- Reported GAAP earnings and non-GAAP earnings of $0.40 per
diluted share for Q3 2023
- Increased non-GAAP EPS guidance range for 2023 from $1.48-$1.50
to $1.49-$1.51 which now represents a 9% growth target at the
midpoint over 2022 actual results; expected to be the third
consecutive year of 9% growth1
- Increased 10-year capital plan to $43.9 billion, a $500 million
increase through 2030 which includes an increase of $200 million in
2023 and $300 million in 2024 and 2025
- Initiated 2024 non-GAAP EPS guidance range of $1.61-$1.63,
which represents an 8% growth over the increased 2023 midpoint and
further maintains growth targets of 8% for 2024 and the mid-to-high
end of 6%-8% annually thereafter through 20301
CenterPoint Energy, Inc. (NYSE: CNP) or “CenterPoint” today
reported income available to common shareholders of $256 million,
or $0.40 per diluted share on a GAAP basis for the third quarter of
2023.
Non-GAAP EPS for the third quarter 2023 was also $0.40, a 25%
increase to the comparable quarter of 2022. These strong third
quarter results were primarily driven by growth and regulatory
recovery, which contributed $0.09 per share of favorability, and
weather, which contributed another $0.05 per share of favorability
as compared to the third quarter of 2022. These drivers were
partially offset by an unfavorable variance of $0.08 per share
attributable to increased interest expense over the comparable
quarter of 2022.
“This quarter is another great example of this management team
meeting or exceeding expectations while continuing to demonstrate
that there’s still potential for additional incremental earnings
power,” said Dave Lesar, CEO of CenterPoint. “Heading into the
final quarter of 2023 and looking to 2024, we are anticipating
continued headwinds of higher interest rates and persistent
inflation but will continue to manage through these conditions,
targeting an earnings growth rate that is amongst the top in the
sector. This includes an 8% non-GAAP EPS growth target for 2024,
and mid-to-high end of 6-8% growth target annually thereafter
through 2030.”
___________________________
1 CenterPoint is unable to present a
quantitative reconciliation of forward-looking non-GAAP diluted
earnings per share without unreasonable effort because changes in
the value of ZENS (as defined herein) and related securities,
future impairments, and other unusual items are not estimable and
are difficult to predict due to various factors outside of
management’s control.
“Given the extreme weather conditions causing significant stress
on our system, especially in our Houston Electric service
territory, our team did a tremendous job of keeping the power
flowing for our customers,” said Lesar. “We understand that it’s a
privilege to serve such a vital role in our communities and it’s
certainly not one we take lightly.”
Lesar added, “We are pleased to announce yet another increase to
our customer-driven 10-year capital plan by an incremental $500
million through 2030. This will include approximately $200 million
in 2023 and approximately $300 million in 2024 and 2025. As stated
in prior quarters, we will incorporate incremental capital when we
believe we can operationally execute it, efficiently fund it, and
effectively recover it. Our focus continues to be on delivering
industry leading growth each and every year, while over-delivering
for our customers, investors, and other stakeholders.”
Earnings Outlook
Given CenterPoint’s divestiture of its remaining midstream
investments during 2022, CenterPoint will be presenting a
consolidated non-GAAP EPS guidance range for 2023.
In addition to presenting its financial results in accordance
with GAAP, including presentation of income (loss) available to
common shareholders and diluted earnings (loss) per share,
CenterPoint provides guidance based on non-GAAP income and non-GAAP
diluted earnings per share. 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.
Management evaluates CenterPoint’s financial performance in part
based on non-GAAP income and non-GAAP earnings per share.
Management believes that presenting these non-GAAP financial
measures enhances an investor’s understanding of CenterPoint’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
do 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’s non-GAAP income and non-GAAP diluted earnings per
share 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.
2022 and 2023 non-GAAP EPS; 2023 and 2024 non-GAAP EPS guidance
range
Beginning in 2022, CenterPoint no longer separated utility and
midstream operations and reported on a consolidated non-GAAP EPS
basis.
- 2022 non-GAAP EPS excluded:
- Earnings or losses from the change in value of ZENS and related
securities;
- Gain and impact, including related expenses, associated with
Arkansas and Oklahoma gas LDC sales
- Income and expense related to ownership and disposal of Energy
Transfer common and Series G preferred units, and a corresponding
amount of debt related to the units.
- 2023 non-GAAP EPS and 2023 and 2024 non-GAAP EPS guidance
excludes:
- Earnings or losses from the change in value of ZENS and related
securities; and
- Gain and impact, including related expenses, associated with
mergers and divestitures, such as the divestiture of Energy Systems
Group, LLC.
In providing 2023 non-GAAP EPS and 2023 and 2024 non-GAAP EPS
guidance, CenterPoint does not consider the items noted above and
other potential impacts such as changes in accounting standards,
impairments, or other unusual items, which could have a material
impact on GAAP reported results for the applicable guidance period.
The 2023 and 2024 non-GAAP EPS guidance ranges also consider
assumptions for certain significant variables that may impact
earnings, such as customer growth and usage including normal
weather, throughput, recovery of capital invested, effective tax
rates, financing activities and related interest rates, and
regulatory and judicial proceedings. To the extent actual results
deviate from these assumptions, the 2023 and/or 2024 non-GAAP EPS
guidance ranges may not be met, or the projected annual non-GAAP
EPS growth rate may change. CenterPoint is unable to present a
quantitative reconciliation of forward-looking non-GAAP diluted
earnings per share without unreasonable effort because changes in
the value of ZENS and related securities, future impairments, and
other unusual items are not estimable and are difficult to predict
due to various factors outside of management’s control.
Reconciliation of Consolidated income
(loss) available to common shareholders and diluted earnings (loss)
per share (GAAP) to non-GAAP income and non-GAAP diluted earnings
per share
Quarter Ended
September 30, 2023
Dollars in millions
Diluted EPS (1)
Consolidated income (loss) available to
common shareholders and diluted EPS
$
256
$
0.40
ZENS-related mark-to-market (gains)
losses:
Equity securities (net of taxes of $10)
(2)(3)
(39
)
(0.06
)
Indexed debt securities (net of taxes of
$10) (2)
37
0.06
Impacts associated with mergers and
divestitures (net of taxes of $0) (2)
2
-
Consolidated on a non-GAAP
basis
$
256
$
0.40
1)
Quarterly diluted EPS on both a GAAP and
non-GAAP basis are based on the weighted average number of shares
of common stock outstanding during the quarter, and the sum of the
quarters may not equal year-to-date diluted EPS.
2)
Taxes are computed based on the impact
removing such item would have on tax expense. Taxes related to the
operating results of Energy Systems Group, as well as cash taxes
payable and other tax impacts related to the sale of Energy Systems
Group in the second quarter of 2023, are excluded from non-GAAP
EPS.
3)
Comprised of common stock of AT&T
Inc., Charter Communications, Inc. and Warner Bros. Discovery,
Inc.
Reconciliation of Consolidated income
(loss) available to common shareholders and diluted earnings (loss)
per share (GAAP) to non-GAAP income and non-GAAP diluted earnings
per share
Quarter Ended
September 30, 2022
Dollars in millions
Diluted EPS (1)
Consolidated income (loss) available to
common shareholders and diluted EPS
$
189
$
0.30
ZENS-related mark-to-market (gains)
losses:
Equity securities (net of taxes of $43)
(2)(3)
163
0.25
Indexed debt securities (net of taxes of
$44) (2)(4)
(166
)
(0.26
)
Midstream-related earnings (net of
taxes of $1) (2)(4)
(1
)
-
Impacts associated with mergers and
divestitures (net of taxes of $20) (2)
21
0.03
Consolidated on a non-GAAP
basis
$
206
$
0.32
1)
Quarterly diluted EPS on both a GAAP and
non-GAAP basis are based on the weighted average number of shares
of common stock outstanding during the quarter, and the sum of the
quarters may not equal year-to-date diluted EPS.
2)
Taxes are computed based on the impact
removing such item would have on tax expense.
3)
Comprised of common stock of AT&T
Inc., Charter Communications, Inc. and Warner Bros. Discovery,
Inc.
4)
Includes earnings and expenses related to
ownership and disposal of Energy Transfer units, a corresponding
amount of debt related to the units and an allocation of associated
corporate overhead.
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, 2023. 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’s management will host an earnings conference call
on October 26, 2023, at 7:00 a.m. Central time / 8:00 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.
About CenterPoint Energy, Inc.
As the only investor owned electric and gas utility based in
Texas, CenterPoint Energy, Inc. (NYSE: CNP) is an energy delivery
company with electric transmission and distribution, power
generation and natural gas distribution operations that serve more
than 7 million metered customers in Indiana, Louisiana, Minnesota,
Mississippi, Ohio and Texas. As of September 30, 2023, the company
owned approximately $39 billion in assets. With approximately 9,000
employees, CenterPoint Energy and its predecessor companies have
been in business for more than 150 years. For more information,
visit CenterPointEnergy.com.
Forward-looking Statements
This news release includes, and the earnings conference call
will include forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. When used in this
news release, the words "anticipate," "believe," "continue,"
"could," "estimate," "expect," "forecast," "goal," "intend," "may,"
"objective," "plan," "potential," "predict," "projection,"
"should," "target," "will" or other similar words are intended to
identify forward-looking statements. 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. Examples of forward-looking statements
in this news release or on the earnings conference call include
statements regarding capital investments (including with respect to
incremental capital opportunities, deployment of capital,
renewables projects, and financing of such projects), the timing of
and projections for upcoming rate cases for CenterPoint and its
subsidiaries, the timing and extent of CenterPoint’s recovery,
including with regards to its generation transition plans and
projects, mobile generation spend, projects included in
CenterPoint’s Natural Gas Innovation Plan, and projects included
under its 10-year capital plan, the extent of anticipated benefits
from new legislation, future earnings and guidance, including
long-term growth rate, customer charges, operations and maintenance
expense reductions, financing plans (including the timing of any
future equity issuances, securitization, credit metrics and parent
level debt), the timing and anticipated benefits of our generation
transition plan, including our exit from coal and our 10-year
capital plan, ZENS and impacts of the maturity of ZENS, tax
planning opportunities, future financial performance and results of
operations, including with respect to regulatory actions and
recoverability of capital investments, customer rate affordability,
value creation, opportunities and expectations, expected customer
growth, ESG strategy, including our net zero and carbon emissions
reduction goals, and any other statements that are not historical
facts are forward-looking statements. Each forward-looking
statement contained in this news release or discussed on the
earnings conference call speaks only as of the date of this release
or the earnings conference call.
Important factors that could cause actual results to differ
materially from those indicated by the provided forward-looking
information include, but are not limited to, risks and
uncertainties relating to: (1) CenterPoint’s business strategies
and strategic initiatives, restructurings, including the internal
restructuring of certain subsidiaries, joint ventures and
acquisitions or dispositions of assets or businesses, including the
completed sales of our Natural Gas businesses in Arkansas and
Oklahoma, and Energy Systems Group, LLC, and the exit from
midstream, which we cannot assure you will have the anticipated
benefits to us; (2) industrial, commercial and residential growth
in CenterPoint’s service territories and changes in market demand;
(3) CenterPoint’s ability to fund and invest planned capital, and
the timely recovery of its investments; (4) financial market and
general economic conditions, including access to debt and equity
capital and inflation, interest rates and instability of banking
institutions, and their effect on sales, prices and costs; (5)
continued disruptions to the global supply chain and increases in
commodity prices; (6) actions by credit rating agencies, including
any potential downgrades to credit ratings; (7) the timing and
impact of regulatory proceedings and actions and legal proceedings,
including those related to Houston Electric’s mobile generation and
the February 2021 winter storm event; (8) legislative decisions,
including tax and developments related to the environment such as
global climate change, air emissions, carbon, waste water
discharges and the handling of coal combustion residuals, among
others, and CenterPoint’s net zero and carbon emissions reduction
goals; (9) the impact of pandemics, including the COVID-19
pandemic; (10) the recording of impairment charges; (11) weather
variations and CenterPoint’s ability to mitigate weather impacts,
including the approval and timing of securitization issuances; (12)
changes in business plans; (13) CenterPoint’s ability to execute on
its initiatives, targets and goals, including its net zero and
carbon emissions reduction goals and operations and maintenance
goals; and (14) other factors discussed CenterPoint’s Annual Report
on Form 10-K for the fiscal year ended December 31, 2022 and
CenterPoint’s Quarterly Reports on Form 10-Q for the quarters ended
March 31, 2023, June 30, 2023, and September 30, 2023, including in
the “Risk Factors” and “Cautionary Statement Regarding
Forward-Looking Information” sections of such reports, and other
reports CenterPoint or its subsidiaries may file from time to time
with the Securities and Exchange Commission.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231026609543/en/
Media: Communications
Media.Relations@CenterPointEnergy.com Investors: Jackie
Richert / Ben Vallejo Phone 713.207.6500
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