CenterPoint Energy introduces Carbon Policy committing to reductions in emissions
Goals build on company's ongoing commitment to reduce carbon emissions and use innovative technology to transition toward a cleaner energy future
2020-03-02T06:00:00Z

HOUSTON, March 2, 2020 - Leading U.S. energy delivery company CenterPoint Energy (NYSE: CNP) today announced a goal to reduce its operational emissions by 70 percent by 2035 and emissions attributable to natural gas usage in heating, appliances and equipment within the residential and commercial sectors by 20 to 30 percent by 2040. The company's reduction goals are based on its 2005 emissions.

CenterPoint Energy logo. (PRNewsFoto)

With more than 7 million electric and natural gas metered customers across eight states, CenterPoint Energy is among the first energy delivery companies to make an emissions-reduction commitment across a multi-state footprint.

"CenterPoint Energy has a long history of environmental commitment and we are proud to be a leader in the transition to a cleaner energy future," said John W. Somerhalder II, CenterPoint's interim president and chief executive officer. "Further reductions in our carbon footprint aligns with this commitment, and we look forward to bringing new, innovative technologies to the emissions-reduction effort, while maintaining affordability, reliability and quality of life."

To achieve its reduction goals, CenterPoint Energy will focus on four areas:

  1. Partnering with customers to offer affordable conservation and energy efficiency programs;
  2. Continuing to develop alternative fuel programs;
  3. Collaborating with our suppliers to lower their methane emissions; and
  4. Piloting and supporting innovation.

CenterPoint Energy has invested in infrastructure modernization, as well as research and development projects in recent years to reduce emissions, including carbon capture technology, the piloting of renewable natural gas, and improved methods for identifying and eliminating methane leaks. These technologies span the lifecycle of natural gas and other energy production, from extraction to consumer use and beyond. CenterPoint Energy's commitment will also include providing more consumer choice for alternative transportation fuels and expanding electric vehicle infrastructure in Texas and Indiana.

"There are significant benefits to transitioning to cleaner energy beyond just environmental," said Angila Retherford, CenterPoint Energy's vice president of Environmental Affairs and Corporate Sustainability. "By investing in new projects that lead to good-paying, green jobs, CenterPoint Energy is helping to support local communities, while showing how energy companies can be a partner in building America's clean energy future." 

CenterPoint Energy will work with partners, customers, employees and other stakeholders across its service territory to achieve its reduction goals. The company continues to offer customers energy efficiency programs and is investing in renewable forms of energy on both the natural gas and electric sides of the business. Furthermore, CenterPoint Energy will partner with natural gas suppliers to take meaningful steps to lower methane emissions across the natural gas value chain.

At the same time, CenterPoint Energy will continue to support the communities where it operates with their climate action goals. The company will focus on driving lower emissions across the natural gas value chain to ensure its continued role in supporting the transition of the nation's power generation fleet to meet lower carbon emission goals.

Forward Looking Statement
This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this news release, 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 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 events, such as the company's carbon policy emission reduction goals, focus areas and related timing thereof, the continuation of customer programs, the anticipated transition of the power generation fleet 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. Factors that could affect actual results include the timing and impact of future regulatory and legislative decisions, effects of competition, weather variations, changes in business plans, financial market conditions and other factors discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

About CenterPoint Energy
Headquartered in Houston, Texas, CenterPoint Energy, Inc. is an energy delivery company with regulated utility businesses in eight states and a competitive energy businesses footprint in nearly 40 states. Through its electric transmission & distribution, power generation and natural gas distribution businesses, the company serves more than 7 million metered customers in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas. CenterPoint Energy's competitive energy businesses include natural gas marketing and energy-related services; energy efficiency, sustainability and infrastructure modernization solutions; and construction and repair services for pipeline systems, primarily natural gas. The company also owns 53.7 percent of the common units representing limited partner interests in Enable Midstream Partners, LP, a publicly traded master limited partnership that owns, operates and develops strategically located natural gas and crude oil infrastructure assets. With approximately 14,000 employees and nearly $35 billion in assets, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.

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Media Relations
Media Access Line: 713.619.5143
Media.Relations@CenterPointEnergy.com

 

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CenterPoint Energy reports strong Q1 2021 earnings

Houston - May 6, 2021 - CenterPoint Energy, Inc. (NYSE: CNP) today reported income available to common shareholders of $334 million, or $0.56 per diluted share, for the first quarter of 2021, compared to a loss available to common shareholders of $1,228 million, or a loss of $2.44 per diluted share, for the first quarter of 2020. First quarter 2020 results included after-tax non-cash impairment charges related to our midstream investments.

  • Q1 2021 earnings of $0.56 per diluted share; $0.59 per diluted share on a non-GAAP basis, including strong results from utility operations of $0.47
  • Reaffirming 2021 Utility EPS guidance (“Utility EPS”) range of $1.24 - $1.26 and reiterating 6% - 8% Utility EPS annual growth rate target
  • On path to deliver 10% compound annual rate base growth through $16 billion 5-year capital plan
  • Rollout of our transition to Net-Zero, as part of our ESG strategy, later this year

On a non-GAAP basis, first quarter 2021 earnings were $0.59 per diluted share, with $0.47 per diluted share from utility operations, and $0.12 per diluted share from midstream investments, compared to $0.50 per diluted share from utility operations and $0.10 per diluted share from midstream investments in first quarter 2020. The utility growth drivers, including organic growth, rate recovery and ongoing cost management contributed $0.09 per diluted share of favorable variance when compared to the first quarter of 2020. This was offset by the impact of $0.12 negative variance attributable to the May of 2020 equity issuance and one-time CARES Act benefit in the first quarter of 2020. 

"The increasing strength of our utility operations contributed to our strong first quarter results," said Dave Lesar, President and Chief Executive Officer of CenterPoint Energy. "We are developing a consistent track record of delivering on our financial and strategic objectives that we outlined during our 2020 Investor Day."

Lesar added, "Regarding our financial objectives, we are reaffirming our 2021 Utility EPS range of $1.24 - $1.26. In addition, we are on a path to deliver on our industry-leading 10% compound annual rate base growth target which is supported by our current $16 billion 5-year capital plan. These investments, coupled with our O&M discipline and organic customer growth of approximately 2% per year, will advance us towards delivering on a consistent long-term 6% - 8% Utility EPS annual growth target while keeping rates affordable for our customers."

"Regarding strategic objectives, we recently announced the agreement to sell our Arkansas and Oklahoma gas LDC businesses for $1.725 billion, net of winter storm related gas costs, representing a landmark valuation. At this sales price, we now anticipate that this transaction will provide us with approximately $300 million of incremental after-tax proceeds, compared to our Investor Day plan. These additional proceeds will now allow us the opportunity to begin to invest above our current $16 billion capital plan after the sale closes."

"Another strategic goal we are targeting later this year is the roll out of an industry-leading Net Zero ESG plan which is also in line with our commitments from Investor Day. I strongly believe that the strategy we laid out and the progress we have made so far more than demonstrates the unique value proposition CenterPoint offers," said Dave Lesar.

Earnings Outlook

Given the recently announced merger between Enable and Energy Transfer, CenterPoint Energy will only be presenting a Utility EPS guidance range for 2021 as Enable did not provide 2021 guidance during its recent earnings call.

In addition to presenting its financial results in accordance with GAAP, including presentation of income (loss) available to common shareholders and diluted earnings (loss) per share, CenterPoint Energy provides guidance based on non-GAAP income and non-GAAP diluted earnings per share. 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.

Management evaluates CenterPoint Energy's financial performance in part based on non-GAAP income and non-GAAP earnings per share. Management believes 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 do 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 non-GAAP income and non-GAAP diluted earnings per share measures should be considered as a supplement to, and not as a substitute for, or superior to, income available to common shareholders 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.

(1) Utility EPS Guidance Range

  •  The Utility EPS guidance range includes net income from Electric and Natural Gas segments, as well as after tax Corporate and Other operating income and an allocation of corporate overhead based upon the Utility's relative earnings contribution. Corporate overhead consists primarily of interest expense, preferred stock dividend requirements, and other items directly attributable to the parent along with the associated income taxes.
  • The Utility EPS guidance excludes:
    • Earnings or losses from the change in value of ZENS and related securities
    • Certain expenses associated with Vectren merger integration
    • Midstream Investments segment and associated income from the Enable preferred units and a corresponding amount of debt in addition to an allocation of associated corporate overhead and impact, including related expenses, associated with the merger between Enable and Energy Transfer
    • Cost associated with the early extinguishment of debt
    • Gain and impact, including related expenses, associated with gas LDC sales

In providing this guidance, CenterPoint Energy does not consider the items noted above and other potential impacts such as changes in accounting standards, impairments or other unusual items, which could have a material impact on GAAP reported results for the applicable guidance period. The 2021 Utility EPS guidance range also considers assumptions for certain significant variables that may impact earnings, such as customer growth and usage including normal weather, throughput, recovery of capital invested, effective tax rates, financing activities and related interest rates, and regulatory and judicial proceedings. In addition, the 2021 Utility EPS guidance range assumes a continued re-opening of the economy in CenterPoint Energy's service territories throughout 2021. To the extent actual results deviate from these assumptions, the 2021 Utility EPS guidance range may not be met or the projected annual Utility EPS growth rate may change. CenterPoint Energy is unable to present a quantitative reconciliation of forward-looking non-GAAP diluted earnings per share because changes in the value of ZENS and related securities, future impairments, and other unusual items are not estimable and are difficult to predict due to various factors outside of management's control.

(2) Midstream Investments EPS Expected Range

Midstream guidance is not initiated at this time as a result of a pending merger between Enable and Energy Transfer. CenterPoint Energy will continue to record its share of Enable's earnings as well as basis difference accretion, earnings from the Enable preferred distributions net of an associated amount of debt, interest on the Midstream note, and an allocation of corporate overhead based on Midstream Investment segment's relative earnings contribution until the transaction closes.

Upon closing of the transaction, CenterPoint Energy's investment in Energy Transfer will be accounted for as an equity method investment with a fair value option. Following the closing of the transaction, CenterPoint Energy will establish Midstream Investments EPS expected range based on the distributions from Energy Transfer and the debt and corporate allocations previously described as a component of our Midstream Investments, excluding market-to-market gains or losses recorded for the Energy Transfer investments.

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 quarter ended March 31, 2021. A copy of that report is available on the company's website, under the Investors section. Investors and others should note that we may announce material information using SEC filings, press releases, public conference calls, webcasts, and the Investor Relations page of our website.  In the future, we will continue to use these channels to distribute material information about the company and to communicate important information about the company, key personnel, corporate initiatives, regulatory updates and other matters.  Information that we post on our website could be deemed material; therefore we encourage investors, the media, our customers, business partners and others interested in our company to review the information we post on our website.

Webcast of Earnings Conference Call

CenterPoint Energy's management will host an earnings conference call on Thursday, May 6, 2021, at 7:00 a.m. Central time/8:00 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.

About CenterPoint Energy, Inc.

As the only investor owned electric and gas utility based in Texas, CenterPoint Energy, Inc. (NYSE: CNP) is an energy delivery company with electric transmission and distribution, power generation and natural gas distribution operations that serve more than 7 million metered customers in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas. As of March 31, 2021, the company owned approximately $36 billion in assets and also owned 53.7 percent of the common units representing limited partner interests in Enable Midstream Partners, LP, a publicly traded master limited partnership that owns, operates and develops strategically located natural gas and crude oil infrastructure assets. With approximately 9,500 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.

Forward-looking Statements

This news release includes, and the earnings conference call will include, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this news release, 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 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 on the earnings conference call regarding capital investments, rate base growth and our ability to achieve it, future earnings and guidance, including long-term growth rate, and future financial performance and results of operations, including with respect to regulatory actions, the expected closing of, or proceeds from the merger between Enable and Energy Transfer or the sale of our Arkansas and Oklahoma gas LDC businesses, customer rate affordability, value creation, opportunities and expectations, ESG strategy, including transition to Net-Zero, or ESG plan rollout and any other statements that are not historical facts are forward-looking statements. Each forward-looking statement contained in this news release or discussed on the earnings conference call speaks only as of the date of this release or the earnings conference call.

Important factors that could cause actual results to differ materially from those indicated by the provided forward-looking information include, but are not limited to, risks and uncertainties relating to: (1) the performance of Enable, the amount of cash distributions CenterPoint Energy receives from Enable, and the value of CenterPoint Energy's interest in Enable;

(2) the integration of the businesses acquired in the merger with Vectren Corporation (Vectren), including the integration of technology systems, and the ability to realize additional benefits and commercial opportunities from the merger;

(3) financial market and general economic conditions, including access to debt and equity capital and the effect on sales, prices and costs; (4) industrial, commercial and residential growth in CenterPoint Energy's service territories and changes in market demand; (5) actions by credit rating agencies, including any potential downgrades to credit ratings; (6) the timing and impact of regulatory proceedings and actions and legal proceedings, including those related to the February 2021 winter storm event; (7) legislative decisions, including tax and developments related to the environment such as global climate change, air emissions, carbon, waste water discharges and the handling of coal combustion residuals, among others, and CenterPoint Energy's carbon reduction targets; (8) the impact of the COVID-19 pandemic; (9) the recording of impairment charges, including any impairments related to CenterPoint Energy's investment in Enable; (10) weather variations and CenterPoint Energy's ability to mitigate weather impacts, including impacts from the February 2021 winter storm event; (11) changes in business plans; (12) CenterPoint Energy's ability to fund and invest planned capital, and timely and appropriate rate actions that allow recovery of costs and a reasonable return on investment, including costs associated with the February 2021 winter storm event; (13) CenterPoint Energy's or Enable's potential business strategies and strategic initiatives, restructurings, joint ventures and acquisitions or dispositions of assets or businesses, including the announced sale of our Natural Gas businesses in Arkansas and Oklahoma, which may not be completed or result in the benefits anticipated by CenterPoint Energy, and the proposed merger between Enable and Energy Transfer, which may not be completed or result in the benefits anticipated by CenterPoint Energy or Enable; (14) CenterPoint Energy's ability to execute operations and maintenance management initiatives; and (15) other factors discussed in CenterPoint Energy's March 31, 2021 Form 10-Q and 2020 Form 10-K, including in the "Risk Factors" and "Cautionary Statement Regarding Forward-Looking Information" sections of such reports, and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

CenterPoint Energy names Eric Easton Vice President, Real-Time Operations

Houston – May 4, 2021 – CenterPoint Energy today announced Eric Easton has been named Vice President, Real-Time Operations. In this leadership role, Easton leads the company's real-time electricity operations in Texas and Indiana. He works to enhance alignment and bring technological advances to the company's operating systems. Eric also manages the relationships with grid operators within CenterPoint Energy's electric service territory.

Easton began his career with CenterPoint Energy in 2007. Most recently, he served as Director, Real-Time Operations. Over his 13 years at CenterPoint Energy, he has held roles of increasing responsibility, including Engineer and Manager in Real-Time Operations, as well as in multiple areas of Electric Engineering.

“Through his hard work and leadership, Eric has proven to be a valuable member of our company and team. His knowledge and expertise make him well deserving of this promotion,” said Lynnae Wilson, CenterPoint Energy’s Senior Vice President, High Voltage Operations. “Eric was instrumental during the recent winter weather and power generation shortfall event in Texas, as he was able to lead his team in the extraordinary effort to maintain grid stability, while facing unprecedented circumstances. Eric also led CenterPoint Energy’s efforts to restore electricity to our customers safely and quickly as soon as the power became available.”

Easton received a bachelor’s degree in electric engineering from Prairie View A&M University, a Master of Business Administration degree from the University of Nebraska at Omaha, and a doctoral research degree in systems engineering from Texas Tech University. He is a registered Professional Engineer in the state of Texas and one of the inventors of CenterPoint Energy’s patented substation electromagnetic mitigation module.

As the only investor-owned electric and gas utility based in Texas, CenterPoint Energy, Inc. (NYSE: CNP) is an energy delivery company with electric transmission and distribution, power generation and natural gas distribution operations that serve more than 7 million metered customers in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas. As of December 31, 2020, the company owned approximately $33 billion in assets and also owned 53.7 percent of the common units representing limited partner interests in Enable Midstream Partners, LP, a publicly traded master limited partnership that owns, operates and develops strategically located natural gas and crude oil infrastructure assets. With approximately 9,500 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.

CenterPoint Energy completes name transition in Indiana and Ohio

Evansville, Ind. May 3, 2021 – CenterPoint Energy has reached a milestone in completing the transition of company facilities, uniforms, vehicles, and customer bills and systems to feature the CenterPoint Energy name and logo in Indiana and Ohio. The transition further unifies the company and its commitment to deliver energy to millions of customers across its eight-state footprint.

"With the retirement of the Vectren name, we are proud to move forward with the CenterPoint Energy name and logo throughout our Indiana and Ohio service territory," said Richard Leger, Vice President of Natural Gas Distribution. "While our name will be changing in Indiana and Ohio, we will continue our longstanding commitment to provide safe and reliable service to the customers who count on us every day for their natural gas and electricity needs."

Signage at CenterPoint Energy properties, including corporate and field office buildings, as well as electric and natural gas facilities throughout Indiana and Ohio, have been updated. CenterPoint Energy employees working in the field are now wearing uniforms and driving trucks with the new logo. Employees will also be wearing CenterPoint Energy shirts when volunteering in the community.

Other completed transition updates include:

  • Customer bills: Beginning this week, CenterPoint Energy customers in Indiana and Ohio will receive their bills with the CenterPoint Energy logo. Depending on customer billing cycles, customers could receive one additional bill with the Vectren logo.
  • Website: To access online accounts, pay bills and for other company information, customers should visit www.centerpointenergy.com and choose their applicable state from the service area drop down menu. At this time, if customers type or link to Vectren.com, they will be redirected to the new site.
  • Social media: Information about the company can be found on social media on Facebook (CenterPoint Energy) and Twitter (@CenterPoint). Customers in the company's southwest Indiana electric territory can now find updates on electric outages by following @CNPalerts_IN on Twitter, formerly @VectrenStorm.
  • Vectren mobile app: The Vectren mobile app has been retired. Customers can access their online account to pay their bill or report a power outage by visiting www.centerpointenergy.com, which is mobile-friendly.

"While the company has reached this milestone by transitioning the majority of assets, completely phasing out the Vectren name will take some time," said Leger. "A combination of Vectren and CenterPoint Energy logos might still be found throughout our territory, and we appreciate our customers' patience as we work to remove them."

Customers will continue to use the same number to report emergencies or reach company representatives by calling 1-800-227-1376 from the hours of 7 a.m. to 7 p.m. Eastern, Monday through Friday. 

About CenterPoint Energy

As the only investor-owned electric and gas utility based in Texas, CenterPoint Energy, Inc. (NYSE: CNP) is an energy delivery company with electric transmission and distribution, power generation and natural gas distribution operations that serve more than 7 million metered customers in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas. As of December 31, 2020, the company owned approximately $33 billion in assets and also owned 53.7 percent of the common units representing limited partner interests in Enable Midstream Partners, LP, a publicly traded master limited partnership that owns, operates and develops strategically located natural gas and crude oil infrastructure assets. With approximately 9,500 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. Programs and services are operated under the brand CenterPoint Energy by Indiana Gas Company, Inc. d/b/a CenterPoint Energy Indiana North, Southern Indiana Gas and Electric Company d/b/a CenterPoint Energy Indiana South and Vectren Energy Delivery of Ohio, Inc. d/b/a CenterPoint Energy Ohio in their respective service territories. For more information, visit CenterPointEnergy.com.

CenterPoint announces sale of Arkansas and Oklahoma natural gas LDC businesses to Summit Utilities for $2.150 billion in cash

Houston – [April 29, 2021] - CenterPoint Energy, Inc. (NYSE: CNP) ("CenterPoint") today announced the sale of its Arkansas and Oklahoma natural gas LDC assets to Summit Utilities for $2.150 billion in cash, including recovery of approximately $425 million in cash of unrecovered storm-related incremental natural gas costs incurred in February 2021, subject to true-up at transaction close. The assets include approximately 17,000 miles of main pipeline in Arkansas, Oklahoma, and Texarkana serving more than half a million customers residing in high-quality regulatory jurisdictions.  

  • CenterPoint to receive $2.150 billion in cash, including recovery of approximately $425 million in cash of unrecovered storm-related incremental natural gas costs incurred in February 2021
  • Transaction represents a landmark valuation at 38.0x 2020 earnings and 2.5x 2020 year-end rate base
  • Sale proceeds will allow CenterPoint to recycle capital to fund its industry-leading 10% planned compound annual rate base growth
  • Sale will not impact company's targeted 6% - 8% annual utility non-GAAP EPS growth rate
  • Sale demonstrates significantly higher market value for natural gas infrastructure assets, including CenterPoint's remaining gas businesses

The proceeds of $1.725 billion in cash, after recovery of approximately $425 million in cash unrecovered storm costs, represents a 2.5x multiple of 2020 rate base and a 38.0x multiple of 2020 earnings. The transaction is anticipated to close by the end of 2021, subject to customary closing conditions, including Hart-Scott Rodino antitrust clearance and state regulatory approvals.

CenterPoint President and CEO Dave Lesar said, "I could not be more excited to share this announcement today. Summit Utilities is a seasoned operator of utility assets in the region and the ideal company to acquire these assets. We are excited that Summit has existing businesses in Arkansas and Oklahoma, which will facilitate the transition process for our employees and customers. Summit has an industry track record of being a high-quality operator and we are confident they will continue to provide safe, reliable, and low-cost natural gas service to our customers in Arkansas and Oklahoma."

Lesar added, "This transaction reflects the hard work and determination of everyone on the CenterPoint team. This valuation represents a landmark multiple for the LDC space and is a clear testament of the premium utility assets in these two jurisdictions. These assets are a proven integral part of the energy supplies in the states in which they operate. The solid customer demand for reliable and efficient distribution of natural gas was only solidified by the recent winter storm events. We believe the price paid for these assets demonstrates that the market is significantly undervaluing the remainder of our natural gas businesses."  

"The announcement demonstrates not only our ability to efficiently recycle capital across our utility footprint, but also our ability to execute on our commitments to our shareholders. As outlined in our December 2020 Investor Day, our commitments include delivering annualized utility earnings per share growth of 6% - 8% and growing our rate base at a 10% compound annual growth rate. The ability to efficiently redeploy this capital and the eventual exit of the midstream investments will have no impact on our targeted 6% - 8% annualized earnings per share growth rate. Further, we will also be eliminating the Oklahoma and Arkansas storm-related incremental natural gas cost from our balance sheet," said Lesar.

"We look forward to announcing our first quarter of 2021 financial results during our earnings call on May 6," he said.

J.P. Morgan Securities LLC. and RBC Capital Markets, LLC. served as CenterPoint Energy's financial advisors. Baker Botts L.L.P. served as CenterPoint Energy's legal advisors.

About CenterPoint Energy, Inc.

As the only investor-owned electric and gas utility based in Texas, CenterPoint Energy, Inc. (NYSE: CNP) is an energy delivery company with electric transmission and distribution, power generation and natural gas distribution operations that serve more than 7 million metered customers in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas. As of December 31, 2020, the company owned approximately $33 billion in assets and also owned 53.7 percent of the common units representing limited partner interests in Enable Midstream Partners, LP, a publicly traded master limited partnership that owns, operates and develops strategically located natural gas and crude oil infrastructure assets. With approximately 9,500 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.

About Summit Utilities, Inc.

Summit Utilities, Inc. (Summit) owns natural gas distribution and transmission subsidiaries that operate in Arkansas, Colorado, Maine, Missouri, and Oklahoma. The company provides safe, clean and affordable natural gas to businesses and residents in five states through Colorado Natural Gas, Inc., Summit Natural Gas of Missouri, Inc., Summit Natural Gas of Maine, Inc. and Arkansas Oklahoma Gas Corporation. Each of Summit's subsidiaries constructs and installs natural gas distribution systems with the goal of supporting economic development by providing clean-burning, safe and reliable natural gas to residential and commercial customers through exceptional customer service and commitment to community. Overall, Summit entities serve approximately 100,000 customers and operate more than 5,400 miles of pipeline in Arkansas, Colorado, Maine, Missouri and Oklahoma.

Use of Non-GAAP Measures

As included in this press release, our utility growth target of 6-8% is based on a non-GAAP utility earnings per share ("Utility EPS"), which is not a generally accepted accounting principles ("GAAP") financial measure. This non-GAAP EPS based utility growth rate has been previously referenced by the CenterPoint Energy as the guidance- based growth rate. 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. The Utility EPS   range reflects dilution and earnings as if the Company's Series B Preferred Stock converted on their mandatory conversion date. Utility EPS guidance range considers assumptions for certain significant variables that may impact earnings, such as customer growth and usage including normal weather, throughput, recovery of capital invested, effective tax rates, financing activities and related interest rates, regulatory and judicial proceedings. In addition, the Utility EPS guidance range assumes a continued re-opening of the economy in CenterPoint Energy's service territories throughout 2021. To the extent actual results deviate from these assumptions, the Utility EPS guidance range may not be met and our projected annual Utility EPS growth rate range may change. Utility EPS includes an allocation of corporate overhead based upon our Utility segments relative earnings contribution. Corporate overhead consists primarily of interest expense, preferred stock dividend requirements and other items directly attributable to the parent along with associated income taxes, and considers certain significant variables that may impact earnings.  Utility EPS excludes (a) earnings or losses from the change in value of the Company's 2.0% Zero-Premium Exchangeable Subordinated Notes due 2029 ("ZENS") and related securities, (b) certain expenses associated with merger integration, and (c) Midstream Investments, including income from the Enable preferred units and a corresponding amount of debt in addition to an associated allocation of corporate overhead based on relative earnings contribution. Utility EPS guidance also does not include other potential impacts, such as changes in accounting standards, impairments or unusual items, which could have a material impact on GAAP reported results for the applicable guidance period. CenterPoint Energy is unable to present a quantitative reconciliation of forward-looking Utility EPS because changes in the value of ZENS and related securities, future impairments and other unusual items are not estimable as they are highly variable and difficult to predict due to various factors outside of management's control.  Management evaluates CenterPoint Energy's financial performance in part based on Utility EPS. Management believes that presenting this non-GAAP financial measure 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 this non-GAAP financial measure exclude items that Management believes does not most accurately reflect the Company's fundamental business performance. CenterPoint Energy's Utility EPS non-GAAP financial measure should be considered as a supplement to, and not as a substitute for, or superior to, diluted earnings per share, which is the most directly comparable GAAP financial measure. This non-GAAP financial measure also may be different than non-GAAP financial measures used by other companies

Forward-Looking Statements

The statements in this press release contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact included in this press release are forward-looking statements made in good faith by us and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995.  When used in this press release, 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 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. Forward-looking statements include, but are not limited to, statements relating to the consideration CenterPoint Energy expects to receive, the timing of closing the transaction, long-term growth strategy and investment plan, capital deployment, rate base growth, and CenterPoint Energy's guidance basis utility earnings per share and guidance basis utility earnings per share growth target. Each forward-looking statement contained in this press release speaks only as of the date of this release. 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 timing of the expiration or termination of the Hart-Scott-Rodino waiting period and the receipt of any consents, waivers or approvals required to be obtained pursuant to applicable antitrust or regulatory laws, (2) 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, (3) the risk that a condition to the closing of the proposed transactions may not be satisfied, 4) the outcome of any legal proceedings, regulatory proceedings or enforcement matters that may be instituted relating to the proposed transactions, (5) the timing to consummate the proposed transactions, (6) disruption from the proposed transactions making it more difficult to maintain relationships with customers, employees, regulators or suppliers, (7) the diversion of management time and attention on the proposed transactions and (8) other factors discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2020 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission (SEC).

 

 

CenterPoint Energy urges Arkansas customers with unpaid balances to call now to set up payment plan arrangements

Little Rock, Ark. – April 26, 2021 – CenterPoint Energy is urging its Arkansas customers with unpaid balances to contact the utility now to set up payment plan arrangements, with the moratorium on service disconnections for nonpayment scheduled to end on May 3.

CenterPoint Energy recognizes that some customers have accumulated unpaid balances on their utility bill due to financial hardships from the impact of the COVID-19 pandemic. Since March last year, the utility has suspended disconnections for nonpayment. However, the Arkansas Public Service Commission is removing the moratorium on disconnections effective May 3.

When the moratorium ends, customers with unpaid balances who have not made payment arrangements with the utility will be subject to disconnection.

To help customers avoid interruption of their service, CenterPoint Energy offers several flexible payment options, including an 18-month delayed payment arrangement that is available for a limited time. Under this option, a customer can pay their overdue balance in equal installments for a period of up to 18 months. As long as the customer pays their current bill amount and the monthly installment by the due date each month, service will not be disconnected.

CenterPoint Energy can also help direct customers to energy payment assistance resources such as the federally funded Low Income Home Energy Assistance Program (LIHEAP).

Customers who need bill payment assistance or who have already received a disconnection notice should contact CenterPoint Energy as soon as possible – either online at CenterPointEnergy.com/PaymentAssistance or by calling customer service at 800-992-7552.

About CenterPoint Energy

As the only investor-owned electric and gas utility based in Texas, CenterPoint Energy, Inc. (NYSE: CNP) is an energy delivery company with electric transmission and distribution, power generation and natural gas distribution operations that serve more than 7 million metered customers in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas. As of December 31, 2020, the company owned approximately $33 billion in assets and also owned 53.7 percent of the common units representing limited partner interests in Enable Midstream Partners, LP, a publicly traded master limited partnership that owns, operates and develops strategically located natural gas and crude oil infrastructure assets. With approximately 9,500 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.