CenterPoint Energy, Inc. Logo

Print Print page | E-mail E-mail page | PDF Download PDF | Add to Briefcase Add to briefcase
« Previous Release | Next Release »



CenterPoint Energy Reports Second Quarter 2006 Earnings

HOUSTON, Aug 03, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- CenterPoint Energy, Inc. (NYSE: CNP) today reported net income of $194 million, or $0.61 per diluted share, for the second quarter of 2006 compared to $54 million, or $0.16 per diluted share, for the same period of 2005. Income from continuing operations before extraordinary item for the second quarter of 2006 was also $194 million, or $0.61 per diluted share, compared to $27 million, or $0.09 per diluted share, for the second quarter of 2005.

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

Agreements have been reached on the terms of two settlements that had an impact on net income for the second quarter of 2006. The first was an agreement with the Internal Revenue Service (IRS) on terms of a settlement regarding the tax treatment of the company's Zero Premium Exchangeable Subordinated Notes (ZENS) and its former Automatic Common Exchange Securities (ACES). This agreement, which is subject to approval by the Joint Committee on Taxation of the U. S. Congress, resulted in a reduction to the company's previously accrued tax and related interest reserves, adding $119 million ($0.38 per diluted share) to income. The second was an agreement settling all issues related to the remand to the Texas Public Utility Commission (PUC) of the company's 2001 unbundled cost of service order (UCOS) which reduced income by $21 million after-tax, or $0.07 per diluted share.

Net income for the second quarter of 2005 included an extraordinary gain of $30 million, or $0.08 per diluted share, reflecting an adjustment to the extraordinary loss recorded in the second half of 2004 to write down generation-related regulatory assets. In addition, net income for the second quarter of 2005 included a loss of $3 million, or $0.01 per diluted share, from discontinued operations.

For the six months ended June 30, 2006, net income was $282 million, or $0.89 per diluted share, compared to $121 million, or $0.35 per diluted share, for the same period of 2005. Income from continuing operations before extraordinary item for the six months ended June 30, 2006, was $282 million, or $0.89 per diluted share, compared to $94 million, or $0.28 per diluted share, for the same period of 2005. The same factors described above for the second quarter periods impacted the six-month periods for 2006 and 2005.

"I'm very pleased with the overall performance of our business and the progress we are achieving," said David M. McClanahan, president and chief executive officer of CenterPoint Energy. "This continued strong performance, combined with the resolution of a number of legacy issues, including our recent settlements of certain tax and regulatory matters, positions the company well for the future."

OPERATING INCOME BY SEGMENT DETAILED

Electric Transmission & Distribution

The electric transmission & distribution segment reported operating income of $151 million in the second quarter of 2006, consisting of $119 million for the regulated electric transmission & distribution utility (TDU) and $32 million related to transition bonds, which is an amount sufficient to pay interest on the bonds. Operating income for the second quarter of 2005 totaled $122 million, consisting of $113 million for the TDU and $9 million related to transition bonds.

The TDU's revenues continued to benefit from solid customer growth, with nearly 60,000 metered customers added since June 2005. Revenues also increased due to the competition transition charge (CTC) implemented in September of 2005, and favorable weather. More than offsetting the TDU's revenue growth was the impact related to the resolution of the 2001 UCOS order, which was recorded as a reduction to revenues of $32 million. Operation and maintenance expenses decreased primarily due to lower employee benefit expenses.

Operating income for the six months ended June 30, 2006, was $261 million, consisting of $197 million for the TDU, which includes the $32 million adverse impact related to the resolution of the 2001 UCOS order, and $64 million related to transition bonds. Operating income for the same period of 2005 totaled $202 million, consisting of $184 million for the TDU and $18 million related to transition bonds.

Natural Gas Distribution

The natural gas distribution segment reported an operating loss of $2 million for the second quarter of 2006 compared to operating income of $9 million for the same period of 2005. Higher revenues from rate increases and rate design changes, along with the addition of nearly 32,000 customers since June 2005, were partially offset by decreased customer usage. Operation and maintenance expenses increased primarily due to costs associated with staff reductions, increased bad debt expense due to high natural gas prices, and a write-off of certain rate case expenses.

Operating income for the six months ended June 30, 2006, was $101 million compared to $132 million for the same period of 2005. In addition to the factors noted above, operating income for the six months ended June 30, 2006, was adversely affected by unfavorable weather.

Competitive Natural Gas Sales and Services

The competitive natural gas sales and services segment reported operating income of $7 million for the second quarter of 2006 compared to $10 million for the same period of 2005. Operating income from higher sales to utilities and favorable basis differentials across the pipeline capacity that the company controls was more than offset by a charge of $17 million to reflect the write-down of natural gas inventory to the lower of average cost or market. The company purchases and stores natural gas to meet certain future sales requirements and enters into derivative contracts to hedge the economic value of the future sales. Therefore, operating income in the future periods, when these sales occur, is expected to be higher as a result of the inventory write-downs taken in the first two quarters of this year.

Operating income for the six months ended June 30, 2006, was $32 million compared to $26 million for the same period of 2005.

Pipelines and Field Services

The pipelines and field services segment reported operating income of $61 million for the second quarter of 2006 compared to $52 million for the same period of 2005. This segment's businesses continue to benefit from favorable dynamics in the markets for natural gas gathering and transportation services along the Gulf Coast and Mid-Continent regions where they operate. Within this segment, the pipeline business achieved higher operating income ($40 million vs. $35 million) resulting from increased demand for transportation due to favorable basis differentials across the system and higher demand for ancillary services. The field services business achieved higher operating income ($21 million vs. $17 million) driven by increased throughput, greater demand for ancillary services and higher commodity prices. In addition, this business recorded equity income of $2 million in the second quarter of 2006 ($1 million for the same period in 2005) from its 50 percent interest in a jointly-owned gas processing plant. These amounts are included in Other - net under the Other Income (Expense) caption.

Operating income for the six months ended June 30, 2006, was $134 million compared to $116 million for the same period of 2005. The pipeline business achieved operating income of $89 million for the six months ended June 30, 2006, compared to $83 million for the same period of 2005. The field services business achieved operating income of $45 million for the six months ended June 30, 2006, compared to $33 million for the same period of 2005. Equity income from the jointly-owned gas processing plant was $5 million for the six months ended June 30, 2006, compared to $3 million for the same period of 2005.

Other Operations

The company's other operations reported operating income of $3 million for the second quarter of 2006 compared to an operating loss of $7 million for the same period of 2005.

For the six months ended June 30, 2006, other operations reported an operating loss of $2 million compared to an operating loss of $14 million for the same period of 2005.

OTHER SECOND QUARTER 2006 EVENTS

SETTLEMENT OF ZENS AND ACES

During the second quarter of 2006, the company reached agreement with the IRS on a settlement regarding the ZENS and ACES issues and signed a Closing Agreement on July 17, 2006, for the tax years 1999 through 2029 with respect to the ZENS. The settlement and Closing Agreement are subject to approval by the Joint Committee on Taxation of the U.S. Congress. Under the terms of the settlement, the company will pay approximately $64 million in previously accrued taxes associated with the ACES and the ZENS and will reduce its future interest deductions associated with the ZENS.

As a result of the agreement, the company reduced its previously accrued tax and related interest reserves by $119 million in the second quarter of 2006, and will no longer accrue a quarterly reserve.

SETTLEMENT OF CENTERPOINT ENERGY HOUSTON ELECTRIC (CEHE) RATE CASE AND 2001 UCOS REMAND

On July 31, 2006, CEHE entered into a settlement agreement with parties to its pending rate case. Under the terms of the settlement, which must be approved by the PUC, CEHE's base rate revenues will be reduced by approximately $58 million per year. In addition, CEHE will increase its spending on energy efficiency programs by $10 million per year and will fund $10 million per year for programs providing financial assistance to qualified low-income customers in its service territory. The settlement includes a base rate freeze through June of 2010.

The settlement also resolved all issues related to the remand of the PUC's order in CEHE's 2001 UCOS case. Under the terms of the settlement, CEHE agreed to provide rate credits of approximately $8 million per year to retail and wholesale customers until a total of $32 million has been credited. This impact was recorded in the second quarter of 2006.

DIVIDEND DECLARATION

On July 27, 2006, CenterPoint Energy's board of directors declared a regular quarterly cash dividend of $0.15 per share of common stock payable on September 8, 2006, to shareholders of record as of the close of business on August 16, 2006.

OUTLOOK FOR 2006

CenterPoint Energy continues to expect diluted earnings per share for 2006 to be in the range of $0.90 to $1.00. This guidance includes an estimated impact of the settlement of CEHE's rate case but excludes the one-time impact of $0.38 per diluted share related to the company's settlement regarding the tax treatment of the ZENS and ACES and the one-time impact of $0.07 per diluted share related to the settlement of the 2001 UCOS order. This guidance takes into consideration various economic and operational assumptions related to the business segments in which the company operates. In particular, the company has made certain assumptions regarding the impact to earnings of various other regulatory proceedings but cannot predict the ultimate outcome of any of those proceedings. In providing this guidance, the company has not projected the impact of any potential changes in accounting standards, any impact from acquisitions or divestitures, or the outcomes of pending legal proceedings related to CEHE's true-up appeal.

WEBCAST OF EARNINGS CONFERENCE CALL

CenterPoint Energy's management will host an earnings conference call on Thursday, August 3, 2006, at 10:30 a.m. Central time or 11:30 a.m. Eastern time. Interested parties may listen to a live audio broadcast of the conference call at http://www.CenterPointEnergy.com/investors/events . A replay of the call can be accessed approximately two hours after the completion of the call and will be archived on the web site for at least one year.

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

This news release includes forward-looking statements. Actual events and results may differ materially from those projected. The statements in this news release regarding future financial performance and results of operations and other statements that are not historical facts are forward-looking statements. Factors that could affect actual results include the timing and outcome of appeals from the true-up proceedings, the timing and impact of future regulatory, legislative and IRS decisions, effects of competition, weather variations, changes in CenterPoint Energy's or its subsidiaries' business plans, financial market conditions, the timing and extent of changes in commodity prices, particularly natural gas, the impact of unplanned facility outages, and other factors discussed in CenterPoint Energy's and its subsidiaries' Form 10-Ks for the period ended December 31, 2005, Form 10-Qs for the periods ended March 31, 2006, and June 30, 2006, and other filings with the Securities and Exchange Commission.



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

                                            Quarter Ended   Six Months Ended
                                              June 30,           June 30,
                                           ----------------------------------
                                            2005     2006     2005     2006
                                           -------  -------  -------  -------
    Revenues:
      Electric Transmission & Distribution   $414     $456     $759     $841
      Natural Gas Distribution                541      549    1,870    2,029
      Competitive Natural Gas Sales and
       Services                               845      750    1,770    1,913
      Pipelines and Field Services            125      135      246      260
      Other Operations                          4        5       11        9
      Eliminations                            (87)     (52)    (219)    (132)
        Total                               1,842    1,843    4,437    4,920

    Expenses:
      Natural gas                           1,103    1,035    2,884    3,228
      Operation and maintenance               325      340      638      671
      Depreciation and amortization           136      153      266      293
      Taxes other than income taxes            92       95      187      202
        Total                               1,656    1,623    3,975    4,394
    Operating Income                          186      220      462      526

    Other Income (Expense):
      Gain (Loss) on Time Warner investment   (18)      11      (59)      (3)
      Gain (Loss) on indexed debt
       securities                              24      (11)      63       (1)
      Interest and other finance charges     (180)    (118)    (353)    (233)
      Interest on transition bonds             (9)     (33)     (18)     (66)
      Return on true-up balance                35      ---       69      ---
      Other - net                               7        9       11       15
        Total                                (141)    (142)    (287)    (288)

    Income from Continuing Operations
     Before Income Taxes and
     Extraordinary Item                        45       78      175      238

    Income Tax (Expense) Benefit              (18)     116      (81)      44

    Income from Continuing Operations
     Before Extraordinary Item                 27      194       94      282

    Discontinued Operations:
      Income (Loss) from Texas Genco, net
       of tax                                  (3)     ---       11      ---
      Loss on Disposal of Texas Genco, net
       of tax                                 ---      ---      (14)     ---
    Total                                      (3)     ---       (3)     ---

    Income Before Extraordinary Item           24      194       91      282

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

    Net Income                                $54     $194     $121     $282

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



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

                                             Quarter Ended   Six Months Ended
                                                June 30,          June 30,
                                           -----------------------------------
                                             2005     2006     2005     2006
                                           --------  -------  -------  -------
    Basic Earnings Per Common Share:
      Income from Continuing Operations      $0.09    $0.62    $0.30    $0.91
      Loss from Discontinued Operations      (0.01)     ---    (0.01)     ---
      Extraordinary item, net of tax          0.10      ---     0.10      ---
      Net Income                             $0.18    $0.62    $0.39    $0.91

    Diluted Earnings Per Common Share:
      Income from Continuing Operations      $0.09    $0.61    $0.28    $0.89
      Loss from Discontinued Operations      (0.01)     ---    (0.01)     ---
      Extraordinary item, net of tax          0.08      ---     0.08      ---
      Net Income                             $0.16    $0.61    $0.35    $0.89

    Dividends Declared per Common Share      $0.07    $0.15    $0.27    $0.30

    Weighted Average Common Shares
     Outstanding (000):
      - Basic                              309,098  311,440  308,786  311,145
      - Diluted                            361,436  316,816  361,076  317,744


    Operating Income (Loss) by Segment

      Electric Transmission & Distribution:
        Transmission & Distribution
         Operations                           $113     $119     $184     $197
        Transition Bond Companies                9       32       18       64
          Total Electric Transmission &
           Distribution                        122      151      202      261
      Natural Gas Distribution                   9       (2)     132      101
      Competitive Natural Gas Sales and
       Services                                 10        7       26       32
      Pipelines and Field Services              52       61      116      134
      Other Operations                          (7)       3      (14)      (2)

      Total                                   $186     $220     $462     $526

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



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

                                          Electric Transmission & Distribution
                                          ------------------------------------
                                                Quarter Ended       % Diff
                                                    June 30,         Fav/
                                          ------------------------
                                               2005         2006    (Unfav)
                                          -----------    ---------  -------
    Results of Operations:
    Revenues:
      Electric transmission and distribution
       utility                                  $388         $386     (1%)
      Transition bond companies                   26           70    169%
        Total                                    414          456     10%

    Expenses:
      Operation and maintenance                  153          147      4%
      Depreciation and amortization               64           61      5%
      Taxes other than income taxes               58           59     (2%)
      Transition bond companies                   17           38   (124%)
        Total                                    292          305     (4%)
    Operating Income                            $122         $151     24%

    Operating Income - Electric
     transmission and distribution utility       113          119      5%
    Operating Income - Transition bond
     companies                                     9           32    256%
        Total Segment Operating Income          $122         $151     24%


    Electric Transmission & Distribution
    Operating Data:
    Actual MWH Delivered
      Residential                          6,593,895    6,807,984      3%
      Total                               18,956,313   20,422,341      8%

    Weather (average for service area):
    Percentage of normal:
      Cooling degree days                       103%         111%      8%
      Heating degree days                        47%         ---     ---


    Average number of metered customers:
      Residential                          1,675,573    1,703,130      2%
      Total                                1,904,090    1,965,180      3%


                                          Electric Transmission & Distribution
                                          ------------------------------------
                                                Six Months Ended    % Diff
                                                    June 30,         Fav/
                                          ------------------------
                                               2005         2006    (Unfav)
                                          -----------    ---------  -------
    Results of Operations:
    Revenues:
      Electric transmission and distribution
       utility                                  $711         $717      1%
      Transition bond companies                   48          124    158%
        Total                                    759          841     11%

    Expenses:
      Operation and maintenance                  291          281      3%
      Depreciation and amortization              128          124      3%
      Taxes other than income taxes              108          115     (6%)
      Transition bond companies                   30           60   (100%)
        Total                                    557          580     (4%)
    Operating Income                            $202         $261     29%

    Operating Income - Electric
     transmission and distribution utility       184          197      7%
    Operating Income - Transition bond
     companies                                    18           64    256%
        Total Segment Operating Income          $202         $261     29%

    Electric Transmission & Distribution
    Operating Data:
    Actual MWH Delivered
      Residential                         10,735,559   10,794,374      1%
      Total                               34,782,627   36,409,221      5%

    Weather (average for service area):
    Percentage of normal:
      Cooling degree days                       105%         114%      9%
      Heating degree days                        76%          60%    (16%)

    Average number of metered customers:
      Residential                          1,668,447    1,723,983      3%
      Total                                1,895,556    1,958,005      3%



                                                 Natural Gas Distribution
                                          ------------------------------------
                                                 Quarter Ended      % Diff
                                                    June 30,         Fav/
                                          ------------------------
                                               2005         2006    (Unfav)
                                          -----------    ---------  -------
    Results of Operations:
    Revenues                                    $541         $549      1%
    Expenses:
      Natural gas                                341          343     (1%)
      Operation and maintenance                  126          142    (13%)
      Depreciation and amortization               39           37      5%
      Taxes other than income taxes               26           29    (12%)
        Total                                    532          551     (4%)
    Operating Income (Loss)                       $9          $(2)  (122%)

    Natural Gas Distribution Operating Data:
    Throughput data in BCF
      Residential                                 21           17    (19%)
      Commercial and Industrial                   43           44      2%
        Total Throughput                          64           61     (5%)

    Weather (average for service area)
    Percentage of normal:
      Heating degree days                        86%          60%    (26%)

    Average number of customers:
      Residential                          2,833,773    2,860,802      1%
      Commercial and Industrial              246,032      253,725      3%
        Total                              3,079,805    3,114,527      1%



                                                Natural Gas Distribution
                                          ------------------------------------
                                               Six Months Ended    % Diff
                                                    June 30,         Fav/
                                          ------------------------
                                               2005         2006    (Unfav)
                                          -----------    ---------  -------
    Results of Operations:
    Revenues                                  $1,870       $2,029      9%
    Expenses:
      Natural gas                              1,338        1,489    (11%)
      Operation and maintenance                  261          292    (12%)
      Depreciation and amortization               76           75      1%
      Taxes other than income taxes               63           72    (14%)
        Total                                  1,738        1,928    (11%)
    Operating Income (Loss)                     $132         $101    (23%)

    Natural Gas Distribution Operating Data:
    Throughput data in BCF
      Residential                                 98           84    (14%)
      Commercial and Industrial                  120          116     (3%)
        Total Throughput                         218          200     (8%)


    Weather (average for service area)
    Percentage of normal:
      Heating degree days                        91%          81%    (10%)


    Average number of customers:
      Residential                          2,842,645    2,872,978      1%
      Commercial and Industrial              247,429      253,505      2%
        Total                              3,090,074    3,126,483      1%

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



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

                                  Competitive Natural Gas Sales and Services
                               -----------------------------------------------
                                Quarter Ended         Six Months Ended
                                  June 30,    % Diff    June 30,       % Diff
                               --------------   Fav/  ----------------   Fav/
                                 2005   2006  (Unfav)   2005    2006   (Unfav)
                               ------- ------ ------- ------- -------- -------
    Results of Operations:
    Revenues                     $845   $750   (11%)  $1,770  $1,913      8%
    Expenses:
      Natural gas                 828    735    11%    1,730   1,864     (8%)
      Operation and
       maintenance                  7      7   ---        12      15    (25%)
      Depreciation and
       amortization               ---      1   ---         1       1    ---
      Taxes other than
       income taxes               ---    ---   ---         1       1    ---
        Total                     835    743    11%    1,744   1,881     (8%)
    Operating Income              $10     $7   (30%)     $26     $32     23%

    Competitive Natural
     Gas Sales and Services
     Operating Data:
    Throughput data in BCF
      Wholesale -
       third parties               72     72   ---       154     161      5%
      Wholesale -
       affiliates                  21      8   (62%)      35      19    (46%)
      Retail                       34     31    (9%)      81      79     (2%)
      Pipeline                     12     10   (17%)      31      20    (35%)
        Total Throughput          139    121   (13%)     301     279     (7%)

    Average number of
     customers:
    Wholesale                     135    132    (2%)     130     138      6%
      Retail                    6,237  6,468     4%    6,207   6,501      5%
      Pipeline                    145    136    (6%)     151     138     (9%)
        Total                   6,517  6,736     3%    6,488   6,777      4%



                                           Pipelines and Field Services
                               -----------------------------------------------
                                Quarter Ended         Six Months Ended
                                  June 30,    % Diff     June 30,     % Diff
                               --------------   Fav/  ----------------   Fav/
                                 2005   2006  (Unfav)   2005    2006   (Unfav)
                               ------- ------ ------- ------- -------- -------
    Results of Operations:
    Revenues                     $125   $135     8%     $246    $260      6%
    Expenses:
      Natural gas                  18      7    61%       25       3      88%
      Operation and
       maintenance                 40     50   (25%)      74      89     (20%)
      Depreciation and
       amortization                11     12    (9%)      22      24      (9%)
      Taxes other than
       income taxes                 4      5   (25%)       9      10     (11%)
        Total                      73     74    (1%)     130     126       3%
    Operating Income              $52    $61    17%     $116    $134      16%

    Operating Income -
     Pipeline business             35     40    14%       83      89       7%
    Operating Income - Field
     Services business             17     21    24%       33      45      36%
        Total Segment
         Operating Income         $52    $61    17%     $116    $134      16%


    Pipelines and Field
     Services Operating Data:
    Throughput data in BCF
      Natural Gas Sales             3      2   (33%)       4       2     (50%)
      Transportation              230    240     4%      501     514       3%
      Gathering                    87     94     8%      170     182       7%
      Elimination                  (2)    (1)   50%       (3)     (1)     67%
        Total Throughput          318    335     5%      672     697       4%

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



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

                                                 Other Operations
                               -----------------------------------------------
                                Quarter Ended         Six Months Ended
                                  June 30,    % Diff      June 30,     % Diff
                               --------------   Fav/  ----------------   Fav/
                                 2005   2006  (Unfav)   2005    2006   (Unfav)
                               ------- ------ ------- ------- -------- -------
    Results of Operations:
    Revenues                       $4     $5    25%      $11      $9    (18%)
    Expenses                       11      2    82%       25      11     56%
    Operating Income (Loss)       $(7)    $3   143%     $(14)    $(2)    86%



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

                                            --------------- ------------------
                                             Quarter Ended   Six Months Ended
                                               June 30,          June 30,
                                            --------------- ------------------
                                             2005     2006     2005     2006
                                            ------   ------ --------  --------
    Capital Expenditures by Segment
      Electric Transmission & Distribution    $87     $111     $142     $190
      Natural Gas Distribution                 56       45       96       85
      Competitive Natural Gas Sales and
       Services                               ---        4      ---       10
      Pipelines and Field Services             31       54       53       84
      Other Operations                          5        4       10       14
        Total                                $179     $218     $301     $383


                           Interest Expense Detail
                            (Millions of Dollars)
                                 (Unaudited)

                                            --------------- ------------------
                                             Quarter Ended   Six Months Ended
                                               June 30,          June 30,
                                            --------------- ------------------
                                             2005     2006     2005     2006
                                            ------   ------ --------  --------
    Interest Expense Detail
      Amortization of Deferred Financing
       Cost                                   $19      $14      $39      $28
      Capitalization of Interest Cost          (1)      (2)      (2)      (3)
      Transition Bond Interest Expense          9       32       18       64
      Other Interest Expense                  162      107      316      210
        Total Interest Expense               $189     $151     $371     $299

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



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

                                                 December 31,        June 30,
                                                 ----------------------------
                                                    2005              2006
                                                 ----------         ---------
                       ASSETS
    Current Assets:
      Cash and cash equivalents                        $74              $397
      Other current assets                           2,817             2,000
        Total current assets                         2,891             2,397

    Property, Plant and Equipment, net               8,492             8,675

    Other Assets:
      Goodwill                                       1,709             1,709
      Regulatory assets                              2,955             2,890
      Other non-current assets                       1,069             1,038
        Total other assets                           5,733             5,637
          Total Assets                             $17,116           $16,709

       LIABILITIES AND SHAREHOLDERS' EQUITY

    Current Liabilities:
      Current portion of transition bond
       long-term debt                                  $73              $126
      Current portion of other long-term
       debt                                            266               519
      Other current liabilities                      2,675             1,931
        Total current liabilities                    3,014             2,576

    Other Liabilities:
      Accumulated deferred income taxes,
       net and investment tax credit                 2,520             2,442
      Regulatory liabilities                           728               822
      Other non-current liabilities                    990               810
        Total other liabilities                      4,238             4,074

    Long-term Debt:
      Transition bond                                2,407             2,335
      Other                                          6,161             6,220
        Total long-term debt                         8,568             8,555

    Shareholders' Equity                             1,296             1,504
      Total Liabilities and Shareholders' Equity   $17,116           $16,709

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



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

                                                     Six Months Ended June 30,
                                                     -------------------------
                                                      2005              2006
                                                     ------            ------

    Cash Flows from Operating Activities:
      Net income                                      $121              $282
        Discontinued operations, net of
         tax                                             3               ---
        Extraordinary item, net of tax                 (30)              ---
      Income from continuing operations                 94               282
      Adjustments to reconcile income
       from continuing operations to net
        cash provided by operating
         activities:
        Depreciation and amortization                  306               321
        Deferred income taxes and
         investment tax credit                          44              (109)
        Tax and interest reserves
         reductions related to ZENS and
         ACES                                          ---              (119)
        Changes in net regulatory assets
         and liabilities                              (133)               54
        Changes in other assets and
         liabilities                                  (262)               73
        Other, net                                       5                15
    Net Cash Provided by Operating
     Activities of Continuing Operations                54               517

    Net Cash Used in Operating Activities
     of Discontinued Operations                        (38)              ---
    Net Cash Provided by Operating
     Activities                                         16               517

    Net Cash Provided by (Used in)
     Investing Activities                              412              (396)

    Net Cash Provided by (Used in)
     Financing Activities                             (185)              202

    Net Increase in Cash and Cash
     Equivalents                                       243               323

    Cash and Cash Equivalents at
     Beginning of Period                               165                74

    Cash and Cash Equivalents at End of
     Period                                           $408              $397

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

SOURCE CenterPoint Energy, Inc.

media, Leticia Lowe, +1-713-207-7702, or investors, Marianne Paulsen,
+1-713-207-6500, both of CenterPoint Energy, Inc.
http://www.prnewswire.com

Copyright (C) 2006 PR Newswire. All rights reserved.

News Provided by COMTEX

Close window | Back to top