CenterPoint Energy, Inc. Q2 FY2025 earnings call

Key points include: Second quarter financial results with non-GAAP EPS of $0.29. Strong load growth in the Houston Electric Service territory driven by diverse economic drivers like data centers, advanced manufacturing, etc. Proposed sale of Ohio gas LDC to recycle proceeds for Texas businesses. A $500 million increase to the 2025 capital investment plan, now totaling $5.5 billion. Regulatory progress including a proposed settlement in the Ohio gas rate case and a system resiliency plan filing for Houston Electric with proposed investments of ~$3.2 billion over 3 years. Progress on capital investment plan execution and financing of capital investments without incremental common equity.

CenterPoint Energy reported a non-GAAP EPS of $0.29 for the second quarter of 2025. The Houston Electric Service territory is experiencing strong load growth, with a forecasted peak load increase of 10 gigawatts by 2031. The company announced the proposed sale of its Ohio gas LDC and a $500 million increase to its capital investment plan, bringing the total to $5.5 billion.

Reaffirmed 2025 non-GAAP EPS guidance range of $1.74 to $1.76, which is an 8% earnings growth at the midpoint from 2024's non-GAAP EPS of $1.62. Long-term, expects non-GAAP EPS at the mid- to high end of the 6% to 8% range annually through 2030 and expects dividends per share to grow in line with earnings growth.

Regulatory uncertainties related to rate cases and cost recovery proceedings. Potential challenges in executing the sale of the Ohio gas LDC. Impacts of external factors on load growth and capital investment needs.

Q: Julien Dumoulin Smith from Jefferies asked about the timeline for Hurricane Beryl and the 6 gigawatts load growth.

A: Christopher Foster mentioned ongoing mediated sessions for Beryl and Jason Wells discussed the diverse drivers of the 6 gigawatts load growth (~2/3 from data centers, ~1/3 from other sectors) and timing around 2026-2028.

Q: Nick Campanella from Barclays asked about capital and funding.

A: Jason Wells and Christopher Foster discussed upward bias in capital expenditures, ability to fund without additional equity, and the upcoming 10-year plan refresh.

Q: Jeremy Tonet from JPMorgan Securities asked about interconnection impact and Houston revitalization.

A: Jason Wells said inbound interconnection interest not impacted and discussed Houston downtown project timing and spending.

Q: Andrew Weisel from Scotiabank asked about CapEx increase and Ohio gas LDC sale.

A: Jason Wells and Christopher Foster discussed CapEx increase potential and Ohio gas LDC sale timeline and details.

Q: Steve Fleishman from Wolfe Research asked about Ohio gas LDC sale timing and Indiana data centers.

A: Christopher Foster discussed Ohio gas LDC sale timing and Jason Wells talked about Indiana data center discussions.

Q: Bill Appicelli from UBS asked about equity.

A: Christopher Foster explained equity plan and derisking efforts.

Q: Anthony Crowdell from Mizuho asked about Ohio sale balance and operating cash flow.

A: Jason Wells discussed balancing Ohio sale with growth and explained 5% operating cash flow improvement.

Q: Paul Fremont from Ladenburg Thalmann & Co. asked about EPS guidance and rate base.

A: Jason Wells talked about plan refresh and Christopher Foster mentioned Ohio subsidiary rate base.