- Q3 2021 earnings of $0.32 per diluted share; $0.33 per diluted
share on a non-GAAP basis, including results from utility
operations of $0.25 per diluted share and $0.08 from midstream
investments reported under discontinued operations
- Raising 2021 non-GAAP Utility EPS guidance (“Utility EPS”)
range, for the 3rd time this year, to $1.26 - $1.28
- Utility EPS guidance range for 2022 raised to $1.36 - $1.38.
Reiterating 8% Utility EPS annual growth rate target for 2022
through 2024
CenterPoint Energy, Inc. (NYSE: CNP) today reported income
available to common shareholders of $195 million, or $0.32 per
diluted share, for the third quarter of 2021, compared to income
available to common shareholders of $69 million, or $0.13 per
diluted share, for the third quarter of 2020.
On a non-GAAP basis, third quarter 2021 earnings were $0.33 per
diluted share, with $0.25 per diluted share from utility
operations, and $0.08 per diluted share from midstream investments
which is reported under discontinued operations. This compared to
$0.29 per diluted share from utility operations and $0.05 per
diluted share from midstream investments in the third quarter of
2020. Both quarters included some one-time items. The third quarter
of 2020 included a CARES Act benefit and unfavorable COVID-related
impacts. Third quarter 2021 results include one-time costs related
to our recent board-implemented governance changes and unfavorable
weather and usage.
“CenterPoint’s year-to-date financial performance in 2021 has
been strong,” said Dave Lesar, President and Chief Executive
Officer of CenterPoint Energy. “We continue to see the benefits of
organic growth throughout our service territories combined with
capital investments and O&M discipline which together are
driving favorable earnings. As a result, we are raising our full
year 2021 Utility EPS guidance again this quarter to a range of
$1.26-$1.28 per diluted share. This is the 3rd Utility EPS guidance
raise this year, demonstrating our confidence in our underlying
business. With the latest increase in 2021 Utility EPS guidance,
our corresponding expectations for 2022 Utility EPS will now also
increase to $1.36 - $1.38 per diluted share.”
Lesar added, “At our Analyst Day in September, we increased our
5-year capital plan to over $18 billion dollars and introduced our
first ever 10-year capital plan of over $40 billion. This capital
investment will be dedicated to safety, reliability, growth and
enabling clean energy investments to benefit our customers and our
investors. This includes opportunities from the recent legislative
session in Texas. The increased level of capital is expected to
support an annual Utility EPS growth target of 8% in 2022 through
2024, and the mid to high end of our 6-8% range each year after
that through 2030.”
We now have 6 quarters of meeting or exceeding expectations, but
we believe that there is much more to come. We are demonstrating
the pathway to a premium and we hope that you will be on board with
us as a shareholder when that happens,” said Mr. Lesar.
Earnings Outlook
Given the pending merger between Enable and Energy Transfer,
CenterPoint Energy will only be presenting a Utility EPS guidance
range for 2021 and 2022 as Enable did not provide 2021 or 2022
guidance during its recent earnings call.
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 Energy 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 Energy’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
Energy’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 Energy’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.
Utility EPS Guidance Range
- The Utility EPS guidance range includes net income from
Electric and Natural Gas segments, as well as after tax Corporate
and Other operating income and an allocation of corporate overhead
based upon the Utility’s relative earnings contribution. Corporate
overhead consists primarily of interest expense, preferred stock
dividend requirements, and other items directly attributable to the
parent along with the associated income taxes.
- 2021 Utility EPS guidance excludes:
- Earnings or losses from the change in value of ZENS and related
securities
- Certain expenses associated with Vectren merger
integration
- Earnings and losses associated with the ownership and disposal
of midstream common and preferred units (including amounts reported
in discontinued operations), net gain associated with the
consummation of the pending merger between Enable and Energy
Transfer, a corresponding amount of debt related to midstream
common and preferred units, and an allocation of associated
corporate overhead
- Cost associated with the early extinguishment of debt
- Gain and impact, including related expenses, associated with
pending gas LDC sales
- 2022 Utility EPS guidance excludes:
- Earnings or losses from the change in value of ZENS and related
securities
- Income and expense 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
To the extent the pending gas LDC sales or the pending merger
between Enable and Energy Transfer do not occur in 2021, 2022
Utility EPS guidance will exclude the impacts associated with those
items as referenced in the 2021 Utility guidance above.
In providing this guidance, CenterPoint Energy 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 2021 and 2022 Utility 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. In addition, the
2021 and 2022 Utility EPS guidance ranges assume the timing of
pending gas LDC sales, the timing of pending merger between Enable
and Energy Transfer, and the timing of our planned disposition of
the Energy Transfer common units and preferred units that we expect
to receive as part of the merger between Enable and Energy
Transfer. To the extent actual results deviate from these
assumptions, the 2021 and 2022 Utility EPS guidance ranges may not
be met or the projected annual Utility EPS growth rate may change.
CenterPoint Energy is unable to present a quantitative
reconciliation of forward-looking non-GAAP diluted earnings per
share 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, 2021
Utility Operations
Midstream Investments (Disc.
Operations)
Corporate and Other (4)
Consolidated
Dollars in millions
Diluted EPS (1)
Dollars in millions
Diluted EPS (1)
Dollars in millions
Diluted EPS (1)
Dollars in millions
Diluted EPS (1)
Consolidated income (loss) available to
common shareholders and diluted EPS (1)
$
190
$
0.32
$
68
$
0.11
$
(63)
$
(0.11)
$
195
$
0.32
ZENS-related mark-to-market (gains)
losses:
Marketable securities (net of taxes of $2)
(2)(3)
—
—
—
—
10
0.02
10
0.02
Indexed debt securities (net of taxes of
$2) (2)
—
—
—
—
(9)
(0.02)
(9)
(0.02)
Impacts associated with the Vectren
merger (net of taxes of $0) (2)
1
—
—
—
—
—
1
—
Impacts associated with pending gas LDC
sales (net of taxes of $1) (2)
—
—
—
—
5
0.01
5
0.01
Corporate and Other Allocation
(39)
(0.07)
(18)
(0.03)
57
0.10
—
—
Consolidated on a non- GAAP
basis
$
152
$
0.25
$
50
$
0.08
$
—
$
—
$
202
$
0.33
(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. EPS figures
for Utility Operations, Corporate and Other, and Discontinued
Operations are non-GAAP financial measures.
(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.
(4) Corporate and Other, plus income
allocated to preferred shareholders
Year-to-Date
September 30, 2021
Utility Operations
Midstream Investments (Disc.
Operations)
Corporate and Other (4)
Consolidated
Dollars in millions
Diluted EPS (1)
Dollars in millions
Diluted EPS (1)
Dollars in millions
Diluted EPS (1)
Dollars in millions
Diluted EPS (1)
Consolidated income (loss) available to
common shareholders and diluted EPS (1)
$
693
$
1.15
$
202
$
0.34
$
(145)
$
(0.24)
$
750
$
1.25
ZENS-related mark-to-market (gains)
losses:
Marketable securities (net of taxes of $9)
(2)(3)
—
—
—
—
(31)
(0.05)
(31)
(0.05)
Indexed debt securities (net of taxes of
$8) (2)
—
—
—
—
32
0.05
32
0.05
Impacts associated with the Vectren
merger (net of taxes of $1) (2)
5
0.01
—
—
—
—
5
0.01
Impacts associated with pending gas LDC
sales (net of taxes of $0, $1) (2)
(11)
(0.02)
—
—
(1)
—
(12)
(0.02)
Cost associated with the early
extinguishment of debt (net of taxes of $7) (2)
—
—
—
—
27
0.04
27
0.04
Corporate and Other Allocation
(85)
(0.14)
(33)
(0.06)
118
0.20
—
—
Consolidated on a non-GAAP
basis
$
602
$
1.00
$
169
$
0.28
$
—
$
—
$
771
$
1.28
(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. EPS figures
for Utility Operations, Corporate and Other, and Discontinued
Operations are non-GAAP financial measures.
(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.
(4) Corporate and Other, plus income
allocated to preferred shareholders
Quarter Ended
September 30, 2020
Utility Operations
Midstream Investments (Disc.
Operations)
Corporate and Other (6)
CES(1) & CIS(2)
(Disc. Operations)
Consolidated
Dollars in millions
Diluted EPS (3)
Dollars in millions
Diluted EPS (3)
Dollars in millions
Diluted EPS (3)
Dollars in millions
Diluted EPS (3)
Dollars in millions
Diluted EPS (3)
Consolidated income (loss) available to
common shareholders and diluted EPS (3)
$
186
$
0.34
$
(72)
$
(0.13)
$
(39)
$
(0.07)
$
(6)
$
(0.01)
$
69
$
0.13
ZENS-related mark-to-market (gains)
losses:
Marketable securities (net of taxes of
$18) (4)(5)
—
—
—
—
(65)
(0.12)
—
—
(65)
(0.12)
Indexed debt securities (net of taxes of
$18) (4)
—
—
—
—
66
0.12
—
—
66
0.12
Impacts associated with the Vectren
merger (net of taxes of $0, $1) (4)
2
—
—
—
2
0.01
—
—
4
0.01
Severance costs (net of taxes of $1)
(4)
4
0.01
—
—
—
—
—
—
4
0.01
Impacts associated with the sales of
CES (1) and CIS (2) (net of taxes of $0) (4)
—
—
—
—
—
—
7
0.01
7
0.01
Impacts associated with Series C
preferred stock
Preferred stock dividend requirement and
amortization of beneficial conversion feature
—
—
—
—
23
0.04
—
—
23
0.04
Impact of increased share count on EPS if
issued as common stock
—
(0.03)
—
0.01
—
0.01
—
—
—
(0.01)
Total Series C impacts
—
(0.03)
—
0.01
23
0.05
—
—
23
0.03
Loss on impairment (net of taxes of
$29) (4)
—
—
92
0.15
—
—
—
—
92
0.15
Corporate and Other Allocation
(19)
(0.03)
7
0.02
13
0.01
(1)
—
—
—
Consolidated on a non-GAAP
basis
$
173
$
0.29
$
27
$
0.05
$
—
$
—
$
—
$
—
$
200
$
0.34
(1) Energy Services segment
(2) Infrastructure Services segment
(3) 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. EPS figures
for Utility Operations, Corporate and Other, and Discontinued
Operations are non-GAAP financial measures.
(4) Taxes are computed based on the impact
removing such item would have on tax expense
(5) Comprised of common stock of AT&T
Inc. and Charter Communications, Inc.
(6) Corporate and Other, plus income
allocated to preferred shareholders
Year-to-Date
September 30, 2020
Utility Operations
Midstream Investments (Disc.
Operations)
Corporate and Other (6)
CES(1) & CIS(2) (Disc.
Operations)
Consolidated
Dollars in millions
Diluted EPS (3)
Dollars in millions
Diluted EPS (3)
Dollars in millions
Diluted EPS (3)
Dollars in millions
Diluted EPS (3)
Dollars in millions
Diluted EPS (3)
Consolidated income (loss) available to
common shareholders and diluted EPS (3)
$
389
$
0.74
$
(1,138)
$
(2.17)
$
(169)
$
(0.32)
$
(182)
$
(0.35)
$
(1,100)
$
(2.10)
Timing effects impacting CES
(1):
Mark-to-market (gains) losses (net of
taxes of $3) (4)
—
—
—
—
—
—
(10)
(0.02)
(10)
(0.02)
ZENS-related mark-to-market (gains)
losses:
Marketable securities (net of taxes of $3)
(4)(5)
—
—
—
—
(11)
(0.02)
—
—
(11)
(0.02)
Indexed debt securities (net of taxes of
$5) (4)
—
—
—
—
20
0.04
—
—
20
0.04
Impacts associated with the Vectren
merger (net of taxes of $1, $3) (4)
5
0.01
—
—
12
0.02
—
—
17
0.03
Severance costs (net of taxes of $3,
$0) (4)
11
0.02
—
—
2
—
—
—
13
0.02
Impacts associated with the sales of
CES (1) and CIS (2) (net of taxes of $10) (4)
—
—
—
—
—
—
217
0.41
217
0.41
Impacts associated with Series C
preferred stock
Preferred stock dividend requirement and
amortization of beneficial conversion feature
—
—
—
—
39
0.08
—
—
39
0.08
Impact of increased share count on EPS if
issued as common stock
—
(0.04)
—
0.12
—
0.01
—
—
—
0.09
Total Series C impacts
—
(0.04)
—
0.12
39
0.09
—
—
39
0.17
Losses on impairment (net of taxes of
$0, $408) (4)
185
0.33
1,269
2.29
—
—
—
—
1,454
2.62
Corporate and Other Allocation
(61)
(0.11)
(40)
(0.08)
107
0.19
(6)
—
—
—
Consolidated on a non-GAAP
basis
529
0.95
91
0.16
—
—
19
0.04
639
1.15
Exclusion of CES (1) and CIS (2)
Discontinued Operations (7)
—
—
—
—
—
—
(19)
(0.04)
(19)
(0.04)
Consolidated on a non-GAAP basis,
excluding CES (1) and CIS (2)
$
529
$
0.95
$
91
$
0.16
$
—
$
—
$
—
$
—
$
620
$
1.11
(1) Energy Services segment
(2) Infrastructure Services segment
(3) 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. EPS figures
for Utility Operations, Corporate and Other, and Discontinued
Operations are non-GAAP financial measures.
(4) Taxes are computed based on the impact
removing such item would have on tax expense
(5) Comprised of common stock of AT&T
Inc. and Charter Communications, Inc.
(6) Corporate and Other, plus income
allocated to preferred shareholders
(7) Results related to Energy Services and
Infrastructure Services discontinued operations are excluded from
the company's non-GAAP results
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, 2021. 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 Energy’s management will host an earnings conference
call on Thursday, November 4, 2021, 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 Arkansas, Indiana, Louisiana,
Minnesota, Mississippi, Ohio, Oklahoma and Texas. As of September
30, 2021, the company owned approximately $37 billion in assets and
also owned 53.7 percent of the common units representing limited
partner interests in Enable Midstream Partners, LP, a publicly
traded master limited partnership that owns, operates and develops
strategically located natural gas and crude oil infrastructure
assets. With approximately 9,500 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. Any statements in this news release or
on the earnings conference call regarding capital investments, the
reopening of the economy, rate base growth and our ability to
achieve it, the impacts of the February 2021 winter storm event on
our business and service territories and the recovery and timing of
recovery of gas costs in connection with the winter storm event,
future earnings and guidance, including long-term growth rate,
dividends and dividend growth rate, operations and maintenance
expense reductions, financing plans (including future equity
issuances and credit metrics), and future financial performance and
results of operations, including with respect to regulatory
actions, the expected closing of, or proceeds from the pending
merger between Enable and Energy Transfer (including our planned
exit from midstream) or the pending sale of our Arkansas and
Oklahoma gas LDC businesses, our ability to exit our Midstream
Investments reportable segment, customer rate affordability, value
creation, opportunities and expectations, ESG strategy, including
transition to Net-Zero, 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 Energy’s or Enable’s
potential business strategies and strategic initiatives,
restructurings, joint ventures and acquisitions or dispositions of
assets or businesses, including the pending sale of our Natural Gas
businesses in Arkansas and Oklahoma, which may not be completed or
result in the benefits anticipated by CenterPoint Energy, the
pending merger between Enable and Energy Transfer, which may not be
completed or result in the benefits anticipated by CenterPoint
Energy or Enable, and our planned exit from our Midstream
Investments reportable segment, which may not be completed or
result in the benefits anticipated by CenterPoint Energy; (2)
industrial, commercial and residential growth in CenterPoint
Energy’s service territories and changes in market demand; (3)
CenterPoint Energy's ability to fund and invest planned capital,
and timely and appropriate rate actions that allow recovery of
costs and a reasonable return on investment, including costs
associated with the February 2021 winter storm event; (4) the
performance of Enable, the amount of cash distributions CenterPoint
Energy receives from Enable, and the value of CenterPoint Energy’s
interest in Enable; (5) the integration of the businesses acquired
in the merger with Vectren Corporation (Vectren), including the
integration of technology systems, and the ability to realize
additional benefits and commercial opportunities from the merger;
(6) financial market and general economic conditions, including
access to debt and equity capital and the effect on sales, prices
and costs; (7) actions by credit rating agencies, including any
potential downgrades to credit ratings; (8) the timing and impact
of regulatory proceedings and actions and legal proceedings,
including those related to the February 2021 winter storm event;
(9) 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 Energy’s net-zero targets;
(10) the impact of the COVID-19 pandemic; (11) the recording of
impairment charges, including any impairments related to
CenterPoint Energy’s investment in Enable; (12) weather variations
and CenterPoint Energy’s ability to mitigate weather impacts,
including impacts from the February 2021 winter storm event; (13)
changes in business plans; (14) CenterPoint Energy’s ability to
execute on its initiatives, targets and goals, including its Net
Zero emission goals and operations and maintenance goals; and (15)
other factors discussed in CenterPoint Energy’s Quarterly Reports
on Form 10-Q for the quarters ended March 31, 2021, June 30, 2021
and September 30, 2021, and CenterPoint Energy’s Annual Report on
Form 10-K for the fiscal year ended December 31, 2020, including in
the “Risk Factors” and “Cautionary Statement Regarding
Forward-Looking Information” sections of such reports, and other
reports CenterPoint Energy 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/20211104005311/en/
Media: Communications
Media.Relations@CenterPointEnergy.com Investors: Philip
Holder / Jackie Richert Phone: 713.207.6500
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