CENTERPOINT ENERGY INC Q4 FY2024 earnings call

• Financial Results: Non-GAAP EPS for Q4 2024 was $0.40 and full year 2024 was $1.62, with 8% growth over 2023. Reaffirmed 2025 non-GAAP EPS guidance $1.74-$1.76.
• Regulatory Update: Houston Electric refiled a $5.75B system resiliency plan from 2026-2028; Indiana Electric rate case final order approved; Minnesota Gas rate case reached an all-party settlement; Ohio Gas rate case filed with a $99.5M revenue requirement increase.
• Temporary Generation Transaction: Proposed to transfer units to a Texas Pier utility for San Antonio peak reliability, expecting revenue from marketing units after the period in San Antonio.
• Growth in Texas: Significant electric demand growth in Houston area, submitted load forecast to ERCOT reflecting expected load increase in the Greater Houston region.

For the fourth quarter of 2024, non-GAAP EPS was $0.40. For the full year 2024, non-GAAP EPS was $1.62, which is an 8% growth over 2023 actual results. The 2025 non-GAAP EPS guidance range is $1.74 to $1.76, representing an 8% growth at the midpoint from the 2024 delivered non-GAAP EPS of $1.62. Over the long term, CenterPoint expects to grow non-GAAP EPS at the mid- to high end of the 6% to 8% range annually through 2030.

• Reaffirmed 2025 non-GAAP EPS guidance range of $1.74 to $1.76, with midpoint 8% growth from 2024 non-GAAP EPS.
• Updated capital investment target to $47.5B through 2030, with a $500M incremental CapEx, driving 10% rate base growth through the end of the decade.
• Long-term expectation of growing non-GAAP EPS at mid- to high end of 6%-8% annually through 2030.

• Regulatory uncertainties related to rate cases and system resiliency plan approvals.
• Weather impacts on system operations and potential costs.
• Market fluctuations affecting the marketing of temporary generation units after their use in San Antonio.

Q: Can you compare the growth forecast to what ERCOT used last year and discuss the transmission decision impact?

A: Last year's ERCOT focus was outside Greater Houston; this year's filing reflects a 10 gigawatt increase. Transmission CapEx will depend on voltage standard decision, likely driving at least $3B in additional electric transmission CapEx.

Q: Any update on rating agency views?

A: Constructive Texas regulatory environment, Houston Electric rate case certainty, and securitization progress are key factors; rating agencies are watching these areas.

Q: Update on Analyst Day timing and capital plan inclusion of load growth?

A: Committed to update 10-year capital plan this year, incorporating voltage standard decision; will share more details later this year.

Q: Details on cost control program and O&M reduction levers?

A: Aggressive vegetation management cycle, standardization of legacy systems, and empowering frontline workers to reduce O&M by 1%-2% annually.

Q: Mobile generation conversation with regulators and legislative session impact?

A: Dialogue ongoing with stakeholders; Senate Bill 6 on large load and transmission charges is being monitored for constructive outcome.

Q: Breakdown of temporary generation financials and load growth outlook?

A: Temporary generation equipment has doubled in market value, with potential cash flow tailwind; load growth requests are significant but some are exploratory, with 10 gigawatts as most realistic estimate for Greater Houston by 2031.

Q: Store recoveries and storm filing expectations?

A: Filing for Hurricane Beryl costs in 2Q, with expectation of similar resolution to prior storm arrangements, driven by mutual aid and timely restoration efforts