- Reported GAAP earnings of $0.17 per diluted share for Q2
2023
- Reported non-GAAP earnings per diluted share (“non-GAAP EPS”)
of $0.28 for Q2 2023
- Increased 2023 capital plan by $400 million or more than 11% to
$4 billion in 2023 and $43.4B over the 10-year plan through
2030
- Non-GAAP EPS guidance range for 2023 reaffirmed at $1.48-$1.50,
which represents 8% growth over 2022 results at the midpoint; and
further reiterated 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 $106 million,
or $0.17 per diluted share on a GAAP basis for the second quarter
of 2023. This income included loss and expense of $74 million, or
$0.12 per share, related to the divestiture of Energy Systems
Group, LLC. This is compared to $0.28 of diluted EPS for the second
quarter of 2022, which included a one-time, $0.03 per share expense
associated with the Arkansas and Oklahoma natural gas LDC sale.
Non-GAAP EPS for the second quarter 2023 was $0.28 which, when
combined with the $0.50 first quarter 2023 non-GAAP EPS represents
more than half of 2023 full-year guidance at the midpoint. The
strong second quarter results were predominantly driven by growth
and regulatory recovery which contributed $0.07 per share as
compared to the second quarter of 2022. This was offset by a
combined $0.10 per share attributable to increased interest expense
and milder weather.
“We are pleased to report another quarter of continued execution
as we strive to deliver sustainable earnings growth each and every
year at an industry leading rate through 2030.” said Dave Lesar,
CEO of CenterPoint. “This management team continues to execute even
during times of continued headwinds from higher interest expense,
persistent inflation, and extreme weather events.”
“And, along with this execution, we continue to focus on
incremental opportunities to invest in safety, resiliency, and
reliability across all our jurisdictions to benefit our customers
for many years to come. In this quarter alone, we raised our 2023
capital spending plans by over 11%. We continue to feel confident
in our ability to identify opportunities well beyond our remaining
$2.6 billion of potential incremental capital.” Lesar added.
_______________________
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.
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.
2023 non-GAAP EPS and 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 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 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 non-GAAP EPS and non-GAAP EPS guidance range also
considers 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 non-GAAP EPS guidance
range 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
June 30, 2023
Dollars in millions
Diluted EPS (1)
Consolidated income (loss) available to
common shareholders and diluted EPS
$
106
$
0.17
ZENS-related mark-to-market (gains)
losses:
Equity securities (net of taxes of $6)
(2)(3)
25
0.04
Indexed debt securities (net of taxes of
$7) (2)
(27)
(0.04)
Impacts associated with mergers and
divestitures (net of taxes of $54) (2)(4)
74
0.12
Consolidated on a non-GAAP basis
(5)
$
178
$
0.28
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 for the six months ended
June 30, 2023, 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 Q2 2023 non-GAAP EPS.
3)
Comprised of common stock of AT&T
Inc., Charter Communications, Inc. and Warner Bros. Discovery,
Inc.
4)
Includes $4.4 million of pre-tax operating
loss for the six months ended June 30, 2023, related to Energy
Systems Group, a divested non-regulated business, as well as the
$12.4 million loss on sale and approximately $2 million of other
indirect transaction related costs associated with the divestiture
in the second quarter of 2023.
5)
The calculation on a per-share basis may
not add down due to rounding.
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
March 31, 2023
Dollars in millions
Diluted EPS (1)
Consolidated income (loss) available to
common shareholders and diluted EPS
$
313
$
0.49
ZENS-related mark-to-market (gains)
losses:
Equity securities (net of taxes of $8)
(2)(3)
(31)
(0.05)
Indexed debt securities (net of taxes of
$8) (2)
31
0.05
Impacts associated with mergers and
divestitures (net of taxes of $1) (2)
1
0.00
Consolidated on a non-GAAP basis
(4)
$
314
$
0.50
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)
The calculation on a per-share basis may
not add down due to rounding
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
Year-to-Date Ended
June 30, 2023
Dollars in millions
Diluted EPS (1)
Consolidated income (loss) available to
common shareholders and diluted EPS
$
419
$
0.66
ZENS-related mark-to-market (gains)
losses:
Equity securities (net of taxes of $1)
(2)(3)
(6)
(0.01)
Indexed debt securities (net of taxes of
$1) (2)
4
0.01
Impacts associated with mergers and
divestitures (net of taxes of $55) (2)(4)
75
0.12
Consolidated on a non-GAAP
basis
$
492
$
0.78
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 for the six months ended
June 30, 2023, 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 Q2 2023 non-GAAP EPS.
3)
Comprised of common stock of AT&T
Inc., Charter Communications, Inc. and Warner Bros. Discovery,
Inc.
4)
Includes $4.4 million of pre-tax operating
loss for the six months ended June 30, 2023 related to Energy
Systems Group, a divested non-regulated business, as well as the
$12.4 million loss on sale and approximately $2 million of other
indirect transaction related costs associated with the divestiture
in the second quarter of 2023.
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
June 30, 2022
Dollars in millions
Diluted EPS (1)
Consolidated income (loss) available to
common shareholders and diluted EPS
$
179
$
0.28
ZENS-related mark-to-market (gains)
losses:
Equity securities (net of taxes of $13)
(2)(3)
49
0.08
Indexed debt securities (net of taxes of
$14) (2)
(52)
(0.08)
Midstream-related earnings (net of
taxes of $0) (2)(4)
(1)
-
Impacts associated with mergers and
divestitures (net of taxes of $16) (2)
19
0.03
Consolidated on a non-GAAP
basis
$
194
$
0.31
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.
Quarter Ended
March 31, 2022
Dollars in millions
Diluted EPS (1)
Consolidated income (loss) available to
common shareholders and diluted EPS
$
518
$
0.82
ZENS-related mark-to-market (gains)
losses:
Equity securities (net of taxes of $22)
(2)(3)
81
0.13
Indexed debt securities (net of taxes of
$22) (2)
(83)
(0.13)
Midstream-related earnings (net of
taxes of $10) (2)(4)
(32)
(0.05)
Impacts associated with mergers and
divestitures (net of taxes of $112) (2)
(189)
(0.30)
Consolidated on a non-GAAP
basis
$
295
$
0.47
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.
and Charter Communications, Inc. (as of March 31, 2022)
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. Includes costs associated with early
extinguishment of $600 million debt at CenterPoint Energy, Inc. of
approximately $35 million, net of taxes.
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
Year-to-Date Ended
June 30, 2022
Dollars in millions
Diluted EPS (1)
Consolidated income (loss) available to
common shareholders and diluted EPS
$
697
$
1.10
ZENS-related mark-to-market (gains)
losses:
Equity securities (net of taxes of $34)
(2)(3)
130
0.21
Indexed debt securities (net of taxes of
$36) (2)
(135)
(0.21)
Midstream-related earnings (net of
taxes of $10) (2)(4)
(33)
(0.05)
Impacts associated with mergers and
divestitures (net of taxes of $128) (2)
(170)
(0.27)
Consolidated on a non-GAAP
basis
$
489
$
0.78
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. Includes costs associated with early
extinguishment of $600 million debt at CenterPoint Energy, Inc. of
approximately $35 million, net of taxes.
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 June 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 July 27, 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 June 30, 2023, the company owned
approximately $38 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, and
renewables 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 (such
as any potential use of the repairs expense deduction), 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, and June 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/20230727834771/en/
Media: Communications
Media.Relations@CenterPointEnergy.com Investors: Jackie
Richert / Ben Vallejo Phone 713.207.6500
CenterPoint Energy (NYSE:CNP)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
CenterPoint Energy (NYSE:CNP)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024