Earnings Per Share (CenterPoint Energy)

6 Months Ended

Jun. 30, 2024

Basic earnings per common share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding during the period. Participating securities are excluded from weighted average number of common shares outstanding in the computation of basic earnings per common share. Diluted earnings per common share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding, including all potentially dilutive common shares, if the effect of such common shares is dilutive.

Diluted earnings per common share reflects the dilutive effect of potential common shares from share-based awards. The dilutive effect of restricted stock is computed using the if-converted method, which assumes conversion of the restricted stock at the beginning of the period. The dilutive effect of restricted stock is computed using the treasury stock method, as applicable, which includes the incremental shares that would be hypothetically vested in excess of the number of shares assumed to be hypothetically repurchased with the assumed proceeds.

Diluted earnings per common share will also reflect the dilutive effect of potential common shares from the conversion of the Convertible Notes. Convertible debt in which the principal amount must be settled in cash is excluded from the calculation of diluted earnings per common share. There would be no interest expense adjustment to the numerator for the cash-settled portion of the Convertible Notes because that portion will always be settled in cash. The conversion spread value in shares will be included in diluted earnings per common share using the if-converted method if the convertible debt is in the money. The denominator of diluted earnings per common share is determined by dividing the conversion spread value of the share-settled portion of the Convertible Notes as of the reporting date by the average share price over the reporting period. For the three and six months ended June 30, 2024, the convertible debt was not in the money; therefore, no incremental shares were assumed converted or included in the diluted earnings per share calculation below. For further details about the Convertible Notes, see Note 11.

The following table reconciles numerators and denominators of CenterPoint Energy’s basic and diluted earnings per common share.


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
	(in millions, except per share and share amounts)
Numerator:
Net income	$	228	$	118	$	578	$	443
Less: Preferred stock dividend requirement (Note 18)	—		12		—		24







Income available to common shareholders – basic and diluted	$	228	$	106	$	578	$	419
Denominator:
Weighted average common shares outstanding – basic	640,754,000		631,057,000		636,491,000		630,685,000
Plus: Incremental shares from assumed conversions:
Restricted stock	1,062,000		1,948,000		1,402,000		2,345,000


Weighted average common shares outstanding – diluted	641,816,000		633,005,000		637,893,000		633,030,000







Earnings Per Common Share:


Basic Earnings Per Common Share	$	0.36	$	0.17	$	0.91	$	0.66


Diluted Earnings Per Common Share	$	0.36	$	0.17	$	0.91	$	0.66