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CenterPoint Energy 8-K Report, Financial Results (Oct 28, 2024)

Reports
Earnings & Results·Regulation FD·Exhibits & Filings
Filing Date
Filed October 28, 2024
Period End
October 28, 2024
Security
CNP
In the record · 2016–202610-K1110-Q348-K241

CNP filed 11 annual reports (10-K), 34 quarterly reports (10-Q) and 241 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Feb ’19Feb ’19
  2. Leadership change8-K · Sep ’20Sep ’20
  3. Leadership change8-K · Jan ’23Jan ’23
  4. Material agreement8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed October 28, 2024. Cited figures are marked; the original filing is the authoritative source.

CenterPoint Energy (CNP) reported third quarter 2024 results on October 28, 2024, with GAAP income available to common shareholders of $193 milliona, or $0.30 per diluted share, and non-GAAP EPS of $0.31, down $0.09 from $0.40 in Q3 2023.

The decline was driven mainly by $0.11b per share of higher operating and maintenance expense from accelerated activity under Phase I of the Greater Houston Resiliency Initiative (GHRI). Growth and regulatory recovery added $0.09 per share, partly offset by Hurricane Beryl outage-related usage (-$0.02) and unfavorable weather at Houston Electric (-$0.04). Management reiterated 2024 non-GAAP EPS guidance of $1.61-$1.63, about 8% growth over 2023 at the midpoint, and initiated 2025 non-GAAP EPS guidance of $1.74-$1.76, roughly 8% growth at the midpoint, while maintaining a mid-to-high end 6%-8% annual non-GAAP EPS growth target through 2030.

The company also raised its 10-year capital plan (2021A-2030E) from $44.5 billion to $47 billionc, adding $2.5 billion for incremental Houston Electric resiliency investments, and increased its equity or equity-like issuance plan by $1.25 billion to a total of $2.5 billion through 2030. Credit metrics were a focal point: trailing-twelve-month FFO/Debt on Moody's adjusted basis was 13.8% (versus a 14%-15% long-term target through 2030), and ratings carry negative outlooks at all three agencies. Liquidity was approximately $3 billion, and the pending sale of Louisiana and Mississippi gas LDCs (gross proceeds about $1.2 billion, expected to close by end of Q1 2025) remains an important funding lever.

For investors, the key tension is between a solid long-term growth framework and near-term earnings pressure from elevated resiliency spending, combined with a larger equity need and a thin cushion on credit metrics. Execution on GHRI cost management, securitization timing, and rate case outcomes will be central to whether the 2025 guidance and 2030 growth targets hold.

02—Key points

Key Highlights

  1. Q3 2024 GAAP EPS of $0.30 and non-GAAP EPS of $0.31, versus $0.40 in Q3 2023 (down $0.09), mainly from $0.11 per share of higher O&M tied to accelerated GHRI Phase I activity.
  2. Reiterated 2024 non-GAAP EPS guidance of $1.61-$1.63 (about 8% growth at midpoint); roughly 75% of the midpoint achieved year-to-date.
  3. Initiated 2025 non-GAAP EPS guidance of $1.74-$1.76, about 8% growth at the midpoint, and reaffirmed a 6%-8% annual non-GAAP EPS growth target through 2030.
  4. Increased the 10-year capital plan from $44.5 billion to $47 billion, including $2.5 billion of incremental Houston Electric resiliency investment.
  5. Raised the equity or equity-like issuance plan by $1.25 billion to $2.5 billion through 2030 to fund incremental capital.
  6. TTM Q3 2024 FFO/Debt (Moody's, adjusted for one-time items) of 13.8%, below the 14%-15% long-term target; all three agencies carry negative outlooks.
  7. Louisiana and Mississippi gas LDC sale: gross price about $1.2 billion, net about $1.0 billion, expected to close by end of Q1 2025; liquidity approximately $3 billion.

03—Questions

Frequently Asked Questions

  1. Why did CenterPoint's non-GAAP EPS decline year over year in Q3 2024?

    Non-GAAP EPS fell $0.09 to $0.31 mainly because operating and maintenance expense rose $0.11 per share from accelerated Greater Houston Resiliency Initiative activity. Growth and rate recovery added $0.09 per share, but Hurricane Beryl outages (-$0.02) and unfavorable weather at Houston Electric (-$0.04) offset part of that gain.

  2. Is CenterPoint still on track to meet its 2024 earnings guidance?

    Management reiterated 2024 non-GAAP EPS guidance of $1.61-$1.63 and said about 75% of the midpoint had been achieved year-to-date. Results depend on assumptions such as normal weather, customer growth, and usage, so the guidance may not be met if those deviate.

  3. What does the 2025 guidance imply for investors?

    The initial 2025 non-GAAP EPS range of $1.74-$1.76 implies about 8% growth at the midpoint over 2024. Together with the reaffirmed 6%-8% annual growth target through 2030, it signals management expects steady earnings growth despite heavier resiliency spending.

  4. Why are credit metrics and equity issuance a concern?

    TTM FFO/Debt of 13.8% is below the company's 14%-15% long-term target, and all three rating agencies have negative outlooks. Management raised its planned equity or equity-like issuance by $1.25 billion to $2.5 billion through 2030 to fund a larger $47 billion capital plan, which could dilute existing shareholders if not offset by earnings growth.

  5. How is CenterPoint funding its expanded capital plan?

    The plan relies on asset recycling (including the roughly $1.2 billion gross Louisiana and Mississippi LDC sale), securitization proceeds (about $1.6 billion across two filings per the investor update), and equity or equity-like instruments. Management also cited about $3 billion of available liquidity as of the report date.

04—Continue

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