Loading...
•
Mar 31, 2020
CenterPoint Energy Q1 2020 Earnings Report
CenterPoint Energy reported a loss for Q1 2020 due to impairment charges, but utility operations and midstream investments showed earnings on a guidance basis.
Key Takeaways
CenterPoint Energy reported a significant loss in Q1 2020, driven by after-tax non-cash impairment charges. However, the company's utility operations and midstream investments demonstrated earnings on a guidance basis, excluding these charges. The company reaffirms its 2020 Utility EPS guidance.
CenterPoint Energy reported a loss of $2.44 per diluted share, or $1,228 million, for the first quarter of 2020.
Recognized $1,568 million in after-tax non-cash impairment charges and losses on assets held for sale.
On a guidance basis, Q1 2020 earnings were $0.50 per diluted share from utility operations and $0.10 per diluted share from midstream investments, excluding impairment charges.
Reiterated 2020 Utility EPS guidance range of $1.10 - $1.20 and 5 - 7% Utility EPS CAGR, inclusive of anticipated COVID-19 impacts.
Forward Guidance
CenterPoint Energy provided 2020 guidance with two components: a guidance basis Utility EPS range and a Midstream Investments EPS expected range.
Positive Outlook
- Reiterated 2020 guidance basis Utility EPS range of $1.10 - $1.20.
- Target 2020-2024 compound annual guidance basis Utility EPS growth of 5 - 7%, using the 2020 range of $1.10 - $1.20 as the starting EPS, assuming the COVID-19 scenario described below.
- Utility EPS guidance range includes net income from Houston Electric, Indiana Electric and Natural Gas Distribution segments, as well as after tax operating income from the Corporate and Other segment.
- The 2020 Utility EPS guidance range considers operations performance to date and assumptions for certain significant variables that may impact earnings, such as customer growth (approximately 2% for electric operations and 1% for natural gas distribution) and usage including normal weather, throughput, recovery of capital invested through rate cases and other rate filings, effective tax rates, financing activities and related interest rates, regulatory and judicial proceedings, anticipated cost savings as a result of the merger and reflects dilution and earnings as if the newly issued preferred stock were issued as common stock.
- The 2020 Midstream Investments EPS expected range assumes a 53.7 percent limited partner ownership interest in Enable and includes the amortization of the Company’s basis differential in Enable and assumes an allocation of CenterPoint Energy corporate overhead based upon Midstream Investments relative earnings contribution.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...