CENTERPOINT ENERGY INC Q1 FY2025 earnings call

1. First quarter financial results: Non-GAAP EPS was $0.53, with reaffirmation of 2025 non-GAAP EPS guidance range of $1.74 to $1.76, expecting 8% growth from 2024 non-GAAP EPS of $1.62. 2. Hurricane season preparations: By June 1, will double grid automation devices, replace 26,000 wind-resistant poles, and trim/remove over 6,000 miles of high-risk vegetation. 3. Regulatory progress: Updates on rate cases, filing for temporary generation units (aiming for average residential monthly savings up to $2), refiling system resiliency plan informed by stakeholder feedback, and upcoming storm cost recovery filing for Hurricane Barrel and others. 4. Load growth: Houston Electric service territory has significant load growth driving a $1 billion increase to capital investment plan through 2030, with various transmission and other investment opportunities.

No detailed breakdown of product segment financial performance and revenue contributions provided in the transcript.

1. Reaffirmed 2025 non-GAAP EPS guidance range of $1.74 to $1.76, expecting 8% growth at midpoint from 2024 non-GAAP EPS. 2. Long-term expectation of growing non-GAAP EPS at mid to high end of 6%-8% range annually through 2030. 3. Capital investment plan increased by $1 billion to $48.5 billion through 2030, with incremental projects to be filed with ERCOT regional planning group and more comprehensive update in third quarter.

1. Regulatory lag concerns that could impact achieving guidance. 2. Uncertainty around Texas voltage standard policy affecting electric transmission CapEx. 3. General economic and tariff risks, though Texas economy is seen as resilient.

Q: How should we think about the cadence of CapEx updates as we get to 3Q roll forward?

A: Jason Wells mentioned they have a history of updating CapEx guidance with incremental data points, with updates in the quarter reflecting nearly a dozen projects filing with ERCOT, additional projects later summer, and a comprehensive update in third quarter.

Q: Can you clarify the various pieces of the $3 billion additional capital opportunities?

A: Jason Wells discussed over $2 billion incremental electric transmission CapEx upside, at least $1 billion gas transmission (high-pressure distribution network), and additional CapEx drivers including system resiliency in later decade, Indiana projects, and continued growth in Texas market.

Q: Thoughts on tariff concerns and recession risk?

A: Jason Wells and Chris Foster noted low tariff cost exposure due to domestic sourcing and minimal federal policy impact, with Texas economy seen as resilient with diversified activity.

Q: Confidence in load growth forecast?

A: Jason Wells stated they took a conservative approach, with load interconnection request up to 47 gigawatts, and 10 gigawatts expected to materialize by 2031, citing ongoing connections and high-profile manufacturing announcements driving growth.

Q: Commentary on FFO to debt and rating agencies?

A: Chris Foster mentioned progress on FFO to debt, with securitization of storm costs on track, and focus on year-end completing hurricane barrel related recovery process for rating agency comfort.