CenterPoint Energy (CNP) Q2 2024 earnings summary

Executive summary

• Q2 2024 non-GAAP EPS was $0.36, up from $0.28 in Q2 2023, with GAAP net income of $228 million and non-GAAP net income of $234 million, reflecting strong Electric and Natural Gas segment performance and customer growth.

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

• Net income available to common shareholders rose to $228 million for Q2 2024, up $122 million year-over-year, and $578 million for the first half, up $159 million year-over-year.

• Major storm events in May and Hurricane Beryl in July 2024 caused outages for over 2 million customers and restoration costs estimated at $1.6-$1.8 billion, with rapid restoration and resiliency plans launched.

• Sale of Louisiana and Mississippi Gas LDCs for $1.2 billion is progressing, expected to close in Q1 2025, with proceeds supporting capital plans.

Financial highlights

• Q2 2024 revenues were $1.91 billion, up from $1.88 billion in Q2 2023; Q2 net income available to common shareholders was $228 million ($0.36 per diluted share), up from $106 million ($0.17) in Q2 2023.

• Growth and rate recovery contributed $0.10 to earnings, with O&M $0.02 favorable and weather/usage $0.01 unfavorable; interest expense was $0.06 unfavorable.

• FFO/Debt (Moody's) at 13.3% for Q2 2024 TTM; S&P FFO/Debt at 12.5%; long-term target of 14-15% through 2030.

• Delivered 2% average annual O&M reduction since 2020.

• Cash flow from operations for the first half was $1.11 billion; capital expenditures were $1.66 billion.

Outlook and guidance

• Full-year 2024 non-GAAP EPS guidance of $1.61-$1.63 reaffirmed, excluding ZENS-related impacts and effects from mergers/divestitures.

• Targeting 8% non-GAAP EPS growth in 2024 and 6-8% annually through 2030, with dividend per share growth expected to align.

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

• Storm costs of $1.6-$1.8 billion from 2024 events to be financed via securitization, with filings expected by mid-2025.

• Pending regulatory approvals for storm cost recovery and rate cases in multiple jurisdictions.