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CenterPoint Energy(CNP) - 2022 Q3 - Earnings Call Transcript
2022-11-01 18:02
Financial Data and Key Metrics Changes - The company reported a non-GAAP EPS of $0.32 for Q3 2022, up from $0.25 in the same period of 2021, reflecting a growth driven by rate recovery and favorable weather conditions [56][57] - Full year 2022 non-GAAP EPS guidance is reiterated at $1.37 to $1.39, representing a 9% growth rate at the midpoint compared to 2021 [51][56] - For 2023, the company initiated non-GAAP EPS guidance of $1.48 to $1.50, indicating an additional 8% growth over the previously raised 2022 guidance [15][61] Business Line Data and Key Metrics Changes - The company has achieved industry-leading non-GAAP EPS growth for 10 consecutive quarters, with a commitment to continue this trend [11][51] - Approximately 95% of earnings are now derived from regulated utility operations following the divestment of midstream investments [12] Market Data and Key Metrics Changes - The Houston area is experiencing over 2% annual population growth, contributing to the company's growth prospects [21] - The Port of Houston is the largest U.S. port by waterborne tonnage, further enhancing the economic environment in which the company operates [23] Company Strategy and Development Direction - The company is focused on becoming a pure-play regulated utility, with a strategic plan to invest $40 billion over 10 years, now increased by an additional $2.3 billion [17][63] - Customer-driven investments are aimed at enhancing system resiliency, reliability, and facilitating EV adoption [19][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving industry-leading growth despite potential headwinds, emphasizing a strong track record of execution [53][88] - The company is taking a prudent approach to capital investments, ensuring that they can be efficiently executed and funded without reliance on external equity [46][73] Other Important Information - The company has identified $3 billion in additional capital opportunities for future investments, which will be evaluated for inclusion in the capital plan [35][52] - The company expects to reduce O&M costs by 1% to 2% annually over the next 10 years, contributing to overall affordability for customers [45][46] Q&A Session Summary Question: Insights on CFO search - The company is casting a wide net for the CFO position, looking for strong candidates across the public sphere in the U.S. [90] Question: Structure and timing of the $3 billion incremental opportunities - The management emphasized their track record in identifying and executing capital opportunities efficiently, indicating that the $3 billion will be integrated into the plan as confidence in execution grows [91][92] Question: Clarification on capital expenditures and earnings power - Management confirmed that they would not spend on capital unless they are confident it will be recovered, highlighting strong capital recovery mechanisms [99][100] Question: Strategy on asset sales - The strategy remains unchanged, focusing on efficient funding sources rather than asset sales, which are not currently needed [105][106] Question: Timing for updating long-term growth rates - Management indicated that updates on long-term growth rates will be provided after resolving upcoming rate cases, with confidence that capital investments will enhance earnings power [111][112]
CenterPoint Energy(CNP) - 2022 Q3 - Earnings Call Presentation
2022-11-01 17:30
Establishing a path towards PREMIUM Through Sustainable Growth… THIRD QUARTER 2022 INVESTOR UPDATE November 1, 2022 Cautionary Statement and Other Disclaimers 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 connecti ...
CenterPoint Energy(CNP) - 2022 Q3 - Quarterly Report
2022-10-31 16:00
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 __________________ FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM __________________ TO __________________ Commission file number 1-31447 CenterPoint Energy, Inc. (Exact name of registrant as specified ...
CenterPoint Energy(CNP) - 2022 Q2 - Earnings Call Presentation
2022-08-02 18:48
Establishing a path towards PREMIUM T h r o u g h S u s t a i n a b l e G r o w t h … SECOND QUARTER 2022 INVESTOR UPDATE AUGUST 2, 2022 Cautionary Statement and Other Disclaimers 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 statem ...
CenterPoint Energy(CNP) - 2022 Q2 - Earnings Call Transcript
2022-08-02 18:23
Financial Data and Key Metrics Changes - The company raised its non-GAAP EPS guidance for 2022 to $1.37 to $1.39, reflecting a 9% growth compared to the previous year's non-GAAP EPS of $1.27 [14][23][38] - The GAAP EPS for Q2 2022 was reported at $0.28, while the non-GAAP EPS was $0.31, up from $0.28 in Q2 2021 [41][42] - The company has achieved nine consecutive quarters of operational execution under the current management team [14][67] Business Line Data and Key Metrics Changes - The Houston Electric segment showed strong performance, contributing to the increase in earnings guidance [14][23] - The company reported a favorable variance in usage driven by hot weather, contributing an additional $0.03 to EPS [42] - Growth in rate recovery added another $0.02 to EPS, primarily from organic customer growth and peak cost rate recovery in the Houston Electric territory [42] Market Data and Key Metrics Changes - The Houston area experienced over 6% year-over-year job growth, adding more than 191,000 new jobs, which supports the company's growth outlook [23] - The company noted that its transmission and distribution system covers only 2.5% of Texas's geographic footprint but handles about 25% of the total ERCOT summer peak electric load [12] Company Strategy and Development Direction - The company aims to grow non-GAAP EPS by 8% annually for 2023 and 2024, and at a mid- to high-end of 6% to 8% growth through 2030 [16][38] - A five-year capital investment plan of $19.3 billion has been established, with a ten-year plan exceeding $40 billion to enhance safety, resiliency, and growth [28][48] - The company is focused on customer-driven capital opportunities, including the Resilient Now initiative with the City of Houston [19][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued earnings growth, citing customer-driven tailwinds such as organic growth and favorable weather conditions [71] - The company is well-positioned to manage rising interest rates and pension expenses, with plans to pay down floating rate debt [73][74] - Management highlighted the importance of maintaining affordable rates for customers while pursuing growth opportunities [40][31] Other Important Information - The company completed the integration of Vectren, resulting in a more efficient debt structure and a goal to reduce parent-level debt to approximately 20% [20][63] - The Indiana generation transition plan is on track, with recent approvals for a natural gas peaking facility and additional solar generation projects [21][51] Q&A Session Summary Question: Guidance raise implications for future years - Management indicated confidence in continued earnings growth, driven by customer demand and organic growth [71][72] Question: Corporate minimum tax impact - The minimum tax is expected to be a modest headwind, but the company is well-positioned to manage it efficiently [84][85] Question: Market conditions for potential gas LDC sales - The company continues to receive significant interest in gas LDC sales, with a higher terminal value for such assets [86][88] Question: Load growth and industrial demand - Industrial load growth remains strong, with no indications of slowdown, supported by ongoing investments in the petrochemical sector [113] Question: Management of summer heat waves - The transmission and distribution system performed well during peak demand, with a focus on enhancing resiliency [104][105]
CenterPoint Energy(CNP) - 2022 Q2 - Quarterly Report
2022-08-01 16:00
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 __________________ FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM __________________ TO __________________ Commission file number 1-31447 CenterPoint Energy, Inc. (Exact name of registrant as specified in i ...
CenterPoint Energy(CNP) - 2022 Q1 - Earnings Call Transcript
2022-05-03 15:21
Financial Data and Key Metrics Changes - The company reported a GAAP EPS of $0.82 for Q1 2022, which includes a net gain of $0.30 from the sale of Arkansas and Oklahoma LDCs and $0.05 from midstream-related earnings [26][27] - Non-GAAP EPS for Q1 2022 was $0.47, flat compared to Q1 2021, with a $0.03 reduction due to the divestiture of Arkansas and Oklahoma operations [26][27] - The company reiterated its non-GAAP EPS guidance for 2022 at $1.36 to $1.38, reflecting an 8% growth over the previous year [29][30] Business Line Data and Key Metrics Changes - The divestiture of gas LDCs removed $0.03 from earnings in Q1 2022 compared to Q1 2021, with a full-year impact normalizing to about $0.02 [7][27] - The company experienced organic growth with 11 consecutive years of 2% or greater customer growth in the Houston Electric area [8] Market Data and Key Metrics Changes - The company is focused on capital investments of $19.3 billion over the next five years, an increase from the previous $19.2 billion [11][34] - The capital investment plan is expected to support a projected rate base growth of approximately 9% CAGR over the 10-year plan [11][23] Company Strategy and Development Direction - The company aims to maintain affordable bills for customers while achieving a 1% to 2% reduction in O&M expenses annually over the next decade [10][17] - The focus remains on traditional utility investments without major projects or technology bets, ensuring minimal regulatory lag [11][22] - The company plans to fund its growth without external equity issuances, utilizing proceeds from divestitures to support capital investments [6][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting customer needs through organic growth and system upgrades, anticipating incremental capital investments beyond the $40 billion plan [22][23] - The company is actively addressing inflation and supply chain challenges while maintaining its commitment to O&M reduction targets [57][73] Other Important Information - The company has initiated a green hydrogen production facility, marking a step towards its long-term carbon reduction goals [37] - Regulatory mechanisms are in place to recover approximately 80% of the 10-year capital plan, allowing for timely recovery of investments [34][39] Q&A Session Summary Question: Discussion on industrial load and capital needs - Management indicated that current cash flow is sufficient to meet capital needs without requiring external equity or further divestitures at this time [47][48] Question: Updates on capital plans and execution - Management confirmed that the focus will be on executing the current capital plan while providing updates on industrial demand and resiliency projects in future calls [54][68] Question: Challenges in meeting O&M targets - Management acknowledged the challenges posed by the tight labor market and supply chain issues but remains committed to achieving O&M reduction targets [56][57] Question: Impact of inflation on capital expenditures - Management clarified that recent capital increases are primarily due to project pull-forwards rather than inflation, although inflation is being monitored as a potential risk [72][73] Question: Regulatory feedback on solar projects and energy inflation - Management noted that while there are cost increases, the transition from coal to cleaner energy sources remains a more cost-effective solution for customers [65][66]
CenterPoint Energy(CNP) - 2022 Q1 - Earnings Call Presentation
2022-05-03 12:49
Establishing a path towards PREMIUM T h r o u g h S u s t a i n a b l e G r o w t h … | --- | --- | |-----------------------------|-------| | | | | INVESTOR UPDATE May 3, 2022 | | Cautionary Statement and Other Disclaimers 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 includ ...
CenterPoint Energy(CNP) - 2022 Q1 - Quarterly Report
2022-05-02 16:00
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 __________________ FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM __________________ TO __________________ Commission file number 1-31447 CenterPoint Energy, Inc. (Exact name of registrant as specified in ...
CenterPoint Energy(CNP) - 2021 Q4 - Earnings Call Presentation
2022-02-22 16:17
Establishing a path towards PREMIUM Through Sustainable Growth… FOURTH QUARTER 2021 INVESTOR UPDATE February 22, 2022 Cautionary Statement and Other Disclaimers 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 connec ...