CenterPoint Energy (CNP) 8-K Results of Operations and Financial Condition

Exhibit 99.1

For more information contact Media: Alicia Dixon Phone    713.825.9107 Investors: David Mordy Phone    713.207.6500

For Immediate Release

CenterPoint Energy reports first quarter 2019 earnings of $0.28 per diluted share; $0.46 earnings per diluted share on a guidance basis, excluding impacts associated with the Vectren merger

Company reiterates 2019 EPS guidance, 2020 EPS guidance and5-year guidance basis EPS growth target

Houston – May 9, 2019 -CenterPoint Energy, Inc. (NYSE: CNP) today reported income available to common shareholders of $140 million, or $0.28 per diluted share, for the first quarter of 2019, compared with $165 million, or $0.38 per diluted share for the first quarter of 2018. On a guidance basis, first quarter 2019 earnings were $0.46 per diluted share, excluding impacts associated with the Vectren merger (the merger). First quarter 2018 earnings, on a guidance basis, were $0.55 per diluted share.

“I’m pleased with our first quarter results. While weather-related impacts affected first quarter earnings, we remain confident in our anticipated 2019 full-year performance,” said Scott M. Prochazka, president and chief executive officer of CenterPoint Energy. “Our utilities continue to benefit from strong customer growth and recovery mechanisms allowing for timely recovery of capital invested on behalf of our customers.”

Business Segments

Houston Electric - Transmission & Distribution

The Houston electric - transmission & distribution segment reported operating income of $84 million for the first quarter of 2019, consisting of $74 million from the regulated electric transmission and distribution utility operations (TDU) and $10 million related to securitization bonds. Operating income for the TDU for the first quarter of 2019 includes $10 million of merger-related expenses. Excluding merger-related expenses, first quarter 2019 TDU operating income was $84 million. Operating income for the first quarter of 2018 was $115 million, consisting of $99 million from the TDU and $16 million related to securitization bonds.

Excluding merger-related expenses, operating income for the TDU benefited primarily from rate relief, miscellaneous revenues and customer growth. These benefits were more than offset by lower usage primarily due to a return to more normal weather in January, lower equity return, primarily related to the annualtrue-up of transition charges, increased depreciation and amortization expense, higher operation and maintenance expenses and lower revenues related to the Tax Cuts and Jobs Act (TCJA).

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Indiana Electric – Integrated

The Indiana electric – integrated segment reported an operating loss of $9 million for the period of February 1, 2019 through March 31, 2019. This operating loss includes $20 million of merger-related expenses. These results are not comparable to the first quarter of 2018 as this segment was acquired in the merger.

Natural Gas Distribution

The natural gas distribution segment reported operating income of $167 million for the first quarter of 2019. As of February 1, 2019, this segment includes the results of the Indiana and Ohio gas utilities acquired in the merger. Operating income for the first quarter of 2019 includes $53 million of merger-related expenses. Excluding merger-related expenses, first quarter 2019 natural gas distribution operating income was $220 million. Natural gas distribution operating income for the first quarter of 2018 was $156 million.

Excluding merger-related expenses, operating income increased $46 million for the gas utilities acquired in the merger. The remaining increase is primarily due to rate relief, weather and usage, driven by timing of a decoupling mechanism in Minnesota and customer growth. These increases were partially offset by lower revenues related to the TCJA, higher operation and maintenance expenses and increased depreciation and amortization expense.

Energy Services

The energy services segment reported operating income of $33 million for the first quarter of 2019, which included amark-to-market gain of $19 million, compared with an operating loss of $26 million for the first quarter of 2018, which included amark-to-market loss of $80 million. Excludingmark-to-market adjustments, operating income was $14 million for the first quarter of 2019 compared to $54 million for the first quarter of 2018.

Operating income, excludingmark-to-market adjustments, decreased primarily due to a reduction in margin resulting from reduced weather-related opportunities to optimize natural gas costs. Much of this reduction was anticipated given the very strong first quarter 2018 performance which concentrated annual optimization revenues into the first quarter of 2018.

Infrastructure Services

The infrastructure services segment reported an operating loss of $16 million for the period of February 1, 2019 through March 31, 2019. This operating loss includes $15 million of merger-related expenses. These results are not comparable to the first quarter of 2018 as this segment was acquired in the merger.

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Midstream Investments

The midstream investments segment reported $62 million of equity income for the first quarter of 2019, compared with $69 million in the first quarter of 2018. The decrease in equity income is attributable to anon-cash loss of $11 million from the dilution of ownership in Enable as a result of the vesting of common units under Enable’s long-term incentive program recorded in the first quarter of 2019.

Corporate and Other

The corporate and other segment reported an operating loss of $14 million for the first quarter of 2019, compared with operating income of $6 million for the first quarter of 2018. The operating loss for the first quarter of 2019 includes $16 million of merger-related expenses.

Earnings Outlook

• 2018 - 2023 target of 5 - 7% compound annual guidance basis EPS growth, using $1.60 as the starting EPS

• 2019 guidance basis EPS range of $1.60 - $1.70, excluding certain impacts associated with the merger:

• Integration and transaction-related fees and expenses, including severance and other costs to achieve the anticipated cost savings as a result of the merger

• Merger financing impacts in January, prior to the completion of the merger, due to the issuance of debt and equity securities to fund the merger that resulted in higher net interest expense and higher common stock share count

• 2020 guidance basis EPS range of $1.75 - $1.90

Both the 2019 and 2020 guidance ranges consider operations performance to date and assumptions for certain significant variables that may impact earnings, such as customer growth (approximately 2% for electric operations and 1% for natural gas distribution) and usage including normal weather, throughput, commodity prices, recovery of capital invested through rate cases and other rate filings, effective tax rates, financing activities and related interest rates, and regulatory and judicial proceedings as well as the volume of work contracted in our infrastructure services business. The ranges also consider anticipated cost savings as a result of the merger. The 2019 guidance range assumes Enable Midstream Partners, LP’s (Enable) 2019 guidance range for net income attributable to common units, provided on Enable’s 1^st quarter earnings call on May 1, 2019. The 2020 guidance range utilizes a range of CenterPoint Energy scenarios for Enable’s 2020 net income attributable to common units. The 2020 range also considers the estimated cost and timing of technology integration projects.

In providing this guidance, CenterPoint Energy uses anon-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 the ZENS securities and the related stocks, or the timing effects ofmark-to-market accounting in the company’s Energy Services business, which, along with the certain excluded impacts associated with the merger, 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 adjusted diluted earnings per share because changes in the

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value of ZENS and related securities andmark-to-market gains or losses resulting from the company’s Energy Services business are not estimable as they are highly variable and difficult to predict due to various factors outside of management’s control.

	Quarter Ended
	March 31, 2019						March 31, 2018
	Dollars in millions			Diluted EPS			Dollars in millions		Diluted EPS
Consolidated income available to common shareholders and diluted EPS	$	140		$	0.28		$	165	$	0.38
Timing effects impacting CES(1):
Mark-to-market (gains) losses (net of taxes of $5 and $19)(2)		(14	)		(0.03	)		61		0.14
ZENS-relatedmark-to-market (gains) losses:
Marketable securities (net of taxes of $17 and $1)(2)(3)		(66	)		(0.13	)		—		—
Indexed debt securities (net of taxes of $18 and $3)(2)(4)		68			0.13			15		0.03
Consolidated on a guidance basis	$	128		$	0.25		$	241	$	0.55
Impacts associated with the Vectren merger:
Merger impacts other than the increase in share count (net of taxes of $24)(2)		94			0.19			—		—
Impact of increased share count on EPS		—			0.02			—		—
Total merger impacts		94			0.21			—		—
Consolidated on a guidance basis, excluding impacts associated with the Vectren merger	$	222		$	0.46		$	241	$	0.55

⁽¹⁾  Energy Services segment

⁽²⁾  Taxes are computed based on the impact removing such item would have on tax expense    

⁽³⁾  As of and after June 14, 2018, comprised of AT&T Inc. and Charter Communications, Inc. Prior to June 14, 2018, comprised of Time Warner Inc. and Charter Communications, Inc.

Results prior to January 31, 2018 also included Time Inc.    

⁽⁴⁾ 2018 results include amount associated with the Meredith tender offer for Time Inc. common stock

Filing of Form10-Q for CenterPoint Energy, Inc.

Today, CenterPoint Energy, Inc. filed with the Securities and Exchange Commission (SEC) its Quarterly Report on Form10-Q for the quarter ended March 31, 2019. A copy of that report is available on the company’s website, under theInvestors section. Other filings the company makes with the SEC and certain documents relating to its corporate governance can also be found under the Investors section.

Webcast of Earnings Conference Call

CenterPoint Energy’s management will host an earnings conference call on Thursday, May 9, 2019, at 10:00 a.m. Central time/11:00 a.m. Eastern time. Interested parties may listen to a live audio broadcast of the conference call on the company’s website under theInvestors 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.

Headquartered in Houston, Texas, CenterPoint Energy, Inc. is an energy delivery company with regulated utility businesses in eight states and a competitive energy businesses footprint in nearly 40 states. Through its electric transmission & distribution, power generation and natural gas distribution businesses, the company serves more than 7 million metered customers in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas. CenterPoint Energy’s competitive energy businesses include natural gas marketing and energy-related services; energy efficiency, sustainability and infrastructure modernization solutions; and construction and repair services for pipeline systems, primarily natural gas. The company also owns 53.8 percent of the common units representing limited partner interests in Enable Midstream Partners, LP, a publicly traded master

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limited partnership that owns, operates and develops strategically located natural gas and crude oil infrastructure assets. With approximately 14,000 employees and nearly $34 billion in assets, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visitCenterPointEnergy.com.

This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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 regarding future earnings, and future financial performance and results of operations, including, but not limited to earnings guidance, targeted dividend growth rate and any other statements that are not historical facts are forward-looking statements. Each forward-looking statement contained in this news release speaks only as of the date of this release.

Risks Related to CenterPoint Energy

Important factors that could cause actual results to differ materially from those indicated by the provided forward-looking information include risks and uncertainties relating to: (1) the performance of Enable Midstream Partners, LP (Enable), the amount of cash distributions CenterPoint Energy receives from Enable, Enable’s ability to redeem the Enable Series A Preferred Units in certain circumstances and the value of CenterPoint Energy’s interest in Enable, and factors that may have a material impact on such performance, cash distributions and value, including factors such as: (A) competitive conditions in the midstream industry, and actions taken by Enable’s customers and competitors, including the extent and timing of the entry of additional competition in the markets served by Enable; (B) the timing and extent of changes in the supply of natural gas and associated commodity prices, particularly prices of natural gas and natural gas liquids (NGLs), the competitive effects of the available pipeline capacity in the regions served by Enable, and the effects of geographic and seasonal commodity price differentials, including the effects of these circumstances onre-contracting available capacity on Enable’s interstate pipelines; (C) the demand for crude oil, natural gas, NGLs and transportation and storage services; (D) environmental and other governmental regulations, including the availability of drilling permits and the regulation of hydraulic fracturing; (E) recording of goodwill, long-lived asset or other than temporary impairment charges by or related to Enable; (F) changes in tax status; and (G) access to debt and equity capital; (2) CenterPoint Energy’s expected benefits of the merger with Vectren Corporation (Vectren) and integration, including the outcome of shareholder litigation filed against Vectren that could reduce anticipated benefits of the merger, as well as the ability to successfully integrate the Vectren businesses and to realize anticipated benefits and commercial opportunities; (3) industrial, commercial and residential growth in CenterPoint Energy’s service territories and changes in market demand, including the demand for CenterPoint Energy’snon-utility products and services and effects of energy efficiency measures and demographic patterns; (4) the outcome of the pending Houston Electric rate case; (5) timely and appropriate rate actions that allow recovery of costs and a reasonable return on investment; (6) future economic conditions in regional and national markets and their effect on sales, prices and costs; (7) weather variations and other natural phenomena, including the impact of severe weather events on operations and capital; (8) state and federal legislative and regulatory actions or developments affecting various aspects of CenterPoint Energy’s and Enable’s businesses, including, among others, energy deregulation orre-regulation, pipeline integrity and safety and changes in regulation and legislation pertaining to trade, health care, finance and actions regarding the rates charged by our regulated businesses; (9) tax legislation, including the effects of the comprehensive tax reform legislation informally referred to as the Tax Cuts and Jobs Act (which includes any potential changes to interest deductibility) and uncertainties involving state commissions’ and local municipalities’ regulatory requirements and determinations regarding the treatment of excess deferred income taxes and CenterPoint Energy’s rates; (10) CenterPoint Energy’s ability to mitigate weather impacts through normalization or rate mechanisms, and the effectiveness of such mechanisms; (11) the timing and extent of changes in commodity prices, particularly natural gas and coal, and the effects of geographic and seasonal commodity price differentials; (12) actions by credit rating agencies, including any potential downgrades to credit ratings; (13) changes in interest rates and their impact on CenterPoint Energy’s costs of borrowing and the valuation of its pension benefit obligation; (14) problems with regulatory approval, legislative actions, construction, implementation of necessary technology or other issues with respect to major capital projects that result in delays or in cost overruns that cannot be recouped in rates; (15) the availability and prices of raw materials and services and changes in labor for current and future construction projects; (16) local, state and federal legislative and regulatory actions or developments relating to the environment, including those related to global climate change, air emissions, carbon, waste water discharges and the handling and disposal of CCR that could impact the continued operation, and/or cost recovery of generation plant costs and related assets; (17) the impact of unplanned facility outages or other closures; (18) any direct or indirect effects on CenterPoint Energy’s or Enable’s facilities, operations and financial condition resulting from terrorism, cyber-attacks, data security breaches or other attempts to disrupt CenterPoint Energy’s businesses or the businesses of third parties, or other catastrophic events such as fires, ice, earthquakes, explosions, leaks, floods, droughts, hurricanes, tornadoes, pandemic health events or other occurrences; (19) CenterPoint Energy’s ability to invest planned capital and the timely recovery of CenterPoint Energy’s investments, including those related to the generation transition plan; (20) CenterPoint Energy’s ability to successfully construct and operate electric generating facilities, including complying with applicable environmental standards and the implementation of a well-balanced energy and resource mix, as appropriate; (21) CenterPoint Energy’s ability to control operation and maintenance costs; (22) the sufficiency of CenterPoint Energy’s insurance coverage, including availability, cost, coverage and terms and ability to recover claims; (23) the investment performance of CenterPoint Energy’s pension and postretirement benefit plans; (24)

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commercial bank and financial market conditions, CenterPoint Energy’s access to capital, the cost of such capital, and the results of CenterPoint Energy’s financing and refinancing efforts, including availability of funds in the debt capital markets; (25) changes in rates of inflation; (26) inability of various counterparties to meet their obligations to CenterPoint Energy;(27) non-payment for CenterPoint Energy’s services due to financial distress of its customers; (28) the extent and effectiveness of CenterPoint Energy’s and Enable’s risk management and hedging activities, including but not limited to, financial and weather hedges and commodity risk management activities; (29) timely and appropriate regulatory actions, which include actions allowing securitization, for any future hurricanes or natural disasters or other recovery of costs, including costs associated with Hurricane Harvey; (30) CenterPoint Energy’s or Enable’s potential business strategies and strategic initiatives, including restructurings, joint ventures and acquisitions or dispositions of assets or businesses (including a reduction of CenterPoint Energy’s interests in Enable, if any, whether through CenterPoint Energy’s decision to sell all or a portion of the Enable common units it owns in the public equity markets or otherwise, subject to certain limitations), which CenterPoint Energy and Enable cannot assure will be completed or will have the anticipated benefits to CenterPoint Energy or Enable; (31) the performance of projects undertaken by CenterPoint Energy’snon-utility businesses and the success of efforts to realize value from, invest in and develop new opportunities and other factors affecting thosenon-utility businesses, including, but not limited to, the level of success in bidding contracts, fluctuations in volume and mix of contracted work, mix of projects received under blanket contracts, failure to properly estimate cost to construct projects or unanticipated cost increases in completion of the contracted work, changes in energy prices that affect demand for construction services and projects and cancellation and/or reductions in the scope of projects by customers and obligations related to warranties and guarantees; (32) acquisition and merger activities involving CenterPoint Energy or its competitors, including the ability to successfully complete merger, acquisition and divestiture plans; (33) CenterPoint Energy’s or Enable’s ability to recruit, effectively transition and retain management and key employees and maintain good labor relations; (34) the outcome of litigation; (35) the ability of retail electric providers (REPs), including REP affiliates of NRG Energy, Inc. and Vistra Energy Corp., formerly known as TCEH Corp., to satisfy their obligations to CenterPoint Energy and its subsidiaries; (36) changes in technology, particularly with respect to efficient battery storage or the emergence or growth of new, developing or alternative sources of generation; (37) the timing and outcome of any audits, disputes and other proceedings related to taxes; (38) the effective tax rates; (39) the effect of changes in and application of accounting standards and pronouncements; and (40) other factors discussed in CenterPoint Energy’s Annual Report on Form10-K for the fiscal year ended December 31, 2018, CenterPoint Energy’s Quarterly Report on Form10-Q for the quarter ended March 31, 2019 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

Use ofNon-GAAP Financial Measures by CenterPoint Energy in Providing Guidance

In addition to presenting its financial results in accordance with generally accepted accounting principles (GAAP), including presentation of income available to common shareholders and diluted earnings per share, CenterPoint Energy also provides guidance based on adjusted income and adjusted diluted earnings per share, which arenon-GAAP financial measures. Generally, anon-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. CenterPoint Energy’s adjusted income and adjusted diluted earnings per share calculation excludes from income available to common shareholders and diluted earnings per share, respectively, the impact of ZENS and related securities andmark-to-market gains or losses resulting from the company’s Energy Services business. CenterPoint Energy’s guidance for 2019 also does not reflect certain impacts associated with the Vectren merger, which are integration and transaction-related fees and expenses, including severance and other costs to achieve anticipated cost savings as a result of the merger and merger financing impacts in January, prior to the completion of the merger due to the issuance of debt and equity securities to fund the merger that resulted in higher net interest expense and higher common stock share count. CenterPoint Energy is unable to present a quantitative reconciliation of forward looking adjusted income and adjusted diluted earnings per share because changes in the value of ZENS and related securities andmark-to-market gains or losses resulting from the company’s Energy Services business are not estimable as they are highly variable and difficult to predict due to various factors outside of management’s control. These excluded items, along with the excluded impacts associated with the merger, could have a material impact on GAAP reported results for the applicable guidance period.

Management evaluates the company’s financial performance in part based on adjusted income and adjusted diluted earnings per share. Management believes that presenting thesenon-GAAP financial measures enhances an investor’s understanding of CenterPoint Energy’s overall financial performance by providing them with an additional meaningful and relevant comparison of current and anticipated future results across periods. The adjustments made in thesenon-GAAP financial measures exclude items that Management believes does 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 adjusted income and adjusted diluted earnings per sharenon-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. Thesenon-GAAP financial measures also may be different thannon-GAAP financial measures used by other companies.

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CenterPoint Energy, Inc. and Subsidiaries

Condensed Statements of Consolidated Income

(Unaudited)

	Quarter Ended March 31,
	2019			2018
	(in millions)
Revenues:
Utility revenues	$	2,161		$	1,894
Non-utility revenues		1,370			1,261
Total		3,531			3,155
Expenses:
Utility natural gas, fuel and purchased power		735			637
Non-utility cost of revenues, including natural gas		1,251			1,273
Operation and maintenance		861			569
Depreciation and amortization		313			314
Taxes other than income taxes		126			111
Total		3,286			2,904
Operating Income		245			251
Other Income (Expense):
Gain on marketable securities		83			1
Loss on indexed debt securities		(86	)		(18	)
Interest and other finance charges		(121	)		(78	)
Interest on securitization bonds		(12	)		(16	)
Equity in earnings of unconsolidated affiliates		62			69
Other income, net		20			3
Total		(54	)		(39	)
Income Before Income Taxes		191			212
Income tax expense		22			47
Net Income		169			165
Preferred stock dividend requirement		29			—
Income Available to Common Shareholders	$	140		$	165

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

(Unaudited)

	Quarter Ended March 31,
	2019			2018
	(in millions, except share and per share amounts)
Basic Earnings Per Common Share	$	0.28		$	0.38
Diluted Earnings Per Common Share	$	0.28		$	0.38
Dividends Declared per Common Share	$	—		$	—
Dividends Paid per Common Share	$	0.2875		$	0.2775
Weighted Average Common Shares Outstanding (000):
- Basic		501,521			431,231
- Diluted		503,944			434,008
Operating Income (Loss) by Reportable Segment
Houston Electric T&D:
TDU	$	74		$	99
Bond Companies		10			16
Total Houston Electric T&D		84			115
Indiana Electric Integrated		(9	)		—
Natural Gas Distribution		167			156
Energy Services		33			(26	)
Infrastructure Services		(16	)		—
Corporate and Other		(14	)		6
Total	$	245		$	251

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

(Unaudited)

	Houston Electric T&D
	Quarter Ended March 31,						% Diff
	2019			2018			Fav/Unfav
	(in millions, except throughput and customer data)
Revenues:
TDU	$	595		$	598			(1	)%
Bond Companies		94			153			(39	)%
Total		689			751			(8	)%
Expenses:
Operation and maintenance, excluding Bond Companies		366			340			(8	)%
Depreciation and amortization, excluding Bond Companies		93			98			5	%
Taxes other than income taxes		62			61			(2	)%
Bond Companies		84			137			39	%
Total		605			636			5	%
Operating Income	$	84		$	115			(27	)%
Operating Income:
TDU	$	74		$	99			(25	)%
Bond Companies		10			16			(38	)%
Total Segment Operating Income	$	84		$	115			(27	)%
Actual MWH Delivered
Residential		5,182,639			5,604,862			(8	)%
Total		19,018,985			19,643,755			(3	)%
Weather (percentage of10-year average for service area):
Cooling degree days		91	%		170	%		(79	)%
Heating degree days		90	%		93	%		(3	)%
Number of metered customers - end of period:
Residential		2,206,563			2,171,715			2	%
Total		2,494,761			2,453,844			2	%
							Indiana Electric Integrated (1)
							Quarter Ended March 31,
							2019
							(in millions, except throughput and customer data)
Revenues							$	83
Expenses:
Utility natural gas, fuel and purchased power								26
Operation and maintenance								48
Depreciation and amortization								16
Taxes other than income taxes								2
Total expenses								92
Operating Loss							$	(9	)
Actual MWH Delivered
Retail								704
Wholesale								58
Total								762
Number of metered customers at end of period:
Residential								128,194
Total								147,047

(1) Represents February 1, 2019 through March 31, 2019 results only due to the 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

(Unaudited)

	Natural Gas Distribution (1)
	Quarter Ended March 31,						% Diff
	2019			2018			Fav/Unfav
	(in millions, except throughput and customer data)
Revenues	$	1,399		$	1,153			21	%
Utility natural gas, fuel and purchased power		771			667			(16	)%
Gross Margin		628			486			29	%
Expenses:
Operation and maintenance		307			213			(44	)%
Depreciation and amortization		95			68			(40	)%
Taxes other than income taxes		59			49			(20	)%
Total		461			330			(40	)%
Operating Income	$	167		$	156			7	%
Throughput data in BCF
Residential		114			87			31	%
Commercial and Industrial		136			94			45	%
Total Throughput		250			181			38	%
Weather (average for service area)
Percentage of10-year average:
Heating degree days		103	%		99	%		4	%
Number of customers - end of period:
Residential		4,219,795			3,220,262			31	%
Commercial and Industrial		350,419			257,806			36	%
Total		4,570,214			3,478,068			31	%

(1) Includes acquired natural gas operations’ February 1, 2019 through March 31, 2019 results only due to the Merger.

	Energy Services
	Quarter Ended March 31,					% Diff
	2019		2018			Fav/Unfav
	(in millions, except for throughput and customer data)
Revenues	$	1,246	$	1,285			(3	)%
Non-utility cost of revenues, including natural gas		1,182		1,281			8	%
Gross Margin		64		4			1,500	%
Expenses:
Operation and maintenance		25		25			—
Depreciation and amortization		5		5			—
Taxes other than income taxes		1		—			—
Total		31		30			(3	)%
Operating Income (Loss)	$	33	$	(26	)		227	%
Timing impacts ofmark-to-market gain (loss)	$	19	$	(80	)		124	%
Throughput data in BCF		379		375			1	%
Number of customers - end of period		30,000		30,000			—

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

(Unaudited)

	Infrastructure Services (1)
	Quarter Ended March 31,
	2019
	(in millions)
Revenues	$	146
Non-utility cost of revenues, including natural gas		43
Gross Margin		103
Expenses:
Operation and maintenance		110
Depreciation and amortization		9
Total expenses		119
Operating Loss	$	(16	)
Backlog:
Blanket contracts	$	541
Bid contracts		455
Total	$	996

(1) Represents February 1, 2019 through March 31, 2019 results only due to the Merger.

	Corporate and Other
	Quarter Ended March 31,						% Diff
	2019			2018			Fav/Unfav
	(in millions)
Revenues	$	42		$	4			950	%
Expenses:
Non-utility cost of revenues, including natural gas		37			—			—
Operation and maintenance		4			(12	)		(133	)%
Depreciation and amortization		13			8			(63	)%
Taxes other than income taxes		2			2			—
Total expenses		56			(2	)		(2,900	)%
Operating Income (Loss)	$	(14	)	$	6			(333	)%

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

(Unaudited)

Capital Expenditures by Segment

	Quarter Ended March 31,
	2019		2018
	(in millions)
Houston Electric T & D	$	235	$	207
Indiana Electric Integrated(1)		37		—
Natural Gas Distribution(1)		166		93
Energy Services		3		5
Infrastructure Services(1)		19		—
Corporate and Other(1)		68		18
Total	$	528	$	323

(1) Includes capital expenditures of acquired businesses from February 1, 2019 through March 31, 2019 only due to the Merger.

Interest Expense Detail

	Quarter Ended March 31,
	2019			2018
	(in millions)
Amortization of Deferred Financing Cost	$	7		$	5
Capitalization of Interest Cost		(9	)		(2	)
Securitization Bonds Interest Expense		12			16
Other Interest Expense		123			75
Total Interest Expense	$	133		$	94

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

(Unaudited)

	March 31,		December 31,
	2019		2018
	(in millions)
ASSETS
Current Assets:
Cash and cash equivalents	$	255	$	4,231
Other current assets		3,164		2,794
Total current assets		3,419		7,025
Property, Plant and Equipment, net		19,512		14,044
Other Assets:
Goodwill		5,129		867
Regulatory assets		2,229		1,967
Investment in unconsolidated affiliate		2,471		2,482
Preferred units – unconsolidated affiliate		363		363
Othernon-current assets		779		261
Total other assets		10,971		5,940
Total Assets	$	33,902	$	27,009
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Current portion of securitization bonds long-term debt		347		458
Indexed debt		23		24
Current portion of other long-term debt		32		—
Other current liabilities		2,737		2,820
Total current liabilities		3,139		3,302
Other Liabilities:
Accumulated deferred income taxes, net		3,824		3,239
Regulatory liabilities		3,449		2,525
Othernon-current liabilities		1,515		1,203
Total other liabilities		8,788		6,967
Long-term Debt:
Securitization bonds		914		977
Other		12,845		7,705
Total long-term debt		13,759		8,682
Shareholders’ Equity		8,216		8,058
Total Liabilities and Shareholders’ Equity	$	33,902	$	27,009

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

(Unaudited)

	Three Months Ended March 31,
	2019			2018
	(in millions)
Net income	$	169		$	165
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		329			320
Deferred income taxes		(14	)		(17	)
Write-down of natural gas inventory		1			1
Equity in earnings of unconsolidated affiliate, net of distributions		12			(9	)
Changes in net regulatory assets		(3	)		42
Changes in other assets and liabilities		(218	)		(20	)
Other, net		(5	)		2
Net cash provided by operating activities		271			484
Net cash used in investing activities		(6,539	)		(331	)
Net cash provided by (used in) financing activities		2,345			(192	)
Net Decrease in Cash, Cash Equivalents and Restricted Cash		(3,923	)		(39	)
Cash, Cash Equivalents and Restricted Cash at Beginning of Period		4,278			296
Cash, Cash Equivalents and Restricted Cash at End of Period	$	355		$	257

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.