CenterPoint Energy (CNP) Sees FY EPS of $1.25-$1.33, Above Views at Midpoint

CenterPoint Energy, Inc. (NYSE: CNP) today announces expected earnings on a guidance basis for 2017 to be in the range of $1.25 to $1.33 per diluted share (cons $1.25) and reaffirms its expected earnings on a guidance basis to be in the range of $1.16 to $1.20 per diluted share (cons $1.18) for the year ending Dec. 31, 2016.

Guidance for 2017 includes earnings per share growth expected to come from:

• Utility growth,
• Increased earnings per Enable Midstream Partners' forecast, as provided on Enable's third quarter 2016 earnings call, and
• Increased earnings contribution from CenterPoint Energy Services, partly attributable to recent acquisitions.

In addition to these drivers, the company expects lower interest expense and a full year of dividend income from CenterPoint's investment in Enable's preferred units.

"Our 2017 earnings guidance represents solid growth over our 2016 year end estimated range supported by both utility operations and midstream investments," said Scott M. Prochazka, president and chief executive officer of CenterPoint Energy. "Utility operations, driven by fundamental growth and investment, continue to perform very well and we are pleased with Enable's 2017 forecast."

The company anticipates 2017 capital spending of $1.5 billion, a 14 percent increase over the previous forecast for 2017 capital spending. Both the electric and gas utilities are expected to contribute to the growth in capital spending:

• Houston Electric anticipates capital spending of $922 million in 2017 in support of sustained industrial, commercial and residential customer growth.
• Gas Distribution anticipates capital spending of $534 million in 2017 to accommodate continued growth, particularly in the Houston metro and Minnesota jurisdictions, as well as pipe replacement needs in the six states served by CenterPoint.

CenterPoint Energy's management will host an earnings call on Tuesday, Feb. 28, 2017, at 11:00 a.m. Eastern time. Company executives will discuss the company's 2016 earnings results, as well as provide additional detail on earnings growth drivers and the company's five-year capital forecast.

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