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8-K - FORM 8-K - CENTERPOINT ENERGY INCh83986e8vk.htm
Exhibit 99.1
     
(CENTERPOINTENERGY LOG)
  For more information contact
Media:
Leticia Lowe

Phone 713.207.7702
Investors:
Marianne Paulsen

Phone 713.207.6500
For Immediate Release
CENTERPOINT ENERGY REPORTS SECOND QUARTER 2011 EARNINGS
Houston, TX — August 4, 2011 - CenterPoint Energy, Inc. (NYSE: CNP) today reported net income of $119 million, or $0.28 per diluted share, for the second quarter of 2011 compared to $81 million, or $0.20 per diluted share, for the same period of 2010. Operating income for the second quarter of 2011 was $303 million compared to $263 million for the same period of 2010.
“Our company performed well this quarter,” said David M. McClanahan, president and chief executive officer of CenterPoint Energy. “Our regulated electric and natural gas utilities reported solid results and our field services unit continues to realize growth from the investments we have made primarily in the Haynesville shale. We continue to benefit from our balanced portfolio of electric and natural gas assets, and I remain optimistic about future investment opportunities.”
For the six months ended June 30, 2011, net income was $267 million, or $0.62 per diluted share, compared to $195 million, or $0.49 per diluted share, for the same period of 2010. Operating income for the six months ended June 30, 2011, was $667 million compared to $620 million for the same period of 2010.
Electric Transmission & Distribution
The electric transmission & distribution segment reported operating income of $185 million for the second quarter of 2011, consisting of $153 million from the regulated electric transmission & distribution utility operations (TDU) and $32 million related to securitization bonds. Operating income for the second quarter of 2010 was $158 million, consisting of $122 million from the TDU and $36 million related to securitization bonds. Operating income for the TDU benefited from increased usage primarily due to warmer weather, growth of over 32,000 metered customers since June 2010, higher transmission revenues and lower depreciation and amortization expense, partially offset by higher operation and maintenance expenses.
Operating income for the six months ended June 30, 2011, was $286 million, consisting of $221 million from the TDU and $65 million related to securitization bonds. Operating income for the same period of 2010 was $265 million, consisting of $193 million from the TDU and $72 million related to transition bonds.
Natural Gas Distribution
The natural gas distribution segment reported operating income of $13 million for the second quarter of 2011 compared to $10 million for the same period of 2010. Operating income benefited from increased usage in part due to weather, rate changes and growth of over 27,000 metered customers since June 2010, partially offset by increases in operation and maintenance expenses.
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Page 1 of 5


 

     
(CENTERPOINTENERGY LOG)
  For more information contact
Media:
Leticia Lowe

Phone 713.207.7702
Investors:
Marianne Paulsen

Phone 713.207.6500
For Immediate Release
Operating income for the six months ended June 30, 2011, was $155 million compared to $149 million for the same period of 2010.
Interstate Pipelines
The interstate pipelines segment reported operating income of $60 million for the second quarter of 2011 compared to $67 million for the same period of 2010. The decline was due to lower revenues primarily related to an expiring backhaul contract and restructured contracts with our natural gas distribution affiliates, lower off-system sales, and higher operation and maintenance expenses, partially offset by increased ancillary services.
In addition to operating income, this segment recorded equity income of $5 million for the second quarter of 2011 from its 50 percent interest in the Southeast Supply Header (SESH) compared to $4 million for the same period of 2010.
Operating income for the six months ended June 30, 2011, was $136 million compared to $139 million for the same period of 2010. In addition to operating income, this segment recorded equity income of $9 million for the six months ended June 30, 2011, primarily from its 50 percent interest in SESH compared to $7 million for the same period of 2010.
Field Services
The field services segment reported operating income of $39 million for the second quarter of 2011 compared to $31 million for the same period of 2010. Revenue growth from higher gathering volumes, primarily associated with projects in the Haynesville shale, was partially offset by lower prices received from sales of retained gas, as well as increased operation and maintenance and depreciation expenses primarily related to facility expansions.
In addition to operating income, this business had equity income of $3 million for each of the second quarters of 2011 and 2010 from its 50 percent interest in a gathering and processing joint venture (Waskom).
Operating income for the six months ended June 30, 2011, was $75 million compared to $54 million for the same period of 2010. Equity income from the jointly-owned gas processing plant was $5 million for each of the six months ended June 30, 2011 and 2010.
Competitive Natural Gas Sales and Services
The competitive natural gas sales and services segment reported operating income of $3 million for the second quarter of 2011 compared to an operating loss of $6 million for the same period of 2010.
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Page 2 of 5


 

     
(CENTERPOINTENERGY LOG)
  For more information contact
Media:
Leticia Lowe

Phone 713.207.7702
Investors:
Marianne Paulsen

Phone 713.207.6500
For Immediate Release
Operating income for the second quarter of 2011 included gains of $4 million resulting from mark- to-market accounting for derivatives associated with certain forward natural gas purchases and sales used to lock in economic margins, compared to charges of $8 million for the same period of 2010.
Operating income for the six months ended June 30, 2011, was $13 million compared to $9 million for the same period of 2010. Operating income for the six months ended June 30, 2011, included gains of $2 million resulting from mark-to-market accounting compared to charges of $5 million for the same period of 2010.
Dividend Declaration
On July 19, 2011, CenterPoint Energy’s board of directors declared a regular quarterly cash dividend of $0.1975 per share of common stock payable on September 9, 2011, to shareholders of record as of the close of business on August 16, 2011.
Outlook Reaffirmed for 2011
CenterPoint Energy reaffirmed its 2011 earnings guidance of $1.04 to $1.14 per diluted share. This guidance takes into consideration performance to date and various economic and operational assumptions related to the business segments in which the company operates. The company has made certain assumptions regarding financing activities and the impact to earnings of various regulatory proceedings. In providing this guidance, the company has not included the impact of any changes in accounting standards, any impact from significant acquisitions or divestitures, any impact to income from the change in value of Time Warner stocks and the related ZENS securities, or the timing effects of mark-to-market or inventory accounting in the company’s competitive natural gas sales and services business. It also does not reflect the recording of the Texas Supreme Court’s decision in the TDU’s true-up appeal. For the impact of these factors on the company’s earnings for the three and six months ended June 30, 2011, see the attached reconciliation.
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 period ended June 30, 2011. A copy of that report is available on the company’s website, under the Investors section. Other filings the company makes with the SEC and other documents relating to its corporate governance can also be found on that site.
Webcast of Earnings Conference Call
CenterPoint Energy’s management will host an earnings conference call on Thursday, August 4, 2011, at 10:30 a.m. Central time or 11:30 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
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Page 3 of 5


 

     
(CENTERPOINTENERGY LOG)
  For more information contact
Media:
Leticia Lowe

Phone 713.207.7702
Investors:
Marianne Paulsen

Phone 713.207.6500
For Immediate Release
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.
CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution, competitive natural gas sales and services, interstate pipelines, and field services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma and Texas. Assets total more than $19 billion. With over 8,800 employees, CenterPoint Energy and its predecessor companies have been in business for more than 135 years. For more information, visit the company’s website at CenterPointEnergy.com.
This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual events and results may differ materially from those expressed or implied by these forward-looking statements. The statements in this news release regarding the company’s earnings outlook for 2011 and future financial performance and results of operations and any other statements that are not historical facts are forward-looking statements. Each forward-looking statement contained in this news release speaks only as of the date of this release. Factors that could affect actual results include (1) the resolution of the true-up proceedings, including, future actions by the Public Utility Commission of Texas in response to the decisions by the Texas Supreme Court and the Texas Third Court of Appeals, and any further appeals thereof; (2) state and federal legislative and regulatory actions or developments relating to the environment, including those related to global climate change; (3) other state and federal legislative and regulatory actions or developments affecting various aspects of CenterPoint Energy’s businesses, including, among others, energy deregulation or re-regulation, pipeline safety, health care reform, financial reform and tax legislation; (4) timely and appropriate rate actions and increases, allowing recovery of costs and a reasonable return on investment; (5) the timing and outcome of any audits, disputes or other proceedings related to taxes; (6) problems with construction, implementation of necessary technology or other issues with respect to major capital projects that result in delays or in cost overruns that cannot be recouped in rates; (7) industrial, commercial and residential growth in CenterPoint Energy’s service territories and changes in market demand, including the effects of energy efficiency measures, and demographic patterns; (8) the timing and extent of changes in commodity prices, particularly natural gas and natural gas liquids, and the effects of geographic and seasonal commodity price differentials; (9) the timing and extent of changes in the supply of natural gas, including supplies available for gathering by CenterPoint Energy’s field services business and transporting by its interstate pipelines; (10) weather variations and other natural phenomena; (11) the impact of unplanned facility outages; (12) timely and appropriate regulatory actions allowing securitization or other recovery of costs associated with any future hurricanes or natural disasters; (13) changes in interest rates or rates of inflation; (14) commercial bank and financial market conditions, CenterPoint Energy’s access to capital, the cost of such capital, and the results of our financing and refinancing efforts, including availability of funds in the debt capital markets; (15) actions by rating agencies; (16) effectiveness of CenterPoint Energy’s risk management activities; (17) inability of various counterparties to meet their obligations; (18) non-payment for services due to financial distress of CenterPoint Energy’s customers; (19) the ability of GenOn Energy, Inc. (formerly known as RRI Energy, Inc.) and its subsidiaries to satisfy their obligations to CenterPoint Energy and its subsidiaries; (20) the ability of retail electric providers, and particularly the two largest customers of the TDU, to satisfy their obligations to CenterPoint Energy and its subsidiaries; (21) the outcome of litigation brought by or against CenterPoint Energy; (22) CenterPoint Energy’s ability to control costs; (23) the investment performance of pension and postretirement benefit plans; (24) potential business strategies, including restructurings, acquisitions or dispositions of assets or businesses; (25) acquisition and merger activities; and (26) other factors discussed in CenterPoint Energy’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010, and Forms 10-Q for the quarters ended March 31, 2011, and June 30, 2011, and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.
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Page 4 of 5


 

     
(CENTERPOINTENERGY LOG)
  For more information contact
Media:
Leticia Lowe

Phone 713.207.7702
Investors:
Marianne Paulsen

Phone 713.207.6500
For Immediate Release
CenterPoint Energy, Inc. and Subsidiaries
Reconciliation of reported Net Income and diluted EPS to the basis used in providing 2011 annual earnings guidance
                                 
    Quarter Ended     Six Months Ended  
    June 30, 2011     June 30, 2011  
    Net Income     EPS     Net Income     EPS  
    (in millions)             (in millions)          
As reported
  $ 119     $ 0.28     $ 267     $ 0.62  
Timing effects impacting CES(1):
                               
Mark-to-market (gains) losses — natural gas derivative contracts
    (3 )     (0.01 )     (1 )     (0.00 )
Natural gas inventory write-downs
                       
ZENS-related mark-to-market (gains) losses:
                               
Marketable securities(2)
    (12 )     (0.03 )     (33 )     (0.07 )
Indexed debt securities
                15       0.03  
 
                       
Per the basis used in providing 2011 annual earnings guidance
  $ 104     $ 0.24     $ 248     $ 0.58  
 
                       
 
(1)   Competitive natural gas sales and services
 
(2)   Time Warner Inc., Time Warner Cable Inc. and AOL Inc.
###

Page 5 of 5


 

CenterPoint Energy, Inc. and Subsidiaries
Statements of Consolidated Income
(Millions of Dollars)
(Unaudited)
                                 
    Quarter Ended     Six Months Ended  
    June 30,     June 30,  
    2010     2011     2010     2011  
Revenues:
                               
Electric Transmission & Distribution
  $ 562     $ 606     $ 1,044     $ 1,095  
Natural Gas Distribution
    465       452       2,002       1,664  
Competitive Natural Gas Sales and Services
    560       586       1,412       1,292  
Interstate Pipelines
    148       142       286       289  
Field Services
    80       98       148       188  
Other Operations
    3       3       6       6  
Eliminations
    (62 )     (50 )     (119 )     (110 )
 
                       
Total
    1,756       1,837       4,779       4,424  
 
                       
 
                               
Expenses:
                               
Natural gas
    778       778       2,713       2,254  
Operation and maintenance
    410       446       824       885  
Depreciation and amortization
    217       223       417       424  
Taxes other than income taxes
    88       87       205       194  
 
                       
Total
    1,493       1,534       4,159       3,757  
 
                       
Operating Income
    263       303       620       667  
 
                       
 
                               
Other Income (Expense) :
                               
Gain (loss) on marketable securities
    (22 )     18       16       50  
Gain (loss) on indexed debt securities
    32             5       (23 )
Interest and other finance charges
    (121 )     (111 )     (243 )     (227 )
Interest on transition and system restoration bonds
    (36 )     (32 )     (72 )     (65 )
Equity in earnings of unconsolidated affiliates
    7       8       12       14  
Other — net
    3       4       4       9  
 
                       
Total
    (137 )     (113 )     (278 )     (242 )
 
                       
 
                               
Income Before Income Taxes
    126       190       342       425  
 
                               
Income Tax Expense
    45       71       147       158  
 
                       
 
                               
Net Income
  $ 81     $ 119     $ 195     $ 267  
 
                       
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.

 


 

CenterPoint Energy, Inc. and Subsidiaries
Selected Data From Statements of Consolidated Income
(Millions of Dollars, Except Share and Per Share Amounts)
(Unaudited)
                                 
    Quarter Ended     Six Months Ended  
    June 30,     June 30,  
    2010     2011     2010     2011  
Basic Earnings Per Common Share
  $ 0.20     $ 0.28     $ 0.49     $ 0.63  
 
                       
 
                               
Diluted Earnings Per Common Share
  $ 0.20     $ 0.28     $ 0.49     $ 0.62  
 
                       
 
                               
Dividends Declared per Common Share
  $ 0.1950     $ 0.1975     $ 0.390     $ 0.395  
 
                               
Weighted Average Common Shares Outstanding (000):
                               
- Basic
    399,515       425,638       396,203       425,330  
- Diluted
    401,993       428,284       398,689       427,954  
 
                               
Operating Income (Loss) by Segment
                               
 
                               
Electric Transmission & Distribution:
                               
Electric Transmission and Distribution Operations
  $ 122     $ 153     $ 193     $ 221  
Transition and System Restoration Bond Companies
    36       32       72       65  
 
                       
Total Electric Transmission & Distribution
    158       185       265       286  
Natural Gas Distribution
    10       13       149       155  
Competitive Natural Gas Sales and Services
    (6 )     3       9       13  
Interstate Pipelines
    67       60       139       136  
Field Services
    31       39       54       75  
Other Operations
    3       3       4       2  
 
                       
 
                               
Total
  $ 263     $ 303     $ 620     $ 667  
 
                       
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.

 


 

CenterPoint Energy, Inc. and Subsidiaries
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
                                                 
    Electric Transmission & Distribution  
    Quarter Ended             Six Months Ended        
    June 30,     % Diff     June 30,     % Diff  
    2010     2011     Fav/(Unfav)     2010     2011     Fav/(Unfav)  
Results of Operations:
                                               
Revenues:
                                               
Electric transmission and distribution utility
  $ 449     $ 489       9 %   $ 835     $ 889       6 %
Transition and system restoration bond companies
    113       117       4 %     209       206       (1 %)
 
                                       
Total
    562       606       8 %     1,044       1,095       5 %
 
                                       
 
                                               
Expenses:
                                               
Operation and maintenance
    204       219       (7 %)     394       427       (8 %)
Depreciation and amortization
    71       66       7 %     144       137       5 %
Taxes other than income taxes
    52       51       2 %     104       104        
Transition and system restoration bond companies
    77       85       (10 %)     137       141       (3 %)
 
                                       
Total
    404       421       (4 %)     779       809       (4 %)
 
                                       
Operating Income
  $ 158     $ 185       17 %   $ 265     $ 286       8 %
 
                                       
 
                                               
Operating Income:
                                               
Electric transmission and distribution operations
  $ 122     $ 153       25 %   $ 193     $ 221       15 %
Transition and system restoration bond companies
    36       32       (11 %)     72       65       (10 %)
 
                                       
Total Segment Operating Income
  $ 158     $ 185       17 %   $ 265     $ 286       8 %
 
                                       
 
                                               
Electric Transmission & Distribution
                                               
Operating Data:
                                               
Actual MWH Delivered
                                               
Residential
    7,064,276       7,784,631       10 %     12,237,273       12,655,884       3 %
Total
    20,173,782       21,077,489       4 %     36,610,092       37,845,457       3 %
 
                                               
Weather (average for service area):
                                               
Percentage of 10-year average:
                                               
Cooling degree days
    109 %     123 %     14 %     99 %     126 %     27 %
Heating degree days
    78 %     33 %     (45 %)     160 %     106 %     (54 %)
 
                                               
Number of metered customers — end of period:
                                               
Residential
    1,866,699       1,895,852       2 %     1,866,699       1,895,852       2 %
Total
    2,113,695       2,145,979       2 %     2,113,695       2,145,979       2 %
                                                 
    Natural Gas Distribution  
    Quarter Ended             Six Months Ended        
    June 30,     % Diff     June 30,     % Diff  
    2010     2011     Fav/(Unfav)     2010     2011     Fav/(Unfav)  
Results of Operations:
                                               
Revenues
  $ 465     $ 452       (3 %)   $ 2,002     $ 1,664       (17 %)
 
                                       
Expenses:
                                               
Natural gas
    244       218       11 %     1,383       1,036       25 %
Operation and maintenance
    144       157       (9 %)     311       325       (5 %)
Depreciation and amortization
    44       41       7 %     84       83       1 %
Taxes other than income taxes
    23       23             75       65       13 %
 
                                       
Total
    455       439       4 %     1,853       1,509       19 %
 
                                       
Operating Income
  $ 10     $ 13       30 %   $ 149     $ 155       4 %
 
                                       
 
                                               
Natural Gas Distribution Operating Data:
                                               
Throughput data in BCF
                                               
Residential
    16       20       25 %     112       110       (2 %)
Commercial and Industrial
    49       51       4 %     136       139       2 %
 
                                       
Total Throughput
    65       71       9 %     248       249        
 
                                       
 
                                               
Weather (average for service area)
                                               
Percentage of 10-year average:
                                               
Heating degree days
    66 %     101 %     35 %     111 %     107 %     (4 %)
 
                                               
Number of customers — end of period:
                                               
Residential
    2,973,013       3,000,665       1 %     2,973,013       3,000,665       1 %
Commercial and Industrial
    244,089       243,629             244,089       243,629        
 
                                       
Total
    3,217,102       3,244,294       1 %     3,217,102       3,244,294       1 %
 
                                       
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.

 


 

CenterPoint Energy, Inc. and Subsidiaries
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
                                                 
    Competitive Natural Gas Sales and Services  
    Quarter Ended             Six Months Ended        
    June 30,     % Diff     June 30,     % Diff  
    2010     2011     Fav/(Unfav)     2010     2011     Fav/(Unfav)  
Results of Operations:
                                               
Revenues
  $ 560     $ 586       5 %   $ 1,412     $ 1,292       (8 %)
 
                                       
Expenses:
                                               
Natural gas
    554       571       (3 %)     1,380       1,256       9 %
Operation and maintenance
    10       11       (10 %)     19       21       (11 %)
Depreciation and amortization
    1       1             2       2        
Taxes other than income taxes
    1             100 %     2             100 %
 
                                       
Total
    566       583       (3 %)     1,403       1,279       9 %
 
                                       
Operating Income (Loss)
  $ (6 )   $ 3       150 %   $ 9     $ 13       44 %
 
                                       
 
                                               
Competitive Natural Gas Sales and Services
                                               
Operating Data:
                                               
Throughput data in BCF
    128       126       (2 %)     269       281       4 %
 
                                       
 
                                               
Number of customers — end of period
    11,694       12,152       4 %     11,694       12,152       4 %
 
                                       
                                                 
    Interstate Pipelines  
    Quarter Ended             Six Months Ended        
    June 30,     % Diff     June 30,     % Diff  
    2010     2011     Fav/(Unfav)     2010     2011     Fav/(Unfav)  
Results of Operations:
                                               
Revenues
  $ 148     $ 142       (4 %)   $ 286     $ 289       1 %
 
                                       
Expenses:
                                               
Natural gas
    24       21       13 %     34       39       (15 %)
Operation and maintenance
    35       39       (11 %)     70       70        
Depreciation and amortization
    13       14       (8 %)     26       27       (4 %)
Taxes other than income taxes
    9       8       11 %     17       17        
 
                                       
Total
    81       82       (1 %)     147       153       (4 %)
 
                                       
Operating Income
  $ 67     $ 60       (10 %)   $ 139     $ 136       (2 %)
 
                                       
 
                                               
Equity in earnings of unconsolidated affiliates
  $ 4     $ 5       25 %   $ 7     $ 9       29 %
 
                                       
 
                                               
Pipelines Operating Data:
                                               
Throughput data in BCF
                                               
Transportation
    400       396       (1 %)     838       852       2 %
 
                                       
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.

 


 

CenterPoint Energy, Inc. and Subsidiaries
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
                                                 
    Field Services  
    Quarter Ended             Six Months Ended        
    June 30,     % Diff     June 30,     % Diff  
    2010     2011     Fav/(Unfav)     2010     2011     Fav/(Unfav)  
Results of Operations:
                                               
Revenues
  $ 80     $ 98       23 %   $ 148     $ 188       27 %
 
                                       
Expenses:
                                               
Natural gas
    18       18             34       33       3 %
Operation and maintenance
    25       29       (16 %)     46       58       (26 %)
Depreciation and amortization
    5       10       (100 %)     11       19       (73 %)
Taxes other than income taxes
    1       2       (100 %)     3       3        
 
                                       
Total
    49       59       (20 %)     94       113       (20 %)
 
                                       
Operating Income
  $ 31     $ 39       26 %   $ 54     $ 75       39 %
 
                                       
 
                                               
Equity in earnings of unconsolidated affiliates
  $ 3     $ 3           $ 5     $ 5        
 
                                       
 
                                               
Field Services Operating Data:
                                               
Throughput data in BCF
                                               
Gathering
    156       197       26 %     284       380       34 %
 
                                       
                                                 
    Other Operations  
    Quarter Ended             Six Months Ended        
    June 30,     % Diff     June 30,     % Diff  
    2010     2011     Fav/(Unfav)     2010     2011     Fav/(Unfav)  
Results of Operations:
                                               
Revenues
  $ 3     $ 3           $ 6     $ 6        
Expenses
                      2       4       (100 %)
 
                                       
Operating Income
  $ 3     $ 3           $ 4     $ 2       (50 %)
 
                                       
Capital Expenditures by Segment
(Millions of Dollars)
(Unaudited)
                                 
    Quarter Ended     Six Months Ended  
    June 30,     June 30,  
    2010     2011     2010     2011  
Capital Expenditures by Segment
                               
Electric Transmission & Distribution
  $ 101     $ 124     $ 196     $ 230  
Natural Gas Distribution
    45       75       74       126  
Competitive Natural Gas Sales and Services
    1       3       1       3  
Interstate Pipelines
    32       21       40       39  
Field Services
    220       30       341       99  
Other Operations
    3       8       7       17  
 
                       
Total
  $ 402     $ 261     $ 659     $ 514  
 
                       
(Millions of Dollars)
(Unaudited)
                                 
    Quarter Ended     Six Months Ended  
    June 30,     June 30,  
    2010     2011     2010     2011  
Interest Expense Detail
                               
Amortization of Deferred Financing Cost
  $ 5     $ 6     $ 12     $ 13  
Capitalization of Interest Cost
            (2 )     (1 )     (3) (3)
Transition and System Restoration Bond Interest Expense
    36       32       72       65  
Other Interest Expense
    118       106       234       217  
 
                       
Total Interest Expense
  $ 157     $ 143     $ 315     $ 292  
 
                       
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.

 


 

CenterPoint Energy, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Millions of Dollars)
(Unaudited)
                 
    December 31,     June 30,  
    2010     2011  
ASSETS
               
Current Assets:
               
Cash and cash equivalents
  $ 199     $ 190  
Other current assets
    2,383       1,852  
 
           
Total current assets
    2,582       2,042  
 
           
 
               
Property, Plant and Equipment, net
    11,732       11,981  
 
           
 
               
Other Assets:
               
Goodwill
    1,696       1,696  
Regulatory assets
    3,446       3,315  
Other non-current assets
    655       643  
 
           
Total other assets
    5,797       5,654  
 
           
Total Assets
  $ 20,111     $ 19,677  
 
           
 
               
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
 
               
Current Liabilities:
               
Short-term borrowings
  $ 53     $ 109  
Current portion of transition and system restoration bonds long-term debt
    283       294  
Current portion of indexed debt
    126       128  
Current portion of other long-term debt
    19       46  
Other current liabilities
    2,139       1,784  
 
           
Total current liabilities
    2,620       2,361  
 
           
 
               
Other Liabilities:
               
Accumulated deferred income taxes, net
    2,934       3,148  
Regulatory liabilities
    989       1,031  
Other non-current liabilities
    1,369       1,314  
 
           
Total other liabilities
    5,292       5,493  
 
           
Long-term Debt:
               
Transition and system restoration bonds
    2,522       2,371  
Other
    6,479       6,139  
 
           
Total long-term debt
    9,001       8,510  
 
           
 
               
Shareholders’ Equity
    3,198       3,313  
 
           
Total Liabilities and Shareholders’ Equity
  $ 20,111     $ 19,677  
 
           
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.

 


 

CenterPoint Energy, Inc. and Subsidiaries
Condensed Statements of Consolidated Cash Flows
(Millions of Dollars)
(Unaudited)
                 
    Six Months Ended June 30,  
    2010     2011  
Cash Flows from Operating Activities:
               
Net income
  $ 195     $ 267  
Adjustments to reconcile net income to net cash provided by operating activities:
               
Depreciation and amortization
    431       439  
Deferred income taxes
    (37 )     209  
Changes in net regulatory assets
    26       15  
Changes in other assets and liabilities
    195       196  
Other, net
    8       11  
 
           
Net Cash Provided by Operating Activities
    818       1,137  
 
               
Net Cash Used in Investing Activities
    (719 )     (572 )
 
               
Net Cash Used in Financing Activities
    (256 )     (574 )
 
           
 
               
Net Decrease in Cash and Cash Equivalents
    (157 )     (9 )
 
               
Cash and Cash Equivalents at Beginning of Period
    740       199  
 
               
 
           
Cash and Cash Equivalents at End of Period
  $ 583     $ 190  
 
           
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.