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Table of Contents

 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 2, 2007
 
CENTERPOINT ENERGY, INC.
(Exact name of registrant as specified in its charter)
         
Texas
(State or other jurisdiction
of incorporation)
  1-31447
(Commission File Number)
  74-0694415
(IRS Employer
Identification No.)
     
1111 Louisiana
Houston, Texas

(Address of principal executive offices)
  77002
(Zip Code)
Registrant’s telephone number, including area code: (713) 207-1111
 
     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
     o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
     o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
     o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
     o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 


TABLE OF CONTENTS

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS
SIGNATURE
EXHIBIT INDEX
Press Release


Table of Contents

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
     On August 2, 2007, CenterPoint Energy, Inc. (“CenterPoint Energy”) reported second quarter 2007 earnings. For additional information regarding CenterPoint Energy’s second quarter 2007 earnings, please refer to CenterPoint Energy’s press release attached to this report as Exhibit 99.1 (the “Press Release”), which Press Release is incorporated by reference herein. The information in the Press Release is being furnished, not filed, pursuant to Item 2.02. Accordingly, the information in the Press Release will not be incorporated by reference into any registration statement filed by CenterPoint Energy under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
     The exhibit listed below is furnished pursuant to Item 2.02 of this Form 8-K.
  (d)   Exhibits.
 
  99.1   Press Release issued August 2, 2007 regarding CenterPoint Energy, Inc.’s second quarter 2007 earnings.

 


Table of Contents

SIGNATURE
     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
             
 
  CENTERPOINT ENERGY, INC.    
 
           
Date: August 2, 2007
  By:   /s/James S. Brian
 
James S. Brian
   
 
      Senior Vice President and    
 
      Chief Accounting Officer    

 


Table of Contents

EXHIBIT INDEX
     
EXHIBIT    
NUMBER   EXHIBIT DESCRIPTION
99.1
  Press Release issued August 2, 2007 regarding CenterPoint Energy, Inc.’s second quarter 2007 earnings

 

exv99w1
 

Exhibit 99.1
     
(CENTER POINT 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 4
CENTERPOINT ENERGY REPORTS SECOND QUARTER 2007 EARNINGS
     Houston, TX – August 2, 2007 - CenterPoint Energy, Inc. (NYSE: CNP) today reported net income of $70 million, or $0.20 per diluted share, for the second quarter of 2007 compared to $194 million, or $0.61 per diluted share, for the same period of 2006.
     The second quarter 2006 results were favorably impacted by $140 million, or $0.44 per diluted share, due to an agreement reached on a settlement of a tax dispute with the Internal Revenue Service and the resolution of certain other legacy tax issues, but were negatively impacted by $21 million after-tax, or $0.07 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 second quarter of 2006 would have been $75 million, or $0.24 per diluted share.
     For the six months ended June 30, 2007, net income was $200 million, or $0.58 per diluted share, compared to $282 million, or $0.89 per diluted share, for the same period of 2006. Excluding the impacts of the items discussed above and a related charge recorded in the first quarter of 2006 ($14 million, or $0.04 per diluted share), net income for the six months ended June 30, 2006, would have been $177 million, or $0.56 per diluted share.
     “Our interstate pipeline and field services businesses turned in strong performances this quarter primarily due to the completion of Phase I of our Carthage to Perryville pipeline and strong demand for gas gathering and ancillary services,” said David M. McClanahan, president and chief executive officer of CenterPoint Energy. “Our gas distribution business continued its improved performance from a year ago. Despite the impacts of mild weather on our electric utility and the timing of expenses in our energy services business, we still had a very solid quarter overall. I believe these results demonstrate the value of our balanced portfolio of gas and electric businesses.”
OPERATING INCOME BY SEGMENT
Electric Transmission & Distribution
     The electric transmission & distribution segment reported operating income of $157 million in the second quarter of 2007, consisting of $118 million from the core regulated electric transmission & distribution utility (TDU), exclusive of an additional $10 million from the competition transition charge (CTC), and $29 million related to transition bonds. Operating income for the second quarter of 2006 was $151 million, consisting of $104 million from the TDU, exclusive of an additional $15 million from the CTC, and $32 million related to transition bonds.
- more -

 


 

     
(CENTER POINT ENERGY LOGO)
  For more information contact
Media:
Leticia Lowe

Phone 713.207.7702
Investors:
Marianne Paulsen

Phone 713.207.6500
     
FOR IMMEDIATE RELEASE   Page 2 of 4
     Operating income for the second quarter of 2007 included a $17 million favorable settlement related to the final fuel reconciliation of the formerly integrated electric utility. Operating income for the second quarter of 2006 included a $32 million charge related to the UCOS settlement. Operating income for the TDU for the second quarter of 2007 was negatively impacted by lower usage primarily due to milder weather, a rate settlement implemented in October of 2006 and higher transmission costs. These impacts were partially offset by customer growth of over 43,000 metered customers since June 2006.
     Operating income for the six months ended June 30, 2007, was $261 million, consisting of $180 million from the TDU, exclusive of an additional $21 million from the CTC, and $60 million related to transition bonds. Operating income for the same period of 2006 was also $261 million, consisting of $166 million from the TDU, exclusive of an additional $31 million from the CTC, and $64 million related to transition bonds.
Natural Gas Distribution
     The natural gas distribution segment reported operating income of $8 million for the second quarter of 2007 compared to an operating loss of $2 million for the same period of 2006. The increase in operating income was driven primarily by labor and benefit savings associated with staff reductions in 2006, customer growth of nearly 60,000 customers since June 2006 and a prior year write-off of certain rate case expenses. The increase in operating income was partially offset by higher expenses principally associated with initiatives undertaken to improve customer service.
     Operating income for the six months ended June 30, 2007, was $137 million compared to $101 million for the same period of 2006.
Competitive Natural Gas Sales and Services
     The competitive natural gas sales and services segment reported an operating loss of $4 million for the second quarter of 2007 compared to operating income of $7 million for the same period of 2006. The decrease in operating income was primarily due to a reduction in locational and seasonal natural gas price differentials. In addition, the second quarter of 2007 included a $6 million charge resulting from mark-to-market accounting for non-trading financial derivatives and a $5 million write-down of natural gas inventory to the lower of average cost or market, compared to an $8 million gain resulting from mark-to-market accounting and a $17 million inventory write-down for the same period of 2006.
     Operating income for the six months ended June 30, 2007, was $52 million compared to $32 million for the same period of 2006.
- more -

 


 

     
(CENTER POINT ENERGY LOGO)
  For more information contact
Media:
Leticia Lowe

Phone 713.207.7702
Investors:
Marianne Paulsen

Phone 713.207.6500
     
FOR IMMEDIATE RELEASE   Page 3 of 4
Interstate Pipelines
     The interstate pipelines segment reported operating income of $52 million for the second quarter of 2007 compared to $40 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 by increased ancillary services.
     Operating income for the six months ended June 30, 2007, was $96 million compared to $89 million for the same period of 2006.
Field Services
     The field services segment reported operating income of $27 million for the second quarter of 2007 compared to $21 million for the same period of 2006. Operating income increased from higher throughput and increased ancillary services. In addition, this business recorded equity income of $2 million in each of the second quarters of 2007 and 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 six months ended June 30, 2007, was $49 million compared to $45 million for the same period of 2006. Equity income from the jointly-owned gas processing plant was $4 million for the six months ended June 30, 2007, compared to $5 million for the same period of 2006.
DIVIDEND DECLARATION
     On July 26, 2007, CenterPoint Energy’s board of directors declared a regular quarterly cash dividend of $0.17 per share of common stock payable on September 10, 2007, to shareholders of record as of the close of business on August 16, 2007.
OUTLOOK FOR 2007
     CenterPoint Energy continues to expect diluted earnings per share for 2007 to be in the range of $1.02 to $1.12. 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.
- more -

 


 

     
(CENTER POINT ENERGY LOGO)
  For more information contact
Media:
Leticia Lowe

Phone 713.207.7702
Investors:
Marianne Paulsen

Phone 713.207.6500
     
FOR IMMEDIATE RELEASE   Page 4 of 4
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 June 30, 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, August 2, 2007, 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 interstate 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 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.
     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, 2006, CenterPoint Energy’s and its subsidiaries’ Form 10-Qs for the period ended March 31, 2007, CenterPoint Energy’s Form 10-Q for the period ended June 30, 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 June 30,     Six Months Ended June 30,  
    2006     2007     2006     2007  
Revenues:
                               
Electric Transmission & Distribution
  $ 456     $ 465     $ 841     $ 871  
Natural Gas Distribution
    549       576       2,029       2,143  
Competitive Natural Gas Sales and Services
    750       881       1,913       1,945  
Interstate Pipelines
    104       121       193       211  
Field Services
    34       42       75       81  
Other Operations
    5       3       9       5  
Eliminations
    (55 )     (55 )     (140 )     (117 )
 
                       
Total
    1,843       2,033       4,920       5,139  
 
                       
 
                               
Expenses:
                               
Natural gas
    1,035       1,208       3,228       3,358  
Operation and maintenance
    340       330       671       682  
Depreciation and amortization
    153       160       293       305  
Taxes other than income taxes
    95       93       202       199  
 
                       
Total
    1,623       1,791       4,394       4,544  
 
                       
Operating Income
    220       242       526       595  
 
                       
 
                               
Other Income (Expense) :
                               
Gain (Loss) on Time Warner investment
    11       28       (3 )     (16 )
Gain (Loss) on indexed debt securities
    (11 )     (27 )     (1 )     14  
Interest and other finance charges
    (118 )     (119 )     (233 )     (242 )
Interest on transition bonds
    (33 )     (32 )     (66 )     (63 )
Other — net
    9       6       15       12  
 
                       
Total
    (142 )     (144 )     (288 )     (295 )
 
                       
 
                               
Income from Before Income Taxes
    78       98       238       300  
 
                               
Income Tax (Expense) Benefit
    116       (28 )     44       (100 )
 
                       
 
                               
Net Income
  $ 194     $ 70     $ 282     $ 200  
 
                       
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     Six Months Ended  
    June 30,     June 30,  
    2006     2007     2006     2007  
Basic Earnings Per Common Share:
                               
Net Income
  $ 0.62     $ 0.22     $ 0.91     $ 0.62  
 
                       
 
                               
Diluted Earnings Per Common Share:
                               
Net Income
  $ 0.61     $ 0.20     $ 0.89     $ 0.58  
 
                       
 
                               
Dividends Declared per Common Share
  $ 0.15     $ 0.17     $ 0.30     $ 0.34  
Weighted Average Common Shares Outstanding (000):
                               
- Basic
    311,440       320,927       311,145       319,501  
- Diluted
    316,816       343,770       317,744       342,024  
 
                               
Operating Income (Loss) by Segment
                               
 
                               
Electric Transmission & Distribution:
                               
Transmission & Distribution Utility
  $ 119     $ 128     $ 197     $ 201  
Transition Bond Companies
    32       29       64       60  
 
                       
Total Electric Transmission & Distribution
    151       157       261       261  
Natural Gas Distribution
    (2 )     8       101       137  
Competitive Natural Gas Sales and Services
    7       (4 )     32       52  
Interstate Pipelines
    40       52       89       96  
Field Services
    21       27       45       49  
Other Operations
    3       2       (2 )      
 
                       
 
                               
Total
  $ 220     $ 242     $ 526     $ 595  
 
                       
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             Six Months Ended        
    June 30,     % Diff     June 30,     % Diff  
    2006     2007     Fav/(Unfav)     2006     2007     Fav/(Unfav)  
Results of Operations:
                                               
Revenues:
                                               
Electric transmission and distribution utility
  $ 386     $ 395       2 %   $ 717     $ 742       3 %
Transition bond companies
    70       70             124       129       4 %
 
                                       
Total
    456       465       2 %     841       871       4 %
 
                                       
 
                                               
Expenses:
                                               
Operation and maintenance
    147       150       (2 %)     281       304       (8 %)
Depreciation and amortization
    61       61             124       124        
Taxes other than income taxes
    59       56       5 %     115       113       2 %
Transition bond companies
    38       41       (8 %)     60       69       (15 %)
 
                                       
Total
    305       308       (1 %)     580       610       (5 %)
 
                                       
Operating Income
  $ 151     $ 157       4 %   $ 261     $ 261        
 
                                       
 
                                               
Operating Income — Electric transmission and distribution utility
    119       128       8 %     197       201       2 %
Operating Income — Transition bond companies
    32       29       (9 %)     64       60       (6 %)
 
                                       
Total Segment Operating Income
  $ 151     $ 157       4 %   $ 261     $ 261        
 
                                       
 
                                               
Electric Transmission & Distribution Operating Data:
                                               
Actual MWH Delivered
                                               
Residential
    6,807,984       6,020,714       (12 %)     10,794,374       10,678,773       (1 %)
Total
    20,422,341       19,175,278       (6 %)     36,409,221       35,835,191       (2 %)
 
                                               
Weather (average for service area):
                                               
Percentage of normal:
                                               
Cooling degree days
    111 %     94 %     (17 %)     114 %     96 %     (18 %)
Heating degree days
    0 %     197 %     197 %     60 %     114 %     54 %
 
                                               
Average number of metered customers:
                                               
Residential
    1,730,130       1,767,749       2 %     1,723,983       1,760,006       2 %
Total
    1,965,180       2,006,840       2 %     1,958,005       1,998,291       2 %
                                                 
    Natural Gas Distribution  
    Quarter Ended             Six Months Ended        
    June 30,     % Diff     June 30,     % Diff  
    2006     2007     Fav/(Unfav)     2006     2007     Fav/(Unfav)  
Results of Operations:
                                               
Revenues
  $ 549     $ 576       5 %   $ 2,029     $ 2,143       6 %
 
                                       
Expenses:
                                               
Natural gas
    343       366       (7 %)     1,489       1,578       (6 %)
Operation and maintenance
    142       135       5 %     292       282       3 %
Depreciation and amortization
    37       38       (3 %)     75       76       (1 %)
Taxes other than income taxes
    29       29             72       70       3 %
 
                                       
Total
    551       568       (3 %)     1,928       2,006       (4 %)
 
                                       
Operating Income (Loss)
  $ (2 )   $ 8       500 %   $ 101     $ 137       36 %
 
                                       
 
                                               
Natural Gas Distribution Operating Data:
                                               
Throughput data in BCF
                                               
Residential
    17       20       18 %     84       106       26 %
Commercial and Industrial
    44       44             116       126       9 %
 
                                       
Total Throughput
    61       64       5 %     200       232       16 %
 
                                       
 
                                               
Weather (average for service area)
                                               
Percentage of normal:
                                               
Heating degree days
    60 %     95 %     35 %     81 %     99 %     18 %
 
                                               
Average number of customers:
                                               
Residential
    2,871,107       2,925,120       2 %     2,882,008       2,935,661       2 %
Commercial and Industrial
    243,420       247,550       2 %     244,475       246,564       1 %
 
                                       
Total
    3,114,527       3,172,670       2 %     3,126,483       3,182,225       2 %
 
                                       
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)
                                                 
    Competitive Natural Gas Sales and Services  
    Quarter Ended             Six Months Ended        
    June 30,     % Diff     June 30,     % Diff  
    2006     2007     Fav/(Unfav)     2006     2007     Fav/(Unfav)  
Results of Operations:
                                               
Revenues
  $ 750     $ 881       17 %   $ 1,913     $ 1,945       2 %
 
                                       
Expenses:
                                               
Natural gas
    735       877       (19 %)     1,864       1,875       (1 %)
Operation and maintenance
    7       7             15       16       (7 %)
Depreciation and amortization
    1       1             1       1        
Taxes other than income taxes
                      1       1        
 
                                       
Total
    743       885       (19 %)     1,881       1,893       (1 %)
 
                                       
Operating Income(Loss)
  $ 7     $ (4 )     (157 %)   $ 32     $ 52       63 %
 
                                       
 
                                               
Competitive Natural Gas Sales and Services Operating Data:
                                               
Throughput data in BCF
                                               
Wholesale — third parties
    72       74       3 %     161       168       4 %
Wholesale — affiliates
    8       2       (75 %)     19       5       (74 %)
Retail & Pipeline
    41       44       7 %     99       102       3 %
 
                                       
Total Throughput
    121       120       (1 %)     279       275       (1 %)
 
                                       
 
                                               
Average number of customers:
                                               
Wholesale
    132       248       88 %     138       235       70 %
Retail & Pipeline
    6,604       6,829       3 %     6,639       6,797       2 %
 
                                       
Total
    6,736       7,077       5 %     6,777       7,032       4 %
 
                                       
                                                 
    Interstate Pipelines  
    Quarter Ended             Six Months Ended        
    June 30,     % Diff     June 30,     % Diff  
    2006     2007     Fav/(Unfav)     2006     2007     Fav/(Unfav)  
Results of Operations:
                                               
Revenues
  $ 104     $ 121       16 %   $ 193     $ 211       9 %
 
                                       
Expenses:
                                               
Natural gas
    14       24       (71 %)     12       28       (133 %)
Operation and maintenance
    38       29       24 %     65       56       14 %
Depreciation and amortization
    8       11       (38 %)     18       21       (17 %)
Taxes other than income taxes
    4       5       (25 %)     9       10       (11 %)
 
                                       
Total
    64       69       (8 %)     104       115       (11 %)
 
                                       
Operating Income
  $ 40     $ 52       30 %   $ 89     $ 96       8 %
 
                                       
 
                                               
Pipelines Operating Data:
                                               
Throughput data in BCF
                                               
Transportation
    240       274       14 %     514       568       11 %
 
                                       
Total Throughput
    240       274       14 %     514       568       11 %
 
                                       
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)
                                                 
    Field Services  
    Quarter Ended             Six Months Ended        
    June 30,     % Diff     June 30,     % Diff  
    2006     2007     Fav/(Unfav)     2006     2007     Fav/(Unfav)  
Results of Operations:
                                               
Revenues
  $ 34     $ 42       24 %   $ 75     $ 81       8 %
 
                                       
Expenses:
                                               
Natural gas
    (4 )     (4 )           (3 )     (7 )     133 %
Operation and maintenance
    14       16       (14 %)     27       32       (19 %)
Depreciation and amortization
    2       3       (50 %)     5       6       (20 %)
Taxes other than income taxes
    1             100 %     1       1        
 
                                       
Total
    13       15       (15 %)     30       32       (7 %)
 
                                       
Operating Income
  $ 21     $ 27       29 %   $ 45     $ 49       9 %
 
                                       
 
                                               
Field Services Operating Data:
                                               
Throughput data in BCF
                                               
Gathering
    94       100       6 %     182       193       6 %
 
                                       
Total Throughput
    94       100       6 %     182       193       6 %
 
                                       
                                                 
    Other Operations  
    Quarter Ended             Six Months Ended        
    June 30,     % Diff     June 30,     % Diff  
    2006     2007     Fav/(Unfav)     2006     2007     Fav/(Unfav)  
Results of Operations:
                                               
Revenues
  $ 5     $ 3       (40 %)   $ 9     $ 5       (44 %)
Expenses
    2       1       50 %     11       5       55 %
 
                                   
Operating Income(Loss)
  $ 3     $ 2       (33 %)   $ (2 )   $       100 %
 
                                       
Capital Expenditures by Segment
(Millions of Dollars)
(Unaudited)
                                 
    Quarter Ended     Six Months Ended  
    June 30,     June 30,  
    2006     2007     2006     2007  
Capital Expenditures by Segment
                               
Electric Transmission & Distribution
  $ 111     $ 111     $ 190     $ 221  
Natural Gas Distribution
    45       44       85       77  
Competitive Natural Gas Sales and Services
    4       2       10       4  
Interstate Pipelines
    42       60       61       214  
Field Services
    12       13       23       40  
Other Operations
    4       6       14       17  
 
                       
Total
  $ 218     $ 236     $ 383     $ 573  
 
                       
Interest Expense Detail
(Millions of Dollars)
(Unaudited)
                                 
    Quarter Ended     Six Months Ended  
    June 30,     June 30,  
    2006     2007     2006     2007  
Interest Expense Detail
                               
Amortization of Deferred Financing Cost
  $ 13     $ 12     $ 26     $ 31  
Capitalization of Interest Cost
    (2 )     (7 )     (3 )     (15 )
Transition Bond Interest Expense
    33       32       66       63  
Other Interest Expense
    107       114       210       226  
 
                       
Total Interest Expense
  $ 151     $ 151     $ 299     $ 305  
 
                       
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)
                 
    December 31,     June 30,  
    2006     2007  
ASSETS
               
Current Assets:
               
Cash and cash equivalents
  $ 127     $ 112  
Other current assets
    2,868       2,285  
 
           
Total current assets
    2,995       2,397  
 
           
 
               
Property, Plant and Equipment, net
    9,204       9,549  
 
           
 
Other Assets:
               
Goodwill
    1,709       1,709  
Regulatory assets
    3,290       3,209  
Other non-current assets
    435       411  
 
           
Total other assets
    5,434       5,329  
 
           
Total Assets
  $ 17,633     $ 17,275  
 
           
 
               
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
 
               
Current Liabilities:
               
Short-term borrowings
  $ 187     $ 225  
Current portion of transition bond long-term debt
    147       152  
Current portion of other long-term debt
    1,051       994  
Other current liabilities
    2,836       2,090  
 
           
Total current liabilities
    4,221       3,461  
 
           
 
               
Other Liabilities:
               
Accumulated deferred income taxes, net and investment tax credit
    2,362       2,295  
Regulatory liabilities
    792       822  
Other non-current liabilities
    900       840  
 
           
Total other liabilities
    4,054       3,957  
 
           
 
               
Long-term Debt:
               
Transition bond
    2,260       2,183  
Other
    5,542       5,988  
 
           
Total long-term debt
    7,802       8,171  
 
           
 
               
Shareholders’ Equity
    1,556       1,686  
 
           
Total Liabilities and Shareholders’ Equity
  $ 17,633     $ 17,275  
 
           
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)
                 
    Six Months Ended June 30,  
    2006     2007  
Cash Flows from Operating Activities:
               
Net income
  $ 282     $ 200  
Adjustments to reconcile net income to net cash provided by operating activities:
               
Depreciation and amortization
    321       338  
Deferred income taxes and investment tax credit
    (109 )     12  
Tax and interest reserves reductions related to ZENS and ACES
    (119 )      
Changes in net regulatory assets
    54       31  
Changes in other assets and liabilities
    73       (164 )
Other, net
    15       10  
 
           
Net Cash Provided by Operating Activities
    517       427  
 
               
Net Cash Used in Investing Activities
    (396 )     (709 )
 
               
Net Cash Provided by Financing Activities
    202       267  
 
           
 
               
Net Increase (Decrease) in Cash and Cash Equivalents
    323       (15 )
 
               
Cash and Cash Equivalents at Beginning of Period
    74       127  
 
               
 
           
Cash and Cash Equivalents at End of Period
  $ 397     $ 112  
 
           
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.