CenterPoint Energy, Inc. (NYSE:CNP) Q3 2019 Earnings Conference Call Transcript

Nov 07, 2019 • 10:00 am ET

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CenterPoint Energy, Inc. (NYSE:CNP) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning and welcome to CenterPoint Energy's Third Quarter 2019 Earnings Conference Call with senior management. [Operator Instructions]

I will now turn the call over to David Mordy, Director of Investor Relations, Mr. Mordy. Please go ahead, sir.

Executive
David Mordy

Thank you, Jamira. Good morning, everyone. Welcome to our

Third Quarter 2019 Earnings Conference Call. Scott Prochazka President and CEO and Xia Liu, Executive Vice President and CFO, will discuss our third quarter 2019 results and provide highlights on other key areas. Also with us this morning are several members of management, who will be available during the Q&A portion of our call.

In conjunction with our call, we will be using slides which can be found under the Investors section on our website CenterPointEnergy.com for a reconciliation of the non-GAAP measures used in providing earnings guidance in today's call, please refer to our earnings news release and our slides on our website.

Please note that we may announce material information using SEC filings, news releases, public conference calls, webcasts and post to the Investors section of our website. In the future, we will continue to use these channels to communicate important information and encourage you to review our website. Today, management will discuss certain topics that will contain projections and forward-looking information that are based on management's beliefs, assumptions and information currently available to management. These forward-looking statements are subject to risks or uncertainties, actual results could differ materially based upon factors including weather, regulatory actions, the economy, commodity prices and other risk factors noted in our SEC filings.

We will also discuss guidance for 2019. The 2019 guidance basis EPS range excludes variables as provided in our press release including certain merger impacts such as integration and transaction related fees and expenses including severance and other costs to achieve and merger financing impacts in January, prior to the completion of the merger and potential impacts of the pending Houston Electric Rate Case. The 2019 guidance range considers factors described in our press release and slides including operations and performance to-date and assumptions for certain significant variables that may impact earnings such as normal customer growth, usage and weather, throughput, commodity prices, recovery of capital invested through rate cases and other rate filings. But excluding any potential impact from the current Houston Electric Rate Case. As well as the volume of work contracted in our Infrastructure Services business. The range also considers anticipated cost savings as a result of the merger and assumes the lower end of Enable Midstream Partners 2019 guidance range as provided on Enable's Third Quarter Earnings Call on November 6, 2019. In providing this guidance, CenterPoint Energy uses a non-GAAP measure of adjusted diluted earnings per share that does not consider other potential impacts, such as changes in accounting standards or unusual items including those from Enable, earnings or losses from the change in the value of ZENS and related securities or the timing effects of mark-to-market accounting in the company's Energy Services business, which, along with the