CenterPoint Energy · Earnings release

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CenterPoint Energy reports

strong Q2 2026 results; provides update on ERCOT’s Batch

Zero process; increases 10-year capital plan; reiterates full-year 2026

guidance

·

Reports Q2 2026 earnings of $0.37 per diluted share on a GAAP basis and $0.40 per

diluted share on a non-GAAP basis (“non-GAAP EPS”)

·

G1Reiterates its 2026 non-GAAP EPS guidance range of at least the midpoint of $1.89-$1.91,

which, at the midpoint, would represent 8% growth over 2025 delivered results 1

·

Highlights over 17 gigawatts of Batch Zero submissions, of which approximately

14 gigawatts are expected to be eligible as base load or studied load

·

Increases 10-year capital investment plan by $1.2 billion without increasing current

equity financing guide; 10-year capital investment plan now totals $66.7 billion

Energy, Inc. (NYSE: CNP), or “CenterPoint,” today reported net income of $244 million, or $0.37 per diluted share, on a GAAP

basis for the second quarter of 2026, compared to $0.30 per diluted share in the comparable period of 2025.

Non-GAAP EPS for the second quarter of 2026 was $0.40

per diluted share, compared to $0.29 per diluted share in the comparable period of 2025. These strong second quarter results were primarily

driven by growth and regulatory recovery, which contributed $0.10 per share of favorability compared to the second quarter of 2025. O&M

contributed $0.02 per share of favorable variance compared to last year. These drivers were partially offset by $0.01 per share of unfavorable

weather and usage and $0.01 per share of unfavorability from increased interest expense over the comparable quarter of 2025. Lastly, other

items contributed $0.01 per share of favorable variance when compared to the second quarter of 2025. This variance was primarily related

to the amortization of deferred equity in connection with previous storm securitizations which was partially offset by other taxes and

equity dilution.

CenterPoint increased its 10-year capital investment

plan by $1.2 billion to $66.7 billion of planned investment from 2026 through 2035, reflecting incremental investment to support accelerating

demand from large load customers in Houston, as well as refined investment estimates for the Downtown Houston Revitalization project.

1 CenterPoint is unable to present a quantitative

reconciliation of forward-looking non-GAAP diluted earnings per share without unreasonable effort because changes in the value of ZENS

(as defined herein) and related securities, future impairments, and other unusual items are not estimable and are difficult to predict

due to various factors outside of management’s control.

1

The company also announced that it submitted over 17 gigawatts of large

load projects through ERCOT’s Batch Zero process, of which approximately 14 gigawatts are expected to be eligible as base load or

studied load. In the aggregate, these approximately 14 gigawatts of projects would represent more than a 65% increase from our current

Houston Electric peak system demand of 21 gigawatts.

“As part of our industry’s unprecedented and dynamic

era of growth, our teams are converting that momentum into tangible results for our customers, large businesses seeking new connections,

and our shareholders. At mid-year, we have delivered strong second quarter results that reflect the strength of our increasing customer-driven

capital plan and the progress we continue to make across our strategic priorities. While we remain laser focused on delivering improvements

in resiliency and reliability for our customers, we know that the most impactful way we can positively affect customer affordability is

to help facilitate regional economic growth and connect more new customers onto our system. We remain confident in our ability to deliver

these positive customer impacts, strong financial results and long-term value,” said Jason Wells, Chair of the Board, President

and CEO of CenterPoint.

“Houston Electric’s growth trajectory continues to underscore

our unique position to help facilitate the region’s continued economic growth. As part of the ERCOT process, we now have approximately

14 gigawatts of eligible base or studied load projected by 2031, which would be over a 65% increase from our current system peak demand.

CenterPoint’s ability to leverage existing system capacity, track record of executing large load connections, and ability to make

targeted investments to unlock additional expansion is allowing us to move at the speed of business and deliver benefits for all customers.

Over the next decade, these new connections are forecasted to meaningfully reduce Houston Electric’s residential and commercial

delivery charges by at least $5 billion. With the $1.2 billion increase to our capital plan and the significant customer demand we continue

to see, we remain confident in our ability to deliver one of the most compelling, tangible and executable growth opportunities in the

utility sector.” concluded Wells.

2

Earnings Outlook

In addition to presenting its financial results in accordance

with GAAP, including presentation of net income or income available to common shareholders (loss) and diluted earnings (loss) per share,

CenterPoint provides guidance based on non-GAAP income and non-GAAP diluted earnings per share. Generally, a non-GAAP financial measure

is a numerical measure of a company’s historical or future financial performance that excludes or includes amounts that are not

normally excluded or included in the most directly comparable GAAP financial measure.

Management evaluates CenterPoint’s financial performance

in part based on non-GAAP income and non-GAAP diluted earnings per share. Management believes that presenting these non-GAAP financial

measures enhances an investor’s understanding of CenterPoint’s overall financial performance by providing them with an additional

meaningful and relevant comparison of current and anticipated future results across periods. The adjustments made in these non-GAAP financial

measures exclude items that management believes do not most accurately reflect the company’s fundamental business performance. These

excluded items are reflected in the reconciliation tables of this news release, where applicable. CenterPoint’s non-GAAP income

and non-GAAP diluted earnings per share measures should be considered as a supplement to, and not as a substitute for, or superior to,

net income and diluted earnings per share, which respectively are the most directly comparable GAAP financial measures. These non-GAAP

financial measures also may be different than non-GAAP financial measures used by other companies.

range

·

◦

Earnings or losses from the change in value of CenterPoint’s 2.0% Zero-Premium

Exchangeable Subordinated Notes due 2029 (“ZENS”) and related securities;

◦

Gains, losses and impacts, including related expenses, associated with mergers and

divestitures, such as the divestiture of our Louisiana and Mississippi natural gas LDC businesses and the announced sale of our Ohio natural

gas LDC business;

◦

Impacts related to temporary emergency electric energy facilities (“TEEEF”)

once they are no longer part of our rate-regulated business.

EPS guidance, CenterPoint does not consider the items noted above and other potential impacts such as changes in accounting standards,

impairments, or other unusual items, which could have a material impact on GAAP reported results for the applicable guidance period. The

2026 non-GAAP EPS guidance range also considers assumptions for certain significant variables that may impact earnings, such as customer

growth and usage including normal weather, throughput, recovery of capital invested, effective tax rates, financing activities and related

interest rates, and regulatory and judicial proceedings. To the extent actual results deviate from these assumptions, the 2026 non-GAAP

EPS guidance range may not be met, or the projected annual non-GAAP EPS growth rate may change. CenterPoint is unable to present a quantitative

reconciliation of forward-looking non-GAAP diluted earnings per share without unreasonable effort because changes in the value of ZENS

and related securities, future impairments, and other unusual items are not estimable and are difficult to predict due to various factors

outside of management’s control.

3

Reconciliation of consolidated net income and diluted earnings

per share (GAAP) to non-GAAP income and non-GAAP diluted earnings per share

Three Months Ended

Dollars in

millions

Diluted

EPS(1)

Consolidated net income and diluted EPS on a GAAP basis

$

$

ZENS-related mark-to-market (gains) losses:

Equity securities (net of tax benefit of $32)(2)(3)

Indexed debt securities (net of tax expense of $31)(2)

)

)

Impacts associated with mergers and divestitures (net of tax expense of $4)(2)

3

Impacts associated with TEEEF Units removed from Rate Base

(net of tax benefit of $5)(4)

Consolidated income and diluted EPS on a non-GAAP basis(5)

$

$

1)

Quarterly diluted EPS on both a GAAP and non-GAAP basis are based on the weighted

average number of shares of common stock outstanding during the quarter, and the sum of the quarters may not equal year-to-date diluted

EPS

2)

Taxes are computed based on the impact removing such item would have on tax expense. Taxes related to

the Ohio natural gas LDC business sale are booked proportionately by applying the projected annual effective tax rate percentage to income

earned each quarter in accordance with GAAP

3)

Comprised of common stock of AT&T Inc., Charter Communications, Inc., and Warner Bros. Discovery,

Inc.

4)

Represents impacts related to temporary emergency electric energy facilities following

the removal of the units from our rate regulated business

5)

The calculation on a per-share basis may not add down due to rounding

Reconciliation of consolidated net income (loss) and diluted

earnings (loss) per share (GAAP) to non-GAAP income and non-GAAP diluted earnings per share

Dollars in

millions

Diluted

EPS(1)

Consolidated net income and diluted EPS on a GAAP basis

$

$

ZENS-related mark-to-market (gains) losses:

Equity securities (net of tax benefit of $22)(2)(3)

Indexed debt securities (net of tax expense of $22)(2)

)

)

Impacts associated with mergers and divestitures (net of tax expense of $11)(2)(4)

Impacts associated with TEEEF Units removed from Rate Base (net of tax benefit of $10)(5)

Consolidated on a non-GAAP basis(6)

$

$

1)

Quarterly diluted EPS on both a GAAP and non-GAAP basis are based on the weighted

average number of shares of common stock outstanding during the quarter, and the sum of the quarters may not equal year-to-date diluted

EPS

2)

Taxes are computed based on the impact removing such item would have on tax expense. Taxes related to

the Ohio natural gas LDC business sale are booked proportionately by applying the projected annual effective tax rate percentage to income

earned each quarter in accordance with GAAP

3)

Comprised of common stock of AT&T Inc., Charter Communications, Inc., and Warner Bros. Discovery,

Inc.

4)

Includes $13 million loss on early debt extinguishment associated with the planned divestiture of the

Ohio natural gas LDC business and removes income tax impacts related to the sale

5)

Represents impacts related to temporary emergency electric energy facilities following

the removal of the units from our rate regulated business

6)

The calculation on a per-share basis may not add down due to rounding

4

Reconciliation of consolidated net income and diluted earnings

per share (GAAP) to non-GAAP income and non-GAAP diluted earnings per share

Three Months Ended

Dollars in

millions

Diluted

EPS(1)

Consolidated net income (loss) and diluted EPS on a GAAP basis

$

$

ZENS-related mark-to-market (gains) losses:

Equity securities (net of

tax expense of $9)(2)(3)

)

)

Indexed debt securities (net of tax benefit of $9)(2)

Impacts associated with mergers and

divestitures (net of tax expense of $12)(2)(4)

)

)

Impacts associated with TEEEF Units removed from Rate Base

(net of tax benefit of $3)(5)

Consolidated income and diluted EPS on a non-GAAP basis(6)

$

$

1)

Quarterly diluted EPS on both a GAAP and non-GAAP basis are based on the weighted

average number of shares of common stock outstanding during the quarter, and the sum of the quarters may not equal year-to-date diluted

EPS

2)

Taxes are computed based on the impact removing such item would have on tax expense. Taxes related to the

Louisiana and Mississippi natural gas LDC business sale are booked proportionately by applying the projected annual effective tax rate

percentage to income earned each quarter in accordance with GAAP. Additional tax expense related primarily to the write-off of non-deductible

goodwill was reflected in tax expense over the remainder of 2025 and excluded from non-GAAP EPS

3)

Comprised of common stock of AT&T Inc., Charter Communications, Inc., and Warner Bros. Discovery,

Inc.

4)

Includes gain on early extinguishment of debt with proceeds from the divestiture

of the Louisiana and Mississippi natural gas LDC businesses

5)

Represents impacts related to temporary emergency electric energy facilities following

the removal of the units from our rate regulated business

6)

The calculation on a per-share basis may not add down due to rounding

Reconciliation of consolidated net income and diluted earnings

per share (GAAP) to non-GAAP income and non-GAAP diluted earnings per share

Twelve Months Ended

Dollars in

millions

Diluted

EPS(1)

Consolidated net income and diluted EPS on a GAAP basis

$

$

ZENS-related mark-to-market (gains) losses:

Equity securities (net of tax benefit of $11)(2)(3)

Indexed

debt securities (net of tax expense of $12)(2)

)

)

Impacts associated with mergers and

divestitures (net of tax expense of $22)(2)(4)

Impacts associated with TEEEF Units removed from Rate Base

(net of tax benefit of $12)(5)

Consolidated income and diluted EPS on a non-GAAP basis(6)

$

$

5

1)

Quarterly diluted EPS on both a GAAP and non-GAAP basis are based on the weighted

average number of shares of common stock outstanding during the quarter, and the sum of the quarters may not equal year-to-date diluted

EPS

2)

Taxes are computed based on the impact removing such item would have on tax expense. Taxes related to the

Louisiana and Mississippi natural gas LDC business sale are booked proportionately by applying the projected annual effective tax rate

percentage to income earned each quarter in accordance with GAAP. Additional tax expense related primarily to the write-off of non-deductible

goodwill was reflected in tax expense over the remainder of 2025 and excluded from non-GAAP EPS

3)

Comprised of common stock of AT&T Inc., Charter Communications, Inc., and Warner Bros. Discovery,

Inc.

4)

Includes $37 million loss on sale associated with the divestiture of our Louisiana and Mississippi natural

gas LDC businesses and gain on early extinguishment of debt with proceeds from the divestiture of the Louisiana and Mississippi natural

gas LDC businesses

5)

Represents impacts related to temporary emergency electric energy facilities following

the removal of the units from our rate regulated business

6)

The calculation on a per-share basis may not add down due to rounding

Filing of Form 10-Q for CenterPoint Energy, Inc.

Today, CenterPoint Energy, Inc. filed with the Securities and Exchange

Commission (“SEC”) its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026. A copy of that report is available

on the company’s website, under the Investors section. Investors and others should note that we may announce material information

using SEC filings, press releases, public conference calls, webcasts, and the Investor Relations page of our website. In the future, we

will continue to use these channels to distribute material information about the company and to communicate important information about

the company, key personnel, corporate initiatives, regulatory updates, and other matters. Information that we post on our website could

be deemed material; therefore, we encourage investors, the media, our customers, business partners and others interested in our company

to review the information we post on our website.

Webcast of Earnings Conference Call

CenterPoint’s management will host an earnings conference

call on July 28, 2026, at 7:00 a.m. Central time / 8:00 a.m. Eastern time. Interested parties may listen to a live audio broadcast of

the conference call on the company’s website under the Investors section. A replay of the call can be accessed approximately two

hours after the completion of the call and will be archived on the website for at least one year.

About CenterPoint Energy, Inc.

As the only investor owned electric and gas utility based

in Texas, CenterPoint Energy, Inc. (NYSE: CNP) is an energy delivery company with electric transmission and distribution, power generation

and natural gas distribution operations that serve more than 7 million metered customers in Indiana, Minnesota, Ohio and Texas. As of

June 30, 2026, the company owned approximately $48.3 billion in assets. With approximately 8,800 employees, CenterPoint Energy and its

predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.

Forward-looking Statements

This news release includes, and the earnings conference call

will include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of

the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact included in this news release

and the earnings conference call are forward-looking statements made in good faith by CenterPoint and are intended to qualify for the

safe harbor from liability established by the Private Securities Litigation Reform Act of 1995, including statements concerning CenterPoint’s

expectations, beliefs, plans, objectives, goals, strategies, future operations, events, financial position, earnings and guidance, growth,

costs, prospects, capital investments or performance or underlying assumptions and other statements that are not historical facts. You

should not place undue reliance on forward-looking statements. When used in this news release and the conference call, the words "anticipate,"

"believe," "continue," "could," "estimate," "expect," "forecast," "goal,"

"intend," "may," "objective," "plan," "potential," "predict," "projection,"

"should," "target," "will" or other similar words are intended to identify forward-looking statements. The

absence of these words, however, does not mean that the statements are not forward-looking.

6

Examples of forward- looking statements in this news

release or on the earnings conference call include statements about CenterPoint’s 10-year capital investment plan and the

projects and programs therein (which include Houston Electric’s Greater Houston Resiliency Initiative, System Resiliency Plan,

the Houston Downtown Revitalization Project, industrial load growth projects, large load customers and 765 kilovolt transmission

projects, and other plans, projects and programs relating to electric transmission, generation, resiliency, reliability, safety, gas

meter upgrades, and system modernization), including the amount of gigawatts expected to be connected to the Houston Electric

system, timing, execution, financing, costs, affordability, and anticipated benefits thereof, including the amount and timing of

anticipated cost savings for customers, regulatory matters relating thereto, including ERCOT’s approval of the amount of

gigawatts to be added to the system, allocation of such gigawatts between base and studied load and the impact to timing of the

energization of such projects as a result, and related matters, other capital investments and opportunities therefor (including with

respect to incremental capital opportunities, deployment of capital, execution, financing and timing of such projects, and

anticipated benefits related thereto), future earnings and guidance, CenterPoint’s goals regarding the resiliency,

reliability, and safety of our electric and gas systems, CenterPoint’s long-term growth rate and plans related thereto,

dividend growth and payouts, customer charges, customer bills and rate affordability (including forecasts of potential customer

savings), operations and maintenance expense reductions, the announced sale of our Ohio natural gas LDC business (including with

respect to timing, anticipated benefits, and related matters, such as the Seller’s Note), anticipated benefits thereof,

regulatory matters including the timing of, projections for, recovery through and anticipated benefits from the settlement of, rate

cases and interim capital trackers for CenterPoint and its subsidiaries (as applicable), base rate growth and population growth and

economic development in CenterPoint’s service territories, CenterPoint’s ability to support economic growth, meet

customer needs and improve customer experiences, Houston Electric’s release of its 15 large 27 megawatt (“MW”) to

32 MW temporary emergency electric energy facilities (“TEEEF”) units to the San Antonio area and its ability to complete

one or more other future transactions involving various sizes of TEEEF units (including with respect to timing, filings related

thereto, corresponding reductions in Houston Electric’s TEEEF fleet capacity, anticipated benefits including with respect to

revenue generation, rates, expected market demand for the units, and related matters), the timing and extent of CenterPoint's

recovery of costs and investments, electric demand growth (including industrial load growth) in CenterPoint’s service

territories (including forecasts and the drivers thereof, our ability to meet capacity needs related thereto, interconnection

requests and projects related thereto and our ability to connect customers, anticipated timing and the speed with which we can

energize such projects and the charges and bills related to such projects, capital investment opportunities related thereto, the

timing of investments related thereto, and anticipated benefits of such growth), transmission planning studies and anticipated

results thereof, financing plans (including in relation to operating cash flow, capital recycling, and the need for, timing of, and

anticipated benefits of any future equity or debt issuances, forward sales, and securitization, credit metrics and parent level

debt), preparation for weather conditions, CenterPoint’s 2.0% Zero-Premium Exchangeable Subordinated Notes due 2029

(“ZENS”) and impacts of the maturity of ZENS, CenterPoint’s credit health, tax structure and liability (including

with respect to the Corporate Alternative Minimum Tax and guidance related thereto), balance sheet health, future financial

condition, financial performance and results of operations, value creation, opportunities and expectations. We have based our

forward-looking statements on our management’s beliefs and assumptions based on information currently available to our

management at the time the statements are made. We caution you that assumptions, beliefs, expectations, intentions, and projections

about future events may and often do vary materially from actual results. Therefore, we cannot assure you that actual results will

not differ materially from those expressed or implied by our forward-looking statements. Each forward-looking statement contained in

this news release or discussed on the earnings conference call speaks only as of the date of this release or the earnings conference

call.

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Some of the factors that could cause actual results

to differ from those expressed or implied by our forward-looking information include, but are not limited to, risks and uncertainties

relating to: (1) the business strategies and strategic initiatives, restructurings, joint ventures and acquisitions or dispositions of

assets or businesses involving CenterPoint or its industry, including the ability to successfully complete such strategies, initiatives,

transactions or plans on the timelines we expect or at all, such as the proposed sale of our Ohio natural gas LDC business, which we

cannot assure you will have the anticipated benefits to us; (2) industrial, commercial and residential growth in CenterPoint’s

service territories and changes in market demand and energy consumption, including in relation to the expansion of data centers, energy

refining and exports, advanced manufacturing and logistics, as well as the effects of energy efficiency measures, technological advances

and demographic patterns, and our ability to appropriately estimate/forecast and effectively manage such demand and the business opportunities

relating to such matters (including the receipt of timely large-load interconnection regulatory approvals) as well as obtain the anticipated

benefits, including related to customer affordability, associated with such demand; (3) the amount of gigawatts projected to be connected

to the Houston Electric system and the timing of such additional large-load customer connections and associated energization; (4) CenterPoint’s

ability to fund and invest planned capital, and the timely recovery of its investments, including those related to CenterPoint’s

10-year capital plan; (5) the ability to execute and complete CenterPoint’s planned capital projects and programs, including those

within CenterPoint’s 10- year capital plan, in a timely and cost-effective manner and within budget, obtain the anticipated benefits

of such projects, and manage costs and impacts of such projects on customer affordability; (6) CenterPoint’s ability to successfully

construct, operate, repair, maintain, replace and restart electric generating facilities, natural gas facilities, TEEEF and electric

transmission facilities; (7) the timing and success of, and the ability to obtain approval for matters relating to, Houston Electric’s

release of its large TEEEF units to the San Antonio area, proposed removal of its medium TEEEF units, reduction of its TEEEF fleet capacity

and reduction of rates to reflect the removal of the large and medium TEEEF units from Houston Electric’s TEEEF fleet, as well

as the ability to complete one or more other future transactions involving the large and medium TEEEF units on acceptable terms and conditions

within the anticipated timeframe; (8) financial market and general economic conditions, including access to debt and equity capital,

economic uncertainty and volatility, inflation, potential for recession, interest rates, and their effect on sales, prices and costs;

(9) disruptions to the global supply chain, labor shortages and scarcity of certain materials, including as a result of changes in U.S.

and foreign trade policy and geopolitical and economic uncertainty or instability, including the conflict involving Iran; (10) actions

by credit rating agencies, including any potential downgrades to credit ratings; (11) the timing and impact of regulatory proceedings

and actions and legal proceedings, including those related to, among other things, Hurricane Beryl, Houston Electric’s TEEEF units

and the February 2021 winter storm event, and requested or favorable adjustments to rates and approval of other requested items as part

of base rate proceedings or interim rate mechanisms; (12) federal, state and local legislative, executive and regulatory actions or developments,

including any actions resulting from Hurricane Beryl, pipeline integrity and safety, actions relating to our facilities and changes in

regulation, legislation and governmental actions pertaining to the utility model (including actions relating to base rate proceedings

or interim rate mechanisms, including the required timing thereof), trade (including tariffs, bans, retaliatory trade measures taken

against the United States or related government action), tax legislation and guidance (including further changes to or clarification

of the One Big Beautiful Bill Act and the Inflation Reduction Act), the implementation of budget and spending cuts to federal government

agencies and programs, effects of government shutdowns, and developments related to the environment; (13) the impact of public health

threats; (14) severe weather events, natural disasters and other climate-related impacts, and CenterPoint’s ability to mitigate

such impacts, including the approval and timing of securitization issuances; (15) damages to our network, facilities and systems, including

as a result of wildfires; (16) changes in business plans; (17) changes to technology and our ability to anticipate, adapt to and implement

technological changes and advances in and our ability to timely adopt, develop and deploy, artificial intelligence; (18) operations and

maintenance costs, our ability to control such costs and cost-related impacts on the affordability of our rates for our customers; (19)

CenterPoint’s ability to timely obtain and maintain necessary land rights, licenses, permits, easements and approvals from landowners

and local, state, federal and other regulatory authorities on acceptable terms and resolve disputes or third-party challenges to such

licenses, permits or approvals, as applicable; (20) CenterPoint’s ability to execute on its strategy, initiatives, targets and

goals, including its energy transition goals and operations and maintenance goals; and (21) other factors discussed in CenterPoint’s

Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and CenterPoint’s Quarterly Report Form 10-Q for the quarters

ended March 31, 2026 and June 30, 2026, including under “Risk Factors,” “Cautionary Statements Regarding Forward-Looking

Information” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Certain

Factors Affecting Future Earnings” in such report and in other filings with the Securities and Exchange Commission (“SEC”)

by CenterPoint, which can be found at www.centerpointenergy.com on the Investor Relations page or on the SEC website at www.sec.gov.

8