Exhibit 99.1
| | | |
| | For more information contact
Media:
Leticia Lowe
Phone 713.207.7702
Investors:
Marianne Paulsen
Phone 713.207.6500 |
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| | | |
| FOR IMMEDIATE RELEASE | | Page 1 of 4 |
CENTERPOINT ENERGY REPORTS FOURTH QUARTER AND
FULL YEAR 2008 EARNINGS
Houston, TX — February 25, 2009— CenterPoint Energy, Inc. (NYSE: CNP) today reported net income of $87 million, or $0.25 per diluted share, for the fourth quarter of 2008 compared to $108 million, or $0.32 per diluted share, for the same period of 2007.
Net income for the year 2008 was $447 million, or $1.30 per diluted share, compared to $399 million, or $1.17 per diluted share, for 2007.
“I am pleased with the overall financial results that we are reporting today,” said David M. McClanahan, president and chief executive officer of CenterPoint Energy. “Our interstate pipelines and field services businesses turned in record performances, and our electric and natural gas utilities reported solid results. Although we expect 2009 to be a more challenging year, we continue to benefit from the stability of our regulated utility operations and from the high levels of activity in a number of the producing areas served by our pipelines and field services businesses.”
OPERATING INCOME BY SEGMENT
Electric Transmission & Distribution
The electric transmission & distribution segment reported operating income of $88 million for the fourth quarter of 2008, consisting of $55 million from the regulated electric transmission & distribution utility operations (TDU) and $33 million related to transition bonds. Operating income for the fourth quarter of 2007 was $104 million, consisting of $65 million from the TDU, $29 million related to transition bonds, and $10 million from the competition transition charge (CTC). In February 2008, the company monetized the remaining true-up balance resulting in the discontinuance of the CTC. Operating income for the TDU declined primarily due to higher transmission costs billed to the company from other transmission providers.
Operating income for the year 2008 was $545 million, consisting of $407 million from the TDU, $133 million related to transition bonds, and $5 million from the CTC. Operating income for 2007 was $561 million, consisting of $400 million from the TDU, $119 million related to transition bonds, and $42 million from the CTC. Operating income for the TDU increased as a result of customer growth of nearly 31,000 customers since December 2007, increased usage, in part due to favorable weather, proceeds from a land sale, and a refund of prior years’ state franchise taxes. These positive impacts were partially offset by higher transmission costs and other operating expenses, and the impacts from Hurricane Ike. Operating income for 2007 included a $17 million favorable settlement related to the final fuel reconciliation of the formerly integrated electric utility. As a result of revisions to the Texas State Franchise Tax Law, the Texas margin tax, which was reported as operating expense prior to 2008, is now being reported as income tax and does not impact operating income.
-more-
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| FOR IMMEDIATE RELEASE | | Page 2 of 4 |
Natural Gas Distribution
The natural gas distribution segment reported operating income of $96 million for the fourth quarter of 2008 compared to $89 million for the same period of 2007. Operating income benefited from continued customer growth of nearly 25,000 since December 2007 and lower employee-related expenses.
Operating income for the year 2008 was $215 million compared to $218 million for 2007. Operating income for 2008 declined primarily due to reduced usage and higher expenses, partially offset by rate increases and customer growth.
Interstate Pipelines
The interstate pipelines segment reported operating income of $66 million for the fourth quarter of 2008 compared to $71 million for the same period of 2007. Higher income from the Carthage to Perryville pipeline and increased transportation services was offset by reduced ancillary services and higher operation and maintenance expenses. Operating income for the fourth quarter of 2007 included favorable settlements of certain state tax issues and a write-off of project development costs.
Operating income for the year 2008 was $293 million compared to $237 million for 2007. Higher income from the Carthage to Perryville pipeline and increased transportation and ancillary services was partially offset by higher operation and maintenance expenses. Operating income for 2008 included an $18 million gain from the sale of two storage development projects and a $7 million write-down associated with pipeline assets removed from service. Operating income for 2007 included $8 million from the favorable settlement of certain state tax issues.
In addition to operating income, this business had equity income of $36 million for 2008 and $6 million for 2007, including $33 million for 2008 and $6 million for 2007 of pre-operating allowance for funds used during construction from its 50 percent interest in the Southeast Supply Header, a new pipeline that went into service in September 2008.
Field Services
The field services segment reported operating income of $26 million for the fourth quarter of 2008 compared to $24 million for the same period of 2007. Operating income increased primarily from higher throughput and increased ancillary services, partially offset by lower commodity prices and higher operation and maintenance expenses.
In addition to operating income, this business had equity income of $3 million in each of the fourth quarters of 2008 and 2007 from its 50 percent interest in a gas processing plant.
-more-
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| FOR IMMEDIATE RELEASE | | Page 3 of 4 |
Operating income for the year 2008 was $147 million compared to $99 million for 2007. Operating income increased primarily from higher throughput, increased ancillary services and higher commodity prices, partially offset by higher operation and maintenance expenses. Operating income for 2008 also included $17 million associated with the sale of non-strategic assets and the settlement of a contractual dispute, and a gain of $7 million associated with system imbalances.
Equity income from the jointly-owned gas processing plant was $15 million for 2008 compared to $10 million for 2007.
Competitive Natural Gas Sales and Services
The competitive natural gas sales and services segment reported operating income of $26 million for the fourth quarter of 2008 compared to $19 million for the same period of 2007. Operating income increased due to more favorable locational and seasonal price differentials, which were partially offset by higher operating expenses. Operating income for the fourth quarter of 2008 included a $6 million write-down of natural gas inventory to the lower of average cost or market. Operating income for the fourth quarter of 2007 included gains of $2 million resulting from mark-to-market accounting for derivatives used to lock in economic margins of certain forward natural gas sales.
Operating income for the year 2008 was $62 million compared to $75 million for 2007. Operating income declined due to lower gains on sales of gas from inventory and higher operating expenses, partially offset by more favorable locational and seasonal price differentials. Operating income for 2008 included inventory write-downs of $30 million compared to inventory write-downs of $11 million for 2007. Operating income for 2008 included gains of $13 million resulting from mark-to-market accounting compared to mark-to-market charges of $10 million for 2007.
DIVIDEND DECLARATION
On January 22, 2009, CenterPoint Energy’s board of directors declared a regular quarterly cash dividend of $0.19 per share of common stock payable on March 10, 2009, to shareholders of record as of the close of business on February 16, 2009. This represents more than a four percent increase over the $0.1825 per common share quarterly dividends paid by the company in 2008.
OUTLOOK FOR 2009
CenterPoint Energy expects diluted earnings per share for 2009 to be in the range of $1.05 to $1.15. This guidance takes into consideration an estimated increase in non-cash pension expense of $0.16 per diluted share. Additionally, the guidance takes into consideration various economic and operational assumptions related to the business segments in which the company operates. The company has made certain assumptions regarding the timing and cost of certain financing activities and the impact to earnings of various regulatory proceedings, including
-more-
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Phone 713.207.6500 |
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| FOR IMMEDIATE RELEASE | | Page 4 of 4 |
recovery of costs associated with Hurricane Ike. The company cannot 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-K FOR CENTERPOINT ENERGY, INC.
Today, CenterPoint Energy, Inc. filed with the Securities and Exchange Commission (SEC) its Annual Report on Form 10-K for the fiscal year ended December 31, 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, February 25, 2009, 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 at www.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 8,800 employees, CenterPoint Energy and its predecessor companies have been in business for more than 130 years. For more information, visit the Web site at www.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 Form 10-K for the period ended December 31, 2008, and other filings with the SEC.
###
CenterPoint Energy, Inc. and Subsidiaries
Statements of Consolidated Income
(Millions of Dollars)
(Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Quarter Ended | | | Year Ended | |
| | | December 31, | | | December 31, | |
| | | 2007 | | | 2008 | | | 2007 | | | 2008 | |
| | | | | | | | | | | | | | | | | |
| Revenues: | | | | | | | | | | | | | | | | |
| Electric Transmission & Distribution | | $ | 438 | | | $ | 445 | | | $ | 1,837 | | | $ | 1,916 | |
| Natural Gas Distribution | | | 1,158 | | | | 1,250 | | | | 3,759 | | | | 4,226 | |
| Competitive Natural Gas Sales and Services | | | 864 | | | | 896 | | | | 3,579 | | | | 4,528 | |
| Interstate Pipelines | | | 152 | | | | 182 | | | | 500 | | | | 650 | |
| Field Services | | | 50 | | | | 61 | | | | 175 | | | | 252 | |
| Other Operations | | | 2 | | | | 3 | | | | 10 | | | | 11 | |
| Eliminations | | | (62 | ) | | | (63 | ) | | | (237 | ) | | | (261 | ) |
| | | | | | | | | | | | | |
| Total | | | 2,602 | | | | 2,774 | | | | 9,623 | | | | 11,322 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Expenses: | | | | | | | | | | | | | | | | |
| Natural gas | | | 1,646 | | | | 1,791 | | | | 5,995 | | | | 7,466 | |
| Operation and maintenance | | | 409 | | | | 424 | | | | 1,440 | | | | 1,502 | |
| Depreciation and amortization | | | 156 | | | | 168 | | | | 631 | | | | 708 | |
| Taxes other than income taxes | | | 88 | | | | 88 | | | | 372 | | | | 373 | |
| | | | | | | | | | | | | |
| Total | | | 2,299 | | | | 2,471 | | | | 8,438 | | | | 10,049 | |
| | | | | | | | | | | | | |
| Operating Income | | | 303 | | | | 303 | | | | 1,185 | | | | 1,273 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Other Income (Expense): | | | | | | | | | | | | | | | | |
| Loss on Time Warner investment | | | (40 | ) | | | (66 | ) | | | (114 | ) | | | (139 | ) |
| Gain on indexed debt securities | | | 41 | | | | 62 | | | | 111 | | | | 128 | |
| Interest and other finance charges | | | (135 | ) | | | (122 | ) | | | (503 | ) | | | (466 | ) |
| Interest on transition bonds | | | (30 | ) | | | (34 | ) | | | (123 | ) | | | (136 | ) |
| Distribution from AOL Time Warner litigation settlement | | | — | | | | — | | | | 32 | | | | — | |
| Additional distribution to ZENS holders | | | — | | | | — | | | | (27 | ) | | | — | |
| Equity in earnings of unconsolidated affiliates | | | 6 | | | | 5 | | | | 16 | | | | 51 | |
| Other — net | | | 4 | | | | 4 | | | | 17 | | | | 14 | |
| | | | | | | | | | | | | |
| Total | | | (154 | ) | | | (151 | ) | | | (591 | ) | | | (548 | ) |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Income Before Income Taxes | | | 149 | | | | 152 | | | | 594 | | | | 725 | |
| | | | | | | | | | | | | | | | | |
| Income Tax Expense | | | (41 | ) | | | (65 | ) | | | (195 | ) | | | (278 | ) |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Net Income | | $ | 108 | | | $ | 87 | | | $ | 399 | | | $ | 447 | |
| | | | | | | | | | | | | |
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report on Form 10-K 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 | | | Year Ended | |
| | | December 31, | | | December 31, | |
| | | 2007 | | | 2008 | | | 2007 | | | 2008 | |
| | | | | | | | | | | | | | | | | |
| Basic Earnings Per Common Share | | $ | 0.34 | | | $ | 0.25 | | | $ | 1.25 | | | $ | 1.33 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Diluted Earnings Per Common Share | | $ | 0.32 | | | $ | 0.25 | | | $ | 1.17 | | | $ | 1.30 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Dividends Declared per Common Share | | $ | 0.17 | | | $ | 0.1825 | | | $ | 0.68 | | | $ | 0.73 | |
| | | | | | | | | | | | | | | | | |
| Weighted Average Common Shares Outstanding (000): | | | | | | | | | | | | | | | | |
| - Basic | | | 321,695 | | | | 344,536 | | | | 320,480 | | | | 336,387 | |
| - Diluted | | | 342,841 | | | | 346,839 | | | | 342,507 | | | | 343,555 | |
| | | | | | | | | | | | | | | | | |
| Operating Income (Loss) by Segment | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Electric Transmission & Distribution: | | | | | | | | | | | | | | | | |
| Electric Transmission and Distribution Operations | | $ | 65 | | | $ | 55 | | | $ | 400 | | | $ | 407 | |
| Competition Transition Charge | | | 10 | | | | — | | | | 42 | | | | 5 | |
| | | | | | | | | | | | | |
| Total Electric Transmission and Distribution Utility | | | 75 | | | | 55 | | | | 442 | | | | 412 | |
| Transition Bond Companies | | | 29 | | | | 33 | | | | 119 | | | | 133 | |
| | | | | | | | | | | | | |
| Total Electric Transmission & Distribution | | | 104 | | | | 88 | | | | 561 | | | | 545 | |
| Natural Gas Distribution | | | 89 | | | | 96 | | | | 218 | | | | 215 | |
| Competitive Natural Gas Sales and Services | | | 19 | | | | 26 | | | | 75 | | | | 62 | |
| Interstate Pipelines | | | 71 | | | | 66 | | | | 237 | | | | 293 | |
| Field Services | | | 24 | | | | 26 | | | | 99 | | | | 147 | |
| Other Operations | | | (4 | ) | | | 1 | | | | (5 | ) | | | 11 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Total | | $ | 303 | | | $ | 303 | | | $ | 1,185 | | | $ | 1,273 | |
| | | | | | | | | | | | | |
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.
CenterPoint Energy, Inc. and Subsidiaries
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Electric Transmission & Distribution | |
| | | Quarter Ended | | | | | | | Year Ended | | | | |
| | | December 31, | | | % Diff | | | December 31, | | | % Diff | |
| | | 2007 | | | 2008 | | | Fav/(Unfav) | | | 2007 | | | 2008 | | | Fav/(Unfav) | |
Results of Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenues: | | | | | | | | | | | | | | | | | | | | | | | | |
| Electric transmission and distribution utility | | $ | 373 | | | $ | 373 | | | | — | | | $ | 1,560 | | | $ | 1,593 | | | | 2 | % |
| Transition bond companies | | | 65 | | | | 72 | | | | 11 | % | | | 277 | | | | 323 | | | | 17 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Total | | | 438 | | | | 445 | | | | 2 | % | | | 1,837 | | | | 1,916 | | | | 4 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses: | | | | | | | | | | | | | | | | | | | | | | | | |
| Operation and maintenance | | | 185 | | | | 201 | | | | (9 | %) | | | 652 | | | | 703 | | | | (8 | %) |
| Depreciation and amortization | | | 61 | | | | 69 | | | | (13 | %) | | | 243 | | | | 277 | | | | (14 | %) |
| Taxes other than income taxes | | | 52 | | | | 48 | | | | 8 | % | | | 223 | | | | 201 | | | | 10 | % |
| Transition bond companies | | | 36 | | | | 39 | | | | (8 | %) | | | 158 | | | | 190 | | | | (20 | %) |
| | | | | | | | | | | | | | | | | | | | | |
| Total | | | 334 | | | | 357 | | | | (7 | %) | | | 1,276 | | | | 1,371 | | | | (7 | %) |
| | | | | | | | | | | | | | | | | | | | | |
| Operating Income | | $ | 104 | | | $ | 88 | | | | (15 | %) | | $ | 561 | | | $ | 545 | | | | (3 | %) |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating Income: | | | | | | | | | | | | | | | | | | | | | | | | |
| Electric transmission and distribution operations | | $ | 65 | | | $ | 55 | | | | (15 | %) | | $ | 400 | | | $ | 407 | | | | 2 | % |
| Competition transition charge | | | 10 | | | | — | | | | — | | | | 42 | | | | 5 | | | | (88 | %) |
| Transition bond companies | | | 29 | | | | 33 | | | | 14 | % | | | 119 | | | | 133 | | | | 12 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Total Segment Operating Income | | $ | 104 | | | $ | 88 | | | | (15 | %) | | $ | 561 | | | $ | 545 | | | | (3 | %) |
| | | | | | | | | | | | | | | | | | | | | |
| |
Electric Transmission & Distribution Operating Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Actual MWH Delivered | | | | | | | | | | | | | | | | | | | | | | | | |
| Residential | | | 4,939,054 | | | | 4,635,129 | | | | (6 | %) | | | 23,999,085 | | | | 24,258,254 | | | | 1 | % |
| Total | | | 17,729,923 | | | | 16,316,691 | | | | (8 | %) | | | 76,290,615 | | | | 74,839,972 | | | | (2 | %) |
| |
Weather (average for service area): | | | | | | | | | | | | | | | | | | | | | | | | |
| Percentage of 10-year average: | | | | | | | | | | | | | | | | | | | | | | | | |
| Cooling degree days | | | 140 | % | | | 88 | % | | | (52 | %) | | | 104 | % | | | 102 | % | | | (2 | %) |
| Heating degree days | | | 76 | % | | | 88 | % | | | 12 | % | | | 98 | % | | | 92 | % | | | (6 | %) |
| |
Number of metered customers — end of period: | | | | | | | | | | | | | | | | | | | | | | | | |
| Residential | | | 1,793,600 | | | | 1,821,267 | | | | 2 | % | | | 1,793,600 | | | | 1,821,267 | | | | 2 | % |
| Total | | | 2,034,074 | | | | 2,064,854 | | | | 2 | % | | | 2,034,074 | | | | 2,064,854 | | | | 2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Natural Gas Distribution | |
| | | Quarter Ended | | | | | | | Year Ended | | | | |
| | | December 31, | | | % Diff | | | December 31, | | | % Diff | |
| | | 2007 | | | 2008 | | | Fav/(Unfav) | | | 2007 | | | 2008 | | | Fav/(Unfav) | |
Results of Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenues | | $ | 1,158 | | | $ | 1,250 | | | | 8 | % | | $ | 3,759 | | | $ | 4,226 | | | | 12 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Expenses: | | | | | | | | | | | | | | | | | | | | | | | | |
| Natural gas | | | 838 | | | | 928 | | | | (11 | %) | | | 2,683 | | | | 3,124 | | | | (16 | %) |
| Operation and maintenance | | | 158 | | | | 153 | | | | 3 | % | | | 579 | | | | 589 | | | | (2 | %) |
| Depreciation and amortization | | | 41 | | | | 39 | | | | 5 | % | | | 155 | | | | 157 | | | | (1 | %) |
| Taxes other than income taxes | | | 32 | | | | 34 | | | | (6 | %) | | | 124 | | | | 141 | | | | (14 | %) |
| | | | | | | | | | | | | | | | | | | | | |
| Total | | | 1,069 | | | | 1,154 | | | | (8 | %) | | | 3,541 | | | | 4,011 | | | | (13 | %) |
| | | | | | | | | | | | | | | | | | | | | |
| Operating Income | | $ | 89 | | | $ | 96 | | | | 8 | % | | $ | 218 | | | $ | 215 | | | | (1 | %) |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Natural Gas Distribution Operating Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Throughput data in BCF | | | | | | | | | | | | | | | | | | | | | | | | |
| Residential | | | 53 | | | | 58 | | | | 9 | % | | | 172 | | | | 175 | | | | 2 | % |
| Commercial and Industrial | | | 65 | | | | 65 | | | | — | | | | 232 | | | | 236 | | | | 2 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Total Throughput | | | 118 | | | | 123 | | | | 4 | % | | | 404 | | | | 411 | | | | 2 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Weather (average for service area) | | | | | | | | | | | | | | | | | | | | | | | | |
| Percentage of 10-year average: | | | | | | | | | | | | | | | | | | | | | | | | |
| Heating degree days | | | 93 | % | | | 102 | % | | | 9 | % | | | 96 | % | | | 104 | % | | | 8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Number of customers — end of period: | | | | | | | | | | | | | | | | | | | | | | | | |
| Residential | | | 2,961,110 | | | | 2,987,222 | | | | 1 | % | | | 2,961,110 | | | | 2,987,222 | | | | 1 | % |
| Commercial and Industrial | | | 249,877 | | | | 248,476 | | | | (1 | %) | | | 249,877 | | | | 248,476 | | | | (1 | %) |
| | | | | | | | | | | | | | | | | | | | | |
| Total | | | 3,210,987 | | | | 3,235,698 | | | | 1 | % | | | 3,210,987 | | | | 3,235,698 | | | | 1 | % |
| | | | | | | | | | | | | | | | | | | | | |
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report on Form 10-K 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 | | | | | | | Year Ended | | | | |
| | | December 31, | | | % Diff | | | December 31, | | | % Diff | |
| | | 2007 | | | 2008 | | | Fav/(Unfav) | | | 2007 | | | 2008 | | | Fav/(Unfav) | |
Results of Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenues | | $ | 864 | | | $ | 896 | | | | 4 | % | | $ | 3,579 | | | $ | 4,528 | | | | 27 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Expenses: | | | | | | | | | | | | | | | | | | | | | | | | |
| Natural gas | | | 836 | | | | 856 | | | | (2 | %) | | | 3,467 | | | | 4,423 | | | | (28 | %) |
| Operation and maintenance | | | 8 | | | | 13 | | | | (63 | %) | | | 31 | | | | 39 | | | | (26 | %) |
| Depreciation and amortization | | | 1 | | | | 1 | | | | — | | | | 5 | | | | 3 | | | | 40 | % |
| Taxes other than income taxes | | | — | | | | — | | | | — | | | | 1 | | | | 1 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | |
| Total | | | 845 | | | | 870 | | | | (3 | %) | | | 3,504 | | | | 4,466 | | | | (27 | %) |
| | | | | | | | | | | | | | | | | | | | | |
| Operating Income | | $ | 19 | | | $ | 26 | | | | 37 | % | | $ | 75 | | | $ | 62 | | | | (17 | %) |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Competitive Natural Gas Sales and Services Operating Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Throughput data in BCF | | | 130 | | | | 136 | | | | 5 | % | | | 522 | | | | 528 | | | | 1 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Number of customers — end of period | | | 7,139 | | | | 9,771 | | | | 37 | % | | | 7,139 | | | | 9,771 | | | | 37 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Interstate Pipelines | |
| | | Quarter Ended | | | | | | | Year Ended | | | | |
| | | December 31, | | | % Diff | | | December 31, | | | % Diff | |
| | | 2007 | | | 2008 | | | Fav/(Unfav) | | | 2007 | | | 2008 | | | Fav/(Unfav) | |
Results of Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenues | | $ | 152 | | | $ | 182 | | | | 20 | % | | $ | 500 | | | $ | 650 | | | | 30 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Expenses: | | | | | | | | | | | | | | | | | | | | | | | | |
| Natural gas | | | 28 | | | | 58 | | | | (107 | %) | | | 83 | | | | 155 | | | | (87 | %) |
| Operation and maintenance | | | 40 | | | | 40 | | | | — | | | | 125 | | | | 133 | | | | (6 | %) |
| Depreciation and amortization | | | 12 | | | | 12 | | | | — | | | | 44 | | | | 46 | | | | (5 | %) |
| Taxes other than income taxes | | | 1 | | | | 6 | | | | (500 | %) | | | 11 | | | | 23 | | | | (109 | %) |
| | | | | | | | | | | | | | | | | | | | | |
| Total | | | 81 | | | | 116 | | | | (43 | %) | | | 263 | | | | 357 | | | | (36 | %) |
| | | | | | | | | | | | | | | | | | | | | |
| Operating Income | | $ | 71 | | | $ | 66 | | | | (7 | %) | | $ | 237 | | | $ | 293 | | | | 24 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Pipelines Operating Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Throughput data in BCF | | | | | | | | | | | | | | | | | | | | | | | | |
| Transportation | | | 336 | | | | 393 | | | | 17 | % | | | 1,216 | | | | 1,538 | | | | 26 | % |
| | | | | | | | | | | | | | | | | | | | | |
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.
CenterPoint Energy, Inc. and Subsidiaries
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Field Services | |
| | | Quarter Ended | | | | | | | Year Ended | | | | |
| | | December 31, | | | % Diff | | | December 31, | | | % Diff | |
| | | 2007 | | | 2008 | | | Fav/(Unfav) | | | 2007 | | | 2008 | | | Fav/(Unfav) | |
Results of Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenues | | $ | 50 | | | $ | 61 | | | | 22 | % | | $ | 175 | | | $ | 252 | | | | 44 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Expenses: | | | | | | | | | | | | | | | | | | | | | | | | |
| Natural gas | | | 5 | | | | 10 | | | | (100 | %) | | | (4 | ) | | | 21 | | | | (625 | %) |
| Operation and maintenance | | | 17 | | | | 21 | | | | (24 | %) | | | 66 | | | | 69 | | | | (5 | %) |
| Depreciation and amortization | | | 3 | | | | 3 | | | | — | | | | 11 | | | | 12 | | | | (9 | %) |
| Taxes other than income taxes | | | 1 | | | | 1 | | | | — | | | | 3 | | | | 3 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | |
| Total | | | 26 | | | | 35 | | | | (35 | %) | | | 76 | | | | 105 | | | | (38 | %) |
| | | | | | | | | | | | | | | | | | | | | |
| Operating Income | | $ | 24 | | | $ | 26 | | | | 8 | % | | $ | 99 | | | $ | 147 | | | | 48 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Field Services Operating Data: | | | | | | | | | | | | | | | | | | | | | | | | |
Throughput data in BCF | | | | | | | | | | | | | | | | | | | | | | | | |
| Gathering | | | 102 | | | | 110 | | | | 8 | % | | | 398 | | | | 421 | | | | 6 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Other Operations | |
| | | Quarter Ended | | | | | | | Year Ended | | | | |
| | | December 31, | | | % Diff | | | December 31, | | | % Diff | |
| | | 2007 | | | 2008 | | | Fav/(Unfav) | | | 2007 | | | 2008 | | | Fav/(Unfav) | |
Results of Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenues | | $ | 2 | | | $ | 3 | | | | 50 | % | | $ | 10 | | | $ | 11 | | | | 10 | % |
| Expenses | | | 6 | | | | 2 | | | | 67 | % | | | 15 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | |
| Operating Income (Loss) | | $ | (4 | ) | | $ | 1 | | | | 125 | % | | $ | (5 | ) | | $ | 11 | | | | 320 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | Capital Expenditures by Segment | |
| | | (Millions of Dollars) | |
| | | (Unaudited) | |
| | | Quarter Ended | | | Year Ended | |
| | | December 31, | | | December 31, | |
| | | 2007 | | | 2008 | | | 2007 | | | 2008 | |
Capital Expenditures by Segment | | | | | | | | | | | | | | | | |
| Electric Transmission & Distribution | | $ | 97 | | | $ | 80 | | | $ | 401 | | | $ | 336 | |
| Hurricane Ike | | | — | | | | 4 | | | | — | | | | 145 | |
| | | | | | | | | | | | | |
| Total Electric Transmission & Distribution | | | 97 | | | | 84 | | | | 401 | | | | 481 | |
| Natural Gas Distribution | | | 56 | | | | 63 | | | | 191 | | | | 214 | |
| Competitive Natural Gas Sales and Services | | | 2 | | | | 5 | | | | 7 | | | | 8 | |
| Interstate Pipelines | | | 55 | | | | 59 | | | | 308 | | | | 189 | |
| Field Services | | | 19 | | | | 45 | | | | 74 | | | | 122 | |
| Other Operations | | | 8 | | | | 21 | | | | 30 | | | | 39 | |
| | | | | | | | | | | | | |
| Total | | $ | 237 | | | $ | 277 | | | $ | 1,011 | | | $ | 1,053 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | Interest Expense Detail | |
| | | (Millions of Dollars) | |
| | | (Unaudited) | |
| | | Quarter Ended | | | Year Ended | |
| | | December 31, | | | December 31, | |
| | | 2007 | | | 2008 | | | 2007 | | | 2008 | |
Interest Expense Detail | | | | | | | | | | | | | | | | |
| Amortization of Deferred Financing Cost | | $ | 20 | | | $ | 7 | | | $ | 62 | | | $ | 25 | |
| Capitalization of Interest Cost | | | (3 | ) | | | (2 | ) | | | (21 | ) | | | (12 | ) |
| Transition Bond Interest Expense | | | 30 | | | | 34 | | | | 123 | | | | 136 | |
| Other Interest Expense | | | 118 | | | | 117 | | | | 462 | | | | 453 | |
| | | | | | | | | | | | | |
| Total Interest Expense | | $ | 165 | | | $ | 156 | | | $ | 626 | | | $ | 602 | |
| | | | | | | | | | | | | |
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.
CenterPoint Energy, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Millions of Dollars)
(Unaudited)
| | | | | | | | | |
| | | December 31, | | | December 31, | |
| | | 2007 | | | 2008 | |
| |
ASSETS
|
Current Assets: | | | | | | | | |
| Cash and cash equivalents | | $ | 129 | | | $ | 167 | |
| Other current assets | | | 2,659 | | | | 2,868 | |
| | | | | | | |
| Total current assets | | | 2,788 | | | | 3,035 | |
| | | | | | | |
| | | | | | | | | |
Property, Plant and Equipment, net | | | 9,740 | | | | 10,296 | |
| | | | | | | |
| | | | | | | | | |
Other Assets: | | | | | | | | |
| Goodwill | | | 1,696 | | | | 1,696 | |
| Regulatory assets | | | 2,993 | | | | 3,684 | |
| Other non-current assets | | | 655 | | | | 965 | |
| | | | | | | |
| Total other assets | | | 5,344 | | | | 6,345 | |
| | | | | | | |
Total Assets | | $ | 17,872 | | | $ | 19,676 | |
| | | | | | | |
| | | | | | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
| |
Current Liabilities: | | | | | | | | |
| Short-term borrowings | | $ | 232 | | | $ | 153 | |
| Current portion of transition bond long-term debt | | | 159 | | | | 208 | |
| Current portion of other long-term debt | | | 1,156 | | | | 125 | |
| Other current liabilities | | | 2,244 | | | | 2,362 | |
| | | | | | | |
| Total current liabilities | | | 3,791 | | | | 2,848 | |
| | | | | | | |
| | | | | | | | | |
Other Liabilities: | | | | | | | | |
| Accumulated deferred income taxes, net and investment tax credit | | | 2,266 | | | | 2,633 | |
| Regulatory liabilities | | | 828 | | | | 821 | |
| Other non-current liabilities | | | 813 | | | | 1,156 | |
| | | | | | | |
| Total other liabilities | | | 3,907 | | | | 4,610 | |
| | | | | | | |
| | | | | | | | | |
Long-term Debt: | | | | | | | | |
| Transition bond | | | 2,101 | | | | 2,381 | |
| Other | | | 6,263 | | | | 7,800 | |
| | | | | | | |
| Total long-term debt | | | 8,364 | | | | 10,181 | |
| | | | | | | |
| | | | | | | | | |
Shareholders’ Equity | | | 1,810 | | | | 2,037 | |
| | | | | | | |
Total Liabilities and Shareholders’ Equity | | $ | 17,872 | | | $ | 19,676 | |
| | | | | | | |
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.
CenterPoint Energy, Inc. and Subsidiaries
Condensed Statements of Consolidated Cash Flows
(Millions of Dollars)
(Unaudited)
| | | | | | | | | |
| | | Year Ended December 31, | |
| | | 2007 | | | 2008 | |
| |
Cash Flows from Operating Activities: | | | | | | | | |
| Net income | | $ | 399 | | | $ | 447 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | |
| Depreciation and amortization | | | 696 | | | | 736 | |
| Deferred income taxes | | | — | | | | 487 | |
| Write-down of natural gas inventory | | | 11 | | | | 30 | |
| Changes in net regulatory assets | | | 81 | | | | (366 | ) |
| Changes in other assets and liabilities | | | (425 | ) | | | (450 | ) |
| Other, net | | | 12 | | | | (33 | ) |
| | | | | | | |
Net Cash Provided by Operating Activities | | | 774 | | | | 851 | |
| | | | | | | | | |
Net Cash Used in Investing Activities | | | (1,300 | ) | | | (1,368 | ) |
| | | | | | | | | |
Net Cash Provided by Financing Activities | | | 528 | | | | 555 | |
| | | | | | | |
| | | | | | | | | |
Net Increase in Cash and Cash Equivalents | | | 2 | | | | 38 | |
| | | | | | | | | |
Cash and Cash Equivalents at Beginning of Period | | | 127 | | | | 129 | |
| | | | | | | | | |
| | | | | | | |
Cash and Cash Equivalents at End of Period | | $ | 129 | | | $ | 167 | |
| | | | | | | |
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.
