e8vk
 
 
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 6, 2008
 
CENTERPOINT ENERGY, INC.
(Exact name of registrant as specified in its charter)
         
Texas   1-31447   74-0694415
(State or other jurisdiction   (Commission File Number)   (IRS Employer
of incorporation)       Identification No.)
     
1111 Louisiana    
Houston, Texas   77002
(Address of principal executive offices)   (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))
 
 

 


 

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
     On August 6, 2008, CenterPoint Energy, Inc. (“CenterPoint Energy”) reported second quarter 2008 earnings. Certain information regarding CenterPoint Energy’s second quarter 2008 earnings is included in Item 8.01 below. For additional information regarding CenterPoint Energy’s second quarter 2008 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 8.01. OTHER EVENTS.
Second Quarter 2008 Results
     Net income was $101 million, or $0.30 per diluted share, for the second quarter of 2008 compared to $70 million, or $0.20 per diluted share, for the same period of 2007. For the six months ended June 30, 2008, net income was $224 million, or $0.66 per diluted share, compared to $200 million, or $0.58 per diluted share, for the same period of 2007.
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 6, 2008 regarding CenterPoint Energy, Inc.’s second quarter 2008 earnings.

 


 

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 6, 2008  By:   /s/ Walter L. Fitzgerald    
    Walter L. Fitzgerald   
    Senior Vice President and
Chief Accounting Officer 
 

 


 

         
EXHIBIT INDEX
     
EXHIBIT    
NUMBER   EXHIBIT DESCRIPTION
 
   
99.1
  Press Release issued August 6, 2008 regarding CenterPoint Energy, Inc.’s second quarter 2008 earnings

 

exv99w1
Exhibit 99.1
(CENTERPOINT ENERGY LOGO)
     
 
  For more information contact
 
  Media:
 
  Leticia Lowe
 
  Phone 713.207.7702
 
  Investors:
 
  Marianne Paulsen
 
  Phone 713.207.6500
For Immediate Release   Page 1 of 4
 
CENTERPOINT ENERGY REPORTS SECOND QUARTER 2008 EARNINGS
     Houston, TX — August 6, 2008 - CenterPoint Energy, Inc. (NYSE: CNP) today reported net income of $101 million, or $0.30 per diluted share, for the second quarter of 2008 compared to $70 million, or $0.20 per diluted share, for the same period of 2007.
     “I am pleased with the overall performance of our company during the second quarter, particularly in a period of high energy prices,” said David M. McClanahan, president and chief executive officer of CenterPoint Energy. “We continue to see the benefit of our balanced electric and natural gas portfolio. Our utility operations turned in solid performances, and our pipelines and field services businesses continue to benefit from our previous investments and the continuing high levels of drilling activity in the mid-continent area driven by the strong demand for natural gas.”
     For the six months ended June 30, 2008, net income was $224 million, or $0.66 per diluted share, compared to $200 million, or $0.58 per diluted share, for the same period of 2007.
OPERATING INCOME BY SEGMENT
Electric Transmission & Distribution
     The electric transmission & distribution segment reported operating income of $164 million in the second quarter of 2008, consisting of $129 million from the regulated electric transmission & distribution utility operations (TDU) and $35 million related to transition bonds. Operating income for the second quarter of 2007 was $157 million, consisting of $118 million from the TDU, $10 million from the competition transition charge (CTC), and $29 million related to transition bonds. In February 2008, the company monetized the remaining allowed true-up balance resulting in the discontinuance of the CTC.
     Operating income for the TDU for the second quarter of 2008 increased due to warmer weather, continued strong customer growth of nearly 52,000 metered customers since June 2007, higher revenues from ancillary services and a $9 million gain from a land sale, partially offset by higher transmission costs and other operating expenses. 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 six months ended June 30, 2008, was $255 million, consisting of $183 million from the TDU, $5 million from the CTC and $67 million related to transition bonds. Operating income for the same period of 2007 was $261 million, consisting of $180 million from the TDU, $21 million from the CTC, and $60 million related to transition bonds.

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(CENTERPOINT ENERGY LOGO)
     
 
  For more information contact
 
  Media:
 
  Leticia Lowe
 
  Phone 713.207.7702
 
  Investors:
 
  Marianne Paulsen
 
  Phone 713.207.6500
For Immediate Release   Page 2 of 4
 
Natural Gas Distribution
     The natural gas distribution segment reported operating income of $4 million for the second quarter of 2008 compared to $8 million for the same period of 2007. The decline was due to higher operating expenses primarily related to bad debts, customer-related costs and support services, partially offset by the benefit of new rates implemented in late 2007, lower employee-related costs and continued customer growth of nearly 34,000 metered customers since June 2007. Due to seasonal impacts, this segment typically reports minimal earnings in the second quarter.
     Operating income for the six months ended June 30, 2008, was $125 million compared to $137 million for the same period of 2007.
Interstate Pipelines
     The interstate pipelines segment reported operating income of $101 million for the second quarter of 2008 compared to $52 million for the same period of 2007. The increase was driven by increased ancillary services and the Carthage to Perryville pipeline, which went into commercial service in May 2007. In addition, operating income for the second quarter of 2008 included an $18 million gain from the sale of two storage development projects.
     Operating income for the six months ended June 30, 2008, was $172 million compared to $96 million for the same period of 2007.
Field Services
     The field services segment reported operating income of $32 million for the second quarter of 2008 compared to $27 million for the same period of 2007. Operating income increased from higher throughput, increased ancillary services and higher commodity prices.
     In addition to operating income, this business had equity income of $4 million in the second quarter of 2008 compared to $2 million in the second quarter of 2007 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, 2008, was $77 million compared to $49 million for the same period of 2007. Equity income from the jointly-owned gas processing plant was $8 million for the six months ended June 30, 2008, compared to $4 million for the same period of 2007.

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(CENTERPOINT ENERGY LOGO)
     
 
  For more information contact
 
  Media:
 
  Leticia Lowe
 
  Phone 713.207.7702
 
  Investors:
 
  Marianne Paulsen
 
  Phone 713.207.6500
For Immediate Release   Page 3 of 4
 
Competitive Natural Gas Sales and Services
     The competitive natural gas sales and services segment reported an operating loss of $5 million for the second quarter of 2008 compared to a loss of $4 million for the same period of 2007. The second quarter of 2008 included charges of $10 million resulting from mark-to-market accounting for derivatives used to lock in economic margins of certain forward natural gas sales compared to mark-to-market charges of $6 million for the same period of 2007. The second quarter of 2007 also included a $5 million write-down of natural gas inventory to the lower of average cost or market.
     Operating income for the six months ended June 30, 2008, was $1 million compared to $52 million for the same period of 2007. Approximately $13 million of the decline was due to reduced locational and seasonal price differentials. In addition, the six months ended June 30, 2008 included charges of $32 million resulting from mark-to-market accounting compared to charges of $14 million for the same period of 2007. The six months ended June 30, 2007 also included $6 million in inventory write-downs. Additionally, the six months ended June 30, 2008 included $6 million in gains on sales of gas from inventory compared to $30 million for the same period of 2007.
DIVIDEND DECLARATION
     On July 24, 2008, CenterPoint Energy’s board of directors declared a regular quarterly cash dividend of $0.1825 per share of common stock payable on September 10, 2008, to shareholders of record as of the close of business on August 15, 2008.
OUTLOOK FOR 2008
     CenterPoint Energy expects diluted earnings per share for 2008 to be in the upper half of its guidance range of $1.15 to $1.25. This guidance takes into consideration performance to date as well as 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, the timing effects of mark-to-market or inventory accounting in our competitive natural gas sales and services business or the outcome of the TDU’s true-up appeal.
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, 2008. A copy of that report is available on the company’s Web site, www.CenterPointEnergy.com, under the

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(CENTERPOINT ENERGY LOGO)
     
 
  For more information contact
 
  Media:
 
  Leticia Lowe
 
  Phone 713.207.7702
 
  Investors:
 
  Marianne Paulsen
 
  Phone 713.207.6500
For Immediate Release   Page 4 of 4
 
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 Wednesday, August 6, 2008, at 10:30 a.m. Central time or 11:30 a.m. Eastern time. Interested parties may listen to a live audio broadcast of the conference call at www.CenterPointEnergy.com. A replay of the call can be accessed approximately two hours after the completion of the call and will be archived on the Web site for at least one year.
     CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution, competitive natural gas sales and services, interstate pipelines and field services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. Assets total over $17 billion. With about 8,600 employees, CenterPoint Energy and its predecessor companies have been in business for more than 130 years. For more information, visit the Web site at www.CenterPointEnergy.com.
     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, 2007, CenterPoint Energy’s and its subsidiaries’ Form 10-Qs for the period ended March 31, 2008, CenterPoint Energy’s Form 10-Q for the period ended June 30, 2008, and other filings with the SEC.
###

 


 

CenterPoint Energy, Inc. and Subsidiaries
Statements of Consolidated Income
(Millions of Dollars)
(Unaudited)
                                 
    Quarter Ended     Six Months Ended  
    June 30,     June 30,  
    2007     2008     2007     2008  
 
                               
Revenues:
                               
Electric Transmission & Distribution
  $ 465     $ 510     $ 871     $ 919  
Natural Gas Distribution
    576       726       2,143       2,426  
Competitive Natural Gas Sales and Services
    881       1,243       1,945       2,363  
Interstate Pipelines
    121       192       211       325  
Field Services
    42       62       81       120  
Other Operations
    3       2       5       5  
Eliminations
    (55 )     (65 )     (117 )     (125 )
 
                       
Total
    2,033       2,670       5,139       6,033  
 
                       
 
                               
Expenses:
                               
Natural gas
    1,208       1,750       3,358       4,143  
Operation and maintenance
    330       342       682       707  
Depreciation and amortization
    160       188       305       346  
Taxes other than income taxes
    93       93       199       204  
 
                       
Total
    1,791       2,373       4,544       5,400  
 
                       
Operating Income
    242       297       595       633  
 
                       
 
                               
Other Income (Expense) :
                               
Gain (loss) on Time Warner investment
    28       17       (16 )     (37 )
Gain (loss) on indexed debt securities
    (27 )     (17 )     14       33  
Interest and other finance charges
    (119 )     (113 )     (242 )     (228 )
Interest on transition bonds
    (32 )     (35 )     (63 )     (68 )
Other — net
    6       14       12       27  
 
                       
Total
    (144 )     (134 )     (295 )     (273 )
 
                       
 
                               
Income Before Income Taxes
    98       163       300       360  
 
                               
Income Tax Expense
    (28 )     (62 )     (100 )     (136 )
 
                       
 
                               
Net Income
  $ 70     $ 101     $ 200     $ 224  
 
                       
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,  
    2007     2008     2007     2008  
 
                               
Basic Earnings Per Common Share:
                               
Net Income
  $ 0.22     $ 0.30     $ 0.62     $ 0.68  
 
                       
 
                               
Diluted Earnings Per Common Share:
                               
Net Income
  $ 0.20     $ 0.30     $ 0.58     $ 0.66  
 
                       
 
                               
Dividends Declared per Common Share
  $ 0.17     $ 0.1825     $ 0.34     $ 0.365  
 
                               
Weighted Average Common Shares Outstanding (000):
                               
- Basic
    320,927       331,354       319,501       329,316  
- Diluted
    343,770       342,027       342,024       340,873  
 
                               
Operating Income (Loss) by Segment
                               
 
                               
Electric Transmission & Distribution:
                               
Electric Transmission and Distribution Operations
  $ 118     $ 129     $ 180     $ 183  
Competition Transition Charge
    10             21       5  
 
                       
Total Electric Transmission and Distribution Utility
    128       129       201       188  
Transition Bond Companies
    29       35       60       67  
 
                       
Total Electric Transmission & Distribution
    157       164       261       255  
Natural Gas Distribution
    8       4       137       125  
Competitive Natural Gas Sales and Services
    (4 )     (5 )     52       1  
Interstate Pipelines
    52       101       96       172  
Field Services
    27       32       49       77  
Other Operations
    2       1             3  
 
                       
 
                               
Total
  $ 242     $ 297     $ 595     $ 633  
 
                       
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  
    2007     2008     Fav/(Unfav)     2007     2008     Fav/(Unfav)  
 
                                               
Results of Operations:
                                               
Revenues:
                                               
Electric transmission and distribution utility
  $ 395     $ 419       6 %   $ 742     $ 765       3 %
Transition bond companies
    70       91       30 %     129       154       19 %
 
                                   
Total
    465       510       10 %     871       919       6 %
 
                                   
 
                                               
Expenses:
                                               
Operation and maintenance
    150       167       (11 %)     304       335       (10 %)
Depreciation and amortization
    61       71       (16 %)     124       137       (10 %)
Taxes other than income taxes
    56       52       7 %     113       105       7 %
Transition bond companies
    41       56       (37 %)     69       87       (26 %)
 
                                   
 
                                           
Total
    308       346       (12 %)     610       664       (9 %)
 
                                   
Operating Income
  $ 157     $ 164       4 %   $ 261     $ 255       (2 %)
 
                                   
 
                                               
Operating Income:
                                               
Electric transmission and distribution operations
  $ 118     $ 129       9 %   $ 180     $ 183       2 %
Competition transition charge
    10             (100 %)     21       5       (76 %)
Transition bond companies
    29       35       21 %     60       67       12 %
 
                                   
Total Segment Operating Income
  $ 157     $ 164       4 %   $ 261     $ 255       (2 %)
 
                                   
 
                                               
Electric Transmission & Distribution Operating Data:
                                               
Actual MWH Delivered
                                               
Residential
    6,020,714       6,774,069       13 %     10,678,773       11,177,381       5 %
Total
    19,175,278       20,359,540       6 %     35,835,191       36,929,230       3 %
 
                                               
Weather (average for service area):
                                               
Percentage of 10-year average:
                                               
Cooling degree days
    94 %     111 %     17 %     96 %     113 %     17 %
Heating degree days
    197 %     73 %     (124 %)     114 %     95 %     (19 %)
 
                                               
Average number of metered customers:
                                               
Residential
    1,767,749       1,814,840       3 %     1,760,006       1,808,056       3 %
Total
    2,006,840       2,058,171       3 %     1,998,291       2,050,316       3 %
                                                 
    Natural Gas Distribution  
    Quarter Ended             Six Months Ended        
    June 30,     % Diff     June 30,     % Diff  
    2007     2008     Fav/(Unfav)     2007     2008     Fav/(Unfav)  
Results of Operations:
                                               
Revenues
  $ 576     $ 726       26 %   $ 2,143     $ 2,426       13 %
 
                                   
Expenses:
                                               
Natural gas
    366       512       (40 %)     1,578       1,845       (17 %)
Operation and maintenance
    135       141       (4 %)     282       297       (5 %)
Depreciation and amortization
    38       39       (3 %)     76       78       (3 %)
Taxes other than income taxes
    29       30       (3 %)     70       81       (16 %)
 
                                   
Total
    568       722       (27 %)     2,006       2,301       (15 %)
 
                                   
Operating Income
  $ 8     $ 4       (50 %)   $ 137     $ 125       (9 %)
 
                                   
 
                                               
Natural Gas Distribution Operating Data:
                                               
Throughput data in BCF
                                               
Residential
    20       20             106       104       (2 %)
Commercial and Industrial
    44       47       7 %     126       130       3 %
 
                                   
Total Throughput
    64       67       5 %     232       234       1 %
 
                                   
 
                                               
Weather (average for service area)
                                               
Percentage of 10-year average:
                                               
Heating degree days
    95 %     113 %     18 %     99 %     107 %     8 %
 
                                               
Average number of customers:
                                               
Residential
    2,925,120       2,956,291       1 %     2,935,661       2,965,941       1 %
Commercial and Industrial
    247,550       249,776       1 %     246,564       250,382       2 %
 
                                   
Total
    3,172,670       3,206,067       1 %     3,182,225       3,216,323       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)
                                                 
    Competitive Natural Gas Sales and Services  
    Quarter Ended             Six Months Ended        
    June 30,     % Diff     June 30,     % Diff  
    2007     2008     Fav/(Unfav)     2007     2008     Fav/(Unfav)  
Results of Operations:
                                               
Revenues
  $ 881     $ 1,243       41 %   $ 1,945     $ 2,363       21 %
 
                                   
Expenses:
                                               
Natural gas
    877       1,237       (41 %)     1,875       2,342       (25 %)
Operation and maintenance
    7       10       (43 %)     16       18       (13 %)
Depreciation and amortization
    1                   1       1        
Taxes other than income taxes
          1             1       1        
 
                                   
Total
    885       1,248       (41 %)     1,893       2,362       (25 %)
 
                                   
Operating Income (Loss)
  $ (4 )   $ (5 )     (25 %)   $ 52     $ 1       (98 %)
 
                                   
 
                                               
Competitive Natural Gas Sales and Services Operating Data:
                                               
Throughput data in BCF
    120       129       8 %     275       267       (3 %)
 
                                   
 
                                               
Average number of customers
    7,077       9,186       30 %     7,032       8,840       26 %
 
                                   
                                                 
    Interstate Pipelines  
    Quarter Ended             Six Months Ended        
    June 30,     % Diff     June 30,     % Diff  
    2007     2008     Fav/(Unfav)     2007     2008     Fav/(Unfav)  
Results of Operations:
                                               
Revenues
  $ 121     $ 192       59 %   $ 211     $ 325       54 %
 
                                   
Expenses:
                                               
Natural gas
    24       58       (142 %)     28       73       (161 %)
Operation and maintenance
    29       16       45 %     56       46       18 %
Depreciation and amortization
    11       11             21       23       (10 %)
Taxes other than income taxes
    5       6       (20 %)     10       11       (10 %)
 
                                   
Total
    69       91       (32 %)     115       153       (33 %)
 
                                   
Operating Income
  $ 52     $ 101       94 %   $ 96     $ 172       79 %
 
                                   
 
                                               
Pipelines Operating Data:
                                               
Throughput data in BCF
                                               
Transportation
    274       361       32 %     568       785       38 %
 
                                   
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  
    2007     2008     Fav/(Unfav)     2007     2008     Fav/(Unfav)  
Results of Operations:
                                               
Revenues
  $ 42     $ 62       48 %   $ 81     $ 120       48 %
 
                                   
Expenses:
                                               
Natural gas
    (4 )     8       (300 %)     (7 )     6       (186 %)
Operation and maintenance
    16       18       (13 %)     32       29       9 %
Depreciation and amortization
    3       3             6       6        
Taxes other than income taxes
          1             1       2       (100 %)
 
                                   
Total
    15       30       (100 %)     32       43       (34 %)
 
                                   
Operating Income
  $ 27     $ 32       19 %   $ 49     $ 77       57 %
 
                                   
 
                                               
Field Services Operating Data:
                                               
Throughput data in BCF
                               
Gathering
    100       104       4 %     193       202       5 %
 
                                   
                                                 
    Other Operations  
    Quarter Ended             Six Months Ended        
    June 30,     % Diff     June 30,     % Diff  
    2007     2008     Fav/(Unfav)     2007     2008     Fav/(Unfav)  
Results of Operations:
                                               
Revenues
  $ 3     $ 2       (33 %)   $ 5     $ 5        
Expenses
    1       1             5       2       60 %
 
                                   
Operating Income (Loss)
  $ 2     $ 1       (50 %)   $     $ 3        
 
                                   
Capital Expenditures by Segment
(Millions of Dollars)
(Unaudited)
                                 
    Quarter Ended     Six Months Ended  
    June 30,     June 30,  
    2007     2008     2007     2008  
Capital Expenditures by Segment
                               
Electric Transmission & Distribution
  $ 111     $ 87     $ 221     $ 176  
Natural Gas Distribution
    44       56       77       94  
Competitive Natural Gas Sales and Services
    2       1       4       2  
Interstate Pipelines
    60       42       214       70  
Field Services
    13       28       40       46  
Other Operations
    6       5       17       13  
 
                       
Total
  $ 236     $ 219     $ 573     $ 401  
 
                       
Interest Expense Detail
(Millions of Dollars)
(Unaudited)
                                 
    Quarter Ended     Six Months Ended  
    June 30,     June 30,  
    2007     2008     2007     2008  
Interest Expense Detail
                               
Amortization of Deferred Financing Cost
  $ 12     $ 6     $ 31     $ 12  
Capitalization of Interest Cost
    (7 )     (4 )     (15 )     (7 )
Transition Bond Interest Expense
    32       35       63       68  
Other Interest Expense
    114       111       226       223  
 
                       
Total Interest Expense
  $ 151     $ 148     $ 305     $ 296  
 
                       
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,  
    2007     2008  
ASSETS
       
Current Assets:
               
Cash and cash equivalents
  $ 129     $ 150  
 
           
Other current assets
    2,659       2,448  
 
           
Total current assets
    2,788       2,598  
 
           
 
               
Property, Plant and Equipment, net
    9,740       9,908  
 
           
 
               
Other Assets:
               
Goodwill
    1,696       1,696  
Regulatory assets
    2,993       2,847  
Other non-current assets
    655       1,027  
 
           
Total other assets
    5,344       5,570  
 
           
Total Assets
  $ 17,872     $ 18,076  
 
           
 
               
LIABILITIES AND SHAREHOLDERS’ EQUITY
       
 
               
Current Liabilities:
               
Short-term borrowings
  $ 232     $ 200  
Current portion of transition bond long-term debt
    159       186  
Current portion of other long-term debt
    1,156       123  
Other current liabilities
    2,244       2,304  
 
           
Total current liabilities
    3,791       2,813  
 
           
 
               
Other Liabilities:
               
Accumulated deferred income taxes, net and investment tax credit
    2,266       2,255  
Regulatory liabilities
    828       806  
Other non-current liabilities
    813       883  
 
           
Total other liabilities
    3,907       3,944  
 
           
 
               
Long-term Debt:
               
Transition bond
    2,101       2,485  
Other
    6,263       6,869  
 
           
Total long-term debt
    8,364       9,354  
 
           
 
               
Shareholders’ Equity
    1,810       1,965  
 
           
Total Liabilities and Shareholders’ Equity
  $ 17,872     $ 18,076  
 
           
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,  
    2007     2008  
Cash Flows from Operating Activities:
               
Net income
  $ 200     $ 224  
Adjustments to reconcile net income to net cash provided by operating activities:
               
Depreciation and amortization
    338       360  
Deferred income taxes
    12       12  
Changes in net regulatory assets
    31       14  
Changes in other assets and liabilities
    (164 )     256  
Other, net
    10       2  
 
           
Net Cash Provided by Operating Activities
    427       868  
 
               
Net Cash Used in Investing Activities
    (709 )     (700 )
 
               
Net Cash Provided by (Used in) Financing Activities
    267       (147 )
 
           
 
               
Net Increase (Decrease) in Cash and Cash Equivalents
    (15 )     21  
 
               
Cash and Cash Equivalents at Beginning of Period
    127       129  
 
           
 
               
Cash and Cash Equivalents at End of Period
  $ 112     $ 150  
 
           
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.