CenterPoint Energy(CNP) - 2024 Q1 - Quarterly Report

Financial Performance - Revenues for the three months ended March 31, 2024, increased to $901 million, up from$ 792 million in the same period of 2023, representing a growth of approximately 13.8%[183] - Operating income remained stable at $190 million for the three months ended March 31, 2024, compared to$ 189 million in the same period of 2023[183] - Net income for the three months ended March 31, 2024, was $99 million, a decrease from$ 108 million in the same period of 2023, reflecting a decline of approximately 8.3%[183] - CenterPoint Energy reported a net income of $264 million for Q1 2024, compared to$ 212 million in Q1 2023, reflecting a 24.5% increase[210] - Total revenues for Q1 2024 were $1.512 billion, down from$ 1.717 billion in Q1 2023, representing a decrease of 12%[210] - Utility revenues decreased to $1.500 billion in Q1 2024 from$ 1.707 billion in Q1 2023, a decline of 12.1%[210] - Operating income increased to $370 million in Q1 2024, up from$ 313 million in Q1 2023, marking an increase of 18.2%[210] - CenterPoint Energy's total expenses decreased to $1,142 million in Q1 2024 from$ 1,404 million in Q1 2023, a decrease of $262 million[255] Debt and Financing - CenterPoint Energy issued$ 400 million in new debt during the three months ended March 31, 2024, with a 5.15% interest rate due in 2034[193] - The company repaid $22 million of existing debt during the same period, including the redemption of first mortgage bonds[193] - The weighted average interest rate on revolving credit facilities was 5.49% as of March 31, 2024, slightly down from 5.54% at the end of 2023[204] - CenterPoint Energy remained compliant with all financial debt covenants as of March 31, 2024[203] - The company reported a net change in commercial paper outstanding of$ 1.472 billion for the three months ended March 31, 2024, compared to $853 million in 2023, reflecting a significant increase in short-term financing[265] Assets and Equity - CenterPoint Energy's total assets increased to$ 17,623 million as of March 31, 2024, compared to $17,086 million as of March 31, 2023, marking an increase of approximately 3.1%[185] - The company had total assets of$ 15.478 billion as of March 31, 2024, compared to $15.296 billion at the end of 2023, an increase of 1.2%[214] - Total stockholder's equity increased to$ 6.027 billion in Q1 2024 from $5.879 billion in Q1 2023, reflecting a growth of 2.5%[217] Cash Flow - Cash provided by operating activities was$ 241 million in Q1 2024, significantly higher than $94 million in Q1 2023[206] - Net cash provided by operating activities decreased significantly to$ 378 million from $1,531 million, a decline of about 75.3%[218] - For the three months ended March 31, 2024, CenterPoint Energy reported net cash provided by operating activities of$ 538 million, compared to $241 million for the same period in 2023, reflecting an increase of 123%[262] - The net cash used in investing activities for the same period was$ 844 million, a decrease from $795 million in 2023, indicating a 6% increase in cash outflow[263] - Financing activities resulted in a net cash inflow of$ 376 million for the three months ended March 31, 2024, compared to an outflow of $519 million in 2023, marking a significant turnaround[265] Capital Expenditures - Capital expenditures for Q1 2024 were$ 461 million, down from $587 million in Q1 2023, indicating a reduction of 21.4%[206] - Capital expenditures for the period were$ 303 million, down from $391 million, indicating a reduction of approximately 22.5%[218] - The estimated cost for the new natural gas combustion turbine facility is$ 334 million, expected to provide a combined output of 460 MW and operational by mid-2025[316] - Houston Electric's Mill Creek Transmission Project has estimated capital costs between $62 million and$ 98 million, with a decision on project approval expected in Q3 2024[320] - Estimated capital expenditures for CenterPoint Energy are projected to be $2,858 million for the remaining nine months of 2024, with Houston Electric and CERC expected to spend$ 1,442 million and $1,093 million, respectively[285] Regulatory and Compliance - CenterPoint Energy plans to sell its Louisiana and Mississippi natural gas LDC businesses, with the transaction expected to close in the first quarter of 2025[194] - CERC filed for a natural gas base rate increase of approximately 3.1% or$ 37 million, driven by safety and reliability investments, with a proposed 10.50% ROE[331] - CERC's Minnesota rate case requests a 6.5% increase or $85 million for 2024 and an additional 3.7% or$ 52 million for 2025, reflecting ongoing investments in system safety and reliability[332] - Indiana Electric seeks a 16% rate increase or $119 million based on a forward-looking 2025 test year, primarily for system safety and reliability improvements[333] - As of March 31, 2024, CenterPoint Energy and CERC recorded regulatory assets of$ 69 million and $104 million, respectively, related to the February 2021 Winter Storm Event[339] Environmental and Sustainability Initiatives - CenterPoint Energy has set a goal for net zero emissions for Scope 1 and certain Scope 2 emissions by 2035, and aims to reduce certain Scope 3 emissions by 20% to 30% by 2035[352] - The EPA's proposed emission limits for carbon dioxide from fossil fuel-fired power plants may impact CenterPoint Energy's operations, although the company does not plan to operate coal-fired units beyond December 2029[351] - CenterPoint Energy anticipates over$ 3 billion in cleaner energy investments over the next 10 years to support renewable energy generation and electric vehicle expansion[360] - The proposed preferred portfolio under Indiana Electric's new IRP aims to convert its last coal unit to natural gas by the end of 2027 and add significant renewable resources through 2033[360] Operational Highlights - The number of residential metered customers increased by 1% to 3,921,286 as of March 31, 2024, compared to 3,869,044 at the end of Q1 2023[255] - The throughput for residential customers decreased by 24% to 71 Bcf in Q1 2024 compared to 94 Bcf in Q1 2023[255] - CenterPoint Energy's solar projects face delays and increased costs due to supply chain issues, regulatory investigations, and the Uyghur Forced Labor Prevention Act, potentially impacting project viability[325] Innovation and Future Projects - CERC submitted its first innovation plan to the MPUC, which includes 18 pilot projects and seven smaller research-and-development projects aimed at deploying renewable energy resources[323] - Indiana Electric has filed a CPCN for a 200 MW wind energy generating facility, expected to be placed in service by the end of 2026, pending definitive agreements[291] - Houston Electric's construction of a 345 kV transmission line is substantially complete, with energization expected shortly after the completion of the Space City Solar Generation facility in the first half of 2025[298]