CNP - Earnings call transcript Q3 2017 | CenterPoint Energy, Inc.

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Operator

Good morning and welcome to CenterPoint Energy's Third Quarter 2017 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 David Mordy, Director of Investor Relations. Mr. sir. begin may you Mordy,

David Mordy

Distribution; CFO; Thank and areas. you, third President Welcome our are Executive be website, Gas Joe Senior Tracy, highlights President morning, of CEO; XXXX Vice under Bridge, the with President third Vice results Tracy and of be with Investors we and XXXX earnings us conjunction Electric good of provide and McGoldrick, Vice quarter Q&A on Executive our Prochazka, In our other Scott President will Bill found Natural Senior the everyone. discuss conference section using Division; our Doyle, and quarter President Scott key to on Rogers, centerpointenergy.com. of and [Kia] President available will portion and Also Energy which call. Services. and slides, be morning, Vice Scott call, this our call. Joe our will during can

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recent our impact variables or include guidance as most considers from to-date company such non-GAAP prices, range guidance and weather, such Enable's performance may business. mark-to-market commodity the of this in The significant that effective tax and such forecast and securities other the providing potential adjusted earnings proceedings, diluted losses share, impacts, regulatory changes as discuss for the or the or not tax XXXX. in Exchangeable also a guidance earnings, company's guidance, certain as Utility effective Energy that activities. considers throughput, Notes financing in will Subordinated accounting the value We related The does rate of measure change of uses accounting rates. In per Operations the factors and effects items, earnings Zero-Premium also timing and ZENS unusual standards stocks, range the Services or public judicial

found mention begins, being on to on call to turn replay this our this how the is Scott like be Information I’d recorded. would to access to can I Before like website. now that Scott. call over

Scott Prochazka

We year. Thank between joining year next for chime thank interest you And win Series in with and the Astros you know morning, Bowl you, good Super the in hosting Houston two. year the A the we little today. CenterPoint be would bit this to and in were Minneapolis thrilled for gentlemen. the World David. we And us ladies Energy. your earlier Thank mentioned in

the or adjusted last million $XXX net quarter four. share $X.XX This were and compared growth. revenue. million from income of per share, right-of-way third equity diluted higher third morning $XXX Increases in net of the more I earnings XXXX XXXX rate adjusted normal same of $X.XX by compared $XXX diluted weather, basis, of and return lower same year. are quarter benefits and were on last proud We or guidance customer or to or$X.XX of resulted income share reported amortization year. lower quarter share On per the than These $X.XX earnings a relief to and City a quarter depreciation will million, begin of $XXX with million, offset in per the and return, Houston. more diluted team expense proud serve per we diluted slide

these into they near range track versus of achieve are or lower on and the guidance inline are our at high earnings end XXXX. translated offset XXXX, third to our we While with quarter plan for

performed have finish far year quarter. in well the anticipate businesses and strong fourth this we so Our a

five, in natural and to days CenterPoint than natural Texas Texas coast. from their XX, many helped Their to employees, slide gas the I in worth like technicians made inches experienced our recovery on Arkansas, in vehicles as high and Harvey Friday period, some rain from a who flooding and August but crews adjacent I customers preparation landfall efforts. of brought lost and like Houston and In to and/or followed. all home year’s to along needs of four states more know Texas. weeks in thank would on offices Oklahoma dedication Harvey crucial ability a hurricane of to water respond remained contractors so would that electric XX over focused day in their you XXXX the to our our assistance region, the thank Turning to our whom electric gas colleagues seven rainfall our fellow of electric quickly the assisted were mutual Louisiana, over areas. impacted nearly customers.

with customers Small to relevant which work planning, of Grid as utilities continue helped remote direct designing, like nearly investments. I executed through allowed efforts to the assistance. and After produced after were restoration. our outage following restoring thank problems here, informed hurricane would benefits the well realized the in access benefits the CenterPoint utilizing to modernization years to as locations cities has crews accessible two Florida grid thousands ultimately grids these first also meters recovery Drones information These proud some quickly made also devices and Irma. us automation electric efficiently implementing specific communities. community who efficiently travelled are their orders to two the of accelerate damage, affected storm. to and crews offer restoration. power partners as serve, We keep information. intelligent decade provided the of we assisted volunteers to support last responders, us including investments for weeks isolate over significant and during enabling faster Distribution such and

$XXX Next, with six. compared Electric million core in will starting distribution cover highlights, of same on business operating quarter income I the in slide quarter $XXX XXXX and year. was Houston Electric third last to million the transmission

reduced this We weather year. quarter quarter third compared return are down in part large to of slightly and equity to due in last

which throughout of we of continue to of strong I Brazos also Connection electric We construction line. includes pleased this of metered project XX reflecting a this on We XX,XXX ahead schedule transmission am service XXXX, third five X% growth and customers year more the mile the our customer year see growth to growth. added quarter continue the are announce in since Valley territory. that period. our We than believe will level

annual XXXX. or relief Rate the made from first quarter cost and reflecting complete in effect of the to of in recovery went for September. settlement during expect the project increase million investments energize XXXX DCRF $XX We distribution factor into

of anticipate of We or Electric Houston TCOS after Additionally, we another transmission TCOS year next make as rate in filing recovery. reflecting in Connection cost of well recently the Valley April filed an service the million DCRF completion as filing for Brazos investments $XX will project. additional XXXX

of see Electric’s slide XX. please developments, year-to-date complete Houston regulatory a For overview

of an investment free to shift metro growth, Turning remain four year, a are Capital national requirements proposed continue slide capital to by create the port business growth is project $XXX incremental our support over will now continued industrial percentage is This the years the million capital plant forecasting gross product believe throughout and this next to partnership current occurring to Texas GDP point. plan. seven, transmission likely sector. totalling Greater reliability capital. is Earlier in to Houston’s year current It for we also robust. needs project our this Houston we capital expenditures. upward five will XX hardening indicative outpace that to The

industrial addition growth In growth, to is continue at residential expected to customer X%.

We our and are plan in requirements will XX-K. our the capital provide process capital refining of XXXX Form updated an in

into there across nearly benefit of to operating customer following of from [Technical customers of rates decline X% in was on territories. new eight, Minnesota, income approved distribution most October our into compared rates quarter made million same growth the million due our mechanism quarter business XXXX. $XX the service The with of with Turning or went in filing experienced rate approximately slight last to stabilization. and on first in this Arkansas, associated since $XX October In to We August. a formula timing effect jurisdiction year. was the rate third reported in addition that difficulty] plan rate In FRP X, primarily filing recovery annual interim natural solid of slide X. went gas XX,XXX effect

investments to keep five our capital our for an industry year complete regulatory capital listing XXXX distribution to and year integrity of upward Similar gas a will regulatory to distribution drive XX. anticipate updated an our gas see be electric help will plan we spending. our continue plan. These gas and pace norms for requirements. system in Safety business capital with For our XX please Form-XXK. distribution provided business, Similar will and in in electric investment upcoming five slides filings business, shift

of Turning million the of XXXXcompared income loss the the of Operating energy acquisition or million $X for gain of year to same million quarter Marketing and to quarter excluding last and included million a of in operating million a was expenses $X $X nine, mark-to-market third services AEM. slide $X to of Atmos Energy integration related in the income $X respectively. quarter

has see accretive this year-to-date and anticipated, the growth AEM As been modestly volume in opportunities we acquisition segment.

shows performed of quarter. their XX $X.XX Slide Enable highlights quarter investments compared X. third investments, XXXX Midstream $X.XX to the contributed diluted Midstream per last to call in share third Turning the period earnings this from the in November of diluted quarter same share some year. on per well

gas wells activity natural and partnership’s volumes XX marked their with gathered gathering for on rate systems. Enable continues quarter volume. third strong level The the their rigs processing gathered deliveries. drilling see a interest to quarter oil transportation to dedicated Crude average system highest of and

for We Enable continue is well to success. positioned believe

slide balance guidance our of we range to our the at performance given and XX, of achieving XXXX. high our for views for anticipate the end the year, or to Turning date near

to X% X% our We also The continued be to covered for to slide is status expect year-over-year the of range. review growth our ownership on XXXX end earnings investment upper at midstream XX. of

in are interest We our Enable. late-stage in discussions regarding

We our allow. comment business. can sales look reach market from we will will that constructively as agreement. for in our nor of not growing will come we on conditions we the units to serve public discussions as those not fruition, will for capital sell to of status then a opportunities core an delivery represent the Should unit activities Proceeds source energy

by conclude on me focussed the investment and base meeting through customer that growing delivery Let of energy timely remain needs reiterating recovery. prudent our we

the finish expect I well now to turn over performing are We to year-to-date Bill. the will strong a and year. call

Bill Rogers

of I the financial Thank of review impact slide start you, will with XX. hurricane a Harvey on Scott.

income balance a was an event Harvey for noted, our of sheet that, not company. As statement

cost estimate $XXX and is the current $XXX Electric will effort between restoration Our for Houston million. million that

third regulatory capital Remaining our programs. through proceedings. insurance mechanisms will through amount under general be cost either expect through rate will assets be claims covered that We and of next our property a or likely recovered case

costs have of majority to recovered property costs distribution. are the by We be gas we programs. insurance We million claims those will anticipate $XX will restoration estimating for that $XX under our million of

income with return EPS Rate provide XX. a period-to-period quarter. by our basis. return then declined growth million right-of-way Next, and and on million Core $XX was basis, quarter-to-quarter growth due $X drivers operating Houston primarily Usage normal in to into lower basis and slide favourable for segments, by a improvement I million to was and lower $X revenue, X% return. return by translated million T&D and for respectively Utility for a begin on and consolidated operating resulting revenue shown Houston excluding offset a On weather. chart I in the despite Operations from million distribution $XX weather, relief Electric more was better This guidance growth variance $X more reductions operating core continued income variance. on equity of business Electric on right-of-way the will followed a Equity to customer that work a revenue. million, our gas will million natural the increased Electric’s on the by $XXX view quarter-to-quarter miscellaneous equity negative to $X provide a basis change $XXX lower million. is lower a than income

amortization other million the more adjustments. was of normalization increase distribution and Usage to operating offset The million net $X XX, distribution of decoupling to and timing slide depreciation, The quarter associated the revenues revenue from year. compared third $XX were than same $X the $X primarily Turning increases with $XX to down the natural for from gas million income was taxes. gas due period rate for million of $X customer by growth. relief million business and in benefited in last million recognition use

adjustments, for of for to integration Higher $X in mark-to-market million XXXX. quarter quarter business and Energy of million the expenses third were of services Atmos to million operating energy $X $X Marketing. the related our of from income the acquisition of third primarily declined operating the Excluding result costs XXXX

utility other lower and from slide in previously include on EPS operating a XX. is decrease items $X.XX The EPS discussed of in a which and and in collection result to decline income, a taxes operations begins XXXX walk other return guidance utility in operations XXXX Our of equity income income. quarter-to-quarter basis $X.XX

growth, XXXX energy on $X.XX to third We and in contributions result strong services is EPS decline of the XXXX for from midstream XX. in the comparison our with Earnings to remainder year-on-year of quarter third quarter contributing from customer anticipate EPS growth. a guidance rate $X.XX decrease in as utility consolidated segment, Our operations. relief, performance all slide XXXX

$X.X in to continue expect billion to investment XXXX. slide Turning capital we in XX,

addition rating actions. Standard financial and rating see We CERC. pleased and revise A+ upgraded her September is Poor's & positive of In senior strength strong both Our a positive recent for evidenced Fitch and we’re sheet CEHE upgrade. in value secured the a agency to by balance notes to to outlook Fitch CNP

With tax investments previously XXXX. continue XXXX utility up XX%. a in $X.XX tax XXXX performance. the either full operations have to XXXX discussed are rate or we respect we XX equity improvement need income of our year increase slide This our XX% last although this time we year-to-date to objectives. performance forecasting we year for summarize versus As of In short, On and third rate to a well to $X.XX of improvement not quarter year. effective midstream full-year to-date from financial from strong us sets achieve anticipate

at $X.XX our commented to we As $X.XX be will a near Scott range we anticipate or earlier, high-end of XXXX. for guidance the

act. bill legislators at federal yesterday at work and our cuts that recognize we tax and are Finally, jobs the tax provided reconciliation hard reform the under

of that the turn over CenterPoint’s appendix I materials call. a we Although it's the take slides if premature tax on accompany position to now David. tax will investor this all back review in view the provided call at reform a have to eventual in

David Mordy

Bill. you, Thank

We to will time, I then one of a you call question follow-up. will ask the In now yourself limit the questions. open interest to

Operator

we At Please with questions. ahead. Bank this come Instructions] first will go of begin [Operator question from America. time, Dumoulin-Smith Julien The talking will

Unidentified Analyst

guys you considering? you payer, a strategies wondering know thinking talk the you’re taking about [Indiscernible] is tax Are This bit today. was could that maybe are the about �� appetite. of any I guys if you if absorbing tax cash are how question I there that some Hi. a little

Scott Prochazka

Bill, take to you want this??

Bill Rogers

tax to other deductions CenterPoint. accelerate And look like And recognition. that and revenue companies are Certainly, a opportunities do correct. at you for differ payer we cash we are

Unidentified Analyst

of about that tax the equity? any Are reform like at maybe beyond, there you strategies thought like looking course, tax

Bill Rogers

that we on at this certainly at a think strategies look with would in continue don’t comment have tax was to Congress. time I to respect proposals take the and we reform

Unidentified Analyst

Okay.

guys. thank -- you course Of

Operator

with from Evercore come will Please question ahead. Gordon go next The Greg ISI.

Greg Gordon

Good morning, Thanks. guys.

Scott Prochazka

Greg. Good morning,

Greg Gordon

Just have on right you’d an tax if it then have a that were I’ve I'm is around But I a please and large you understand sell a effective ongoing Enable trending through ongoing basis X%. if follow-up. got is. low, to cash correct follow-up quite understanding so, the manage. my you an basis you if wrong it tax And that question the hit me that now actual your basis such see on of rest from how to one that negative on And do decade?

Scott Prochazka

this I’ll as take well. ask to Bill

Bill Rogers

that last approaching XX%. XXXX, our cash This tax digits And was you’re X%. Greg, its to correct. mid year, single closer year or

Greg Gordon

any what be And no? you. forecast, like you’ll to of prospectively willing give can would look whether or Got you us sense that

Scott Prochazka

the rate XX%. time of it which I today course accrual over our longer will think approach is

Greg Gordon

to with question, contribution. out range, growth the that perspectively? Are what the Follow-up enables still Enable Thanks. comes our lay of that articulating convention you you regard is you that of a it contributor use that the guidance Great. when for range purposes the earnings target flat assuming assumption to underlying

Bill Rogers

if asking is and yes. or into to Greg, projections numbers. take We that their XXXX, roll about our contributions you’re the that answer their just

Greg Gordon

Right. But give aspiration? when longer-term guidance [Indiscernible] you a earnings your to

Scott Prochazka

like. XXXX believe of a to views a their in we’ve So, would done ago. we has And is couple look days they provided we’ve as relative what what of incorporate XXXX, what to terms given we Enable articulated view XXXX which

Greg Gordon

Okay.

So their public pronouncements?

Scott Prochazka

for income Yes. the given net XXXX. income They've of range for some indication

Greg Gordon

Okay.

that Now, to public wasn't clear just the be want it was that internal forecast, I that forecast?

Scott Prochazka

for forecast use We Yes. XXXX. their

Greg Gordon

day. much. very Have great you a Thank

Scott Prochazka

Yep.

Operator

question will Tudor Mitra next The with come from Pickering. Neel

Neel Mitra

morning. Good Hi.

Scott Prochazka

morning, Good Neil.

Neel Mitra

parts, Harvey to moving and asset with your the regards ROE for regulatory the given to you – is with be you’d year? O&M Hurricane eligible file this year? Houston be of to DCRF whether Electric what project some maybe to in going was and the question at First Just earned this moving

Scott Prochazka

Bill as the balance sheet that year-end will primarily the since to we our We return a anticipate or be another DCRF said driven. effects financial our below indicated latter anticipate we of storm way of [XX]. able that return be Neel, are file will

Neel Mitra

Okay, second great. then question. And

have businesses. relative you’ve going do and growth How lot have of you Now that throughput rate competitive that more the you around given your commentary that a Atmos forward through the qualitative to you forward? see kind going

Scott Prochazka

this great business. our So, see utility as we complement to a

digits this business the in words growing our kind overall about core in staying earnings see In percent we other growing. business of We – as mid growing. see our mix. same So, it's are core business utilities place. terms that are see businesses Today to contribution single our this growing we of as our other

Neel Mitra

And do a want business the as view hood? Or have just you that is overall at you organically going this it acquired how to your Okay. higher incremental your point with you've that segments want a have forward? acquisitions business of portion grow to you Is a under mix? it or

Scott Prochazka

It We’re certainly mass nice very the additions some this for pleased created made. business. we’ve with critical that for

we look are grow do work opportunities value fully on businesses. got creating we’ve that of for So some each M&A, comment integrate to but and absorb to our to don’t we this. But

Neel Mitra

deadline quick could look is last I there Would something just you it if Enable going another a Then ask to of Or question. is Great. don’t say comment forward? one up process going be should fair to we unless report? get milestone to there for kind progress definitive or that on

Bill Rogers

what process, it is. we come this communicate outcome the we end irrespective admittedly to so of we long this Neel, has of will Yes. as think been a the

Neel Mitra

you. Thank great. Okay,

Bill Rogers

Yep.

Operator

will Azar question with from Abe come Deutsche Bank. next The

Abe Azar

Thank you. Good morning.

Scott Prochazka

Good Abe. morning,

Abe Azar

time you sell not do stock and believe reach for be on cash? will you to transaction Enable, it another over that If you’ll a continue

Bill Rogers

would think transaction a way to price accomplish have be objectives. allow is answer all work the our it would a of that us I to best for cash that Well, to

be that think most calls cash would is cash said I something So, earlier on likely the not a transaction. transaction, a we outcome sale

Abe Azar

Okay.

change to that? So no

Bill Rogers

No.

Abe Azar

in And then, not transaction, the a that reach did if you on slight change languate we notice slide. your

slides the is evaluate public on there Enable opportunities anything a now to units. that? the more, QX some…? markets the to and that into going Is which You’re just I think, to Or pursue sell sell little read in bit of

Scott Prochazka

nothing to There’s No. into read that.

communicate same the as did we quarter. last to We’re message trying

Abe Azar

Got revenues you against a rate receive Or rate them reserve is that? increase? for And then, you it. do case, the the there Minnesota book as for interim

Scott Prochazka

book We on revenues do starting went interim rates effect the October when receive as Xst. we into them,

Abe Azar

Thank you.

Operator

The next SunTrust. with Ali question Agha is from

Ali Agha

Thank morning. you. Good

Scott Prochazka

Good morning, Ali.

Ali Agha

to clear. the like end Good the looking range six. or Does business four the Enable XXXX stays of of indicative just just The that be morning. assume assets Scott now? wanted Bill, is I high to that as transaction at right sort no

Scott Prochazka

Yes. correct. That is

Ali Agha

Okay.

clear to on Just that. be

few Utility be that on based Just have guys out ago slides put had year-over-year. earnings up and to you weeks there. basically already -- known $X.XX about because a measurable would by indicated [Indiscernible] some out that

still case that Enable? to imply would that exceed the to could that no change there mathematically likely If X% So you is would assuming the X%. that

Bill Rogers

Ali, it's Bill. good morning,

Wednesday for the approved as think I business services as it conference included equity electric out that out put it, flat has in that the referring rate put of some did in to to additional then think increases did rate in right September you Enable’s forecast and electric whereas our return. well any the known that events growth I say week. incorporate this and filed in relief relief that include put investor not you're at slides nor Then measurable our earnings you're business energy we an has and some gas had which we business,

of end All to of is, be of that will higher that we guidance. items the us saying say give the X% at which to those to comfort X%

Ali Agha

also just And Okay. to clarify.

from there downward we while to short perspective earnings is but So, timing term from in transaction the impact very assume should for either start or least would there reinvested? stock proceeds impact we the if at is on In because would term own. a earnings power? away that a of the happens, coming near if a the the your earnings as to think take Enable units be So that how about from a Enable, the down some go sell is to you sort transaction should for sale there at

Scott Prochazka

with start to Bill to color Ali, may want add this. it. little I’ll

in think as early to context way we would the I is or financial objectives. our be said -- this I was if our investors think would achieving whole the keeping it anything about on we of objective our did

through you. do still would for target our them out be we to laid So, whatever we objective growth as our would objectives continue we

Ali Agha

the And dividend well. as also

Scott Prochazka

is target. the Yes. That

Ali Agha

you. Okay. Thank

Operator

The next from come question will with Partners. Pourreza Shahriar Guggenheim

Shahriar Pourreza

Good morning, guys.

Scott Prochazka

morning, Shahriar. Good

Shahriar Pourreza

it. Most the of my side But questions and you point, the you you to CapEx today. potential. just do Freeport that Or sort on were And come the higher electric project? but K order on this envision we answered be to capital predominately the discussed wait to of to the the resiliency out morning in program at for Is that incremental appreciate discussed reliability have that? to get this

Bill Rogers

as Freeport from to hope end ERCOT and clearly we’ll large support the of year enter We associated early get the and Growth area. the in and assuming the is reliability are other a with component about that growth. process needs hardening that. opportunities But happens with investments by of year. we So in addition the PUC thinking that area to well and the next

Shahriar Pourreza

never have obviously Then right. you guy you it. just have Got trouble growing, -- don't had

So with know you envision sort of of electric about higher side, program to end capital the the beyond you gas what maintaining sort on when XXXX that you that do now? X% top X% of think

Scott Prochazka

outer the We our year-end at we But of are views haven't indications in years call. XXXX more preparing beyond at this to given point. our share any

spending what but good we’re for think prepared that we’ll So rate, support Certainly we the growth call. out future need be capital a that in at help like looks to our end the thinking. communicate year-end developing better

Shahriar Pourreza

Got I obviously responded it. They has Enable, And there. in proposal OGE their August XX. think then out just on, lastly still on

offer this of the in deadline outcome whatever has respond? you is the for what to to accept And that remind sort you OGE with? exceed what's us then, there So just process out

Bill Rogers

Bill. Shahriar, Right. its

You’re right.

has in XXX first offer. and -- So another need completed does are than days to August to opportunity and you greater within if by accept offer that be that to has offer may of offer as OGE right to right have a OG&E’s said. we be higher that XXX% We exercise

Shahriar Pourreza

Okay. Got it.

So that you XXth? days put around somewhere January XXX

Bill Rogers

that's I think fair.

Shahriar Pourreza

guys. Okay, again. Thanks great. Good morning,

Bill Rogers

Thank you.

Operator

question The will Charles Instructions] next Morningstar. [Operator with come Fishman from

Charles Fishman

morning. Good

ones. Just two quick

to the that as base T&D well addition provide projection on fourth gas quarter rate you’ll call? for natural CapEx as In of Electric your

Scott Prochazka

done some that in past. we’ve Charles, of the

We yet, our providing capital but will as as spending our projections what haven’t that, we put well together is. we think the on contemplate disclosure

Charles Fishman

then, And second quick real Okay. question.

less total million right on X as what did that year-to-date we’re Bill, you away down project that a goes revenue. had You lower? have that, is -- to,

Bill Rogers

we’re we for to think I quick looking see here available that you. number if have real

Charles Fishman

give the from If [Indiscernible] not, I’ll you. to

Bill Rogers

an answer. owe you We

Charles Fishman

work. week. will We’ll That next Okay. see it

Bill Rogers

Okay.

Operator

come The next question will with from Fleishman Steve Wolfe Research.

Steve Fleishman

Hi. morning. Good

Scott Prochazka

Good morning, Steve.

Steve Fleishman

an not stock So sure overwhelming there. that you're as just monetize Is for – of to any Enable on you where overhang it there event kind the I'm out transaction have Enable. in aware, there's on not looking – the consideration In do to scenario the a in it. have to because it market,

kind still curious So there I’m some thinking is about of that? just to openness

Scott Prochazka

mean for commodity, continue would reduce was variability, back that said, go opportunities I’ll in exposure our and I That to was space. our objective to investment in midstream, look to we to you as reduce Steve, our bring our to what that and respect still what initial in to exposure up by we’ve said market as of on extremely going units about conditions have very markets. mindful be valid the we the is to the in points we consider sale actually past of the

Steve Fleishman

any next is going guess of higher, capital this higher, XX% are probably sense could anyway to And you my is you maybe question how they updates give is Okay. little then some this give go, year, sense other the plan like a might there that that of terms just in of higher scale? I much

Scott Prochazka

would not I going mention, not finalized. go of to opportunities we’ve are to tell XX% it’s plan don’t disclose because enough just you the not not mentioned adjustment it’s we I mean, it’s are but higher also but that that. I the say going can and insignificant. have kind we significant this go yet not Well It’s are to – we looking

doubling a of So, our I but had characterized it current as not plan. capital meaningful

Steve Fleishman

you thank very much. Okay,

Operator

final Lapides question from come Sachs. Michael Our Goldman with will

Michael Lapides

capital hey being on up electric questions, of guys. gas Actually of Steve. first plan to the couple side? the on percentage all the basis, Yes, on the side see a as higher change following you Do or

Scott Prochazka

actually we at are to both the changes businesses. Michael, looking of

percentage say know segments. there for don’t they would I would meaningful be numbers the I both but like, So are what

Michael Lapides

And than more more out are CapEx a end multi-year or and you about it throughout first years? maybe it, it years in couple to in of the how more loaded give is because be the thinking is meaning when lumpier back plan, two you last ratable

Bill Rogers

replacement, front so business I extent investment. Bill. say we tends that that our of more into go of by percentage programs as or to and are think Freeport would program. electric The more gas projects its Brazos and a smaller amount. The be to business Valley levelized the that pipe biased capital about end large both and transmission gas total is we Admittedly as visibility Michael, or similar a the a visibility have gas higher electric capital that’s loaded such to that. have

of the the growth we Metropolitan biased the because business on Houston end So get area. we in electric the front see can

Michael Lapides

to been that about years what have close needed DCRF there? generate and lag, eventually in worried couple sting last about good you for will worry a but earning to cases rate will And level of the out that’s do kind Houston to you’ve authorized, to returns earning capital the on of you you able of beneath you’ve been like are all very incremental authorized, push

Scott Prochazka

it’s manageable. not to our worry that minimize time; I with regulatory point certainly about we help you’re this something regulatory lag correct think higher in us lag, mechanisms the increases. capital Well on very It’s at say margin that but

Michael Lapides

okay you much. guys it, Got appreciated. Much thank very

Scott Prochazka

Thank you Michael.

David Mordy

Michael believe the I question. And was final

interest thank you CenterPoint in your for everyone So Energy.

third conclude now great XXXX will day. Have call. quarter our We earnings a

Operator

CenterPoint third you conference concludes your This XXXX Energy earnings quarter call. participation. Thank for

You may now disconnect.

CenterPoint Energy (CNP) 3 Nov 172017 Q3 Earnings call transcript