CenterPoint Energy Reports Fourth Quarter and Full Year 2007 Earnings
HOUSTON, Feb 28, 2008 (PrimeNewswire via COMTEX News Network) -- CenterPoint Energy, Inc. (NYSE:CNP) today reported net income of $108 million, or $0.32 per diluted share, for the fourth quarter of 2007 compared to $67 million, or $0.20 per diluted share, for the same period of 2006. Results for the fourth quarter of 2006 were reduced by $12 million, or $0.04 per diluted share, related to the resolution of the company's Zero Premium Exchangeable Subordinated Notes (ZENS) tax issue. Excluding this item, net income for the fourth quarter of 2006 would have been $79 million, or $0.24 per diluted share, compared to $108 million, or $0.32 per diluted share, for the fourth quarter of 2007.
Net income for the year 2007 was $399 million, or $1.17 per diluted share, compared to $432 million, or $1.33 per diluted share, for 2006. Results for the year 2006 were favorably impacted by $92 million, or $0.28 per diluted share, due to the resolution of the ZENS tax issue but were negatively impacted by $21 million, or $0.06 per diluted share, from a settlement related to the company's 2001 unbundled cost of service order (UCOS) issued by the Texas Public Utility Commission. Excluding the net effect of these items, net income for the year 2006 would have been $361 million, or $1.11 per diluted share, compared to $399 million, or $1.17 per diluted share, for the year 2007.
"I am very pleased with the overall financial results that we are reporting today," said David M. McClanahan, president and chief executive officer of CenterPoint Energy. "Our natural gas utilities showed significant improvement reflecting actions we have taken to enhance the operational and financial performance of this business. Our interstate pipelines and field services businesses turned in strong performances and our electric utility and competitive natural gas marketing businesses had a very solid year. Our company is well positioned to continue to take advantage of opportunities in each of our businesses."
OPERATING INCOME BY SEGMENT
Electric Transmission & Distribution
The electric transmission & distribution segment reported operating income of $104 million in the fourth quarter of 2007, consisting of $65 million from the regulated electric transmission & distribution utility operations (TDU), $10 million from the competition transition charge (CTC), and $29 million related to transition bonds. Operating income for the fourth quarter of 2006 was $96 million, consisting of $55 million from the TDU, $11 million from the CTC, and $30 million related to transition bonds. Operating income for the TDU for the fourth quarter of 2007 was positively impacted by customer growth of over 53,000 metered customers since December 2006, increased usage primarily due to favorable weather and higher revenues from ancillary services, partially offset by increased operating expenses.
Operating income for the year 2007 was $561 million, consisting of $400 million from the TDU, $42 million from the CTC, and $119 million related to transition bonds. Operating income for 2006 was $576 million, consisting of $395 million from the TDU, $55 million from the CTC, and $126 million related to transition bonds. In addition to the factors noted above, operating income for the TDU for 2007 was impacted by a full year of reduced base rates and increased spending on low income assistance and energy efficiency programs resulting from a rate settlement implemented in October 2006. In addition, operating income for 2007 included a $17 million favorable settlement related to the final fuel reconciliation of the formerly integrated electric utility. Operating income for 2006 included a $32 million charge related to the UCOS settlement and proceeds from land sales.
Natural Gas Distribution
The natural gas distribution segment reported operating income of $89 million for the fourth quarter of 2007 compared to $34 million for the same period of 2006. The increase in operating income for the fourth quarter of 2007 resulted from the addition of over 38,000 customers since December 2006, increased customer usage, the benefit of rate increases and reduced operating expenses, partially offset by higher bad debt expense. Operating income for the fourth quarter of 2006 included a $21 million write-off for purchased natural gas costs for periods prior to July 2004, which were denied recovery by the Minnesota Public Utilities Commission.
Operating income for the year 2007 was $218 million compared to $124 million for 2006. In addition to the factors noted, operating income for 2007 benefited from a return to more normal weather.
Competitive Natural Gas Sales and Services
The competitive natural gas sales and services segment reported operating income of $19 million for the fourth quarter of 2007 compared to $33 million for the same period of 2006. The decrease in operating income was due to a reduction in locational and seasonal natural gas price differentials. In addition, the fourth quarter of 2007 included a $2 million gain resulting from mark-to-market accounting compared to a $3 million gain for the same period of 2006. The fourth quarter of 2006 also included a $10 million inventory write-down of natural gas inventory to the lower of average cost or market.
Operating income for the year 2007 was $75 million compared to $77 million for 2006. For the year 2007, an increase in sales to commercial and industrial customers was more than offset by reduced opportunities for optimization of the company's pipeline and storage assets resulting from lower locational and seasonal natural gas price differentials. In addition, the year 2007 included a $10 million charge resulting from mark-to-market accounting and an $11 million inventory write-down, compared to a $37 million gain resulting from mark-to-market accounting and a $66 million inventory write-down for 2006.
Interstate Pipelines
The interstate pipelines segment reported operating income of $71 million for the fourth quarter of 2007 compared to $44 million for the same period of 2006. The increase in operating income was driven primarily by the new Carthage to Perryville pipeline, which went into commercial service in May 2007 and favorable settlements of certain state tax issues, partially offset by higher operating expenses and a write-off of project development costs. The fourth quarter of 2006 included a gain from the sale of excess gas no longer required following improvements to a storage facility and a write-off of expenses associated with a discontinued pipeline project.
Operating income for the year 2007 was $237 million compared to $181 million for 2006. In addition to the factors noted above, operating income for 2007 benefited from increased ancillary services.
Field Services
The field services segment reported operating income of $24 million for the fourth quarter of 2007 compared to $23 million for the same period of 2006. In addition to operating income, this business had equity income of $3 million in the fourth quarter of 2007 compared to a loss of $1 million in the fourth quarter of 2006 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 year 2007 was $99 million compared to $89 million for 2006. Operating income increased due to higher throughput and increased ancillary services, partially offset by higher operating expenses and lower commodity prices. In addition, equity income from the jointly-owned gas processing plant was $10 million for the year 2007 compared to $6 million for the year 2006. The increase was primarily due to a plant expansion.
DIVIDEND DECLARATION
On January 24, 2008, CenterPoint Energy's board of directors declared a regular quarterly cash dividend of $0.1825 per share of common stock payable on March 10, 2008, to shareholders of record as of the close of business on February 15, 2008.
OUTLOOK FOR 2008
CenterPoint Energy expects diluted earnings per share for 2008 to be in the range of $1.15 to $1.25. This 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 impact to earnings of various 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.
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, 2007. 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 Thursday, February 28, 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 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, 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 $17 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 at www.CenterPointEnergy.com.
The CenterPoint Energy logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3588
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, 2007, and other filings with the Securities and Exchange Commission.
CenterPoint Energy, Inc. and Subsidiaries
Statements of Consolidated Income
(Millions of Dollars)
(Unaudited)
Quarter Ended Twelve Months Ended
December 31, December 31,
------------------ ------------------
2006 2007 2006 2007
------- ------- ------- -------
Revenues:
Electric Transmission &
Distribution $ 407 $ 438 $ 1,781 $ 1,837
Natural Gas Distribution 1,079 1,158 3,593 3,759
Competitive Natural Gas
Sales and Services 908 864 3,651 3,579
Interstate Pipelines 89 152 388 500
Field Services 36 50 150 175
Other Operations 3 2 15 10
Eliminations (58) (62) (259) (237)
------- ------- ------- -------
Total 2,464 2,602 9,319 9,623
------- ------- ------- -------
Expenses:
Natural gas 1,623 1,646 5,909 5,995
Operation and maintenance 381 409 1,399 1,440
Depreciation and
amortization 147 156 599 631
Taxes other than income
taxes 78 88 367 372
------- ------- ------- -------
Total 2,229 2,299 8,274 8,438
------- ------- ------- -------
Operating Income 235 303 1,045 1,185
------- ------- ------- -------
Other Income (Expense) :
Gain (Loss) on Time Warner
investment 77 (40) 94 (114)
Gain (Loss) on indexed
debt securities (67) 41 (80) 111
Interest and other finance
charges (117) (135) (470) (503)
Interest on transition
bonds (32) (30) (130) (123)
Distribution from AOL Time
Warner litigation
settlement -- -- -- 32
Additional distribution
to ZENS holders -- -- -- (27)
Other - net 8 10 35 33
------- ------- ------- -------
Total (131) (154) (551) (591)
------- ------- ------- -------
Income Before Income Taxes 104 149 494 594
Income Tax Expense (37) (41) (62) (195)
------- ------- ------- -------
Net Income $ 67 $ 108 $ 432 $ 399
======= ======= ======= =======
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 Twelve Months Ended
December 31, December 31,
------------------- -------------------
2006 2007 2006 2007
--------- --------- --------- ---------
Basic Earnings Per Common
Share:
Net Income $ 0.21 $ 0.34 $ 1.39 $ 1.25
========= ========= ========= =========
Diluted Earnings Per Common
Share:
Net Income $ 0.20 $ 0.32 $ 1.33 $ 1.17
========= ========= ========= =========
Dividends Declared per Common
Share $ 0.15 $ 0.17 $ 0.60 $ 0.68
Weighted Average Common
Shares Outstanding (000):
- Basic 313,048 321,695 311,826 320,480
- Diluted 334,618 342,841 324,778 342,507
Operating Income (Loss) by
Segment
--------------------------
Electric Transmission &
Distribution:
Electric Transmission and
Distribution Operations $ 55 $ 65 $ 395 $ 400
Competition Transition
Charge 11 10 55 42
--------- --------- --------- ---------
Total Electric Transmission
and Distribution Utility 66 75 450 442
Transition Bond Companies 30 29 126 119
--------- --------- --------- ---------
Total Electric Transmission
& Distribution 96 104 576 561
Natural Gas Distribution 34 89 124 218
Competitive Natural Gas Sales
and Services 33 19 77 75
Interstate Pipelines 44 71 181 237
Field Services 23 24 89 99
Other Operations 5 (4) (2) (5)
--------- --------- --------- ---------
Total $ 235 $ 303 $ 1,045 $ 1,185
========= ========= ========= =========
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 % Twelve Months Ended %
December 31, Diff December 31, Diff
----------------------- Fav/ ---------------------- Fav/
2006 2007 (Unfav) 2006 2007 (Unfav)
----------- ----------- ---- ----------- ---------- ----
Results of
Operations:
Revenues:
Electric
transmission
and
distribution
utility $ 346 $ 373 8% $ 1,516 $ 1,560 3%
Transition
bond
companies 61 65 7% 265 277 5%
----------- ----------- ----------- -----------
Total 407 438 8% 1,781 1,837 3%
----------- ----------- ----------- -----------
Expenses:
Operation and
maintenance 175 185 (6%) 611 652 (7%)
Depreciation
and
amortization 61 61 -- 243 243 --
Taxes other
than income
taxes 44 52 (18%) 212 223 (5%)
Transition
bond
companies 31 36 (16%) 139 158 (14%)
----------- ----------- ----------- -----------
Total 311 334 (7%) 1,205 1,276 (6%)
----------- ----------- ----------- -----------
Operating
Income $ 96 $ 104 8% $ 576 $ 561 (3%)
=========== =========== =========== ===========
Operating
Income:
Electric
transmission
and
distribution
opera-
tions $ 55 $ 65 18% $ 395 $ 400 1%
Competition
transition
charge 11 10 (9%) 55 42 (24%)
Transition
bond
companies 30 29 (3%) 126 119 (6%)
----------- ----------- ----------- -----------
Total
Segment
Operating
Income $ 96 $ 104 8% $ 576 $ 561 (3%)
=========== =========== =========== ===========
Electric
Transmission
& Distribution
Operating Data:
Actual MWH
Delivered
Residential 4,637,585 4,939,054 7% 23,954,745 23,999,085 --
Total 16,638,022 17,729,923 7% 75,876,929 76,290,615 1%
Weather
(average for
service area):
Percentage of
10-year
average:
Cooling degree
days 111% 140% 29% 102% 104% 2%
Heating degree
days 85% 76% (9%) 76% 98% 22%
Average number
of metered
customers:
Residential 1,742,580 1,790,977 3% 1,732,656 1,773,319 2%
Total 1,979,890 2,031,504 3% 1,968,114 2,012,636 2%
Natural Gas Distribution
---------------------------------------------------------
Quarter Ended % Twelve Months Ended %
December 31, Diff December 31, Diff
----------------------- Fav/ ---------------------- Fav/
2006 2007 (Unfav) 2006 2007 (Unfav)
----------- ----------- ---- ----------- ----------- ----
Results of
Operations:
Revenues $ 1,079 $ 1,158 7% $ 3,593 $ 3,759 5%
----------- ----------- ----------- -----------
Expenses:
Natural gas 811 838 (3%) 2,598 2,683 (3%)
Operation
and
maintenance 165 158 4% 594 579 3%
Depreciation
and
amortization 39 41 (5%) 152 155 (2%)
Taxes other
than income
taxes 30 32 (7%) 125 124 1%
----------- ----------- ----------- -----------
Total 1,045 1,069 (2%) 3,469 3,541 (2%)
----------- ----------- ----------- -----------
Operating
Income $ 34 $ 89 (162%)$ 124 $ 218 76%
=========== =========== =========== ===========
Natural Gas
Distribution
Operating
Data:
Throughput
data in BCF
Residential 54 53 (2%) 152 172 13%
Commercial
and
Industrial 64 65 2% 224 232 4%
----------- ----------- ----------- -----------
Total
Throughput 118 118 -- 376 404 7%
=========== =========== =========== ===========
Weather
(average for
service area)
Percentage
of 10-year
average:
Heating
degree
days 95% 93% (2%) 88% 96% 8%
Average
number of
customers:
Residential 2,909,673 2,944,729 1% 2,883,927 2,931,523 2%
Commercial
and
Industrial 244,030 248,824 2% 243,265 246,993 2%
----------- ----------- ----------- -----------
Total 3,153,703 3,193,553 1% 3,127,192 3,178,516 2%
=========== =========== =========== ===========
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
--------------------------------------------------------
Twelve
Quarter Ended Months Ended
December 31, December 31,
--------------- % Diff --------------- % Diff
2006 2007 Fav/(Unfav) 2006 2007 Fav/(Unfav)
------ ------ ---------- ------ ------ ----------
Results of
Operations:
Revenues $ 908 $ 864 (5%) $3,651 $3,579 (2%)
------ ------ ------ ------
Expenses:
Natural gas 867 836 4% 3,540 3,467 2%
Operation
and
maintenance 7 8 (14%) 30 31 (3%)
Depreciation
and
amortization -- 1 -- 1 5 (400%)
Taxes other
than income
taxes 1 -- 100% 3 1 67%
------ ------ ------ ------
Total 875 845 3% 3,574 3,504 2%
------ ------ ------ ------
Operating
Income $ 33 $ 19 (42%) $ 77 $ 75 (3%)
====== ====== ====== ======
Competitive
Natural Gas
Sales and
Services
Operating
Data:
Throughput
data in BCF
Wholesale -
third
parties 84 73 (13%) 335 314 (6%)
Wholesale -
affiliates 9 2 (78%) 36 9 (75%)
Retail &
Pipeline 46 55 20% 184 199 8%
------ ------ ------ ------
Total
Throughput 139 130 (6%) 555 522 (6%)
====== ====== ====== ======
Average
number of
customers:
Wholesale 140 237 69% 140 235 68%
Retail &
Pipeline 6,697 6,870 3% 6,590 6,801 3%
------ ------ ------ ------
Total 6,837 7,107 4% 6,730 7,036 5%
====== ====== ====== ======
Interstate Pipelines
--------------------------------------------------------
Twelve
Quarter Ended Months Ended
December 31, December 31,
--------------- % Diff --------------- % Diff
2006 2007 Fav/(Unfav) 2006 2007 Fav/(Unfav)
------ ------ ---------- ------ ------ ----------
Results of
Operations:
Revenues $ 89 $ 152 71% $ 388 $ 500 29%
------ ------ ------ ------
Expenses:
Natural gas 8 28 (250%) 31 83 (168%)
Operation
and
maintenance 23 40 (74%) 120 125 (4%)
Depreciation
and
amortization 9 12 (33%) 37 44 (19%)
Taxes other
than income
taxes 5 1 80% 19 11 42%
------ ------ ------ ------
Total 45 81 (80%) 207 263 (27%)
------ ------ ------ ------
Operating
Income $ 44 $ 71 61% $ 181 $ 237 31%
====== ====== ====== ======
Pipelines
Operating
Data:
Throughput
data in BCF
Transporta-
tion 221 336 52% 939 1,216 29%
====== ====== ====== ======
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
-----------------------------------------------------
Twelve Months
Quarter Ended Ended
December 31, % Diff December 31, % Diff
----------------- Fav/ ----------------- Fav/
2006 2007 (Unfav) 2006 2007 (Unfav)
------- ------- ------- ------- ------- -------
Results of
Operations:
Revenues $ 36 $ 50 39% $ 150 $ 175 17%
------- ------- ------- -------
Expenses:
Natural gas (6) 5 (183%) (10) (4) (60%)
Operation and
maintenance 17 17 -- 59 66 (12%)
Depreciation
and
amortization 2 3 (50%) 10 11 (10%)
Taxes other
than income
taxes -- 1 -- 2 3 (50%)
------- ------- ------- -------
Total 13 26 (100%) 61 76 (25%)
------- ------- ------- -------
Operating
Income $ 23 $ 24 4% $ 89 $ 99 11%
======= ======= ======= =======
Field Services
Operating
Data:
Throughput
data in BCF
Gathering 96 102 6% 375 398 6%
======= ======= ======= =======
Other Operations
-----------------------------------------------------
Twelve Months
Quarter Ended Ended
December 31, % Diff December 31, % Diff
----------------- Fav/ ----------------- Fav/
2006 2007 (Unfav) 2006 2007 (Unfav)
------- ------- ------- ------- ------- -------
Results of
Operations:
Revenues $ 3 $ 2 (33%) $ 15 $ 10 (33%)
Expenses (2) 6 (400%) 17 15 12%
------- ------- ------- -------
Operating
Income (Loss) $ 5 $ (4) (180%) $ (2) $ (5) (150%)
======= ======= ======= =======
Capital Expenditures by Segment
(Millions of Dollars)
(Unaudited)
---------------------------------------------
Twelve Months
Quarter Ended Ended
December 31, December 31,
----------------- -----------------
2006 2007 2006 2007
------- ------- ------- -------
Capital
Expenditures
by Segment
Electric
Transmission
& Distribu-
tion $ 111 $ 97 $ 389 $ 401
Natural Gas
Distribution 54 56 187 191
Competitive
Natural Gas
Sales and
Services 4 2 18 7
Interstate
Pipelines 259 55 437 308
Field
Services 24 19 65 74
Other
Operations 7 8 25 30
------- ------- ------- -------
Total $ 459 $ 237 $ 1,121 $ 1,011
======= ======= ======= =======
Interest Expense Detail
(Millions of Dollars)
(Unaudited)
---------------------------------------------
Twelve Months
Quarter Ended Ended
December 31, December 31,
----------------- -----------------
2006 2007 2006 2007
------- ------- ------- -------
Interest
Expense Detail
Amortization
of Deferred
Financing
Cost $ 13 $ 20 $ 53 $ 62
Capitalization
of Interest
Cost (4) (3) (10) (21)
Transition Bond
Interest
Expense 32 30 130 123
Other Interest
Expense 108 118 427 462
------- ------- ------- -------
Total Interest
Expense $ 149 $ 165 $ 600 $ 626
======= ======= ======= =======
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,
2006 2007
--------- ---------
ASSETS
Current Assets:
Cash and cash equivalents $ 127 $ 129
Other current assets 2,868 2,659
--------- ---------
Total current assets 2,995 2,788
--------- ---------
Property, Plant and Equipment, net 9,204 9,740
--------- ---------
Other Assets:
Goodwill 1,705 1,696
Regulatory assets 3,290 2,993
Other non-current assets 439 655
--------- ---------
Total other assets 5,434 5,344
--------- ---------
Total Assets $ 17,633 $ 17,872
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Short-term borrowings $ 187 $ 232
Current portion of transition bond
long-term debt 147 159
Current portion of other long-term debt 1,051 1,156
Other current liabilities 2,836 2,244
--------- ---------
Total current liabilities 4,221 3,791
--------- ---------
Other Liabilities:
Accumulated deferred income taxes, net
and investment tax credit 2,362 2,266
Regulatory liabilities 792 828
Other non-current liabilities 900 813
--------- ---------
Total other liabilities 4,054 3,907
--------- ---------
Long-term Debt:
Transition bond 2,260 2,101
Other 5,542 6,263
--------- ---------
Total long-term debt 7,802 8,364
--------- ---------
Shareholders' Equity 1,556 1,810
--------- ---------
Total Liabilities and Shareholders'
Equity $ 17,633 $ 17,872
========= =========
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)
Twelve Months Ended
December 31,
-----------------
2006 2007
------- -------
Cash Flows from Operating Activities:
Net income $ 432 $ 399
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 655 696
Deferred income taxes and investment tax
credit (241) --
Tax and interest reserves reductions
related to ZENS and ACES (107) --
Write-down of natural gas inventory 66 11
Changes in net regulatory assets 79 81
Changes in other assets and liabilities 108 (425)
Other, net (1) 12
------- -------
Net Cash Provided by Operating Activities 991 774
Net Cash Used in Investing Activities (1,056) (1,300)
Net Cash Provided by Financing Activities 118 528
------- -------
Net Increase in Cash and Cash Equivalents 53 2
Cash and Cash Equivalents at Beginning of Period 74 127
------- -------
Cash and Cash Equivalents at End of Period $ 127 $ 129
======= =======
Reference is made to the Notes to the Consolidated Financial
Statements contained in the Annual Report on Form 10-K of CenterPoint
Energy, Inc.
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SOURCE: CenterPoint Energy, Inc.
CenterPoint Energy, Inc.
Media:
Leticia Lowe
713.207.7702
Investors:
Marianne Paulsen
713.207.6500
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