Group 1 - CenterPoint Energy (NYSE: CNP) has seen a strong performance over the past year, with shares increasing by 36% [1] - The utility sector is benefiting from a favorable environment, becoming an indirect way to capitalize on the AI trend, particularly due to the high electricity demand from data centers [1]

Houston, TX, Sept. 08, 2025 (GLOBE NEWSWIRE) -- Date: September 29, 2025 Time: 3:30 p.m. Central time or 4:30 p.m. Eastern time Listen via internet: http://investors.centerpointenergy.com/ Click "Investors", and click the link "CenterPoint Energy, Inc. 2025 Investor Update" CenterPoint Energy, Inc. (NYSE: CNP) is a multi-state electric and natural gas delivery company serving approximately 7 million metered customers across Indiana, Minnesota, Ohio, and Texas. The company is headquartered in Houst ...

Core Viewpoint - CenterPoint Energy is actively monitoring a tropical disturbance (Invest 98L) that may impact the Greater Houston area with increased rain chances by the end of the week [1][3]. Group 1: Storm Preparedness - CenterPoint has a summer storm readiness plan in place and is prepared to take action if the disturbance strengthens or changes its projected path [2][3]. - The company has executed a series of resiliency improvements in the Greater Houston area since Hurricane Beryl, including the installation of over 32,000 stronger poles and the undergrounding of more than 400 miles of power lines [4][5]. Group 2: Communication and Customer Engagement - CenterPoint encourages customers to sign up for the Power Alert Service to receive updates on outages and restoration efforts [8]. - The company is conducting outreach to critical care customers and providing safety information through various channels to keep the public informed [5][9]. Group 3: Weather Monitoring - More than 100 weather monitoring stations have been installed across the Greater Houston area to enhance situational awareness and storm preparation [6]. - These stations measure various weather parameters every 2-5 minutes, including humidity, wind speed, temperature, and rainfall [6]. Group 4: Company Overview - CenterPoint Energy, Inc. serves approximately 7 million metered customers across multiple states and has approximately $44 billion in assets as of June 30, 2025 [11]. - The company has been in operation for over 150 years and is headquartered in Houston, Texas [11].

Industry Overview - The Utility – Electric Power industry is transitioning to cleaner fuel sources and reducing carbon emissions, supported by government policies promoting sustainable power generation [1] - Utilities are investing in grid upgrades and improving transmission and distribution infrastructure to enhance resilience against severe weather events [1][3] - The industry is experiencing stable demand across economic cycles, with increased electricity consumption during extreme weather [3] Trends Impacting the Industry - Interest rates have declined from 5.25-5.50% to 4.25-4.50%, benefiting capital-intensive utilities by lowering borrowing costs for infrastructure investments [4] - Electricity production is projected to increase by 2.2% in 2025 and 2.3% in 2026, reaching 4,340 billion kilowatt-hours, driven by demand from commercial and industrial sectors [5] - The share of electricity generation from renewable sources is expected to rise from 23% in 2024 to 26% in 2026, aided by the Inflation Reduction Act [6] Company Highlights - CenterPoint Energy Inc. plans to invest $53 billion over the next 10 years to expand operations and meet rising electricity demand [19] - Fortis Inc. expects to invest $26 billion from 2025 to 2029, focusing on strengthening regulated electric and gas operations [23] - NiSource Inc. projects an investment of $19.4 billion for 2025-2029 to enhance its existing operations [27] Financial Performance and Valuation - The Utility Electric Power industry has gained 16.9% over the past 12 months, outperforming its sector's 14.2% increase but lagging behind the S&P 500's 22.7% gain [10] - The industry is currently trading at an EV/EBITDA of 14.37X, lower than the S&P 500's 17.02X and the Utility sector's 15.75X [13] - Long-term earnings growth estimates for CenterPoint Energy, Fortis, and NiSource are 7.8%, 5.13%, and 7.88% respectively, with respective dividend yields of 2.3%, 3.53%, and 2.58% [20][24][28]

Core Points - CenterPoint Energy is accelerating hiring efforts to recruit 200 new lineworkers by the end of 2025 and nearly 800 by 2030 to support local energy demands and infrastructure investments [1][3] - The company is investing over $53 billion in local energy projects as part of its 10-year capital expenditure plan, which aims to enhance the resiliency of the coastal grid [1][2] - The local demand for electric workers in the Greater Houston area is projected to exceed 11,000 workers over the next five years, with energy demand expected to increase by nearly 50% by 2031 [3] Workforce Development Initiatives - CenterPoint is launching the Energy Expressway™ program, a free multi-week training initiative designed to equip participants with technical and customer service skills for careers in the energy industry [4] - The inaugural class of the Energy Expressway™ program will begin in October, with 35 applicants selected to support apprentice and journey lineworkers [4] - The workforce expansion is critical for implementing the 2026-2028 Systemwide Resiliency Plan, which aims to reduce outages for customers by nearly 1 billion minutes by 2029 [3] Company Overview - CenterPoint Energy, Inc. serves approximately 7 million metered customers across multiple states, including Texas, and has approximately $44 billion in assets as of June 30, 2025 [6] - The company has a long history of over 150 years in providing electric and natural gas services and employs around 8,300 individuals [6]

Core Insights - CenterPoint Energy, Inc. reported second-quarter 2025 adjusted earnings of 29 cents per share, missing the Zacks Consensus Estimate of 34 cents by 14.7% and declining 19.4% from the previous year's figure of 36 cents [1][9] - The decline in earnings was attributed to unfavorable timing of recoveries from interim capital mechanisms, increased financing costs, and higher operating and maintenance expenses [1][9] Revenue Performance - CenterPoint Energy generated revenues of $1.94 billion, slightly exceeding the Zacks Consensus Estimate and representing a 2% increase from the year-ago quarter's revenue of $1.91 billion [3] Operational Results - Total expenses for the second quarter increased by 6.2% year over year to $1.53 billion [4] - The company reported an operating income of $417 million, down from $467 million in the prior year [4] - Interest expenses and other finance charges totaled $191 million, a decrease of 9.9% from $212 million recorded in the previous year [4] Financial Condition - As of June 30, 2025, CenterPoint Energy had cash and cash equivalents of $93 million, up from $24 million as of December 31, 2024 [5] - The total long-term debt was $20.56 billion, slightly increasing from $20.40 billion as of December 31, 2024 [5] - Net cash flow from operating activities was $0.97 billion, down from $1.11 billion in the year-ago period [5] Capital Expenditure - Total capital expenditure reached $2.17 billion as of June 30, 2025, compared to $1.66 billion in the prior year [6] 2025 Guidance - CenterPoint Energy reaffirmed its 2025 earnings guidance, expecting adjusted earnings per share in the range of $1.74-$1.76, aligning with the Zacks Consensus Estimate of $1.75 per share [7][9]

Financial Data and Key Metrics Changes - The company reported diluted earnings per share (EPS) of $0.30 on a GAAP basis and $0.29 on a non-GAAP basis for Q2 2025, compared to $0.36 in Q2 2024 [25][4][7] - The non-GAAP EPS results for Q2 2025 reflect a 19% decrease year-over-year, primarily due to the timing of capital recovery mechanisms [25][26] - The company reaffirmed its 2025 non-GAAP EPS guidance range of $1.74 to $1.76, indicating an 8% growth at the midpoint from the 2024 non-GAAP EPS of $1.62 [9][42] Business Line Data and Key Metrics Changes - The Houston Electric Service territory is experiencing strong load growth, with a forecasted peak load increase of 10 gigawatts by 2031, representing nearly a 50% increase in peak demand [10][11] - Year-over-year sales trends show an 8% increase in weather-normalized commercial and industrial sales for the first half of 2025 compared to the same period in 2024 [11] Market Data and Key Metrics Changes - The load interconnection queue has grown by 6 gigawatts, or more than 12%, since the first quarter call, driven by diverse economic activities including data centers and advanced manufacturing [10][11] - The company anticipates a significant increase in capital expenditures, with a total capital investment plan now at $53 billion through 2030, reflecting a $5.5 billion increase this year [21][35] Company Strategy and Development Direction - The company plans to focus more on Texas jurisdictions, with the proposed sale of its Ohio gas business aimed at reallocating nearly $1 billion of capital expenditures to support Texas operations [13][14] - The company is committed to enhancing its electric transmission system to accommodate forecasted load growth and has identified approximately 200 projects to execute over the next ten years [18][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth prospects, citing strong economic drivers in the Houston Electric Service territory and a favorable regulatory environment [10][12] - The company expects to improve its operating cash flow, which will help fund capital investments without the need for additional common equity [41][42] Other Important Information - The company has made significant progress in regulatory filings, including a proposed settlement in its Ohio gas rate case and a distribution system resiliency investment plan totaling $3.2 billion over the next three years [30][29] - The company is exploring efficient financing options to support its growth, including the proposed sale of its Ohio gas LDC and forward sales of common equity [37][39] Q&A Session Summary Question: Timeline and expectations for the Barrow cost recovery proceeding - Management is on track with mediated sessions and hearings scheduled for next Thursday, aiming for a potential settlement framework [51][52] Question: Details on the six gigawatts load growth - Approximately two-thirds of the increase relates to data center activity, with demand expected for interconnections in late 2026 to 2028 [53][54] Question: Duration of the drag from mobile generation assets - The drag is expected to last until late 2026 or early 2027, after which these assets will become a tailwind for the company [56] Question: Capital investment plan and equity funding - The company anticipates an upward bias in capital expenditures without the need for additional common equity, with a focus on long-term growth [62][66] Question: Update on the gas LDC sale process - The company aims to announce progress on the sale by the end of the year, with a closing expected about a year later [92][93] Question: Opportunities in data centers in Indiana - The company continues to have productive discussions regarding new data center demand in Indiana, leveraging its excess capacity [94][95]

Financial Data and Key Metrics Changes - The company reported diluted earnings per share (EPS) of $0.30 on a GAAP basis and $0.29 on a non-GAAP basis for Q2 2025, compared to $0.36 in Q2 2024, indicating a decline in non-GAAP EPS year-over-year [23][6][41] - The company reaffirmed its 2025 non-GAAP EPS guidance range of $1.74 to $1.76, representing an 8% growth at the midpoint from the 2024 non-GAAP EPS of $1.62 [7][41] - The company is approximately 46% of the way to the midpoint of its full-year earnings guidance range for 2025 [6] Business Line Data and Key Metrics Changes - The Houston Electric Service territory is experiencing strong load growth, with a forecasted peak load increase of 10 gigawatts by 2031, representing nearly a 50% increase in peak demand [8][10] - Year-over-year sales trends show an 8% increase in weather-normalized commercial and industrial sales for the first half of 2025 compared to the same period in 2024 [10] Market Data and Key Metrics Changes - The load interconnection queue has grown by 6 gigawatts, or more than 12%, since the first quarter call, driven by diverse economic activities including data centers and advanced manufacturing [9][10] - The company anticipates that the sale of its Ohio gas business will allow for the reprioritization of nearly $1 billion in capital expenditures to support Texas jurisdictions [13] Company Strategy and Development Direction - The company announced a $500 million increase to its capital investment plan for 2025, bringing the total capital investment plan to $5.5 billion for the year, which will be funded without issuing additional common equity [6][15] - The strategic focus is shifting more towards Texas, with the expectation that Texas will constitute over 70% of the company's portfolio after the sale of the Ohio gas business [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth prospects, citing strong economic drivers in the Houston Electric Service territory and the need for significant investments in the electric transmission system [11][20] - The company expects to see a 5% improvement in operating cash flow beginning next year, which will help fund capital investments [39] Other Important Information - The company has identified approximately 200 projects to execute over the next ten years to support the anticipated load growth [16] - The proposed settlement in the Ohio gas rate case includes a revenue requirement increase of $59.6 million [28] Q&A Session Summary Question: Timeline and expectations for the Barrow cost recovery proceeding - Management is on track and had mediated sessions to seek a potential settlement framework, with hearings scheduled for next Thursday [50] Question: Details on the six gigawatts load growth - Approximately two-thirds of the increase relates to data center activity, with demand expected for interconnections in late 2026 to 2028 [52] Question: Duration of drag from mobile generation assets - The drag in earnings is expected to last until late 2026 or early 2027, after which these assets will become a tailwind for the company [55] Question: Capital investment plan and equity funding - Management indicated an upward bias towards capital expenditures through the remainder of the decade, with potential for funding without additional common equity [61][65] Question: Update on the Ohio gas LDC sale process - The company aims to announce progress towards the end of the calendar year, with a closing expected about a year later [91] Question: Impact of SB six on interconnection interest - There has been no change in the velocity of interconnection requests despite questions around cost allocation [74] Question: Houston revitalization project alignment with city efforts - The project involves burying the interstate system around downtown Houston, allowing for significant redevelopment opportunities [76] Question: Magnitude of future capital increases without equity - Management indicated flexibility in capital spending, with potential for increases beyond the $500 million announced [86]

CenterPoint Energy (CNP) came out with quarterly earnings of $0.29 per share, missing the Zacks Consensus Estimate of $0.34 per share. This compares to earnings of $0.36 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -14.71%. A quarter ago, it was expected that this energy delivery company would post earnings of $0.55 per share when it actually produced earnings of $0.53, delivering a surprise of -3.64%.Over the last four qua ...

Cautionary Statement and Other Disclaimer This presentation and the oral statements made in connection herewith 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 presentation and the oral statements made in connection herewith are forward-looking statements made in good faith by CenterPoint Energy, Inc. ("CenterPoint Energy" or th ...