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CenterPoint Energy Reports Second Quarter 2005 Earnings

HOUSTON, Aug 08, 2005 /PRNewswire-FirstCall via COMTEX/ -- CenterPoint Energy, Inc. (NYSE: CNP) today reported net income of $54 million, or $0.16 per diluted share, for the second quarter of 2005 compared to $57 million, or $0.19 per diluted share, for the same period of 2004.

(Logo: http://www.newscom.com/cgi-bin/prnh/20020930/CNPLOGO )

Net income for the second quarter of 2005 included an extraordinary gain of $30 million, or $0.08 per diluted share, reflecting an adjustment to the extraordinary loss recorded in the second half of 2004 to write-down generation-related regulatory assets as a result of the final orders issued by the Public Utility Commission of Texas (PUC). In addition, net income for the second quarter of 2005 included a loss of $3 million, or $0.01 per diluted share, from discontinued operations compared to income of $60 million, or $0.20 per diluted share, from discontinued operations for the second quarter of 2004.

Income from continuing operations before extraordinary item for the second quarter of 2005 was $27 million, or $0.09 per diluted share, compared to a loss of $3 million, or $0.01 per diluted share, for the second quarter of 2004. The second quarter of 2005 included after-tax income of $23 million, or $0.06 per diluted share, related to interest on the company's authorized true- up balance.

"Our core energy delivery businesses had another quarter of solid operating and financial performance," said David M. McClanahan, president and chief executive officer of CenterPoint Energy. "We continue to make good progress towards enhancing the performance of each of our core businesses and positioning them for the future. I am also pleased that a final order from the Texas Public Utility Commission will allow us to begin recovering a portion of our stranded cost true-up balance through a competition transition charge to be implemented in the fall."

For the six months ended June 30, 2005, net income was $121 million, or $0.35 per diluted share, compared to $131 million, or $0.42 per diluted share, for the same period of 2004. Net income for the six months ended June 30, 2005, included the extraordinary gain of $30 million, or $0.08 per diluted share, reflecting the adjustment to the extraordinary loss discussed above. In addition, net income for the six months ended June 30, 2005, included a loss of $3 million, or $0.01 per diluted share, from discontinued operations compared to income of $105 million, or $0.34 per diluted share, from discontinued operations for the same period of 2004.

Income from continuing operations before extraordinary item for the six months ended June 30, 2005, was $94 million, or $0.28 per diluted share, compared to $26 million, or $0.08 per diluted share, for the same period of 2004. The six months ended June 30, 2005, included after-tax income of $45 million, or $0.13 per diluted share, related to interest on the company's authorized true-up balance.

OPERATING INCOME BY SEGMENT DETAILED

    Electric Transmission & Distribution

The electric transmission & distribution segment reported operating income of $122 million in the second quarter of 2005, consisting of $113 million for the regulated electric transmission & distribution utility (TDU) and $9 million for the transition bond company, which is an amount sufficient to pay interest on the transition bonds. Operating income for the second quarter of 2004 totaled $127 million, consisting of $118 million for the TDU and $9 million for the transition bond company.

The TDU's revenues continued to benefit from solid customer growth, with over 48,000 metered customers added since June 30, 2004. Revenues also increased from favorable weather, increased usage and higher transmission cost recovery. Operation and maintenance expenses for the second quarter of 2004 reflected the impact of a $15 million partial reversal of a reserve related to the final fuel reconciliation of the formerly integrated electric utility. Excluding this impact, operation and maintenance expenses were $13 million greater than the prior year primarily due to higher tree trimming and transmission costs. Reduced pension expenses partially offset other expense increases. Taxes other than income taxes increased primarily due to higher state and local taxes.

Operating income for the six months ended June 30, 2005, was $202 million, consisting of $184 million for the TDU and $18 million for the transition bond company. Operating income for the same period of 2004 totaled $212 million, consisting of $193 million for the TDU and $19 million for the transition bond company.

Natural Gas Distribution

The natural gas distribution segment reported operating income of $19 million for the second quarter of 2005, compared to $23 million for the same period of 2004. The impacts of rate increases, continued customer growth with the addition of nearly 47,000 customers since June 30, 2004, and higher income from the company's competitive natural gas sales business were offset by decreased throughput. Operation and maintenance expenses remained flat in the second quarter of 2005 compared to the same period of 2004, primarily due to a decrease in benefit and pension expenses and the capitalization of previously incurred restructuring expenses as allowed by a recent regulatory order, which offset other expense increases. Depreciation expense increased in the quarter compared to the prior year due to higher plant balances.

Operating income for the six months ended June 30, 2005, was $158 million compared to $140 million for the same period of 2004.

Pipelines and Gathering

The pipelines and gathering segment reported operating income of $52 million for the second quarter of 2005 compared to $42 million for the same period of 2004. The improvement in operating income for the quarter, largely driven by continuing favorable market dynamics, resulted primarily from higher operating margins in the pipeline business driven by increased demand for transportation and ancillary services. In addition, the company's core gas gathering operations benefited from increased throughput and demand for its services.

Operating income for the six months ended June 30, 2005, was $116 million compared to $87 million for the same period of 2004.

Other Operations

The company's other operations reported an operating loss of $7 million for the second quarter of 2005 compared to an operating loss of $6 million for the same period of 2004.

The operating loss for the six months ended June 30, 2005, was $14 million compared to an operating loss of $13 million for the same period of 2004.

PARTIAL RECOVERY OF TRUE-UP BALANCE

On July 14, 2005, the company received an order from the PUC allowing it to impose a competition transition charge (CTC) on retail electric providers to collect a portion of its approved true-up balance totaling approximately $570 million over 14 years, plus interest at an annual rate of 11.075 percent. Based on the accrual of interest provided for in the CTC order, the company expects that this amount will increase to approximately $600 million by the end of the third quarter, which is when the CTC is expected to be implemented. The CTC order also allows the company to collect approximately $24 million of rate case expenses over three years. The company cannot implement the CTC until the PUC takes final action on the motions for rehearing.

NEW CREDIT FACILITY

In June 2005, the company's natural gas distribution, pipelines and gathering operations subsidiary, CenterPoint Energy Resources, Corp. (CERC), closed on a five-year, $400 million revolving bank credit facility, replacing a three-year, $250 million facility due to mature in 2007. The new facility has a fully drawn cost of LIBOR plus 65 basis points at existing credit ratings, versus LIBOR plus 150 basis points for the facility it replaced.

WEBCAST OF EARNINGS CONFERENCE CALL

CenterPoint Energy's management will host an earnings conference call on Monday, August 8, 2005, at 10:30 a.m. Central time or 11:30 a.m. Eastern time. Interested parties may listen to a live, audio broadcast of the conference call at http://www.CenterPointEnergy.com/investors/events . A replay of the call can be accessed approximately two hours after the completion of the call, and will be archived on the web site for at least one year.

CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution and sales, interstate pipeline and gathering operations. The company serves nearly five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. Assets total approximately $16 billion. With more than 9,000 employees, CenterPoint Energy and its predecessor companies have been in business for more than 130 years. For more information, visit the Web site at http://www.CenterPointEnergy.com .

This news release includes forward-looking statements. Actual events and results may differ materially from those projected. The statements in this news release regarding future financial performance and results of operations and other statements that are not historical facts are forward-looking statements. Factors that could affect actual results include the timing and outcome of the true-up proceeding and any legal proceedings related thereto, the timing and impact of future regulatory and legislative 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, 2004, Form 10-Qs for the periods ended March 31, 2005 and June 30, 2005, and other filings with the Securities and Exchange Commission.

CenterPoint Energy, Inc. and Subsidiaries
                      Statements of Consolidated Income
                            (Thousands of Dollars)
                                 (Unaudited)

                                       Quarter Ended       Six Months Ended
                                          June 30,              June 30,
                                  ---------------------  ---------------------
                                      2005       2004       2005       2004
                                  ----------  ---------  ---------  ----------

    Revenues:
      Electric Transmission &
       Distribution                 $414,057   $375,250   $759,051   $705,563
      Natural Gas Distribution     1,429,692  1,244,985  3,759,924  3,376,317
      Pipelines and Gathering        125,015    113,397    245,796    215,800
      Other Operations                 4,010      2,891     10,689      5,780
      Eliminations                   (40,518)   (36,141)   (81,396)   (75,260)
         Total                     1,932,256  1,700,382  4,694,064  4,228,200

    Expenses:
      Natural gas                  1,192,626  1,010,613  3,140,962  2,772,490
      Operation and maintenance      324,776    297,638    637,847    613,480
      Depreciation and amortization  135,837    120,074    265,610    236,292
      Taxes other than income taxes   92,705     86,176    187,366    180,164
         Total                     1,745,944  1,514,501  4,231,785  3,802,426
    Operating Income                 186,312    185,881    462,279    425,774

    Other Income (Expense):
      Gain (loss) on Time Warner
       investment                    (18,177)    15,581    (59,291)    (8,872)
      Gain (loss) on indexed debt
       securities                     23,819    (17,891)    63,348      9,123
      Interest and other finance
       charges                      (179,652)  (188,984)  (352,992)  (371,957)
      Interest on transition bonds    (9,077)    (9,547)   (18,297)   (19,221)
      Return on true-up balance       35,475        ---     69,557        ---
      Other - net                      6,936     12,425     10,748     13,932
         Total                      (140,676)  (188,416)  (286,927)  (376,995)

    Income (Loss) from Continuing
     Operations Before Income Taxes
     and Extraordinary Item           45,636     (2,535)   175,352     48,779

    Income Tax Expense               (17,931)      (191)   (80,995)   (22,607)

    Income (Loss) from Continuing
     Operations Before
     Extraordinary Item               27,705     (2,726)    94,357     26,172

    Discontinued Operations:
      Income (Loss) from Texas
       Genco, net of tax              (2,988)    75,636     10,685    131,922
      Minority Interest related to
       Texas Genco, net of tax           ---    (15,258)       ---    (26,855)
      Loss on Disposal of Texas
       Genco, net of tax                (735)       ---    (13,972)       ---
         Total                        (3,723)    60,378     (3,287)   105,067

    Income Before Extraordinary
     Item                             23,982     57,652     91,070    131,239

    Extraordinary Item, net of tax    30,441        ---     30,441        ---

    Net Income                       $54,423    $57,652   $121,511   $131,239

   Reference is made to the Notes to the Consolidated Financial Statements
   contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.



                  CenterPoint Energy, Inc. and Subsidiaries
             Selected Data From Statements of Consolidated Income
               (Thousands of Dollars, Except Per Share Amounts)
                                 (Unaudited)

                                        Quarter Ended       Six Months Ended
                                          June 30,              June 30,
                                     ------------------    ------------------
                                       2005       2004      2005       2004
                                     --------  --------    -------    -------

    Basic Earnings Per
     Common Share:
      Income (Loss) from
       Continuing Operations          $0.09     $(0.01)    $0.30      $0.09
      Income (Loss) from
       Discontinued Operations        (0.01)      0.20     (0.01)      0.34
      Extraordinary Item,
       net of tax                      0.10        ---      0.10        ---
      Net Income                      $0.18      $0.19     $0.39      $0.43

    Diluted Earnings Per Common
     Share:
      Income from Continuing
       Operations                     $0.09     $(0.01)    $0.28      $0.08
      Income (Loss) from
       Discontinued Operations        (0.01)      0.20     (0.01)      0.34
      Extraordinary Item, net of
       tax                             0.08        ---      0.08        ---
      Net Income                      $0.16      $0.19     $0.35      $0.42

    Dividends Declared per
     Common Share                     $0.07 (A)  $0.10     $0.27 (A)  $0.20

    Weighted Average Common
     Shares Outstanding (000):
      - Basic                       309,098    307,250   308,786    306,631
      - Diluted                     361,436    309,638   361,076    308,977


    Operating Income (Loss) by
     Segment

    Electric Transmission &
     Distribution:
      Transmission & Distribution
       Operations                  $113,190   $117,822  $183,799   $193,129
      Transition Bond Company         8,932      9,498    18,015     19,106
         Total Electric Transmission
          & Distribution            122,122    127,320   201,814    212,235
    Natural Gas Distribution         19,038     22,775   158,531    139,399
    Pipelines and Gathering          52,079     42,236   116,110     87,092
    Other Operations                 (6,927)    (6,450)  (14,176)   (12,952)

    Total                          $186,312   $185,881  $462,279   $425,774


     (A) On January 26, 2005, the Company's board of directors declared a
         dividend of $0.10 per share of common stock payable on March 10, 2005
         to shareholders of record as of the close of business on
         February 16, 2005.  On March 3, 2005, the Company's board of
         directors declared a dividend of $0.10 per share of common stock
         payable on March 31, 2005 to shareholders of record as of the close
         of business on March 16, 2005.  This additional first quarter
         dividend was declared in lieu of the regular second quarter dividend
         to address technical restrictions that might limit the Company's
         ability to pay a regular dividend during the second quarter of this
         year.  On June 2, 2005, the Company's board of directors declared a
         dividend of $0.07 per share of common stock payable on June 30, 2005
         to shareholders of record as of the close of business on June 15,
         2005.

   Reference is made to the Notes to the Consolidated Financial Statements
   contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.



                  CenterPoint Energy, Inc. and Subsidiaries
                       Results of Operations by Segment
                            (Millions of Dollars)
                                 (Unaudited)

                                       Electric Transmission & Distribution
                                    ------------------------------------------
                                      Quarter Ended     Six Months Ended
                                       June 30,    % Diff    June 30,  % Diff
                                    --------------   Fav/  -----------   Fav/
                                      2005   2004  (Unfav) 2005   2004 (Unfav)
                                    ------- ------ ------- ----- ----- -------
    Results of Operations:

    Electric transmission and
     distribution revenues            $388   $357     9%   $711   $672    6%

    Electric transmission and
     distribution expenses:
       Operation and maintenance       153    125   (22%)   291    258  (13%)
       Depreciation and amortization    64     63    (2%)   128    123   (4%)
       Taxes other than income taxes    58     51   (14%)   108     98  (10%)
         Total electric transmission
          and distribution expenses    275    239   (15%)   527    479  (10%)
    Operating Income - Electric
     transmission and distribution
     utility                           113    118    (4%)   184    193   (5%)
    Operating Income - Transition
     bond company                        9      9    ---     18     19   (5%)
    Total Segment Operating Income    $122   $127    (4%)  $202   $212   (5%)


    Electric Transmission
     & Distribution          Quarter Ended            Six Months Ended
    Operating Data:             June 30,                   June 30,
                        ---------------------       ---------------------
    Actual MWH Delivered    2005       2004            2005       2004
                        ----------  ---------       ---------- ----------
    Residential          6,593,895  5,800,958  14%  10,735,559 10,202,783  5%
    Total               18,956,313 18,545,202   2%  34,782,627 34,065,288  2%

    Weather (average for
     service area):
    Percentage of normal:
       Cooling degree
        days               103%       100%      3%     105%        100%    5%
       Heating degree
        days                47%       100%    (53%)     76%         86%  (10%)

    Average number of
     metered customers:
       Residential       1,675,573  1,634,202   3%   1,668,447  1,628,074  2%
       Total             1,904,090  1,856,846   3%   1,895,556  1,849,762  2%

   Reference is made to the Notes to the Consolidated Financial Statements
   contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.



                  CenterPoint Energy, Inc. and Subsidiaries
                       Results of Operations by Segment
                            (Millions of Dollars)
                                 (Unaudited)

                                      Natural Gas Distribution
                           ---------------------------------------------------
                              Quarter Ended             Six Months Ended
                                 June 30,    % Diff         June 30,   % Diff
                           -----------------   Fav/     --------------   Fav/
                              2005      2004 (Unfav)    2005       2004(Unfav)
                           --------    ----- -------   ------     ----- ------
    Results of Operations:
    Revenues                $1,430     $1,245  15%     $3,760     $3,376  11%
    Expenses:
      Natural gas            1,213      1,027 (18%)     3,188      2,816 (13%)
      Operation
       and maintenance         133        133  ---        273        283   4%
      Depreciation
       and amortization         39         35 (11%)        77         70 (10%)
      Taxes other than
       income taxes             26         27   4%         64         67   4%
         Total               1,411      1,222 (15%)     3,602      3,236 (11%)
    Operating Income           $19        $23 (17%)      $158       $140  13%

    Natural Gas Distribution
     Operating Data:
    Throughput data in BCF
    Residential                 21         21  ---         98        106  (8%)
    Commercial and Industrial   43         49 (12%)       120        132  (9%)
    Non-rate regulated         148        167 (11%)       331        306   8%
    Elimination                (29)       (63) 54%        (78)       (73) (7%)
      Total Throughput         183        174   5%        471        471  ---


    Weather (average for
     service area)
    Percentage of normal:
      Heating degree days       86%        92% (6%)        91%        96% (5%)


    Average number
     of customers:
      Residential        2,833,773  2,793,297   1%  2,842,645  2,802,379   1%
      Commercial
       and Industrial      246,032    242,111   2%    247,429    244,388   1%
      Non-rate regulated     6,533      6,265   4%      6,522      6,228   5%
         Total           3,086,338  3,041,673   1%  3,096,596  3,052,995   1%




                                             Pipelines and Gathering
                                   ------------------------------------------
                                    Quarter Ended       Six Months Ended
                                       June 30,   % Diff    June 30,   % Diff
                                   --------------   Fav/  -------------  Fav/
                                     2005   2004  (Unfav)  2005   2004 (Unfav)
                                   ------- ------  ------ ------ ------ ------
    Results of Operations:
    Revenues                          $125   $113    11%   $246   $216    14%
    Expenses:
      Natural gas                       18     18    ---     25     28    11%
      Operation and maintenance         40     37    (8%)    74     70    (6%)
      Depreciation and amortization     11     11    ---     22     22    ---
      Taxes other than income taxes      4      5    20%      9      9    ---
        Total                           73     71    (3%)   130    129    (1%)
    Operating Income                   $52    $42    24%   $116    $87    33%


    Pipelines and Gathering
     Operating Data:
    Throughput data in BCF
    Natural Gas Sales                    3      4   (25%)     4      7   (43%)
    Transportation                     230    207    11%    501    477     5%
    Gathering                           87     79    10%    170    154    10%
    Elimination                         (2)    (3)   33%     (3)    (5)   40%
      Total Throughput                 318    287    11%    672    633     6%

   Reference is made to the Notes to the Consolidated Financial Statements
   contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.



                    CenterPoint Energy, Inc. and Subsidiaries
                         Results of Operations by Segment
                              (Millions of Dollars)
                                   (Unaudited)

                                             Other Operations
                                   -------------------------------------------
                                    Quarter Ended       Six Months Ended
                                       June 30,   % Diff     June 30,   % Diff
                                   --------------   Fav/ --------------  Fav/
                                     2005   2004  (Unfav)   2005   2004(Unfav)
                                   ------- ------  ----- -------- ----- ------
    Results of Operations:
    Revenues                            $4     $3    33%    $11     $6    83%
    Expenses                            11      9   (22%)    25     19   (32%)
    Operating Loss                     $(7)   $(6)  (17%)  $(14)  $(13)   (8%)



                         Capital Expenditures by Segment
                              (Millions of Dollars)
                                   (Unaudited)

                                              Quarter Ended   Six Months Ended
                                                 June 30,          June 30,
                                               2005     2004     2005     2004
    Capital Expenditures by Segment
      Electric Transmission & Distribution      $87      $52     $142      $94
      Natural Gas Distribution                   56       43       96       80
      Pipelines and Gathering                    31        9       53       24
      Other Operations                            5        7       10       12
      Total                                    $179     $111     $301     $210



                             Interest Expense Detail
                              (Millions of Dollars)
                                   (Unaudited)

                                             Quarter Ended    Six Months Ended
                                                June 30,          June 30,
                                             --------------   ----------------
                                             2005     2004     2005     2004
                                             -----   ------   ------   -------
    Interest Expense Detail
      Amortization of Deferred Financing
       Cost                                   $19      $22      $39      $44
      Capitalization of Interest Cost          (1)      (1)      (2)      (2)
      Transition Bond Interest Expense          9        9       18       18
      Other Interest Expense                  161      168      316      331
      Total Interest Expense                  188      198      371      391

      Amortization of Deferred Financing
       Cost
        Reclassified to Discontinued
         Operations                           ---        1      ---        2
      Other Interest Reclassified to
       Discontinued Operations                ---       11      ---       22
        Total Interest Reclassified to
         Discontinued Operations (A)          ---       12      ---       24

      Interest Expense Incurred by
       Discontinued Operations                ---      ---        1      ---
        Total Expense in Discontinued
         Operations                           ---       12        1       24

        Total Interest Expense Incurred      $188     $210     $372     $415


     (A) In accordance with Emerging Issues Task Force Issue No. 87-24
         Allocation of Interest to Discontinued Operations", in 2004, we have
         reclassified interest to discontinued operations of Texas Genco based
         on net proceeds received from the sale of Texas Genco of
         $2.5 billion, and have applied the proceeds to the amount of debt
         assumed to be paid down in 2004 according to the terms of the
         respective credit facilities in effect for that period.  In periods
         where only the term loan was assumed to be repaid, the actual
         interest paid was reclassified.  In periods where a portion of the
         revolver was assumed to be repaid, the percentage of that portion of
         the revolver to the total outstanding balance was calculated, and
         that percentage was applied to the actual interest paid in those
         periods to compute the amount of interest reclassified.

         Total interest expense was $188 million and $210 million for the
         three months ended June 30, 2005 and 2004, respectively, and $372
         million and $415 million for the six months ended June 30, 2005 and
         2004, respectively.  Interest expense of $12 million for the three
         months ended June 30, 2004, and $24 million for the six months ended
         June 30, 2004, was reclassified to discontinued operations of Texas
         Genco.

   Reference is made to the Notes to the Consolidated Financial Statements
   contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.



                    CenterPoint Energy, Inc. and Subsidiaries
                      Condensed Consolidated Balance Sheets
                             (Thousands of Dollars)
                                   (Unaudited)

                                                 June 30,        December 31,
                                                   2005              2004
                  ASSETS
    Current Assets:
      Cash and cash equivalents                   $408,162          $164,645
      Other current assets                       1,576,635         2,158,111
      Current assets of discontinued operations        ---           513,768
          Total current assets                   1,984,797         2,836,524

    Property, Plant and Equipment, net           8,273,291         8,186,393

    Other Assets:
      Goodwill, net                              1,744,252         1,740,510
      Regulatory assets                          2,928,968         3,349,944
      Other non-current assets                     958,383           997,428
      Non-current assets of discontinued
       operations                                      ---         1,051,158
          Total other assets                     5,631,603         7,139,040
            Total Assets                       $15,889,691       $18,161,957

       LIABILITIES AND SHAREHOLDERS' EQUITY

    Current Liabilities:
      Current portion of transition bond
       long-term debt                              $49,352           $46,806
      Current portion of other long-term debt    1,748,083         1,789,182
      Other current liabilities                  1,840,224         2,902,238
      Current liabilities of discontinued
       operations                                      ---           448,974
          Total current liabilities              3,637,659         5,187,200

    Other Liabilities:
      Accumulated deferred income taxes,
       net and investment tax credit             2,522,664         2,468,833
      Regulatory liabilities                       744,260         1,081,370
      Other non-current liabilities                753,072           705,643
      Non-current liabilities of
       discontinued operations                         ---           420,393
          Total other liabilities                4,019,996         4,676,239

    Long-term Debt:
      Transition bond                              610,462           628,903
      Other                                      6,440,756         6,564,113
          Total long-term debt                   7,051,218         7,193,016

    Shareholders' Equity                         1,180,818         1,105,502
          Total Liabilities and
           Shareholders' Equity                $15,889,691       $18,161,957

   Reference is made to the Notes to the Consolidated Financial Statements
   contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.



                  CenterPoint Energy, Inc. and Subsidiaries
               Condensed Statements of Consolidated Cash Flows
                            (Thousands of Dollars)
                                 (Unaudited)

                                                   Six Months Ended June 30,
                                                    2005              2004

    Cash Flows from Operating Activities:
      Net income                                  $121,511          $131,239
      Discontinued operations, net of tax            3,287          (105,067)
      Extraordinary item, net of tax               (30,441)              ---
      Income from continuing operations             94,357            26,172
      Adjustments to reconcile income from
       continuing operations to net cash
       provided by operating activities:
        Depreciation and amortization              305,131           279,957
        Deferred income taxes and investment
         tax credit                                 44,321            52,943
        Changes in net regulatory assets
         and liabilities                          (132,449)         (157,728)
        Changes in other assets and liabilities   (211,379)          253,248
        Other, net                                   6,166            21,045
    Net Cash Provided by Operating Activities      106,147           475,637

    Net Cash Provided by (Used in)
     Investing Activities                          397,549          (187,953)

    Net Cash Used in Financing Activities         (260,179)         (278,254)

    Net Increase in Cash and Cash Equivalents      243,517             9,430

    Cash and Cash Equivalents at
     Beginning of Period                           164,645            86,922

    Cash and Cash Equivalents at End of Period    $408,162           $96,352

   Reference is made to the Notes to the Consolidated Financial Statements
   contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.

SOURCE CenterPoint Energy, Inc.

media, Leticia Lowe, +1-713-207-7702, or investors, Marianne Paulsen,
+1-713-207-6500, both of CenterPoint Energy, Inc.
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