- Reported Q4 2023 earnings of $0.30 per diluted share and full
year 2023 earnings of $1.37 per diluted share on a GAAP basis
- Non-GAAP earnings per diluted share (“non-GAAP EPS”) was $0.32
for Q4 2023 and $1.50 for full year 2023; 9% increase over 2022
full year non-GAAP EPS of $1.38
- Increased the 10-year capital plan through 2030 to $44.5
billion, a $600 million increase through 2030 which includes $100
million already deployed in 2023 with the remaining $500 million to
be invested over the remainder of the decade
- Reiterated 2024 non-GAAP EPS guidance range of $1.61-$1.63,
which represents 8% growth over full-year 2023 non-GAAP EPS and
further maintains non-GAAP EPS 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 $192 million,
or $0.30 per diluted share on a GAAP basis for the fourth quarter
of 2023, compared to $0.19 per diluted share in the previous
comparable period of 2022, and $867 million, or $1.37 per diluted
share for the year ended December 31, 2023, compared to $1,008
million, or $1.59 per diluted share for the year ended December 31,
2022.
Non-GAAP EPS for the fourth quarter 2023 was $0.32, a 14%
increase to the comparable quarter of 2022. These strong fourth
quarter results were primarily driven by growth and regulatory
recovery, which contributed $0.05 per share of favorability, and a
one-time tax benefit, which, combined with other favorable earnings
drivers, contributed another $0.06 per share when compared to the
fourth quarter of 2022. These favorable drivers were partially
offset by an unfavorable variance of $0.05 per share attributable
to increased interest expense over the comparable quarter of
2022.
“I am excited and humbled to have the privilege to lead
CenterPoint into its next chapter,” said Jason Wells, CEO of
CenterPoint. “The last few years have proven that our strategy is
truly one of the best in the industry and that we have the ability
to execute it at a high-level. These latest quarter and full year
2023 results exemplify this point as we delivered on a third
consecutive year of 9% non-GAAP EPS growth and delivered premium
results for all stakeholders despite the ongoing headwinds our
industry has faced.”
“With our announced LDC asset sale this morning, we’ve now
entered into a fourth transaction since Analyst Day 2021, for the
benefit of efficiently recycling capital into states in which we
either have combined electric and gas operations or a larger
presence. We believe this portfolio optimization will allow us to
further enhance our ability to continue executing our
industry-leading long-term growth strategy for many years to come,”
said Wells.
_______________
1CenterPoint 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
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; 2024 non-GAAP EPS guidance range
- 2022 non-GAAP EPS excluded:
- Earnings or losses from the change in value of ZENS and related
securities; and
- Gain and impact, including related expenses, associated with
Arkansas and Oklahoma gas LDC sales; and
- 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 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 and Louisiana and Mississippi gas LDC sales.
In providing 2022 and 2023 non-GAAP EPS 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 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 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 CenterPoint
Energy’s 2.0% Zero-Premium Exchangeable Subordinated Notes due 2029
(“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, 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
$
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, 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
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.
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, 2022
Dollars in millions
Diluted EPS (1)
Consolidated income (loss) available to
common shareholders and diluted EPS
$
122
$
0.19
ZENS-related mark-to-market (gains)
losses:
Equity securities (net of taxes of $12)
(2)(3)
(46
)
(0.07
)
Indexed debt securities (net of taxes of
$12) (2)
45
0.07
Midstream-related earnings (net of
taxes of $11) (2)(4)
(12
)
(0.02
)
Impacts associated with mergers and
divestitures (net of taxes of $18) (2)(5)
69
0.11
Consolidated on a non-GAAP
basis
$
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.
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.
5)
Includes a settlement charge of
$35 million, net of tax, related to CenterPoint Energy pension
plan’s purchase of a group annuity contract in December 2022 to
transfer benefit obligations of CenterPoint Energy’s previously
divested business to an insurance company.
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, 2022
Dollars in millions
Diluted EPS (1)
Consolidated income (loss) available to
common shareholders and diluted EPS
$
1,008
$
1.59
ZENS-related mark-to-market (gains)
losses:
Equity securities (net of taxes of $66)
(2)(3)
247
0.39
Indexed debt securities (net of taxes of
$68) (2)
(256
)
(0.40
)
Midstream-related earnings (net of
taxes of $2) (2)(4)
(46
)
(0.07
)
Impacts associated with mergers and
divestitures (net of taxes of $165) (2)(5)
(80
)
(0.13
)
Consolidated on a non-GAAP
basis
$
873
$
1.38
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.
5)
Includes a settlement charge of
$35 million, net of tax, related to CenterPoint Energy pension
plan’s purchase of a group annuity contract in December 2022 to
transfer benefit obligations of CenterPoint Energy’s previously
divested businesses to an insurance company.
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
fiscal year ended December 31, 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 February 20, 2024, 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, 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, the pending sale of CenterPoint’s Natural Gas
businesses in Louisiana and Mississippi, 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, the 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,
sustainability 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, joint ventures and
acquisitions or dispositions of assets or businesses, including the
announced sale of our Natural Gas businesses in Louisiana and
Mississippi, and the completed sale of Energy Systems Group, LLC,
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, 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/20240219330792/en/
Media: Communications
Media.Relations@CenterPointEnergy.com
Investors: Jackie Richert / Ben Vallejo Phone
713.207.6500
CenterPoint Energy (NYSE:CNP)
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