HOUSTON, May 4, 2018 - CenterPoint Energy, Inc. (NYSE: CNP) today reported net income of $165 million, or $0.38 per diluted share, for the first quarter of 2018, compared with $192 million, or $0.44 per diluted share for the same period of the prior year. On a guidance basis, first quarter 2018 earnings were $0.55 per diluted share, consisting of $0.43 from utility operations and $0.12 from midstream investments. First quarter 2017 earnings on a guidance basis were $0.37 per diluted share, consisting of $0.27 from utility operations and $0.10 from midstream investments.
Operating income for the first quarter of 2018 was $251 million, compared with $291 million in the first quarter of the prior year. The retrospective adoption of the accounting standard for compensation-retirement benefits (ASU 2017-07) resulted in an increase to operating income and a corresponding decrease to other income of $17 million for the first quarter of 2017. Equity income from midstream investments was $69 million for the first quarter of 2018, compared with $72 million for the first quarter of the prior year.
"We are off to a strong start this year," said Scott M. Prochazka, president and chief executive officer of CenterPoint Energy. "Continued growth across our service territories, rate recovery and Energy Services' performance all position us to be at the high end of our 2018 EPS guidance. Beyond 2018 we are looking forward to closing the recently announced merger agreement with Vectren in the first quarter of 2019."
Business Segments
Electric Transmission & Distribution
The electric transmission & distribution segment reported operating income of $115 million for the first quarter of 2018, consisting of $99 million from the regulated electric transmission & distribution utility operations (TDU) and $16 million related to securitization bonds. Operating income for the first quarter of 2017 was $86 million, consisting of $66 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 favorable 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) and higher operation and maintenance expenses.
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 $8 million for the first quarter of 2017.
Natural Gas Distribution
The natural gas distribution segment reported operating income of $156 million for the first quarter of 2018, compared with $168 million for the same period of 2017. Operating income benefited from rate relief, increased usage due to favorable weather and customer growth. These increases were more than offset by lower revenues reflecting the lower federal tax rate due to the TCJA, higher operation and maintenance expenses, higher taxes due primarily to the Minnesota property tax refund of $9 million in 2017, and higher depreciation and amortization expenses.
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 $4 million for the first quarter of 2017.
Energy Services
The energy services segment reported an operating loss of $26 million for the first quarter of 2018, which included a mark-to-market loss of $80 million, compared with operating income of $35 million for the same period in 2017, which included a mark-to-market gain of $15 million. Excluding mark-to-market adjustments, operating income was $54 million for the first quarter of 2018 compared with $20 million for the same period of 2017. The increase in operating income was primarily due to incremental volumes from customers and improved margin rates, resulting from commercial opportunities attributable to recent acquisitions and from colder than normal weather in several U.S. regions.
Midstream Investments
The midstream investments segment reported $69 million of equity income for the first quarter of 2018, compared with $72 million in the first quarter of the prior year.
Earnings Outlook
CenterPoint Energy anticipates achieving the high end of the $1.50 - $1.60 guidance range for 2018, excluding one-time costs associated with the proposed Vectren merger. This guidance is inclusive of Enable's net income guidance of $375 million - $445 million announced on Enable Midstream's first quarter earnings call on May 2, 2018. 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, and regulatory and judicial proceedings to include regulatory action as a result of recent tax reform legislation.
In providing this guidance, CenterPoint Energy uses a non-GAAP measure of adjusted diluted earnings per share that does not consider other potential impacts, such as changes in accounting standards or unusual items, earnings or losses from the change in the value of the ZENS securities and the related stocks, or the timing effects of mark-to-market accounting in the company's Energy Services business.
|
Quarter Ended
|
|
March 31, 2018
|
|
March 31, 2017
|
|
Net Income
(in millions)
|
|
Diluted EPS
|
|
Net Income
(in millions)
|
|
Diluted EPS
|
|
|
|
|
|
|
|
|
|
Consolidated net income and diluted EPS as reported
|
$ 165
|
|
$ 0.38
|
|
$ 192
|
|
$ 0.44
|
|
Midstream Investments
|
(52)
|
|
(0.12)
|
|
(45)
|
|
(0.10)
|
|
Utility Operations (1)
|
113
|
|
0.26
|
|
147
|
|
0.34
|
|
|
|
|
|
|
|
|
|
Timing effects impacting CES(2):
|
|
|
|
|
|
|
|
|
Mark-to-market (gains) losses (net of taxes of $19 and $5)(3)
|
61
|
|
0.14
|
|
(10)
|
|
(0.02)
|
|
|
|
|
|
|
|
|
|
ZENS-related mark-to-market (gains) losses:
|
|
|
|
|
|
|
|
|
Marketable securities (net of taxes of $1 and $16) (3)(4)
|
-
|
|
-
|
|
(28)
|
|
(0.06)
|
|
Indexed debt securities (net of taxes of $3 and $4) (3)(5)
|
15
|
|
0.03
|
|
6
|
|
0.01
|
|
Utility operations earnings on an adjusted guidance basis
|
$ 189
|
|
$ 0.43
|
|
$ 115
|
|
$ 0.27
|
|
|
|
|
|
|
|
|
|
Adjusted net income and adjusted diluted EPS used in providing earnings guidance:
|
|
|
|
|
|
|
|
|
Utility Operations on a guidance basis
|
$ 189
|
|
$ 0.43
|
|
$ 115
|
|
$ 0.27
|
|
Midstream Investments
|
52
|
|
0.12
|
|
45
|
|
0.10
|
|
Consolidated on a guidance basis
|
$ 241
|
|
$ 0.55
|
|
$ 160
|
|
$ 0.37
|
|
|
(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 January 31, 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 Meredith tender offer for Time Inc. common stock
|
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 March 31, 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, May 4, 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 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) tax reform and legislation, including the effects of the comprehensive tax reform legislation informally referred to as the Tax Cuts and Jobs Act and uncertainties involving state commissions' and local municipalities' regulatory requirements and determinations regarding the treatment of excess deferred taxes and CenterPoint Energy's rates; (8) CenterPoint Energy's ability to mitigate weather impacts through normalization or rate mechanisms, and the effectiveness of such mechanisms; (9) the timing and extent of changes in commodity prices, particularly natural gas, and the effects of geographic and seasonal commodity price differentials; (10) actions by credit rating agencies; (11) changes in interest rates and their impact on CenterPoint Energy's costs of borrowing and the valuation of its pension benefit obligation; (12) 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; (13) local, state and federal legislative and regulatory actions or developments relating to the environment, including those related to global climate change; (14) the impact of unplanned facility outages; (15) 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; (16) CenterPoint Energy's ability to invest planned capital and the timely recovery of CenterPoint Energy's investment in capital; (17) CenterPoint Energy's ability to control operation and maintenance costs; (18) the sufficiency of CenterPoint Energy's insurance coverage, including availability, cost, coverage and terms; (19) the investment performance of CenterPoint Energy's pension and postretirement benefit plans; (20) 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; (21) changes in rates of inflation; (22) inability of various counterparties to meet their obligations to CenterPoint Energy; (23) non-payment for CenterPoint Energy's services due to financial distress of its customers; (24) the extent and effectiveness of CenterPoint Energy's risk management and hedging activities, including but not limited to, its financial and weather hedges; (25) timely and appropriate regulatory actions allowing securitization for any future hurricanes or natural disasters or other recovery of costs, including costs associated with Hurricane Harvey; (26) 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; (27) acquisition and merger activities involving CenterPoint Energy or its competitors, including the ability to successfully complete merger, acquisition or divestiture plans; (28) the expected timing, likelihood and benefits of completion of CenterPoint Energy's proposed 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 proposed transactions, as well as the ability to successfully integrate the businesses and realize anticipated benefits, the possibility that long-term financing for the proposed transactions may not be put in place before the closing of the proposed transactions and the risk that the credit ratings of the combined company or its subsidiaries may be different from what the companies expect; (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; (32) 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 quarter ended March 31, 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 proposed transactions, Vectren expects to file a proxy statement, as well as other materials, with the SEC. WE URGE INVESTORS TO READ THE PROXY STATEMENT AND THESE OTHER MATERIALS FILED WITH THE SEC CAREFULLY WHEN THEY BECOME AVAILABLE BEFORE MAKING ANY VOTING OR INVESTMENT DECISION BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED MERGER. Investors will be able to obtain free copies of the proxy statement (when available) 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 proposed 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, will be set forth in the proxy statement and other materials when they are filed with the SEC in connection with the proposed transaction.
|
CenterPoint Energy, Inc. and Subsidiaries
|
|
|
Statements of Consolidated Income
|
|
|
(Millions of Dollars)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
March 31,
|
|
|
|
2018
|
|
2017 (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
Utility revenues
|
|
$ 1,894
|
|
$ 1,546
|
|
|
Non-utility revenues
|
|
1,261
|
|
1,189
|
|
|
Total
|
|
3,155
|
|
2,735
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
Utility natural gas
|
|
637
|
|
450
|
|
|
Non-utility natural gas
|
|
1,273
|
|
1,129
|
|
|
Operation and maintenance
|
|
569
|
|
543
|
|
|
Depreciation and amortization
|
|
314
|
|
226
|
|
|
Taxes other than income taxes
|
|
111
|
|
96
|
|
|
Total
|
|
2,904
|
|
2,444
|
|
|
Operating Income
|
|
251
|
|
291
|
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
Gain on marketable securities
|
|
1
|
|
44
|
|
|
Loss on indexed debt securities
|
|
(18)
|
|
(10)
|
|
|
Interest and other finance charges
|
|
(78)
|
|
(78)
|
|
|
Interest on securitization bonds
|
|
(16)
|
|
(20)
|
|
|
Equity in earnings of unconsolidated affiliates
|
|
69
|
|
72
|
|
|
Other - net
|
|
3
|
|
-
|
|
|
Total
|
|
(39)
|
|
8
|
|
|
|
|
|
|
|
|
Income Before Income Taxes
|
|
212
|
|
299
|
|
|
|
|
|
|
|
|
Income Tax Expense
|
|
47
|
|
107
|
|
|
|
|
|
|
|
|
Net Income
|
|
$ 165
|
|
$ 192
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Restated to reflect the adoption of ASU 2017-07.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reference is made to the 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
|
|
|
March 31,
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per Common Share
|
|
$ 0.38
|
|
$ 0.45
|
|
|
|
|
|
|
Diluted Earnings Per Common Share
|
|
$ 0.38
|
|
$ 0.44
|
|
|
|
|
|
|
Dividends Declared per Common Share
|
|
$ -
|
|
$ 0.2675
|
|
|
|
|
|
|
Dividends Paid per Common Share
|
|
$ 0.2775
|
|
$ 0.2675
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding (000):
|
|
|
|
|
|
- Basic
|
|
431,231
|
|
430,794
|
|
- Diluted
|
|
434,008
|
|
433,348
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) by Segment (1)
|
|
|
|
|
|
|
|
|
|
|
Electric Transmission & Distribution:
|
|
|
|
|
|
TDU
|
|
$ 99
|
|
$ 66
|
|
Bond Companies
|
|
16
|
|
20
|
|
Total Electric Transmission & Distribution
|
|
115
|
|
86
|
|
Natural Gas Distribution
|
|
156
|
|
168
|
|
Energy Services
|
|
(26)
|
|
35
|
|
Other Operations
|
|
6
|
|
2
|
|
|
|
|
|
|
Total
|
|
$ 251
|
|
$ 291
|
|
|
|
|
|
|
|
|
|
|
|
(1) Operating income for the three months ended March 31, 2017 has been restated to reflect the adoption of ASU 2017-07.
|
|
|
|
|
|
|
|
Reference is made to the 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
|
|
Results of Operations by Segment
|
|
(Millions of Dollars)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electric Transmission & Distribution
|
|
|
Quarter Ended
|
|
|
|
|
March 31,
|
|
% Diff
|
Recent News
CenterPoint Energy continues its resiliency efforts across the 12-county region through its Foundation’s Community Generator Donation Program; Donates trailer generator to the Liberty County Office of Emergency Management HOUSTON —
June 6, 2025 — Yesterday, at an event in Liberty, Texas, CenterPoint Energy leaders joined local elected officials and community leaders to announce the donation of a trailer generator to the Liberty County Office of Emergency Management as part of the company's
Community Generator Donation Program to support local community resiliency. Through this program, the CenterPoint Energy Foundation is donating funds for more than 20 backup generators at key locations throughout its 12-county Greater Houston region, with at least one generator or other support provided for each county. The company worked in close collaboration with local Offices of Emergency Management (OEMs) and other county and city leaders to identify the appropriate locations for the donated generators to be able to have the greatest impact and local benefit. The Community Generator Donation Program is part of
CenterPoint's Greater Houston Resiliency Initiative (GHRI). The backup generators will help provide support for critical community partners during major weather events or other emergencies and will be funded through a $5 million grant from the CenterPoint Energy Foundation at no cost to customers. The CenterPoint Energy Foundation is a charitable giving organization focused on strengthening the quality of life in the communities served by the company. The foundation is funded by shareholders and has no impact on customer rates. For more information, visit
CenterPointEnergy.com/Foundation. “We are committed to improving resiliency in our local communities and working closely with our community partners to achieve this important goal. Today, we are donating backup generation to support our partners in Liberty County. The donated generators are each capable of powering an entire large building and will help make the communities we are proud to serve even more resilient during major storms and other emergency events," said Alicia Dixon, CenterPoint's Director of Community Relations. These backup generators will provide an additional power supply during major storms and other emergency events that cause outages. Facilities that receive the donated backup generators will be able to better serve their communities during outages, acting as hubs for essential services like medical care, cooling stations, water and food distribution, charging stations for critical devices and other services.
Working with Community Partners on Locations
To support local community needs, CenterPoint worked closely with county and city officials and OEMs to identify and select the ideal locations for the donated generators, with local officials ultimately deciding which critical facilities will receive the donations. CenterPoint will continue coordinating with local community partners to ensure the backup generators are suitable to meet the specific needs of the critical facilities they have identified. 
PHOTO: From L to R: Shelton Mitchell, CenterPoint Service Area Director for Baytown and South Houston; Carlton Porter, CenterPoint Service Area Manager for Baytown; Paul Lock, CenterPoint Director of Local Government Affairs; Jay Knight, Liberty County Judge; Antwyne “AJ" Johnson, Liberty County Emergency Management Coordinator; Alicia Dixon, CenterPoint Director of Community Relations; Madison Gonzalez, Liberty County Deputy Emergency Management Coordinator; William “Billy" Knox, Liberty County Sheriff's Office Chief Deputy; Robert “Bobby" Rader, Liberty County Sheriff
More photos:
CNP Digital Asset Mgmt
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.
Forward-looking statements
This news release, as well as the website pages related to the GHRI, includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this news release or the website pages related to the GHRI, the words "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "intend," "may," "objective," "plan," "potential," "predict," "projection," "should," "target," "will" or other similar words are intended to identify forward-looking statements. These forward-looking statements, which include statements regarding the GHRI and longer-term resiliency plans, including effectiveness, timing and related matters, 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 or the website pages related to the GHRI regarding future events that are not historical facts are forward-looking statements. Each forward-looking statement contained in this news release or the website pages related to the GHRI speaks only as of the date of this release or the date that such statement is made, as applicable. 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) business strategies and strategic initiatives, restructurings, joint ventures, acquisitions or dispositions of assets or businesses involving CenterPoint Energy or its industry; (2) CenterPoint Energy's ability to fund and invest planned capital, and the timely recovery of its investments; (3) financial market and general economic conditions; (4) the timing and impact of future regulatory, legislative and political actions or developments; and (5) other factors, risks and uncertainties discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.
CenterPoint Energy continues its resiliency efforts across the 12-county region through its Foundation’s Community Generator Donation Program; Donates backup generator to the Richard and Meg Weekley Community Center HOUSTON —
June 6, 2025 — Yesterday, at an announcement in Cypress, Texas with elected officials and community leaders, CenterPoint Energy leaders announced the donation of a backup generator to the Richard and Meg Weekley Community Center as part of its
Community Generator Donation Program to support local community resiliency. Through this program, the CenterPoint Energy Foundation is donating funds for more than 20 backup generators at key locations throughout its 12-county Greater Houston region, with at least one generator or other support provided for each county. The company worked in close collaboration with local Offices of Emergency Management (OEMs) and other county and city leaders to identify the appropriate locations for the donated generators to be able to have the greatest impact and local benefit. The Community Generator Donation Program is part of
CenterPoint's Greater Houston Resiliency Initiative (GHRI). The backup generators will help provide support for critical community partners during major weather events or other emergencies and will be funded through a $5 million grant from the CenterPoint Energy Foundation at no cost to customers. The CenterPoint Energy Foundation is a charitable giving organization focused on strengthening the quality of life in the communities served by the company. The foundation is funded by shareholders and has no impact on customer rates. For more information, visit
CenterPointEnergy.com/Foundation. “We are committed to improving resiliency in our local communities and working closely with our community partners to achieve this important goal. Today, we are donating backup generation to support our partners here in Harris County Precinct 4. These donated generators are each capable of powering an entire large building and will help make the communities we are proud to serve even more resilient during major storms and other emergency events," said Jason Ryan, CenterPoint's Executive Vice President of Regulatory Services at Government Affairs. The backup generators will provide an additional power supply during major storms and other emergency events that cause outages. Facilities that receive the donated backup generators will be able to better serve their communities during outages, acting as hubs for essential services like medical care, cooling stations, water and food distribution, charging stations for critical devices and other services.
Working with Community Partners on Locations
To support local community needs, CenterPoint worked closely with county and city officials and OEMs to identify and select the ideal locations for the donated generators, with local officials ultimately deciding which critical facilities will receive the donations. “Hurricane season is here, and in Harris County we know it's not a matter of if the next big storm will hit, but when. My Precinct 4 team and I work year-round to ensure we can deliver resources effectively and efficiently in the aftermath of disaster. This new backup generator at Weekley Community Center will significantly enhance our extreme weather resilience. Thanks to the power of partners like CenterPoint, we stand ready to serve our community before, during, and after any storm," said Harris County Precinct 4 Commissioner Lesley Briones. CenterPoint will continue coordinating with local community partners to ensure the backup generators are suitable to meet the specific needs of the critical facilities they have identified. 
PHOTO: From L to R: Michelle Hundley, CenterPoint Local Government Relations Manager; Jason Ryan, CenterPoint Executive Vice President of Regulatory Services at Government Affairs; Lesley Briones, Harris County Precinct 4 Commissioner; Johnnie Johnson, CenterPoint Service Area Director for Cypress and Katy; Jeffery Ledet, CenterPoint Service Area Manager for Cypress
More photos:
CNP Digital Asset Mgmt
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.
Forward-looking statements
This news release, as well as the website pages related to the GHRI, includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this news release or the website pages related to the GHRI, the words "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "intend," "may," "objective," "plan," "potential," "predict," "projection," "should," "target," "will" or other similar words are intended to identify forward-looking statements. These forward-looking statements, which include statements regarding the GHRI and longer-term resiliency plans, including effectiveness, timing and related matters, 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 or the website pages related to the GHRI regarding future events that are not historical facts are forward-looking statements. Each forward-looking statement contained in this news release or the website pages related to the GHRI speaks only as of the date of this release or the date that such statement is made, as applicable. 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) business strategies and strategic initiatives, restructurings, joint ventures, acquisitions or dispositions of assets or businesses involving CenterPoint Energy or its industry; (2) CenterPoint Energy's ability to fund and invest planned capital, and the timely recovery of its investments; (3) financial market and general economic conditions; (4) the timing and impact of future regulatory, legislative and political actions or developments; and (5) other factors, risks and uncertainties discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.
CenterPoint Energy reminds customers, contractors and community members to dial 811 before digging or starting outdoor projects HOUSTON – June 5, 2025 – CenterPoint Energy is reminding everyone to contact 811 before starting any outdoor digging project. Anyone planning to dig — including gardening, building or repairing a fence, planting trees, installing a deck, placing a mailbox or laying a patio — should contact 811 at least three business days (excluding weekends and holidays) before starting their project. 811 is a free service that community members can use to have utility lines located and marked.According to the
Common Ground Alliance, a member-driven association of nearly 3,800 damage prevention professionals in the underground utility industry, utility lines are damaged every few minutes because digging occurred prior to contacting 811. In 2024 alone, CenterPoint experienced more than 3,100 natural gas line damages within its service territory because 811 was not contacted before digging. “As temperatures continue to warm up, our customers and community members are working on more outdoor projects around their homes. While they take advantage of the warmer temperatures, we want to remind everyone of the importance of having utilities located and marked prior to digging. By contacting 811, everyone takes a critical first step in helping keep themselves, their loved ones and communities safe," said Al Payton, CenterPoint's Vice President of Safety and Technical Training. “No matter how shallow or minor a project, everyone can help prevent safety incidents and loss of utility service for their communities by contacting 811 to have underground utility lines located and marked." Safe digging practices are required by state laws and help prevent damage to underground natural gas, electric, communications, water and sewer lines. Utility lines can be buried as shallow as inches below the surface. Digging without knowing the approximate location of underground utilities can result in serious injury, including death, as well as service disruptions, fines and costly repairs.
Safe digging steps
To prevent damage and stay safe, CenterPoint urges everyone to follow these steps before any digging project: -
Plan ahead! Contact 811 at least three business days before starting work.
-
Make the request early in the week for weekend projects.
-
Confirm all utility lines are marked before beginning work.
-
Adjust plans if needed. Relocate projects that are too close to marked utility lines.
- If using a contractor,
verify they have contacted 811 before their work.
Smell natural gas? Act fast
If a natural gas line is struck outside of a home or business, customers are reminded to: - Leave the area immediately on foot. Do not attempt to restart or move powered equipment or use your mobile device or any other item that could cause a spark.
- Go to a safe location, then call 911 and
CenterPoint.
- Remain in a safe area until directed by emergency personnel to do otherwise.
- Don't try to repair a natural gas leak. Leave all repairs to a trained technician.
Visit
811BeforeYouDig.com to learn more about the process to have underground utility lines located and marked. For more information about natural gas safety, visit
CenterPointEnergy.com/Safety.
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 continues its resiliency efforts across the 12-county region through its Foundation’s Community Generator Donation Program; Donates trailer generator to the Chambers County Office of Emergency Management HOUSTON — June 4, 2025 — Yesterday, during the 2025 Chambers County Hurricane Workshop, CenterPoint Energy leaders joined local elected officials and community leaders to announce the donation of a trailer generator to the Chambers County Office of Emergency Management as part of the company's
Community Generator Donation Program to support local community resiliency. Through this program, the CenterPoint Energy Foundation is donating funds for more than 20 backup generators at key locations throughout its 12-county Greater Houston region. It is expected that there will be at least one generator or other support for each county. The company worked in close collaboration with local Offices of Emergency Management (OEMs) and other county and city leaders to identify the appropriate locations for the donated generators to be able to have the greatest impact and local benefit. The Community Generator Donation Program is part of
CenterPoint's Greater Houston Resiliency Initiative (GHRI). The backup generators will help provide support for critical community partners during major weather events or other emergencies and will be funded through a $5 million grant from the CenterPoint Energy Foundation at no cost to customers. The CenterPoint Energy Foundation is a charitable giving organization focused on strengthening the quality of life in the communities served by the company. The foundation is funded by shareholders and has no impact on customer rates. For more information, visit
CenterPointEnergy.com/Foundation. “We are committed to improving resiliency in our local communities and working closely with our community partners to achieve this important goal. Today, we are donating backup generation to support our partners in Chambers County. These donated generators are each capable of powering an entire large building and will help make the communities we are proud to serve even more resilient during major storms and other emergency events," said Alicia Dixon, CenterPoint's Director of Community Relations. These backup generators will provide an additional power supply during major storms and other emergency events that cause outages. Facilities that receive the donated backup generators will be able to better serve their communities during outages, acting as hubs for essential services like medical care, cooling stations, water and food distribution, charging stations for critical devices and other services.
Working with Community Partners on Locations
To support local community needs, CenterPoint worked closely with county and city officials and OEMs to identify and select the ideal locations for the donated generators, with local officials ultimately deciding which critical facilities will receive the donations. “This vital equipment will enhance our preparedness and response capabilities, ensuring that we can better serve our residents during emergencies and power outages. A huge 'thank you' to CenterPoint Energy for your commitment to community safety! We appreciate your support in helping us keep Chambers County safe and resilient," said Chambers County Judge Jimmy Sylvia. CenterPoint will continue coordinating with local community partners to ensure the backup generators are suitable to meet the specific needs of the critical facilities they have identified.
PHOTO: From L to R: Ryan Dagley, Chambers County Precinct 4 Commissioner; Paul Lock, CenterPoint Director of Local Government Affairs; Ryan Holzaepfel, Chambers County Emergency Management Coordinator; Jimmy Sylvia, Chambers County Judge; Quinten Adams, Chambers County Field Operations Support Division Chief; Alicia Dixon, CenterPoint Director of Community Relations; Jeffery Choate, Chambers County Deputy Emergency Management Coordinator and Safety Officer; Haley Hernandez, Chambers County Emergency Services Support Specialist; Sarah Phelps, Chambers County Emergency Services Administrative Assistant; Jimmy Gore, Chambers County Precinct 1 Commissioner
More photos:
CNP Digital Asset Mgmt
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.
Forward-looking statements
This news release, as well as the website pages related to the GHRI, includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this news release or the website pages related to the GHRI, the words "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "intend," "may," "objective," "plan," "potential," "predict," "projection," "should," "target," "will" or other similar words are intended to identify forward-looking statements. These forward-looking statements, which include statements regarding the GHRI and longer-term resiliency plans, including effectiveness, timing and related matters, 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 or the website pages related to the GHRI regarding future events that are not historical facts are forward-looking statements. Each forward-looking statement contained in this news release or the website pages related to the GHRI speaks only as of the date of this release or the date that such statement is made, as applicable. 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) business strategies and strategic initiatives, restructurings, joint ventures, acquisitions or dispositions of assets or businesses involving CenterPoint Energy or its industry; (2) CenterPoint Energy's ability to fund and invest planned capital, and the timely recovery of its investments; (3) financial market and general economic conditions; (4) the timing and impact of future regulatory, legislative and political actions or developments; and (5) other factors, risks and uncertainties discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.
2025 Atlantic Hurricane Season: CenterPoint Energy emphasizes preparedness with critical resiliency efforts completed before June 1; urges customers to have an emergency plan and practice that plan
Historic series of Greater Houston Resiliency Initiative key improvements completed ahead of schedule to strengthen the grid and reduce the impact of outages from major storms
Joint emergency response exercise completed; community safety and preparedness events continue with emergency officials and local partners
CenterPoint continues proactive outreach and communication efforts across Greater Houston service area to help customers prepare for upcoming storm season
HOUSTON, June 3, 2025 - With the 2025 Atlantic hurricane season officially underway, CenterPoint Energy is reinforcing the resiliency and preparedness efforts the company already completed to strengthen grid resiliency, improve local emergency coordination and help communities and customers better prepare for potential severe weather.
Last month, CenterPoint held its 2025 emergency response exercise as part of a coordinated effort with public officials, emergency response managers and community partners to improve local cooperation and response efforts. The company continues to work with communities to donate and install more than 20 backup generators for critical facilities and other key locations across its 12-county service area and has been hosting a series of community and customer outreach events across the Greater Houston area to share important safety information and preparation updates.
"Ahead of this year's hurricane season, CenterPoint has been fully engaged in completing a series of historic resiliency improvements and preparedness activities to enhance how we prepare for and respond to hurricanes and other severe weather events," said Tony Gardner, CenterPoint Senior Vice President and Chief Customer Officer. "While we've accomplished a great number of milestones ahead of the start of hurricane season, we won't stop there. We will continue diligently monitoring the weather, making more improvements and investments, and maintaining our storm preparedness efforts while we work every day to achieve our goal of building the most resilient coastal grid in the country."
2025 Hurricane Season Preparedness: Getting Ready for Extreme Weather
CenterPoint has been conducting and helping coordinate a series of important preparedness activities over the last several months, including:
- Completing historic grid improvements: As part of the Greater Houston Resiliency Initiative (GHRI), CenterPoint has completed a series of critical resiliency actions ahead of schedule, including:
- Installing 26,000 stronger, more storm-resilient poles;
- Installing 5,150 automated devices;
- Clearing high-risk vegetation from 6,000 miles of power lines;
- Undergrounding more than 400 miles of power lines; and
- Installing 100 weather stations to provide real-time weather monitoring.
- Leveraging AI and emerging technologies: Collaborating with industry-leading technology providers, including Neara and Technosylva, to better predict and prepare for extreme weather impacts.
- Working with emergency partners to get ready: Coordinating with local officials, emergency management offices and community partners to prepare for extreme weather events, including through joint emergency response exercises.
- Donating and installing emergency generators to key locations: Working with local communities to provide backup generators to critical facilities and community centers that provide medical care, food and water, cooling and other essential services in emergencies.
- Hosting customer and community hurricane preparedness events: Holding a series of community preparedness events and webinars to provide updates about CenterPoint's preparations for hurricane season, important safety tips and key resources for customers.
- Enhancing critical storm response tools: Implemented sophisticated damage modeling to help expedite critical decision making before and during an event, as well as adopted a new storm management software program to more efficiently onboard and deploy mutual assistance crews in support of CenterPoint's emergency response efforts.
- Upgrading CenterPoint's Outage Tracker: Launched a new and improved, cloud-based Outage Tracker to provide real-time updates on outages and restoration efforts, available in English and Spanish.
CenterPoint will continue to provide updates on its critical resiliency actions. More information is available at 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.
Forward-looking statements
This news release, as well as the website pages related to the GHRI, includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this news release or the website pages related to the GHRI, the words "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "intend," "may," "objective," "plan," "potential," "predict," "projection," "should," "target," "will" or other similar words are intended to identify forward-looking statements. These forward-looking statements, which include statements regarding the GHRI and longer-term resiliency plans, including effectiveness, timing and related matters, 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 or the website pages related to the GHRI regarding future events that are not historical facts are forward-looking statements. Each forward-looking statement contained in this news release or the website pages related to the GHRI speaks only as of the date of this release or the date that such statement is made, as applicable. 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) business strategies and strategic initiatives, restructurings, joint ventures, acquisitions or dispositions of assets or businesses involving CenterPoint Energy or its industry; (2) CenterPoint Energy's ability to fund and invest planned capital, and the timely recovery of its investments; (3) financial market and general economic conditions; (4) the timing and impact of future regulatory, legislative and political actions or developments; and (5) other factors, risks and uncertainties discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.
SOURCE CenterPoint Energy
|
