Exhibit 99.1
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Media: Leticia Lowe Phone 713.207.7702 Investors: Marianne Paulsen Phone 713.207.6500 |
For Immediate Release | Page 1 of 4 |
CENTERPOINT ENERGY REPORTS THIRD QUARTER 2008 EARNINGS
Results in natural gas gathering and commercial sales businesses produce strong quarter
Results in natural gas gathering and commercial sales businesses produce strong quarter
Houston, TX — November 5, 2008- CenterPoint Energy, Inc. (NYSE: CNP) today reported net income of $136 million, or $0.39 per diluted share, for the third quarter of 2008 compared to $91 million, or $0.27 per diluted share, for the same period of 2007.
“We continue to see the benefits of our balanced electric and natural gas portfolio. Strong results in our field services and competitive natural gas businesses helped offset the loss of revenue from Hurricane Ike,” said David M. McClanahan, president and chief executive officer of CenterPoint Energy. “With over 90 percent of our customers without power following the storm, the challenges brought on by Hurricane Ike were significant. I’m extremely proud of the extraordinary efforts of our employees and the thousands of workers from 35 other states and Canada who worked to repair our system and restore service to our customers.”
For the nine months ended September 30, 2008, net income was $360 million, or $1.05 per diluted share, compared to $291 million, or $0.85 per diluted share, for the same period of 2007.
OPERATING INCOME BY SEGMENT
Electric Transmission & Distribution
The electric transmission & distribution segment reported operating income of $202 million for the third quarter of 2008, consisting of $169 million from the regulated electric transmission & distribution utility operations (TDU) and $33 million related to transition bonds. Operating income for the third quarter of 2007 was $196 million, consisting of $155 million from the TDU, $30 million related to transition bonds, and $11 million from the competition transition charge (CTC). In February 2008, the company monetized the remaining allowed true-up balance resulting in the discontinuance of the CTC.
When Hurricane Ike’s 110 mile-per-hour winds struck our service territory in September, more than 2 million customers lost power, but the TDU was able to restore power to all customers capable of receiving it within 18 days. As a result of this timely restoration effort, the estimated loss of third quarter revenue to the TDU was limited to $17 million. The loss of revenue from Hurricane Ike was more than offset by strong customer growth of over 42,000 metered customers since September 2007, increased usage, and reduced costs associated with normal operating and maintenance activities delayed because of the storm. In addition, taxes other than income taxes declined due to the Texas margin tax being classified as income tax beginning in 2008 and a refund of prior-year state franchise taxes.
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For Immediate Release | Page 2 of 4 |
The cost to repair the system and restore service is estimated to be in the range of $650 to $750 million. These costs are being deferred for future recovery through the regulatory process and therefore do not affect third quarter earnings.
Operating income for the nine months ended September 30, 2008, was $457 million, consisting of $352 million from the TDU, $100 million related to transition bonds, and $5 million from the CTC. Operating income for the same period of 2007 was also $457 million, consisting of $335 million from the TDU, $90 million related to transition bonds, and $32 million from the CTC.
Natural Gas Distribution
The natural gas distribution segment reported an operating loss of $6 million for the third quarter of 2008 compared to a loss of $8 million for the same period of 2007. Operating income benefited from new rates implemented in late 2007 and continued customer growth of nearly 26,000 metered customers since September 2007. Due to seasonal impacts, the third quarter is typically the weakest quarter for this segment.
Operating income for the nine months ended September 30, 2008, was $119 million compared to $129 million for the same period of 2007.
Interstate Pipelines
The interstate pipelines segment reported operating income of $55 million for the third quarter of 2008 compared to $70 million for the same period of 2007. The third quarter of 2008 included a $7 million write-down associated with pipeline assets removed from service, while the third quarter of 2007 included tax refunds of $4 million related to settlements of certain state tax issues and gains of $5 million associated with the sale of the pipeline services business. Excluding these items, higher income from the Carthage to Perryville pipeline and other transportation services was offset by reduced ancillary services and higher operation and maintenance expenses.
Operating income for the nine months ended September 30, 2008, was $227 million compared to $166 million for the same period of 2007.
Field Services
The field services segment reported operating income of $44 million for the third quarter of 2008 compared to $26 million for the same period of 2007. Operating income increased primarily from higher throughput, increased ancillary services, and a gain of $7 million associated with system imbalances.
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For Immediate Release | Page 3 of 4 |
In addition to operating income, this business had equity income of $4 million in the third quarter of 2008 compared to $2 million in the third quarter of 2007 from its 50 percent interest in a jointly-owned gas processing plant. These amounts are included in Other — net under the Other Income (Expense) caption.
Operating income for the nine months ended September 30, 2008, was $121 million compared to $75 million for the same period of 2007. Equity income from the jointly-owned gas processing plant was $12 million for the nine months ended September 30, 2008, compared to $6 million for the same period of 2007.
Competitive Natural Gas Sales and Services
The competitive natural gas sales and services segment reported operating income of $35 million for the third quarter of 2008 compared to $4 million for the same period of 2007. Approximately $7 million of the increase was due to favorable locational and seasonal price differentials. The third quarter of 2008 included gains of $46 million resulting from mark-to-market accounting for derivatives used to lock in economic margins of certain forward natural gas sales compared to mark-to-market gains of $2 million for the same period of 2007. The third quarter of 2008 also included a $24 million write-down of natural gas inventory to the lower of average cost or market, compared to a $5 million inventory write-down for the same period of 2007.
Operating income for the nine months ended September 30, 2008, was $36 million compared to $56 million for the same period of 2007. The nine months ended September 30, 2008, included gains of $14 million resulting from mark-to-market accounting compared to charges of $12 million for the same period of 2007. Additionally, the nine months ended September 30, 2008, included $24 million in inventory write-downs compared to $11 million in inventory write-downs for the same period of 2007.
DIVIDEND DECLARATION
On October 30, 2008, CenterPoint Energy’s board of directors declared a regular quarterly cash dividend of $0.1825 per share of common stock payable on December 10, 2008, to shareholders of record as of the close of business on November 14, 2008.
2008 REVISED GUIDANCE
CenterPoint Energy expects diluted earnings per share for 2008 to be in the range of $1.25 to $1.35. Previously-provided guidance was for earnings to be in the upper half of $1.15 to $1.25 per diluted share. This guidance takes into consideration performance to date as well as various economic and operational assumptions related to the business segments in which the company operates. The company has made certain assumptions regarding the impact to earnings of various regulatory proceedings, including recovery of costs associated with Hurricane Ike, but cannot
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For Immediate Release | Page 4 of 4 |
predict the ultimate outcome of any of those proceedings. In providing this guidance, the company has not projected the impact of any changes in accounting standards, any impact from acquisitions or divestitures, the timing effects of mark-to-market or inventory accounting in our competitive natural gas sales and services business, or the outcome of the TDU’s true-up appeal.
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, 2008. A copy of that report is available on the company’s Web site,www.CenterPointEnergy.com, under the Investors section. Other filings the company makes at 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 5, 2008, 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 atwww.CenterPointEnergy.com. A replay of the call can be accessed approximately two hours after the completion of the call and will be archived on the Web site 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 over $19 billion. With about 8,600 employees, CenterPoint Energy and its predecessor companies have been in business for more than 130 years. For more information, visit the Web site atwww.CenterPointEnergy.com.
This news release includes forward-looking statements. Actual events and results may differ materially from those projected. The statements in this news release regarding future financial performance and results of operations and other statements that are not historical facts are forward-looking statements. Factors that could affect actual results include the timing and outcome of appeals from the true-up proceedings, the timing and impact of future regulatory, legislative, and IRS decisions, effects of competition, weather variations, changes in CenterPoint Energy’s or its subsidiaries’ business plans, financial market conditions, the timing and extent of changes in commodity prices, particularly natural gas, the impact of unplanned facility outages, and other factors discussed in CenterPoint Energy’s and its subsidiaries’ Form 10-Ks for the period ended December 31, 2007, CenterPoint Energy’s and its subsidiaries’ Form 10-Qs for the periods ended March 31, 2008, and June 30, 2008, CenterPoint Energy’s Form 10-Q for the period ended September 30, 2008, and other filings with the SEC.
###
CenterPoint Energy, Inc. and Subsidiaries
Statements of Consolidated Income
(Millions of Dollars)
(Unaudited)
Statements of Consolidated Income
(Millions of Dollars)
(Unaudited)
Quarter Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2007 | 2008 | 2007 | 2008 | |||||||||||||
Revenues: | ||||||||||||||||
Electric Transmission & Distribution | $ | 528 | $ | 552 | $ | 1,399 | $ | 1,471 | ||||||||
Natural Gas Distribution | 458 | 550 | 2,601 | 2,976 | ||||||||||||
Competitive Natural Gas Sales and Services | 770 | 1,269 | 2,715 | 3,632 | ||||||||||||
Interstate Pipelines | 137 | 143 | 348 | 468 | ||||||||||||
Field Services | 44 | 71 | 125 | 191 | ||||||||||||
Other Operations | 3 | 3 | 8 | 8 | ||||||||||||
Eliminations | (58 | ) | (73 | ) | (175 | ) | (198 | ) | ||||||||
Total | 1,882 | 2,515 | 7,021 | 8,548 | ||||||||||||
Expenses: | ||||||||||||||||
Natural gas | 991 | 1,532 | 4,349 | 5,675 | ||||||||||||
Operation and maintenance | 349 | 371 | 1,031 | 1,078 | ||||||||||||
Depreciation and amortization | 170 | 194 | 475 | 540 | ||||||||||||
Taxes other than income taxes | 85 | 81 | 284 | 285 | ||||||||||||
Total | 1,595 | 2,178 | 6,139 | 7,578 | ||||||||||||
Operating Income | 287 | 337 | 882 | 970 | ||||||||||||
Other Income (Expense) : | ||||||||||||||||
Loss on Time Warner investment | (58 | ) | (36 | ) | (74 | ) | (73 | ) | ||||||||
Gain on indexed debt securities | 56 | 33 | 70 | 66 | ||||||||||||
Interest and other finance charges | (126 | ) | (116 | ) | (368 | ) | (344 | ) | ||||||||
Interest on transition bonds | (30 | ) | (34 | ) | (93 | ) | (102 | ) | ||||||||
Distribution from AOL Time Warner litigation settlement | 32 | — | 32 | — | ||||||||||||
Additional distribution to ZENS holders | (27 | ) | — | (27 | ) | — | ||||||||||
Other — net | 11 | 29 | 23 | 56 | ||||||||||||
Total | (142 | ) | (124 | ) | (437 | ) | (397 | ) | ||||||||
Income Before Income Taxes | 145 | 213 | 445 | 573 | ||||||||||||
Income Tax Expense | (54 | ) | (77 | ) | (154 | ) | (213 | ) | ||||||||
Net Income | $ | 91 | $ | 136 | $ | 291 | $ | 360 | ||||||||
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.
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)
Selected Data From Statements of Consolidated Income
(Millions of Dollars, Except Share and Per Share Amounts)
(Unaudited)
Quarter Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2007 | 2008 | 2007 | 2008 | |||||||||||||
Basic Earnings Per Common Share: | ||||||||||||||||
Net Income | $ | 0.29 | $ | 0.40 | $ | 0.91 | $ | 1.08 | ||||||||
Diluted Earnings Per Common Share: | ||||||||||||||||
Net Income | $ | 0.27 | $ | 0.39 | $ | 0.85 | $ | 1.05 | ||||||||
Dividends Declared per Common Share | $ | 0.17 | $ | 0.1825 | $ | 0.51 | $ | 0.5475 | ||||||||
Weighted Average Common Shares Outstanding (000): | ||||||||||||||||
- Basic | 321,192 | 342,228 | 320,071 | 333,652 | ||||||||||||
- Diluted | 340,974 | 344,584 | 342,222 | 342,187 | ||||||||||||
Operating Income (Loss) by Segment | ||||||||||||||||
Electric Transmission & Distribution: | ||||||||||||||||
Electric Transmission and Distribution Operations | $ | 155 | $ | 169 | $ | 335 | $ | 352 | ||||||||
Competition Transition Charge | 11 | — | 32 | 5 | ||||||||||||
Total Electric Transmission and Distribution Utility | 166 | 169 | 367 | 357 | ||||||||||||
Transition Bond Companies | 30 | 33 | 90 | 100 | ||||||||||||
Total Electric Transmission & Distribution | 196 | 202 | 457 | 457 | ||||||||||||
Natural Gas Distribution | (8 | ) | (6 | ) | 129 | 119 | ||||||||||
Competitive Natural Gas Sales and Services | 4 | 35 | 56 | 36 | ||||||||||||
Interstate Pipelines | 70 | 55 | 166 | 227 | ||||||||||||
Field Services | 26 | 44 | 75 | 121 | ||||||||||||
Other Operations | (1 | ) | 7 | (1 | ) | 10 | ||||||||||
Total | $ | 287 | $ | 337 | $ | 882 | $ | 970 | ||||||||
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.
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)
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
Electric Transmission & Distribution | ||||||||||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | % Diff | September 30, | % Diff | |||||||||||||||||||||
2007 | 2008 | Fav/(Unfav) | 2007 | 2008 | Fav/(Unfav) | |||||||||||||||||||
Results of Operations: | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Electric transmission and distribution utility | $ | 445 | $ | 455 | 2 | % | $ | 1,187 | $ | 1,220 | 3 | % | ||||||||||||
Transition bond companies | 83 | 97 | 17 | % | 212 | 251 | 18 | % | ||||||||||||||||
Total | 528 | 552 | 5 | % | 1,399 | 1,471 | 5 | % | ||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Operation and maintenance | 163 | 167 | (2 | %) | 467 | 502 | (7 | %) | ||||||||||||||||
Depreciation and amortization | 58 | 71 | (22 | %) | 182 | 208 | (14 | %) | ||||||||||||||||
Taxes other than income taxes | 58 | 48 | 17 | % | 171 | 153 | 11 | % | ||||||||||||||||
Transition bond companies | 53 | 64 | (21 | %) | 122 | 151 | (24 | %) | ||||||||||||||||
Total | 332 | 350 | (5 | %) | 942 | 1,014 | (8 | %) | ||||||||||||||||
Operating Income | $ | 196 | $ | 202 | 3 | % | $ | 457 | $ | 457 | — | |||||||||||||
Operating Income: | ||||||||||||||||||||||||
Electric transmission and distribution operations | $ | 155 | $ | 169 | 9 | % | $ | 335 | $ | 352 | 5 | % | ||||||||||||
Competition transition charge | 11 | — | — | 32 | 5 | (84 | %) | |||||||||||||||||
Transition bond companies | 30 | 33 | 10 | % | 90 | 100 | 11 | % | ||||||||||||||||
Total Segment Operating Income | $ | 196 | $ | 202 | 3 | % | $ | 457 | $ | 457 | — | |||||||||||||
Electric Transmission & Distribution Operating Data: | ||||||||||||||||||||||||
Actual MWH Delivered | ||||||||||||||||||||||||
Residential | 8,381,258 | 8,445,744 | 1 | % | 19,060,031 | 19,623,125 | 3 | % | ||||||||||||||||
Total | 22,725,500 | 21,594,051 | (5 | %) | 58,560,692 | 58,523,281 | — | |||||||||||||||||
Weather (average for service area): | ||||||||||||||||||||||||
Percentage of 10-year average: | ||||||||||||||||||||||||
Cooling degree days | 102 | % | 97 | % | (5 | %) | 99 | % | 104 | % | 5 | % | ||||||||||||
Heating degree days | 0 | % | 0 | % | 0 | % | 114 | % | 95 | % | (19 | %) | ||||||||||||
Average number of metered customers: | ||||||||||||||||||||||||
Residential | 1,782,281 | 1,822,351 | 2 | % | 1,767,431 | 1,812,821 | 3 | % | ||||||||||||||||
Total | 2,022,448 | 2,066,538 | 2 | % | 2,006,344 | 2,055,723 | 2 | % |
Natural Gas Distribution | ||||||||||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | % Diff | September 30, | % Diff | |||||||||||||||||||||
2007 | 2008 | Fav/(Unfav) | 2007 | 2008 | Fav/(Unfav) | |||||||||||||||||||
Results of Operations: | ||||||||||||||||||||||||
Revenues | $ | 458 | $ | 550 | 20 | % | $ | 2,601 | $ | 2,976 | 14 | % | ||||||||||||
Expenses: | ||||||||||||||||||||||||
Natural gas | 267 | 351 | (31 | %) | 1,845 | 2,196 | (19 | %) | ||||||||||||||||
Operation and maintenance | 139 | 139 | — | 421 | 436 | (4 | %) | |||||||||||||||||
Depreciation and amortization | 38 | 40 | (5 | %) | 114 | 118 | (4 | %) | ||||||||||||||||
Taxes other than income taxes | 22 | 26 | (18 | %) | 92 | 107 | (16 | %) | ||||||||||||||||
Total | 466 | 556 | (19 | %) | 2,472 | 2,857 | (16 | %) | ||||||||||||||||
Operating Income (Loss) | $ | (8 | ) | $ | (6 | ) | 25 | % | $ | 129 | $ | 119 | (8 | %) | ||||||||||
Natural Gas Distribution Operating Data: | ||||||||||||||||||||||||
Throughput data in BCF | ||||||||||||||||||||||||
Residential | 12 | 13 | 8 | % | 118 | 117 | (1 | %) | ||||||||||||||||
Commercial and Industrial | 42 | 41 | (2 | %) | 168 | 171 | 2 | % | ||||||||||||||||
Total Throughput | 54 | 54 | — | 286 | 288 | 1 | % | |||||||||||||||||
Weather (average for service area) | ||||||||||||||||||||||||
Percentage of 10-year average: | ||||||||||||||||||||||||
Heating degree days | 75 | % | 57 | % | (18 | %) | 98 | % | 106 | % | 8 | % | ||||||||||||
Average number of customers: | ||||||||||||||||||||||||
Residential | 2,910,041 | 2,937,618 | 1 | % | 2,927,122 | 2,956,500 | 1 | % | ||||||||||||||||
Commercial and Industrial | 246,021 | 245,514 | — | 246,382 | 248,759 | 1 | % | |||||||||||||||||
Total | 3,156,062 | 3,183,132 | 1 | % | 3,173,504 | 3,205,259 | 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.
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)
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
Competitive Natural Gas Sales and Services | ||||||||||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | % Diff | September 30, | % Diff | |||||||||||||||||||||
2007 | 2008 | Fav/(Unfav) | 2007 | 2008 | Fav/(Unfav) | |||||||||||||||||||
Results of Operations: | ||||||||||||||||||||||||
Revenues | $ | 770 | $ | 1,269 | 65 | % | $ | 2,715 | $ | 3,632 | 34 | % | ||||||||||||
Expenses: | ||||||||||||||||||||||||
Natural gas | 756 | 1,225 | (62 | %) | 2,631 | 3,567 | (36 | %) | ||||||||||||||||
Operation and maintenance | 7 | 8 | (14 | %) | 23 | 26 | (13 | %) | ||||||||||||||||
Depreciation and amortization | 3 | 1 | 67 | % | 4 | 2 | 50 | % | ||||||||||||||||
Taxes other than income taxes | — | — | — | 1 | 1 | — | ||||||||||||||||||
Total | 766 | 1,234 | (61 | %) | 2,659 | 3,596 | (35 | %) | ||||||||||||||||
Operating Income | $ | 4 | $ | 35 | 775 | % | $ | 56 | $ | 36 | (36 | %) | ||||||||||||
Competitive Natural Gas Sales and Services Operating Data: | ||||||||||||||||||||||||
Throughput data in BCF | 119 | 125 | 5 | % | 393 | 392 | — | |||||||||||||||||
Average number of customers | 6,976 | 9,245 | 33 | % | 7,014 | 8,974 | 28 | % | ||||||||||||||||
Interstate Pipelines | ||||||||||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | % Diff | September 30, | % Diff | |||||||||||||||||||||
2007 | 2008 | Fav/(Unfav) | 2007 | 2008 | Fav/(Unfav) | |||||||||||||||||||
Results of Operations: | ||||||||||||||||||||||||
Revenues | $ | 137 | $ | 143 | 4 | % | $ | 348 | $ | 468 | 34 | % | ||||||||||||
Expenses: | ||||||||||||||||||||||||
Natural gas | 27 | 24 | 11 | % | 55 | 97 | (76 | %) | ||||||||||||||||
Operation and maintenance | 29 | 47 | (62 | %) | 85 | 93 | (9 | %) | ||||||||||||||||
Depreciation and amortization | 11 | 11 | — | 32 | 34 | (6 | %) | |||||||||||||||||
Taxes other than income taxes | — | 6 | — | 10 | 17 | (70 | %) | |||||||||||||||||
Total | 67 | 88 | (31 | %) | 182 | 241 | (32 | %) | ||||||||||||||||
Operating Income | $ | 70 | $ | 55 | (21 | %) | $ | 166 | $ | 227 | 37 | % | ||||||||||||
Pipelines Operating Data: | ||||||||||||||||||||||||
Throughput data in BCF | ||||||||||||||||||||||||
Transportation | 312 | 360 | 15 | % | 880 | 1,145 | 30 | % | ||||||||||||||||
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.
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)
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
Field Services | ||||||||||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | % Diff | September 30, | % Diff | |||||||||||||||||||||
2007 | 2008 | Fav/(Unfav) | 2007 | 2008 | Fav/(Unfav) | |||||||||||||||||||
Results of Operations: | ||||||||||||||||||||||||
Revenues | $ | 44 | $ | 71 | 61 | % | $ | 125 | $ | 191 | 53 | % | ||||||||||||
Expenses: | ||||||||||||||||||||||||
Natural gas | (2 | ) | 5 | (350 | %) | (9 | ) | 11 | (222 | %) | ||||||||||||||
Operation and maintenance | 17 | 19 | (12 | %) | 49 | 48 | 2 | % | ||||||||||||||||
Depreciation and amortization | 2 | 3 | (50 | %) | 8 | 9 | (13 | %) | ||||||||||||||||
Taxes other than income taxes | 1 | — | — | 2 | 2 | — | ||||||||||||||||||
Total | 18 | 27 | (50 | %) | 50 | 70 | (40 | %) | ||||||||||||||||
Operating Income | $ | 26 | $ | 44 | 69 | % | $ | 75 | $ | 121 | 61 | % | ||||||||||||
Field Services Operating Data: | ||||||||||||||||||||||||
Throughput data in BCF | ||||||||||||||||||||||||
Gathering | 104 | 109 | 5 | % | 297 | 311 | 5 | % | ||||||||||||||||
Other Operations | ||||||||||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | % Diff | September 30, | % Diff | |||||||||||||||||||||
2007 | 2008 | Fav/(Unfav) | 2007 | 2008 | Fav/(Unfav) | |||||||||||||||||||
Results of Operations: | ||||||||||||||||||||||||
Revenues | $ | 3 | $ | 3 | — | $ | 8 | $ | 8 | — | ||||||||||||||
Expenses | 4 | (4 | ) | 200 | % | 9 | (2 | ) | 122 | % | ||||||||||||||
Operating Income (Loss) | $ | (1 | ) | $ | 7 | 800 | % | $ | (1 | ) | $ | 10 | 1,100 | % | ||||||||||
Capital Expenditures by Segment | ||||||||||||||||
(Millions of Dollars) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2007 | 2008 | 2007 | 2008 | |||||||||||||
Capital Expenditures by Segment | ||||||||||||||||
Electric Transmission & Distribution | $ | 83 | $ | 80 | $ | 304 | $ | 256 | ||||||||
Hurricane Ike | — | 141 | — | 141 | ||||||||||||
Total Electric Transmission & Distribution | 83 | 221 | 304 | 397 | ||||||||||||
Natural Gas Distribution | 58 | 57 | 135 | 151 | ||||||||||||
Competitive Natural Gas Sales and Services | 1 | 1 | 5 | 3 | ||||||||||||
Interstate Pipelines | 39 | 60 | 253 | 130 | ||||||||||||
Field Services | 15 | 31 | 55 | 77 | ||||||||||||
Other Operations | 5 | 5 | 22 | 18 | ||||||||||||
Total | $ | 201 | $ | 375 | $ | 774 | $ | 776 | ||||||||
Interest Expense Detail | ||||||||||||||||
(Millions of Dollars) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2007 | 2008 | 2007 | 2008 | |||||||||||||
Interest Expense Detail | ||||||||||||||||
Amortization of Deferred Financing Cost | $ | 11 | $ | 6 | $ | 42 | $ | 18 | ||||||||
Capitalization of Interest Cost | (3 | ) | (3 | ) | (18 | ) | (10 | ) | ||||||||
Transition Bond Interest Expense | 30 | 34 | 93 | 102 | ||||||||||||
Other Interest Expense | 118 | 113 | 344 | 336 | ||||||||||||
Total Interest Expense | $ | 156 | $ | 150 | $ | 461 | $ | 446 | ||||||||
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.
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)
Condensed Consolidated Balance Sheets
(Millions of Dollars)
(Unaudited)
December 31, | September 30, | |||||||
2007 | 2008 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 129 | $ | 84 | ||||
Other current assets | 2,659 | 2,753 | ||||||
Total current assets | 2,788 | 2,837 | ||||||
Property, Plant and Equipment, net | 9,740 | 10,149 | ||||||
Other Assets: | ||||||||
Goodwill | 1,696 | 1,696 | ||||||
Regulatory assets | 2,993 | 3,219 | ||||||
Other non-current assets | 655 | 1,131 | ||||||
Total other assets | 5,344 | 6,046 | ||||||
Total Assets | $ | 17,872 | $ | 19,032 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Short-term borrowings | $ | 232 | $ | 150 | ||||
Current portion of transition bond long-term debt | 159 | 208 | ||||||
Current portion of other long-term debt | 1,156 | 123 | ||||||
Other current liabilities | 2,244 | 2,391 | ||||||
Total current liabilities | 3,791 | 2,872 | ||||||
Other Liabilities: | ||||||||
Accumulated deferred income taxes, net and investment tax credit | 2,266 | 2,713 | ||||||
Regulatory liabilities | 828 | 808 | ||||||
Other non-current liabilities | 813 | 783 | ||||||
Total other liabilities | 3,907 | 4,304 | ||||||
Long-term Debt: | ||||||||
Transition bond | 2,101 | 2,381 | ||||||
Other | 6,263 | 7,416 | ||||||
Total long-term debt | 8,364 | 9,797 | ||||||
Shareholders’ Equity | 1,810 | 2,059 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 17,872 | $ | 19,032 | ||||
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.
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)
Condensed Statements of Consolidated Cash Flows
(Millions of Dollars)
(Unaudited)
Nine Months Ended September 30, | ||||||||
2007 | 2008 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income | $ | 291 | $ | 360 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 519 | 560 | ||||||
Deferred income taxes | 23 | 471 | ||||||
Changes in net regulatory assets | 57 | (48 | ) | |||||
Changes in other assets and liabilities | (410 | ) | (584 | ) | ||||
Other, net | 12 | (35 | ) | |||||
Net Cash Provided by Operating Activities | 492 | 724 | ||||||
Net Cash Used in Investing Activities | (933 | ) | (991 | ) | ||||
Net Cash Provided by Financing Activities | 368 | 222 | ||||||
Net Decrease in Cash and Cash Equivalents | (73 | ) | (45 | ) | ||||
Cash and Cash Equivalents at Beginning of Period | 127 | 129 | ||||||
Cash and Cash Equivalents at End of Period | $ | 54 | $ | 84 | ||||
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.