Exhibit 99.1
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| | 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
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| | 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
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| | 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
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|
| | 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
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| | 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 | |
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| (1) | | Competitive natural gas sales and services |
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| (2) | | Time Warner Inc., Time Warner Cable Inc. and AOL Inc. |
###
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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.
