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Here are 1-3 brief analogies to describe CenterPoint Energy (CNP):

• CenterPoint Energy is like Consolidated Edison (ED), but operating its essential electricity and natural gas distribution network across the U.S. South and Midwest.
• It's similar to Dominion Energy (D), owning and operating the infrastructure to deliver electricity and natural gas to homes and businesses in multiple states.

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• Electric Transmission & Distribution: Provides the infrastructure and services to deliver electricity from power generators to homes and businesses.
• Natural Gas Distribution: Operates natural gas pipelines and infrastructure to deliver natural gas to residential, commercial, and industrial customers.

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CenterPoint Energy (symbol: CNP) is a public utility company that primarily sells electricity and natural gas directly to end-users within its service territories, rather than to other companies for resale.

The company serves the following three primary categories of customers:

• Residential Customers: This category includes individual households, homes, and apartment dwellers who use electricity and natural gas for personal consumption.
• Commercial Customers: This segment comprises various businesses, offices, retail establishments, restaurants, and other non-industrial enterprises that require energy services for their operations.
• Industrial Customers: This category includes large manufacturing facilities, factories, and other industrial operations that consume significant amounts of electricity and natural gas for their production processes.

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Jason P. Wells, Chair of the Board, President & Chief Executive Officer

Jason P. Wells assumed the role of President and Chief Executive Officer of CenterPoint Energy effective January 5, 2024, and also serves as Chair of the Board. He joined the company in 2020 as Executive Vice President and Chief Financial Officer, later serving as President and Chief Operating Officer. Prior to joining CenterPoint Energy, he spent 13 years at PG&E Corporation, including serving as Executive Vice President and CFO, where he oversaw the financial activities of an approximately $60 billion enterprise and led over $50 billion in capital markets and strategic transactions. During his tenure as CFO at PG&E, the company filed for Chapter 11 bankruptcy protection due to wildfire liabilities. Wells holds bachelor's and master's degrees in accounting from the University of Florida.

Christopher A. Foster, Executive Vice President & Chief Financial Officer

Christopher A. Foster was appointed Executive Vice President and Chief Financial Officer of CenterPoint Energy, effective May 5, 2023. In this role, he is responsible for the company's financial structure, including internal audit, investor relations, accounting, financial planning and analysis, treasury, and tax. Before joining CenterPoint Energy, Foster worked at PG&E Corporation for more than 11 years, including serving as Executive Vice President and Chief Financial Officer, where he managed PG&E's financial activities.

Monica Karuturi, Executive Vice President & General Counsel

Monica Karuturi serves as Executive Vice President and General Counsel for CenterPoint Energy. She oversees the company's legal department and risk management functions, as well as supply chain, human resources, and emergency management and response. Since joining CenterPoint Energy, she has led more than $40 billion in mergers and acquisitions and financing transactions, including the company's $6 billion merger with Vectren and the divestitures of its infrastructure and energy services businesses and Enable Midstream. Prior to CenterPoint Energy, she was counsel for corporate, finance, and strategic transactions at LyondellBasell Industries, and a corporate associate at Baker Botts LLP.

Jason M. Ryan, Executive Vice President, Regulatory Services & Government Affairs

Jason M. Ryan is CenterPoint Energy's Executive Vice President, Regulatory Services and Government Affairs. He leads teams responsible for utility strategy, rates and regulatory portfolio management, regulatory relations and policy, regulatory legal, and government affairs. Ryan joined CenterPoint Energy in 2009 after nearly a decade representing the company as outside regulatory counsel. His previous experience includes serving as a managing partner at the energy law firm RyanGlover LLP and a global projects attorney at Baker Botts LLP. He also served as an Information Dominance Warfare Officer in the United States Navy from 2005 to 2015.

Jesus Soto, Jr., Executive Vice President & Chief Operating Officer

Jesus Soto, Jr. will join CenterPoint Energy as Executive Vice President and Chief Operating Officer, effective August 11, 2025. In this role, he will oversee Electric Operations, Gas Operations, Safety, Supply Chain, and Customer Care functions. Soto brings over 30 years of experience in the energy industry, including electric transmission and distribution, gas transmission and distribution, and generation operations. He previously served as Executive Vice President of Quanta Services and as Chief Operating Officer for Mears Group, Inc. He has also held senior leadership roles at PG&E Corporation and El Paso Corporation.

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1. Regulatory and Legislative Risks

CenterPoint Energy's business is heavily influenced by regulatory and legislative actions. The company faces ongoing regulatory proceedings and requires timely recovery of expenses and approvals for its generation transition plans to maintain financial health. Adverse regulatory decisions, including those related to rates or environmental mandates, or negative outcomes from regulatory investigations, such as the Attorney General investigation mentioned, could significantly impact the company's profitability and ability to invest in its infrastructure. The timing and impact of future regulatory, legislative, and political developments are also critical factors.

2. Operational Risks, Including Aging Infrastructure and Capital Expenditure Recovery

The company's operations are exposed to risks associated with its aging infrastructure assets, which may necessitate replacement or increased maintenance costs. CenterPoint Energy has significant capital investment opportunities and plans to invest over $21 billion over the next five years. The ability to fund these planned capital expenditures and ensure the timely recovery of these investments is crucial. Furthermore, operational challenges such as disruptions at power generation facilities, inflation, high interest rates, and supply chain disruptions can affect the company's ability to execute its capital plan and impact customer payment abilities.

3. Financial and Market Risks

CenterPoint Energy is exposed to financial risks, including fluctuations in natural gas prices, changes in interest rates, and shifts in credit ratings, all of which can impact its financial condition and ability to finance capital expenditures and refinance debt. Market risks also stem from increased competition for renewable energy projects and the potential impact of tariffs and trade restrictions on solar energy components. Changes in market demand, driven by factors such as energy efficiency measures, demographic shifts, or the emergence of alternative energy sources and their adoption by consumers, could also affect demand for natural gas and electricity transmitted by the company.

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The clear emerging threat to CenterPoint Energy (CNP) is the increasing proliferation and adoption of Distributed Energy Resources (DERs), primarily rooftop solar and battery storage systems, by their customers. This trend allows customers to generate and store their own electricity, reducing their reliance on the utility's grid for energy supply and thus impacting CenterPoint Energy's traditional revenue model which is largely based on the volume of energy delivered (kilowatt-hour sales). As the cost of solar and storage continues to decline, and as consumer interest in energy independence and resilience grows, more customers are likely to reduce their consumption from the grid, directly challenging the utility's volumetric sales and potentially leading to underutilized grid assets if not managed effectively through evolving regulatory frameworks and business models.

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CenterPoint Energy (CNP) operates primarily in two main addressable markets in the United States: electric transmission and distribution, and natural gas distribution. The company also engages in electric power generation in Indiana and provides other energy-related services.

Electric Transmission and Distribution

The addressable market for electric transmission and distribution services in the U.S. was valued at approximately $82.96 billion in 2022. This market is projected to grow at a Compound Annual Growth Rate (CAGR) of 2.95% during the forecast period of 2023-2030. CenterPoint Energy provides electric transmission and distribution services to over 2.9 million metered customers, primarily in the greater Houston area of Texas and southwestern Indiana.

Natural Gas Distribution

The U.S. natural gas distribution market was valued at $170.0 billion in 2024 and is expected to reach $186.0 billion by 2032, with a CAGR of 1.0% between 2025 and 2032. Another estimate indicates the market size as $174.7 billion in 2024 and $222.5 billion in 2025. CenterPoint Energy delivers natural gas to approximately 7 million homes and businesses across four states: Indiana, Minnesota, Ohio, and Texas.

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CenterPoint Energy (CNP) is expected to experience future revenue growth over the next 2-3 years, driven by several key factors:

1. Significant Capital Investments and Infrastructure Modernization: CenterPoint Energy has outlined an ambitious capital investment plan, including a record $65 billion through 2035, with approximately $33 billion projected between 2026 and 2030. These investments are largely directed towards enhancing the resiliency and reliability of its electric grid, particularly in its Houston Electric service territory, and supporting broader economic development. These infrastructure upgrades and expansions lead to an increased rate base, which in turn supports revenue growth through regulatory rate recovery mechanisms.

2. Robust Customer and Load Growth in Houston Electric: The company anticipates significant organic growth, especially within its Houston Electric Service Territory. This growth is fueled by strong economic development, increasing population, industrial expansion, and a notable surge in demand from data centers. CenterPoint forecasts electric peak load demand in Houston to increase by nearly 50% to approximately 31 GW by 2031 and potentially double to about 42 GW by the middle of the next decade, driving the need for additional infrastructure and consequently, revenue.

3. Favorable Regulatory Recovery and Rate Cases: CenterPoint Energy consistently highlights "growth in rate recovery" and proactive engagement with regulators as crucial for its financial performance. The company’s efforts include ongoing recovery from various interim mechanisms and filing for rate case applications to ensure the recovery of its significant capital investments. This regulatory environment is designed to allow the company to earn a return on its deployed capital, directly impacting revenue.

4. Strategic Capital Redeployment: The planned sale of CenterPoint's Ohio Gas local distribution company (LDC) for approximately $2.62 billion (gross proceeds) is a strategic move to redeploy capital into its higher-growth jurisdictions, primarily Texas. This shift allows the company to focus its investments on areas with stronger growth prospects and higher returns, further enhancing its overall revenue generation capabilities.

5. Operational Efficiency and Cost Management: While not a direct revenue driver, CenterPoint Energy's focus on operational and maintenance (O&M) reductions and cost control is expected to contribute to earnings per share growth and indirectly support revenue growth. By managing costs effectively, the company can maintain customer affordability, potentially facilitating future rate adjustments and ensuring a healthier financial position to fund its growth initiatives. The company targets average annual O&M reductions of 1-2% through 2035.

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Share Repurchases

• CenterPoint Energy announced cash tender offers in October 2025 to repurchase up to $500 million of its outstanding debt securities, including senior notes and general mortgage bonds, to reduce indebtedness and optimize capital structure.

Share Issuance

• In May 2025, CenterPoint Energy announced a registered underwritten offering of $800 million of common stock, with an underwriters' option to purchase an additional $120 million.
• The company derisked planned equity issuances for 2026 and 2027 through forward sales, including $165 million under its ATM program and $920 million through a block transaction.
• CenterPoint Energy anticipates modest common equity issuances of approximately $3 billion from 2028 through 2035.

Outbound Investments

• In May 2025, CenterPoint Energy announced plans to sell its Ohio local gas distribution company assets to optimize its capital portfolio and further shift strategic focus towards Texas.
• In October 2025, the company announced the sale of its Ohio Natural Gas Business to National Fuel Gas Company for $2.62 billion.

Capital Expenditures

• CenterPoint Energy unveiled a record $65 billion capital investment plan for 2026 through 2035, with an additional $10 billion of incremental investment opportunities identified.
• The company expanded its 10-year capital investment plan (2021-2030) from over $40 billion to $53 billion by 2030, driven by increased demand and strategic updates.
• For the full year 2025, CenterPoint Energy expects capital expenditures of approximately $5.3 billion, with a primary focus on electric transmission, resiliency investments, and Texas gas infrastructure to meet growing demand, particularly from data centers.