10-KPeriod: FY2024

CENTERPOINT ENERGY INC Annual Report, Year Ended Dec 31, 2024

Filed February 20, 2025For Securities:CNP

Summary

CenterPoint Energy, Inc. (CNP) reported a strong financial performance in its 2024 Form 10-K, with total income available to common shareholders reaching $1,019 million, a significant increase from $867 million in 2023. This growth was driven by improved results across both the Electric and Natural Gas segments, as well as a substantial turnaround in the "Corporate and Other" segment, largely due to the absence of prior-year divestiture-related charges and preferred stock redemption costs. The company is executing a robust capital plan, projecting nearly $47.5 billion in investments through 2030 focused on system resiliency, reliability, and grid modernization. Despite ongoing regulatory processes and investments in infrastructure, CenterPoint Energy demonstrates a commitment to shareholder returns through dividends and prudent financial management, supported by strong credit ratings.

Financial Highlights

49 data points
Beta

Revenue

$8.64B

100.0% Gross Margin

Net Income

$1.02B

11.8% Net Margin

EPS (Diluted)

$1.58

Total Assets

$43.77B

Cash & Equivalents

$24.00M

Free Cash Flow

-$2.37B

Financial Statements
Beta
Revenue$8.64B
Cost of Revenue$3.00M
Gross Profit$8.64B
Operating Expenses$6.65B
Operating Income$1.99B
Net Income$1.02B
EPS (Basic)$1.58
EPS (Diluted)$1.58
Shares Outstanding (Basic)643.16M
Shares Outstanding (Diluted)644.14M

Key Highlights

  • 1Net income available to common shareholders increased by $152 million to $1,019 million in 2024.
  • 2The company's ten-year capital plan has been increased to nearly $47.5 billion through 2030, focusing on system resiliency, reliability, and grid modernization.
  • 3Houston Electric experienced significant storm restoration costs related to Hurricane Beryl, estimated at $1.1 billion.
  • 4CenterPoint Energy continues to execute on its net-zero emissions goals, targeting Scope 1 and certain Scope 2 emissions by 2035.
  • 5The sale of Louisiana and Mississippi natural gas LDC businesses is expected to close in the first quarter of 2025, with a purchase price of $1.2 billion.
  • 6CenterPoint Energy successfully managed its debt, with significant issuances and repayments throughout 2024, maintaining investment-grade credit ratings.
  • 7The company experienced a significant increase in operational income for its Electric segment due to customer rate increases and transmission revenue improvements.

Frequently Asked Questions

CenterPoint Energy's net income available to common shareholders increased by $152 million to $1,019 million in 2024. This improvement was driven by higher income from both the Electric segment ($17 million increase) and the Natural Gas segment ($31 million increase), as well as a significant positive swing in the 'Corporate and Other' segment, primarily due to the absence of prior-year charges related to divestitures and preferred stock redemptions.

The company plans to fund its capital investments through a combination of internally generated cash, borrowings under its credit facilities, proceeds from commercial paper, cash proceeds from strategic transactions (including the proposed sale of its Louisiana and Mississippi natural gas LDC businesses), and issuances of equity and debt in the capital markets. This multi-faceted approach aims to ensure sufficient liquidity and capital access on acceptable terms.

Key risks and challenges include potential disruptions from extreme weather events (such as Hurricane Beryl and the May 2024 storm events, which resulted in significant storm restoration costs), regulatory rate lag, environmental regulations, cybersecurity threats, interest rate fluctuations, and supply chain disruptions. The company also faces risks associated with its capital plan execution, the sale of its Louisiana and Mississippi natural gas LDC businesses, and potential changes in federal energy and environmental policies.

CenterPoint Energy, through its subsidiary CERC Corp., entered into an asset purchase agreement to sell its Louisiana and Mississippi natural gas LDC businesses for $1.2 billion. The transaction has received approval from the Mississippi and Louisiana Public Service Commissions and is expected to close in the first quarter of 2025, subject to customary closing conditions.