News Release

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Nov 03, 2017

CenterPoint Energy reports third quarter 2017 earnings of $0.39 per diluted share; $0.38 per diluted share on a guidance basis

- CenterPoint Energy anticipates achieving at or near the high end of the $1.25 - $1.33 guidance range for 2017
- Company continues to target upper end of 4-6% year-over-year earnings growth range for 2018

HOUSTON, Nov. 3, 2017 /PRNewswire/ -- CenterPoint Energy, Inc. (NYSE: CNP) today reported net income of $169 million, or $0.39 per diluted share, for the third quarter of 2017, compared with net income of $179 million, or $0.41 per diluted share for the same period of the prior year. On a guidance basis, third quarter 2017 earnings were $0.38 per diluted share, consisting of $0.28 from utility operations and $0.10 from midstream investments. Third quarter 2016 earnings on a guidance basis were $0.41 per diluted share, consisting of $0.31 from utility operations and $0.10 from midstream investments. 

CenterPoint Energy logo. (PRNewsFoto)

Operating income for the third quarter of 2017 was $279 million, compared with $284 million in the third quarter of the prior year. Equity income from midstream investments was $68 million for the third quarter of 2017, compared with $73 million for the third quarter of the prior year.

"We had a solid third quarter, putting us on track to deliver at or near the high end of our full year guidance range," said Scott M. Prochazka, president and chief executive officer of CenterPoint Energy. "Our ongoing focus on reliability and resilience enabled our system to perform well in the face of Hurricane Harvey."

Business Segments

Electric Transmission & Distribution

The electric transmission & distribution segment reported operating income of $247 million for the third quarter of 2017, consisting of $229 million from the regulated electric transmission & distribution utility operations (TDU) and $18 million related to securitization bonds. Operating income for the third quarter of 2016 was $257 million, consisting of $234 million from the TDU and $23 million related to securitization bonds.

Operating income for the TDU benefited primarily from rate relief and customer growth. These benefits were more than offset by lower usage largely due to a return to more normal weather, lower equity return and lower miscellaneous revenues, including right of way. 

Natural Gas Distribution

The natural gas distribution segment reported operating income of $19 million for the third quarter of 2017, compared with $22 million for the same period of 2016. Operating income benefited primarily from rate relief and customer growth.  These benefits were more than offset by higher depreciation and amortization expense, lower usage primarily due to the timing of a decoupling normalization adjustment and higher operations and maintenance expenses. 

Energy Services

The energy services segment reported operating income of $7 million for the third quarter of 2017, which included a mark-to-market gain of $2 million. In comparison, operating income for the same period in 2016 was $5 million, which included a mark-to-market loss of $2 million.  Excluding mark-to-market adjustments, operating income was $5 million for the third quarter of 2017 compared with $7 million for the same period in 2016.  The $2 million decrease in operating income was primarily due to expenses related to the acquisition and integration of Atmos Energy Marketing.

Midstream Investments

The midstream investments segment reported $68 million of equity income for the third quarter of 2017, compared with $73 million in the third quarter of the prior year. 

Earnings Outlook

On a consolidated basis, CenterPoint Energy anticipates earnings at or near the high end of its 2017 guidance range of $1.25 - $1.33 per diluted share. 

The utility operations guidance range considers performance to date and certain significant variables that may impact earnings, such as weather, regulatory and judicial proceedings, throughput, commodity prices, effective tax rates, and financing activities.

In providing this guidance, the company uses a non-GAAP measure of adjusted diluted earnings per share that does not consider other potential impacts, such as changes in accounting standards or unusual items, earnings or losses from the change in the value of the ZENS securities and the related stocks, or the timing effects of mark-to-market accounting in the company's Energy Services business. 

In providing guidance for midstream investments, the company assumes ownership of 54.1 percent of the common units representing limited partner interests in Enable Midstream and includes the amortization of CenterPoint Energy's basis differential in Enable Midstream. CenterPoint Energy's guidance takes into account such factors as Enable Midstream's most recent public outlook for 2017 dated Nov. 1, 2017, and effective tax rates. The company does not include other potential impacts, such as any changes in accounting standards or Enable Midstream's unusual items. 

 

 Quarter Ended 

 

 September 30, 2017 

 

 September 30, 2016 

 

 Net Income
(in millions) 

 

 Diluted EPS 

 

 Net Income
(in millions) 

 

 Diluted EPS 

               

Consolidated net income and diluted EPS as reported

$          169

 

$          0.39

 

$          179

 

$             0.41

Midstream Investments

(42)

 

(0.10)

 

(46)

 

(0.10)

Utility Operations (1) 

127

 

0.29

 

133

 

0.31

               

Timing effects impacting CES(2):

             

Mark-to-market (gains) losses (net of taxes of $1 and $1)(3)

(1)

 

-

 

1

 

-

               

ZENS-related mark-to-market (gains) losses:

             

Marketable securities (net of taxes of $13 and $27) (3)(4)

(24)

 

(0.06)

 

(50)

 

(0.11)

Indexed debt securities (net of taxes of $13 and $25) (3)

23

 

0.05

 

47

 

0.11

Utility operations earnings on an adjusted guidance basis

$          125

 

$          0.28

 

$          131

 

$             0.31

               

Adjusted net income and adjusted diluted EPS used in providing earnings guidance:

             

Utility Operations on a guidance basis

$          125

 

$          0.28

 

$          131

 

$             0.31

Midstream Investments

42

 

0.10

 

46

 

0.10

Consolidated on a guidance basis

$          167

 

$          0.38

 

$          177

 

$             0.41

               

(1)  CenterPoint earnings excluding Midstream Investments

(2)  Energy Services segment

(3)  Taxes are computed based on the impact removing such item would have on tax expense

(4)  Time Warner Inc., Charter Communications, Inc. and Time Inc.

Filing of Form 10-Q for CenterPoint Energy, Inc.

Today, CenterPoint Energy, Inc. filed with the Securities and Exchange Commission (SEC) its Quarterly Report on Form 10-Q for the period ended Sept. 30, 2017. A copy of that report is available on the company's website, under the Investors section. Other filings the company makes with the SEC and certain documents relating to its corporate governance can also be found under the Investors section. 

Webcast of Earnings Conference Call

CenterPoint Energy's management will host an earnings conference call on Friday, Nov. 3, 2017, at 10:00 a.m. Central time/11:00 a.m. Eastern time. Interested parties may listen to a live audio broadcast of the conference call on the company's website under the Investors section. A replay of the call can be accessed approximately two hours after the completion of the call and will be archived on the website 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 and energy services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. The company also owns 54.1 percent of the common units representing limited partner interests in Enable Midstream Partners, a publicly traded master limited partnership it jointly controls with OGE Energy Corp., which owns, operates and develops natural gas and crude oil infrastructure assets. With more than 7,700 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, please visit www.CenterPointEnergy.com.

This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. You are cautioned not to place undue reliance on any forward-looking statements. Actual events and results may differ materially from those expressed or implied by these forward-looking statements. Any statements in this news release regarding future earnings, and future financial performance and results of operations, including, but not limited to earnings guidance, targeted dividend growth rate and any other statements that are not historical facts are forward-looking statements. Each forward-looking statement contained in this news release speaks only as of the date of this release. Factors that could affect actual results include (1) the performance of Enable Midstream Partners, LP (Enable), the amount of cash distributions CenterPoint Energy receives from Enable, Enable's ability to redeem the Series A Preferred Units in certain circumstances and the value of CenterPoint Energy's interest in Enable, and factors that may have a material impact on such performance, cash distributions and value, including factors such as: (A) competitive conditions in the midstream industry, and actions taken by Enable's customers and competitors, including the extent and timing of the entry of additional competition in the markets served by Enable; (B) the timing and extent of changes in the supply of natural gas and associated commodity prices, particularly prices of natural gas and natural gas liquids (NGLs), the competitive effects of the available pipeline capacity in the regions served by Enable, and the effects of geographic and seasonal commodity price differentials, including the effects of these circumstances on re-contracting available capacity on Enable's interstate pipelines; (C) the demand for crude oil, natural gas, NGLs and transportation and storage services; (D) environmental and other governmental regulations, including the availability of drilling permits and the regulation of hydraulic fracturing; (E) recording of non-cash goodwill, long-lived asset or other than temporary impairment charges by or related to Enable; (F) changes in tax status; (G) access to debt and equity capital; and (H) the availability and prices of raw materials and services for current and future construction projects; (2) industrial, commercial and residential growth in CenterPoint Energy's service territories and changes in market demand, including the effects of energy efficiency measures and demographic patterns; (3) timely and appropriate rate actions that allow recovery of costs and a reasonable return on investment; (4) future economic conditions in regional and national markets and their effect on sales, prices and costs; (5) weather variations and other natural phenomena, including the impact of severe weather events on operations and capital; (6) state and federal legislative and regulatory actions or developments affecting various aspects of CenterPoint Energy's and Enable's businesses, including, among others, energy deregulation or re-regulation, pipeline integrity and safety and changes in regulation and legislation pertaining to trade, health care, finance and actions regarding the rates charged by our regulated businesses; (7) tax reform and legislation; (8) CenterPoint Energy's ability to mitigate weather impacts through normalization or rate mechanisms, and the effectiveness of such mechanisms; (9) the timing and extent of changes in commodity prices, particularly natural gas, and the effects of geographic and seasonal commodity price differentials; (10) problems with regulatory approval, construction, implementation of necessary technology or other issues with respect to major capital projects that result in delays or in cost overruns that cannot be recouped in rates; (11) local, state and federal legislative and regulatory actions or developments relating to the environment, including those related to global climate change; (12) the impact of unplanned facility outages; (13) any direct or indirect effects on CenterPoint Energy's facilities, operations and financial condition resulting from terrorism, cyber-attacks, data security breaches or other attempts to disrupt CenterPoint Energy's businesses or the businesses of third parties, or other catastrophic events such as fires, earthquakes, explosions, leaks, floods, droughts, hurricanes, pandemic health events or other occurrences; (14) CenterPoint Energy's ability to invest planned capital and the timely recovery of CenterPoint Energy's investment in capital; (15) CenterPoint Energy's ability to control operation and maintenance costs; (16) actions by credit rating agencies; (17) the sufficiency of CenterPoint Energy's insurance coverage, including availability, cost, coverage and terms; (18) the investment performance of CenterPoint Energy's pension and postretirement benefit plans; (19) commercial bank and financial market conditions, CenterPoint Energy's access to capital, the cost of such capital, and the results of CenterPoint Energy's financing and refinancing efforts, including availability of funds in the debt capital markets; (20) changes in interest rates or rates of inflation; (21) inability of various counterparties to meet their obligations to CenterPoint Energy; (22) non-payment for CenterPoint Energy's services due to financial distress of its customers; (23) the extent and effectiveness of CenterPoint Energy's risk management and hedging activities, including, but not limited to, its financial hedges and weather hedges; (24) timely and appropriate regulatory actions allowing securitization or other recovery of costs associated with Hurricane Harvey and any future hurricanes or natural disasters; (25) CenterPoint Energy's or Enable's potential business strategies and strategic initiatives, including restructurings, joint ventures and acquisitions or dispositions of assets or businesses (including a reduction of CenterPoint Energy's interests in Enable, whether through its election to sell the common units it owns in the public equity markets or otherwise, subject to certain limitations), which CenterPoint Energy cannot assure will be completed or will have the anticipated benefits to it or Enable; (26) acquisition and merger activities involving CenterPoint Energy or its competitors; (27) CenterPoint Energy's or Enable's ability to recruit, effectively transition and retain management and key employees and maintain good labor relations; (28) the ability of GenOn Energy, Inc. (formerly known as RRI Energy, Inc., Reliant Energy and RRI), a wholly-owned subsidiary of NRG Energy, Inc. (NRG), and its subsidiaries, currently the subject of bankruptcy proceedings, to satisfy their obligations to CenterPoint Energy, including indemnity obligations; (29) the outcome of litigation; (30) the ability of retail electric providers (REPs), including REP affiliates of NRG and Vistra Energy Corp., formerly known as TCEH Corp., to satisfy their obligations to CenterPoint Energy and its subsidiaries; (31) changes in technology, particularly with respect to efficient battery storage or the emergence or growth of new, developing or alternative sources of generation; (32) the timing and outcome of any audits, disputes and other proceedings related to taxes; (33) the effective tax rates; (34) the effect of changes in and application of accounting standards and pronouncements; and (35) other factors discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2016, as well as in CenterPoint Energy's Quarterly Report on Form 10-Q for the quarter ended March 31, 2017, June 30, 2017 and September 30, 2017 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

Use of Non-GAAP Financial Measures by CenterPoint Energy in Providing Guidance

In addition to presenting its financial results in accordance with generally accepted accounting principles (GAAP), including presentation of net income and diluted earnings per share, CenterPoint Energy also provides guidance based on adjusted net income and adjusted diluted earnings per share, which are non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's historical or future financial performance that excludes or includes amounts that are not normally excluded or included in the most directly comparable GAAP financial measure. CenterPoint Energy's adjusted net income and adjusted diluted earnings per share calculation excludes from net income and diluted earnings per share, respectively, the impact of ZENS and related securities and mark-to-market gains or losses resulting from the company's Energy Services business.  CenterPoint Energy is unable to present a quantitative reconciliation of forward looking adjusted net income and adjusted diluted earnings per share because changes in the value of ZENS and related securities and mark-to-market gains or losses resulting from the company's Energy Services business are not estimable.

Management evaluates the company's financial performance in part based on adjusted net income and adjusted diluted earnings per share.  We believe that presenting these non-GAAP financial measures enhances an investor's understanding of CenterPoint Energy's overall financial performance by providing them with an additional meaningful and relevant comparison of current and anticipated future results across periods.  The adjustments made in these non-GAAP financial measures exclude items that Management believes does not most accurately reflect the company's fundamental business performance.  These excluded items are reflected in the reconciliation tables of this news release, where applicable. CenterPoint Energy's adjusted net income and adjusted diluted earnings per share non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, net income and diluted earnings per share, which respectively are the most directly comparable GAAP financial measures.  These non-GAAP financial measures also may be different than non-GAAP financial measures used by other companies.

 

CenterPoint Energy, Inc. and Subsidiaries

 

Statements of Consolidated Income

 

(Millions of Dollars)

 

(Unaudited)

 
                   
                   
   

Quarter Ended

 

Nine Months Ended

 
   

September 30,

 

September 30,

 
   

2017

 

2016

 

2017

 

2016

 
                   
                   

Revenues:

                 

Utility revenues

 

$ 1,233

 

$ 1,278

 

$ 4,001

 

$ 4,003

 

Non-utility revenues

 

865

 

611

 

2,975

 

1,444

 

Total

 

2,098

 

1,889

 

6,976

 

5,447

 
                   

Expenses:

                 

Utility natural gas

 

106

 

99

 

706

 

663

 

Non-utility natural gas

 

832

 

584

 

2,843

 

1,368

 

Operation and maintenance

 

519

 

505

 

1,614

 

1,539

 

Depreciation and amortization

 

269

 

324

 

749

 

873

 

Taxes other than income taxes

 

93

 

93

 

288

 

288

 

Total

 

1,819

 

1,605

 

6,200

 

4,731

 

Operating Income

 

279

 

284

 

776

 

716

 
                   

Other Income (Expense):

                 

Gain on marketable securities

 

37

 

77

 

104

 

187

 

Loss on indexed debt securities

 

(36)

 

(72)

 

(59)

 

(258)

 

Interest and other finance charges

 

(80)

 

(83)

 

(235)

 

(256)

 

Interest on securitization bonds

 

(18)

 

(23)

 

(58)

 

(70)

 

Equity in earnings of unconsolidated affiliate

 

68

 

73

 

199

 

164

 

Other - net

 

17

 

20

 

50

 

41

 

Total

 

(12)

 

(8)

 

1

 

(192)

 
                   

Income Before Income Taxes 

 

267

 

276

 

777

 

524

 
                   

Income Tax Expense

 

98

 

97

 

281

 

193

 
                   

Net Income

 

$    169

 

$    179

 

$    496

 

$    331

 
                   
                   

Reference is made to the Notes to the Consolidated Financial Statements

contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.

 

CenterPoint Energy, Inc. and Subsidiaries

Selected Data From Statements of Consolidated Income

(Millions of Dollars, Except Share and Per Share Amounts)

(Unaudited)

                   
                   
   

Quarter Ended

 

Nine Months Ended

 
   

September 30,

 

September 30,

 
   

2017

 

2016

 

2017

 

2016

 
                   
                   

Basic Earnings Per Common Share

 

$      0.39

 

$      0.42

 

$     1.15

 

$      0.77

 
                   

Diluted Earnings Per Common Share 

 

$      0.39

 

$      0.41

 

$     1.14

 

$      0.76

 
                   

Dividends Declared per Common Share

 

$  0.2675

 

$  0.2575

 

0.8025

 

$  0.7725

 
                   

Weighted Average Common Shares Outstanding (000):

                 

- Basic

 

431,026

 

430,682

 

430,939

 

430,581

 

- Diluted

 

434,086

 

433,396

 

433,999

 

433,295

 
                   
                   

Operating Income by Segment 

                 
                   

Electric Transmission & Distribution:

                 

TDU

 

$       229

 

$       234

 

$      431

 

$       428

 

Bond Companies

 

18

 

23

 

58

 

70

 

Total Electric Transmission & Distribution

 

247

 

257

 

489

 

498

 

Natural Gas Distribution

 

19

 

22

 

220

 

202

 

Energy Services

 

7

 

5

 

58

 

11

 

Other Operations

 

6

 

-

 

9

 

5

 
                   

Total

 

$       279

 

$       284

 

$      776

 

$       716

 
                   
                   

Reference is made to the Notes to the Consolidated Financial Statements

contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.

 

CenterPoint Energy, Inc. and Subsidiaries

Results of Operations by Segment

(Millions of Dollars)

(Unaudited)

                         
                         
   

Electric Transmission & Distribution

   

Quarter Ended

     

Nine Months Ended

   
   

September 30,

 

% Diff

 

September 30,

 

% Diff

   

2017

 

2016

 

Fav/(Unfav)

 

2017

 

2016

 

Fav/(Unfav)

Results of Operations:

                       

Revenues:

                       

TDU

 

$             729

 

$             725

 

1%

 

$          1,944

 

$          1,881

 

3%

Bond Companies

 

114

 

183

 

(38%)

 

290

 

450

 

(36%)

Total

 

843

 

908

 

(7%)

 

2,234

 

2,331

 

(4%)

                         

Expenses:

                       

Operation and maintenance, excluding Bond Companies

 

344

 

336

 

(2%)

 

1,040

 

995

 

(5%)

Depreciation and amortization, excluding Bond Companies

 

97

 

96

 

(1%)

 

296

 

285

 

(4%)

Taxes other than income taxes

 

59

 

59

 

-

 

177

 

173

 

(2%)

Bond Companies

 

96

 

160

 

40%

 

232

 

380

 

39%

Total

 

596

 

651

 

8%

 

1,745

 

1,833

 

5%

Operating Income

 

$             247

 

$             257

 

(4%)

 

$             489

 

$             498

 

(2%)

                         

Operating Income:

                       

TDU

 

$             229

 

$             234

 

(2%)

 

$             431

 

$             428

 

1%

Bond Companies

 

18

 

23

 

(22%)

 

58

 

70

 

(17%)

Total Segment Operating Income

 

$             247

 

$             257

 

(4%)

 

$             489

 

$             498

 

(2%)

                         

Electric Transmission & Distribution Operating Data:

               

Actual MWH Delivered

                       

Residential

 

10,419,309

 

10,775,739

 

(3%)

 

23,511,716

 

23,426,712

 

-

Total

 

26,452,650

 

26,517,635

 

-

 

67,956,180

 

66,838,583

 

2%

                         

Weather (average for service area):

                       

Percentage of 10-year average:

                       

Cooling degree days

 

101%

 

107%

 

(6%)

 

106%

 

101%

 

5%

Heating degree days

 

0%

 

0%

 

0%

 

42%

 

85%

 

(43%)

                         

Number of metered customers - end of period:

                       

Residential

 

2,156,624

 

2,116,312

 

2%

 

2,156,624

 

2,116,312

 

2%

Total

 

2,435,558

 

2,389,014

 

2%

 

2,435,558

 

2,389,014

 

2%

                         
                         
   

Natural Gas Distribution

   

Quarter Ended 

     

Nine Months Ended

   
   

September 30,

 

% Diff

 

September 30,

 

% Diff

   

2017

 

2016

 

Fav/(Unfav)

 

2017

 

2016

 

Fav/(Unfav)

Results of Operations:

                       

Revenues

 

$             398

 

$             377

 

6%

 

$          1,791

 

$          1,693

 

6%

Natural gas

 

117

 

104

 

(13%)

 

742

 

679

 

(9%)

   Gross Margin

 

281

 

273

 

3%

 

1,049

 

1,014

 

3%

Expenses:

                       

Operation and maintenance

 

163

 

159

 

(3%)

 

531

 

526

 

(1%)

Depreciation and amortization

 

66

 

61

 

(8%)

 

194

 

180

 

(8%)

Taxes other than income taxes

 

33

 

31

 

(6%)

 

104

 

106

 

2%

Total

 

262

 

251

 

(4%)

 

829

 

812

 

(2%)

Operating Income

 

$               19

 

$               22

 

(14%)

 

$             220

 

$             202

 

9%

                         

Natural Gas Distribution Operating Data:

                       

Throughput data in BCF

                       

Residential

 

13

 

12

 

8%

 

94

 

105

 

(10%)

Commercial and Industrial

 

50

 

51

 

(2%)

 

189

 

193

 

(2%)

Total Throughput

 

63

 

63

 

-

 

283

 

298

 

(5%)

                         

Weather (average for service area)

                       

Percentage of 10-year average:

                       

Heating degree days

 

60%

 

21%

 

39%

 

73%

 

86%

 

(13%)

                         

Number of customers - end of period:

                       

Residential

 

3,179,284

 

3,143,357

 

1%

 

3,179,284

 

3,143,357

 

1%

Commercial and Industrial

 

253,041

 

251,043

 

1%

 

253,041

 

251,043

 

1%

Total

 

3,432,325

 

3,394,400

 

1%

 

3,432,325

 

3,394,400

 

1%

                         
                         
                         

Reference is made to the Notes to the Consolidated Financial Statements

contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.

 

CenterPoint Energy, Inc. and Subsidiaries

 

Results of Operations by Segment

 

(Millions of Dollars)

 

(Unaudited)

 
                           
                           
   

Energy Services

 
   

Quarter Ended 

     

Nine Months Ended

     
   

September 30,

 

% Diff

 

September 30,

 

% Diff

 
   

2017

 

2016

 

Fav/(Unfav)

 

2017

 

2016

 

Fav/(Unfav)

 

Results of Operations:

                         

Revenues

 

$     871

 

$     614

 

42%

 

$  2,998

 

$  1,450

 

107%

 

Natural gas

 

839

 

591

 

(42%)

 

2,865

 

1,389

 

(106%)

 

   Gross Margin

 

32

 

23

 

39%

 

133

 

61

 

118%

 

Expenses:

                         

Operation and maintenance

 

22

 

16

 

(38%)

 

65

 

43

 

(51%)

 

Depreciation and amortization

 

3

 

1

 

(200%)

 

9

 

5

 

(80%)

 

Taxes other than income taxes

 

-

 

1

 

-

 

1

 

2

 

50%

 

Total

 

25

 

18

 

(39%)

 

75

 

50

 

(50%)

 

Operating Income

 

$         7

 

$         5

 

40%

 

$       58

 

$      11

 

427%

 
                           

Mark-to-market gain (loss)

 

$         2

 

$       (2)

 

200%

 

$       23

 

$     (18)

 

228%

 
                           

Energy Services Operating Data:

                         

Throughput data in BCF

 

272

 

200

 

36%

 

864

 

570

 

52%

 
                           

Number of customers - end of period

 

30,817

 

31,669

 

(3%)

 

30,817

 

31,669

 

(3%)

 
                           
                           
   

Other Operations

 
   

Quarter Ended 

     

Nine Months Ended

     
   

September 30,

 

% Diff

 

September 30,

 

% Diff

 
   

2017

 

2016

 

Fav/(Unfav)

 

2017

 

2016

 

Fav/(Unfav)

 

Results of Operations:

                         

Revenues

 

$         4

 

$         3

 

33%

 

$       11

 

$       11

 

-

 

Expenses

 

(2)

 

3

 

(167%)

 

2

 

6

 

67%

 

Operating Income 

 

$         6

 

$          -

 

-

 

$         9

 

$         5

 

80%

 
                           

 Capital Expenditures by Segment 

 

(Millions of Dollars)

 

(Unaudited)

 
                           
   

Quarter Ended 

     

Nine Months Ended

     
   

September 30,

     

September 30,

     
   

2017

 

2016

     

2017

 

2016

     

Capital Expenditures by Segment

                         

Electric Transmission & Distribution

 

$     192

 

$     211

     

$     616

 

$     638

     

Natural Gas Distribution

 

158

 

143

     

386

 

371

     

Energy Services

 

1

 

1

     

5

 

3

     

Other Operations

 

7

 

6

     

19

 

16

     

Total

 

$     358

 

$     361

     

$  1,026

 

$  1,028

     
                           

Interest Expense Detail

 

(Millions of Dollars)

(Unaudited)

                           
   

Quarter Ended 

     

Nine Months Ended

     
   

September 30,

     

September 30,

     
   

2017

 

2016

     

2017

 

2016

     

Interest Expense Detail

                         

Amortization of Deferred Financing Cost

 

$         6

 

$         6

     

$       17

 

$       18

     

Capitalization of Interest Cost

 

(2)

 

(2)

     

(6)

 

(5)

     

Transition and System Restoration Bond Interest Expense

 

18

 

23

     

58

 

70

     

Other Interest Expense

 

76

 

79

     

224

 

243

     

Total Interest Expense

 

$       98

 

$     106

     

$     293

 

$     326

     
                           
                           

Reference is made to the Notes to the Consolidated Financial Statements

 

contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.

 

 

CenterPoint Energy, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Millions of Dollars)

(Unaudited)

           
           
   

September 30,

 

December 31,

 
   

2017

 

2016

 
           
           

                                        ASSETS

         

Current Assets:

         

  Cash and cash equivalents

 

$             201

 

$           341

 

  Other current assets

 

2,734

 

2,582

 

      Total current assets

 

2,935

 

2,923

 
           

Property, Plant and Equipment, net

 

12,700

 

12,307

 
           

Other Assets:

         

  Goodwill

 

867

 

862

 

  Regulatory assets

 

2,539

 

2,677

 

  Investment in unconsolidated affiliate

 

2,481

 

2,505

 

  Preferred units -unconsolidated affiliate

 

363

 

363

 

  Other non-current assets

 

250

 

192

 

      Total other assets

 

6,500

 

6,599

 

        Total Assets

 

$        22,135

 

$       21,829

 
           

                         LIABILITIES AND SHAREHOLDERS' EQUITY

         
           

Current Liabilities:

         

  Short-term borrowings

 

$              48

 

$             35

 

  Current portion of securitization bonds long-term debt

 

432

 

411

 

  Indexed debt

 

120

 

114

 

  Current portion of other long-term debt

 

550

 

500

 

  Other current liabilities

 

2,071

 

2,020

 

      Total current liabilities

 

3,221

 

3,080

 
           

Other Liabilities:

         

  Accumulated deferred income taxes, net 

 

5,458

 

5,263

 

  Regulatory liabilities

 

1,127

 

1,298

 

  Other non-current liabilities

 

1,180

 

1,196

 

      Total other liabilities

 

7,765

 

7,757

 
           

Long-term Debt:

         

  Securitization bonds

 

1,500

 

1,867

 

  Other

 

6,031

 

5,665

 

      Total long-term debt

 

7,531

 

7,532

 
           

Shareholders' Equity

 

3,618

 

3,460

 

      Total Liabilities and Shareholders' Equity

 

$        22,135

 

$       21,829

 
           
           

Reference is made to the Notes to the Consolidated Financial Statements

contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.

 

CenterPoint Energy, Inc. and Subsidiaries

Condensed Statements of Consolidated Cash Flows

(Millions of Dollars)

(Unaudited)

       
       
       
 

Nine Months Ended September 30,

 

2017

 

2016

       

Cash Flows from Operating Activities:

     

  Net income

$ 496

 

$ 331

  Adjustments to reconcile net income to net cash provided by operating activities:

     

Depreciation and amortization

767

 

892

Deferred income taxes

185

 

150

Write-down of natural gas inventory

-

 

1

Equity in earnings of unconsolidated affiliate, net of distributions

(199)

 

(164)

Changes in net regulatory assets

(135)

 

(26)

Changes in other assets and liabilities

(99)

 

252

Other, net

16

 

19

Net Cash Provided by Operating Activities

1,031

 

1,455

       

Net Cash Used in Investing Activities

(892)

 

(739)

       

Net Cash Used in Financing Activities

(279)

 

(710)

       

Net Increase (Decrease) in Cash and Cash Equivalents

(140)

 

6

       

Cash and Cash Equivalents at Beginning of Period

341

 

264

       

Cash and Cash Equivalents at End of Period

$ 201

 

$ 270

       
 

Reference is made to the Notes to the Consolidated Financial Statements

contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.

 

For more information contact
Media:
Leticia Lowe

Phone 713.207.7702
Investors:
David Mordy

Phone 713.207.6500

 

 

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SOURCE CenterPoint Energy, Inc.

 

 

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