to the Tax Cuts and Jobs Act (TCJA), higher operation and maintenance expenses, and higher depreciation and amortization expense.
The retrospective adoption of ASU 2017-07 resulted in an increase to electric transmission and distribution operating income and a corresponding decrease to other income of $7 million for the second quarter of 2017.
Natural Gas Distribution
The natural gas distribution segment reported operating income of $7 million for the second quarter of 2018, compared with $42 million for the second quarter of 2017. Operating income benefited from rate relief and customer growth. These increases were more than offset by higher operation and maintenance expenses, lower revenues reflecting the lower federal tax rate due to the TCJA, and higher depreciation and amortization expense. The second quarter of 2017 included $16 million of revenues from a decoupling mechanism to recover warmer than normal weather for the 2016-2017 winter season. In addition, the second quarter of 2017 benefited from $10 million of adjustments related to the Texas Gulf rate order.
The retrospective adoption of ASU 2017-07 resulted in an increase to natural gas distribution operating income and a corresponding decrease to other income of $5 million for the second quarter of 2017.
Energy Services
The energy services segment reported operating income of $15 million for the second quarter of 2018, which included a mark-to-market gain of $8 million, compared with operating income of $16 million for the second quarter of 2017, which included a mark-to-market gain of $6 million. Excluding mark-to-market adjustments, operating income was $7 million for the second quarter of 2018 compared with $10 million for the second quarter of 2017.
Midstream Investments
The midstream investments segment reported $58 million of equity income for the second quarter of 2018, compared with $59 million in the second quarter of 2017.
ZENS-Related Impact
In connection with AT&T Inc.'s acquisition of Time Warner Inc., CenterPoint Energy received $53.75 and 1.437 shares of AT&T Common for each share of Time Warner Common held, resulting in cash proceeds of $382 million and 10,212,945 shares of AT&T. In accordance with the terms of the Zero-Premium Exchangeable Subordinated Notes (ZENS), the company remitted $382 million to ZENS note holders in July 2018 as additional interest, which reduced the contingent principal amount of the ZENS. As a result, the company recorded a pre-tax loss of $242 million, which is included in Loss on indexed debt securities on the Statements of Consolidated Income.
Other Operations
The other operations segment reported an operating loss of $16 million for the second quarter of 2018, compared with operating income of $11 million in the second quarter of 2017. This decrease is primarily due to transaction costs related to the pending merger with Vectren.
Earnings Outlook
CenterPoint Energy anticipates achieving the high end of the $1.50 - $1.60 EPS guidance range for 2018, excluding costs associated with the pending merger with Vectren. These costs include integration planning and transaction-related fees and expenses. In addition, the company expects to issue debt and equity securities to fund the pending merger with Vectren in advance of closing and therefore 2018 is expected to have higher net interest expense and higher share count, the effects of which are not included in the EPS guidance range set forth above. This guidance is inclusive of Enable's net income guidance. The guidance range assumes ownership of 54.0 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 Energy 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 (other than those to fund the pending merger with Vectren), and regulatory and judicial proceedings to include regulatory action as a result of recent tax reform legislation.
Utility operations EPS includes all earnings except those related to Midstream Investments (utility operations EPS includes the Enable Series A Preferred Units).
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.
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|
Quarter Ended
|
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June 30, 2018
|
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June 30, 2017
|
|
Net Income
(in millions)
|
|
Diluted EPS
|
|
Net Income
(in millions)
|
|
Diluted EPS
|
|
|
|
|
|
|
|
|
|
Consolidated net income and diluted EPS as reported
|
$ (75)
|
|
$ (0.17)
|
|
$ 135
|
|
$ 0.31
|
|
Midstream Investments
|
(44)
|
|
(0.10)
|
|
(37)
|
|
(0.09)
|
|
Utility Operations (1)
|
(119)
|
|
(0.27)
|
|
98
|
|
0.22
|
|
|
|
|
|
|
|
|
|
Timing effects impacting CES(2):
|
|
|
|
|
|
|
|
|
Mark-to-market (gains) losses (net of taxes of $2 and $3)(3)
|
(6)
|
|
(0.01)
|
|
(3)
|
|
(0.01)
|
|
|
|
|
|
|
|
|
|
ZENS-related mark-to-market (gains) losses:
|
|
|
|
|
|
|
|
|
Marketable securities (net of taxes of $4 and $7) (3)(4)
|
(18)
|
|
(0.04)
|
|
(16)
|
|
(0.04)
|
|
Indexed debt securities (net of taxes of $54 and $4) (3)(5)
|
200
|
|
0.46
|
|
9
|
|
0.03
|
|
Utility operations earnings on an adjusted guidance basis
|
$ 57
|
|
$ 0.14
|
|
$ 88
|
|
$ 0.20
|
|
|
|
|
|
|
|
|
|
Adjusted net income and adjusted diluted EPS used in providing earnings guidance:
|
|
|
|
|
|
|
|
|
Utility Operations on a guidance basis
|
$ 57
|
|
$ 0.14
|
|
$ 88
|
|
$ 0.20
|
|
Midstream Investments
|
44
|
|
0.10
|
|
37
|
|
0.09
|
|
Consolidated on a guidance basis
|
$ 101
|
|
$ 0.24
|
|
$ 125
|
|
$ 0.29
|
|
|
|
|
|
|
|
|
|
Costs associated with the Vectren merger (net of taxes of $8) (3)
|
26
|
|
0.06
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
Utility Operations on a guidance basis, excluding costs associated with the Vectren merger
|
$ 83
|
|
$ 0.20
|
|
$ 88
|
|
$ 0.20
|
|
Midstream Investments
|
44
|
|
0.10
|
|
37
|
|
0.09
|
|
Consolidated on a guidance basis, excluding costs associated with the Vectren merger
|
$ 127
|
|
$ 0.30
|
|
$ 125
|
|
$ 0.29
|
|
|
|
|
|
|
|
|
|
(1) CenterPoint earnings excluding Midstream Investments
|
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(2) Energy Services segment
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(3) Taxes are computed based on the impact removing such item would have on tax expense
|
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(4) As of June 14, 2018, comprised of AT&T Inc. and Charter Communications, Inc. Prior to June 14, 2018, comprised of Time Warner Inc. and Charter Communications, Inc. Results prior to January 31, 2018 also included Time Inc.
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(5) 2018 includes amount associated with the acquisition of Time Warner Inc. by AT&T Inc.
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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 June 30, 2018. A copy of that report is available on the company's website, under the Investors section. Other filings the company makes with the SEC and certain documents relating to its corporate governance can also be found under the Investors section.
Webcast of Earnings Conference Call
CenterPoint Energy's management will host an earnings conference call on Friday, Aug. 3, 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 54.0 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. Enable Midstream Partners owns, operates and develops natural gas and crude oil infrastructure assets. With more than 8,000 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, go to 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.
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 Series A Preferred Units in certain circumstances and the value of CenterPoint Energy's interest in Enable, and factors that may have a material impact on such performance, cash distributions and value, including factors such as: (A) competitive conditions in the midstream industry, and actions taken by Enable's customers and competitors, including the extent and timing of the entry of additional competition in the markets served by Enable; (B) the timing and extent of changes in the supply of natural gas and associated commodity prices, particularly prices of natural gas and natural gas liquids (NGLs), the competitive effects of the available pipeline capacity in the regions served by Enable, and the effects of geographic and seasonal commodity price differentials, including the effects of these circumstances on re-contracting available capacity on Enable's interstate pipelines; (C) the demand for crude oil, natural gas, NGLs and transportation and storage services; (D) environmental and other governmental regulations, including the availability of drilling permits and the regulation of hydraulic fracturing; (E) recording of non-cash goodwill, long-lived asset or other than temporary impairment charges by or related to Enable; (F) changes in tax status; (G) access to debt and equity capital; and (H) the availability and prices of raw materials and services for current and future construction projects; (2) industrial, commercial and residential growth in CenterPoint Energy's service territories and changes in market demand, including the demand for CenterPoint Energy's non-rate regulated products and services and effects of energy efficiency measures and demographic patterns; (3) timely and appropriate rate actions that allow recovery of costs and a reasonable return on investment; (4) future economic conditions in regional and national markets and their effect on sales, prices and costs; (5) weather variations and other natural phenomena, including the impact of severe weather events on operations and capital; (6) state and federal legislative and regulatory actions or developments affecting various aspects of CenterPoint Energy's and Enable's businesses, including, among others, energy deregulation or re-regulation, pipeline integrity and safety and changes in regulation and legislation pertaining to trade, health care, finance and actions regarding the rates charged by our regulated businesses; (7) CenterPoint Energy's expected timing, likelihood and benefits of completion of CenterPoint Energy's pending merger with Vectren Corporation (Vectren), including the timing, receipt and terms and conditions of any required approvals by Vectren's shareholders and governmental and regulatory agencies that could reduce anticipated benefits or cause the parties to delay or abandon the pending transactions, as well as the ability to successfully integrate the businesses and realize anticipated benefits, the possibility that long-term financing for the pending transactions may not be put in place before the closing of the pending transactions and the risk that the credit ratings of the combined company or its subsidiaries may be different from what CenterPoint Energy expects; (8) 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; (9) CenterPoint Energy's ability to mitigate weather impacts through normalization or rate mechanisms, and the effectiveness of such mechanisms; (10) the timing and extent of changes in commodity prices, particularly natural gas, and the effects of geographic and seasonal commodity price differentials; (11) actions by credit rating agencies, including any potential downgrades to credit ratings; (12) changes in interest rates and their impact on CenterPoint Energy's costs of borrowing and the valuation of its pension benefit obligation; (13) problems with regulatory approval, construction, implementation of necessary technology or other issues with respect to major capital projects that result in delays or in cost overruns that cannot be recouped in rates; (14) local, state and federal legislative and regulatory actions or developments relating to the environment, including those related to global climate change; (15) the impact of unplanned facility outages; (16) 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, earthquakes, explosions, leaks, floods, droughts, hurricanes, pandemic health events or other occurrences; (17) CenterPoint Energy's ability to invest planned capital and the timely recovery of CenterPoint Energy's investment in capital; (18) CenterPoint Energy's ability to control operation and maintenance costs; (19) the sufficiency of CenterPoint Energy's insurance coverage, including availability, cost, coverage and terms and ability to recover claims; (20) the investment performance of CenterPoint Energy's pension and postretirement benefit plans; (21) 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; (22) changes in rates of inflation; (23) inability of various counterparties to meet their obligations to CenterPoint Energy; (24) non-payment for CenterPoint Energy's services due to financial distress of its customers; (25) the extent and effectiveness of CenterPoint Energy's risk management and hedging activities, including but not limited to, its financial and weather hedges and commodity risk management activities; (26) 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; (27) CenterPoint Energy's or Enable's potential business strategies and strategic initiatives, including restructurings, joint ventures and acquisitions or dispositions of assets or businesses (including a reduction of interests in Enable, if any, whether through CenterPoint Energy's decision to sell all or a portion of the Enable common units it owns in the public equity markets or otherwise, subject to certain limitations), which CenterPoint Energy cannot assure will be completed or will have the anticipated benefits to us or Enable; (28) acquisition and merger activities involving CenterPoint Energy or its competitors, including the ability to successfully complete merger, acquisition or divestiture plans; (29) CenterPoint Energy's or Enable's ability to recruit, effectively transition and retain management and key employees and maintain good labor relations; (30) the outcome of litigation; (31) the ability of retail electric providers (REPs), including REP affiliates of NRG and Vistra Energy Corp., formerly known as TCEH Corp., to satisfy their obligations to CenterPoint Energy and its subsidiaries; (31) the ability of GenOn Energy, Inc. (formerly known as RRI Energy, Inc., Reliant Energy and RRI), a wholly-owned subsidiary of NRG Energy, Inc. (NRG), and its subsidiaries, currently the subject of bankruptcy proceedings, to satisfy their obligations to CenterPoint Energy, including indemnity obligations; (33) changes in technology, particularly with respect to efficient battery storage or the emergence or growth of new, developing or alternative sources of generation; (34) the timing and outcome of any audits, disputes and other proceedings related to taxes; (35) the effective tax rates; (36) the effect of changes in and application of accounting standards and pronouncements; and (37) other factors discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, CenterPoint Energy's Quarterly Report on Form 10-Q for the quarters ended March 31, 2018, and June 30, 2018, and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.
Risks Related to the Merger
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 risk that Vectren may be unable to obtain shareholder approval for the proposed transactions, (2) the risk that CenterPoint Energy or Vectren may be unable to obtain governmental and regulatory approvals required for the proposed transactions, or that required governmental and regulatory approvals or agreements with other parties interested therein may delay the proposed transactions or may be subject to or impose adverse conditions or costs, (3) the occurrence of any event, change or other circumstances that could give rise to the termination of the proposed transactions or could otherwise cause the failure of the proposed transactions to close, (4) the risk that a condition to the closing of the proposed transactions or the committed financing may not be satisfied, (5) the failure to obtain, or to obtain on favorable terms, any equity, debt or other financing necessary to complete or permanently finance the proposed transactions and the costs of such financing, (6) the outcome of any legal proceedings, regulatory proceedings or enforcement matters that may be instituted relating to the proposed transactions, (7) the receipt of an unsolicited offer from another party to acquire assets or capital stock of Vectren that could interfere with the proposed transactions, (8) the timing to consummate the proposed transactions, (9) the costs incurred to consummate the proposed transactions, (10) the possibility that the expected cost savings, synergies or other value creation from the proposed transactions will not be realized, or will not be realized within the expected time period, (11) the risk that the companies may not realize fair values from properties that may be required to be sold in connection with the merger, (12) the credit ratings of the companies following the proposed transactions, (13) disruption from the proposed transactions making it more difficult to maintain relationships with customers, employees, regulators or suppliers, and (14) the diversion of management time and attention on the proposed transactions.
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 net income and diluted earnings per share, CenterPoint Energy also provides guidance based on adjusted net 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. CenterPoint Energy's adjusted net income and adjusted diluted earnings per share calculation excludes from net income and diluted earnings per share, respectively, the impact of ZENS and related securities and mark-to-market gains or losses resulting from the company's Energy Services business. CenterPoint Energy is unable to present a quantitative reconciliation of forward looking adjusted net income and adjusted diluted earnings per share because changes in the value of ZENS and related securities and mark-to-market gains or losses resulting from the company's Energy Services business are not estimable.
Management evaluates the company's financial performance in part based on adjusted net income and adjusted diluted earnings per share. We believe 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 net 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, net income 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.
Additional Information and Where to Find It
In connection with the pending transactions, Vectren filed a definitive proxy statement with the SEC on July 16, 2018, which was mailed or otherwise provided to its shareholders. WE URGE INVESTORS TO READ THE PROXY STATEMENT AND THESE OTHER MATERIALS FILED WITH THE SEC CAREFULLY BEFORE MAKING ANY VOTING OR INVESTMENT DECISION BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE PENDING MERGER. Investors are able to obtain free copies of the proxy statement and other documents that will be filed by Vectren with the SEC at http://www.sec.gov, the SEC's website, or from Vectren's website (http://www.vectren.com) under the tab, "Investors" and then under the heading "SEC Filings." Security holders may also read and copy any reports, statements and other information filed by Vectren with the SEC, at the SEC public reference room at 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 or visit the SEC's website for further information on its public reference room.
Participants in the Solicitation
CenterPoint Energy, Vectren and certain of their respective directors, executive officers and other persons may be deemed to be participants in the solicitation of proxies from Vectren's shareholders with respect to the pending transactions. Information regarding the directors and executive officers of CenterPoint Energy is available in its definitive proxy statement for its 2018 annual meeting, filed with the SEC on March 15, 2018, and information regarding the directors and executive officers of Vectren is available in its definitive proxy statement for its 2018 annual meeting, filed with the SEC on March 22, 2018. More detailed information regarding the identity of potential participants, and their direct or indirect interests, by securities, holdings or otherwise, were set forth in the proxy statement and other materials when they were filed with the SEC in connection with the pending transaction.
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CenterPoint Energy, Inc. and Subsidiaries
|
|
|
Statements of Consolidated Income
|
|
|
(Millions of Dollars)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2018
|
|
2017 (1)
|
|
2018
|
|
2017 (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
Utility revenues
|
|
$ 1,341
|
|
$ 1,222
|
|
$ 3,235
|
|
$ 2,768
|
|
|
Non-utility revenues
|
|
845
|
|
921
|
|
2,106
|
|
2,110
|
|
|
Total
|
|
2,186
|
|
2,143
|
|
5,341
|
|
4,878
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
Utility natural gas
|
|
188
|
|
150
|
|
825
|
|
600
|
|
|
Non-utility natural gas
|
|
790
|
|
882
|
|
2,063
|
|
2,011
|
|
|
Operation and maintenance
|
|
578
|
|
518
|
|
1,147
|
|
1,061
|
|
|
Depreciation and amortization
|
|
342
|
|
254
|
|
656
|
|
480
|
|
|
Taxes other than income taxes
|
|
101
|
|
99
|
|
212
|
|
195
|
|
|
Total
|
|
1,999
|
|
1,903
|
|
4,903
|
|
4,347
|
|
|
Operating Income
|
|
187
|
|
240
|
|
438
|
|
531
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
Gain on marketable securities
|
|
22
|
|
23
|
|
23
|
|
67
|
|
|
Loss on indexed debt securities
|
|
(254)
|
|
(13)
|
|
(272)
|
|
(23)
|
|
|
Interest and other finance charges
|
|
(91)
|
|
(77)
|
|
(169)
|
|
(155)
|
|
|
Interest on securitization bonds
|
|
(14)
|
|
(20)
|
|
(30)
|
|
(40)
|
|
|
Equity in earnings of unconsolidated affiliates
|
|
58
|
|
59
|
|
127
|
|
131
|
|
|
Other - net
|
|
4
|
|
(1)
|
|
7
|
|
(1)
|
|
|
Total
|
|
(275)
|
|
(29)
|
|
(314)
|
|
(21)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before Income Taxes
|
|
(88)
|
|
211
|
|
124
|
|
510
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax Expense (Benefit)
|
|
(13)
|
|
76
|
|
34
|
|
183
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
|
|
$ (75)
|
|
$ 135
|
|
$ 90
|
|
$ 327
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Restated to reflect the adoption of ASU 2017-07.
|
|
|
|
|
|
|
|
|
|
|
|
Reference is made to the Combined Notes to Unaudited Condensed Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.
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Recent News
In celebration of Natural Gas Utility Workers Day, CenterPoint Energy honors team members who work every day to serve customers and communities
Houston – March 18, 2025 – Every year, March 18 is recognized as Natural Gas Utility Workers Day, which is a moment to pause and honor the important role natural gas utility workers play in serving as emergency responders and keeping natural gas safely flowing to the businesses and homes in the many communities CenterPoint Energy is privileged to serve. CenterPoint honors the company's employees and those who work throughout the natural gas industry for their tireless work in providing safe, reliable and resilient service to those who rely on natural gas.
CenterPoint's approximately 3,500 natural gas utility workers play a critical role in installing and maintaining natural gas infrastructure such as pipelines and meters, supporting the delivery of energy service to customers, educating the public on natural gas safety and adhering to rigorous safety standards to protect their communities and the environment.
“Our natural gas utility workforce keeps safety at the forefront of all they do. Whether installing natural gas service or responding to emergency calls from customers, our workers focus on delivering resilient, readily available energy solutions for customers. No matter the temperature outside nor the time of day, our natural gas workers are there to help meet the needs of our customers and communities to keep them safe, maintain warmth and enable possibilities to support business needs. We honor and celebrate natural gas utility workers, not just today, but for the work they do every day to help keep us all safe," said Richard Leger, CenterPoint's Senior Vice President, Gas Business.
At CenterPoint, natural gas utility workers serve more than 4.3 million customers across six states, monitor and maintain more than 75,000 miles of distribution pipeline and deploy advanced leak detection technologies to monitor more than 80% of the company's natural gas assets.
In 2024 alone, the company's natural gas utility workers helped:
- Replace more than 470 miles of pipeline to help advance efforts to modernize the company's natural gas distribution systems using modern construction materials and installation methods, including efforts to replace cast iron infrastructure.
- Deploy more than 250,000 natural gas smart meters across the company's service area, which include enhanced safety and communications features.
- Complete more than 2.5 million locates of the company's natural gas facilities, which help customers and community members dig safely and mitigate potential service disruptions.
Tips for customers to stay safe
Safety is CenterPoint's top priority. In addition to the company's employees' commitment to working safely, the company would like to remind customers to always keep natural gas safety top of mind by:
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Calling before your dig: Anyone planning a project that requires digging should contact 811 at least two days prior to their work starting to have underground utilities located at no cost.
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Learning to recognize a natural gas leak by using one's eyes, ears and noses:
- Look for signs of a natural gas leak including persistent bubbling in standing water and discolored or dead vegetation around a pipeline.
- Listen for any unusual noises such as whistling, hissing or roaring sounds.
- Smell for the distinctive, strong odor, often compared to rotten eggs or sulfur from mercaptan which is added to natural gas for safety detection purposes.
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Immediately reporting a suspected natural gas leak: If there's a “rotten egg" odor of natural gas present, immediately leave on foot, go to a safe location and call both 911 and CenterPoint Energy. Don't use electric switches and outlets, phones (including cell phones), drive or start a car or do anything that could cause a spark inside or close to the location.
To learn more about CenterPoint's commitment to natural gas safety, visit
CenterPointEnergy.com/Safety.
Images associated with this release can be found at:
https://cnplibrary.canto.com/b/UJQKH. These photos are made available courtesy of CenterPoint Energy.
CenterPoint Energy Taking Safety Actions to Address Increased Wildfire Risk in Parts of the Greater Houston Area
Red Flag Warning in effect for large portions of Texas and the Greater Houston area from noon to 9 p.m. on Saturday; high wind gusts, low humidity and fire risk anticipated
CenterPoint has taken a series of actions to prepare equipment and approximately 1,000 workers ready to respond today
Company continues to communicate with customers about the potential for temporary outages in some areas due to wildfire conditions
HOUSTON, March 15, 2025 - CenterPoint Energy is taking a series of precautionary actions to help protect customers and communities and address elevated wildfire risk in parts of the Greater Houston area, as the National Weather Service has issued a Red Flag Warning from noon until 9 p.m. today. CenterPoint has actively prepared for potentially dangerous weather conditions, including high wind gusts, dry fuels and low humidity, by conducting pre-inspections of electric and natural gas equipment, adjusting power line safety settings in higher-risk areas, communicating with customers and working closely with local emergency agencies. Today, CenterPoint has approximately 1,000 line and vegetation workers prepared to respond to the evolving weather conditions.
Over the last day, CenterPoint has notified customers in the Cypress, Fort Bend and Katy areas through the company's Power Alert Service about the possibility that extreme weather and wind conditions could result in some temporary safety outages this afternoon or tonight.
"While we have had some precipitation with the passing front this morning, we must remain vigilant. As fire weather conditions quickly evolved and escalated across the state, CenterPoint has been actively preparing for potential impacts to the system and is ready to respond to the heightened risk today. Over the last several days, our teams have completed a series of actions to help protect our customers and communities, including inspecting critical equipment, clearing hazardous vegetation near power lines, adjusting safety settings in higher-risk areas and pre-positioning crews to quickly restore power if temporary safety outages occur. We will continue to keep customers informed of our efforts and how they can stay prepared before and during extreme weather," said Don Daigler, Senior Vice President, Emergency Planning & Response.
Key Actions to Help Keep Customers Safe
CenterPoint's safety preparations over the last several days include the following key actions:
- Inspecting and Hardening Key Power Lines: Inspecting power lines in areas of heightened fire risk, clearing hazardous vegetation near power lines and conducting repairs where needed, ahead of potential extreme weather.
- Inspecting Natural Gas Facilities: Inspecting gas facilities in areas of heightened fire risk and clearing hazardous vegetation near facilities ahead of potential extreme weather.
- Adjusting Safety Settings: Adjusting the settings on some power lines for safety between noon and 9 p.m. today.
- Bringing on Additional Crews to Respond: Positioning CenterPoint crews and additional contractors to respond to any power outages or natural gas service interruptions that may occur. Additional resources will be utilized to safely restore service as quickly as possible when conditions allow.
- Coordinating with Local Emergency Partners: Proactively sharing information with state, county and local leaders.
- Communicating with Customers: Proactively communicating with approximately 330,000 customers in the Cypress, Fort Bend and Katy areas by phone, text or email about the potential for temporary safety outages due to high fire danger.
Important Safety Tips for Customers
CenterPoint encourages all customers to stay informed about weather conditions and make a plan to stay safe, including during a potential power outage. Customers can also get the latest information on CenterPoint's preparedness and response efforts and view important safety tips by visiting CenterPointEnergy.com/StormCenter. Additional preparation and safety tips are available at Ready.gov.
How to Stay Informed: Sign Up for PAS
CenterPoint electric customers are encouraged to enroll in the company's Power Alert Service® to receive outage details, estimated restoration times and customer-specific restoration updates by phone call, text or email. Customers can also stay up to date with CenterPoint's new and improved, cloud-based Outage Tracker, available in English and Spanish, which allows customers to see outages by county, city and zip code.
Customers can also follow @CenterPoint_TX to receive the most up-to-date information on the company's operations in the Greater Houston area and across Texas.
For the latest weather information for the Greater Houston area, view updates from the National Weather Service Forecast Office in Houston/Galveston at weather.gov/hgx.
For more information, contact:
Communications
Media.Relations@CenterPointEnergy.com
SOURCE CenterPoint Energy
CenterPoint Energy assessing damage, restoring power following overnight storms in southwestern Indiana
Evansville, Ind. – March 15, 2025 – CenterPoint Energy crews are actively assessing damage and making repairs to its electric system after severe storms moved through southwestern Indiana overnight. The company's natural gas system did not experience any major impacts. The storm system brought wind gusts up to 60 mph, with higher gusts reported in some areas, resulting in impacts across the company's electric system. As of 2:30 p.m., approximately 1,600 customers remain without power.
CenterPoint's restoration efforts underway
Damage assessments remain ongoing, and crews are focused on downed power lines, damaged poles and other storm-related impacts to the company's electric system.
According to the National Weather Service, more rain and scattered thunderstorms are expected Saturday. Due to these weather events, the outage count is likely to continue to change throughout the day. Additionally, outage numbers may shift as crews isolate sections of the system for repairs or identify new issues requiring additional work.
“Crews are making steady progress, and we appreciate our customers' patience as we work through the remaining outages," said Shane Bradford, CenterPoint's Vice President, Indiana Electric. “As weather continues to move through the area, restoration may be delayed as crews pause until safe to continue working, however, we remain focused on safely restoring power to every impacted customer as quickly as possible."
As restoration progresses and weather conditions improve, efforts will transition from large-scale outages affecting multiple customers to localized outages affecting smaller numbers of customers. Some of these repairs require extensive work, such as replacing broken poles or restoring service to individual customers who have damage to customer-owned electrical equipment.
What customers need to know about power restoration and repairs
When restoring power after service interruptions, CenterPoint follows a prioritization process that begins with critical infrastructure, followed by repairs that restore service to the greatest number of customers before addressing individual outages.
Additionally, some customers may experience delays if repairs are needed at their home or business. One common issue after storms is damage to a weatherhead—the point where power enters a home—which is customer-owned equipment. If a weatherhead is damaged, customers must have a licensed electrician make necessary repairs before CenterPoint can restore service. After repairs are completed, customers should call 800-227-1376 to request reconnection.
Safety tips
CenterPoint encourages customers to take steps to prepare for severe weather:
- Downed power line safety: Stay at least 35 feet away from downed power lines and report them by calling 800-227-1376.
- Work crew safety: Be cautious around work crews and give them plenty of room to safely assess damage and make repairs.
- Generator safety: Never connect a portable electric generator directly to a building's electrical system during a power outage; electricity could back-feed into the power lines, potentially endangering CenterPoint workers. Only use a portable generator in a well-ventilated area and never run it inside or in a garage to avoid carbon monoxide fumes, which can be deadly.
- Call before digging: Call 811 to locate utility lines prior to digging on a property.
Electric customers encouraged to enroll in Power Alert Service®
Customers are encouraged to enroll in Power Alert Service® to receive outage details, estimated restoration times, as available or determined, and customer-specific restoration updates in the event of severe weather. With the option to receive updates via phone call, text or email, Power Alert Service® helps keep customers informed of restoration progress during an outage event.
Customers can get storm-related electric, natural gas and flooding safety tips at CenterPointEnergy.com/StormCenter.
CenterPoint Energy returns to normal operations as NWS Red Flag Warning expires, weather and wind threat ends for Greater Houston region
Houston – March 15, 2025 – CenterPoint Energy is returning to normal operations as the National Weather Service's Red Flag Warning and risks of fire weather and strong wind end for the Greater Houston area. The company's system performed well, with less than one percent of customers experiencing an outage throughout today's high wind gusts.
Over the last several days, CenterPoint actively prepared for potentially dangerous weather conditions by conducting pre-inspections of electric and natural gas equipment, adjusting power line safety settings in higher-risk areas, communicating with customers and working with local emergency agencies.
Key Actions to Help Keep Customers Safe
Leading up to today's Red Flag Warning, CenterPoint's safety preparations included the following key actions:
- Inspected and Hardened Key Power Lines: Inspected power lines in areas of heightened fire risk, cleared hazardous vegetation near power lines and conducted repairs where needed, ahead of potential extreme weather.
- Inspected Natural Gas Facilities: Inspected gas facilities in areas of heightened fire risk and cleared hazardous vegetation near facilities ahead of potential extreme weather.
- Adjusted Safety Settings: Adjusted the settings on some power lines for safety between noon and 9 p.m. today.
- Brought on Additional Crews to Respond: Positioned CenterPoint crews and additional contractors to respond to any power outages or natural gas service interruptions that may occur.
- Coordinated with Local Emergency Partners: Proactively shared information with state, county and local leaders.
- Communicated with Customers: Proactively communicated with approximately 330,000 customers in the Cypress, Fort Bend and Katy areas by phone, text or email about the potential for temporary safety outages due to high fire danger.
“We'd like to thank our customers for their patience as some might have experienced temporary outages today as we took the necessary precautions to protect the community and our electric system from the fire weather conditions," said Tony Gardner, Senior Vice President and Chief Customer Officer. “While today's weather risk has passed, we encourage customers to take this opportunity to enroll in the company's Power Alert Service® and verify contact information so that when the next weather event might impact Greater Houston area, CenterPoint can contact you with important information regarding your electric service."
CenterPoint electric customers are encouraged to enroll in the company's Power Alert Service® to receive outage details, estimated restoration times and customer-specific restoration updates by phone call, text or email.
Customers can also follow @CenterPoint_TX to receive the most up-to-date information on the company's operations in the Greater Houston area and across Texas.
CenterPoint Energy working to restore remaining customers out from overnight severe weather
Evansville, Ind. – March 15, 2025 – CenterPoint Energy crews have completed significant repairs to its electric system after severe storms moved through southwestern Indiana Friday night into Saturday morning. As of 9:30 p.m., approximately 200 customers remain without power. With nearly all customers restored, the majority of those still out will remain without service overnight as crews continue addressing the final localized outages.
“Crews have worked tirelessly throughout the day to restore power to the majority of customers impacted by this weekend's severe weather, and we appreciate their patience," said Shane Bradford, CenterPoint's Vice President, Indiana Electric. “As we continue the final phase of restoration, our teams will focus on the remaining smaller and individual outages and will continue working overnight and into Sunday until service is restored to all customers."
Working through intermittent rain, gusty winds and occasional lightning throughout the day, crews safely repaired extensive storm damage, including downed power lines, damaged poles and other storm-related impacts to the company's electric system.
“Our internal and contracted crews faced challenging conditions today while keeping safety at the forefront. We appreciate their dedication as they worked to restore service to our customers," Bradford added.
At this stage, most of the remaining outages are localized, affecting smaller numbers of customers. Some of these repairs require extensive work, such as replacing broken poles or restoring service to individual customers who have damage to customer-owned electrical equipment.
Customers may experience delays if repairs are needed at their home or business. One common issue after storms is damage to a weatherhead—the point where power enters a home—which is customer-owned equipment. If a weatherhead is damaged, customers must have a licensed electrician make necessary repairs before CenterPoint can restore service. After repairs are completed, customers should call 800-227-1376 to request reconnection.
Customers can stay informed on remaining updates by following CenterPoint on Facebook and X (formerly Twitter).
