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.
|
|
Quarter Ended
|
|
June 30, 2018
|
|
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
|
|
(2) Energy Services segment
|
|
(3) Taxes are computed based on the impact removing such item would have on tax expense
|
|
(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.
|
|
(5) 2018 includes amount associated with the acquisition of Time Warner Inc. by AT&T Inc.
|
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.
|
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.
|
|
CenterPoint Energy, Inc. and Subsidiaries
|
|
Selected Data From Statements of Consolidated Income
|
|
(Millions of Dollars, Except Share and Per Share Amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Six Months Ended
|
|
|
|
Recent News
CenterPoint Energy teams monitoring severe storms forecasted for southwestern Indiana and preparing for potential impacts
The company is executing preparedness actions and mobilizing resources ahead of storms to support restoration efforts
Customers encouraged to stay safe and prepare emergency plans ahead of storms
EVANSVILLE, Ind. – March 10, 2026 – CenterPoint Energy is monitoring for potentially severe thunderstorm forecasted across the region and preparing for potential impacts from storms expected to move through southwestern Indiana Tuesday afternoon through Wednesday. According to the National Weather Service, damaging winds and isolated tornadoes are possible.
The company has pre-staged crews and equipment across its service territory to respond safely and quickly if needed. CenterPoint is also coordinating with government officials on storm readiness and response and sharing safety and preparedness information directly with customers.
“Our Emergency Preparedness and Response team has been monitoring the potential for severe storms and our teams are fully prepared and stand ready to respond," said Mike Roeder, President of CenterPoint Energy Indiana. “We encourage our customers to stay alert in anticipation of changing weather conditions and take steps now to prepare.
CenterPoint encourages customers to prepare for severe weather:
- Track outages: Bookmark Outage Tracker (available in English & Spanish and mobile-friendly) to see outage information in your area.
- Stay safe: Visit Ready.gov for storm safety tips.
Follow us: Real-time updates will be available on X and at CenterPointEnergy.com/ActionCenter.
Midweek Weather Impacts: CenterPoint Energy actively monitoring and preparing ahead of new wave of severe storm potential across the Greater Houston area; company activates Emergency Operations Center
HOUSTON – March 10, 2026 – As a new week begins, so does the potential for severe weather impacts and CenterPoint Energy is proactively activating its Emergency Operations Center. The company continues to diligently monitor forecasts, coordinate with emergency management partners and position resources to be prepared to respond to potential impacts to electric and natural gas service.
“Our Emergency Preparedness and Response team has been monitoring the potential for strong and potentially severe thunderstorms by midweek," said Matt Lanza, CenterPoint's Manager of Meteorology. “We have proactively activated our Emergency Operations Center and crews will be fully prepared for the possibility of another round of severe weather this week and stand ready to respond. We will continue to actively monitor for any severe weather and urge our customers to stay alert in anticipation of quickly changing weather conditions."
Preparing for Severe Weather: Key Actions
As part of its storm preparedness efforts, CenterPoint is taking the following actions:
-
Activating storm readiness plan: CenterPoint's Emergency Preparedness and Response team has activated its storm preparedness efforts.
-
Readying the company's resources:
More than 1,400 personnel are executing preparedness actions and will remain ready to support potential restoration efforts throughout the week.
-
Monitoring severe weather 24/7: The Meteorology team continues to track weather forecast developments, and the company is updating response efforts as conditions evolve.
-
Coordinating with local officials: CenterPoint is providing updates to local officials and emergency management partners.
“CenterPoint was prepared to respond to this past weekend's storms, and we are maintaining our readiness posture for this week's forecasted potentially severe weather. We know that any outage is one too many for customers, and we are working hard to pre-position resources across our system to be ready to respond safely and as quickly as possible if outages from weather occur," said Jason Fabre, CenterPoint's Vice President, Special Response Team and Incident Commander. “We're committed to open communication and working safely and quickly to restore service."
What customers should do:
About CenterPoint Energy, Inc.
CenterPoint Energy, Inc. (NYSE: CNP) is a multi-state electric and natural gas delivery company serving more than 7 million metered customers across Indiana, Minnesota, Ohio, and Texas. The company is headquartered in Houston and is the only Texas-domiciled investor-owned utility. As of December 31, 2025, the company had approximately $46.5 billion in assets. With approximately 8,800 employees, CenterPoint Energy and its predecessor companies have been serving customers for more than 150 years. For more information, visit CenterPointEnergy.com.
Weekend Storm Wrap-up: More than 97% of CenterPoint Energy customers experienced no impacts during weekend storms; Company monitoring forecast for potential midweek severe weather
HOUSTON – March 8, 2026 – Following a stormy Saturday and Sunday morning in CenterPoint Energy's electric service territory, more than 97% of its 2.9 million customers across the Greater Houston area experienced no impacts to electric service during the weather event. As of 5 p.m., essentially all customers have been restored from the weekend storms. Approximately 83,500 customers have been restored since the storms arrived at 5 p.m. Saturday evening.
Northern areas of the company's electric service territory in Cypress, Humble and Katy experienced thunderstorms with heavy rainfall, flooding, and frequent lightning – approximately
15,800 cloud-to-ground lightning strikes were recorded across the Greater Houston area from 12 a.m. on Saturday to 12 p.m. today. The average time to restore customers who experienced storm-related outages was approximately 60 minutes and the vast majority of customers were restored in less than five hours. The company's Emergency Operation Center was activated ahead of the storms, and more than 1,400 frontline workers and contractor crews responded to isolated outages throughout the company's service area.
The company will return to normal operations at 8 p.m.
“We are committed to restoring service safely and as quickly as possible to those remaining customers who experienced power interruptions from the lightning and storms. We know that any outage is one too many for customers, and we won't stop until all customers are restored," said Jason Fabre, CenterPoint's Vice President, Special Response Team and Incident Commander. “We will continue to quickly address any additional outages that may occur as a result of Sunday's ongoing weather activity."
CenterPoint took the following actions for this weekend's event:
-
Deployed the company's resources:
More than 1,400 personnel responded to outages and supported preparedness actions ahead of restoration efforts.
-
Activated Emergency Operations Center: To coordinate storm response efforts throughout the weekend, the company proactively activated its Emergency Operations Center on Friday and remains ready to respond.
-
Monitored weather 24/7: The Meteorology team continues to track forecast developments, and the company is updating response plans as conditions evolve.
-
Pre-positioned resources: Response teams were pre-positioned in areas where storms were forecasted to impact and remain ready to respond to any electric or natural gas service interruptions safely and as quickly as possible.
-
Coordinated with local officials: The company provided updates to local officials and emergency management partners.
Monitoring mid-week for next wave of potentially severe weather
CenterPoint's Emergency Preparedness and Response and Meteorology teams continue to diligently monitor remaining Sunday storm activity and the potential of another wave of severe weather forecasted for midweek. The company remains positioned to support restoration efforts and respond to potential impacts to electric and natural gas service safely and as quickly as possible.
“For the last several days, our Emergency Preparedness and Response team has been monitoring the potential for another spring storm system that could bring another chance of strong and potentially severe thunderstorms to the area in the middle of the week," said Matt Lanza, CenterPoint's Manager of Meteorology. “Our crews will be fully prepared for the possibility of another round of severe weather this week and stand ready to respond. We will continue to actively monitor for any severe weather and urge our customers to stay alert in anticipation of quickly changing weather conditions."
What customers should do:
About CenterPoint Energy, Inc.
CenterPoint Energy, Inc. (NYSE: CNP) is a multi-state electric and natural gas delivery company serving more than 7 million metered customers across Indiana, Minnesota, Ohio, and Texas. The company is headquartered in Houston and is the only Texas-domiciled investor-owned utility. As of December 31, 2025, the company had approximately $46.5 billion in assets. With approximately 8,800 employees, CenterPoint Energy and its predecessor companies have been serving customers for more than 150 years. For more information, visit CenterPointEnergy.com.
CenterPoint Energy continues preparedness actions and positions resources ahead of potential severe weather in the Greater Houston area beginning Saturday afternoon and into Sunday
HOUSTON – March 7, 2026 – CenterPoint Energy's Emergency Operations Center remains activated today as the company continues executing preparedness actions ahead of potential severe weather across the Greater Houston area Saturday afternoon and evening, including scattered showers, thunderstorms and lightning. The company is monitoring forecasts, coordinating with emergency management partners and positioning resources to be prepared to respond to potential impacts to electric and natural gas service safely and as quickly as possible.
“We've been actively monitoring the weather models all week and are prepared to respond to potential impacts to our system," said Matt Lanza, CenterPoint's Manager of Meteorology. “Though the greatest potential for thunderstorms and severe weather appears to be to the north of our electric service territory on Saturday, we will continue tracking forecasts and adjusting our response plans. We urge customers to stay aware of evolving weather conditions and have a plan to stay safe."
What CenterPoint is doing:
-
Readying the company's resources:More than 1,400 personnel continue executing preparedness actions and will remain ready to support potential restoration efforts through Sunday.
-
Activated Emergency Operations Center: To coordinate storm response efforts throughout the weekend, the company proactively activated its Emergency Operations Center yesterday and remains ready to respond.
-
Monitoring 24/7: The Meteorology team continues to track forecast developments, and the company is updating response plans as conditions evolve.
-
Pre-positioning resources: Response teams are developing plans to pre-position crews across the area to respond to any electric or natural gas service interruptions safely and as quickly as possible.
-
Coordinating with local officials: The company is providing updates to local officials and emergency management partners.
“Our crews are pre-positioned and ready to safely and quickly restore service in the event the forecasted severe weather has an impact on our system," said Jason Fabre, CenterPoint's Vice President, Special Response Team and Incident Commander. “We are committed to keeping our customers aware and informed, especially during potentially severe weather events. We urge all customers to register for
Power Alert Service®, so that if outages from weather occur they can receive restoration updates directly via phone, text and email."
What customers should do:
-
Sign up for
Power Alert Service®: Get outage updates and restoration times.
-
Track outages: Bookmark our new
Outage Tracker (available in English & Spanish and mobile-friendly) to see outage information in your area.
-
Stay safe: Visit
Ready.gov for storm safety tips.
-
Follow us: Real-time updates will be available on
X and at CenterPointEnergy.com/ActionCenter.
About CenterPoint Energy, Inc.
CenterPoint Energy, Inc. (NYSE: CNP) is a multi-state electric and natural gas delivery company serving approximately 7 million metered customers across Indiana, Minnesota, Ohio, and Texas. The company is headquartered in Houston and is the only Texas-domiciled investor-owned utility. As of September 30, 2025, the company had approximately $45 billion in assets. With approximately 8,300 employees, CenterPoint Energy and its predecessor companies have been serving customers for more than 150 years. For more information, visit CenterPointEnergy.com.
More than 99.8% of CenterPoint Energy customers experienced no impacts during Saturday afternoon and evening storms; Company remains ready to respond to additional storms overnight and Sunday
HOUSTON – March 7, 2026 – As today's wave of thunderstorms moved through the Greater Houston area, more than 99.8% of CenterPoint Energy's 2.9 million customers experienced no impacts to electric service as a result of this afternoon's severe weather. At the peak of today's storm activity, approximately 11,000 customers were without service. Since 5 p.m., crews have restored approximately 7,000 customers. As of 9:30 p.m., approximately 4,000 customers are currently without power — less than 1% of CenterPoint's 2.9 million electric customers. These numbers may continue to fluctuate as additional storms move through the area overnight and Sunday.
Crews have been pre-positioned across the area and are actively restoring customers experiencing outages in the areas most impacted, including northern areas of the company's electric service territory in Cypress, Humble and Katy, which experienced thunderstorms with frequent lightning and heavy rainfall.
The company's Operations Center remains activated as crews respond to outages and continue executing preparedness actions ahead of any weather impacts tomorrow. The company continues to diligently monitor forecasts, coordinate with emergency management partners and position resources to continue supporting restoration efforts and respond to any system impacts safely and as quickly as possible.
“We are committed to getting the lights back on for those customers experiencing outages following today's storms. Our crews are out right now across the Greater Houston area working to safely and quickly restore customers, while also preparing for another round of severe weather tomorrow afternoon," said Jason Fabre, CenterPoint's Vice President, Special Response Team and Incident Commander.
“As heavy rainfall continues and the threat of flooding remains across the area, we urge customers to stay prepared. We urge customers to stay aware and alert to the dangers of flood waters – and stay away from downed power lines that could be submerged in standing water. If you see a downed power line, stay at least 35 feet away and call us at 713-207-2222 to report."
CenterPoint has taken the following actions:
-
Deployed the company's resources:
More than 1,400 personnel are responding to outages and supporting preparedness actions ahead of potential restoration efforts tomorrow.
-
Activated Emergency Operations Center: To coordinate storm response efforts throughout the weekend, the company proactively activated its Emergency Operations Center yesterday and remains ready to respond.
-
Continued monitoring of weather 24/7: The Meteorology team continues to track forecast developments, and the company is updating response plans as conditions evolve.
-
Pre-positioned resources: Response teams have been pre-positioned in areas where storms are forecasted to impact and remain respond to any electric or natural gas service interruptions safely and as quickly as possible.
-
Continued coordination with local officials: The company is providing updates to local officials and emergency management partners.
What customers should do:
-
Sign up for
Power Alert Service®: Get outage updates and restoration times.
-
Track outages: Bookmark our new
Outage Tracker (available in English & Spanish and mobile-friendly) to see outage information in your area.
-
Stay safe: Visit
Ready.gov for storm safety tips.
-
Follow us: Real-time updates will be available on
X and at CenterPointEnergy.com/ActionCenter.
About CenterPoint Energy, Inc.
CenterPoint Energy, Inc. (NYSE: CNP) is a multi-state electric and natural gas delivery company serving more than 7 million metered customers across Indiana, Minnesota, Ohio, and Texas. The company is headquartered in Houston and is the only Texas-domiciled investor-owned utility. As of December 31, 2025, the company had approximately $46.5 billion in assets. With approximately 8,800 employees, CenterPoint Energy and its predecessor companies have been serving customers for more than 150 years. For more information, visit CenterPointEnergy.com.
