CenterPoint Energy(US:CNP)2021-08-05 17:25Financial Data and Key Metrics Changes - For Q2 2021, CenterPoint reported Utility EPS of $0.28, up from $0.18 in Q2 2020, reflecting an 8% growth projection for the year [15][14] - The company raised its 2021 Utility EPS guidance range to $1.25 to $1.27, which is at the high end of its 6% to 8% annual growth target [14][38] - GAAP EPS for Q2 2021 was $0.37 compared to $0.11 in Q2 2020, while non-GAAP EPS was $0.36 compared to $0.21 in the prior year [34] Business Line Data and Key Metrics Changes - The company is experiencing strong customer growth rates, with approximately 2% growth for electric and 1% for natural gas in the first half of the year [19] - O&M costs are projected to save over $40 million in 2021, although they were slightly up compared to last year's second quarter due to COVID-related impacts [17][18] Market Data and Key Metrics Changes - CenterPoint's Houston service territory continues to show consistent growth, supported by the highest level of new home starts since 2005 [19] - The company anticipates a significant increase in capital investment opportunities due to new Texas legislation, estimating an additional $500 million over the current 5-year plan [20][22] Company Strategy and Development Direction - CenterPoint has updated its 5-year strategy, prioritizing investment in regulated businesses and increasing planned capital spending by about 25% to $16 billion [11] - The company aims for a 10% utility rate base CAGR, exceeding the peer group average of 8%, and has set a long-term utility EPS growth target of 6% to 8% [11][14] - A commitment to a net zero carbon target will be announced at the upcoming Analyst Day [13][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming past challenges and is focused on leveraging current tailwinds to enhance growth [13] - The company is optimistic about its ability to maintain its growth targets despite the sale of non-core assets and the exit from midstream investments [28][77] Other Important Information - The company is in the process of selling its Arkansas and Oklahoma gas LDCs, with expectations to close the transaction by the end of the year [26] - The Natural Gas Innovation Act in Minnesota allows for investments in clean energy resources, aligning with the company's carbon reduction goals [29][30] Q&A Session Summary Question: Insights on the $500 million opportunities in Texas - Management is assessing the details of the new legislation and expects to deploy about half of the $500 million over the next two years, focusing on emergency generation and battery storage [58][60] Question: Funding sources for the increased CapEx - The company plans to fund the increased CapEx without additional equity, utilizing proceeds from the gas LDC sale and tax benefits from a method change for repairs expense [64][68] Question: Customer bill impact from incremental CapEx - Management is focused on managing customer bill impacts through O&M reductions and efficient capital investments, ensuring that the growth in CapEx does not disproportionately affect customer bills [86]