CenterPoint Energy (CNP) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income available to common shareholders was $228 million (GAAP) and $234 million (non-GAAP), or $0.36 per diluted share on both bases, up from $106 million (GAAP) and $178 million (non-GAAP), or $0.17 and $0.28 per share, in Q2 2023.

• Reaffirmed 2024 non-GAAP EPS guidance of $1.61-$1.63, targeting 8% growth, and long-term non-GAAP EPS and dividend growth at mid to high end of 6%-8% annually through 2030.

• Responded to Hurricane Beryl with rapid restoration, system hardening, and comprehensive resiliency and emergency response initiatives, including enhanced customer communications.

• Pending sale of Louisiana and Mississippi natural gas LDC businesses for $1.2 billion, expected to close in Q1 2025, with proceeds to fund Houston Electric investments.

• Maintained focus on customer affordability, balance sheet strength, and robust capital investment plan.

Financial highlights

• Q2 2024 GAAP and non-GAAP EPS were $0.36, up from $0.28 (non-GAAP) and $0.17 (GAAP) in Q2 2023.

• Q2 2024 net income available to common shareholders was $228 million (GAAP), up from $106 million in Q2 2023.

• Growth and rate recovery contributed $0.10 to earnings, mainly from updated customer rates and interim rates in Minnesota Gas.

• O&M was $0.02 favorable due to expense timing and storm-related activity shifts; delivered 2% average annual O&M reduction since 2020.

• Q2 2024 revenues were $1.91 billion, up from $1.88 billion in Q2 2023; operating income was $467 million, up from $380 million.

Outlook and guidance

• Full-year 2024 non-GAAP EPS guidance of $1.61-$1.63 reaffirmed, excluding ZENS-related gains/losses and merger/divestiture impacts.

• Long-term non-GAAP EPS and dividend growth expected at mid to high end of 6%-8% range through 2030.

• Capital investment target of $3.7 billion for 2024 maintained, with a 5-year plan of $21.3 billion and 10-year plan of $44.5 billion.

• Guidance considers customer growth, weather, capital recovery, tax rates, and regulatory outcomes.

• No change to guidance following May and July 2024 storm events; storm costs estimated at $1.6B–$1.8B to be financed via securitization.