- Reported Q4 2024 earnings of $0.38 per diluted share and full
year 2024 earnings of $1.58 per diluted share on a GAAP basis
- Non-GAAP earnings per diluted share (“non-GAAP EPS”) was $0.40
for Q4 2024 and $1.62 for full year 2024; 8% increase over 2023
full year non-GAAP EPS of $1.50
- Provided forecast of nearly 50% of increased electric load
growth demand at Houston Electric service territory by 2031
- Increased the 10-year capital plan through 2030 to $47.5
billion, a $500 million increase through 2030 related to
incremental capital investments in grid resiliency in the Houston
Region
- Reiterated 2025 non-GAAP EPS guidance range of $1.74-$1.76,
which, at the midpoint, represents 8% growth over full-year 2024
non-GAAP EPS and further maintains non-GAAP EPS growth target of
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 $248 million,
or $0.38 per diluted share on a GAAP basis for the fourth quarter
of 2024, compared to $0.30 per diluted share in the comparable
period of 2023.
Non-GAAP EPS for the fourth quarter 2024 was $0.40 per diluted
share, a 25% increase to the comparable quarter of 2023. These
strong fourth quarter results were primarily driven by growth and
regulatory recovery and lower O&M, both of which contributed
$0.05 per share of favorability when compared to the comparable
quarter of 2023. In addition, weather and usage also contributed
$0.02 per share when compared to the fourth quarter of 2023. These
favorable drivers were partially offset by an unfavorable variance
of $0.03 per share attributable to increased interest expense over
the comparable quarter of 2023.
CenterPoint also provided an update with respect to its
anticipated electric demand load growth in its Houston Electric
service territory. It is currently forecasting demand to grow
nearly 50% by 2031.
_______________________
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.
“Through our GHRI work, we’ve made significant progress on our
goal of building the most resilient coastal grid in the nation. Our
recently filed $5.75 billion Systemwide Resiliency Plan will
provide the next significant step change in our long-term hardening
work and will accelerate our delivery of a self-healing grid, all
for the benefit of our customers and communities. At the same time,
we have the privilege of being an enabler for an incredibly diverse
set of growth drivers including logistics, energy exports, and
other commercial activities that are fueling explosive economic
development across the Greater Houston region. We see this growth
only accelerating into the next decade, and, when coupled with our
resiliency work, we believe this is unique to CenterPoint and the
most tangible, long-term growth plan in the industry,” said Jason
Wells, President & CEO of CenterPoint.
Earnings Outlook
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 and 2024 non-GAAP EPS; 2025 non-GAAP EPS guidance range
- 2023 and 2024 non-GAAP EPS and 2025 non-GAAP EPS guidance
excludes:
- Earnings or losses from the change in value of CenterPoint’s
2.0% Zero-Premium Exchangeable Subordinated Notes due 2029 (“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 and our Louisiana and Mississippi natural gas local
distribution company (“LDC”) businesses.
- 2025 non-GAAP EPS guidance also excludes impacts related to
temporary emergency electric energy facilities “TEEEF” once they
are no longer part of our rate-regulated business.
In providing 2023 and 2024 non-GAAP EPS and 2025 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 2025 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 2025 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 December 31,
2024
Dollars in millions
Diluted EPS(1)
Consolidated income (loss) available to
common shareholders and diluted EPS
$
248
$
0.38
ZENS-related mark-to-market (gains)
losses:
Equity securities (net of taxes of $6)
(2)(3)
(24
)
(0.03
)
Indexed debt securities (net of taxes of
$6) (2)
22
0.03
Impacts associated with mergers and
divestitures (net of taxes of $1) (2)(4)
13
0.02
Consolidated on a non-GAAP basis
(5)
$
259
$
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.
3)
Comprised of common stock of AT&T
Inc., Charter Communications, Inc. and Warner Bros. Discovery,
Inc.
4)
Includes professional fees associated with
execution of transactions from the sale of Louisiana and
Mississippi LDCs.
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
Year-to-Date Ended December 31,
2024
Dollars in millions
Diluted EPS(1)
Consolidated income (loss) available to
common shareholders and diluted EPS
$
1,019
$
1.58
ZENS-related mark-to-market (gains)
losses:
Equity securities (net of taxes of $4)
(2)(3)
(15
)
(0.02
)
Indexed debt securities (net of taxes of
$3) (2)
11
0.01
Impacts associated with mergers and
divestitures (net of taxes of $3) (2)(4)
26
0.04
Consolidated on a non-GAAP basis
(5)
$
1,041
$
1.62
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 professional fees associated with
execution of transactions from the sale of Louisiana and
Mississippi LDCs.
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 December 31,
2023
Dollars in millions
Diluted EPS(1)
Consolidated income (loss) available to
common shareholders and diluted EPS
$
192
$
0.30
ZENS-related mark-to-market (gains)
losses:
Equity securities (net of taxes of $5)
(2)(3)
20
0.03
Indexed debt securities (net of taxes of
$5) (2)
(20
)
(0.03
)
Impacts associated with mergers and
divestitures (net of taxes of $9) (2)
12
0.02
Consolidated on a non-GAAP basis
(4)
$
204
$
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. 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.
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 December 31,
2023
Dollars in millions
Diluted EPS(1)
Consolidated income (loss) available to
common shareholders and diluted EPS
$
867
$
1.37
ZENS-related mark-to-market (gains)
losses:
Equity securities (net of taxes of $7)
(2)(3)
(25
)
(0.04
)
Indexed debt securities (net of taxes of
$6) (2)
21
0.03
Impacts associated with mergers and
divestitures (net of taxes of $64) (2) (4)
89
0.14
Consolidated on a non-GAAP
basis
$
952
$
1.50
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. 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, are excluded from 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 related to Energy Systems Group, a divested non-regulated
business, as well as the $13 million loss on sale and approximately
$2 million of other indirect related transaction costs associated
with the divestiture.
Filing of Form 10-K for CenterPoint Energy, Inc.
Today, CenterPoint Energy, Inc. filed with the Securities and
Exchange Commission (“SEC”) its Annual Report on Form 10-K for the
year ended December 31, 2024. 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 February 20, 2025, 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 December 31, 2024, the company
owned approximately $44 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
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. All statements other than
statements of historical fact included in this news release and the
earnings conference call are forward-looking statements made in
good faith by CenterPoint and are intended to qualify for the safe
harbor from liability established by the Private Securities
Litigation Reform Act of 1995, including statements concerning
CenterPoint’s expectations, beliefs, plans, objectives, goals,
strategies, future operations, events, financial position, earnings
and guidance, growth, costs, prospects, capital investments or
performance or underlying assumptions and other statements that are
not historical facts. You should not place undue reliance on
forward-looking statements. 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. The absence of these words, however, does not mean that
the statements are not forward-looking.
Examples of forward-looking statements in this news release or
on the earnings conference call include statements about Houston
Electric’s Greater Houston Resiliency Initiative (“GHRI”) and
Transmission and Distribution System Resiliency Plan (“SRP”)
(including with respect to timing, anticipated benefits, and
related matters), Houston Electric’s proposal to transfer its 15
large 27 MW to 32 MW TEEEF units to the San Antonio area and
complete one or more other future transactions involving the units
(including with respect to timing, anticipated benefits, expected
market demand for the units, and related matters), capital
investments (including with respect to incremental capital
opportunities, deployment of capital, and financing of such
projects), the timing of, projections for, and anticipated benefits
from the settlement of rate cases for CenterPoint and its
subsidiaries, the timing and extent of CenterPoint's recovery,
including with regards to its restoration costs for the severe
weather events in May 2024 (“May 2024 Storm Events”) and Hurricane
Beryl, generation transition plans and projects, projects included
in CenterPoint's Natural Gas Innovation Plan and System Resiliency
Plan, and projects included under its 10-year capital plan,
electric demand growth in our service territories (including our
forecasts of, the timing of investments related to, and anticipated
benefits of such growth), the extent of anticipated benefits of the
announced sale of our Louisiana and Mississippi natural gas LDC
businesses, future earnings and guidance, including long-term
growth rate, customer charges, operations and maintenance expense
reductions, financing plans (including with respect to the
restoration costs for the May 2024 Storm Events and Hurricane Beryl
and the timing of any future equity issuances, securitization,
credit metrics and parent level debt), the timing and anticipated
benefits of our generation transition plan and our 10-year capital
plan, the Company’s 2.0% Zero-Premium Exchangeable Subordinated
Notes due 2029 (“ZENS”) and impacts of the maturity of ZENS,
CenterPoint’s continued focus on liquidity and credit ratings, 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, and expected
customer growth. We have based our forward-looking statements on
our management’s beliefs and assumptions based on information
currently available to our management at the time the statements
are made. We caution you that assumptions, beliefs, expectations,
intentions, and projections about future events may and often do
vary materially from actual results. Therefore, we cannot assure
you that actual results will not differ materially from those
expressed or implied by our 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.
Some of the factors that could cause actual results to differ
from those expressed or implied by our forward-looking information
include, but are not limited to, risks and uncertainties relating
to: (1) the business strategies and strategic initiatives,
restructurings, joint ventures and acquisitions or dispositions of
assets or businesses involving CenterPoint or its industry,
including the ability to successfully complete such strategies,
initiatives, transactions or plans on the timelines we expect or at
all, such as the announced sale of our Louisiana and Mississippi
natural gas LDC businesses, 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, including in relation to the expansion of data
centers, energy export facilities, including hydrogen facilities,
electrification of industrial processes and transport and
logistics, as well as the effects of energy efficiency measures and
demographic patterns; (3) CenterPoint’s ability to fund and invest
planned capital, and the timely recovery of its investments,
including those related to Houston Electric’s GHRI and SRP; (4) the
ability to execute Houston Electric’s GHRI and SRP; (5) the ability
to finalize Houston Electric’s proposal to release its 15 large 27
MW to 32 MW TEEEF units to the San Antonio area and complete one or
more other future transactions involving the units on acceptable
terms and conditions within the anticipated timeframe; (6)
financial market and general economic conditions, including access
to debt and equity capital, inflation, interest rates, and their
effect on sales, prices and costs; (7) disruptions to the global
supply chain and volatility in commodity prices, including
resulting from tariffs or trade agreements; (8) actions by credit
rating agencies, including any potential downgrades to credit
ratings; (9) the timing and impact of regulatory proceedings and
actions and legal proceedings, including those related to the May
2024 Storm Events and Hurricane Beryl, Houston Electric’s TEEEF
units and the February 2021 winter storm event; (10) legislative,
regulatory and political actions or developments, including any
actions resulting from the May 2024 Storm Events and Hurricane
Beryl, as well as tax and developments related to the environment
such as global climate change, air emissions, carbon and other
greenhouse gas emissions, wastewater discharges and the handling of
coal combustion residuals, among others, and CenterPoint’s net zero
and greenhouse gas emissions reduction goals; (11) the impact of
public health threats; (12) weather variations and other natural
phenomena, including severe weather events, and CenterPoint’s
ability to mitigate weather impacts, including the approval and
timing of securitization issuances; (13) the impact of potential
wildfires; (14) changes in business plans; (15) CenterPoint’s
ability to adopt, develop and deploy artificial intelligence; (16)
CenterPoint’s ability to execute on its initiatives, targets and
goals, including its net zero and greenhouse gas emissions
reduction goals and operations and maintenance goals; and (17)
other factors discussed in CenterPoint’s Annual Report on Form 10-K
for the fiscal year ended December 31, 2024, including under “Risk
Factors,” “Cautionary Statements Regarding Forward-Looking
Information” and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations — Certain Factors Affecting
Future Earnings” in such reports and in other filings with the
Securities and Exchange Commission (“SEC”) by CenterPoint, which
can be found at www.centerpointenergy.com on the Investor Relations
page or on the SEC website at www.sec.gov.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250220748981/en/
For more information contact Media: Communications
Media.Relations@CenterPointEnergy.com Investors: Jackie
Richert / Ben Vallejo Phone 713.207.6500
CenterPoint Energy (NYSE:CNP)
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