CNP - Earnings call transcript Q3 2018 | CenterPoint Energy, Inc.

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Operator

Good morning and welcome to CenterPoint Energy's Third Quarter 2018 Earnings Conference Call with senior management. [Operator Instructions] I will now turn the call over to David Mordy, Director of Investor Relations. Mr. Mordy?

David Mordy

Thank you, Catherine. everyone. morning, Good third our earnings call. conference Welcome quarter to XXXX key and Executive our with Vice Scott on quarter Prochazka, and Vectren. Rogers, CEO; and other highlights provide discuss President President pending Bill CFO, results and including areas our XXXX merger third will be call. Also will morning management, this Q&A the us several members during with the portion of are who available of our found our we with be using be our website, can on section call, will under conjunction Investors In which the centerpointenergy.com. slides

and factors you information forward-looking the that and to information These discuss available projections will subject factors Actual in differ the post will results are used risk to and conditions risks the of announce the our our on we contain or our on uncertainties. variations, website. website. materially certain important including section material in future, of They've guidance based SEC to non-GAAP today’s In regulatory using forward-looking our to currently Today, growth, information call, our encourage and to as earnings Form posted are beliefs, reconciliation may refer assumptions, in prices, noted topics based note communicate continue management. channels management’s news and to that earnings information these review a For statements could that management webcast, to releases, territories, information on has measures use changes Please our other website been our will filing, service Investors and providing upon we commodity weather filings. XX-Q. and economic please actions, release calls, news in SEC our public conference slides.

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

slide, reform. law Act, call in or introduced we’ll accompanying public TCJA simply During Cuts initially refer number Tax today's to the Jobs and XXX-XX the tax as as and

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

Scott Prochazka

an the Thank Indiana in as XXXX. will Regulatory the and to Thank closing activity. your us of for Utility continue five joining pending slide participated first Vectren today the you, with target with and on with In merger I David, Energy. start October, Vectren informal well as Commission financing the for good morning, and you in you CenterPoint ladies interest update and merger thank on gentlemen. in we quarter recent hearing pending

XXXX the both as CenterPoint needed targets merger Our anticipated with reduce phase. in financing color design work from financing pretax EPS the million planning will line to rate merger that potential teams XXXX. million well in budget. and our our provide that the through at components results of equity capital fixed the These believe financing integration by our completed help are additional the financing in teams combined equity merger earnings as the progress strong in benefits Bill they debt on October. $XX potential. for We will are as the drivers of for hard $XXX place have now

slide to for six, We the XX% conducting to our a increase CenterPoint X% in anticipate are to XXXX want currently capital a versus Turning to processed XXXX annual XXXX XXXX we provide preview. capital plan. plan and I to review investment the

call. updated also further capital plan each partially of will capital on expected on our provide Freeport expenditure We include master by that increases fourth detail business plan in XXXX quarter is project, and we updated our anticipate Form driven plan our our spending will the XX-K the increase across CenterPoint segments. earnings but The

we the after are will plan Capital one Vectren updating Expenditure be We reviewing company. until not or

the Next, quarterly cover I results. will

federal spin. operations midstream income were These investments, to for Vectren, were share by XXXX. with diluted merger $X.XX share of offset On per transition a basis, million share of earnings $XX associated we seven, of basis the charge quarter of share, compound amortization depreciation Turning XXXX relief, assets X%. with diluted return non-cash to O&M per during expect tax million due third of solid of O&M investments internal or rate or largely compared compared to $X.XX is in to guidance will third annual multi-year utility and a were with our net and XXXX are expected shareholders morning, XXXX. the growth associated related $X.XX rate diluted quarter a a a line with lower or period, Midstream and that quarter annual state excluding the expense further on comparison had well utility third in this for timing, with million and with the midstream benefits and equity Generally, rate of utilized expected XXXX. common impacts XXXX inflation. within to be no to longer or associated tax tax quarter available primarily deferred The compared Increases strong O&M to diluted earnings that with both were we earnings income quarter, quarter quarter of elevated as $XXX the million Bill period operations maintenance as XXXX that be per to charges. later after Slide operations the approximately $X.XX and large it $XXX line in higher customer per with third both to the XXXX this $XXX in reported expectations. after million quarter due growth be to the pending trueup discuss in third and third $XXX increases to XXXX posted is part our guidance over tax his the remarks. reform, in

the keeps Vectren. of range associated guidance result, a merger performance end us As on $X.XX quarter for pending to with to our $X.XX excluding the impacts with high third achieve track XXXX,

continue are growing reliably on customers, implement needs which strategies, to performance. segments safely business their financial our Our and of focused enhancing addressing while the

cover $XXX third will with and core XXXX. starting million Electric Turning operating business the to $XXX highlights distribution Houston million income in in the compared Slide was transmission XXXX I Electric. quarter of to third eight, quarter of

continue growth service the We since adding last third metered of electric see in to XX,XXX year. our quarter more than customers

PUCT our of became $XX an Freeport third front, ERCOT recovery masterplan effective route million. the in is of investment expect million. annual of We our September. transmission filing regulatory $XXX certificate recent convenience The the $XXX September filing this annual that of XXXX. selected quarter in PUCT million our investment The early as in anticipate increase an for July a as recovery the the the increase cost to providing for has $XX distribution range project most from effective of the necessity estimate months. project, On be with decision and filed in and next completed million which by largely requested which will PUCT within three will the review be driven the we became We

Electric strong is performing expectations. current year a in update please filings, see is a For having line full with and of regulatory XX. Slide our Houston our

Slide million in quarter XXXX to in gas operating distribution the third Turning XXXX. income of million the natural compared quarter $X to nine, was of third $XX

$XX XXXX, to of compared the million to million operating operating on in customer quarter XXXX additional respectively. see quarter largely to since Services income $X million with Year-to-date compared third services’ XXXX growth performing in of the Energy expense was distribution solid for addition gas Energy nine XX,XXX excluding in the our a quarter expectations continue compared is target timing last and million the well income of operating to $X gain $X as during of color mark-to-market $XX XXXX. year. to for Overall, customers the by issues. third year. of third and remarks. of of million quarter provide core meet first Bill months $XX income impacted will nearly of is is million Increases his last third are natural We

call Midstream XXXX. quarter income in Enable’s quarter On third target see of value we've investments some Energy from diluted Services highlights compared of reiterating per per produced feet $XX highs oil recently our to May $X.XX XX share billion time one XXXX, acquisitions third diluted million continue and XX, the million by to pipeline one $ the for captured Slide in liquids and a at day. Enable since precedent natural the on were announced crude of a point line earnings cornerstone natural is that per formation Gulf and shipper November Quarterly processed, gas backed gas Xth. gathered quarter in to of the operating We $X.XX of from cubic contributed with third of XXXX. all volumes gathered agreement Enable's for share our core XXXX.

that agreements in contractual Williston in for crude a expansion oil and the investment systems capabilities that Basin, gathering a addition, of presence in establishes in there announced Basin In increased Anadarko an water and they substantial gathering credible region. the

with We earnings most are and Enable the provided call. midstream investments guidance their pleased performance XXXX with our on recent

to Turning XX. Slide

to XXXX. We relative to growth forecast strong continue earnings

utility For energy time $X.XX contributions We last earnings we and growth. will this year-to-date of earnings drive rate services ahead from growth year. at guidance relief are from Enable were and continue anticipate we where to that our EPS, customer

EPS high impacts with to are reiterating merger pending $X.XX range at guidance our XXXX end associated Vectren. $X.XX excluding of with the We the

permanent quarter our the to of XXXX with [ph]. earlier, and integration financing merger mentioned to first I the make As continuing we in expect teams close progress, complete,

for set Power was in ranked larger the base We the second customers of products. competitive customers satisfaction complementary growing to a year drive our customer straight businesses Region our serve with Recently, a business survey. residential are recognize broader of first energy and excited of combined are We delivery about excited gas that businesses. and utility the South CentrePoint our regulated we nature J.D.

With more earnings dedication call X a XX million opportunity financial unique to I now footprint will have I the our states, want discuss all centric, service Bill we future. turn working has customer the company in thank resulted leading a technology employees become eight results. our energy the a competitive over while also delivery in to customers, states nearly in strong utility businesses to in [ph]. than customers and safely which to business for call of and to efficiently, their Bill? segments our our continued focused and

Bill Rogers

and that for Scott. will Thank is our elements operating pending utility the XXXX the Distribution segments. in merger range, income end follow guidance with you, with the help will a basis. associated start guidance impacts give Electric understand My walks us Natural and this EPS with to I with confidence our on Distribution intent investors of EPS Gas drivers I achieving operations, business quarter-to-quarter excluding consolidated for Transmission high Vectren.

million of and adjusted adjustments merger associated of our and Services assets items pre-tax two stocks. also $XX guidance liabilities mark-to-market dividends, with the impacts million Series business our asked Energy net A with GAAP Vectren. of at ZEN securities Preferred the associated for with mark-to-market EPS. $X our have pending are to I related We costs EPS Stock, plus and will requirement determine Those exclude the

and result $XX $XX a tax operating income this tax Accounting net below reviewing and When quarter of resulted benefits variance million. unfavorable we expense. million customer Standard income, Houston reform. earlier Electric's, of Rate revenue revenue by impact for noted XXXX, federal a of Hurricane income quarter by part revenue translated compensation Slide benefits party labor preventive operating third had million impact it the of provides an in decreased in another vegetation in of of Much lower into favorable the $X is the on in in operating line. walk for services, variance. result increases in retirement maintenance, O&M timing related. Beginning quarters, is revenue increased certain third primarily claims. XX, amounts and growth as this This offset the of income XXXX. million a the for the income is As relief variance influenced positive costs, management, as moves increased Harvey O&M with $XX adoption as support

that of expenses from expenditures lessons charges operating Equity catching learned result last deferred, true up our up been a hurricane. to year's have We resiliency the increasing were $X increase real as on million. return related well of as transition as

taxes and for $X depreciation variance. Lastly, million unfavorable accounted

Electric’s our expectation return equity by on quarter-to-quarter of and decreased reform basis. tax is performing the a impacts Electric million line with Houston $X operating Year-to-date, Excluding for adjustment, Houston XXXX. in income

Distribution offset This largely Turning million a Gas period quarter $XX of to labor accrual slide third operating to $X as and to Natural was informative result the million $X versus same comparison the O&M Revenue tax and decreased for a and quarter year. normalization positive million income quarter XX. higher for expenses. is million trends. last of was a This $XX annual income on costs Operating positive $X is to from third and was reform. customer income million. believe as We decoupling line. due $X variance relief, to services, increases by O&M expense in benefit due maintenance a XXXX. variance benefit $X net the million contracts income a recorded tax basis support included growth the quarter-to-quarter On and operations lower quarter from million not in other services, of rate by

were column to Some other expenses compared quarters certain timing variance benefits In quarters XXXX the the is same in XXXX. in related. in other or the of incurred

of million $X $XX the income taxes expectations. operating adjustments natural technology decreased for Lastly, to operating in Distribution a and were margins third quarter from and primarily CES track optimize Operations Services $X in operating million to also core of services million of supply negative excluding to Natural Energy sales third quarter line incremental with Year to-date XXXX. remains expenses higher and XXXX. $XX a to increase support opportunities loss, costs contribution the million reduced versus gas segment were which favorable on depreciation performing Margin was volumes. expenses. income maintenance is mark-to-market due million legal, due in variance. Gas our $XX and

quarter-to-quarter utility EPS walk slide is XX. on operations on Our guidance a basis

the connected quarter Services inclusive We core expense equity third financing. for the return. income our and in of charge of excluding acquisition was will start merger with XXXX Energy $X.XX the flat, and Interest related for expense with $X.XX excluding subtract operating interest

in benefit Next, $X.XX our tax the a we tax of segment excluding to improvement $X.XX includes of of lower for Midstream on return result federal income of related $X.XX includes $X.XX of from the $X.XX Other of brings improvement XXXX. and the spin rate. operations segment. equity This of in had us of gas as Other also a other. internal the quarter EPS impacts utility spaces a third guidance merger charge

consolidated including on the a increase of year-to-date We delivered variance Slide we senior financings, of associated on EPS mandatory a and operations. unfavorable now negative for merger. will With forward track stock EPS to EPS increase. the are short, ending preferred even the for to-date investments recent Midstream. of had available the third capacity; $X.XX guidance at net XXXX EPS $X.XX we quarters $X.XX guidance investments commercial primarily improvement operations close we including paper to quarters stock, comparison and $X.XX high-end credit combination of XX, $X.XX year-to-date Midstream $X.XX preferred financially XX, consolidated an of convertible slide with a a XXXX. and position Energy our In segment with XXXX expense segments. The to comparison in a going the XXXX with $X.XX Energy mark-to-market first the three due first $X.XX have debt gain. this improvement and the starting a utility total XXXX, meet a Our are is for for through the guidance quarter interest the third On range. and stock, notes quarter of Utility performance three XX common Centerpoint year-to-date. of ending Services well a in were cover variance $X.XX improvement for year is at Electric $X.XX our that the quarter-over-quarter and our XX% $X.XX revolving shows down we in slide the strong with starting mark-to-market with note Midstream utility

the September. Enable spin. the out of a Moody’s early from result accounting as the and The to BaaX on Centerpoint Midstream in completed was to tax legal, Fitch offerings BBB+ a successfully significant professionals. like investment treasury CERC’s the All and our upgraded as required of well offerings. credit we team in of I be would as and spin update spin. rating our of equity group, respectively CERC these internal all XX effort command slide completing provide an On on

with On asset potential deferred we per our in We spin tax charge the by and took slide net reducing XXXX not million anticipate the share. tax of $X.XX diluted on Centerpoint XX, Associated equity XXXX XXXX. reduced drivers issuing $XX in a basis. income line guidance non-cash the do expense and a the provide EPS of

mentioned, investments to the we plan XX% XXXX anticipate XXXX to for to relative Scott our XXXX increase plan. XXXX capital As X% will to the

have integration pretax XXXX. our $XXX potential Our in targets savings opportunities teams to and earnings line million $XX in with by million from commercial cost anticipated

increase to details tax effective rate in the XXXX we positive forecast performance filing objectives, from on potential in for conclude updates anticipated and cost businesses Energy same XX see our XXXX, of report consistent Midstream, plan, of annual per we is to that our over $X.XX. turn through with business in XX-K. on with EPS of an quarter guidance the call recently update our merger of lists X% annual over form stock. to declared conjunction competitive will back Slide These EPS some noting XXXX call information relative $X.XX earnings David. of our capital with the well two-year overview XXXX $X.XXXX our common have momentum last approximate business. X% momentum we savings, intend the years. range their projected now would Enable expectations. include Vectren’s we fourth as I ago in flow in five-year competitive anticipate to share Further, We Centerpoint on as Enable’s XXXX. by and our are recently I’ll dividend our that continue competitive the dividends please several year-to-date our This Therefore, performance in increases announced

David Mordy

Bill. you, Thank

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

Operator

this will first comes from I we time Your of Lynch. Merrill Dumoulin-Smith the do [Operator apologize. question. At Bank with begin taking your Instructions] is of question open. line line America Julien Julien,

from line is Julien, next comes line – open. the Your question your yes,

Unidentified Analyst

Hey, sorry about that.

We is having here. the [Indiscernible]. me? He an at issue mute on you are Can This hear is moment.

Scott Prochazka

Yes. We you. hear can

Julien Dumoulin-Smith

Sorry if a IT of bit first our [Indiscernible]. side wanted guys. just about question here you the to Had that on on CapEx can. little follow-up Anyway,

XX%. plan about about talk spending You above X% here? transmissions What of initial some you to and in all of the beyond terms the is talked have

Scott Prochazka

you themes of capital already or Those the business maintenance Master of Julie addition -- Freeport elements in the major plans with Plan. and around a replacement capital about, plan out, growth. the that expenditure as will pointed what review we’ve capital impact the it’s it’s and talked other our So, consider I are to would but normal project respect more infrastructure to

Julien Dumoulin-Smith

Does of investment on opportunities here. all bit Enable? wanted greater also And seeing the the been your here? shifted longer of including cash some Excellent. obviously, business, potentially that thinking reinvigorated there’s variety it. elements a here little side follow-up to contributions flow a different then, And term Enable Got certainly about we’re

Scott Prochazka

reinvigorating, seeing? you the Enable is about you’re that when And say talking opportunities

Julien Dumoulin-Smith

back then Yes. ultimate was your into back opportunities, cash that the how acquisitive pocket? flow, into the organic translates and It opportunities

Scott Prochazka

this. Look, I characterize would

as need doing. sell to We We are what opportunities. have Their and a recent to of core we no is are those think any over is very as to mentioned presented these on earlier we performing the XX-month sell opportunistically they -- said, performance are how may we opportunities, see well pleased that the looking they take their certainly being but as pleased based growth performance into Enable well are we units see the XXXX to growth these if were that units Enable I very there That coming with road opportunities opportunities. period. and business down

Julien Dumoulin-Smith

just Excellent. one And last clarification. quick then

Would to forma pro or close. talked You going XQ? a expect holding an update a close to fuller out as about update as you we’re are XQ to provide like with soon you

Scott Prochazka

we have close get we begin to Well, access the information to and before really process. that

is anticipate what our there close will prepare time which you period reasonable when will call So time what give a and to be described. us fourth have we between quarter we of

Operator

from next Your of Michael with line the Suisse. question Credit comes Weinstein

Unidentified Analyst

Hi. It’s actually [Indiscernible] for Michael.

Scott Prochazka

morning. good Hello,

Unidentified Analyst

question. morning. good I the Yes, quickly follow-up to on taking merger. Thanks the Hi. just for want Vectren

that that XX this exercise the would where So planning integration for you XXX, are point? position of to had, range in point the at exercise -- or to you've that you to that anything share in are

Scott Prochazka

Yes.

We’re not level and really perhaps the the it good target in stronger I’ll are team is in we target share than call phase, in when the confidence position what to we've was of design share other or that established is range earlier. the middle for given that that of than say we’re the

what think and greater a detail after that to chance looks have So, work is describe some position in we in that what share we We’ll merger a are. with – be what with our line we we’ve much like you. in doing their better to seeing we’re expectations when we’re

Unidentified Analyst

great. That's

on quickly that too. So,

your So that third maybe on guidance of view on in their XX? that business? business have in what you given the updated kind quarter embed – Vectren outlook XXXX at you VISCO And you the have VESCO slide for results how

Scott Prochazka

Yes.

our We view than not updated to using. were other that what believe have we

just appropriate. is good. And their and their and was good very described They had performance call earnings we’ve potential XXXX their is results. share in our As their initially still earnings backlog

far what are and we very be very basis in which on continue we XXXX so had -- our So the accurate. believe optimistic still we -- that built for our to estimates

Operator

of Bank. next Abe question from comes line Azar with Deutsche the Your

Abe Azar

morning. Good

Scott Prochazka

morning. Good

Abe Azar

the still the and on financing narrow XXXX updated it of it range. wide or it? given Why the you when up my is so execution Just following

Scott Prochazka

Yes. going been many We’ve new through planning felt about there. of of view one resolved. other in to variables obviously as have of variables and know there, capital do XXXX a answered we we’re wait thinking we’re on it But these consolidated other the single is best and we after variables

are but taken we one finalize the right. of So that variables are to there out, We’ve to able or we range. revise things you tighten before want other be that

Operator

question Your JPMorgan. line the next comes Turnure from Chris with of

Chris Turnure

Good have morning, a on question the and I guidance XXXX Scott Bill. slide as well.

I think I questions, prepared confident on you answers estimate? versus your heard through there of still could your within despite and some your the higher that how original us you have your range, embedded comments maintain some you that there equity the walk to there can in of pieces but remarks how moving layer can the previous maybe

Bill Rogers

with Chris, with good you well some the Scott as of the impacts. on We morning, it's his mine, slide shared remarks Bill. shared and you in as

year-end Vectren opportunities we slide. yet equity the of financing forward and as and complete commercial greater for And rate associated yet investment. line and the we our call. at tighten views planning need EPS that's our have be provide and of the completed guidance will and the what synergies look update we which have to will But our complete with to which to the pending correct we’ve you potential to [Indiscernible] base XXXX would are that merger You of top capital on

Operator

line comes with question Agha SunTrust. Ali the from next of Your

Ali Agha

morning. Thank you. Good

Scott Prochazka

Good morning, Ali.

Ali Agha

can well may give don't from to regards on commentary opportunity question had us Enable, you also necessarily overall of you question But as and That's if how over push there Enable CapEx, that, two the proceeds your longer separate remind could two, two are fact off, it sense business, longer you’re next that that? with growth the Good strategic one. as number do changed well? fair just us thinking some is your that a updating as exit number is the unrelated you first thinking as assume need questions. to look beyond years, to as but morning. bit could you’re have couple your and the And – said any the term you no questions. that for to maybe about XXXX you rate time you So I

Scott Prochazka

with start quick. can latter fairly question answer one I’ll I because that the Ali,

and We have a and merge end planning through beyond the we can get integrated not XXXX. process, thinking any of because year XXXX, we provided position a growth respect suited in guidance better when more determine we’ll rate with to beyond to provide the go be to to we we’re

So the would that that's the get answer to second question. I

Your was would changed. strategic interest there, about our And mentioned you in as think no, first question Enable I Enable. I in is say it not.

some We continue to have accomplished that. exposure merger the here less this of our By to of believe objective is we that segment. to Midstream virtue

of the to are market be into the We and percentage going redeploy a allow monetization have other of the investments, drivers will investment less have and that us. position the the in said that opportunities needs past capital for the constructive opportunity conditions exposure as to we period for those we to be as around We’ve to Midstream longer over time. segment. considerations reduce But our will continue to that look and

Operator

line Khan next Your from Ashar the comes of question Veriton. with

Ashar Khan

a bit of assumptions the was Can little financing for morning. just what XXXX? apart assumptions since just exactly you -- Good have can tell guidance for from us given changed the

Scott Prochazka

We comments. we the do in that along. from forecast our assumptions We the all financing still internally the what have. of We that forecast described or haven't the point know somewhat I is. have in using information been that to know we've will the of part the change That's just that. relative my Vectren So, capital any at outcome this changed now that update addressed we

variable a be would change. that So that would

Ashar Khan

Okay.

so… being So input that into is that yet, right, not analysis

Scott Prochazka

That correct. is

Ashar Khan

you Thank okay. Okay, much. so

kind of So you.

Bill Rogers

You’re welcome.

Operator

Lapides comes question of the Goldman from next Sachs. line Your with Michael

Michael Lapides

guys. Hi,

what if growing not to a Houston. on focus the lot really fast there's listening looks of like to a have it be a Just in lot seems as questions you of utility known

Do curious, you year it different at question set five-year Houston your to demands trying the the you That's this see for maybe What of mean views guidance? and the to that to is one. scale over view and us don’t beginning your gave quarters first you at weather Question the years what next of Houston to is rate? big but now do growth, project, meaning, do think the end normalized investment time the size the relative last when just power relative two, in I’m So you think what three year historical in of opportunity year? the and the talk was for longer last think you can how term. about into your distribution with couple transmission is I or run

Bill Rogers

it’s Bill. that. pick and think with I’ll I CapEx demand with will morning, good and up about start then Michael, Scott talk

would I through period, worked housing have and it’s ended of most and residential XX-month is June consideration consideration period XXth comment the XXth. accelerated meters Harvey respect relative residential to housing September the that to in So we translating with XX-month into has now the begin

You’ll those XXth. end end and see, compare September June X.X% if for was you XXth figures, of it of X.X%

it weather per our on depending you’ll of up a period are a count meter seeing in increase use, pick you somewhere again. normal year. to less to had will that X% X%. weather We’ve meaning in a want look at be decline, modest customer sales had if volumes, normal we We’ve X% the And use So year. total than

the jobs to and whole. rate rate the much a about are looks and Texas, various you've add and That Houston country service territory industrial to data economic moving continues all reading a close in unemployment good load for we at and been in commercials the on is People our Texas continue facts there. So in nation. if employment faster to relative to as large be here

Scott Prochazka

I’ll investment opportunity, suggest blocks because in residential of think just capital would and see that Michael, commercial we gave Bill even lot space. to what's the add a I industrial driving building strong but the continue and in growth

of much capital around as in and planned will around the we area is thing. make investments Houston of well have as So type growth, maintenance, that resiliency around the that

industry one things; as it of slight residential gave to tick completion bit little units, of or we the wave because about up. that ago, community start we year slowing a the in from a did that came account. now that a seeing we, is We had believe was Harvey, of the the high-rise year a impact ago indicators, Bill those So two to and of absorbing environment was and here a back we’re the many the residential see overbuild meter in you in a and

the So our continues you set to additional of about the capital indicators pace lot that's all considerations two what area suggest those things and needs. at drives aside, a grow record other

Michael Lapides

Got guys. Much appreciated. it. Thank you

Scott Prochazka

Michael. you, Thank

Operator

with from question Deutsche follow-up next Bank. of the Your Azar is Abe a line question

Abe Azar

or Can the you CNP the issued shares deal you. you close a also Thank the of XXXX for and XXXX do exclude earnings dilution into the dividends, you and convert Enable's the increase the this but between view? little a in is guidance Great. change that VVC then, And -- make year? bit

Scott Prochazka

Abe. I'll have Bill question. answer that

numbers I got in front the of him. think he's

Bill Rogers

$X.XX That would to translate yesterday, would that interest Enable announced their CenterPoint different of but share before Energy to million for share Midstream, to $XXX $XX a us XXXX. at also burden on million expense of million of would $X.XX include count the basis be And per secretion. $XXX Abe, estimate million. net income $XXX

Scott Prochazka

there. the your And was of if question, second still you’re what part

Abe Azar

am here. I

take the the…? of Did in around your the is cost the excluded also that or You the year. from out you this numbers dilution merger still in impacts

Scott Prochazka

End well we’re as out of dilution other costs of that taking as capital. yes, XXXX

Abe Azar

Got it. Thank you.

Operator

like you, to back closing Mordy for I’d and any to Thank call ladies turn gentlemen. now the David comments. over

David Mordy

conclude in This Energy EEI. day. interest look at CenterPoint for earnings great seeing Thank of will you our many a your to We call. XXXX Have you today. quarter forward everyone third

Operator

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

CenterPoint Energy (CNP) 8 Nov 182018 Q3 Earnings call transcript