CenterPoint Energy Reports Q2 Earnings and Provides Update on Hurricane Beryl Action Plan for Improved Emergency Response
CenterPoint Energy (NYSE: CNP) reported Q2 2024 earnings and reaffirmed its 2024 guidance. The company earned $228 million (GAAP) and $234 million (non-GAAP), both equating to $0.36 per diluted share. CenterPoint also unveiled its Hurricane Beryl Action Plan, focusing on three key areas: Resiliency Investments, Best-in-Class Customer Communications, and Strengthened Partnerships. The plan aims to improve emergency preparedness, response, and customer communications. Initiatives include accelerating grid hardening, doubling vegetation management crews, launching a new outage tracker, and hiring an emergency response leader.
CenterPoint Energy (NYSE: CNP) ha riportato i risultati del secondo trimestre 2024 e ha confermato le previsioni per il 2024. L'azienda ha guadagnato 228 milioni di dollari (GAAP) e 234 milioni di dollari (non-GAAP), entrambi equivalenti a 0,36 dollari per azione diluita. CenterPoint ha anche svelato il suo Piano d'Azione per l'Uragano Beryl, concentrandosi su tre aree chiave: Investimenti nella Resilienza, Comunicazioni con i Clienti di Eccellenza e Partnership Rafforzate. Il piano mira a migliorare la preparazione per le emergenze, la risposta e le comunicazioni con i clienti. Le iniziative includono l'accelerazione del rinforzo della rete, il raddoppio delle squadre per la gestione della vegetazione, il lancio di un nuovo tracker delle interruzioni e l'assunzione di un leader per la risposta alle emergenze.
CenterPoint Energy (NYSE: CNP) reportó las ganancias del segundo trimestre de 2024 y reafirmó su guía para 2024. La empresa ganó 228 millones de dólares (GAAP) y 234 millones de dólares (non-GAAP), ambos equivalentes a 0.36 dólares por acción diluida. CenterPoint también presentó su Plan de Acción para el Huracán Beryl, centrado en tres áreas clave: Inversiones en Resiliencia, Comunicación con Clientes de Clase Mundial y Asociaciones Fortalecidas. El plan tiene como objetivo mejorar la preparación para emergencias, la respuesta y las comunicaciones con los clientes. Las iniciativas incluyen acelerar el fortalecimiento de la red, duplicar los equipos de gestión de vegetación, lanzar un nuevo rastreador de interrupciones y contratar a un líder en respuesta a emergencias.
센터포인트 에너지(뉴욕 증권 거래소: CNP)가 2024년 2분기 실적을 발표하고 2024년 전망을 재확인했습니다. 회사는 2억 2800만 달러(GAAP) 및 2억 3400만 달러(non-GAAP)를 기록하며, 이는 희석 주당 0.36달러에 해당합니다. 센터포인트는 또한 허리케인 베릴 행동 계획을 공개하며, 회복력 투자, 최고 수준의 고객 커뮤니케이션, 강화된 파트너십 등 세 가지 주요 영역에 집중했습니다. 이 계획은 비상 준비, 대응 및 고객 커뮤니케이션을 개선하는 것을 목표로 합니다. 이니셔티브에는 전력망 강화 가속화, 식생 관리 팀 두 배로 늘리기, 새로운 정전 추적기 출시 및 비상 대응 리더 채용이 포함됩니다.
CenterPoint Energy (NYSE: CNP) a annoncé ses résultats pour le deuxième trimestre 2024 et a réaffirmé ses prévisions pour 2024. L'entreprise a gagné 228 millions de dollars (GAAP) et 234 millions de dollars (non-GAAP), soit 0,36 dollar par action diluée. CenterPoint a également dévoilé son Plan d'Action pour l'Ouragan Beryl, se concentrant sur trois domaines clés : Investissements en Résilience, Communications Clients de Classe Mondiale et Partenariats Renforcés. Le plan vise à améliorer la préparation aux situations d'urgence, la réponse et les communications avec les clients. Les initiatives incluent l'accélération du renforcement du réseau, le doublement des équipes de gestion de la végétation, le lancement d'un nouveau traqueur de pannes et l'embauche d'un responsable de la réponse aux urgences.
CenterPoint Energy (NYSE: CNP) hat die Ergebnisse für das zweite Quartal 2024 bekannt gegeben und seine Prognose für 2024 bekräftigt. Das Unternehmen erzielte einen Gewinn von 228 Millionen Dollar (GAAP) und 234 Millionen Dollar (non-GAAP), was jeweils 0,36 Dollar pro verwässerter Aktie entspricht. CenterPoint stellte auch seinen Aktionsplan für den Hurrikan Beryl vor, der sich auf drei Schlüsselbereiche konzentriert: Resilienz-Investitionen, Beste Kundenkommunikation und Gestärkte Partnerschaften. Der Plan zielt darauf ab, die Notfallvorsorge, die Reaktion und die Kundenkommunikation zu verbessern. Zu den Initiativen gehören die Beschleunigung der Netzstärkung, die Verdopplung der Vegetationsmanagement-Teams, die Einführung eines neuen Stromausfall-Trackers und die Einstellung eines Leiters für die Notfallreaktion.
- Reaffirmed 2024 earnings guidance, indicating financial stability
- Implemented Hurricane Beryl Action Plan to improve emergency response and customer service
- Investing in grid resiliency and advanced technologies for faster restoration
- Launching new customer-oriented outage tracker for better communication during storms
- Hiring emergency response leader to enhance planning capabilities and community partnerships
- Potential increased expenses due to accelerated grid hardening and expanded vegetation management
Insights
CenterPoint Energy's Q2 2024 results and Hurricane Beryl response plan present a mixed picture for investors. The company reported
The company's focus on improving its emergency response and grid resilience is a positive long-term strategy. Investments in infrastructure hardening, vegetation management and advanced technologies could lead to reduced outages and maintenance costs over time. However, these initiatives will likely require substantial capital expenditure in the short term, potentially impacting near-term profitability.
The reaffirmation of 2024 earnings guidance suggests management's confidence in the company's financial trajectory. However, investors should note that the non-GAAP EPS guidance excludes several factors, including potential gains or losses from asset sales and changes in the value of certain financial instruments. This exclusion may not provide a complete picture of the company's financial health.
Overall, while CenterPoint's proactive approach to grid resilience is commendable, investors should closely monitor how these initiatives impact the company's capital structure and return on invested capital in the coming quarters.
CenterPoint Energy's response to Hurricane Beryl marks a significant shift in the utility's approach to emergency preparedness. The three-pronged strategy focusing on resiliency investments, customer communications and strengthened partnerships aligns with industry best practices and regulatory expectations.
The acceleration of grid hardening efforts, including the adoption of latest construction standards and retrofitting existing assets, is important in a region prone to severe weather events. The nearly doubling of vegetation management crews is a particularly noteworthy move, as it addresses the primary cause of outages during storms.
The planned launch of a new outage tracker by August 1st demonstrates CenterPoint's commitment to improving customer experience during crises. This is a critical area where many utilities have faced criticism and success here could enhance customer satisfaction and potentially reduce regulatory scrutiny.
The hiring of a seasoned emergency response leader signals a strategic investment in expertise. This move, coupled with efforts to develop community partnerships, could significantly improve the company's ability to respond effectively to future emergencies and support vulnerable communities.
While these initiatives are likely to incur substantial costs in the short term, they position CenterPoint favorably for long-term operational efficiency and regulatory compliance. Investors should view these efforts as necessary investments in the utility's future resilience and customer relations.
“We are privileged to serve one of the most dynamic cities in
CenterPoint’s mission is building and operating the most resilient coastal grid anywhere in the country with best-in-class communications. The company’s plan, which was submitted to the Public Utility Commission of
- Resiliency Investments: By accelerating adoption of the latest construction standards, retrofitting existing assets on an accelerated basis, and using predictive modeling, AI and other advanced technologies, CenterPoint will harden its distribution system and speed restoration. The company will also take action to protect its electrical assets by nearly doubling the size of its vegetation management crews and targeting higher risk vegetation to address the number one cause of damage and outages in Hurricane Beryl.
- Best-in-Class Customer Communications: To ensure customers have the information they need when they need it, CenterPoint will launch a new and more customer-oriented outage tracker by August 1. This online tool will provide better and more complete information during storms and is designed to handle increased demand during such events.
- Strengthened Partnerships: Effective emergency preparedness and response requires close coordination with government officials. CenterPoint will hire a seasoned emergency response leader to help the company rapidly accelerate its planning capabilities and develop close community partnerships to ease the burden of storm events on more vulnerable communities.
“We have already begun implementing solutions to improve customer outcomes, but we have more work to do. We will be taking further steps as we continue to learn from engagement with customers, community stakeholders and regulators, as well as complete broader after-action reviews,” said Wells.
CenterPoint reported income available to common shareholders of
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; 2024 non-GAAP EPS guidance range
-
2023 and 2024 non-GAAP EPS and 2024 non-GAAP EPS guidance excludes:
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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 andMississippi natural gas local distribution company (“LDC”) businesses.
-
Earnings or losses from the change in value of CenterPoint’s
In providing 2023 and 2024 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 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
|
||||||
|
Dollars in
|
|
Diluted EPS(1) |
||||
Consolidated income (loss) available to common shareholders and diluted EPS |
$ |
228 |
|
|
$ |
0.36 |
|
|
|
|
|
||||
ZENS-related mark-to-market (gains) losses: |
|
|
|
||||
Equity securities (net of taxes of |
|
(15 |
) |
|
|
(0.02 |
) |
Indexed debt securities (net of taxes of |
|
15 |
|
|
|
0.02 |
|
|
|
|
|
||||
Impacts associated with mergers and divestitures (net of taxes of |
|
6 |
|
|
|
0.01 |
|
|
|
|
|
||||
Consolidated on a non-GAAP basis (4) |
$ |
234 |
|
|
$ |
0.36 |
|
| 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
|
Quarter Ended
|
||||||
|
Dollars in
|
|
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 |
|
25 |
|
|
|
0.04 |
|
Indexed debt securities (net of taxes of |
|
(27 |
) |
|
|
(0.04 |
) |
|
|
|
|
||||
Impacts associated with mergers and divestitures (net of taxes of |
|
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, 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 |
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| 5) | The calculation on a per-share basis may not add down due to rounding. |
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, 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 July 30, 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
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 hurricane preparedness and response initial action plan, 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 transmission and distribution system resiliency plan filed by Houston Electric with the Public Utility Commission of
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) CenterPoint’s business strategies and strategic initiatives, restructurings, joint ventures and acquisitions or dispositions of assets or businesses, including the announced sale of our
View source version on businesswire.com: https://www.businesswire.com/news/home/20240730115645/en/
Media:
Communications
Media.Relations@CenterPointEnergy.com
Investors:
Jackie Richert / Ben Vallejo
713.207.6500
Source: CenterPoint Energy, Inc.
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