CenterPoint Energy Reports Second Quarter 2006 Earnings
HOUSTON, Aug 03, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- CenterPoint Energy, Inc. (NYSE: CNP) today reported net income of $194 million, or $0.61 per diluted share, for the second quarter of 2006 compared to $54 million, or $0.16 per diluted share, for the same period of 2005. Income from continuing operations before extraordinary item for the second quarter of 2006 was also $194 million, or $0.61 per diluted share, compared to $27 million, or $0.09 per diluted share, for the second quarter of 2005.
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Agreements have been reached on the terms of two settlements that had an impact on net income for the second quarter of 2006. The first was an agreement with the Internal Revenue Service (IRS) on terms of a settlement 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 ($0.38 per diluted share) to income. The second was an agreement settling all issues related to the remand to the Texas Public Utility Commission (PUC) 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 second quarter of 2005 included an extraordinary gain of $30 million, or $0.08 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 second quarter of 2005 included a loss of $3 million, or $0.01 per diluted share, from discontinued operations.
For the six months ended June 30, 2006, net income was $282 million, or $0.89 per diluted share, compared to $121 million, or $0.35 per diluted share, for the same period of 2005. Income from continuing operations before extraordinary item for the six months ended June 30, 2006, was $282 million, or $0.89 per diluted share, compared to $94 million, or $0.28 per diluted share, for the same period of 2005. The same factors described above for the second quarter periods impacted the six-month periods for 2006 and 2005.
"I'm very pleased with the overall performance of our business and the progress we are achieving," said David M. McClanahan, president and chief executive officer of CenterPoint Energy. "This continued strong performance, combined with the resolution of a number of legacy issues, including our recent settlements of certain tax and regulatory matters, positions the company well for the future."
OPERATING INCOME BY SEGMENT DETAILED
Electric Transmission & Distribution
The electric transmission & distribution segment reported operating income of $151 million in the second quarter of 2006, consisting of $119 million for the regulated electric transmission & distribution utility (TDU) and $32 million related to transition bonds, which is an amount sufficient to pay interest on the bonds. Operating income for the second quarter of 2005 totaled $122 million, consisting of $113 million for the TDU and $9 million related to transition bonds.
The TDU's revenues continued to benefit from solid customer growth, with nearly 60,000 metered customers added since June 2005. Revenues also increased due to the competition transition charge (CTC) implemented in September of 2005, and favorable weather. More than offsetting the TDU's revenue growth was the impact related to the resolution of the 2001 UCOS order, which was recorded as a reduction to revenues of $32 million. Operation and maintenance expenses decreased primarily due to lower employee benefit expenses.
Operating income for the six months ended June 30, 2006, was $261 million, consisting of $197 million for the TDU, which includes the $32 million adverse impact related to the resolution of the 2001 UCOS order, and $64 million related to transition bonds. Operating income for the same period of 2005 totaled $202 million, consisting of $184 million for the TDU and $18 million related to transition bonds.
Natural Gas Distribution
The natural gas distribution segment reported an operating loss of $2 million for the second quarter of 2006 compared to operating income of $9 million for the same period of 2005. Higher revenues from rate increases and rate design changes, along with the addition of nearly 32,000 customers since June 2005, were partially offset by decreased customer usage. Operation and maintenance expenses increased primarily due to costs associated with staff reductions, increased bad debt expense due to high natural gas prices, and a write-off of certain rate case expenses.
Operating income for the six months ended June 30, 2006, was $101 million compared to $132 million for the same period of 2005. In addition to the factors noted above, operating income for the six months ended June 30, 2006, was adversely affected by unfavorable weather.
Competitive Natural Gas Sales and Services
The competitive natural gas sales and services segment reported operating income of $7 million for the second quarter of 2006 compared to $10 million for the same period of 2005. Operating income from higher sales to utilities and favorable basis differentials across the pipeline capacity that the company controls was more than offset by a charge of $17 million to reflect the 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. Therefore, operating income in the future periods, when these sales occur, is expected to be higher as a result of the inventory write-downs taken in the first two quarters of this year.
Operating income for the six months ended June 30, 2006, was $32 million compared to $26 million for the same period of 2005.
Pipelines and Field Services
The pipelines and field services segment reported operating income of $61 million for the second 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 along the Gulf Coast and Mid-Continent regions where they operate. Within this segment, the pipeline business achieved higher operating income ($40 million vs. $35 million) resulting from increased demand for transportation due to favorable basis differentials across the system and higher demand for ancillary services. The field services business achieved higher operating income ($21 million vs. $17 million) driven by increased throughput, greater demand for ancillary services and higher commodity prices. In addition, this business recorded equity income of $2 million in the second 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 six months ended June 30, 2006, was $134 million compared to $116 million for the same period of 2005. The pipeline business achieved operating income of $89 million for the six months ended June 30, 2006, compared to $83 million for the same period of 2005. The field services business achieved operating income of $45 million for the six months ended June 30, 2006, compared to $33 million for the same period of 2005. Equity income from the jointly-owned gas processing plant was $5 million for the six months ended June 30, 2006, compared to $3 million for the same period of 2005.
Other Operations
The company's other operations reported operating income of $3 million for the second quarter of 2006 compared to an operating loss of $7 million for the same period of 2005.
For the six months ended June 30, 2006, other operations reported an operating loss of $2 million compared to an operating loss of $14 million for the same period of 2005.
OTHER SECOND QUARTER 2006 EVENTS
SETTLEMENT OF ZENS AND ACES
During the second quarter of 2006, the company reached agreement with the IRS on a settlement regarding the ZENS and ACES issues and signed a Closing Agreement on July 17, 2006, for the tax years 1999 through 2029 with respect to the ZENS. The settlement and Closing Agreement are subject to approval by the Joint Committee on Taxation of the U.S. Congress. Under the terms of the settlement, the company will pay approximately $64 million in previously accrued taxes associated with the ACES and the ZENS and will reduce its future interest deductions associated with the ZENS.
As a result of the agreement, the company reduced its previously accrued tax and related interest reserves by $119 million in the second quarter of 2006, and will no longer accrue a quarterly reserve.
SETTLEMENT OF CENTERPOINT ENERGY HOUSTON ELECTRIC (CEHE) RATE CASE AND 2001 UCOS REMAND
On July 31, 2006, CEHE entered into a settlement agreement with parties to its pending rate case. Under the terms of the settlement, which must be approved by the PUC, CEHE's base rate revenues will be reduced by approximately $58 million per year. In addition, CEHE will increase its spending on energy efficiency programs by $10 million per year and will fund $10 million per year for programs providing financial assistance to qualified low-income customers in its service territory. The settlement includes a base rate freeze through June of 2010.
The settlement also resolved all issues related to the remand of the PUC's order in CEHE's 2001 UCOS case. Under the terms of the settlement, CEHE agreed to provide rate credits of approximately $8 million per year to retail and wholesale customers until a total of $32 million has been credited. This impact was recorded in the second quarter of 2006.
DIVIDEND DECLARATION
On July 27, 2006, CenterPoint Energy's board of directors declared a regular quarterly cash dividend of $0.15 per share of common stock payable on September 8, 2006, to shareholders of record as of the close of business on August 16, 2006.
OUTLOOK FOR 2006
CenterPoint Energy continues to expect diluted earnings per share for 2006 to be in the range of $0.90 to $1.00. This guidance includes an estimated impact of the settlement of CEHE's rate case but excludes the one-time impact of $0.38 per diluted share related to the company's settlement regarding the tax treatment of the ZENS and ACES and the one-time impact of $0.07 per diluted share related to the settlement of the 2001 UCOS order. This guidance takes into consideration various economic and operational assumptions related to the business segments in which the company operates. In particular, 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 potential changes in accounting standards, any impact from acquisitions or divestitures, or the outcomes of pending legal proceedings related to CEHE's true-up appeal.
WEBCAST OF EARNINGS CONFERENCE CALL
CenterPoint Energy's management will host an earnings conference call on Thursday, August 3, 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 http://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 $16 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 http://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 and its subsidiaries' Form 10-Ks for the period ended December 31, 2005, Form 10-Qs for the periods ended March 31, 2006, and June 30, 2006, and other filings with the Securities and Exchange Commission.
CenterPoint Energy, Inc. and Subsidiaries
Statements of Consolidated Income
(Millions of Dollars)
(Unaudited)
Quarter Ended Six Months Ended
June 30, June 30,
----------------------------------
2005 2006 2005 2006
------- ------- ------- -------
Revenues:
Electric Transmission & Distribution $414 $456 $759 $841
Natural Gas Distribution 541 549 1,870 2,029
Competitive Natural Gas Sales and
Services 845 750 1,770 1,913
Pipelines and Field Services 125 135 246 260
Other Operations 4 5 11 9
Eliminations (87) (52) (219) (132)
Total 1,842 1,843 4,437 4,920
Expenses:
Natural gas 1,103 1,035 2,884 3,228
Operation and maintenance 325 340 638 671
Depreciation and amortization 136 153 266 293
Taxes other than income taxes 92 95 187 202
Total 1,656 1,623 3,975 4,394
Operating Income 186 220 462 526
Other Income (Expense):
Gain (Loss) on Time Warner investment (18) 11 (59) (3)
Gain (Loss) on indexed debt
securities 24 (11) 63 (1)
Interest and other finance charges (180) (118) (353) (233)
Interest on transition bonds (9) (33) (18) (66)
Return on true-up balance 35 --- 69 ---
Other - net 7 9 11 15
Total (141) (142) (287) (288)
Income from Continuing Operations
Before Income Taxes and
Extraordinary Item 45 78 175 238
Income Tax (Expense) Benefit (18) 116 (81) 44
Income from Continuing Operations
Before Extraordinary Item 27 194 94 282
Discontinued Operations:
Income (Loss) from Texas Genco, net
of tax (3) --- 11 ---
Loss on Disposal of Texas Genco, net
of tax --- --- (14) ---
Total (3) --- (3) ---
Income Before Extraordinary Item 24 194 91 282
Extraordinary Item, net of tax 30 --- 30 ---
Net Income $54 $194 $121 $282
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 Six Months Ended
June 30, June 30,
-----------------------------------
2005 2006 2005 2006
-------- ------- ------- -------
Basic Earnings Per Common Share:
Income from Continuing Operations $0.09 $0.62 $0.30 $0.91
Loss from Discontinued Operations (0.01) --- (0.01) ---
Extraordinary item, net of tax 0.10 --- 0.10 ---
Net Income $0.18 $0.62 $0.39 $0.91
Diluted Earnings Per Common Share:
Income from Continuing Operations $0.09 $0.61 $0.28 $0.89
Loss from Discontinued Operations (0.01) --- (0.01) ---
Extraordinary item, net of tax 0.08 --- 0.08 ---
Net Income $0.16 $0.61 $0.35 $0.89
Dividends Declared per Common Share $0.07 $0.15 $0.27 $0.30
Weighted Average Common Shares
Outstanding (000):
- Basic 309,098 311,440 308,786 311,145
- Diluted 361,436 316,816 361,076 317,744
Operating Income (Loss) by Segment
Electric Transmission & Distribution:
Transmission & Distribution
Operations $113 $119 $184 $197
Transition Bond Companies 9 32 18 64
Total Electric Transmission &
Distribution 122 151 202 261
Natural Gas Distribution 9 (2) 132 101
Competitive Natural Gas Sales and
Services 10 7 26 32
Pipelines and Field Services 52 61 116 134
Other Operations (7) 3 (14) (2)
Total $186 $220 $462 $526
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 % Diff
June 30, Fav/
------------------------
2005 2006 (Unfav)
----------- --------- -------
Results of Operations:
Revenues:
Electric transmission and distribution
utility $388 $386 (1%)
Transition bond companies 26 70 169%
Total 414 456 10%
Expenses:
Operation and maintenance 153 147 4%
Depreciation and amortization 64 61 5%
Taxes other than income taxes 58 59 (2%)
Transition bond companies 17 38 (124%)
Total 292 305 (4%)
Operating Income $122 $151 24%
Operating Income - Electric
transmission and distribution utility 113 119 5%
Operating Income - Transition bond
companies 9 32 256%
Total Segment Operating Income $122 $151 24%
Electric Transmission & Distribution
Operating Data:
Actual MWH Delivered
Residential 6,593,895 6,807,984 3%
Total 18,956,313 20,422,341 8%
Weather (average for service area):
Percentage of normal:
Cooling degree days 103% 111% 8%
Heating degree days 47% --- ---
Average number of metered customers:
Residential 1,675,573 1,703,130 2%
Total 1,904,090 1,965,180 3%
Electric Transmission & Distribution
------------------------------------
Six Months Ended % Diff
June 30, Fav/
------------------------
2005 2006 (Unfav)
----------- --------- -------
Results of Operations:
Revenues:
Electric transmission and distribution
utility $711 $717 1%
Transition bond companies 48 124 158%
Total 759 841 11%
Expenses:
Operation and maintenance 291 281 3%
Depreciation and amortization 128 124 3%
Taxes other than income taxes 108 115 (6%)
Transition bond companies 30 60 (100%)
Total 557 580 (4%)
Operating Income $202 $261 29%
Operating Income - Electric
transmission and distribution utility 184 197 7%
Operating Income - Transition bond
companies 18 64 256%
Total Segment Operating Income $202 $261 29%
Electric Transmission & Distribution
Operating Data:
Actual MWH Delivered
Residential 10,735,559 10,794,374 1%
Total 34,782,627 36,409,221 5%
Weather (average for service area):
Percentage of normal:
Cooling degree days 105% 114% 9%
Heating degree days 76% 60% (16%)
Average number of metered customers:
Residential 1,668,447 1,723,983 3%
Total 1,895,556 1,958,005 3%
Natural Gas Distribution
------------------------------------
Quarter Ended % Diff
June 30, Fav/
------------------------
2005 2006 (Unfav)
----------- --------- -------
Results of Operations:
Revenues $541 $549 1%
Expenses:
Natural gas 341 343 (1%)
Operation and maintenance 126 142 (13%)
Depreciation and amortization 39 37 5%
Taxes other than income taxes 26 29 (12%)
Total 532 551 (4%)
Operating Income (Loss) $9 $(2) (122%)
Natural Gas Distribution Operating Data:
Throughput data in BCF
Residential 21 17 (19%)
Commercial and Industrial 43 44 2%
Total Throughput 64 61 (5%)
Weather (average for service area)
Percentage of normal:
Heating degree days 86% 60% (26%)
Average number of customers:
Residential 2,833,773 2,860,802 1%
Commercial and Industrial 246,032 253,725 3%
Total 3,079,805 3,114,527 1%
Natural Gas Distribution
------------------------------------
Six Months Ended % Diff
June 30, Fav/
------------------------
2005 2006 (Unfav)
----------- --------- -------
Results of Operations:
Revenues $1,870 $2,029 9%
Expenses:
Natural gas 1,338 1,489 (11%)
Operation and maintenance 261 292 (12%)
Depreciation and amortization 76 75 1%
Taxes other than income taxes 63 72 (14%)
Total 1,738 1,928 (11%)
Operating Income (Loss) $132 $101 (23%)
Natural Gas Distribution Operating Data:
Throughput data in BCF
Residential 98 84 (14%)
Commercial and Industrial 120 116 (3%)
Total Throughput 218 200 (8%)
Weather (average for service area)
Percentage of normal:
Heating degree days 91% 81% (10%)
Average number of customers:
Residential 2,842,645 2,872,978 1%
Commercial and Industrial 247,429 253,505 2%
Total 3,090,074 3,126,483 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 Six Months Ended
June 30, % Diff June 30, % Diff
-------------- Fav/ ---------------- Fav/
2005 2006 (Unfav) 2005 2006 (Unfav)
------- ------ ------- ------- -------- -------
Results of Operations:
Revenues $845 $750 (11%) $1,770 $1,913 8%
Expenses:
Natural gas 828 735 11% 1,730 1,864 (8%)
Operation and
maintenance 7 7 --- 12 15 (25%)
Depreciation and
amortization --- 1 --- 1 1 ---
Taxes other than
income taxes --- --- --- 1 1 ---
Total 835 743 11% 1,744 1,881 (8%)
Operating Income $10 $7 (30%) $26 $32 23%
Competitive Natural
Gas Sales and Services
Operating Data:
Throughput data in BCF
Wholesale -
third parties 72 72 --- 154 161 5%
Wholesale -
affiliates 21 8 (62%) 35 19 (46%)
Retail 34 31 (9%) 81 79 (2%)
Pipeline 12 10 (17%) 31 20 (35%)
Total Throughput 139 121 (13%) 301 279 (7%)
Average number of
customers:
Wholesale 135 132 (2%) 130 138 6%
Retail 6,237 6,468 4% 6,207 6,501 5%
Pipeline 145 136 (6%) 151 138 (9%)
Total 6,517 6,736 3% 6,488 6,777 4%
Pipelines and Field Services
-----------------------------------------------
Quarter Ended Six Months Ended
June 30, % Diff June 30, % Diff
-------------- Fav/ ---------------- Fav/
2005 2006 (Unfav) 2005 2006 (Unfav)
------- ------ ------- ------- -------- -------
Results of Operations:
Revenues $125 $135 8% $246 $260 6%
Expenses:
Natural gas 18 7 61% 25 3 88%
Operation and
maintenance 40 50 (25%) 74 89 (20%)
Depreciation and
amortization 11 12 (9%) 22 24 (9%)
Taxes other than
income taxes 4 5 (25%) 9 10 (11%)
Total 73 74 (1%) 130 126 3%
Operating Income $52 $61 17% $116 $134 16%
Operating Income -
Pipeline business 35 40 14% 83 89 7%
Operating Income - Field
Services business 17 21 24% 33 45 36%
Total Segment
Operating Income $52 $61 17% $116 $134 16%
Pipelines and Field
Services Operating Data:
Throughput data in BCF
Natural Gas Sales 3 2 (33%) 4 2 (50%)
Transportation 230 240 4% 501 514 3%
Gathering 87 94 8% 170 182 7%
Elimination (2) (1) 50% (3) (1) 67%
Total Throughput 318 335 5% 672 697 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 Six Months Ended
June 30, % Diff June 30, % Diff
-------------- Fav/ ---------------- Fav/
2005 2006 (Unfav) 2005 2006 (Unfav)
------- ------ ------- ------- -------- -------
Results of Operations:
Revenues $4 $5 25% $11 $9 (18%)
Expenses 11 2 82% 25 11 56%
Operating Income (Loss) $(7) $3 143% $(14) $(2) 86%
Capital Expenditures by Segment
(Millions of Dollars)
(Unaudited)
--------------- ------------------
Quarter Ended Six Months Ended
June 30, June 30,
--------------- ------------------
2005 2006 2005 2006
------ ------ -------- --------
Capital Expenditures by Segment
Electric Transmission & Distribution $87 $111 $142 $190
Natural Gas Distribution 56 45 96 85
Competitive Natural Gas Sales and
Services --- 4 --- 10
Pipelines and Field Services 31 54 53 84
Other Operations 5 4 10 14
Total $179 $218 $301 $383
Interest Expense Detail
(Millions of Dollars)
(Unaudited)
--------------- ------------------
Quarter Ended Six Months Ended
June 30, June 30,
--------------- ------------------
2005 2006 2005 2006
------ ------ -------- --------
Interest Expense Detail
Amortization of Deferred Financing
Cost $19 $14 $39 $28
Capitalization of Interest Cost (1) (2) (2) (3)
Transition Bond Interest Expense 9 32 18 64
Other Interest Expense 162 107 316 210
Total Interest Expense $189 $151 $371 $299
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, June 30,
----------------------------
2005 2006
---------- ---------
ASSETS
Current Assets:
Cash and cash equivalents $74 $397
Other current assets 2,817 2,000
Total current assets 2,891 2,397
Property, Plant and Equipment, net 8,492 8,675
Other Assets:
Goodwill 1,709 1,709
Regulatory assets 2,955 2,890
Other non-current assets 1,069 1,038
Total other assets 5,733 5,637
Total Assets $17,116 $16,709
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Current portion of transition bond
long-term debt $73 $126
Current portion of other long-term
debt 266 519
Other current liabilities 2,675 1,931
Total current liabilities 3,014 2,576
Other Liabilities:
Accumulated deferred income taxes,
net and investment tax credit 2,520 2,442
Regulatory liabilities 728 822
Other non-current liabilities 990 810
Total other liabilities 4,238 4,074
Long-term Debt:
Transition bond 2,407 2,335
Other 6,161 6,220
Total long-term debt 8,568 8,555
Shareholders' Equity 1,296 1,504
Total Liabilities and Shareholders' Equity $17,116 $16,709
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)
Six Months Ended June 30,
-------------------------
2005 2006
------ ------
Cash Flows from Operating Activities:
Net income $121 $282
Discontinued operations, net of
tax 3 ---
Extraordinary item, net of tax (30) ---
Income from continuing operations 94 282
Adjustments to reconcile income
from continuing operations to net
cash provided by operating
activities:
Depreciation and amortization 306 321
Deferred income taxes and
investment tax credit 44 (109)
Tax and interest reserves
reductions related to ZENS and
ACES --- (119)
Changes in net regulatory assets
and liabilities (133) 54
Changes in other assets and
liabilities (262) 73
Other, net 5 15
Net Cash Provided by Operating
Activities of Continuing Operations 54 517
Net Cash Used in Operating Activities
of Discontinued Operations (38) ---
Net Cash Provided by Operating
Activities 16 517
Net Cash Provided by (Used in)
Investing Activities 412 (396)
Net Cash Provided by (Used in)
Financing Activities (185) 202
Net Increase in Cash and Cash
Equivalents 243 323
Cash and Cash Equivalents at
Beginning of Period 165 74
Cash and Cash Equivalents at End of
Period $408 $397
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.
SOURCE CenterPoint Energy, Inc.
media, Leticia Lowe, +1-713-207-7702, or investors, Marianne Paulsen, +1-713-207-6500, both of CenterPoint Energy, Inc.
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