CenterPoint Energy (CNP) 27 Jul 232023 Q2 Earnings call transcript

Good morning, and welcome to the CenterPoint Energy's Second Quarter 2023 Earnings Conference Call with Senior Management.

During the company’s prepared remarks, all participants will be in a listen-only mode. There will be a question-and-answer session after management’s remarks. [Operator Instructions]

I will now turn the call over to Jackie Richert, Vice President of Corporate Planning, Investor Relations and Treasurer. Ms. Richert?

beliefs, conference projections will and forward-looking and any are to on earnings uncertainties. undertake that or certain statements and statements CenterPoint's currently based contain information will other filings our management’s could are to subject materials. We Actual call. management. statements. discuss Management topics that available Welcome to and These differ various revise based upon assumptions forward-looking SEC forward-looking risks as XX-Q, noted publicly other obligation or no update to factors, in results materially our Form earnings information

We as will non-GAAP When EPS non-GAAP EPS. non-GAAP consolidated per on the providing adjusted of today's a diluted earnings be call. discussing certain measure share use to guidance, referred we on measures basis

reconciliation use earnings and news announce website website. guidance, replay our non-GAAP methodology on used measures guidance access on to We providing release material can our Information This For is information the be website. please our our to found our being of the recorded. refer call on to how information. on and presentation in

I’d Now it to to like Dave. turn over

excited morning our announce Good you joining I'm everyone for that second exceeding thank quarter of call. earnings this to our is meeting quarter XXth XXXX consecutive us or and to expectations.

be a hit have up with what ground knew catch the running. Additionally, he by Chris most today's Chris has you the our executive to on already had I’m Foster, pleased to of is call I joined team. him. the newest opportunity management member high-quality of and know

him have officially to onboard. happy are We

main guidance. to is X, XXXX Jason Chris Headline my well as books will our overcoming of execute quarter tell the usual and time X,XXX in let today I and on we continues Since employees speakers our the have entire to another the providing for headwinds three limit story. CenterPoint fronts. reaffirming all team X, headlines of instead two, nearly Headline great at quarter the

came pressures EPS weather headwinds our non-GAAP the generally expense inflationary from overcoming $X.XX of $X.XX per headwinds quarter service per quarter. announced share milder interest and higher Other from We second this share territories throughout alone.

our growth Despite guidance year's This X% last growth of XXXX This actual non-GAAP these earnings share. $X.XX are both non-GAAP represents amount. we $X.XX X% to range over an per of and XXXX EPS headwinds, target reaffirming in XXXX. EPS follows

X, beyond. Headline for and long-term leading reaffirming industry XXXX growth

to growth in continue XXXX in non-GAAP We through annually X% of X% XXXX. X% EPS to mid the to and target high-end thereafter

total the on XXXX by capital our bringing We increasing the capital successfully year-to-date $X.X Headline anticipated X, billion. track. XX%. over This ahead plans is quarter, of deployed Headline to year. deployment for our spend capital XXXX X. is approximately our during $X.X billion of

the capital Let plan. me walk new you through

but formal Our capital of identified, we from capital our billion $X.X XX%. plan incremental billion prior Today, was $X billion spend with yet XX-year in increasing $X additional are increase plan. of included billion, capital an an over plan $XX not XXXX to our

through this billion. XXXX We $XX are any to execute without can plan formal we issuance. $XXX external With recover million our goes efficiently $XX.X and now confident fund, equity capital this, increase from billion

this $X.X As identify billion in of are in our confident we to identified, but remaining well $XX.X ability our the not billion, yet opportunities included now beyond capital to amount.

we As recover to are execute amounts will we capital we in these have our stated fund, incremental efficiently we add past, and to them. can continue the confident when plan

do, and stakeholders. always we we on of identify opportunities execute to As all will for constructive our continue

business benefit the bills. XXXX, our capital safety not additional be while capital Houston their in of resiliency impact spending forward. balancing additional for clear, this pulling is These Electric spending and future support the capital investments to So will for on customers

target. O&M remain reductions X, planned on Headline

over have by plan. outcomes in the X% a outcomes legislative a We to benefit Headline from our incentive on recent positive investment from of that to to on utility across Texas X, O&M now few DCRFs ability year, and comprehensive cost Indiana were territories. average for file compensation resiliency file current our number customers for path two X% There ability XX-year per years ability year to and reducing continue the name the just come. we a should to to recover legislation per To Texas, prudent plan. the focused a

Headline reliable to companies to Houston amazingly, in was States. region fastest of Houston because population metro was one-third outside and from growing XXXX, continue the XXXX, flock Houston, growth to and of its continues. area from the energy. U.S. in X, over People second partly Houston Houston's the growth And In area moving the affordable residents United

level or targeting Houston This Houston is will longer inflation continuing among at of inflation, charges or X% a at below keep Electric while X, resiliency fundamentals historical X% below customer increases term. of rate and the in Electric customer to utilities. the we the be to the unique over heavily historical safety, invest luxury aiming charge reliability, Headline

thank struck major this worked XX, Headline month. of earlier to XXXX. dedicated our be Southwestern our incredibly coal who power for customers. I renewables lower end employees provide by a the and affordable in Using that want to generation and tirelessly of by of to operating alternative Houston plan our carbon should we out generation a more was repair both system storms Indiana, series

legislative a all moment Also, and want that to constructive our take stakeholders thank to the Texas and outcomes. legislatures supported I Indiana

a reliability the all be our for We and are resiliency to the that of continues stakeholders. the grid of top priority grateful

investors. inflationary deliver unusual of both higher In summary, rates, our continue for customers of the the even midst to operational and in and weather, we and economic pressures headwinds interest

believe industry. quarter commitment another continued the to plan on of we XXXX of in just what is our executing tangible growth is The long-term most example second the

from let I take will now and here. Jason it Chris

Dave, you you morning quarter you, us and all of our Thank second call. joining thank for this for to

our our Southwest Indiana employees to who the Before response team greater to the of our privilege for in quarter, to serve. withstood the couldn't all echo I quickly to have get and I into weather my to prouder Dave's this of Houston communities want extreme commitment communities. we updates restore service be and I gratitude

the legislative at X. Slide Looking on summary

grateful We customer these numerous utility time are have sessions. the serve to the was with better legislatures recent on understand providing industries and legislative appreciative from issues state of spent our for electric additional gas that we focused resulting consider, outcomes our customers. to are tools and the We

grid to I in stated highlight that number There are believe of the one of Texas, progress we of was a front legislative the an certainly latest of In electric we and act improve made top on particular. bills. to good be session reliability, will want three that goals

the to transmission to ability and to plan the our rig file This utilities distribution-related the have broadly First, plan distribution Commission a and now resiliency recovery. of Utility taxes Public resiliency impacts of extreme with investment will electric to harden the allow cost to electric work plan outline better Texas multiyear for TDUs comprehensive address a transmission weather.

be TDUs grid desire a This of Additionally, legislators increased distribution grid other providing investments of helping such the to these electric costs, the interest new so. resiliency the builds carrying eligible will do stakeholders lag expense, and as demands and for on under minimize plants depreciation certain and light recovery. regulatory great deferral the of our recent illustration in and how the for

change Second, on capital recovery incremental recovery capital distribution-related we under regulatory not help provides This two lag year but smaller now year help investments the trackers twice keep for distribution DCRF and a per the able filings customers. a year. will parity transmission already investments file increases ability only we have of to bill to make mechanism. our of with smoother ability The or the also our reduce where distribution for are investments, two DCRFs of recovery file now recovery to the to will

help top we an service overwhelmingly outcome incentive customers better our to us other the that compensation be enacted certain able serve These to were related positive as now as for Lastly, the This that employees territory. continue to attract were bills serve CenterPoint. for well for Electric bills will and talent in customers. Houston recover customers our will

all involved to achieving want And express this. in I stakeholders also to appreciation

We power of the to economic area. achieve advancing focused with reliability of and while customer safety stakeholders will the work resiliency, the Houston Greater success helps the that continue to outcomes grid

this a utility want of that legislation piece to system. to a transmission and the opportunities its write attention to thank Southwestern Indiana. providing win legislature a want operate more Indiana One its utility I in utilities serve we connect allows interest those customers. I time Indiana for highlight Texas, such that a for to first allows respective is their of that to in in one of building to in that best regard a believe the Outside We customers, for to refusal advocate utility for this lines

Minnesota technologies the district and end gas projects as we approval years over shown green projects calendar, as of legislative hydrogen million Slide updates a carbon little natural a use cost X busy of Gas for we Gas, as on things of those the NGIA filed Natural under geothermal capture. Starting the renewable a X. projects. or and include first networked a such like $XXX to These addition well proposed energy for XX regulatory estimated In with pioneering Act, system an with Innovation had as number of

are of a future the in advance projects Minnesota. goal proposed cleaner energy These helping to designed with

customers opportunity constructive allows in environment We to the which that projects appreciative emission our the of to achieve continue their to be in targets. reduction Minnesota, assist invest us

to Indiana moving Electric. Now

We IRP. to continue to Resource XXXX make Plan, Integrated or progress related our good

Indiana approval of XXX several three During project we the approvals received quarter, wind including solar projects. Regulatory megawatt for reapproval Commission, from our and of the our Utility the

pipeline was the to CT Additionally, new serve was plant, year, fully gas FERC. earlier approved the this by which proceed month, authorized the will Gas that last

source approval sun we and showing service and CT gigawatt is the all contracting the an over blowing might begin have many IRP, and XXXX in XXX constitute placing you. we filings. reapproval now generation not might on be our anticipate nearly of These when provide days expected to not of filings renewable for within years few generation to the be additional megawatt received that X wind the gas instances, Related or in which the next

our our issued started in the was bonds retirement turn With related XXXX projects can providing the underway, to Brown coal customer already transaction the A.B. $XXX individual has form second attention benefits for IRP in securitization the we of We also of many This and we customers IRP now submitted of the approximately million bills. very a constructive our to to facility. quarter. credit related XXXX a of their on

retirement coal while existing solar, of filing balanced our reliable, more of This offering coal a is less that of by of as by addresses to our on end last and the operate and to our generation portfolio coal as path proposed to we plant our wind generation IRP of gas firmly us and facility cleaner, XXXX, converting cost a maintaining fleet. coal a at final and places third XXX fully customers our This exiting gas megawatts be generation new expected XXXX. megawatts XXX substantially than well solar adding proposes wind

to In the to compared IRP over of save a filing customers its is this years. the to customer-centric work the is next collaboration generation thoughtful we million months continued organization what nearly XX hard in This use approach entirety, Indiana. of is our culmination arrive Southwest $XX at transition anticipated to believe the and and of throughout coal

regulatory calendar the Slide shown to on X. on Moving

those have a of you filings. provide rate Gas. the the want filings with of brief case Texas regarding update of we to on know, Beginning many a I timing horizon. As number

have would changed file that filing. slightly this our expected We of had the we summer. communicated we Previously, timing

However, of a months, few will this year. likely November in filing for delay we this filing

forward stakeholders for all requirement look working flat to relatively constructive revenue continue and filing to with despite to outcome. the a We reach anticipate a delay

filing of likely Additionally, communicated fourth push year. we quarter Houston of Electric of will of to the our XXXX instead the this timing previously QX

DCRF the to time. and on continue end and filing of our the our track also quarter communicated Indiana until the we of relatively to fourth cases that will by We discipline time Filings, Texas year. remain and our Similarly, lines O&M we towards a TCOS anticipate this mechanisms service use requirement filing with both Minnesota supported previously respect flat revenue With Electric our throughout territory. growth

to the in want such how I found over innovation to incrementally and our initiative leaders updates, impacting a on reduce I've touch gas turn can just Before customers' of One to at with for moment while time, example experience. O&M, and the to I it Chris our same positively our business. the financial impressed been incremental take be

will to delivering identifying Earlier several to bill the This like O&M year, my is future benefit on our Those costs a faster. headwinds. this opportunities that customers focused in by opportunities also despite It completed X% leak in improvement finding updates reductions but freeing million we in to in review in continuous that reducing examples resulted dollars service management are confidence review get our reinforce increases, average continue this up activities. inflationary to crews annual for quarter. the X%

about our of excited our remain customers continued I for and investors. benefit our execution the

to continue customers support customer making and our on with throughout benefit and legislative various We focus stakeholders that investments outcomes to focused service working regulatory territories.

I turn with Chris will financial Now over that, updates. for it to the

Thanks, Jason, thanks of company. to call quarter second earnings as and our for first CFO you this all and joining of my XXXX great call

a settled investor residents. I've family while team, into certainly long-term the say coworkers, the much Although CenterPoint achieved, recent can here have enjoyed the a plan to community pleased more has representing the knowing I digging of still in only I'm as long-term recently we getting front and new Houston that very also that meeting my joined And are my of to I the see number of of team the us. really me with still set outcomes opportunities company

of focus. Today, cover three will I areas

a financing in floating then further transaction introduced, update, rate debt. And capital Energy positive our plan. progress, earnings our as Systems a our Group First, finally, to reduction revision including and Dave

the start results Slide with financial let's Now X. on

$X.XX full we $X.XX X% we XXXX are midpoint. per EPS $X.XX reaffirming year year EPS of over the our guidance growth full the a basis, using reported share $X.XX quarter On which mentioned, range of second XXXX. GAAP non-GAAP of for As earnings non-GAAP XXXX to reflects when of

quarter Our results non-GAAP business, non-regulated the results first now for divested Group. Systems the of removed EPS our Energy

compared tracker we by largely the our Growth recoveries in territory, full electric in which achieved midpoint. at the second our and Electric Houston $X.XX rates of of a reported XXXX On driven guidance for now electric to our non-GAAP contributed or DCRF $X.XX quarter, we year have $X.XX, second last our first continued of basis, quarter in tracker Combined transmission last with rate capital recovery the XXXX. through filed into quarter year went XX% TCOS the November.

trend annual we long-term $X.XX see growth was area, compared extending In the the continue of organic Houston average find operate the to quarter O&M and favorable in addition, to flat growth. X% when second strong for X% year-to-date X% to focused ways half reduction more remaining as we of needs. our by 'XX average, O&M first continue to the to on on meeting while to year efficiently customers' to per target X%

rising by offset continued last to $X.XX expense. unfavorability this quarter increase compared when were drivers favorable an second on These in interest short-term rate year. expense the for the interest was of borrowings driver The primary

which in exposure, continue to we more short-term rate progress I our make discuss will debt reducing However, detail shortly. floating in

temperatures same were combination QX both when during compared weather conservatism to us sufficient pressures. and to help to territories has year-over-year record-breaking compared plan XXXX, our believe this when ongoing April milder built XXXX sustained our We by year. and May Houston the and Electric overcome Weather Indiana usage in these in a driven the of quarter unfavorable $X.XX primarily of of

in trend this did mid-June. However, change Houston in

cover credit some related topics Slide I and on X. Next, financing

points downgrade to to of of continue in of the As XX% second focused cushion with Moody's basis and targeting FFO threshold balance strengthen we methodology, to to of through remain reported. this will XX% environment. target XXX debt the we quarter, as We rate as XXXX. our end XX% Essentially, opportunities sheet are sheet we was around on from rising the XX.X% balance the our aligning explore

XX% second at companies. XXXX. outstanding. to rate $XXX nearly our by quarter, debt In we proceeds We floating is to an Uri Winter floating issuances Another the through additional this reduction to billion Storm and relative the nearly well total floating of a reduction year-to-date rate term rate ended the debt. the receipt That's operating as to floating XX% reduced debt debt we've carried the in fixed which area reduced where rate into momentum we in $X exposure million refinancing by approximately first been we quarter of executing debt of

receipt previously of Systems retirement of the drivers mentioned the gas in with along Group, of XXXX. this related reduction were proceeds million A.B. of Brown, the costs proceeds elevated latter collection Energy primary the the approximately to the in securitization $XXX The the of incurred part of

as are equity higher either $XXX we we begin And parent, rate cases. delever. reminder, approximately or we rate head Gas carrying cases, Houston fund equity recovering to will we a As of and layer at get of the million Texas to the debt was at as the issued into content this other side our which higher at Electric

the CenterPoint, look as environment. growth rate areas tangible industry-leading my of the of a From the I only growth moment our one team work especially balance the but here to to long-term primary the the interest of of sheet. in strength maintaining balance not working focus current maintaining through here forward with we is at industry, plans execute arrived strong sheet also the in I one plan most

Coming of back remaining acquisition and in Services ESG divested the We our in that to Energy Group, Systems efficiency Systems its through transaction solutions. other and the solutions divestiture XXXX businesses, acquired few one was non-regulated business Group. [indiscernible] portfolio. infrastructure of QX, of It closed Energy or and and the non-regulated within was implement part ESG, Energy

to regulated natural However, as more focus we've owner it this a made utility our for sense sharpened businesses, on find business. our

this X% businesses today, of our of account non-regulated divestiture, than earnings. less a As for result

their have to success and the they'll under owners. employees work We are further grateful tremendous believe for new their

flexibility will plan including those as well received financing $XXX exposure investments these proceeds year. help of the near-term debt as this floating from as sale to The the ESG. our capital $XXX from We reduce capital million fund to received after-tax anticipate the million additional provide securitization as Indiana well we help rate proceeds of of incremental combination making

Slide a focus on now me bit Let CapEx enhancements on our XX.

our year for benefit of customers beginning XX% quarter year-to-date our across billion invested XXXX. For communities, this $X.X of we billion our the This and the $X.X represents billion $X.X of of various service target and territories.

We are XX-year recoveries. to $XX.X additional and goes $X.X of updating our for improvements greater increase capital having increase billion. to capital an XXXX. target plan from is and results This XXXX target through capital to result financing This $X that billion a resource our to in operationally visibility work billion

As it we now incremental of yet ability have into that are Dave to well $X.X of balance our opportunities, said, relates plan, to we not the incorporated opportunities remainder the capital in billion the the confident as identify beyond amount. this in

We include incremental fund efficiently have execute, operationally will can and communicated that when efficiently recover. amounts we we

stated We amounts does external contemplated financing have or today's The not we also remainder require funding. is previous XXXX beyond in plan. through currently forth our billion that $XX equity the the set reflected capital of some increase plan incremental additional will not that require

we the will to finance As evaluate billion such investments. in way the remaining and fall continue also to when to $X.X we target beyond, optimal

work being will while deploy prudently on has of mindful continue this delivering capital focus seek and to changed, Our to affordably not we customer charges.

We X%. equal inflation Houston to historical or continue rate at of be less to than our to customer charges target Electric the

charges This Houston's that believe while will the later relates these rolling this guidance. add undoubtedly of continue able year We updates to X% average. the our conservative earlier to management to per to year are the to power investments be as reiterate growth, O&M company. it on we team the to tremendous point earnings off to X% through incremental like and reduce next I'd bill to achieve plan securitization organic earnings

sustainable year-over-year delivering are industry earnings XXXX. on focused growth We leading, through

to of through quarter. continue XXXX, $X.XX and to Those the in EPS looking X% non-GAAP expect X% X% beyond $X.XX, are high-end mid XXXX. for XXXX non-GAAP the from reaffirmed stated, the grow my guidance to to XXXX thereafter at to and we of As EPS annually, updates

exceed the And of here. the sitting to at to again sector team CenterPoint. in opportunity I’m new of the by have with in here my I Dave, headwinds front some excellent seat before how a over turning so facing, it us. headwinds, even say our and want back I welcomed management that felt tremendous we of amount tailwinds I is believe our excited

I will over to Dave. now back turn the call

today, of us exceeding XX now you meeting heard have quarters As expectations. straight from we or

support course a to plan with that. opportunities pure-play our and We a beyond current utility customers continue incremental regulated are our execution premium on of growth to

turn Thank Operator, now we back Q&A. will to you, Dave. it

[Operator Instructions] J.P. Tonet from with first Jeremy Our question Morgan comes Securities.

Your now open. line is

Hi. Good morning.

Good morning, How you? Jeremy. are

morning. Good

Good. Thank you.

CapEx Just $XXX outlook increase of growth in And formalizing to you diving EPS basis position in the legislation relative benefits? And how the current items and you do are million here, timing CapEx us on here? a little your an bit hurdles walk these Texas more any increase benefit, in magnitude the can with the to these guidance? on through there

Yes.

into Let XX,XXX customers and clearly we me the over details. going other legislative of how that the and, give course, a very Jason successful one view a legislative to it foot of benefit of point was our is sort of then and shareholders you recent outcomes more our go time. be stakeholders see clearly, maybe would can But session

I the over these important ended is one CenterPoint But another time point I with sort this and understand on will his Jason color forward. layered Chris think tailwind add the frames real of going laws is different just in to it's can a though get little that think basically that really for that. comments

more So in you like little impact. and for to We going Jason, give think great we it's color and can be the timing around a really outcome. maybe everybody. the But potential

questions, our our regulatory take rate kind terms or bills a in of significant in to long-term year-end continue the the lag reducing we Thanks, Clearly, plan. using just industry's my thanks take I helping the specifically of for some session more step what legislative growth capital is strengthen further your the Yes. and answer we successful lest forwarded that highlighted remarks, and prepared -- plan, closer the in already financeable Maybe believe [ph] incremental base. return to of allowed Dave, the us us question, when Jeremy.

But two comp year. benefit will somewhat The earnings of a be capital should function per that per $X.XX recovery the it couple benefit with year the rule spend. be the resiliency incentive $XXX I least to you $X.XX at the And benefit filing. of of the when for is of resiliency DCRFs eventual But a shaped making definition. thumb will benefit obviously through $X.XX of rule proceeding it every million CapEx think eligible have for and for be bill roughly the our good should that

And benefits, likely second timing so in year. when impact terms as feel those the of this a kind should of we mentioned of in we the and will prepared remarks, file we DCRF

on full year basis, case. So benefits that The of these begin likely XXXX. in earnings our impacting legislations will, from remainder a follow recent will earnings rate

those flowing plan and So into our think XXXX of about in beyond. or sort

so And that tailwind strengthens an the another yet of kind to just be great continues already further this the day, at end of plan.

next if to hear That's you it. the speak just here, timing regulatory could shifted. thereafter? and over cases wondering regulatory great period there. the these months really has business looking And more the some see to maybe rate case you up at calendar And the the the just setting Got XX for broadly of how more calendar

a Yes. Thanks, activity. of case, Jeremy. busy It's going period to be regulatory rate

through me just quickly those. Let run

first then Electric we will comments, shifted with follow rate we'll that case time, Indiana the and probably about our same Right well, likely we've timing Minnesota and our about As late sometime likely case that rate case quarter talked in to next of we this Electric Houston November Texas year. Rate case the be filing rate our year. as prepared Gas

of us. of And have that rate there's so number obviously, we'll in a cases front

I Electric anticipate, increase, great the want filing Texas relatively company revenue to a I be given which done cases. the work though signal of the a requirement those constructive particularly the rate gas in resolution to flat O&M, and continue has I will Houston reemphasize for managing think case,

our is program X that On transition just will been our Gas generation part that respect of intend to Electric, then Indiana spend capital every well case system ongoing sort as as we the the already as of reflects to modernize subject some reviewed modernization And files to capital case that's plan. our to really a case, gas the our of in that we much with Minnesota. up of regular years and be grid Minnesota file

So while calendar, best busy putting our to and shareholders. our we regulatory we like it's customers very a forward continue feel are foot for upcoming our

Got it. if helpful. That's here. could I last one, very Thanks. And

how launch on Indiana a into notable formal has Is highlights the there here? stakeholder With trended this engagement the wondering recent early front? just IRP any filing,

I'm really to proud stakeholders Southwestern in the team's about engaging respect efforts Indiana. with up our

there the conversations I good think alternatives on of were the that the that was feedback considered. a of on depth lot

that are like I and possible we third feel the putting that the to probably so for And plan forward final facility. a has close going opportunity broadest support coal

mix. with each the the want cost as And just we supply will is work and are that filings think I Indiana I energy through for a Southwestern Again, ultimately, those not of only IRP, way then forward continue through our cleaner option but plan come putting to reemphasize, least reliable our to to we serve the customers projects. in the up

Thank there. it leave you. will I helpful. Very

Thank you.

Our Anthony Mizuho. Crowdell with next question from is

follow-up year. just that Chris. year headwinds tough tailwinds are with first I just the the be would where you're I seeing tailwinds better and of than Dave, last towards moving are tailwinds mean half the to guess, XXXX. or loss to what I for Hey, the midpoint a that What quarter the at, the above maybe above for Dave, you're to question remainder $X.XX, against morning. night half If of I like XXXX, want the just guidance or guess, game. address Crosstown 'XX? up, on the good maybe there, coming headwinds and a slightly leaning get of more hit of first was But just I in could maybe just Jeremy's just, Rival about

a because one, us question right me the why. he's think first tailwinds. that about just have I every tailwinds now. has Chris let day Yes. would say who the you are than on one on track But that of the reiterated, we as Chris How a -- the his us number CenterPoint -- answer tell let I'll CFO greater as headwinds But and let headwinds believe I the to

Yes. in a are the the as you. things for EPS And And Thanks, our want halfway remarks, I Dave, beyond point out to the and Anthony, guidance. prepared we halfway couple you different thanks through heard here, for question. we me are there's of beyond point

just and investments the back First $XXX you in distribution emphasizing that year, the our the from generation million around is the of revenues at assumption we've roughly got additional as look another half filing. XXXX mobile

those updated be anticipate or are year. And later we just so recovered this will those either

good those toward really the because back tailwinds So half of just weighted are they're year. the

bag been mixed in for has has offset trending has across of been been from Weather what weather in more which I hotter conservative hot, Houston we if been say and winter definitely impact generally here us, QX are had balance And thus milder first normalizing the remains And Houston. are into seeing the jurisdictions our are impact the are summer our late we a the of impacts when the are far, bit the of we the of incorporating in plan place. seeing year. we we kind nicely specifically weather a some should the of for case of

side they're really It's headwind driven. no that rate surprise interest on the

year. As imagine, last been we've actively you working since those can

continue remainder probably position. to we we the high and are as so year. move And rates improve to through taking active seen And steps, you've the assume go our we of

right? fund debt advantage to is roughly So basis. on thanks to intercompany of debt, from on there, reducing cost its to those take parent, standalone high lower we its that allows us the reliance the [indiscernible] move a million of $XXX And of ratings. were One of relative the

at where So these are like year. stage we together, of this put we the collectively we

And Slide just on a X. follow-up then

credit remarks You it a on kind the from for prepared ratings. the of guess, the, I see on XQ 'XX addressed decline XX We XX.

maybe to XX% think I the cushion fatter rating? at to maybe between trends what's back that thought XX%. for potential But BaaX BaaX a a the versus to just upgrade

Sure.

about the start this So let with with plan. our talking in morning that XX me line is just we are

quarter for was to be so this couple And have really consistently we the of reasons. going a anticipated trough

of billion our of incremental -- got we debt me, side. loading that's at start in funding were line excuse debt loading an we the on line plans, $X is and directly front roughly year. First in We've the with capital of were front the feeding

at roughly are million the of requirement as flow this the revenue if previously side, look year you we Then increases cash $XXX annual anticipated. mentioned,

toward $XXX is end that to effective September from the over million going onwards of So become of year. the back

it So additive if see to with weather the operating we cash you being combine receipts, year's balance higher flows. the of these

regulatory have outcomes, the are On we we're on the the on making has there side, rating we and these then do time progress do some legislative to as benefit see spending to time -- also of over some implementation as qualitative agencies. at say

Great. so much. Thank you

you. Thank

next is Guggenheim Shar with Our Partners. Pourreza question from

morning. Good guys. Hey,

Shar. morning, Good

Good morning.

can that kind can opportunities? guess, and you I kind plan. opportunities meant define the thinking the touch of outside what the prepared increase in a here of your you first going what you as the $X.X of bit mean what you million I bit above to off, the we remains CapEx CapEx little in Good Dave, now years some well in morning. of above on do remarks, are you $XXX rate? those? see source guess about that I'm seeing are 'XX just the states of be little And you anticipate recurring run well So by that just a paraphrase billion you to later

question. good Yes,

one. me answer Let Jason have that

capital of yet confidence, business. to around it that be across the gamut Thanks, particularly kind that incorporated really potential start Houston our in that the But Shar, I interest grid not continue resiliency $X.X of year. significant we our in the a can indicated make runs think think with sort since there expression our electric billion here in number and done Yes. in resiliency. investments Day a beyond gas to customers' of are of Electric identified a question. last We We'll capital but kind reflect uplift there. incorporated there's plan, more for first very for first that the Dave's enhancing that of investments we've We've we that Analyst significant and there

the will I of more to alleviate the look I help fact Texas, all that here continued side, stakeholders growth is help think the congestion state when transmission electric area. at and the we needed I transmission there Greater support economic think support of the think Houston in

potential a there's So side. for electric transmission

on gas kind gas of enhance incremental the capacity I side, continued think our of are of transmission-related to given kind opportunities we particularly the our growth systems growing kind gas there of as also potentially projects serve market.

So those the of are opportunities. just a handful

an for CapEx. in of opportunities us, think I is abundance there

it whether emphasized Our for customers. will can efficiently our we've execute evaluating focus not or to be we continue as

team see a for finance can all plan, And floating as of that for XX%. point as shareholders today, it are annual our as in sight the efficiently XXXX it we rates. record dimensions. think guidance recover we management we soon in here I a we three earned and capital track can We increasing Case by into of line of those our on efficiently

this $XXX of forward. puts more a going us relates do million it increase execute it to we in capital to level As forward. higher what I position in do think consistently moving

it ability just timely, are entering rate recover frame, of these evaluate are period, during some discussing. have heavy continuing we've time we pretty particularly fact and where been trackers to that given a we capital it to access don't case finance that that efficiently our We the to

Okay.

bring morning of angle you getting good you So Jason, lastly, financing no this up a a plan. of the lot And point equity and right? on of mentioned it, still and obviously, questions guys efficient

of kind what And very of balance or the you that there sales financing? as incremental target kind thinking what mix of sheet of efficient range asset fit are I do sort does repair current kind much, of mean end in embedded in lower about are there? metrics. internal guys. Is you credit Thank the regulated plan, by guys guess external? the at You any we

Yes.

balance a remains just I'll downgrade that our actual on XXX of me set is displaced. sheet this threshold, our to metrics our be metrics and bit around basis credit repair would very say discussed we've There's no maintain I points. kind plan. think cushion don't previously of continue between -- that healthy a direct. do respectfully I rather know. Let on the our commitment as targeting, focus I

having What credit downgrade metrics, they they set we cited we metrics downgrade on Some of and targeted of that while higher also they cushion is may company credit often have for our better retaining peer healthy are threshold, where this between have a are companies threshold. have the cushion. higher less focused a are running

So we of transition termed are variable this number strategic a period of in rate where our of debt with on focus year. year also this delevering has Chris highlighted we've opportunities different as a out a been transactions. number

to will look We continue do opportunities to that. at

second of of emphasize again, our the our And I sort just of way the the of have quarter work, credit we time credit The second recovery end of end about Chris the metrics. what mechanisms period the to capital want said quarter. metrics the just tightest is at set

revenues the are back we from -- our Our trackers definitely get loaded. end capital

And that as improvement an of so we to see half the in the back you XXXX in collect in we on here will those undoubtedly metrics start capital deployed XXXX.

Got it.

Thanks first on Mr. it. call. congrats CenterPoint perfect. you Foster, Appreciate guys. your Okay, earnings guys. Thank

Appreciate it, Shar. Thank you.

Thank you.

Dumoulin-Smith next of is question Bank Julien Our America. from of

very Hey, well. Hope time. the morning, Thank you you much guys good doing are for team.

Shar. on here follow-up of last set including questions, to wanted just the I So

call clarify to about talking want if a the I you here, little norm Just wanted the new it -- to bit.

As post case, the to think setting likely I clarify, following end, given that in do more of recovery of opportunities associated just 'XX? then 'XX you you this I could the balancing address dynamics that here want spending, to how last next elevated level you rate And post case? If And about sides a this a or little in about equation got rate think both follow-up. right, 'XX. financing bit, how into -- that think you considerations do the comments. the about in expectations

a great answer. to Chris for Yes, question that's

Sure, Julien.

the about time in case frame. You're terms the of right rate thinking

If look and that earlier referenced back the ones you step the case case. at would Houston last the be Jason Electric kind of just among

So we'd a resolved. somewhere XXXX, anticipate it year around be filing that to anticipating QX of get

So of XXXX mass these the in the would other cases would somewhere side QX front that we put of us. are on where all of critical timing in us that of be really

with potential that for robust we'll to a be put at really update the probably stage at guidance XXXX that through have greater as beyond that earnings really the so a us more visibility with position And to that everybody give targets extending stage. respect to plan in and

terms Jason to it emphasis as of I really to mentioned to debt. say, relates our on financing, FFO In mean, maintaining have I cushion the

stage, really debt right? we also, financing program the also pulling have at our that. that create loan other for this But state well, just financing stack You DOE is keep like the that that we looking should efficiently also in mind consistently actually are we customers. present as cheaper opportunities to to evaluating and At looking are opportunities

of So of a in front us. lot opportunity there

lot Excellent. a a, that somewhat might would itself? resiliency think the I of Thanks for that. for you your clarifying know filter CapEx could you back into the this you if of be case mean would filing extent talk Can potentially will. rate resiliency parallel is bit -- it I eligibility about And your And they here, as in little and also any that into: coming here resiliency about then eligible b, filing. how revisions; that this it? potential further non-growth to seem capital a filing, like be

commission Julian. filing, the be let this. rule proceeding kind for the ultimately Ultimately, is going question, try defined by put just should kind the around Thanks Those be Yes. 'XX by in to established of our that's rules of end then front now. the some me and high-level of this to making thoughts but of

definition spans, of in [indiscernible], et grid of shorter I sort clearly, lines, undergrounding cetera, of resiliency. investments and distribution to squarely hardening the potential composite our all the rate that think some related fits

clearly also that management. I incorporated think through [indiscernible] there's can work be

kind an around work from what kind spending we think commission events. is on for resource with I and/or including some analytical the IT help kind of of aspects, IT-related concern to of weather-related reduce need maybe other standpoint availability

code. CE by ZIP probably but $XXX could somewhere of filing, conservatively, least to $X that in say related qualify that going I capital year definition, you our proceeding the a at think so there's And ultimately, million billion could probably in again, resiliency at for it's that be to shaped

the mechanisms way I increases. in customer and important, growth or effectively Texas, Julien, account think for company what's recovering it, you with highlighted think here I work the is associated the eligible revenues keeping the

And connecting so to capital relates customers. our CE about half at new

of supports we've where higher seen on limited the trackers that investments a resiliency very historically level regulatory on lag in. kind our you think is revenues, having capital growth related related there's lag So really if wait of our for about come capital, regulatory that to to

put to the that to in recover carrying beginning time investments, at cetera, costs into defer we effectively CE. of capital start but able et depreciation, By lag all regulatory we service eliminate are rates, a we being between before to those interest, and

so to to underscore just how return at was earn bill our just want continuing to And improve at to Electric. ability this important allowed I our Houston

the so And quarter bit and more of [ph] little to next year. shape the as hopefully, through come file filing, of a begin that to PUCT to that first resiliency works rulemaking but we kind starts ultimately

luck. Good soon. Got it. All right, Thank Speak you very much. guys.

you. Thank

Stanley. Morgan Our David next question with is from Arcaro

Your line is now open.

my for Thanks Hi, so much good morning. questions. taking

David. morning, Good

Good morning.

Good morning.

of latest how seen could and see, funding into they your balance just needs gas potential. sheet Let's on we've M&A was the wondering some market businesses, indications time? on weave in terms of over mix thoughts I of the utilities

gas we don't as broader the of questions have have for have electric David, love for as to a Yes. think But question. equity being I a asset split. a of That the responses electric, XX% your it, We for mix. our is sort roughly, reset split to kind of question, need back part need several we previous call gets our our we've sales. kind that towards business strategically the fund slight as growth in We plan. business indicated the very here on don't Houston. here, it said, a ago in good of of to We Thanks, bias years XX% of sort

all the of of significant interest Obviously, assets. our a of there's a on amount of across inbound continue to We underway receive country. processes sort number

it utility-related think assets. at demand a high-quality I least there's that high continues to reflect for

assets. to any So need any have we don't sell

of customers with happy optimizing continue the to benefit will profile, for eye always are have an our our and towards we our We plan but shareholders. our

are have this about now assets should we have is Yes. which -- I at can offense. guess us sit be opportunistic point business is with the this just an to don't play defense play I way great with forward. think time, you really the we think to our I think about in back We in very go right and I such it Dave. it, position as gives we opportunity a guess we

almost to preserved is think Jason continue inquiries for the of be said, have as And line business piece me, there our go. is the all bottom we I we So that, inbound our optionality day. we get want any really on on direction to every every essentially

really greatest have don't other utility where we in the that's out really like which is we but to So plan there space. are, execute, think, the we do anything than I

Indiana And That's could you thoughts the rate wondering Okay. was if on then Thank helpful. year. case later just this give coming I Electric up you.

that be if expect case filing, big would a there or wondering I of rate standard growth just file? driven that to was this specifics? revenue requirement In to you'd items be fairly Or you'd terms expect of kind

be it David. question. of previewed Thanks, with case we and a will where I the I actually have largely think commission mean rate Yes. I the many elements. signaled the appreciate stakeholders,

mechanisms Indiana. are there number think in I constructive out a of

and execute then in distribution report. investments related in transmission our grid our upon separate a instance, For We made filing and system, advance. we it

a will several filed reviewed And so with we've commission. execution already and be of times the the this a that of plan of true-up sort

we Similarly filed individual have the approvals. for we then generation but filed an transition project not on IRP, the plan, only

conversation of the of part focus case. rates continue there the key with reviewed of So element the would stakeholders. will That all file anticipate that in to be Indiana. between be the will that we case already kind being -- be a much Southwestern I And said, the of as

Okay, Makes so sense. great. Thanks much.

the time end hour, to we for the Operator, proximity I think given more. one of have the

from comes ISI. Durgesh with question Evercore last Our Chopra

here. in Hey, squeezing me for guys. Thanks

one Just for question me.

[indiscernible] here. of a obviously You have lot

no the billion. for You $XX mentioned equity plan,

that. need You we equity mentioned beyond you may go that as some

last timing. you of sort color any CapEx Just like big provided you update. QX can provide Historically, a on year,

timing on the you a be CapEx color Is we see Any big it new through there. financing cases? the potentially when you. would Just update rate plan? appreciated and after color go Thank any could

the Hi, going Jason important in is right are where But given for to are affordability really Durgesh, of question. In going short, of us. we here we've thanks positioned front the customers. well a them how profile yes, be got emphasis is. that mentioned that short-term cases really the for set our into

finance end some really you those we to going give referenced, with I a for really the to those clarity them. the towards position a would stage we'll through how good in where you direct at are So targets cases feel kind and that be I to back be of better revisit of all provided able that

to We're to you morning, to going this of But this some are we at there's going the capital it's go, right? consistently fund to as opportunities the we have to in I to As find and if -- heard efficiently really look as as consistently see execute referenced opportunity say, we them recover pull revenues. earlier.

hopefully, color. So you helps give that some

on your congrats Thanks and Chris, guys. Thanks, does. earnings call. first It CenterPoint

you. Thank

to think dialing our Operator, the that's conclude in. going here for that, quarter with Thanks, for second of call everyone, I XXXX. Great.

call. conference earnings quarter second participating. Energy's Thank CenterPoint concludes you This for