CNP - Earnings call transcript Q4 2018 | CenterPoint Energy, Inc.

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Operator

Good morning, and welcome to CenterPoint Energy's Fourth Quarter and Full-Year 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

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

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

diluted proceedings, may activities electric prices, variables rate for commodity operations for due expense net such natural significant impacts merger cases and excludes or basis utilizes up or the period. including timing adjusted does certain with scenarios distribution; and applicable Both present usage impacts XXXX. also and tax our on debt the growth, and CenterPoint financing of rate ZENS the performance from attributable per of merger of for change to CenterPoint X% as anticipated that impact Enable, GAAP or certain with other could share volume effective in impacts expenses, Energy The is common anticipated at a including unable the to technology for stock call investment capital earnings Energy value Partners predict and XXXX merger higher range to losses as units projects. count. interest common business, net and and impact because in guidance Enable's $XXX of excluded regulatory range of The to have approximately Energy along income and XXXX of XXXX for the and to cost per CenterPoint a achieve million and Midstream XXXX difficult $XXX related quarter common. judicial Enable's equity company's to material securities management's and the work Energy higher forward-looking variable reconciliation January Vectren the the the providing The XXXX's merger completion to and guidance merger, result with savings severance to quantitative fund ranges costs transaction XX, also XXXX. well February not of considered rates, range the interest impacts the through for and business. from of or income and financing will related filings, Services customer and EPS the assumptions X% on discuss securities share and of company's adjusted is guidance of other and the attributable rates, results changes million a Services of from merger; and which associated guidance date XXXX such unusual of value earnings changes to guidance not that diluted the those for weather, fees mark-to-market guidance Integration stocks items. to as in gas net normal result in a merger: XXXX as throughput, resulting range ZENS recovery guidance, earnings they conference costs prior provided uses In earnings a operations following are losses measure savings gains effects guidance as business accounting fourth highly related integration Services in We control. a associated assumes as on are outside factors The reported of XXXX various mark-to-market standards estimated and this cost in consider the due Enable securities other related the in earnings the the consider the the as potential timing non-GAAP of the Energy accounting of share Infrastructure issuance to resulted estimable, that range Including contracted range

initially this tax and as Cuts accompanying and XXXX TCJA the and today's as covering reform. call prior information Act, years slides, only. to During call, simply In to or slides refer we Public accompanying the premerger the CenterPoint Law XXX-XX, Jobs refers will introduced in No. Tax

covering of are incorporates and the information. Information merger. We including the pro beyond not impact XXXX forma

we please that which in and included Slide XXXX XX, base, shows However, base rate rate year-end the CenterPoint. combined note Vectren have for

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

Scott Prochazka

of earnings a today, excluding diluted per will XXXX David, and CenterPoint. was interest basis, we for for Energy. X. thank you, on you $X.XX. Thank year share of with the in the the February Slide tax Thank $X.XX of an nearly $X.XX XX%. share we gentlemen. finished morning, associated top share at ladies achieved XXXX earnings means year. On XXXX a in good strong our impacts the for versus morning, you CenterPoint range your last I and begin of joining set $X.XX and This year per per reported we us guidance guidance of we per increase merger, basis end of guidance excluding share, reform impacts

and strong primarily XXXX our to businesses attributed Our in can performance core investments be growth performance. in midstream

Turning Slide X. to

achieve of million, reform invested tax our high revenues annual We resulting As are multiple $X.X successfully in We of I our in range. implemented in we incremental earnings to regulated mentioned, states, the regulatory of impacts. nearly billion capital strategies our pleased end exclusive of $XXX utilities.

into this of the declared fifth definitive X%, to we earlier December row the year was that transaction Our increases. increased Corporation, by Directors dividend such a Vectren Board acquire approximately engaged agreement capital We closed integration that entered in in providing merger for planning, month. in raised marking a of and the

We midstream The also We XXXX. of addition continue we spend by to executed grow, CERC. as an of the serve margin, strong Services growth volumes in part across our in in systems. assets substantially Valley like internal replacements to cast-iron in better Slide resulting projects evidenced continued gas infrastructure in Energy Connection resulting operating XX,XXX X. and and major mark-to-market natural excluding income than distribution Electric pipe Houston our for credit grow customers communities On impacts. ratings more completed Brazos to completed the its

to our It sent collectively proud as California industry our assistance Puerto worked help to efforts. how employees and various goals. continue peers also We we am crews support a busy mutual Rico and of achieve XXXX, Florida, to to recovery was I our

a anticipate and We expect year. Houston this year, Public the you the general to clean, Texas later have X file facilities solar XXXX aging we for in We will of generation ruling case will Utility XXX-megawatt orders on Jones is facility, on Commission the One can this later Project electric as a generation for X. the Creek rate Indiana. are of Indiana. Commission a busy XX-megawatt both turbine of vital We on anticipate We reliable Regulatory replace Slide gas provide April or Bailey XX. Utility a coal that before these and Indiana for combined providing Electric affordable to in to for is XXX- planned, see cycle from Southern believe other facility approval the

expect natural from order the Public on Ohio gas the of front, Commission the final Ohio Utilities the On regulatory case. we rate general

rate in Minnesota this We in which file later year general a test case its interim That rate course case, also utilizes rates, will and intend XXXX. to year. a forward-looking run primarily

capital continue Turning a X. to ensure meet operations and Electric to can and significant reliable. system our growth is resilient invest safe, to requirements Slide will

needs growing X-year Project the the our the call. to with recent shared and of associated capital capital area, third aligned plan the also estimate for solar capital combined XX Freeport the The in most that X-year operations. in plan billion anticipated This cycle new Bailey investment of $X.X updated megawatts includes with increases is includes Creek gas costs we industry generation quarter Jones and plant petrochemical the serve Texas now will power the Indiana. electric earnings plan the the XXXX during include Our in plan of

around natural to reliability replacement. billion, Moving targets and safety, $X.X The infrastructure distribution gas X-year growth, on capital plan Slide investment XX.

customer that continued in innovative growth we continue functionality. interface territories, We system capital pipe system improves We've in via our operations all service also to our our of expect replacement programs ongoing and to modernize our our on support jurisdictions. spent technology and spend

Slide XX. to Turning

can base see growth. year-end rate You our projected

our plan capital in driver approximately is for XXXX. to is Our growth rate expected a This rate based of X.X% rate compound performance. base to through a annual growth key earnings overall translate

for projections services Enable's for as continue as gas businesses. volumes, gathered and oil with as Infrastructure core XXXX. processed Energy our Services, We each We pleased our condensate to momentum crude other's increased gathered they customers provide volumes. believe to Energy also very businesses. We're will volumes, Enable complementary natural non-utility valuable growth well solid excited into was Systems I have and performance natural utility this XXXX group and to gas Services,

Moving XX. to Slide

range and impacts savings of merger-related number and $X.XX. in also one-time guidance XXXX This the basis merger. includes completion EPS the January, prior cost to transaction-related and fees integration guidance impacts excludes merger $X.XX the Our expenses. is anticipated to financing excludes range This of

achieved of anticipated cost Our by XXXX that guidance to point. basis $X.XX EPS range $X.XX savings includes

EPS guidance of compound also base rate off We EPS Bill of Slide will growth target to additional growth actual to for $X.XX, of impacts merger. excluding our the primary guidance be of of XXXX a annual basis view history rate XXXX anticipated XXXX growth. operations X% provides forecast Utility through the guidance drivers based is XXXX X% our driver the a ranges. of providing are long-term and call. and later the in discuss XX

equal to well-positioned often to XXXX, growth. strong is by upper We grow who served talent on and wrap XX. exhibited investments, the continue to since projects in track. with those we integration throughout of thanks I colleagues earnings hitting the and objectives. end Slide our to consistently some Due up earnings planning remain thanks critical want solid to picked believe additional have ensure their the up sincere a functions and worked my will I to to Anchored guidance. that the our hard I meet our who company responsibilities give business employees, strong to are utility on CenterPoint normal commitment by express teams, position

a contractor, We public employee, targets safety. continue focus comprehensive and on safety customer which to strategy system,

efficiency Our achievements use have meet changing expectations. that drives improvement operational led continued supports customer these to helps of to of awards. industry Many technology and

solutions. emergency for of We our assistance, the our We customer and satisfaction, lead objectives. recognized growth are believe grow to innovative will a serve, on and strategy long-term continued of realization proud earnings operate, be focus to

And the years. I'll of for as it to to year of made end over thank earnings life. last well late of you CenterPoint, I'd our this contributions following with the know, announced he merger. most the Bill you this Bill, the we success that to next over As phase like towards Therefore, Bill's turn last to plan since close retire of you wish QX transition he's is past you. our X call to Bill

William Rogers

earnings distribution team, start investors. lead management EPS our segments, customers, And accounting year-over-year you, gas our privilege will privilege drivers behind to utility natural our efforts income by walks consolidated I has serve finance operating it a been for has will operations a and cover Thank electric communities, with our to your Then and Scott. followed at been I CenterPoint. loss. forecast. It and distribution and you,

reform. provided favorable will to When concentrated and year, O&M variance tax as a $XXX million we million is $XX some result conclude Finally, as going revenue tax Revenue million of and of of to increases with of offset variance merger. by businesses of I the revenue will an decreased positive normal forward lower the how federal $XX reviewing walk this into a $XX result customer outline and Beginning distribution's Houston income on translated impact had unfavorable resilience with present Electric, revenue net our operating growth XX. Slide a million for variance. changes transmission income work Rate technology on an expense. and another projects. income, due

growth rate return matches more related the O&M future so increased inflation. transition charges it closely expect in million. We true-up Equity to years to of the of $XX moderate

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

XX% the and transmission represents This million year-over-year. Electric's income equity distribution's impacts of over increased Excluding Houston by reform, tax return a operating $XX improvement XXXX.

from reform. decreased tax a $XX included income This rate of expenses. XXXX A variance offset million a operating as benefit $XX relief accelerated positive portion support and was benefit to versus expense. integrity XX. Operating by contracts million is result Revenue This work. increase large income last lower $XX basis, $XXX was and labor O&M a the million from maintenance higher customer and $XXX year-on-year million records costs, and gas Turning of year. tax million On creases and $XX to due services, operation growth. income a other by Natural for million. services, Slide is was distribution in

Houston with future to anticipate closer rate As years. we holding O&M of the in inflation Electric,

tax item. we retirement adjustment revenues certain nonrecurring normalization. and expensed. item these timing taxes with comparison in for capitalize lower distribution's the one and distribution to of the item a The we The items $XX associated Lastly, on year-to-year a make million, one nonrecurring directed is X previously in due timing to us $XX by of benefits benefit recovery were rate of $XX increase XXXX. basis, by declined that XXXX depreciation is impacts for timing the million and $XX XXXX. $XX million the million income gas income income, distribution's was in When million. that mark-to-market order a operating XXXX XXXX Adjusting $XXX increased of post trillion a million reform gas full United of weather versus gas $X XXXX. completed This record XXXX. and Services -- approximately cubic feet acquisitions first of Services operations adjustments, full end-user $XX year demand in Energy represents and benefited in achieved throughput XXXX. of over Services X% million Energy million will X.X anticipate income to operating natural integration from also States. operating XXXX excess the in Energy in We of XXXX eliminate in excluding operating

will For XXXX, this we income. anticipate operating business increase its

for Higher Vectren, utility Slide The $X.XX share basis We walk includes walk by associated for a $X.XX provided excludes expenses $X.XX. of $X.XX return expense operating rate. return. on but to is merger of the costs equity and Other acquisition with utility income from all items and the guidance the year-over-year federal in guidance excluding reduced a earnings interest lower $X.XX XX. performance add operations income, and a per a core with $X.XX. $X.XX Equity improvement and tax were guidance provided on utility brings on Services with of other This which Our us operations basis. items started Energy capital inclusive XXXX EPS change of benefit and EPS. EPS

operations utility was EPS year-on-year in Excluding tax benefit, the the growth X%.

a for up Our XXXX which comparison for had $X.XX year-over-year tax In is are Slide Midstream utility with reform. we XX, and improvement, consolidated for $X.XX operations. short, attributable on XXXX. starting of $X.XX guidance EPS $X.XX with $X.XX ending investments to are

X% reform, year-to-year. contribution tax increased Excluding EPS investments midstream

guidance and with Slide considerations impact to for XXXX. excludes some integration merger will range EPS CenterPoint. not to I $X.XX were and and Vectren The is which associated XXXX. in XXXX $X.XX expenses activities the of likely the costs financing We certain to January occur several of show XX. Turning of note the in

on not for rates case case approximately are increases XXXX. reflect in filing XXXX, we not these greater transmission effect, file filings much and investments have in $XX example, customers. made combined means In For Electric rate will the and distribution Houston filing investments to complete, XXXX. lag our to regulatory of in revenue of expect revenues we will and our updated XXXX. do in million DCRF the rate relative TCOS annual anticipated these provided Therefore, is Once made behalf the anticipate

to transition In addition XXXX. impacts, from expected these and bonds XXXX is equity bonds $XX decrease to we million our return by to return $XX related expect restoration million. lower to in million, to transition from $XX equity Pretax relative storm

Page XX%, the effective income. excess operating to offset on XXXX in turn the income approximately has will information which tax appendix. please for EDIT deferred anticipate more rate For We a XX or amortization, the tax in schedule, excluding corresponding be

Finally, rate the general we adjusting will be on of timing filing of case the in cadence Minnesota. our

the file several interim to quarter the will recent in versus expect delay We revenue months. third fourth in filings rates This and by quarter.

income is While pleased their interest we accretion provide anticipated you tax contribution, and difference on segment's data, pertinent midpoint segment. we net In rate percentage, for the recognize their including marginal performance, income of forecasted income range our we this basis income. XX, with net Enable's net Slide lower are to and this than in ownership net quite expense XXXX Enable's anticipated with the XXXX assist the adjustments forecast, order

XX. Slide to Turning

It and anticipated savings year from ability capture have nonutility much achieve. intend rate of closed Electric Minnesota, cost factors of range $X.XX the merger guidance utility Notably, these to time, our XXXX. mechanisms Over going to and million segments completion $X.XX guidance X, years. will have and of TCOS these to we both of file the are completion will XXXX be rate of deck also February the report the on legacy a case how recent full investor each the considered rates segments pretax DCRF of also we general $XX Our primarily range. O&M interim to case, actions SEC how and reporting the the those earnings synergies, of business and These reflects community. savings. in it reflects synergy We million and the excludes $XXX slide our our forecast Houston to General in and segments how Vectren overhead we Since the these we corporate includes operating businesses. allocated these entities. shows and savings. from we customers. developing of our in Slide we Further, savings to to and an perspective majority Slide grouped costs when to taken benefit forward, segments our report XX, show XX will in organize SEC On Ohio investment

We electric utility into related into will all utility segments our of electric segments our group operations. and operations,

report each quarterly approximate previous dividend, quarterly remaining we out then earnings In will announced This X segments increase share the a have David. represents dividend. the to with $X.XXXX call executive consistent X dividend. approximately the We over the back will our XXth in also of per our December, we X% years. the walk. increased turn year over marks increases in last now I an our X% This

David Mordy

Bill. you, Thank

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

Operator

first Instructions]. line Agha And with from SunTrust. Ali the question your [Operator of is

Ali Agha

well. the future for Bill, the you as wishing best all

William Rogers

you. Thank

Ali Agha

merger you question, guidance. clarify Are in the just synergies resuming 'XX first 'XX? My any to

Scott Prochazka

have as, synergies Yes, in synergies answer cause to specifically, those. But question are do we achieve we -- obviously, in there. to we the as we well do assume 'XX your assume merger

Ali Agha

million, $XX assume how 'XX? in the be to much of $XXX So should will million we

Scott Prochazka

that. after of taken action get We have fair amount to a

which of already reductions the gone a for haven't workforce, amount with XXXX. But We significant disclosed is component have that. in actual the forward we

Ali Agha

And second Okay. my question.

those? or X% the the also clarity within higher X%? rate As X% are businesses, growth that that years? X% just line on 'XX you portfolio Enable assuming nonutility it over lower? generally to in you map a out that's X growth for is Or through with assuming provide the Can you 'XX, little to more a you are stays And

Scott Prochazka

To a say are Ali, we that the that We've assuming So level are will. terms I the over invested of be at lag. that more of our the about conservative growth performs due growth period in Enable question that same the utilities remain will the of taken that. we a our growth utilities, assuming view not will off we growth Enable. regulatory of that at our slight base your to utilities in reduction of rate

Ali Agha

operations, overall be see. just the more? in I going also But or growing clear, nonutility line to are or Vectren the other they're growth, with less they

Scott Prochazka

I misunderstood question. sorry, your I'm

do that they're far the growing competitive rate but utilities. we the as not As at of assume segments, our

Operator

America. is Dumoulin-Smith Your question Julien Bank with next of of from line the

Julien Dumoulin-Smith

apples deck X%. just little wanted on the initial of X% have but to versus So of a of oranges discussed you achieve implied more on right? transaction. give and may cost sense numbers us if Can deck to kind the versus any instance, in XXXX up but Think Vectren sense out some bit for to number? versus what's of after follow you 'XX. today April that synergy a in there's changed, the there I the guys know Obviously, changed, slide anything and what's the else, the

Scott Prochazka

Well had shared is in Julien, with think, we what provided, view we think XXXX line very before. the that much I of I

up versus you range more as before the pieces. we we've we tightened what As understand the looking know, were at

around this the first our growth is visibility year as for really the of driven that kind in it's As growth the far we've five utilities. by the time up growth provided and rate, period,

Julien Dumoulin-Smith

Got last it. been comes -- this time to that's it when treatment versus around? But go achieve, cost that's to comparable

Scott Prochazka

Yes, that is absolutely correct.

Julien Dumoulin-Smith

X% that X% if And what just in can then time? of that quickly, you to this, seeing clarify metrics point kind timeframe associated balancing you the it. are in 'XX at Got with

Scott Prochazka

to on want you it? comment Bill,

William Rogers

the we've Julien, as shared sheet, before? balance On

Julien Dumoulin-Smith

debt to FFO Like in 'XX.

William Rogers

XXXX. to to and the in raise as -- is in either range, comfortably Yes. XXXX equity we've we in and target said XX% we that are XX%, in any we foresee need or FFO-to-debt past, therefore, don't

Operator

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

Michael Weinstein

question, is in What that? cost So there? what to just the Julien's expecting are to you XXXX, on achieve clarify

Scott Prochazka

that is year, forecasted EPS range visibility. number our like. provided we've So haven't just don't The a the what looks have included of What we reason have said provided, we have possibilities. within range we not though of for we that

the visibility much point this efficiencies to We synergies have or more the be. at what cost will

the to towards that will now cost refining be point. related, that the we It what exercise going contributors achieve primary looks of at systems are and of just terms In like. through

those So range minds. be to we they're a have are it, but provide our prepared numbers in to in weren't inclusive the going we We primarily gave. system-related costs, and range earnings

Michael Weinstein

cost I to he trying the specifically including was achieve get range prior at, was think higher... you were to in that

Scott Prochazka

We Yes, were, yes. we were.

Michael Weinstein

but The X% standalone to And is X%, that Okay. one guidance. the apologize, more question.

now to X% current a guidance, which is -- proforma merged merger the unchanged. So X% is a

are assuming this offsets new flat those same to are the synergies to to So that in synergies -- -- X%? X% level? is that the what keeping you there to at the X% What are X%

Scott Prochazka

Yes.

We've made to X% assumed and growth X% a window rate merged shorter the around longer now for a visibility -- it. business. the had discussed we the for window a So with

within we We your merger, range, our that following are but are or in moved upward have range to strengthened that in still potential the we the that the still point, believe but we range, in have range. performance

Operator

of with question is line next Goldman Kim Your Insoo Sachs. the from

Insoo Kim

at through least years a this your missed next I if few units you the anticipate the know Enable don't were of bit but before, don't any guidance? you that little of saying in sale I

William Rogers

or equity don't XXXX that XXXX. said what Insoo, anticipate is issuing in we've we

capital the stated in units forecast to sell also we that Enable our look have opportunities We will for investment. fund over order to some horizon

Insoo Kim

done, to the you appreciate the mentioned presented not And resulting in a slide both cost I have $X.XX included on and moving if about Understood. additional still the of those achieve at healthy Where that terms April up, below the originally maybe to impact was that then what you XXXX are pieces range in last other utility in midpoint? this costs you is to decks, rate, been to that that the Can moving gave April. moving updated time, from dead maybe you -- beat is you've I pieces addition the back guidance an but since -- the metric assume raising. thought, you'd the the pieces horse, going the ended in growing the a to equity what had slide

Scott Prochazka

Yes.

Insoo, This we're appreciate calls at. question getting really your I So here. another maybe

the decrease than around at range, driver would earlier the old the at changes time for upper on were the were were If significant the most you versus a commodity segment. look be different midstream The range today. the end they when provided new forecast prices

we thought larger or of range the opportunities, range Enable larger included that of a about range as -- So the a commodity it commodity performance. as would impact

the conservative time, able So upper reduction a environment five the today's of majority commodity to impact commodity that recovery. the for the with of the of little taking timing our the But more related and driver a reviewing by been little year given that's period been around updated bit have Enable. since refine bit prices, primary look and also, the of the capital the range. We've is some spending

Operator

is UBS. Aga the next question line Your of Zmigrodzka with from

Aga Zmigrodzka

your drive to closer versus range? outlook discuss higher earnings end Could of your lower could you EPS XXXX what the please

William Rogers

last Bill. the line is midstream just this Aga, another question, in largest earnings unknown Scott, X% the one from of way, shared putting segment. contribution it within is to the the the X%,

would volumes in and, contribution. So translating earnings a us the in therefore, what to midstream segment to commodity be end prices greater our strengthening higher could drive environment,

Aga Zmigrodzka

give versus be you your in net of income could as around you to XXXX middle or Enable's that, follow-up that? you like expect range, flat the Any to So in do expect XXXX sense do a a decline?

William Rogers

a guidance. that only net what and forecast that's have metrics Enable's their going we has and view provided XXXX or commodity earnings a call, other not finance provided Enable take are We but forecast respect with XXXX. their at to to do look their beyond in prices, We take income against

Operator

next the is Arnold line with question from Your Jonathan of Deutsche Bank.

Jonathan Arnold

and Congratulations, Bill. you, thank

William Rogers

you. Thank

Jonathan Arnold

-- A guidance that to slide. back look we question on at as the just original

$XXX of to Or and part on to XX Just you receiving that Have a the you have curious for if still sort on it cost million not effectively savings, bit numbers range commercial you're could just and $XX that's million commercial whatever out You bridge is opportunities out? on now, opportunities? us. called taken XXX O&M savings. it's of those

Scott Prochazka

are in point. Thank to Jonathan. be going cost-related will just we're fully the about expectations commercial that fact going develop the they're XXXX because We still related. or our O&M for have a you more the disclosure it's that in XXXX. synergies. be believe We XXXX, years reflects of to believe there the following question good majority talking we Sure, Since synergies the

Jonathan Arnold

So originally that of might could little that if more, bigger piece opportunities listed I suggesting first, the it. to probe the you been on commercial XXX, just XX have of bit a

there is the although and actually for range so, same, if the have the is how the much? cost So savings combined increased --

Scott Prochazka

I about gives will now we and the more XXXX. we into have we it represent I after cost that Those say timing, for that that that development primary realize estimate the or clarity to would we component an would be XX side, which there this and XXX synergy how and savings, that early the were XXXX, the things, think further efficiencies Yes. side was commercial And but would the the in commercial be occur confidence we've on. revenue of intended got way we as expectations or that synergies. to cost numbers us talk around of some we've of was know gotten primarily that in

Jonathan Arnold

missed us Bill? And to I may apologize -- then have you process it. timing if repeat and But okay. an could this. replacing have the for give just you update the on Great, I

Scott Prochazka

process. We being this, actively and speak. hate activity his That environments we're let's we're is it's in working as just to the say replacement have when And announced, I not replacement give that we to hope future. actively near do but have timelines but a on we in underway worked, like

Jonathan Arnold

Are both? or you looking inside, outside,

Scott Prochazka

outside are looking We his for replacement.

Operator

of question next from Christopher Turnure is Your the with line JPMorgan.

Christopher Turnure

a and of kind a your 'XX incremental wanted it to fair just much how before? that differential lot Houton of utilities the 'XX already, A of same, Bill. at Electric, maybe and bit the questions been the again, bit it's say of but outside and it kind little have Congratulations with Is pretty what maybe changed. it's than overall is message Enable, timing is plan enhanced not and better little and was to I summarized of asked at lag perhaps here

Scott Prochazka

We're think a that's representation. excited the fair plan. by I

these you've We have excited robust we we're plan for as have, and capital deployment a seen, service about it. territories,

So I summary. think that's a safe

Christopher Turnure

Okay.

stride Houston be Electric after remain reason to question You X% be to you earlier footprint? is growth utility across CAGR. wide the base any I the, you case that there than income vein, rate lag mentioned your of in believe the the slightly that basically In guess, would Will rate to after the your response authorized able utilities lower whole that hit an net would earn ROE?

Scott Prochazka

objective, there for I reasons and about 'XX consistently in think there and earnings always our some of our enhanced that or occasional allowed ongoing behind push our basis, some or for rate close of continues will that be to be will in given growth very need talked towards proceedings, be will lag and the I some we it lag just jurisdictions jurisdictions. growth. on X% the if rate accelerated base the returns element various the mechanisms But not, about. get achieve, kind But talked to our lag rate maybe all Bill think to the such an

Christopher Turnure

changed? reason just I Vectren standalone closed any us give real VISCO, quick the know thoughts. the And can then has great. think you updated on to only recently, but has merger that plan Okay, any

Scott Prochazka

No.

believe doing we fact, well. is In VISCO

go at to forward been backlog, segments and well to doing begin in metrics that one we has information and the As more well we we as about of But starting -- provide doing. is their segment's backlog to how very traditionally, the will there the talk QX, some begin moment.

Operator

Your is with the Charles next from question line of Morningstar Research. Fishman

Charles Fishman

Bill, congratulations great on a career.

William Rogers

you. Thank

Charles Fishman

you left. were $XXX have in is is included? your I in I talking question is only you because it assume Slide Freeport in -- time, one have outlook electric, that million down, there? $XXX think year what is to for I investment in it's that And now last million there. had in X, if On tied

Scott Prochazka

Yes.

So the have tied of it -- will the made. of be baked the estimate like. outcome fully We it tied that around looks decisions down. what will because involves amount actual project we of being routing We had say, is involve the -- proceeding it commission infrastructure it down, don't with The you the some an around decisions as now into completely plan. and

a What -- and most in being 'XX, range, we spans and 'XX there to So of tend obviously primarily, that's there. will across, 'XX significant range 'XX, when it midpoint we with 'XX kind is provide provide at year. look the and this be of data

Charles Fishman

million million And $XXX $XXX in it's to still that range...

Scott Prochazka

correct. is that still that Yes, range. Yes, in

Operator

[ph] of Your Har the question Verizon. line Zhan next from is with

Unidentified Analyst

Ashar. name in merger ask is the on This wrong. my provided or just you, based disclosure got new I not 'XX Can They is today? and the 'XX, accretive

William Rogers

achieve, exception modestly the we're to merger be forecasting of to With accretive. a the cause

Unidentified Analyst

Okay. XXXX. it, things guidance I And average on it might going lot have you what just outstanding slide, in Bill, can are? the secondly, XXXX shares a be morning. of the on might sorry, missed and mention this

William Rogers

Yes.

provided consider -- should outstanding that that million XXX share shares it's new and the then XXXX, have to into than million million We be will because provided -- X/XX XXX the we to less I average count of in X, not XXX but the be believe the we million XXX on closed moving taking we're so XXXX. to And merger out of shares. February you

Operator

from ExodusPoint. is question last Our of Levi line Andrew with the

Andrew Levi

Congratulations, Bill.

better You've been a very and good CFO. friend, a

William Rogers

Thank you.

Andrew Levi

of Just a questions. couple

forecast. flat Is as correct? the assuming on Just that you're back Enable, on Enable earnings so

William Rogers

their in what Our below forecast, Enable's have midpoint Andy, disclosed And from is contribution. XXXX recognize they as taken we XXXX.

the scenarios, that, we X%. disclosed range Beyond it a include and not X% rate of our growth of to but that's why have does forecast,

Andrew Levi

then and but or you some that were I of the thought were 'XX -- and said taking be that I that may is provided forward, that number just than number correct? may that kind saying 'XX Am the you using just just you correctly? 'XX different going in Okay. 'XX, not

Scott Prochazka

a correctly? faded. Is -- that? your Andy, voice could you repeat bit it little he I faded it think saying

Andrew Levi

I sure. sure, apologize. Sure,

do there. just based not you have 'XX, sharing not you're thought for of estimate an using then estimate 'XX 'XX, your in that and using So same 'XX And estimate. the and on you what kind you're the were in I out you But have just with number. Enable 'XX us. 'XX, has put

Scott Prochazka

correct. is That's right. that Yes,

Andrew Levi

it. Got

'XX, how I much but then Okay. cost that, that? I'm how is sorry, missed And if much on the -- achieve to in

Scott Prochazka

specified what not in year. not that is. post-merger will majority system-related, that to it specific looks we're along the of know be thematically, far like what that We've amount enough I' commented that, earlier analysis exactly with and the

range, a that thinking about specified that is think earnings, we've in in achieve made not made inclusive some on we've to So that estimates and our we what we've but cost year.

Andrew Levi

Is you don't that. the I'd know a it answer, in no less 'XX? than laugh. Thought got if I'll Okay. Well, ask I ask. answer it. per or question, can $X.XX That's share Got greater I

Okay. last And have. then the question I

X break is VESCO, So and what you do as in legacy, have as contribution earnings didn't VISCO Vectren guys 'XX, the for and again you? these that those out you far did

Scott Prochazka

did We not.

Andrew Levi

relative get to just is I you in really business much the the may They you either grow be. know, and I PE your At of is the would back you really just your business stock, or with realm I business? and what sell to CapEx, But very have reinvest just in don't the want keeping business, a regulated whether your in raise cash, whatever could thinking much. fund maybe kind that it's I buy head a but obviously, if term, Okay. you to possibilities that dispose it think then business I so it don't assets higher I'm PE same businesses. were and see of those them, worth of my of bought longer what sense time, do whether kind longer-term. to thoughts low them, in it's those

Scott Prochazka

we that merger. They Again, to just would part is them. of acquired answer your point, just as the way in the came I

were I operate grow businesses is stand while which we they the so utility-like direction the we is think with. looking strategic coming We at businesses, As different some our at they're those -- in to those and where those characteristics, businesses, that's opportunity and business, that's utility I would own mean, say moment. and there in, than comfortable growth do we have were

Andrew Levi

VISCO much are into How you this capital putting year?

Scott Prochazka

ahead. Go

William Rogers

and Andy, one $XX really capital for 'XX, and think invested infrastructure in way about in the to businesses. they approximately the that is XXXX million

Andrew Levi

but Okay. know clearly, know. more obviously, needed year, But on the -- it you discuss on fairly a a guess business we'll because I is of the pipeline I capital-intensive because Boston, my don't so depending the equipment fairly side, it opinion. in

David Mordy

CenterPoint for in questions. thank everyone further interest their to Energy. No I'd like

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

Operator

Year Thank Energy's you and CenterPoint Conference the Full Call. concludes participation. your This Earnings Quarter for Fourth XXXX

now may You disconnect.

CenterPoint Energy (CNP) 28 Feb 192018 Q4 Earnings call transcript