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
CenterPoint Energy is monitoring a tropical disturbance in the Northeast Gulf and ready to activate its summer storm readiness plan, if needed
- Current projections show a low probability of Texas Coast impacts beyond rain
- Any potential impacts would occur late Friday or early Saturday
- Customers and public encouraged to sign-up for Power Alert Service for updates about friends, family and community locations
HOUSTON, July 14, 2025 - CenterPoint Energy's Meteorology, Emergency Planning & Response and Electric Operations teams are monitoring a tropical disturbance moving across Florida toward the Gulf. Based on current projections, the path of the storm could come near the Texas Coast by the end of the week, but is anticipated to be primarily a rain event for the Houston area.
While it's still early and there are many variables, CenterPoint is ready to take action with its summer storm readiness plan. Should the disturbance continue to organize, gain strength, and models align on its different track, CenterPoint will take further actions.
"CenterPoint's meteorology team has been monitoring this disturbance as it moved toward the Florida peninsula over the weekend. And we will continue to monitor, review new models and data and leverage our suite of technology assets, so we are prepared," said Matt Lanza, CenterPoint's Manager of Meteorology. "Right now, we are anticipating the low likelihood of an end of week potential rain event."
"While it is early and weather models can change, we want our customers, communities and public to know that we have a summer storm readiness plan. We encourage everyone to keep an eye on the weather this week while CenterPoint stands ready to activate," said Darin Carroll, Senior Vice President of CenterPoint's Electric Business.
CenterPoint's summer storm readiness plan
The actions CenterPoint may take to prepare and respond to storms this summer include:
- Mobilizing vegetation management workers: Deploying local and contract personnel to clear hazardous vegetation from power lines in the Greater Houston area ahead of storm landfall to prevent outages.
- Coordinating with government officials: Providing regular updates to federal, state, county and city officials about our pre-storm activities and readiness posture.
- Conducting outreach to critical care customers: Reaching out to identified Critical Care Residential and Chronic Condition Residential electric customers by email, phone or text.
- Sharing information and updates: Providing safety and preparedness information directly with customers via email, phone or text, across social media platforms and other channels to keep customers informed and prepared.
- Organizing additional call center staffing: Securing additional call center staff to handle a higher volume of calls during the storm and limit wait times.
Actions since Hurricane Beryl: Greater Houston Resiliency Initiative
Since launching GHRI following Hurricane Beryl last summer, CenterPoint executed a historic series of critical resiliency improvements across the company's 12-county Greater Houston area service territory. The company completed the following actions:
- Installed or replaced more than 26,000 stronger, more storm-resilient poles built to withstand extreme winds;
- Undergrounded more than 400 miles of power lines to improve overall resiliency;
- Installed more than 5,150 additional automated reliability devices and intelligent grid switching devices to reduce the impact of outages and improve restoration times;
- Cleared more than 6,000 miles of higher-risk vegetation near power lines to reduce storm-related outages;
- Installed more than 100 weather stations across our service territory to improve situational awareness and storm preparation;
- Donated 21 backup generators to critical facilities across the company's 12-county service area; and
- Launched a new and improved, cloud-based Outage Tracker to provide real-time updates on outages and restoration efforts in English and Spanish.
Important weather station facts and locations
CenterPoint has installed over 100 weather monitoring stations ahead of the Atlantic hurricane season. The weather monitoring stations were installed in strategic locations across CenterPoint's 12-county Greater Houston area electric service territory. The devices take measurements every 2-5 minutes, including humidity levels, wind speed, temperature, and rainfall.
For more information on CenterPoint's GHRI actions and improvements ahead of hurricane season, visit CenterPointEnergy.com/TakingAction.
Sign-up for Power Alert Service to get updates about family and friends
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 via phone call, text or email. Customers can add up to five additional email addresses or phone numbers to allow family and friends to receive outage information.
CenterPoint encourages all customers to have a plan to stay safe
CenterPoint is encouraging all of its customers to prepare and have a plan to stay safe during this week's weather. Customers can get storm-related safety tips at CenterPointEnergy.com/ActionCenter — available in English, Spanish and Vietnamese.
Customers can also stay up to date on outages with CenterPoint's new and improved, cloud-based Outage Tracker, now available in English and Spanish. The Outage Tracker is built to handle increased traffic during storms, is mobile-friendly, ADA-compliant, and allows customers to see outages by county, city and zip code.
For the latest updates, follow CenterPoint on X and visit 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 March 31, 2025, the company had approximately $44 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.
For more information, contact:
Communications
Media.Relations@CenterPointEnergy.com
SOURCE CenterPoint Energy
In celebration of National Lineworker Appreciation Day, CenterPoint Energy honors frontline workers who work through the hottest days and coldest nights to serve customers and communities
HOUSTON —
July
10, 2025 — Every year, the National Electrical Contractors Association (NECA), the International Brotherhood of Electrical Workers (IBEW), the Edison Electric Institute (EEI) and utilities across the country join together to observe National Lineworker Appreciation Day on July 10. This annual observance honors the life and work of Henry Miller, the first IBEW president, and our nation's frontline electric workers. These dedicated workers serve their communities year-round during the hottest summers and coldest winters by helping deliver safe and reliable electric service to customers every day. These same lineworkers answer the call for mutual assistance from neighboring utilities in other states by responding to hurricanes, wildfires, tornadoes, winter storms and other extreme weather events, and natural disasters.
“We celebrate this day annually to recognize our highly skilled and highly trained workforce. Whether installing new storm resilient poles, repairing lines impacted by cars or accidents or restoring electric service following an extreme weather event, lineworkers serve as the first responders of our industry," said Darin Carroll, Senior Vice President, Electric Business. “I want to thank our CenterPoint line men and women for the commitment and sacrifices made by both them and their families every day. A lineworker's job is not an easy one, but on both blue-sky days and after major weather events, our team shows up, works hard, and delivers this critical service to our customers."
CenterPoint's Houston electric lineworkers serve more than 2.8 million metered customers across 12 counties in southeast Texas, maintaining approximately 4,000 circuit miles of transmission lines and approximately 56,000 miles of distribution lines. In addition to installing, maintaining and repairing electric infrastructure such as transmission towers, distribution poles, substations, transformers and wires, these lineworkers also educate the public on electric wire safety and adhere to rigorous safety standards to protect themselves and the communities CenterPoint serves.
They are also playing a critical role in helping the company work toward its goal of building and operating the most resilient coastal grid in the country. Since CenterPoint launched the Greater Houston Resiliency Initiative (GHRI) in August 2024, lineworkers and contractor partners have:
- installed or replaced more than 26,000 stronger, more storm-resilient poles built to withstand extreme winds;
- undergrounded more than 400 miles of power lines to improve overall resiliency;
- installed more than 5,150 more automated reliability devices and intelligent grid switching devices to reduce the impact of outages and improve restoration times; and
- installed 100 weather monitoring stations to improve situational awareness and storm preparation.
Supporting long-term resiliency and rising energy demand
As part of the company's commitment to harden and strengthen the grid in the Greater Houston area, CenterPoint is focused on helping build the next generation of electric workers to support continued resiliency work and help meet the rapidly growing energy. This next generation of line workers will also support the implementation of CenterPoint's 2026-2028 Systemwide Resiliency Plan, which is designed to strengthen the electric system against extreme weather of the future and reduce outages for customers by nearly 1 billion minutes into 2029.
For more information on CenterPoint's efforts to build a stronger, more resilient grid for its customers, visit
CenterPointEnergy.com/TakingAction.
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 March 31, 2025, the company had approximately $44 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.
CenterPoint Energy highlights new energy efficiency programs to help Indiana customers save energy and money this summer
Evansville, Ind. — July 8, 2025 — As temperatures rise and long-range forecasts point to above-normal heat across southwestern Indiana, CenterPoint Energy is reminding customers of the tools, tips and programs available to help manage energy use and summer bills. New energy efficiency offerings now available include in-store discounts on energy-efficient products and no-cost home energy assessments with on-the-spot upgrades.
According to the National Weather Service's Climate Prediction Center, above-normal temperatures are expected across southwestern Indiana throughout the July–September period. With higher temperatures likely, customers may see increased energy use to keep their homes cool.
“At CenterPoint, we have several resources available to help customers save energy and manage their bills through the summer months and beyond. These new and existing offerings are designed to make saving energy easier, and the Customer Assistance Fund offers additional support for customers who may be facing financial challenges," said Tony Gardner, Senior Vice President and Chief Customer Officer.
Expanded energy efficiency programs
CenterPoint offers a range of new and existing programs to help residential customers reduce energy use and lower their bills this summer:
New offerings
- In-Store Discounts: Customers can receive instant rebates at checkout on eligible energy-efficient products at participating Lowe's, Home Depot and Habitat for Humanity ReStore locations in the Evansville area. No paperwork or application is required. Discounted items may include dehumidifiers, advanced power strips, air filters, ENERGY STAR® room A/Cs, pipe wrap and more.
- Home Energy Assessment: Available to all households, this no-cost assessment includes on-the-spot upgrades such as weatherstripping, aerators, pipe insulation and a smart thermostat. Customers also receive a personalized home energy report with tailored recommendations.
Other programs
- Energy Efficiency Store and Thermostat Promotion: Customers can shop CenterPoint's online Energy Efficiency Store to purchase discounted energy-saving products, delivered directly to your home. Through July 18, while supplies last, customers can also take advantage of a special promotion: save an additional $30 on the Google Nest Thermostat® or $40 on the Google Nest Learning Thermostat®.
- Smart Cycle: Enrolled customers can receive bill credits during peak summer usage months by allowing CenterPoint to briefly adjust their smart thermostats by up to four degrees to help manage energy use. Before each event, homes are pre-cooled to maintain comfort and customers can override adjustments anytime. Customers can enroll online at CenterPointEnergy.com/SmartCycle.
- Neighborhood Weatherization Program: Income-qualified customers can access no-cost home assessments and on-the-spot upgrades, similar to those offered through the Home Energy Assessment. Participants in this program may be eligible for additional improvements, such as insulation and furnace tune-ups, at no extra cost.
Summer bill payment assistance now available through the Customer Assistance Fund
The Customer Assistance Fund (CAF) provides direct bill support to eligible southwestern Indiana customers who may be facing financial challenges. Summer assistance is now available to support customers who use electricity to cool their homes.
Customers may apply once during the calendar year. Those customers who already received assistance in 2025 are ineligible until the new funding year begins in 2026 as funding is only allotted once per calendar year.
Administered in partnership with The Salvation Army Indiana Division, the CAF features an easy and accessible application process. More information is available at CenterPointEnergy.com/CAF.
Additional tips, tools and resources for customers for energy and cost savings
Customers can do the following to stay comfortable while saving energy and money:
- Turn up the thermostat when leaving home: Raise the temperature a few degrees when away from home for energy savings. With a smart or programmable thermostat, a cooling system can work around a customer's schedule.
- Change or clean filters in HVAC systems: Air conditioning represents approximately 50 percent of a home's energy use when it's warm out. Regular maintenance can extend the life of a home's system, so change or clean filters to keep the system running efficiently.
- Slay energy vampires: Energy drainers – also known as “energy vampires"– are electronic devices and appliances that suck up electricity by hovering in standby or ready mode without fully powering off. Save energy by turning off non-essential electric appliances, equipment and lights when not in use.
- Use ceiling fans to circulate cool air: Setting ceiling fans to rotate counterclockwise helps circulate cool air and keep rooms at a comfortable temperature.
- Keep warm air out: Use weatherstripping or caulk areas in and around a home where cooled air may escape, such as around windows and doors or anywhere else warm air might enter.
- Block the sun's rays: When temperatures increase outside, keep window coverings closed when the sun is shining brightest to maintain a more comfortable indoor temperature.
- Upgrade appliances and equipment: When replacing appliances and equipment, choose models with increased energy efficiency ratings for long-term cost savings. Rebates may be available for qualifying appliances.
Customers can learn more about tips and programs that can help them prepare for the longer and warmer days at CenterPointEnergy.com/SavingsTips.
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 March 31, 2025, the company had approximately $44 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.
CenterPoint Energy, Inc. Second Quarter 2025 Earnings Conference Call
Thursday, July 24, 2025
7:00 a.m. Central / 8:00 a.m. Eastern
HOUSTON, July 7, 2025 - CenterPoint Energy, Inc. (NYSE: CNP) has scheduled a conference call for Thursday, July 24, 2025, at 7:00 a.m. Central time or 8:00 a.m. Eastern time, to discuss Second Quarter results. Earnings will be released the same day before the market opens.
If you would like to participate in the conference call, please register here:
https://edge.media-server.com/mmc/p/pk75xytb
CenterPoint Energy will also provide a live audio webcast of the conference call, which can be accessed at CenterPointEnergy.com. Click on the Investors link and the link, "CenterPoint Energy, Inc. Second Quarter 2025 Earnings Conference Call Webcast." The webcast will be archived on the company's website for at least one year.
Contact:
Chayla Franklin
713-207-6500
SOURCE CenterPoint Energy, Inc
First CenterPoint Energy Resiliency Technology Summit showcases innovative new tools to help improve hurricane preparedness and response
Global technology leaders share best practices and demonstrate advanced technologies and AI tools being used to enhance storm preparedness and emergency response
HOUSTON, June 25, 2025 - As part of its commitment to build the most resilient coast grid in the country, and to better serve its 2.8 million customers throughout the 2025 hurricane season and beyond, CenterPoint Energy hosted its first ever Technology Summit alongside seven global leaders in AI tools, data analytics and other cutting-edge technologies. The new strategic relationships with Climavision, Convey (formerly Message Broadcast), Neara, Palantir, Pano AI, Technosylva and Urbint will help CenterPoint improve overall operations, identify critical system upgrades, enhance situational awareness, and strengthen storm preparedness and emergency response efforts.
"We are committed to working with the best and brightest to achieve our goal of building and operating the most resilient coastal grid in the country. These global leaders are enabling CenterPoint to leverage the latest innovations in AI, machine learning and other areas to help Houston be better prepared for more powerful hurricanes and storms. Most importantly, these new technologies and tools will help us respond more effectively to emergencies and provide the more reliable, resilient service our customers expect and deserve," said Jason Wells, President and Chief Executive Officer of CenterPoint Energy.
Advanced Technologies: Strengthening Resiliency and Emergency Readiness
During the 2025 Technology Summit, representatives of CenterPoint and global tech leaders engaged with elected officials, local emergency managers and community leaders to demonstrate how these advanced technologies will enhance CenterPoint's efforts to prepare for extreme weather events, including in four key areas:
- Targeting critical system upgrades: Working with Neara and Technosylva , CenterPoint is enhancing how it plans and executes targeted resiliency actions to strengthen the system against extreme weather.
- Improving situational awareness and storm preparedness: Climavision and Pano AI are helping CenterPoint improve real-time weather monitoring, AI forecasting and risk detection – enabling CenterPoint to more effectively predict and monitor weather risks to Houston's energy infrastructure.
- Keeping customers better informed: CenterPoint is using critical tools from Convey to modernize communication operations and efficiently manage interactions, strengthening the company's ability to deliver real-time emergency communications to millions of customers.
- Strengthening emergency response: Technologies from Palantir and Urbint are helping CenterPoint connect data across its assets to respond to storms more effectively and enhancing onboarding and deployment of mutual assistance crews in an emergency.
Greater Houston Resiliency Initiative: Key Actions and Improvements
CenterPoint's strategic technology relationships are the latest part of a broader series of actions to improve resiliency, communication and partnerships through the Greater Houston Resiliency Initiative (GHRI), launched in August 2024. Over the first two phases of GHRI, which were completed ahead of schedule and before the start of hurricane season on June 1, CenterPoint took the following actions:
- Installed 26,000+ stronger, storm-resilient poles to withstand extreme winds;
- Added 5,150+ automation devices to improve restoration times;
- Cleared 6,000+ miles of higher-risk vegetation to reduce storm-related outages;
- Undergrounded 400+ miles of power lines to improve overall resiliency;
- Installed 100+ weather stations across our service territory to improve situational awareness and storm preparation;
- Donated 21 backup generators to critical facilities across the company's 12-county service area; and
- Launched a new and improved, cloud-based Outage Tracker to provide real-time updates on outages and restoration efforts in English and Spanish.
The company will continue working throughout the 2025 hurricane season to further strengthen resiliency and address potential system impacts from storms and extreme weather. For more information and updates on GHRI, visit CenterPointEnergy.com/TakingAction .
Media Contact: Media.Relations@CenterPointEnergy.com
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 March 31, 2025, the company had approximately $44 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.
About Climavision
Climavision brings together the power of a proprietary, high resolution supplemental weather radar network with its cutting-edge Horizon AI forecasting technology suite to close significant weather observation gaps and drastically improve forecast speed and accuracy. Climavision's revolutionary approach to climate technology is poised to help reduce the economic risks of volatile weather on companies, governments, and communities alike. Climavision is backed by The Rise Fund, the world's largest global impact platform committed to achieving measurable, positive social and environmental outcomes alongside competitive financial returns. The company is headquartered in Louisville, KY, with research and development operations in Raleigh, NC. To learn more, visit www.Climavision.com.
About Convey
Convey delivers intelligent customer workflows that humanize connections in regulated environments. Formerly Message Broadcast, Convey transforms compliance requirements into streamlined experiences through purpose-built solutions that deliver measurable impact for utilities and essential service providers. Our platform helps organizations modernize operations and set new engagement standards while efficiently managing millions of interactions. Reimagine the customer journey at goconvey.com.
About Neara
Neara is a physics-enabled digital twin that eclipses traditional visualization capabilities to deliver a geometrically accurate 3D spatial model of entire infrastructure networks. The model applies detailed individual asset-level analysis to entire integrated infrastructure, providing a context-rich representation of how assets actually behave and react in the physical world in any scenario. Neara connects the granular perspective engineers need to maintain a safe and structurally sound grid system with the network-wide view business leaders need to improve outcomes with effective network investments via high-velocity, automated analysis. With Neara, asset owners upgrade daily reality from reacting to dozens of problems in a context vacuum to proactively identifying exactly where and how to allocate capital for maximum community benefit through an integrated lens. Neara has modeled more than 2 million miles of infrastructure across four continents, enabling customers to save millions each year while improving resiliency and reliability, and transforming processes that once took years into outcomes delivered in hours. More information is available at www.neara.com.
About Palantir
Palantir partners with utilities to modernize the grid, mitigate risk, improve safety, and adapt to changing demand and production patterns. Utilities have a complex data ecosystem that is often challenging to leverage, but we've helped partners optimize their operations at speed and meet complex challenges with data-driven decisions. Today, leading organizations use Palantir software to power critical decisions and operationalize AI. Workflows help address load management optimization, grid upgrades, emergency prevention and response, procurement bottlenecks, and more.
About Pano AI
Pano AI is the leader in AI-powered wildfire detection. Launched in 2020, the company provides advanced early detection and situational awareness solutions to fire agencies, utilities, governments, and private landholders to help protect people, property, and infrastructure from catastrophic wildfires. With deployments across the U.S., Canada, and Australia, Pano AI is building a new standard for real-time wildfire intelligence. To learn more, visit www.pano.ai or follow the company on LinkedIn.
About Technosylva
Technosylva is the leading provider of wildfire and extreme weather modeling, risk mitigation, and operational response software. Technosylva's market-leading solutions, enhanced by AI and machine learning capabilities, provide real-time and predictive insights into developing wildfire and extreme weather risks to support electric utility, insurance, and government agency customers. Founded in 1997, Technosylva has offices in La Jolla, CA, León, Spain, and Calgary, Canada. Learn more at www.Technosylva.com.
About Urbint
Urbint is the world leader in operational resilience for energy and utilities. Urbint's solutions use Artificial Intelligence and the latest industry science to predict and manage emergencies, protect assets and keep people safe. Urbint's suite features three end-to-end solutions: 1) Worker Safety, which provides digital job safety briefs and energy-based observation workflows to reduce exposure at the point of work; 2) Damage Prevention, which manages and risk-profiles 811 tickets to help prevent third-party damages to underground assets; and 3) Emergency Preparedness & Response, which connects the entire natural disaster lifecycle to predict impact and increase a utility's response to reduce customer downtime. The largest energy and infrastructure companies trust Urbint to protect workers, assets, communities, and the environment. Learn more at urbint.com.
SOURCE CenterPoint Energy
