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Exhibit 99.1
     
(CENTERPOINT ENERGY LOGO)
  For more information contact
Media:
Leticia Lowe

Phone 713.207.7702
Investors:
Marianne Paulsen

Phone 713.207.6500
 
For Immediate Release   Page 1 of 6
CENTERPOINT ENERGY REPORTS THIRD QUARTER 2011 EARNINGS
Houston, TX — November 2, 2011 - CenterPoint Energy, Inc. (NYSE: CNP) today reported net income of $973 million, or $2.27 per diluted share, for the third quarter of 2011 compared to $123 million, or $0.29 per diluted share, for the same period of 2010. The third quarter of 2011 includes net income of $811 million, or $1.89 per diluted share, reflecting the final resolution of the appeals of the 2004 true-up order of the Texas Public Utility Commission (Texas PUC) issued in connection with the restructuring of the Texas electric industry. Excluding this amount, net income would have been $162 million, or $0.38 per diluted share, for the third quarter of 2011 compared to $123 million, or $0.29 per diluted share, for the same period of 2010.
Operating income for the third quarter of 2011 was $357 million compared to $327 million for the same period of 2010.
“This was a significant quarter for our company,” said David M. McClanahan, president and chief executive officer of CenterPoint Energy. “We resolved the long-standing proceeding arising from the restructuring of the electric industry in Texas. As a result, we expect to issue an additional $1.695 billion in transition bonds later this year or early next year, and have booked $811 million in net income this year and will recognize another $258 million over time. Operationally, our regulated electric and natural gas utilities reported solid results and our field services unit continued to realize growth from the investments we made in the Haynesville and Fayetteville shales. We continue to look for opportunities to invest across our portfolio of electric and natural gas businesses and build value for our shareholders.”
For the nine months ended September 30, 2011, net income was $1.24 billion, or $2.89 per diluted share, compared to $318 million, or $0.78 per diluted share, for the same period of 2010. Excluding the effects of the resolution of the true-up proceeding described above, net income would have been $429 million, or $1.00 per diluted share, for the nine months ended September 30, 2011, compared to $318 million, or $0.78 per diluted share, for the same period of 2010.
Operating income for the nine months ended September 30, 2011, was $1.024 billion compared to $947 million for the same period of 2010.
Electric Transmission & Distribution
The electric transmission & distribution segment reported operating income of $244 million for the third quarter of 2011, consisting of $213 million from the regulated electric transmission & distribution utility operations (TDU) and $31 million related to securitization bonds. Operating income for the third quarter of 2010 was $212 million, consisting of $178 million from the TDU and $34 million related to securitization bonds. Operating income for the TDU benefited from increased
-more-

 


 

     
(CENTERPOINT ENERGY LOGO)
  For more information contact
Media:
Leticia Lowe

Phone 713.207.7702
Investors:
Marianne Paulsen

Phone 713.207.6500
     
For Immediate Release   Page 2 of 6
usage primarily due to warmer weather, growth of over 35,000 metered customers since September 2010 and lower depreciation and amortization expense. These gains were partially offset by higher operation and maintenance expenses primarily related to increased labor, benefits and transmission expenses.
Operating income for the nine months ended September 30, 2011, was $530 million, consisting of $434 million from the TDU and $96 million related to securitization bonds. Operating income for the same period of 2010 was $477 million, consisting of $371 million from the TDU and $106 million related to securitization bonds.
Natural Gas Distribution
The natural gas distribution segment reported an operating loss of $2 million for the third quarter of 2011 compared to a loss of $4 million for the same period of 2010. The operating loss improved due to lower operation and maintenance expenses, primarily reduced bad debt expenses. Due to seasonal impacts, this segment typically reports a loss in the third quarter.
Operating income for the nine months ended September 30, 2011, was $153 million compared to $145 million for the same period of 2010.
Interstate Pipelines
The interstate pipelines segment reported operating income of $60 million for the third quarter of 2011 compared to $68 million for the same period of 2010. The decline was due to lower revenues primarily related to an expired backhaul contract, restructured contracts with our natural gas distribution affiliates and lower off-system sales. These declines were partially offset by increased ancillary services and lower operation and maintenance expenses.
In addition to operating income, this segment recorded equity income of $6 million for the third quarter of 2011 from its 50 percent interest in the Southeast Supply Header (SESH) compared to $8 million for the same period of 2010.
Operating income for the nine months ended September 30, 2011, was $196 million compared to $207 million for the same period of 2010. In addition to operating income, this segment recorded equity income of $15 million for each of the nine months ended September 30, 2011, and 2010 from its 50 percent interest in SESH.
Field Services
The field services segment reported operating income of $61 million for the third quarter of 2011 compared to $40 million for the same period of 2010. Operating income benefited from higher
-more-

 


 

     
(CENTERPOINT ENERGY LOGO)
  For more information contact
Media:
Leticia Lowe

Phone 713.207.7702
Investors:
Marianne Paulsen

Phone 713.207.6500
     
For Immediate Release   Page 3 of 6
gathering volumes in the Haynesville and Fayetteville shales, revenues attributable to throughput volume commitments and lower operation and maintenance expenses. These gains were partially offset by lower prices received from sales of retained gas and higher depreciation and amortization expenses primarily related to facility expansions.
In addition to operating income, this business had equity income of $2 million for the third quarter of 2011 from its 50 percent interest in a gathering and processing joint venture (Waskom) compared to $3 million for the same period of 2010.
Operating income for the nine months ended September 30, 2011, was $136 million compared to $94 million for the same period of 2010. Equity income from Waskom was $7 million for the nine months ended September 30, 2011, compared to $8 million for the same period of 2010.
Competitive Natural Gas Sales and Services
The competitive natural gas sales and services segment reported an operating loss of $10 million for the third quarter of 2011 compared to operating income of $7 million for the same period of 2010. The third quarter of 2011 included gains of $6 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 gains of $19 million for the same period of 2010. The third quarter of 2011 also included a $7 million write-down of natural gas inventory to the lower of average cost or market compared to a $6 million write-down in the same period of 2010. Basis spreads on pipeline transportation opportunities remain depressed and continue to negatively impact this segment’s results.
Operating income for the nine months ended September 30, 2011, was $3 million compared to $16 million for the same period of 2010. Operating income for the nine months ended September 30, 2011, included gains of $8 million resulting from mark-to-market accounting compared to gains of $14 million for the same period of 2010. The nine months ended September 30, 2011, included a $7 million write-down of natural gas inventory compared to a $6 million write-down in the same period of 2010.
Resolution of True-up Remand Proceeding
On October 13, 2011, the Texas PUC approved a final order resolving all issues raised in connection with the Texas Supreme Court’s remand of the Texas PUC’s 2004 true-up order. Pursuant to the final order, the company is entitled to recover an additional true-up balance of $1.695 billion, less certain expenses. On October 27, 2011, the Texas PUC approved a financing order that authorizes the company to issue transition bonds to securitize the approved true-up amounts. In the third quarter of 2011, the company recorded net income of $811 million related to the true-up remand. An additional $258 million in net income will be recognized over the life of the transition bonds.
-more-

 


 

     
(CENTERPOINT ENERGY LOGO)
  For more information contact
Media:
Leticia Lowe

Phone 713.207.7702
Investors:
Marianne Paulsen

Phone 713.207.6500
     
For Immediate Release   Page 4 of 6
Dividend Declaration
On October 26, 2011, CenterPoint Energy’s board of directors declared a regular quarterly cash dividend of $0.1975 per share of common stock payable on December 9, 2011, to shareholders of record as of the close of business on November 16, 2011.
Outlook for 2011
Excluding the effects of the resolution of the true-up proceeding, CenterPoint Energy expects its 2011 earnings to be at the high end of its guidance range 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 and inventory accounting in the company’s competitive natural gas sales and services business. For the impact of these factors on the company’s earnings for the three and nine months ended September 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 September 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 Wednesday, November 2, 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 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.
-more-

 


 

     
(CENTERPOINT ENERGY LOGO)
  For more information contact
Media:
Leticia Lowe

Phone 713.207.7702
Investors:
Marianne Paulsen

Phone 713.207.6500
     
For Immediate Release   Page 5 of 6
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 nearly $21 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, the anticipated issuance of transition bonds to recover the amount authorized in the true-up remand proceeding, 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) 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; (2) state and federal legislative and regulatory actions or developments relating to the environment, including those related to global climate change; (3) timely and appropriate rate actions and increases, allowing recovery of costs and a reasonable return on investment; (4) factors that may impact the timing and completion of the contemplated transition bond offering, including actions by the Texas PUC, any appeals of the financing order issued by the Texas PUC and future market conditions; (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, including the effects on re-contracting available capacity on CenterPoint Energy’s interstate pipelines; (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 direct or indirect effects on CenterPoint Energy’s facilities, operations and financial condition resulting from terrorism, cyber attacks, data security breaches or other attempts to disrupt its businesses or the businesses of third parties, or other catastrophic events; (12) the impact of unplanned facility outages; (13) timely and appropriate regulatory actions allowing securitization or other recovery of costs associated with any future hurricanes or natural disasters; (14) changes in interest rates or rates of inflation; (15) 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; (16) actions by rating agencies; (17) effectiveness of CenterPoint Energy’s risk management activities; (18) inability of various counterparties to meet their obligations; (19) non-payment for services due to financial distress of CenterPoint Energy’s customers; (20) 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; (21) 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; (22) the outcome of litigation brought by or against CenterPoint Energy; (23) CenterPoint Energy’s ability to control costs; (24) the investment performance of pension and postretirement benefit plans; (25) potential business strategies, including restructurings, acquisitions or dispositions of assets or businesses; (26) acquisition and merger activities; and (27) 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, June 30, 2011, and September 30, 2011, and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.
-more-

 


 

     
(CENTERPOINT ENERGY LOGO)
  For more information contact
Media:
Leticia Lowe

Phone 713.207.7702
Investors:
Marianne Paulsen

Phone 713.207.6500
     
For Immediate Release   Page 6 of 6
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     Nine Months Ended  
    September 30, 2011     September 30, 2011  
    Net Income     EPS     Net Income     EPS  
    (in millions)             (in millions)          
As reported
  $ 973     $ 2.27     $ 1,240     $ 2.89  
True-up related items:
                               
Debt component return, net of taxes
    (224 )     (0.52 )     (224 )     (0.52 )
Extraordinary item, net of taxes
    (587 )     (1.37 )     (587 )     (1.37 )
 
                       
Excluding true-up related items
  $ 162     $ 0.38     $ 429     $ 1.00  
 
                       
 
                               
Timing effects impacting CES(1):
                               
Mark-to-market (gains) losses — natural gas derivative contracts
    (4 )     (0.01 )     (5 )     (0.01 )
Natural gas inventory write-downs
    4       0.01       4       0.01  
ZENS-related mark-to-market (gains) losses:
                               
Marketable securities(2)
    52       0.12       19       0.05  
Indexed debt securities
    (57 )     (0.13 )     (42 )     (0.10 )
 
                       
Per the basis used in providing 2011 annual earnings guidance
  $ 157     $ 0.37     $ 405     $ 0.95  
 
                       
 
(1)   Competitive natural gas sales and services
 
(2)   Time Warner Inc., Time Warner Cable Inc. and AOL Inc.
###

 


 

CenterPoint Energy, Inc. and Subsidiaries
Statements of Consolidated Income
(Millions of Dollars)
(Unaudited)
                                 
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2010     2011     2010     2011  
Revenues:
                               
Electric Transmission & Distribution
  $ 655     $ 707     $ 1,699     $ 1,802  
Natural Gas Distribution
    398       384       2,400       2,048  
Competitive Natural Gas Sales and Services
    647       584       2,059       1,876  
Interstate Pipelines
    170       135       456       424  
Field Services
    94       117       242       305  
Other Operations
    3       3       9       9  
Eliminations
    (59 )     (49 )     (178 )     (159 )
 
                       
Total
    1,908       1,881       6,687       6,305  
 
                       
 
                               
Expenses:
                               
Natural gas
    808       735       3,521       2,989  
Operation and maintenance
    444       448       1,268       1,333  
Depreciation and amortization
    243       253       660       677  
Taxes other than income taxes
    86       88       291       282  
 
                       
Total
    1,581       1,524       5,740       5,281  
 
                       
Operating Income
    327       357       947       1,024  
 
                       
 
                               
Other Income (Expense):
                               
Gain (loss) on marketable securities
    19       (80 )     35       (30 )
Gain (loss) on indexed debt securities
    (5 )     88             65  
Interest and other finance charges
    (121 )     (114 )     (364 )     (341 )
Interest on transition and system restoration bonds
    (34 )     (31 )     (106 )     (96 )
Equity in earnings of unconsolidated affiliates
    10       8       22       22  
Return on true-up balance
          352             352  
Other — net
    3       10       7       19  
 
                       
Total
    (128 )     233       (406 )     (9 )
 
                       
 
                               
Income Before Income Taxes and Extraordinary Item
    199       590       541       1,015  
 
                               
Income Tax Expense
    76       204       223       362  
 
                       
 
                               
Income Before Extraordinary Item
    123       386       318       653  
 
                               
Extraordinary Item, net of tax
          587             587  
 
                       
 
                               
Net Income
  $ 123     $ 973     $ 318     $ 1,240  
 
                       
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)
                                 
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2010     2011     2010     2011  
                                 
Basic Earnings Per Common Share:
                               
Income Before Extraordinary Item
  $ 0.29     $ 0.90     $ 0.79     $ 1.53  
Extraordinary item, net of tax
          1.38             1.38  
 
                       
Net Income
  $ 0.29     $ 2.28     $ 0.79     $ 2.91  
 
                       
                                 
Diluted Earnings Per Common Share:
                               
Income Before Extraordinary Item
  $ 0.29     $ 0.90     $ 0.78     $ 1.52  
Extraordinary item, net of tax
          1.37             1.37  
 
                       
Net Income
  $ 0.29     $ 2.27     $ 0.78     $ 2.89  
 
                       
 
                               
Dividends Declared per Common Share
  $ 0.1950     $ 0.1975     $ 0.5850     $ 0.5925  
 
                               
Weighted Average Common Shares Outstanding (000):
                               
- Basic
    422,178       425,885       404,957       425,517  
- Diluted
    424,968       428,842       407,728       428,452  
 
                               
Operating Income (Loss) by Segment
                               
 
                               
Electric Transmission & Distribution:
                               
Electric Transmission and Distribution Operations
  $ 178     $ 213     $ 371     $ 434  
Transition and System Restoration Bond Companies
    34       31       106       96  
 
                       
Total Electric Transmission & Distribution
    212       244       477       530  
Natural Gas Distribution
    (4 )     (2 )     145       153  
Competitive Natural Gas Sales and Services
    7       (10 )     16       3  
Interstate Pipelines
    68       60       207       196  
Field Services
    40       61       94       136  
Other Operations
    4       4       8       6  
 
                       
Total
  $ 327     $ 357     $ 947     $ 1,024  
 
                       
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  
    Three Months Ended             Nine Months Ended        
    September 30,     % Diff     September 30,     % Diff  
    2010     2011     Fav/(Unfav)     2010     2011     Fav/(Unfav)  
Results of Operations:
                                               
Revenues:
                                               
Electric transmission and distribution utility
  $ 520     $ 565       9 %   $ 1,355     $ 1,454       7 %
Transition and system restoration bond companies
    135       142       5 %     344       348       1 %
 
                                       
Total
    655       707       8 %     1,699       1,802       6 %
 
                                       
Expenses:
                                               
Operation and maintenance
    215       228       (6 %)     609       655       (8 %)
Depreciation and amortization
    75       70       7 %     219       207       5 %
Taxes other than income taxes
    52       54       (4 %)     156       158       (1 %)
Transition and system restoration bond companies
    101       111       (10 %)     238       252       (6 %)
 
                                       
Total
    443       463       (5 %)     1,222       1,272       (4 %)
 
                                       
Operating Income
  $ 212     $ 244       15 %   $ 477     $ 530       11 %
 
                                       
Operating Income:
                                               
Electric transmission and distribution operations
  $ 178     $ 213       20 %   $ 371     $ 434       17 %
Transition and system restoration bond companies
    34       31       (9 %)     106       96       (9 %)
 
                                       
Total Segment Operating Income
  $ 212     $ 244       15 %   $ 477     $ 530       11 %
 
                                       
Electric Transmission & Distribution
                                               
Operating Data:
                                               
Actual MWH Delivered
                                               
Residential
    9,262,154       10,681,975       15 %     21,499,427       23,337,859       9 %
Total
    23,342,324       24,956,915       7 %     59,952,416       62,802,372       5 %
Weather (average for service area):
                                               
Percentage of 10-year average:
                                               
Cooling degree days
    109 %     121 %     12 %     104 %     123 %     19 %
Heating degree days
    0 %     0 %     0 %     160 %     106 %     (54 %)
Number of metered customers — end of period:
                                               
Residential
    1,868,421       1,899,479       2 %     1,868,421       1,899,479       2 %
Total
    2,115,595       2,150,731       2 %     2,115,595       2,150,731       2 %
                                                 
    Natural Gas Distribution  
    Three Months Ended             Nine Months Ended        
    September 30,     % Diff     September 30,     % Diff  
    2010     2011     Fav/(Unfav)     2010     2011     Fav/(Unfav)  
Results of Operations:
                                               
Revenues
  $ 398     $ 384       (4 %)   $ 2,400     $ 2,048       (15 %)
 
                                       
Expenses:
                                               
Natural gas
    180       167       7 %     1,563       1,203       23 %
Operation and maintenance
    160       156       3 %     471       481       (2 %)
Depreciation and amortization
    40       41       (3 %)     124       124        
Taxes other than income taxes
    22       22             97       87       10 %
 
                                       
Total
    402       386       4 %     2,255       1,895       16 %
 
                                       
Operating Income (Loss)
  $ (4 )   $ (2 )     50 %   $ 145     $ 153       6 %
 
                                       
 
                                               
Natural Gas Distribution Operating Data:
                                               
Throughput data in BCF
                                               
Residential
    13       12       (8 %)     125       122       (2 %)
Commercial and Industrial
    46       48       4 %     182       187       3 %
 
                                       
Total Throughput
    59       60       2 %     307       309       1 %
 
                                       
 
                                               
Weather (average for service area)
                                               
Percentage of 10-year average:
                                               
Heating degree days
    97 %     115 %     18 %     110 %     107 %     (3 %)
 
                                               
Number of customers — end of period:
                                               
Residential
    2,969,452       2,990,934       1 %     2,969,452       2,990,934       1 %
Commercial and Industrial
    242,032       241,838             242,032       241,838        
 
                                       
Total
    3,211,484       3,232,772       1 %     3,211,484       3,232,772       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
    Three Months Ended             Nine Months Ended        
    September 30,     % Diff     September 30,     % Diff  
    2010     2011     Fav/(Unfav)     2010     2011     Fav/(Unfav)
Results of Operations:
                                               
Revenues
  $ 647     $ 584       (10 %)   $ 2,059     $ 1,876       (9 %)
 
                                       
Expenses:
                                               
Natural gas
    629       582       7 %     2,009       1,838       9 %
Operation and maintenance
    10       10             29       31       (7 %)
Depreciation and amortization
    1       1             3       3        
Taxes other than income taxes
          1       (100 %)     2       1       50 %
 
                                       
Total
    640       594       7 %     2,043       1,873       8 %
 
                                       
Operating Income (Loss)
  $ 7     $ (10 )     (243 %)   $ 16     $ 3       (81 %)
 
                                       
Competitive Natural Gas Sales and Services Operating Data:
                                               
Throughput data in BCF
    135       126       (7 %)     404       407       1 %
 
                                       
Number of customers — end of period
    11,883       12,650       6 %     11,883       12,650       6 %
 
                                       
                                                 
    Interstate Pipelines
    Three Months Ended             Nine Months Ended        
    September 30,     % Diff     September 30,     % Diff  
    2010     2011     Fav/(Unfav)     2010     2011     Fav/(Unfav)
Results of Operations:
                                               
Revenues
  $ 170     $ 135       (21 %)   $ 456     $ 424       (7 %)
 
                                       
Expenses:
                                               
Natural gas
    38       15       61 %     72       54       25 %
Operation and maintenance
    42       39       7 %     112       109       3 %
Depreciation and amortization
    13       13             39       40       (3 %)
Taxes other than income taxes
    9       8       11 %     26       25       4 %
 
                                       
Total
    102       75       26 %     249       228       8 %
 
                                       
Operating Income
  $ 68     $ 60       (12 %)   $ 207     $ 196       (5 %)
 
                                       
Equity in earnings of unconsolidated affiliates
    8     $ 6       (25 %)     15     $ 15        
 
                                       
Pipelines Operating Data:
                                               
Throughput data in BCF
                                               
Transportation
    422       356       (16 %)     1,260       1,208       (4 %)
 
                                       
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  
    Three Months Ended             Nine Months Ended        
    September 30,     % Diff     September 30,     % Diff  
    2010     2011     Fav/(Unfav)     2010     2011     Fav/(Unfav)  
Results of Operations:
                                               
Revenues
  $ 94     $ 117       24 %   $ 242     $ 305       26 %
 
                                       
Expenses:
                                               
Natural gas
    19       19             53       52       2 %
Operation and maintenance
    29       25       14 %     75       83       (11 %)
Depreciation and amortization
    6       9       (50 %)     17       28       (65 %)
Taxes other than income taxes
          3       (100 %)     3       6       (100 %)
 
                                       
Total
    54       56       (4 %)     148       169       (14 %)
 
                                       
Operating Income
  $ 40     $ 61       53 %   $ 94     $ 136       45 %
 
                                       
Equity in earnings of unconsolidated affiliates
    3     $ 2       (33 %)     8     $ 7       (13 %)
 
                                       
Field Services Operating Data:
                                               
Throughput data in BCF
                                               
Gathering
    180       206       14 %     464       586       26 %
 
                                       
                                                 
    Other Operations  
    Three Months Ended             Nine Months Ended        
    September 30,     % Diff     September 30,     % Diff  
    2010     2011     Fav/(Unfav)     2010     2011     Fav/(Unfav)  
Results of Operations:
                                               
Revenues
  $ 3     $ 3           $ 9     $ 9        
Expenses
    (1 )     (1 )           1       3       (200 %)
 
                                       
Operating Income
  $ 4     $ 4           $ 8     $ 6       (25 %)
 
                                       
Capital Expenditures by Segment
(Millions of Dollars)
(Unaudited)
                                 
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2010     2011     2010     2011  
Capital Expenditures by Segment
                               
Electric Transmission & Distribution
    121     $ 135       317     $ 365  
Natural Gas Distribution
    54       89       128       215  
Competitive Natural Gas Sales and Services
    1       1       2       4  
Interstate Pipelines
    31       25       71       64  
Field Services
    131       64       472       163  
Other Operations
    8       11       15       28  
 
                       
Total
  $ 346     $ 325     $ 1,005     $ 839  
 
                       
(Millions of Dollars)
(Unaudited)
                                 
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2010     2011     2010     2011  
Interest Expense Detail
                               
Amortization of Deferred Financing Cost
  $ 6     $ 10     $ 18     $ 23  
Capitalization of Interest Cost
    (2 )     (2 )     (5 )     (5 )
Transition and System Restoration Bond Interest Expense
    34       31       106       96  
Other Interest Expense
    117       106       351       323  
 
                       
Total Interest Expense
  $ 155     $ 145     $ 470     $ 437  
 
                       
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,     September 30,  
    2010     2011  
ASSETS
               
Current Assets:
               
Cash and cash equivalents
  $ 199     $ 103  
Other current assets
    2,383       1,879  
 
           
Total current assets
    2,582       1,982  
 
           
 
               
Property, Plant and Equipment, net
    11,732       12,158  
 
           
 
               
Other Assets:
               
Goodwill
    1,696       1,696  
Regulatory assets
    3,446       4,475  
Other non-current assets
    655       640  
 
           
Total other assets
    5,797       6,811  
 
           
Total Assets
  $ 20,111     $ 20,951  
 
           
 
               
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
 
               
Current Liabilities:
               
Short-term borrowings
  $ 53     $ 84  
Current portion of transition and system restoration bonds long-term debt
    283       307  
Current portion of indexed debt
    126       130  
Current portion of other long-term debt
    19       46  
Other current liabilities
    2,139       1,752  
 
           
Total current liabilities
    2,620       2,319  
 
           
 
               
Other Liabilities:
               
Accumulated deferred income taxes, net
    2,934       3,814  
Regulatory liabilities
    989       1,033  
Other non-current liabilities
    1,369       1,081  
 
           
Total other liabilities
    5,292       5,928  
 
           
 
               
Long-term Debt:
               
Transition and system restoration bonds
    2,522       2,215  
Other
    6,479       6,282  
 
           
Total long-term debt
    9,001       8,497  
 
           
 
               
Shareholders’ Equity
    3,198       4,207  
 
           
Total Liabilities and Shareholders’ Equity
  $ 20,111     $ 20,951  
 
           
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)
                 
    Nine Months Ended September 30,  
    2010     2011  
Cash Flows from Operating Activities:
               
Net income
  $ 318     $ 1,240  
Adjustments to reconcile net income to net cash provided by operating activities:
               
Depreciation and amortization
    681       699  
Deferred income taxes
    112       404  
Extraordinary item, net of tax
          (587 )
Return on true-up balance
          (352 )
Write-down of natural gas inventory
    6       7  
Changes in net regulatory assets
    23       22  
Changes in other assets and liabilities
    (170 )     1  
Other, net
    13       15  
 
           
Net Cash Provided by Operating Activities
    983       1,449  
 
               
Net Cash Used in Investing Activities
    (1,014 )     (848 )
 
               
Net Cash Used in Financing Activities
    (610 )     (697 )
 
           
 
               
Net Decrease in Cash and Cash Equivalents
    (641 )     (96 )
 
               
Cash and Cash Equivalents at Beginning of Period
    740       199  
 
               
 
           
Cash and Cash Equivalents at End of Period
  $ 99     $ 103