Business Wire | Nov 5, 2020 06:04AM EST

CenterPoint Energy Reports Q3 2020 Earnings of $0.13 Per Diluted Share; $0.34 Diluted EPS on a Guidance Basis, With $0.29 Diluted EPS From Utility Operations and $0.05 Diluted EPS From Midstream Investments

Nov. 05, 2020

HOUSTON--(BUSINESS WIRE)--Nov. 05, 2020--CenterPoint Energy, Inc. (NYSE: CNP) today reported income available to common shareholders of $69 million, or $0.13 per diluted share, for the third quarter of 2020, compared to income available to common shareholders of $241 million, or $0.47 per diluted share, for the third quarter of 2019. The third quarter 2020 results included after-tax non-cash impairment charges of $92 million or $0.15 per diluted share for the company's share of impairment charges recorded by Enable Midstream Partners, LP ("Enable").

On a guidance basis, third quarter 2020 earnings were $0.34 per diluted share, with $0.29 per diluted share from utility operations, and $0.05 per diluted share from midstream investments, excluding non-cash impairment charges. Third quarter 2019 earnings, on a guidance basis, were $0.47 per diluted share, with $0.39 per diluted share from utility operations and $0.08 per diluted share from midstream investments. See "Reconciliation of Consolidated income (loss) available to common shareholders and diluted earnings (loss) per share (GAAP) to guidance basis income and guidance basis diluted earnings per share (Non-GAAP)" and "Earnings Outlook and Non-GAAP Considerations" below.

"Our strong third quarter results confirm our commitment to delivering value for our customers and shareholders," said Dave Lesar, President and Chief Executive Officer of CenterPoint Energy. "Given the strength of our results, we are raising our 2020 guidance basis Utility EPS range to $1.12 - $1.20."

Lesar added, "We also recently concluded the work of the Business Review and Evaluation Committee of the Board. We are eager to share our strategy and invite investors to join management for a virtual Investor Day on December 7, 2020."

"During our Investor Day, we will highlight our updated long-term annual rate base growth projection of approximately 10%. This rate base growth is central to our strategy to deliver consistent year-over-year earnings growth to investors and improve service to our customers. The projected additional capital expenditures driving this 10% annual rate base growth not only put us in a position to reiterate our 5% - 7% five-year guidance basis Utility EPS annual growth target, but gives us confidence in being able to deliver results at the top end of that range. I remain greatly energized about CenterPoint Energy's future and will continue to work tirelessly to drive maximum value for all of our stakeholders."

Earnings Outlook and Non-GAAP Considerations

To provide greater transparency on utility earnings, 2020 guidance will be presented in two components, a guidance basis Utility EPS range and a Midstream Investments EPS expected range.

In addition to presenting its financial results in accordance with GAAP, including presentation of income (loss) available to common shareholders and diluted earnings (loss) per share, CenterPoint Energy provides guidance based on guidance basis income and guidance basis diluted earnings per share, which are non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's historical or future financial performance that excludes or includes amounts that are not normally excluded or included in the most directly comparable GAAP financial measure.

Management evaluates CenterPoint Energy's financial performance in part based on guidance basis earnings per share. Management believes that presenting these non-GAAP financial measures enhances an investor's understanding of CenterPoint Energy's overall financial performance, including the impact of its Enable investment, by providing them with an additional meaningful and relevant comparison of current and anticipated future results across periods. The adjustments made in these non-GAAP financial measures exclude items that Management believes do not most accurately reflect the company's fundamental business performance. These excluded items are reflected in the reconciliation tables of this news release, where applicable. CenterPoint Energy's guidance basis income and guidance basis diluted earnings per share non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, income available to common shareholders and diluted earnings per share, which respectively are the most directly comparable GAAP financial measures. These non-GAAP financial measures also may be different than non-GAAP financial measures used by other companies.

(1) Utility EPS Guidance Range

* The Utility EPS guidance range includes net income from Houston Electric, Indiana Electric and Natural Gas Distribution segments, as well as after tax Corporate and Other operating income. * The 2020 Utility EPS guidance range reflects dilution and earnings as if the Series C preferred stock were issued as common stock. * The Utility EPS guidance excludes: Earnings or losses from the change in value of ZENS and related securities Certain expenses associated with merger integration and Business Review and Evaluation Committee activities Severance costs Results related to Infrastructure Services and Energy Services, including costs and impairment resulting from the sale of those businesses Midstream Investments and allocation of associated corporate overhead

In providing this guidance, CenterPoint Energy does not consider the items noted above and other potential impacts such as changes in accounting standards, impairments or other unusual items, which could have a material impact on GAAP reported results for the applicable guidance period. The 2020 Utility EPS guidance range also considers operations performance to date and assumptions for certain significant variables that may impact earnings, such as customer growth (above 2% for electric operations and 1% for natural gas distribution) and usage including normal weather, throughput, recovery of capital invested, effective tax rates, financing activities and related interest rates, regulatory and judicial proceedings, and anticipated cost savings as a result of the merger. In addition, the Utility EPS guidance range incorporates a full-year COVID-19 scenario range of $0.10 - $0.15 which assumes reduced demand levels and miscellaneous revenues with the second quarter as the peak and reflects anticipated deferral and recovery of certain incremental expenses, including bad debt. The COVID-19 scenario range also assumes a gradual re-opening of the economy in CenterPoint Energy's service territories, with anticipated reduced demand and lower miscellaneous revenues over the remainder of 2020. The 2020 Utility EPS guidance range also assumes an allocation of corporate overhead based upon its relative earnings contribution. Corporate overhead consists of interest expense, preferred stock dividend requirements, income on Enable preferred units and other items directly attributable to the parent along with the associated income taxes. CenterPoint Energy is unable to present a quantitative reconciliation of forward-looking guidance basis diluted earnings per share because changes in the value of ZENS and related securities, future impairments, and other unusual items are not estimable and are difficult to predict due to various factors outside of management's control.

(2) Midstream Investments EPS Expected Range

The 2020 Midstream Investments EPS expected range is $0.15 - $0.18. In providing this EPS expected range for Midstream Investments, CenterPoint Energy assumes a 53.7 percent ownership of Enable's common units and includes the amortization of its basis differential in Enable and assumes an allocation of its corporate overhead based upon Midstream Investments relative earnings contribution. The Midstream Investments EPS expected range reflects dilution and earnings as if CenterPoint Energy's Series C preferred stock were issued as common stock. The Midstream Investments EPS expected range takes into account such factors as Enable's most recent public outlook for 2020 dated November 4, 2020, and effective tax rates. In providing this 2020 guidance, CenterPoint Energy uses a non-GAAP measure of guidance basis diluted earnings per share that does not consider other potential impacts such as changes in accounting standards, impairments or Enable's unusual items, which could have a material impact on GAAP reported results for the applicable guidance period. CenterPoint Energy is unable to present a quantitative reconciliation of forward looking guidance basis diluted earnings per share because changes in Enable's outlook, future impairments related to Midstream Investments or Enable's unusual items are not estimable and are difficult to predict due to various factors outside of CenterPoint Energy management's control.

Reconciliation of Consolidated income (loss) available to common shareholdersand diluted earnings (loss) per share (GAAP) to guidance basis income andguidance basis diluted earnings per share (Non-GAAP)

Quarter Ended

September 30, 2020

Utility Midstream Corporate and CES^(1) & CIS^(2) Operations Investments Other ^(6) Consolidated (Disc. Operations)

Dollars Diluted Dollars Diluted Dollars Diluted Dollars Diluted Dollars Diluted in EPS ^(3) in EPS ^(3) in EPS ^(3) in EPS ^(3) in EPS ^(3) millions millions millions millions millions

Consolidatedincome (loss)available tocommon $ 193 $ 0.35 $ (62) $ (0.11) $ (56) $ (0.10) $ (6) $ (0.01) $ 69 $ 0.13 shareholdersand dilutedEPS



ZENS-relatedmark-to-market (gains) losses:

Marketablesecurities - - - - (65) (0.12) - - (65) (0.12) (net of taxes of $18)^(4)(5)

Indexed debtsecurities - - - - 66 0.12 - - 66 0.12 (net of taxes of $18)^(4)



Impactsassociatedwith the 2 - - - 2 0.01 - - 4 0.01 Vectren merger (net of taxesof $0, $1)^(4)



Severancecosts (net of 4 0.01 - - - - - - 4 0.01 taxes of $1)^ (4)



Impactsassociatedwith the salesof CES^ (1) - - - - - - 7 0.01 7 0.01 and CIS^ (2)(net of taxesof $0)^(4)



Impactsassociatedwith Series C preferredstock

Preferredstock dividendrequirementand - - - - 23 0.04 - - 23 0.04 amortization of beneficialconversionfeature

Impact ofincreasedshare count on - (0.03) - 0.01 - 0.01 - - - (0.01) EPS if issued as commonstock

Total Series Cpreferred - (0.03) - 0.01 23 0.05 - - 23 0.03 stock impacts



Loss onimpairment - - 92 0.15 - - - - 92 0.15 (net of taxes of $29)^(4)



Corporate andOther (26) (0.04) (3) - 30 0.04 (1) - - - Allocation



Consolidatedon a guidance $ 173 $ 0.29 $ 27 $ 0.05 $ - $ - $ - $ - $ 200 $ 0.34 basis



(1) Energy Services segment

(2) Infrastructure Services segment

(3) Quarterly diluted EPS on both a GAAP and guidance basis are based on theweighted average number of shares of common stock outstanding during thequarter, and the sum of the quarters may not equal year-to-date diluted EPS

(4) Taxes are computed based on the impact removing such item would have on taxexpense

(5) Comprised of common stock of AT&T Inc. and Charter Communications, Inc.

(6) Corporate and Other, plus income allocated to preferred shareholders

Quarter Ended

September 30, 2019

Utility Operations

Midstream Investments

Corporate and Other (6)

CES(1) & CIS(2)

(Disc. Operations)

Consolidated

Dollars in millions

Diluted EPS (3)

Dollars in millions

Diluted EPS (3)

Dollars in millions

Diluted EPS (3)

Dollars in millions

Diluted EPS (3)

Dollars in millions

Diluted EPS (3)

Consolidated income (loss) available to common shareholders and diluted EPS

$

225

$

0.44

$

50

$

0.10

$

(53

)

$

(0.10))

$

19

$

0.03

$

241

$

0.47

Timing effects impacting CES (1):

Mark-to-market (gains) losses (net of taxes of $1)(4)

-

-

-

-

-

-

1

-

1

-

ZENS-related mark-to-market (gains) losses:

Marketable securities (net of taxes of $12)(4)(5)

-

-

-

-

(47

)

(0.09

)

-

-

(47

)

(0.09

)

Indexed debt securities (net of taxes of $12) (4)

-

-

-

-

50

0.10

-

-

50

0.10

Impacts associated with the Vectren merger (net of taxes of $2, $7, $1)(4)

3

0.01

-

-

13

0.03

4

0.01

20

0.05

Corporate and Other Allocation

(34

)

(0.06

)

(8

)

(0.02

)

37

0.06

5

0.02

-

-

Exclusion of Discontinued Operations (7)

-

-

-

-

-

-

(29

)

(0.06

)

(29

)

(0.06

)

Consolidated on a guidance basis

$

194

$

0.39

$

42

$

0.08

$

-

$

-

$

-

$

-

$

236

$

0.47

(1) Energy Services segment

(2) Infrastructure Services segment

(3) Quarterly diluted EPS on both a GAAP and guidance basis are based on the weighted average number of shares of common stock outstanding during the quarter, and the sum of the quarters may not equal year-to-date diluted EPS

(4) Taxes are computed based on the impact removing such item would have on tax expense

(5) Comprised of common stock of AT&T Inc. and Charter Communications, Inc.

(6) Corporate and Other, plus income allocated to preferred shareholders

(7) Results related to discontinued operations are excluded from the company's guidance basis results

Filing of Form 10-Q for CenterPoint Energy, Inc.

Today, CenterPoint Energy, Inc. filed with the Securities and Exchange Commission (SEC) its Quarterly Report on Form 10-Q for the quarter ended September 30, 2020. A copy of that report is available on the company's website, under the Investors section. Investors and others should note that we may announce material information using SEC filings, press releases, public conference calls, webcasts, and the Investor Relations page of our website. In the future, we will continue to use these channels to distribute material information about the company and to communicate important information about the company, key personnel, corporate initiatives, regulatory updates and other matters. Information that we post on our website could be deemed material; therefore we encourage investors, the media, our customers, business partners and others interested in our company to review the information we post on our website.

Webcast of Earnings Conference Call

CenterPoint Energy's management will host an earnings conference call on Thursday, November 5, 2020, at 7:00 a.m. Central time/8:00 a.m. Eastern time. Interested parties may listen to a live audio broadcast of the conference call on the company's website under the Investors section. A replay of the call can be accessed approximately two hours after the completion of the call and will be archived on the website for at least one year.

About CenterPoint Energy, Inc.

As the only investor owned electric and gas utility based in Texas, CenterPoint Energy, Inc. (NYSE: CNP) is an energy delivery company with electric transmission and distribution, power generation and natural gas distribution operations that serve more than 7 million metered customers in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas. As of September 30, 2020, the company owned approximately $33 billion in assets and also owned 53.7 percent of the common units representing limited partner interests in Enable Midstream Partners, LP, a publicly traded master limited partnership that owns, operates and develops strategically located natural gas and crude oil infrastructure assets. With approximately 9,600 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.

Forward-looking Statements

This news release includes, and the earnings conference call will include, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this news release, the words "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "intend," "may," "objective," "plan," "potential," "predict," "projection," "should," "target," "will" or other similar words are intended to identify forward-looking statements. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual events and results may differ materially from those expressed or implied by these forward-looking statements. Any statements in this news release or on the earnings conference call regarding capital investments, rate base growth and our ability to achieve it, future earnings and guidance, including long-term growth rate, and future financial performance and results of operations, including, but not limited to the impact of COVID-19, including with respect to regulatory actions and the COVID-19 scenario range discussed in this news release, the Business Review and Evaluation Committee's review process and outcomes, value creation, opportunities and expectations and any other statements that are not historical facts are forward-looking statements. Each forward-looking statement contained in this news release or discussed on the earnings conference call speaks only as of the date of this release or the earnings conference call.

Important factors that could cause actual results to differ materially from those indicated by the provided forward-looking information include, but are not limited to, risks and uncertainties relating to: (1) the performance of Enable, the amount of cash distributions CenterPoint Energy receives from Enable, and the value of CenterPoint Energy's interest in Enable; (2) CenterPoint Energy's expected benefits of the merger with Vectren Corporation (Vectren) and integration, including the ability to successfully integrate the Vectren businesses and to realize anticipated benefits and commercial opportunities; (3) financial market and general economic conditions, including access to debt and equity capital and the effect on sales, prices and costs; (4) industrial, commercial and residential growth in CenterPoint Energy's service territories and changes in market demand; (5) actions by credit rating agencies, including any potential downgrades to credit ratings; (6) the timing and impact of future regulatory and legal proceedings; (7) legislative decisions, including tax and developments related to the environment such as global climate change, air emissions, carbon, waste water discharges and the handling of coal combustion residuals, among others, and CenterPoint Energy's carbon reduction targets; (8) the impact of the COVID-19 pandemic; (9) the recording of impairment charges, including any impairments related to CenterPoint Energy's investment in Enable; (10) weather variations and CenterPoint Energy's ability to mitigate weather impacts; (11) changes in business plans; (12) CenterPoint Energy's ability to fund and invest planned capital, including timely and appropriate rate actions that allow recovery of costs and a reasonable return on investment; (13) CenterPoint Energy's or Enable's potential business strategies and strategic initiatives, including the recommendations and outcomes of the Business Review and Evaluation Committee, restructurings, joint ventures and acquisitions or dispositions of assets or businesses, which may not be completed or result in the benefits anticipated by CenterPoint Energy or Enable; (14) CenterPoint Energy's ability to execute operations and maintenance management initiatives; and (15) other factors discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2019, CenterPoint Energy's Quarterly Report on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020 and September 30, 2020, including in the "Risk Factors" and "Cautionary Statement Regarding Forward-Looking Information" sections of such reports, and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

Quarter Ended

September 30, 2019

Utility Midstream Corporate and CES^(1) & CIS^(2) Operations Investments Other ^(6) Consolidated (Disc. Operations)

Dollars Diluted Dollars Diluted Dollars Diluted Dollars Diluted Dollars Diluted in EPS ^(3) in EPS ^(3) in EPS ^(3) in EPS ^(3) in EPS ^(3) millions millions millions millions millions

Consolidatedincome (loss)available tocommon $ 225 $ 0.44 $ 50 $ 0.10 $ (53 ) $ (0.10)) $ 19 $ 0.03 $ 241 $ 0.47 shareholdersand dilutedEPS



Timing effectsimpacting CES^ (1):

Mark-to-market(gains) losses - - - - - - 1 - 1 - (net of taxes of $1)^(4)



ZENS-relatedmark-to-market (gains) losses:

Marketablesecurities - - - - (47 ) (0.09 ) - - (47 ) (0.09 )(net of taxes of $12)^(4)(5)

Indexed debtsecurities - - - - 50 0.10 - - 50 0.10 (net of taxes of $12) ^(4)



Impactsassociatedwith theVectren merger 3 0.01 - - 13 0.03 4 0.01 20 0.05 (net of taxesof $2, $7, $1)^(4)



Corporate and ) )Other (34 ) (0.06 (8 ) (0.02 37 0.06 5 0.02 - - Allocation



Exclusion ofDiscontinued - - - - - - (29 ) (0.06 ) (29 ) (0.06 )Operations ^ (7)



Consolidatedon a guidance $ 194 $ 0.39 $ 42 $ 0.08 $ - $ - $ - $ - $ 236 $ 0.47 basis



(1) Energy Services segment

(2) Infrastructure Services segment

(3) Quarterly diluted EPS on both a GAAP and guidance basis are based on theweighted average number of shares of common stock outstanding during thequarter, and the sum of the quarters may not equal year-to-date diluted EPS

(4) Taxes are computed based on the impact removing such item would have on taxexpense

(5) Comprised of common stock of AT&T Inc. and Charter Communications, Inc.

(6) Corporate and Other, plus income allocated to preferred shareholders

(7) Results related to discontinued operations are excluded from the company'sguidance basis results

Filing of Form 10-Q for CenterPoint Energy, Inc.

Today, CenterPoint Energy, Inc. filed with the Securities and Exchange Commission (SEC) its Quarterly Report on Form 10-Q for the quarter ended September 30, 2020. A copy of that report is available on the company's website, under the Investors section. Investors and others should note that we may announce material information using SEC filings, press releases, public conference calls, webcasts, and the Investor Relations page of our website. In the future, we will continue to use these channels to distribute material information about the company and to communicate important information about the company, key personnel, corporate initiatives, regulatory updates and other matters. Information that we post on our website could be deemed material; therefore we encourage investors, the media, our customers, business partners and others interested in our company to review the information we post on our website.

Webcast of Earnings Conference Call

CenterPoint Energy's management will host an earnings conference call on Thursday, November 5, 2020, at 7:00 a.m. Central time/8:00 a.m. Eastern time. Interested parties may listen to a live audio broadcast of the conference call on the company's website under the Investors section. A replay of the call can be accessed approximately two hours after the completion of the call and will be archived on the website for at least one year.

About CenterPoint Energy, Inc.

As the only investor owned electric and gas utility based in Texas, CenterPoint Energy, Inc. (NYSE: CNP) is an energy delivery company with electric transmission and distribution, power generation and natural gas distribution operations that serve more than 7 million metered customers in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas. As of September 30, 2020, the company owned approximately $33 billion in assets and also owned 53.7 percent of the common units representing limited partner interests in Enable Midstream Partners, LP, a publicly traded master limited partnership that owns, operates and develops strategically located natural gas and crude oil infrastructure assets. With approximately 9,600 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.

Forward-looking Statements

This news release includes, and the earnings conference call will include, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this news release, the words "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "intend," "may," "objective," "plan," "potential," "predict," "projection," "should," "target," "will" or other similar words are intended to identify forward-looking statements. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual events and results may differ materially from those expressed or implied by these forward-looking statements. Any statements in this news release or on the earnings conference call regarding capital investments, rate base growth and our ability to achieve it, future earnings and guidance, including long-term growth rate, and future financial performance and results of operations, including, but not limited to the impact of COVID-19, including with respect to regulatory actions and the COVID-19 scenario range discussed in this news release, the Business Review and Evaluation Committee's review process and outcomes, value creation, opportunities and expectations and any other statements that are not historical facts are forward-looking statements. Each forward-looking statement contained in this news release or discussed on the earnings conference call speaks only as of the date of this release or the earnings conference call.

Important factors that could cause actual results to differ materially from those indicated by the provided forward-looking information include, but are not limited to, risks and uncertainties relating to: (1) the performance of Enable, the amount of cash distributions CenterPoint Energy receives from Enable, and the value of CenterPoint Energy's interest in Enable; (2) CenterPoint Energy's expected benefits of the merger with Vectren Corporation (Vectren) and integration, including the ability to successfully integrate the Vectren businesses and to realize anticipated benefits and commercial opportunities; (3) financial market and general economic conditions, including access to debt and equity capital and the effect on sales, prices and costs; (4) industrial, commercial and residential growth in CenterPoint Energy's service territories and changes in market demand; (5) actions by credit rating agencies, including any potential downgrades to credit ratings; (6) the timing and impact of future regulatory and legal proceedings; (7) legislative decisions, including tax and developments related to the environment such as global climate change, air emissions, carbon, waste water discharges and the handling of coal combustion residuals, among others, and CenterPoint Energy's carbon reduction targets; (8) the impact of the COVID-19 pandemic; (9) the recording of impairment charges, including any impairments related to CenterPoint Energy's investment in Enable; (10) weather variations and CenterPoint Energy's ability to mitigate weather impacts; (11) changes in business plans; (12) CenterPoint Energy's ability to fund and invest planned capital, including timely and appropriate rate actions that allow recovery of costs and a reasonable return on investment; (13) CenterPoint Energy's or Enable's potential business strategies and strategic initiatives, including the recommendations and outcomes of the Business Review and Evaluation Committee, restructurings, joint ventures and acquisitions or dispositions of assets or businesses, which may not be completed or result in the benefits anticipated by CenterPoint Energy or Enable; (14) CenterPoint Energy's ability to execute operations and maintenance management initiatives; and (15) other factors discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2019, CenterPoint Energy's Quarterly Report on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020 and September 30, 2020, including in the "Risk Factors" and "Cautionary Statement Regarding Forward-Looking Information" sections of such reports, and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

CenterPoint Energy, Inc. and Subsidiaries

Condensed Statements of Consolidated Income

(Millions of Dollars)

(Unaudited)

Three Months Ended Nine Months Ended September 30, September 30,

2020 2019 2020 2019

Revenues:

Utility revenues $ 1,538 $ 1,548 $ 5,087 $ 5,284

Non-utility revenues 84 110 277 261

Total 1,622 1,658 5,364 5,545

Expenses:

Utility natural gas, fuel and 170 171 981 1,228 purchased power

Non-utility cost of revenues, 63 80 196 188 including natural gas

Operation and maintenance 659 621 1,976 2,042

Depreciation and amortization 306 316 885 938

Taxes other than income taxes 122 113 387 352

Goodwill Impairment - - 185 -

Total 1,320 1,301 4,610 4,748

Operating Income 302 357 754 797

Other Income (Expense):

Gain on marketable securities 83 59 14 206

Loss on indexed debt (84 ) (62 ) (25 ) (216 )securities

Interest expense and other (121 ) (134 ) (388 ) (389 )finance charges

Interest expense on (7 ) (9 ) (22 ) (31 )Securitization Bonds

Equity in earnings (loss) of (67 ) 77 (1,499 ) 213 unconsolidated affiliates, net

Interest income 1 3 2 16

Interest income from - 1 1 4 Securitization Bonds

Other income, net 10 5 44 20

Total (185 ) (60 ) (1,873 ) (177 )

Income (Loss) from Continuing 117 297 (1,119 ) 620 Operations Before Income Taxes

Income tax expense (benefit) (10 ) 46 (328 ) 75

Income (Loss) from Continuing 127 251 (791 ) 545 Operations

Income (Loss) fromDiscontinued Operations (net (6 ) 19 (182 ) 89 of tax expense of $-0-, $16, $21 and $38, respectively)

Net Income (Loss) 121 270 (973 ) 634

Income allocated to preferred 52 29 127 88 shareholders

Income (Loss) Available to $ 69 $ 241 $ (1,100 ) $ 546 Common Shareholders

Reference is made to the Combined Notes to Unaudited Condensed Consolidated Financial Statements contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.

CenterPoint Energy, Inc. and Subsidiaries

Selected Data From Statements of Consolidated Income

(Millions of Dollars, Except Share and Per Share Amounts)

(Unaudited)

Three Months Ended Nine Months Ended September 30, September 30,

2020 2019 2020 2019



Basic earnings (loss) percommon share - continuing $ 0.14 $ 0.44 $ (1.75 ) $ 0.91 operations

Basic earnings (loss) percommon share - discontinued (0.01 ) 0.04 (0.35 ) 0.18 operations

Basic Earnings (loss) Per $ 0.13 $ 0.48 $ (2.10 ) $ 1.09 Common Share

Diluted earnings (loss) percommon share - continuing $ 0.14 $ 0.44 $ (1.75 ) $ 0.91 operations

Diluted earnings (loss) percommon share - discontinued (0.01 ) 0.03 (0.35 ) 0.17 operations

Diluted Earnings Per Common $ 0.13 $ 0.47 $ (2.10 ) $ 1.08 Share



Dividends Declared per $ 0.1500 $ 0.2875 $ 0.5900 $ 0.5750 Common Share

Dividends Paid per Common $ 0.1500 $ 0.2875 $ 0.5900 $ 0.8625 Share

Weighted Average CommonShares Outstanding (in millions):

- Basic 545 502 525 502

- Diluted 548 505 525 505



Net Income (Loss) by Segment

Houston Electric T&D $ 157 $ 185 $ 281 $ 315

Indiana Electric Integrated 31 34 (121 ) 41

Natural Gas Distribution 5 6 242 149

Total Utility Operations 193 225 402 505

Midstream Investments (62 ) 50 (1,165 ) 124

Corporate and Other (4 ) (24 ) (28 ) (84 )

Income (Loss) from 127 251 (791 ) 545 Continuing Operations

Income (loss) fromDiscontinued Operations, (6 ) 19 (182 ) 89 net of tax

Net Income (Loss) $ 121 $ 270 $ (973 ) $ 634



Reference is made to the Combined Notes to Unaudited Condensed Consolidated Financial Statements contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.

CenterPoint Energy, Inc. and Subsidiaries

Results of Operations by Segment

(Millions of Dollars, Except Throughput and Customer Data)

(Unaudited)

Houston Electric T&D

Three Months Ended % Nine Months Ended % September 30, Diff September 30, Diff

2020 2019 Fav/ 2020 2019 Fav/ Unfav Unfav



Revenues $ 828 $ 859 (4 ) $ 2,186 $ 2,313 (5 ) % %

Expenses:

Operation ) )and 381 359 (6 % 1,104 1,086 (2 %maintenance

Depreciationand 151 168 10 % 420 519 19 %amortization

Taxes other ) )than income 64 63 (2 % 192 186 (3 %taxes

Total 596 590 (1 ) 1,716 1,791 4 %expenses %

Operating 232 269 (14 ) 470 522 (10 )Income % %

Other Income (Expense)

Interestexpense andother (50 ) (50 ) - (149 ) (154 ) 3 %financecharges

Interest 1 9 (89 ) 3 22 (86 )income % %

Other income(expense), - (2 ) - 4 (5 ) 180 %net

Income FromContinuing ) )Operations 183 226 (19 % 328 385 (15 %BeforeIncome Taxes

Income tax 26 41 37 % 47 70 33 %expense

Net Income $ 157 $ 185 (15 ) $ 281 $ 315 (11 ) % %

Actual GWH Delivered

Residential 11,237 11,224 - 25,028 24,392 3 %

Total 28,031 28,379 (1 ) 71,293 71,417 - %

Weather(percentageof 10-year average for servicearea):

Cooling 106 % 110 % (4 ) 109 % 106 % 3 %degree days %

Heating - % - % - % 68 % 93 % (25 )degree days %

Number ofmeteredcustomers - end ofperiod:

Residential 2,291,038 2,232,740 3 % 2,291,038 2,232,740 3 %

Total 2,586,093 2,523,450 2 % 2,586,093 2,523,450 2 %

Reference is made to the Combined Notes to Unaudited Condensed Consolidated Financial Statements contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.

CenterPoint Energy, Inc. and Subsidiaries

Results of Operations by Segment

(Millions of Dollars, Except Throughput and Customer Data)

(Unaudited)

Indiana Electric Integrated

Three Months Ended % Diff Nine Months Ended % Diff September 30, September 30,

2020 2019 Fav / 2020 2019 (1) Fav / Unfav Unfav

Revenues $ 157 $ 165 (5) % $ 414 $ 388 7 %

Utilitynatural gas,fuel and 41 46 11 % 108 112 4 %purchasedpower

Revenuesless Utilitynatural gas, 116 119 (3) % 306 276 11 %fuel and purchasedpower

Expenses:

Operationand 46 42 (10) % 128 136 6 %maintenance

Depreciationand 26 25 (4) % 77 66 (17) %amortization

Taxes otherthan income 4 4 - 12 10 (20) %taxes

Goodwill - - - 185 - -impairment

Total 76 71 (7) % 402 212 (90) %expenses

OperatingIncome 40 48 (17) % (96) 64 (250) %(Loss)

Other Income (Expense)

Interestexpense andother (5) (6) 17 % (16) (16) - financecharges

Other 3 1 200 % 6 3 100 %income, net

Income(Loss) FromContinuing 38 43 (12) % (106) 51 (308) %Operations BeforeIncome Taxes

Income tax 7 9 22 % 15 10 (50) %expense

Net Income $ 31 $ 34 (9) % $ (121) $ 41 (395) %(Loss)

Actual GWH Delivered

Residential 438 457 (4) % 1,085 978 11 %

Total 1,421 1,555 (9) % 3,630 3,568 2 %

Weather(percentageof 10-year average for servicearea):

Cooling 104 % 113 % (9) % 104 % 114 % (10) %degree days

Heating 99 % 99 % - % 93 % 95 % (2) %degree days

Number ofmeteredcustomers - end ofperiod:

Residential 129,817 128,381 1 % 129,817 128,381 1 %

Total 148,925 147,337 1 % 148,925 147,337 1 %



(1) Represents February 1, 2019 through September 30, 2019 results only due tothe Merger.

Reference is made to the Combined Notes to Unaudited Condensed Consolidated Financial Statements contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.

CenterPoint Energy, Inc. and Subsidiaries

Results of Operations by Segment

(Millions of Dollars, Except Throughput and Customer Data)

(Unaudited)

Natural Gas Distribution

Three Months Ended % Diff Nine Months Ended September % Diff September 30, 30,

2020 2019 Fav/ 2020 2019 (1) Fav/ Unfav Unfav

Revenues $ 560 $ 541 4 % $ 2,519 $ 2,629 (4 ) %

Cost of 131 136 4 % 888 1,145 22 %revenues (2)

Revenuesless Cost of 429 405 6 % 1,631 1,484 10 %revenues

Expenses:

Operation )and 239 226 (6 % 738 780 5 %maintenance

Depreciation ) )and 115 108 (6 % 339 310 (9 %amortization

Taxes other ) )than income 52 43 (21 % 175 149 (17 %taxes

Total 406 377 (8 ) 1,252 1,239 (1 )expenses % %

Operating 23 28 (18 ) 379 245 55 %Income %

Other Income (Expense)

Interestexpense and ) )other (29 ) (24 ) (21 % (90 ) (71 ) (27 %financecharges

Interest 2 5 (60 ) 5 6 (17 )income % %

Other - (5 ) - (2 ) (6 ) 67 %expense, net

Income(Loss) FromContinuing (4 ) 4 (200 ) 292 174 68 %Operations %BeforeIncome Taxes

Income tax )expense (9 ) (2 ) 350 % 50 25 (100 %(benefit)

Net Income $ 5 $ 6 (17 ) $ 242 $ 149 62 % %

Throughput data in BCF

Residential 18 16 13 % 157 160 (2 ) %

Commercial ) )and 84 88 (5 % 317 326 (3 %industrial

Total 102 104 (2 ) 474 486 (2 )Throughput % %

Weather(percentageof 10-year average for servicearea):

Heating 100 % 18 % 82 % 90 % 100 % (10 )degree days %

Number ofcustomers - end of period:

Residential 4,295,169 4,194,232 2 % 4,295,169 4,194,232 2 %

Commercialand 346,641 344,858 1 % 346,641 344,858 1 %industrial

Total 4,641,810 4,539,090 2 % 4,641,810 4,539,090 2 %



(1) Includes acquired natural gas operations February 1, 2019 through September30, 2019 results only due to the Merger.



(2) Includes Utility natural gas, fuel and purchased power and Non-utility costof revenues, including natural gas.

Reference is made to the Combined Notes to Unaudited Condensed Consolidated Financial Statements contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.

CenterPoint Energy, Inc. and Subsidiaries

Results of Operations by Segment

(Millions of Dollars, Except Throughput and Customer Data)

(Unaudited)

Midstream Investments

Three Months Nine Months Ended Ended September % Diff September 30, % Diff 30,

2020 2019 Fav/ 2020 2019 Fav/ Unfav Unfav

Non-utility $ - $ - - $ - $ - -revenues

Taxes other than - - - (1 ) - -income taxes

Total expenses - - - (1 ) - -

Operating Income - - - 1 - -

Other Income (Expense)

Interest expense ) )and other finance (14 ) (13 ) (8 % (41 ) (39 ) (5 %charges

Equity in ) )earnings (loss) (67 ) 77 (187 % (1,499 ) 213 (804 %from Enable, net

Interest income - 2 - 1 7 (86 ) %

Income (Loss)From Continuing (81 ) 66 (223 ) (1,538 ) 181 (950 )Operations Before % %Income Taxes

Income tax (19 ) 16 219 % (373 ) 57 754 %expense (benefit)

Net Income (Loss) $ (62 ) $ 50 (224 ) $ (1,165 ) $ 124 (1,040 ) % %

Capital Expenditures by Segment

Three Months Ended September 30,

Nine Months Ended September 30,

2020

2019

2020

2019 (1)

Houston Electric T&D

$

215

$

239

$

729

$

722

Indiana Electric Integrated

77

46

191

135

Natural Gas Distribution

314

324

864

773

Corporate and Other

36

43

84

137

Continuing Operations

$

642

$

652

1,868

1,767

Discontinued Operations

-

14

21

61

Total Capital Expenditures

$

642

$

666

$

1,889

$

1,828

(1) Includes capital expenditures of acquired businesses from February 1, 2019 through September 30, 2019 only due to the Merger.

Interest Expense Detail

Three Months Ended September 30,

Nine Months Ended September 30,

2020

2019

2020

2019

Amortization of Deferred Financing Cost

$

7

$

8

$

22

$

22

Capitalization of Interest Cost

(7

)

(10

)

(20

)

(29

)

Securitization Bonds Interest Expense

7

9

22

31

Other Interest Expense

121

136

386

396

Total Interest Expense

$

128

$

143

$

410

$

420

Reference is made to the Combined Notes to Unaudited Condensed Consolidated Financial Statements contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.

Capital Expenditures by Segment

Three Months Nine Months Ended Ended September September 30, 30,

2020 2019 2020 2019 (1)

Houston Electric T&D $ 215 $ 239 $ 729 $ 722

Indiana Electric Integrated 77 46 191 135

Natural Gas Distribution 314 324 864 773

Corporate and Other 36 43 84 137

Continuing Operations $ 642 $ 652 1,868 1,767

Discontinued Operations - 14 21 61

Total Capital Expenditures $ 642 $ 666 $ 1,889 $ 1,828



(1) Includes capital expenditures of acquired businesses from February 1, 2019through September 30, 2019 only due to the Merger.



Interest Expense Detail

Three Months Nine Months Ended Ended September September 30, 30,

2020 2019 2020 2019

Amortization of Deferred Financing $ 7 $ 8 $ 22 $ 22 Cost

Capitalization of Interest Cost (7 ) (10 ) (20 ) (29 )

Securitization Bonds Interest 7 9 22 31 Expense

Other Interest Expense 121 136 386 396

Total Interest Expense $ 128 $ 143 $ 410 $ 420

Reference is made to the Combined Notes to Unaudited Condensed Consolidated Financial Statements contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.

CenterPoint Energy, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Millions of Dollars)

(Unaudited)

September December 30, 31, 2020 2019

ASSETS

Current Assets:

Cash and cash equivalents $ 185 $ 241

Current assets held for sale - 1,002

Other current assets 2,600 2,694

Total current assets 2,785 3,937



Property, Plant and Equipment, net 21,735 20,624



Other Assets:

Goodwill 4,697 4,882

Regulatory assets 2,150 2,117

Investment in unconsolidated affiliates 749 2,408

Preferred units - unconsolidated affiliate 363 363

Non-current assets held for sale - 962

Other non-current assets 226 236

Total other assets 8,185 10,968

Total Assets $ 32,705 $ 35,529



LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities:

Current portion of securitization bonds long-term $ 208 $ 231 debt

Indexed debt 16 19

Current portion of other long-term debt 1,114 618

Current liabilities held for sale - 455

Other current liabilities 2,492 2,655

Total current liabilities 3,830 3,978



Other Liabilities:

Deferred income taxes, net 3,575 3,928

Regulatory liabilities 3,480 3,474

Non-current liabilities held for sale - 43

Other non-current liabilities 1,486 1,503

Total other liabilities 8,541 8,948



Long-term Debt:

Securitization bonds 610 746

Other 11,336 13,498

Total long-term debt 11,946 14,244



Shareholders' Equity 8,388 8,359

Total Liabilities and Shareholders' Equity $ 32,705 $ 35,529

Reference is made to the Combined Notes to Unaudited Condensed Consolidated Financial Statements contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.

CenterPoint Energy, Inc. and Subsidiaries

Condensed Statements of Consolidated Cash Flows

(Millions of Dollars)

(Unaudited)

Nine Months Ended September 30,

2020 2019

Net income (loss) $ (973 ) $ 634

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization 909 1,028

Deferred income taxes (429 ) 8

Goodwill impairment and loss from classification to 175 - held for sale

Goodwill impairment 185 -

Write-down of natural gas inventory 3 5

Equity in (earnings) losses of unconsolidated 1,499 (213 )affiliates

Distributions from unconsolidated affiliates 109 226

Changes in net regulatory assets and liabilities (76 ) (101 )

Changes in other assets and liabilities 36 (511 )

Other, net 1 10

Net cash provided by operating activities 1,439 1,086



Net cash used in investing activities (683 ) (7,775 )



Net cash provided by (used in) financing activities (819 ) 2,708



Net Decrease in Cash, Cash Equivalents and Restricted (63 ) (3,981 )Cash



Cash, Cash Equivalents and Restricted Cash at Beginning 271 4,278 of Period



Cash, Cash Equivalents and Restricted Cash at End of $ 208 $ 297 Period



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