CenterPoint Energy reports third quarter 2019 earnings of $0.47 per diluted share; $0.53 earnings per diluted share on a guidance basis, excluding certain impacts associated with the Vectren merger

Houston - November 7, 2019 - CenterPoint Energy, Inc. (NYSE: CNP) today reported income available to common shareholders of $241 million, or $0.47 per diluted share, for the third quarter of 2019, compared with $153 million, or $0.35 per diluted share for the third quarter of 2018. On a guidance basis, third quarter 2019 earnings were $0.53 per diluted share, excluding certain impacts associated with the Vectren merger (the merger). Third quarter 2018 earnings, on a guidance basis and excluding certain impacts associated with the merger, were $0.39 per diluted share.

"Our utilities delivered another strong performance this quarter, driven by solid customer growth, disciplined cost management and favorable weather," said Scott M. Prochazka, president and chief executive officer of CenterPoint Energy. "This strong performance is expected to drive our anticipated 2019 full year results towards the upper end of our guidance range."

Business Segments

Houston Electric - Transmission & Distribution

The Houston electric - transmission & distribution segment reported operating income of $269 million for the third quarter of 2019, consisting of $261 million from the regulated electric transmission and distribution utility operations (TDU) and $8 million related to securitization bonds. Operating income for the third quarter of 2018 was $227 million, consisting of $214 million from the TDU and $13 million related to securitization bonds. Operating income for the TDU benefited primarily from lower operation and maintenance expenses, higher usage primarily due to warmer than normal weather, customer growth and rate relief. These benefits were partially offset by increased depreciation and amortization expense, lower equity return, primarily related to the annual true-up of transition charges, and lower revenues related to the Tax Cuts and Jobs Act (TCJA).

Indiana Electric – Integrated

The Indiana electric – integrated segment reported operating income of $48 million for the third quarter of 2019. These results are not comparable to the third quarter of 2018 as this segment was acquired in the merger in February 2019.

Natural Gas Distribution

The natural gas distribution segment reported operating income of $27 million for the third quarter of 2019, compared with $3 million for the third quarter of 2018. Operating income increased $7 million due to the gas utilities acquired in the merger in February 2019. The remaining increase is primarily due to lower operation and maintenance expenses, rate relief and customer growth. These increases were partially offset by the timing of a decoupling mechanism in Minnesota and lower revenues related to the TCJA.

Energy Services

The energy services segment reported operating income of $2 million for the third quarter of 2019, which included a mark-to-market loss of $2 million, compared with an operating loss of $9 million for the third quarter of 2018, which included a mark-to-market gain of $1 million. Excluding mark-to-market adjustments, operating income was $4 million for the third quarter of 2019 compared with an operating loss of $10 million for the third quarter of 2018. Operating income, excluding mark-to-market adjustments, increased primarily as a result of an increase in margin due to fewer opportunities to optimize natural gas supply costs in the third quarter of 2018 and decreased operation and maintenance expenses.

Infrastructure Services

The infrastructure services segment reported operating income of $42 million for the third quarter of 2019. Operating income includes $6 million of merger-related expenses. These results are not comparable to the third quarter of 2018 as this segment was acquired in the merger in February 2019.

Midstream Investments

The midstream investments segment reported $77 million of equity income for the third quarter of 2019, compared with $81 million in the third quarter of 2018. For further detail, please refer to Enable's investor materials provided during its 3rd quarter earnings call on November 6, 2019.

Corporate and Other

The corporate and other segment reported operating income of $4 million for the third quarter of 2019, compared with $5 million for the third quarter of 2018. Operating income for the third quarter of 2019 included $19 million of merger-related expenses. Operating income for the third quarter of 2018 included $5 million of merger-related expenses.

Earnings Outlook

  •  Anticipate delivering full year 2019 guidance basis EPS near the upper end of our guidance range of $1.60 - $1.70. This guidance excludes:
    • Certain impacts associated with the merger:
      • Integration and transaction-related fees and expenses, including severance and other costs to achieve the anticipated cost savings as a result of the merger
      • Merger financing impacts in January, prior to the completion of the merger, due to the issuance of debt and equity securities to fund the merger that resulted in higher net interest expense, preferred stock dividend requirements and higher common stock share count
    • Potential impacts of the pending Houston Electric rate case
  • 2020 guidance range and EPS growth target to be provided on fourth quarter 2019 earnings call following normal annual financial planning process


The 2019 guidance range considers operations performance to date and assumptions for certain significant variables that may impact earnings, such as customer growth (approximately 2% for electric operations and 1% for natural gas distribution) and usage including normal weather, throughput, commodity prices, recovery of capital invested through rate cases and other rate filings (excluding potential impacts of the pending Houston Electric rate case), effective tax rates, financing activities and related interest rates, and regulatory and judicial proceedings as well as the volume of work contracted in our infrastructure services business.  The range also considers anticipated cost savings as a result of the merger.  The range assumes the lower end of Enable Midstream Partners, LP's (Enable) 2019 guidance range for net income attributable to common units, provided on Enable's 3rd quarter earnings call on November 6, 2019.

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, including those from Enable, earnings or losses from the change in the value of ZENS and related securities, or the timing effects of mark-to-market accounting in the company's Energy Services business, which, along with the certain excluded impacts associated with the merger and potential impacts of the pending Houston Electric rate case, 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 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 as they are highly variable and difficult to predict due to various factors outside of management's control.

 


  Quarter Ended ​ ​ ​ ​
  September 30, 2019September 30, 2018
  Dollars
in millions
Diluted EPS(1) Dollars
in millions
Diluted EPS(1)
Consolidated income available to common shareholders and diluted EPS$241$0.47$153$0.35
Timing effects impacting CES (2):    
Mark-to-market (gains) losses (net of taxes of $1 and $0) (3)1(1)
ZENS-related mark-to-market (gains) losses:    
Marketable securities (net of taxes of $12 and $9) (3)(4)(47)(0.09)(34)(0.08)
Indexed debt securities (net of taxes of $12 and $10) (3)500.10340.08
Consolidated on a guidance basis$245$0.48$152$0.35
Impacts associated with the Vectren merger:    
Impacts associated with the Vectren merger (net of taxes of $5 and $2) (3)200.05180.04
Consolidated on a guidance basis, excluding impacts associated with the Vectren merger$265`$0.53$170$0.39

 

(1) Quarterly diluted EPS on both a GAAP and guidance basis are based on the weighted average number of shares outstanding during the quarter, and the sum of the quarters may not equal year-to-date diluted EPS

(2) Energy Services segment

(3) Taxes are computed based on the impact removing such item would have on tax expense

(4) Comprised of common stock of AT&T Inc. and Charter Communications, Inc

Filing of Form 10-Q for CenterPoint Energy, Inc.

Today, CenterPoint Energy, Inc. filed with the Securities and Exchange Commission (SEC) its Quarterly Report on Form 10-Q for the quarter ended September 30, 2019. 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, November 7, 2019, at 9:00 a.m. Central time/10:00 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.

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 approximately $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.

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 Enable 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 goodwill, long-lived asset or other than temporary impairment charges by or related to Enable; (F) the timing of payments from Enable's customers in existing contracts, including minimum volume commitment payments; (G) changes in tax status; and (H) access to debt and equity capital; (2) CenterPoint Energy's expected benefits of the merger with Vectren Corporation (Vectren) and integration, including the outcome of shareholder litigation filed against Vectren that could reduce anticipated benefits of the merger, as well as the ability to successfully integrate the Vectren businesses and to realize anticipated benefits and commercial opportunities; (3) industrial, commercial and residential growth in CenterPoint Energy's service territories and changes in market demand, including the demand for CenterPoint Energy's non-utility products and services and effects of energy efficiency measures and demographic patterns; (4) the outcome of the pending Houston Electric rate case; (5) timely and appropriate rate actions that allow recovery of costs and a reasonable return on investment; (6) future economic conditions in regional and national markets and their effect on sales, prices and costs; (7) weather variations and other natural phenomena, including the impact of severe weather events on operations and capital; (8) 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; (9) tax legislation, including the effects of the comprehensive tax reform legislation informally referred to as the Tax Cuts and Jobs Act (which includes any potential changes to interest deductibility) and uncertainties involving state commissions' and local municipalities' regulatory requirements and determinations regarding the treatment of excess deferred income taxes and CenterPoint Energy's rates; (10) CenterPoint Energy's ability to mitigate weather impacts through normalization or rate mechanisms, and the effectiveness of such mechanisms; (11) the timing and extent of changes in commodity prices, particularly natural gas and coal, and the effects of geographic and seasonal commodity price differentials; (12) the ability of CenterPoint Energy's and CERC's non-utility business operating in the Energy Services reportable segment to effectively optimize opportunities related to natural gas price volatility and storage activities, including weather-related impacts; (13) actions by credit rating agencies, including any potential downgrades to credit ratings; (14) changes in interest rates and their impact on CenterPoint Energy's costs of borrowing and the valuation of its pension benefit obligation; (15) problems with regulatory approval, legislative actions, 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; (16) the availability and prices of raw materials and services and changes in labor for current and future construction projects; (17) local, state and federal legislative and regulatory actions or developments relating to the environment, including those related to global climate change, air emissions, carbon, waste water discharges and the handling and disposal of coal combustion residuals (CCR) that could impact the continued operation, and/or cost recovery of generation plant costs and related assets; (18) the impact of unplanned facility outages or other closures; (19) 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, ice, earthquakes, explosions, leaks, floods, droughts, hurricanes, tornadoes, pandemic health events or other occurrences; (20) CenterPoint Energy's ability to invest planned capital and the timely recovery of CenterPoint Energy's investments, including those related to the generation transition plan; (21) CenterPoint Energy's ability to successfully construct and operate electric generating facilities, including complying with applicable environmental standards and the implementation of a well-balanced energy and resource mix, as appropriate; (22) CenterPoint Energy's ability to control operation and maintenance costs; (23) the sufficiency of CenterPoint Energy's insurance coverage, including availability, cost, coverage and terms and ability to recover claims; (24) the investment performance of CenterPoint Energy's pension and postretirement benefit plans; (25) 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; (26) changes in rates of inflation; (27) inability of various counterparties to meet their obligations to CenterPoint Energy; (28) non-payment for CenterPoint Energy's services due to financial distress of its customers; (29) the extent and effectiveness of CenterPoint Energy's and Enable's risk management and hedging activities, including but not limited to, financial and weather hedges and commodity risk management activities; (30) timely and appropriate regulatory actions, which include actions allowing securitization, for any future hurricanes or natural disasters or other recovery of costs, including costs associated with Hurricane Harvey; (31) CenterPoint Energy's or Enable's potential business strategies and strategic initiatives, including restructurings, joint ventures and acquisitions or dispositions of assets or businesses, which CenterPoint Energy and Enable cannot assure will be completed or will have the anticipated benefits to CenterPoint Energy or Enable; (32) the performance of projects undertaken by CenterPoint Energy's non-utility businesses and the success of efforts to realize value from, invest in and develop new opportunities and other factors affecting those non-utility businesses, including, but not limited to, the level of success in bidding contracts, fluctuations in volume and mix of contracted work, mix of projects received under blanket contracts, failure to properly estimate cost to construct projects or unanticipated cost increases in completion of the contracted work, changes in energy prices that affect demand for construction services and projects and cancellation and/or reductions in the scope of projects by customers and obligations related to warranties and guarantees; (33) acquisition and merger activities involving CenterPoint Energy or its competitors, including the ability to successfully complete merger, acquisition and divestiture plans; (34) CenterPoint Energy's or Enable's ability to recruit, effectively transition and retain management and key employees and maintain good labor relations; (35) the outcome of litigation; (36) the ability of retail electric providers (REPs), including REP affiliates of NRG Energy, Inc. and Vistra Energy Corp., formerly known as TCEH Corp., to satisfy their obligations to CenterPoint Energy and its subsidiaries; (37) changes in technology, particularly with respect to efficient battery storage or the emergence or growth of new, developing or alternative sources of generation; (38) the impact of alternate energy sources on the demand for natural gas; (39) the timing and outcome of any audits, disputes and other proceedings related to taxes; (40) the effective tax rates; (41) the transition to a replacement for the LIBOR benchmark interest rate; (42) the effect of changes in and application of accounting standards and pronouncements; and (43) other factors discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2018, CenterPoint Energy's Quarterly Report on Form 10-Q for the quarters ended March 31, 2019, June 30, 2019 and September 30, 2019 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

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 income available to common shareholders and diluted earnings per share, CenterPoint Energy also provides guidance based on adjusted 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 income and adjusted diluted earnings per share calculation excludes from income available to common shareholders 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's guidance for 2019 also does not reflect (a) certain impacts associated with the Vectren merger, which are integration and transaction-related fees and expenses, including severance and other costs to achieve anticipated cost savings as a result of the merger and merger financing impacts in January, prior to the completion of the merger due to the issuance of debt and equity securities to fund the merger that resulted in higher net interest expense, preferred stock dividend requirements and higher common stock share count and (b) potential impacts of the pending Houston Electric rate case. CenterPoint Energy is unable to present a quantitative reconciliation of forward-looking adjusted 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 as they are highly variable and difficult to predict due to various factors outside of management's control. These excluded items, along with the excluded impacts associated with the merger and potential impacts of the pending Houston Electric rate case, could have a material impact on GAAP reported results for the applicable guidance period.

Management evaluates the company's financial performance in part based on adjusted income and adjusted diluted 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 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 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, 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.


  Quarter Ended September 30, Nine Months Ended September 30,
  2019 2018 2019 2018
Revenues:        
Utility revenues$1,539$1,299$5,255$4,534
Non-utility revenues1,2039133,8163,019
Total2,7422,2129,0717,553
Expenses:        

Utility natural gas, fuel and purchased power

 

1791341,178959

Non-utility cost of revenues, including natural gas

 

8528643,0132,927
Operation and maintenance8715672,6161,714
Depreciation and amortization334326987982
Taxes other than income taxes11495353307
Total2,3501,9868,1476,889
Operating Income392226924664
Other Income (Expense):        
Gain on marketable securities594320666
Loss on indexed debt securities(62)(44)(216)(316)
Interest and other finance charges(134)(90)(389)(259)
Interest on Securitization Bonds(9)(16)(31)(46)
Equity in earnings of unconsolidated affiliates, net7781213208
Other income, net994016
Total(60)(17)(177)(331)
Income Before Income Taxes332209747333
Income tax expense625111385
Net Income270158634248
Preferred stock dividend requirement295885
Income Available to Common Shareholders$241$153$546$243

 


  Quarter Ended September 30, Nine Months Ended September 30,
  2019 2018 2019 2018
Basic Earnings Per Common Share$48$0.35$1.09$0.56
Diluted Earnings Per Common Share$0.47$0.35$1.08$0.56
Dividends Declared per Common Share$0.2875$0.2775$0.5750$0.5550
Dividends Paid per Common Share$0.2875$0.2775$0.8625$0.8325
Weighted Average Common Shares Outstanding (000):    
- Basic502,228431,554501,986431,437
- Diluted505,080434,891504,838434,774
Operating Income (Loss) by Reportable Segment        
Houston Electric T&D:    
TDU$261$214$495$480
Bond Companies8132743
Total Houston Electric T&D269227522523
Indiana Electric Integrated4864
Natural Gas Distribution273241166
Energy Services2(9)64(20)
Infrastructure Services4250
Corporate and Other45(17)(5)
Total$392$226$924$664

 

  Houston Electric T&D ​ ​ ​ ​ ​
  Quarter Ended September 30, % Diff Nine Months Ended September 30, % Diff
  2019 2018 Fav/Unfav 2019 2018 Fav/Unfav
Revenues:            
TDU$776$7356%$2,043$2,0092%
Bond Companies83162(49)%270493(45)%
Total859897(4)%2,3132,502(8)%
Expenses:            
Operation and maintenance, excluding Bond Companies3573673%1,0801,056(2)%
Depreciation and amortization, excluding Bond Companies95952822934%
Taxes other than income taxes6359(7)186180(3)%
Bond Companies7514950%24345046%
Total expenses59067012%1,7911,9799%
Operating Income$269$22719%$522$523
Operating Income:            
TDU$261$21422%$495$4803%
Bond Companies813(38)%2743(37)%
Total Segment Operating Income$269$22719%$522$523
Actual MWH Delivered            
Residential11,224,25610,554,6566%24,392,14124,486,317
Total28,379,26227,014,9255%71,416,61270,346,6012%
Weather (percentage of 10-year average for service area):           
Cooling degree days110%101%9%106%104%2%
Heating degree days93%95%(2)%
Number of metered customers - end of period:            
Residential2,232,7402,188,2112%2,232,7402,188,2112%
Total2,523,4502,475,0182%2,523,4502,475,0182%

 

  Indiana Electric Integrated (1)
  Quarter Ended
 September 30, 2019
Nine Months Ended
September 30, 2019 (1)
Revenues$165$388
Utility natural gas, fuel and purchased power46112
Revenues less Utility natural gas, fuel and purchased power119276
Expenses:    
Operation and maintenance42136
Depreciation and amortization2566
Taxes other than income taxes410
Total expenses71212
Operating Income$48$64
Actual MWH Delivered    
Retail1,4163,277
Wholesale139291
Total1,5553,568
Number of metered customers - end of period:    
Residential128,381128,381
Total147,337147,337
(1) Represents February 1, 2019 through September 30, 2019 results only due to the Merger.    

 

Natural Gas Distribution (1) ​ ​ ​ ​ ​
  Quarter Ended September 30, % Diff Nine Months Ended September 30, % Diff
  2019 2018 Fav/Unfav 2019 (1) 2018 Fav/Unfav
Revenues$524$41028%$2,583$2,05826%
Utility natural gas, fuel and purchased power125120(4)%1,118972(15)%
Revenues less Utility natural gas, fuel and purchased power39929038%1,4651,08635%
Expenses:            
Operation and maintenance221183(21)%767592(30)%
Depreciation and amortization10873(48)%308210(47)%
Taxes other than income taxes4331(39)%149118(26)%
Total expenses372287(30)%1,224920(33)%
Operating Income$27$3800%$241$16645%
Throughput data in BCF            
Residential161323%16012330%
Commercial and Industrial885366%32620857%
Total Throughput1046658%48633147%
Weather (average for service area)            
Percentage of 10-year average:            
Heating degree days18%119%(101)%100%103%(3)%
Number of customers - end of period:            
Residential4,194,2323,205,91631%4,194,2323,205,91631%
Commercial and Industrial344,858255,24435%344,858255,24435%
Total4,539,0903,461,16031%4,539,0903,461,16031%
(1) Includes acquired natural gas operations February 1, 2019 through September 30, 2019 results only due to the Merger. ​ ​ ​ ​ ​ ​
  Energy Services ​ ​ ​ ​ ​
  Quarter Ended September 30, % Diff Nine Months Ended September 30, % Diff
  2019 2018 Fav/Unfav 2019 2018 Fav/Unfav
Revenues$745$920(19)%$2,846$3,065(7)%
Non-utility cost of revenues, including natural gas71689720%2,6962,99810%
Revenues less Non-utility cost of revenues, including  natural gas292326%15067124%
Expenses:            
Operation and maintenance232818%73741%
Depreciation and amortization441212
Taxes other than income taxes11
Total expenses273216%86871%
Operating Income (Loss)$2$(9)122%$64$(20)420%
Timing impacts of mark-to-market gain (loss)$(2)$1(300)%$47$(71)166%
Throughput data in BCF283307(8)%960993(3)%
Number of customers - end of period31,00030,0003%31,00030,0003%

 

  Infrastructure Services (1)
  Quarter Ended
 September 30, 2019
Nine Months Ended
September 30, 2019 (1)
Revenues$377$849
Non-utility cost of revenues, including natural gas96228
Revenues less Non-utility cost of revenues, including  natural gas281621
Expenses:    
Operation and maintenance223530
Depreciation and amortization1539
Taxes other than income taxes12
Total expenses239571
Operating Income$42$50
Backlog at period end:    
Blanket contracts$637$637
Bid contracts301301
Total$938$938
(1) Represents February 1, 2019 through September 30, 2019 results only due to the Merger. ​ ​

 

  Corporate and Other ​ ​ ​ ​ ​
  Quarter Ended September 30, % Diff Nine Months Ended September 30, % Diff
  2019 2018 Fav/Unfav 2019 (1) 2018 Fav/Unfav
Revenues$93$33,000%$215$111,855%
Non-utility cost of revenues, including natural gas68158
Revenues less Non-utility cost of revenues, including  natural gas253733%5711418%
Expenses:            
Operation and maintenance2(13)(115)%25(14)(279)%
Depreciation and amortization169(78)%4424(83)%
Taxes other than income taxes32(50)%5617%
Total expenses21(2)(1,150)%7416(363)%
Operating Income (Loss)$4$5(20)%$(17)$(5)(240)%
(1) Includes acquired corporate and other operations February 1, 2019 through September 30, 2019 results only due to the Merger. ​ ​ ​ ​ ​  

 

  Capital Expenditures by Segment ​ ​ ​
  Quarter Ended September 30, Nine Months Ended September 30,
 20192018 2019 (1) 2018
Houston Electric T & D$239$252$722$669
Indiana Electric Integrated46135
Natural Gas Distribution324170773409
Energy Services5913
Infrastructure Services1452
Corporate and Other43713735
Total$666$434$1,828$1,126
(1) Includes capital expenditures of acquired businesses from February 1, 2019 through September 30, 2019 only due to the Merger. ​ ​ ​ ​
  Interest Expense Detail ​ ​ ​
  Quarter Ended September 30, Nine Months Ended September 30,
 20192018 2019 2018
Amortization of Deferred Financing Cost$8$16$22$34
Capitalization of Interest Cost(10)(2)(29)(6)
Securitization Bonds Interest Expense9163146
Other Interest Expense13676396231
Total Interest Expense$143$106$420$305

 

  September 30,
 2019
December 31,
 2018
ASSETS ​ ​
Current Assets:    
Cash and cash equivalents$259$4,231
Other current assets3,1572,794
Total current assets3,4167,025
Property, Plant and Equipment, net20,32814,044
Other Assets:  
Goodwill5,179867
Regulatory assets2,1941,967
Investment in unconsolidated affiliates2,4692,482
Preferred units – unconsolidated affiliate363363
Other non-current assets693261
Total other assets10,8985,940
Total Assets$34,642$27,009
LIABILITIES AND SHAREHOLDERS' EQUITY ​ ​
Current Liabilities:    
Current portion of securitization bonds long-term debt229458
Indexed debt2124
Current portion of other long-term debt618
Other current liabilities2,5662,820
Total current liabilities3,4343,302
Other Liabilities:    
Accumulated deferred income taxes, net3,8513,239
Regulatory liabilities3,4812,525
Other non-current liabilities1,5161,203
Total other liabilities8,8486,967
Long-term Debt:    
Securitization bonds817977
Other13,1977,705
Total long-term debt14,0148,682
Shareholders' Equity8,3468,058
Total Liabilities and Shareholders' Equity$34,642$27,009

 

  Nine Months Ended September 30,
  2019 2018
Net income$634$248
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization1,0281,016
Deferred income taxes833
Write-down of natural gas inventory52
Equity in earnings of unconsolidated affiliates, net of distributions13(15)
Changes in net regulatory assets and liabilities(101)44
Changes in other assets and liabilities(511)341
Other, net1010
Net cash provided by operating activities1,0861,679
Net cash used in investing activities(7,775)(674)
Net cash provided by (used in) financing activities2,708(970)
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash(3,981)35
Cash, Cash Equivalents and Restricted Cash at Beginning of Period4,278296
Cash, Cash Equivalents and Restricted Cash at End of Period$297$331

 

2019-11-07T06:00:00Z
CenterPoint Energy linemen head north to help Oncor restore power following tornadoes

Houston – Oct. 22, 2019 – This morning, more than 70 CenterPoint Energy linemen and support personnel departed for the Dallas area to assist Oncor with power restoration following tornadoes that struck the area Sunday night.  

Crews are expected to arrive in Dallas this afternoon, and once their working location is determined, they will work 16-hour days restoring power.

CenterPoint Energy is part of electric utility mutual assistance programs which provide access to thousands of linemen and tree trimmers from around the country to lend a hand during widespread power outage emergencies. CenterPoint Energy has been the beneficiary of this assistance several times. After Hurricane Harvey, the company received the assistance of thousands of workers from 20 states, who helped the company's crews restore power to customers within 10 days.

Over the years, CenterPoint Energy crews have restored power to hundreds of thousands of customers throughout the country who were left in the dark following hurricanes, ice storms, tornadoes and severe thunderstorms.

For updates, follow CenterPoint Energy on Facebook and Twitter.

 

2019-10-22T05:00:00Z
CenterPoint Energy announces completion of first propane-air peak shaving facility in Texas

Houston – Oct. 2, 2019 – CenterPoint Energy today announced the completion of the first propane-air peak shaving facility in Texas. The facility, known as the Bluebonnet Point Reserve, is located on the north side of Houston and will be used to supplement natural gas supply to CenterPoint Energy's natural gas distribution system, enhancing reliability for customers during periods of peak demand.

"CenterPoint Energy already provide­s reliable natural gas service, but we are always looking for the safest, most economical way to improve reliability even on the coldest winter days," said Bruce Coogler, vice president of Gas Supply for CenterPoint Energy. "This innovative project is a result of studies showing increased natural gas demand in Texas and our commitment to be Always There for our customers."

The peak shaving facility works by storing liquid propane in 60,000-gallon, underground steel tanks. When additional natural gas supply is needed to meet peak demand, liquid propane is vaporized, blended with compressed air and injected into CenterPoint Energy's natural gas distribution system at a ratio that is compatible with natural gas appliances, providing a seamless experience for CenterPoint Energy customers.

Propane-air peak shaving plants have been used by many utilities, including CenterPoint Energy, since the 1950s to supplement natural gas distribution systems during peak demand periods. CenterPoint Energy operates eight facilities in Minnesota and three propane-air plants in Indiana.

CenterPoint Energy's peak shaving facilities in Minnesota helped CenterPoint Energy customers stay warm during the January 2019 polar vortex, which caused a record-high demand for natural gas.

"The completion of this facility wouldn't have been possible without the support and commitment from state regulators, local government officials and our employees," said Trey Kuchar, vice president of Gas Engineering and System Integrity for CenterPoint Energy. "The facility reduces our dependency on third-party pipelines, while increasing our natural gas supply diversity. It is a win-win for our customers and company."

2019-10-03T05:00:00Z
CenterPoint Energy awards grants to communities for safety initiatives

Houston – Sept. 18, 2019 – This year, CenterPoint Energy's Community Partnership Grant Program awarded more than 80 grants totaling nearly $170,000 in Minnesota, Texas, Arkansas, Oklahoma, Mississippi and Louisiana to fund safety-related equipment and projects in their local communities.

"At CenterPoint Energy, our top priority is to encourage safety awareness and safe practices in our communities," said Diane Englet, senior director of Community Relations for CenterPoint Energy. "Through our Community Partnership Grant Program, we are able to support emergency responders' efforts to help keep our neighborhoods and communities safe."

Winners were determined based on the content of their applications. Participants were required to outline a safety-related problem, issue or need in the community and how a Community Partnership Grant would help create a sustainable solution. Leveraging the chosen organization's local funds, the CenterPoint Energy grant is a matching contribution and cannot be more than 50 percent of the cost of the project. The program awards grants of up to $2,500.

Through its Community Partnership Grant Program, CenterPoint Energy has funded more than 1,000 safety-related projects and contributed more than $2 million in donations to communities for safety initiatives since 2003.

To see what CenterPoint Energy is doing in the community, please visit CenterPointEnergy.com/community.

2019-09-18T05:00:00Z
CenterPoint Energy ranks first in Segment J.D. Power 2019 Customer Satisfaction Study

Houston – Sept. 16, 2019 – CenterPoint Energy ranked first in customer satisfaction in the Large South Residential Gas segment for the third year-in-a-row, according to the J.D. Power Gas Utility Residential Customer Satisfaction Study. The study measures residential customers' satisfaction with their natural gas utility in four U.S. geographic regions: East, Midwest, South, and West. The study also examines satisfaction across six factors: safety and reliability, billing and payment, corporate citizenship, price, communications and customer service.

"Our goal is to provide an exceptional customer experience through focused technology investments centered around customers' preferences for interaction and information," said Scott Doyle, executive vice president of Natural Gas Distribution for CenterPoint Energy. "Our ranking is also a result of our dedicated employees and their longstanding commitment to providing quality customer service."

In the 2019 study, the South Large Segment average was 765. CenterPoint Energy's overall customer satisfaction index score in the region was 773.

"Customers who recall receiving communications from their natural gas utility providers have a significantly higher satisfaction level," said Carl Lepper, Director of the Utility Practice at J.D. Power. "Communications is key, and our 2019 study demonstrated that CenterPoint Energy excels in this area."

The 2019 Gas Utility Residential Customer Satisfaction Study is based on responses from 57,879 online interviews conducted from September 2018 through July 2019 among residential customers of the 84 largest natural gas utility brands across the United States, which represent more than 62 million households. For more information about the Gas Utility Residential Customer Satisfaction Study, visit https://www.jdpower.com/business/resource/us-gas-utility-residential-customer-satisfaction-study.

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 53.8 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 $34 billion in assets, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.

J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, J.D. Power has offices serving North America, South America, Asia Pacific and Europe.

2019-09-16T05:00:00Z
CenterPoint Energy linemen head east to help with aftermath of Hurricane Dorian

Houston – Aug. 31, 2019 – This morning, more than 180 CenterPoint Energy linemen, vegetation management crews, contractors and support personnel departed for Florida to assist Florida Power & Light with anticipated power outages resulting from Hurricane Dorian.

Crews are expected to arrive at a safe pre-staged destination in Florida on Sunday and will wait for the hurricane to pass. Once their working location is determined, they will work 12- to 16-hour days restoring power. "Our thoughts are with those in the path of Hurricane Dorian," said Randy Pryor, vice president of Distribution Operations for CenterPoint Energy. "Once the storm has passed, our dedicated team will work to restore service as safely and quickly as possible."

CenterPoint Energy is also sending transmission crews to help Duke Energy with repairs. "Our transmission crews will help repair high-voltage power lines so electricity can be distributed to homes and businesses in the impacted areas," said Martin Narendorf, vice president of High Voltage Operations for CenterPoint Energy.

CenterPoint Energy is part of electric utility mutual assistance programs which provide access to thousands of linemen and tree trimmers from around the country to lend a hand during widespread power outage emergencies. CenterPoint Energy has been the beneficiary of this assistance several times. After Hurricane Harvey, the company received the assistance of thousands of workers from 20 states, who helped the company's crews restore power to customers within 10 days.

Over the years, CenterPoint Energy crews have restored power to hundreds of thousands of customers throughout the country who were left in the dark following hurricanes, ice storms, tornadoes and severe thunderstorms.

For updates, follow CenterPoint Energy on Facebook and Twitter.

###

2019-08-31T15:00:00Z
August 11 (8/11) serves as a reminder to always call 811 before digging

Houston – Aug. 9, 2019 – Sunday’s date of 8/11 is a reminder for everyone to call the national “Call Before You Dig” number – 811 – prior to any digging project. One free call to 811 before digging can prevent injuries, property damage, service disruption and possible costly fines for damaged infrastructure.

“On this day and throughout the year, we continue to remind homeowners and professional contractors alike to call 811 before digging to eliminate the risk of striking an underground utility line,” Ashley Babcock, director of Damage Prevention and Public Awareness for CenterPoint Energy. “The cause of many underground utility damages is not digging properly. The only physical way to know what’s below is to call and have the buried utilities in your area of excavation marked. Not only is it a free call and service, it is also the law.”

By calling 811, a homeowner connects to a One Call Center, which then notifies the appropriate utility companies of the homeowner’s intent to dig. Professional locators are sent to the requested digging site to mark the approximate locations of underground lines with flags and spray paint, enabling the homeowner to dig safely.

The depth of utility lines varies and there may be multiple utility lines in a common area. Whether it is a small project like planting a tree, or a larger one such as hiring a professional to install a lawn irrigation system, smart digging means calling 811 before each job. For more information, visit call811.com.

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 53.8 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 approximately $34 billion in assets, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.

2019-08-09T05:00:00Z
CenterPoint Energy reports second quarter 2019 earnings of $0.33 per diluted share; $0.35 earnings per diluted share on a guidance basis, excluding certain impacts associated with the Vectren merger

Houston - August 7, 2019 - CenterPoint Energy, Inc. (NYSE: CNP) today reported income available to common shareholders of $165 million, or $0.33 per diluted share, for the second quarter of 2019, compared with a loss of $75 million, or $0.17 per diluted share for the second quarter of 2018. On a guidance basis, second quarter 2019 earnings were $0.35 per diluted share, excluding certain impacts associated with the Vectren merger (the merger). Second quarter 2018 earnings, on a guidance basis and excluding certain impacts associated with the merger, were $0.30 per diluted share. "We remain confident in our anticipated 2019 full-year results driven by strong performance from our utility operations and a continued focus on cost management," said Scott M. Prochazka, president and chief executive officer of CenterPoint Energy. "Integration efforts continue to progress well, and we're pleased with the strong cash flows from our non-utility businesses. These businesses continue to be a source of cash for utility investment, which promotes growth for and strengthens our utility infrastructure allowing us to serve our customers."

Business Segments

Houston Electric - Transmission & Distribution

The Houston electric - transmission & distribution segment reported operating income of $169 million for the second quarter of 2019, consisting of $160 million from the regulated electric transmission and distribution utility operations (TDU) and $9 million related to securitization bonds. Operating income for the second quarter of 2018 was $181 million, consisting of $167 million from the TDU and $14 million related to securitization bonds. Operating income for the TDU benefited primarily from rate relief, customer growth and lower operation and maintenance expenses. These benefits were more than offset by lower usage primarily due to a return to more normal weather, lower equity return, primarily related to the annual true-up of transition charges, increased depreciation and amortization expense and lower revenues related to the Tax Cuts and Jobs Act (TCJA).

Indiana Electric – Integrated

The Indiana electric – integrated segment reported operating income of $25 million for the second quarter of 2019. These results are not comparable to the second quarter of 2018 as this segment was acquired in the merger.

Natural Gas Distribution

The natural gas distribution segment reported operating income of $47 million for the second quarter of 2019, compared with $7 million for the second quarter of 2018. Operating income increased $19 million due to the gas utilities acquired in the merger. The remaining increase is primarily due to the timing of a decoupling mechanism in Minnesota, rate relief, lower operation and maintenance expenses and customer growth. These increases were partially offset by increased depreciation and amortization expense and lower revenues related to the TCJA.

Energy Services

The energy services segment reported operating income of $29 million for the second quarter of 2019, which included a mark-to-market gain of $30 million, compared with operating income of $15 million for the second quarter of 2018, which included a mark-to-market gain of $8 million. Excluding mark-to-market adjustments, the operating loss was $1 million for the second quarter of 2019 compared with operating income of $7 million for the second quarter of 2018. Operating income, excluding mark-to-market adjustments, decreased primarily due to a reduction in margins resulting from the impact of less price volatility on natural gas storage activity and increased operation and maintenance expenses.

Infrastructure Services

The infrastructure services segment reported operating income of $24 million for the second quarter of 2019. Operating income includes $7 million of merger-related expenses. These results are not comparable to the second quarter of 2018 as this segment was acquired in the merger.

Midstream Investments

The midstream investments segment reported $74 million of equity income for the second quarter of 2019, compared with $58 million in the second quarter of 2018.

Corporate and Other

The corporate and other segment reported an operating loss of $7 million for the second quarter of 2019, compared with an operating loss of $16 million for the second quarter of 2018. The operating loss for the second quarter of 2019 included $32 million of merger-related expenses. The operating loss for the second quarter of 2018 included $27 million of merger-related expenses.

Earnings Outlook
 

  • 2019 guidance basis EPS range of $1.60 - $1.70, excluding certain impacts associated with the merger:
  • Integration and transaction-related fees and expenses, including severance and other costs to achieve the anticipated cost savings as a result of the merger
  • Merger financing impacts in January, prior to the completion of the merger, due to the issuance of debt and equity securities to fund the merger that resulted in higher net interest expense, preferred stock dividend requirements and higher common stock share count
  • 2020 guidance range to be provided on fourth quarter 2019 earnings call following normal annual financial planning process
  • Fundamentals remain strong and company continues to target 5 - 7% compound annual guidance basis EPS growth for 2018-2023, using $1.60 as the starting EPS

The 2019 guidance range considers operations performance to date and assumptions for certain significant variables that may impact earnings, such as customer growth (approximately 2% for electric operations and 1% for natural gas distribution) and usage including normal weather, throughput, commodity prices, recovery of capital invested through rate cases and other rate filings, effective tax rates, financing activities and related interest rates, and regulatory and judicial proceedings as well as the volume of work contracted in our infrastructure services business.  The range also considers anticipated cost savings as a result of the merger.  The range assumes the lower end of Enable Midstream Partners, LP's (Enable) 2019 guidance range for net income attributable to common units, provided on Enable's 2nd quarter earnings call on August 6, 2019.

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, including those from Enable, earnings or losses from the change in the value of ZENS and related securities, or the timing effects of mark-to-market accounting in the company's Energy Services business, which, along with the certain excluded impacts associated with the merger, 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 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 as they are highly variable and difficult to predict due to various factors outside of management's control.

 

  Quarter Ended ​ ​ ​ ​ ​
  June 30, 2019June 30, 2018
  Dollars
in millions
Diluted EPS Dollars
in millions
Diluted EPS
Consolidated income (loss) available to common shareholders and diluted EPS$165
$0.33
$(75)
$(0.17)
Timing effects impacting CES (1):        
Mark-to-market (gains) losses (net of taxes of $7 and $2) (2)(23)
(0.05)
(6)
(0.01)
ZENS-related mark-to-market (gains) losses:        
Marketable securities (net of taxes of $14 and $4) (2)(3)(50)(0.10)(18)(0.04)
Indexed debt securities (net of taxes of $15 and $54) (2)(4)530.112000.46
Consolidated on a guidance basis$145$0.29$101$0.24
Impacts associated with the Vectren merger:        
Impacts associated with the Vectren merger (net of taxes of $10 and $8) (2)320.06260.06
Consolidated on a guidance basis, excluding impacts associated with the Vectren merger$177$0.35$127$0.30

 
(1)   Energy Services segment

(2)   Taxes are computed based on the impact removing such item would have on tax expense.

(3)   As of and after June 14, 2018, comprised of common stock of AT&T Inc. and Charter Communications, Inc. Prior to June 14, 2018, comprised of common stock of Time Warner, Inc. and Charter Communications, Inc.

(4)   2018 results include amount associated with the acquisition of Time Warner Inc. by AT&T Inc.

 

Filing of Form 10-Q for CenterPoint Energy, Inc.

Today, CenterPoint Energy, Inc. filed with the Securities and Exchange Commission (SEC) its Quarterly Report on Form 10-Q for the quarter ended June 30, 2019. 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 Wednesday, August 7, 2019, 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.

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 53.8 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 approximately $34 billion in assets, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit 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 Enable 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 goodwill, long-lived asset or other than temporary impairment charges by or related to Enable; (F) changes in tax status; and (G) access to debt and equity capital; (2) CenterPoint Energy's expected benefits of the merger with Vectren Corporation (Vectren) and integration, including the outcome of shareholder litigation filed against Vectren that could reduce anticipated benefits of the merger, as well as the ability to successfully integrate the Vectren businesses and to realize anticipated benefits and commercial opportunities; (3) industrial, commercial and residential growth in CenterPoint Energy's service territories and changes in market demand, including the demand for CenterPoint Energy's non-utility products and services and effects of energy efficiency measures and demographic patterns; (4) the outcome of the pending Houston Electric rate case; (5) timely and appropriate rate actions that allow recovery of costs and a reasonable return on investment; (6) future economic conditions in regional and national markets and their effect on sales, prices and costs; (7) weather variations and other natural phenomena, including the impact of severe weather events on operations and capital; (8) 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; (9) tax legislation, including the effects of the comprehensive tax reform legislation informally referred to as the Tax Cuts and Jobs Act (which includes any potential changes to interest deductibility) and uncertainties involving state commissions' and local municipalities' regulatory requirements and determinations regarding the treatment of excess deferred income taxes and CenterPoint Energy's rates; (10) CenterPoint Energy's ability to mitigate weather impacts through normalization or rate mechanisms, and the effectiveness of such mechanisms; (11) the timing and extent of changes in commodity prices, particularly natural gas and coal, and the effects of geographic and seasonal commodity price differentials; (12) the ability of CenterPoint Energy's and CERC's non-utility business operating in the Energy Services reportable segment to effectively optimize opportunities related to natural gas price volatility and storage activities, including weather-related impacts; (13) actions by credit rating agencies, including any potential downgrades to credit ratings; (14) changes in interest rates and their impact on CenterPoint Energy's costs of borrowing and the valuation of its pension benefit obligation; (15) problems with regulatory approval, legislative actions, 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; (16) the availability and prices of raw materials and services and changes in labor for current and future construction projects; (17) local, state and federal legislative and regulatory actions or developments relating to the environment, including those related to global climate change, air emissions, carbon, waste water discharges and the handling and disposal of coal combustion residuals (CCR) that could impact the continued operation, and/or cost recovery of generation plant costs and related assets; (18) the impact of unplanned facility outages or other closures; (19) 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, ice, earthquakes, explosions, leaks, floods, droughts, hurricanes, tornadoes, pandemic health events or other occurrences; (20) CenterPoint Energy's ability to invest planned capital and the timely recovery of CenterPoint Energy's investments, including those related to the generation transition plan; (21) CenterPoint Energy's ability to successfully construct and operate electric generating facilities, including complying with applicable environmental standards and the implementation of a well-balanced energy and resource mix, as appropriate; (22) CenterPoint Energy's ability to control operation and maintenance costs; (23) the sufficiency of CenterPoint Energy's insurance coverage, including availability, cost, coverage and terms and ability to recover claims; (24) the investment performance of CenterPoint Energy's pension and postretirement benefit plans; (25) 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; (26) changes in rates of inflation; (27) inability of various counterparties to meet their obligations to CenterPoint Energy; (28) non-payment for CenterPoint Energy's services due to financial distress of its customers; (29) the extent and effectiveness of CenterPoint Energy's and Enable's risk management and hedging activities, including but not limited to, financial and weather hedges and commodity risk management activities; (30) timely and appropriate regulatory actions, which include actions allowing securitization, for any future hurricanes or natural disasters or other recovery of costs, including costs associated with Hurricane Harvey; (31) CenterPoint Energy's or Enable's potential business strategies and strategic initiatives, including restructurings, joint ventures and acquisitions or dispositions of assets or businesses, which CenterPoint Energy and Enable cannot assure will be completed or will have the anticipated benefits to CenterPoint Energy or Enable; (32) the performance of projects undertaken by CenterPoint Energy's non-utility businesses and the success of efforts to realize value from, invest in and develop new opportunities and other factors affecting those non-utility businesses, including, but not limited to, the level of success in bidding contracts, fluctuations in volume and mix of contracted work, mix of projects received under blanket contracts, failure to properly estimate cost to construct projects or unanticipated cost increases in completion of the contracted work, changes in energy prices that affect demand for construction services and projects and cancellation and/or reductions in the scope of projects by customers and obligations related to warranties and guarantees; (33) acquisition and merger activities involving CenterPoint Energy or its competitors, including the ability to successfully complete merger, acquisition and divestiture plans; (34) CenterPoint Energy's or Enable's ability to recruit, effectively transition and retain management and key employees and maintain good labor relations; (35) the outcome of litigation; (36) the ability of retail electric providers (REPs), including REP affiliates of NRG Energy, Inc. and Vistra Energy Corp., formerly known as TCEH Corp., to satisfy their obligations to CenterPoint Energy and its subsidiaries; (37) changes in technology, particularly with respect to efficient battery storage or the emergence or growth of new, developing or alternative sources of generation; (38) the timing and outcome of any audits, disputes and other proceedings related to taxes; (39) the effective tax rates; (40) the transition to a replacement for the LIBOR benchmark interest rate; (41) the effect of changes in and application of accounting standards and pronouncements; and (42) other factors discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2018, CenterPoint Energy's Quarterly Report on Form 10-Q for the quarters ended March 31, 2019 and June 30, 2019 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

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 income available to common shareholders and diluted earnings per share, CenterPoint Energy also provides guidance based on adjusted 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 income and adjusted diluted earnings per share calculation excludes from income available to common shareholders 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's guidance for 2019 also does not reflect certain impacts associated with the Vectren merger, which are integration and transaction-related fees and expenses, including severance and other costs to achieve anticipated cost savings as a result of the merger and merger financing impacts in January, prior to the completion of the merger due to the issuance of debt and equity securities to fund the merger that resulted in higher net interest expense, preferred stock dividend requirements and higher common stock share count. CenterPoint Energy is unable to present a quantitative reconciliation of forward-looking adjusted 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 as they are highly variable and difficult to predict due to various factors outside of management's control. These excluded items, along with the excluded impacts associated with the merger, could have a material impact on GAAP reported results for the applicable guidance period.

Management evaluates the company's financial performance in part based on adjusted income and adjusted diluted 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 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 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, 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.


2019-08-07T05:00:00Z
Natural gas service restoration in Alice, Texas substantially complete

Houston – Aug. 1, 2019 – Following a natural gas outage affecting more than 4,100 customers in Alice, Texas, CenterPoint Energy has restored service to all customers who have provided the company access to perform safety checks and relight pilots.

A small number of customers still remain without service because CenterPoint Energy employees were not able to access their home or business. The relighting process requires CenterPoint Energy employees to have access to each location to light pilots and check to make sure it is safe to resume service. If an adult over age 18 is not at the service address when a technician arrives, the company will leave a blue door hanger with instructions.

"A customer needs to call us only if there is a blue door hanger at their home or business indicating that we have already been there to attempt to restore service," said Nelda Juarez, district director for CenterPoint Energy. "Please call 888-551-4011, the number on the door tag left by our service personnel.

"We greatly appreciate our customers' cooperation, patience and expressions of thanks as our employees worked as quickly as we could to safely restore natural gas service," said Juarez.

Customers have been without natural gas service due to a damaged pipeline that serves this town.

 

2019-08-01T05:00:00Z
CenterPoint Energy begins relight process for affected customers in Alice, Texas

Houston – July 30, 2019 - CenterPoint Energy has begun the relighting process after experiencing a natural gas outage in Alice, Texas that affected more than 4,000 customers. The outage is a result of a damaged pipeline that serves this town.

"Pipeline repairs have been made and we've completed the process of turning off each customer's natural gas meter. Our service technicians performed a series of safety checks to ensure there is no risk involved in restoring gas service," said Nelda Juarez, district director for CenterPoint Energy. "As we work to restore service to impacted customers, safety continues to be our number-one priority.

"Qualified service technicians will come to your home and/or business today to turn on your gas meters. Technicians will work until 10 p.m. tonight and resume the relight process at 8 a.m. tomorrow; we expect most service to be restored by Thursday. We sincerely apologize for this inconvenience and appreciate your patience as we work to restore service to your community," added Juarez.

At this time, no action is required on the part of the customer. If an adult over age 18 is not at the service address when a technician arrives, the company will leave a door hanger with instructions. All CenterPoint Energy technicians and contractors wear badges and will gladly show them to you upon request before entering your home or business.

  • Hospital and nursing home have been restored
  • Customers need to be home so technicians can restore service
  • Company expects most customers to be restored by Thursday

For updates, follow CenterPoint Energy on Twitter: @CNPAlerts and Facebook: Facebook.com/CenterPointEnergy.

2019-07-30T05:00:00Z

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