EXHIBIT 99.1
(CENTERPOINT ENERGY LOGO) For more information contact
MEDIA:
LETICIA LOWE
Phone 713.207.7702
INVESTORS:
MARIANNE PAULSEN
Phone 713.207.6500
FOR IMMEDIATE RELEASE Page 1 of 5
________________________________________________________________________________
CENTERPOINT ENERGY REPORTS THIRD QUARTER 2006 EARNINGS
HOUSTON, TX -- NOVEMBER 2, 2006 - CenterPoint Energy, Inc. (NYSE: CNP)
today reported net income and income from continuing operations of $83 million,
or $0.26 per diluted share, for the third quarter of 2006 compared to $50
million, or $0.15 per diluted share, for the same period of 2005.
"I'm pleased with the overall performance of our business and the progress
that we are achieving," said David M. McClanahan, president and chief executive
officer of CenterPoint Energy. "This continued strong performance, combined with
the growth prospects in our pipeline and field services operations, positions us
well for the future."
For the nine months ended September 30, 2006, net income was $365 million,
or $1.14 per diluted share, compared to $171 million, or $0.51 per diluted
share, for the same period of 2005. Income from continuing operations before
extraordinary item for the nine months ended September 30, 2006, was also $365
million, or $1.14 per diluted share, compared to $144 million, or $0.43 per
diluted share, for the same period of 2005.
Results for the nine months ended September 30, 2006, included the impact
of two second quarter settlements. The first was an agreement with the Internal
Revenue Service regarding the tax treatment of the company's Zero Premium
Exchangeable Subordinated Notes (ZENS) and its former Automatic Common Exchange
Securities (ACES). This agreement, which is subject to approval by the Joint
Committee on Taxation of the U. S. Congress, resulted in a reduction to the
company's previously accrued tax and related interest reserves, adding $119
million ($0.37 per diluted share) to income. The second was an agreement
settling all issues related to the remand to the Texas Public Utility Commission
of the company's 2001 unbundled cost of service order (UCOS) which reduced
income by $21 million after-tax, or $0.07 per diluted share.
Net income for the nine months ended September 30, 2005, included an
extraordinary gain of $30 million, or $0.09 per diluted share, reflecting an
adjustment to the extraordinary loss recorded in the second half of 2004 to
write down generation-related regulatory assets. In addition, net income for the
nine months ended September 30, 2005, included a loss of $3 million, or $0.01
per diluted share, from discontinued operations.
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________________________________________________________________________________
OPERATING INCOME BY SEGMENT DETAILED
ELECTRIC TRANSMISSION & DISTRIBUTION
The electric transmission & distribution segment reported operating income
of $219 million in the third quarter of 2006, consisting of $187 million for the
regulated electric transmission & distribution utility (TDU) (including $14
million for the competition transition charge (CTC)) and $32 million related to
the transition bonds. Operating income for the third quarter of 2005 totaled
$183 million, consisting of $174 million for the TDU (including $2 million for
the CTC) and $9 million related to the transition bonds.
The TDU's revenues continued to benefit from solid customer growth, with
nearly 49,000 metered customers added since September 2005. Houston experienced
normal weather during the third quarter of 2006, which created an unfavorable
weather variance when compared to the abnormally warm weather in 2005. Operation
and maintenance expenses were unchanged.
Operating income for the nine months ended September 30, 2006, was $480
million, consisting of $384 million for the TDU (including $44 million for the
CTC) and $96 million related to the transition bonds. Operating income for the
same period of 2005 totaled $385 million, consisting of $358 million for the TDU
(including $2 million for the CTC) and $27 million related to the transition
bonds. The TDU's operating income for the nine months ended September 30, 2006,
includes the $32 million adverse impact of the resolution of the 2001 UCOS order
recorded in the second quarter of 2006.
NATURAL GAS DISTRIBUTION
The natural gas distribution segment reported an operating loss of $11
million for the third quarter of 2006 compared to a loss of $16 million for the
same period of 2005. Due to seasonal impacts, the third quarter for this segment
is typically one of the weakest of the year. Higher margins from rate increases
and rate design changes, along with the addition of nearly 43,000 customers
since September 2005, were partially offset by increased operation and
maintenance expenses driven primarily by higher bad debt expense due to high
natural gas prices.
Operating income for the nine months ended September 30, 2006, was $90
million compared to $116 million for the same period of 2005. In addition to the
factors noted above, operating income for the nine months ended September 30,
2006, was adversely affected by unfavorable weather, decreased usage and costs
associated with staff reductions.
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(CENTERPOINT ENERGY LOGO) For more information contact
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FOR IMMEDIATE RELEASE Page 3 of 5
________________________________________________________________________________
COMPETITIVE NATURAL GAS SALES AND SERVICES
The competitive natural gas sales and services segment reported operating
income of $12 million for the third quarter of 2006 compared to $4 million for
the same period of 2005. The increase was primarily driven by increased sales of
gas from inventory, reduced bad debt expenses and a $21 million favorable
variance related to mark-to-market accounting for non-trading financial
derivatives used to lock in the economic value associated with basis
differentials. These positive variances were partially offset by a $26 million
write-down of natural gas inventory to the lower of average cost or market. The
company purchases and stores natural gas to meet certain future sales
requirements and enters into derivative contracts to hedge the economic value of
the future sales. Due to the inventory write-downs, operating income in the
future periods, when these sales occur, is expected to be higher.
Operating income for the nine months ended September 30, 2006, was $44
million compared to $30 million for the same period of 2005. Operating income
for the nine months ended September 30, 2006, included improved margins, a $34
million favorable variance related to mark-to-market accounting and $56 million
of write-downs of natural gas inventory.
PIPELINES AND FIELD SERVICES
The pipelines and field services segment reported operating income of $69
million for the third quarter of 2006 compared to $52 million for the same
period of 2005. This segment's businesses continue to benefit from favorable
dynamics in the markets for natural gas gathering and transportation services in
the Gulf Coast and Mid-Continent regions. Within this segment, the pipeline
business achieved higher operating income ($48 million vs. $36 million)
resulting primarily from the sale of excess gas no longer required following
improvements to a storage facility. The field services business achieved higher
operating income ($21 million vs. $16 million) driven by increased throughput.
In addition, this business recorded equity income of $2 million in the third
quarter of 2006 ($1 million for the same period in 2005) 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, 2006, was $203
million compared to $168 million for the same period of 2005. The pipeline
business achieved operating income of $137 million for the nine months ended
September 30, 2006, compared to $119 million for the same period of 2005. The
field services business achieved operating income of $66 million for the nine
months ended September 30, 2006, compared to $49 million for the same period of
2005. Equity income from the jointly-owned gas processing plant was $7 million
for the nine months ended September 30, 2006, compared to $4 million for the
same period of 2005.
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(CENTERPOINT ENERGY LOGO) For more information contact
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Phone 713.207.6500
FOR IMMEDIATE RELEASE Page 4 of 5
________________________________________________________________________________
DIVIDEND DECLARATION
On October 26, 2006, CenterPoint Energy's board of directors declared a
regular quarterly cash dividend of $0.15 per share of common stock payable on
December 8, 2006, to shareholders of record as of the close of business on
November 16, 2006.
OUTLOOK FOR 2006
CenterPoint Energy expects diluted earnings per share for 2006 to be in
the range of $1.00 to $1.10 compared to its prior expectation of $0.90 to $1.00.
This guidance excludes any impacts related to the ZENS and ACES, including the
negative impact of $0.04 per diluted share related to the increase in the tax
reserve recorded in the first quarter 2006 and the one-time positive impact of
$0.37 per diluted share related to the company's settlement regarding the tax
treatment of the ZENS and ACES recorded in the second quarter 2006. This
guidance also excludes the one-time adverse impact of $0.07 per diluted share
related to the settlement of the 2001 UCOS order recorded in the second quarter
2006. This guidance includes an estimated impact of the settlement of the TDU's
rate case and 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 impact to earnings of various
other regulatory proceedings, but 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, or the outcome of the TDU's true-up appeal.
WEBCAST OF EARNINGS CONFERENCE CALL
CenterPoint Energy's management will host an earnings conference call on
Thursday, November 2, 2006, 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/investors/events. 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, and
pipeline and field services operations. The company serves more than five
million metered customers primarily in Arkansas, Louisiana, Minnesota,
Mississippi, Oklahoma, and Texas. Assets total approximately $17 billion. With
about 9,000 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.
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(CENTERPOINT ENERGY LOGO) For more information contact
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Phone 713.207.6500
FOR IMMEDIATE RELEASE Page 5 of 5
_______________________________________________________________________________
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, 2005, Form 10-Qs for the periods ended March
31, 2006, June 30, 2006, and September 30, 2006, and other filings with the
Securities and Exchange Commission.
###
Energy, Inc. and Subsidiaries
Statements of Consolidated Income
(Millions of Dollars)
(Unaudited)
Quarter Ended September 30, Nine Months Ended September 30,
--------------------------------- ---------------------------------
2005 2006 2005 2006
--------------- ---------------- -------------- -----------------
Revenues:
Electric Transmission & Distribution $ 484 $ 533 $ 1,243 $ 1,374
Natural Gas Distribution 535 485 2,405 2,514
Competitive Natural Gas Sales and Services 1,013 830 2,783 2,743
Pipelines and Field Services 116 141 362 401
Other Operations 4 3 15 12
Eliminations (79) (57) (298) (189)
--------------- ---------------- -------------- -----------------
Total 2,073 1,935 6,510 6,855
--------------- ---------------- -------------- -----------------
Expenses:
Natural gas 1,277 1,058 4,161 4,286
Operation and maintenance 336 347 974 1,018
Depreciation and amortization 145 159 411 452
Taxes other than income taxes 90 87 277 289
--------------- ---------------- -------------- -----------------
Total 1,848 1,651 5,823 6,045
--------------- ---------------- -------------- -----------------
Operating Income 225 284 687 810
--------------- ---------------- -------------- -----------------
Other Income (Expense) :
Gain (Loss) on Time Warner investment 30 20 (29) 17
Gain (Loss) on indexed debt securities (29) (12) 34 (13)
Interest and other finance charges (168) (120) (521) (353)
Interest on transition bonds (9) (32) (27) (98)
Return on true-up balance 35 - 104 -
Other - net 7 12 18 27
--------------- ---------------- -------------- -----------------
Total (134) (132) (421) (420)
--------------- ---------------- -------------- -----------------
Income from Continuing Operations Before
Income Taxes and Extraordinary Item 91 152 266 390
Income Tax Expense (41) (69) (122) (25)
--------------- ---------------- -------------- -----------------
Income from Continuing Operations Before
Extraordinary Item 50 83 144 365
--------------- ---------------- -------------- -----------------
Discontinued Operations:
Income from Texas Genco, net of tax - - 11 -
Loss on Disposal of Texas Genco, net of tax - - (14) -
--------------- ---------------- -------------- -----------------
Total - - (3) -
--------------- ---------------- -------------- -----------------
Income Before Extraordinary Item 50 83 141 365
Extraordinary Item, net of tax - - 30 -
--------------- ---------------- -------------- -----------------
Net Income $ 50 $ 83 $ 171 $ 365
=============== ================ ============== =================
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 Nine Months Ended
September 30, September 30,
-------------------------------- -----------------------------------
2005 2006 2005 2006
--------------- --------------- ---------------- -----------------
Basic Earnings Per Common Share:
Income from Continuing Operations $ 0.16 $ 0.27 $ 0.46 $ 1.17
Income from Discontinued Operations - - (0.01) -
Extraordinary item, net of tax - - 0.10 -
--------------- --------------- ---------------- -----------------
Net Income $ 0.16 $ 0.27 $ 0.55 $ 1.17
=============== =============== ================ =================
Diluted Earnings Per Common Share:
Income from Continuing Operations $ 0.15 $ 0.26 $ 0.43 $ 1.14
Income from Discontinued Operations - - (0.01) -
Extraordinary item, net of tax - - 0.09 -
--------------- --------------- ---------------- -----------------
Net Income $ 0.15 $ 0.26 $ 0.51 $ 1.14
=============== =============== ================ =================
Dividends Declared per Common Share $ 0.07 $ 0.15 $ 0.34 $ 0.45
Weighted Average Common Shares Outstanding (000):
- Basic 309,657 311,945 309,080 311,414
- Diluted 346,503 324,716 355,022 319,974
Operating Income (Loss) by Segment
Electric Transmission & Distribution:
Transmission & Distribution Operations $ 174 $ 187 $ 358 $ 384
Transition Bond Companies 9 32 27 96
--------------- --------------- ---------------- -----------------
Total Electric Transmission & Distribution 183 219 385 480
Natural Gas Distribution (16) (11) 116 90
Competitive Natural Gas Sales and Services 4 12 30 44
Pipelines and Field Services 52 69 168 203
Other Operations 2 (5) (12) (7)
--------------- --------------- ---------------- -----------------
Total $ 225 $ 284 $ 687 $ 810
=============== =============== ================ =================
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 Nine Months Ended
September 30, September 30,
----------------------------- % Diff ----------------------------- % Diff
2005 2006 Fav/(Unfav) 2005 2006 Fav/(Unfav)
------------- -------------- ----------- ------------- -------------- -----------
RESULTS OF OPERATIONS:
Revenues:
Electric transmission and distribution
utility $ 453 $ 453 - $ 1,164 $ 1,170 1%
Transition bond companies 31 80 158% 79 204 158%
------------- -------------- ------------- --------------
Total 484 533 10% 1,243 1,374 11%
------------- -------------- ------------- --------------
Expenses:
Operation and maintenance 155 155 - 446 436 2%
Depreciation and amortization 69 58 16% 197 182 8%
Taxes other than income taxes 55 53 4% 163 168 (3%)
Transition bond companies 22 48 (118%) 52 108 (108%)
------------- -------------- ------------- --------------
Total 301 314 (4%) 858 894 (4%)
------------- -------------- ------------- --------------
Operating Income $ 183 $ 219 20% $ 385 $ 480 25%
============= ============== ============= ==============
Operating Income - Electric transmission and
distribution utility 174 187 7% 358 384 7%
Operating Income - Transition bond companies 9 32 256% 27 96 256%
------------- -------------- ------------- --------------
Total Segment Operating Income $ 183 $ 219 20% $ 385 $ 480 25%
============= ============== ============= ==============
ELECTRIC TRANSMISSION & DISTRIBUTION
OPERATING DATA:
ACTUAL MWH DELIVERED
Residential 8,871,356 8,522,786 (4%) 19,606,915 19,317,160 (1%)
Total 22,351,407 22,829,685 2% 57,134,034 59,238,907 4%
WEATHER (AVERAGE FOR SERVICE AREA):
Percentage of normal:
Cooling degree days 113% 100% (13%) 110% 105% (5%)
Heating degree days 0% 0% 0% 76% 60% (16%)
AVERAGE NUMBER OF METERED CUSTOMERS:
Residential 1,690,819 1,740,079 3% 1,675,904 1,729,348 3%
Total 1,921,594 1,976,559 3% 1,904,235 1,964,189 3%
NATURAL GAS DISTRIBUTION
--------------------------------------------------------------------------------------
Quarter Ended Nine Months Ended
September 30, September 30,
----------------------------- % Diff ----------------------------- % Diff
2005 2006 Fav/(Unfav) 2005 2006 Fav/(Unfav)
------------- -------------- ----------- ------------- -------------- -----------
RESULTS OF OPERATIONS:
Revenues $ 535 $ 485 (9%) $ 2,405 $ 2,514 5%
------------- -------------- ------------- --------------
Expenses:
Natural gas 355 298 16% 1,693 1,787 (6%)
Operation and maintenance 132 137 (4%) 393 429 (9%)
Depreciation and amortization 39 38 3% 115 113 2%
Taxes other than income taxes 25 23 8% 88 95 (8%)
------------- -------------- ------------- --------------
Total 551 496 10% 2,289 2,424 (6%)
------------- -------------- ------------- --------------
Operating Income (Loss) $ (16) $ (11) 31% $ 116 $ 90 (22%)
============= ============== ============= ==============
NATURAL GAS DISTRIBUTION OPERATING DATA:
THROUGHPUT DATA IN BCF
Residential 9 14 56% 107 98 (8%)
Commercial and Industrial 38 44 16% 158 160 1%
------------- -------------- ------------- --------------
Total Throughput 47 58 23% 265 258 (3%)
============= ============== ============= ==============
WEATHER (AVERAGE FOR SERVICE AREA)
Percentage of normal:
Heating degree days 34% 104% 70% 89% 81% (8%)
AVERAGE NUMBER OF CUSTOMERS:
Residential 2,820,629 2,849,040 1% 2,835,306 2,864,999 1%
Commercial and Industrial 244,249 253,063 4% 246,370 253,357 3%
------------- -------------- ------------- --------------
Total 3,064,878 3,102,103 1% 3,081,676 3,118,356 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 Nine Months Ended
September 30, September 30,
---------------------------- % Diff -------------------------- % Diff
2005 2006 Fav/(Unfav) 2005 2006 Fav/(Unfav)
------------- ------------- ------------ ------------ ------------ ------------
RESULTS OF OPERATIONS:
Revenues $ 1,013 $ 830 (18%) $ 2,783 $ 2,743 (1%)
------------- ------------- ------------ ------------
Expenses:
Natural gas 998 809 19% 2,728 2,673 2%
Operation and maintenance 9 8 11% 21 23 (10%)
Depreciation and amortization - - - 1 1 -
Taxes other than income taxes 2 1 50% 3 2 33%
------------- ------------- ------------ ------------
Total 1,009 818 19% 2,753 2,699 2%
------------- ------------- ------------ ------------
Operating Income $ 4 $ 12 200% $ 30 $ 44 47%
============= ============= ============ ============
COMPETITIVE NATURAL GAS SALES AND
SERVICES OPERATING DATA:
THROUGHPUT DATA IN BCF
Wholesale - third parties 81 90 11% 235 251 7%
Wholesale - affiliates 11 8 (27%) 46 27 (41%)
Retail 31 31 - 112 110 (2%)
Pipeline 10 9 (10%) 41 28 (32%)
------------- ------------- ------------ ------------
Total Throughput 133 138 4% 434 416 (4%)
============= ============= ============ ============
AVERAGE NUMBER OF CUSTOMERS:
Wholesale 144 140 (3%) 143 140 (2%)
Retail 6,225 6,213 - 6,203 6,416 3%
Pipeline 147 138 (6%) 154 138 (10%)
------------- ------------- ------------ ------------
Total 6,516 6,491 - 6,500 6,694 3%
============= ============= ============ ============
PIPELINES AND FIELD SERVICES
------------------------------------------------------------------------------------
Quarter Ended Nine Months Ended
September 30, September 30,
---------------------------- % Diff --------------------------- % Diff
2005 2006 Fav/(Unfav) 2005 2006 Fav/(Unfav)
------------- ------------- ------------ ------------ ------------- -----------
RESULTS OF OPERATIONS:
Revenues $ 116 $ 141 22% $ 362 $ 401 11%
------------- ------------- ------------ ------------
Expenses:
Natural gas - 7 - 25 10 60%
Operation and maintenance 47 47 - 121 136 (12%)
Depreciation and amortization 12 12 - 34 36 (6%)
Taxes other than income taxes 5 6 (20%) 14 16 (14%)
------------- ------------- ------------ ------------
Total 64 72 (13%) 194 198 (2%)
------------- ------------- ------------ ------------
Operating Income $ 52 $ 69 33% $ 168 $ 203 21%
============= ============= ============ ============
Operating Income - Pipeline business 36 48 33% 119 137 15%
Operating Income - Field Services business 16 21 31% 49 66 35%
------------- ------------- ------------ ------------
Total Segment Operating Income $ 52 $ 69 33% $ 168 $ 203 21%
============= ============= ============ ============
PIPELINES AND FIELD SERVICES OPERATING
DATA:
THROUGHPUT DATA IN BCF
Natural Gas Sales - 1 - 4 3 (25%)
Transportation 199 204 3% 700 718 3%
Gathering 92 97 5% 262 279 6%
Elimination (1) (1) - (4) (2) 50%
------------- ------------- ------------ ------------
Total Throughput 290 301 4% 962 998 4%
============= ============= ============ ============
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)
OTHER OPERATIONS
------------------------------------------------------------------------------------
Quarter Ended Nine Months Ended
September 30, September 30,
---------------------------- % Diff -------------------------- % Diff
2005 2006 Fav/(Unfav) 2005 2006 Fav/(Unfav)
------------ -------------- ------------ ------------ ------------ ------------
RESULTS OF OPERATIONS:
Revenues $ 4 $ 3 (25%) $ 15 $ 12 (20%)
Expenses 2 8 (300%) 27 19 30%
------------ -------------- ------------- ------------
Operating Income (Loss) $ 2 $ (5) (350%) $ (12) $ (7) 42%
============ ============== ============= ============
Capital Expenditures by Segment
(Millions of Dollars)
(Unaudited)
--------------------------------- --------------------------------
Quarter Ended Nine Months Ended
September 30, September 30,
--------------------------------- --------------------------------
2005 2006 2005 2006
---------------- --------------- --------------- ---------------
CAPITAL EXPENDITURES BY SEGMENT
Electric Transmission & Distribution $ 57 $ 88 $ 199 $ 278
Natural Gas Distribution 77 48 173 133
Competitive Natural Gas Sales and Services - 4 - 14
Pipelines and Field Services 55 135 108 219
Other Operations 7 4 17 18
---------------- --------------- --------------- ---------------
Total $ 196 $ 279 $ 497 $ 662
================ =============== =============== ===============
Interest Expense Detail
(Millions of Dollars)
(Unaudited)
--------------------------------- --------------------------------
Quarter Ended Nine Months Ended
September 30, September 30,
--------------------------------- --------------------------------
2005 2006 2005 2006
---------------- --------------- --------------- ---------------
INTEREST EXPENSE DETAIL
Amortization of Deferred Financing Cost $ 19 $ 14 $ 58 $ 40
Capitalization of Interest Cost (1) (3) (3) (6)
Transition Bond Interest Expense 9 32 27 98
Other Interest Expense 150 109 466 319
---------------- --------------- --------------- ---------------
Total Interest Expense $ 177 $ 152 $ 548 $ 451
================ =============== =============== ===============
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, September 30,
2005 2006
------------- -------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 74 $ 285
Other current assets 2,817 2,281
------------- -------------
Total current assets 2,891 2,566
------------- -------------
PROPERTY, PLANT AND EQUIPMENT, NET 8,492 8,842
------------- -------------
OTHER ASSETS:
Goodwill 1,709 1,709
Regulatory assets 2,955 2,838
Other non-current assets 1,069 1,018
------------- -------------
Total other assets 5,733 5,565
------------- -------------
TOTAL ASSETS $ 17,116 $ 16,973
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of transition bond long-term debt $ 73 $ 147
Current portion of other long-term debt 266 1,093
Other current liabilities 2,675 2,136
------------- -------------
Total current liabilities 3,014 3,376
------------- -------------
OTHER LIABILITIES:
Accumulated deferred income taxes, net and
investment tax credit 2,520 2,444
Regulatory liabilities 728 826
Other non-current liabilities 990 855
------------- -------------
Total other liabilities 4,238 4,125
------------- -------------
LONG-TERM DEBT:
Transition bond 2,407 2,260
Other 6,161 5,645
------------- -------------
Total long-term debt 8,568 7,905
------------- -------------
SHAREHOLDERS' EQUITY 1,296 1,567
------------- -------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 17,116 $ 16,973
============= =============
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)
Nine Months Ended
September 30,
-----------------------------
2005 2006
------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 171 $ 365
Discontinued operations, net of tax 3 -
Extraordinary item, net of tax (30) -
------------- -------------
Income from continuing operations 144 365
Adjustments to reconcile income from continuing operations
to net cash provided by operating activities:
Depreciation and amortization 470 489
Deferred income taxes and investment tax credit 156 (87)
Tax and interest reserves reductions related to ZENS
and ACES - (119)
Write-down of natural gas inventory - 56
Changes in net regulatory assets (166) 65
Changes in other assets and liabilities (295) (48)
Other, net 4 7
------------- -------------
NET CASH PROVIDED BY OPERATING ACTIVITIES OF CONTINUING
OPERATIONS 313 728
NET CASH USED IN OPERATING ACTIVITIES OF DISCONTINUED
OPERATIONS (38) -
------------- -------------
NET CASH PROVIDED BY OPERATING ACTIVITIES 275 728
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 218 (626)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (496) 109
------------- -------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (3) 211
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 165 74
------------- -------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 162 $ 285
============= =============
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.