CenterPoint Energy, Inc.
Nov 4, 2016

CenterPoint Energy reports third quarter 2016 earnings of $0.41 per diluted share and updates full year guidance to $1.16 - $1.20

- Strong utility performance driven by customer growth and rate relief
- Midstream Investments expected to contribute earnings at the high end of the $0.24 - $0.28 guidance range for 2016
- Company continues to target 4-6% annual earnings growth through 2018

HOUSTON, Nov. 4, 2016 /PRNewswire/ -- CenterPoint Energy, Inc. (NYSE: CNP) today reported net income of $179 million, or $0.41 per diluted share, for the third quarter of 2016, compared with a $391 million loss or a loss of $0.91 per diluted share for the same period of the prior year. The third quarter 2015 loss included pre-tax impairment charges totaling $862 million related to midstream investments.  Excluding the impairment charges, third quarter 2015 net income would have been $146 million or $0.34 per diluted share. On a guidance basis, third quarter 2016 earnings were $0.41 per diluted share, consisting of $0.31 from utility operations and $0.10 from midstream investments.  On the same guidance basis and excluding the impairment charges, third quarter 2015 earnings would have been $0.34 per diluted share, consisting of $0.24 from utility operations and $0.10 from midstream investments.   

CenterPoint Energy logo.

Operating income for the third quarter of 2016 was $284 million, compared with $265 million in the third quarter of the prior year. Equity income from midstream investments was $73 million for the third quarter of 2016, compared with a $794 million loss for the same period in the prior year, which includes the impairment charges noted above.

"Utility operations and midstream investments both performed well in the third quarter," said Scott M. Prochazka, president and chief executive officer of CenterPoint Energy.  "As a result, we are adjusting guidance to the higher end of the range for 2016." 

Electric Transmission & Distribution

The electric transmission & distribution segment reported operating income of $257 million for the third quarter of 2016, consisting of $234 million from the regulated electric transmission & distribution utility operations (TDU) and $23 million related to securitization bonds. Operating income for the third quarter of 2015 was $244 million, consisting of $219 million from the TDU and $25 million related to securitization bonds.

Operating income for the TDU benefited primarily from rate relief, customer growth and higher equity return, primarily related to true-up proceeds.  These benefits were partially offset by higher depreciation and other taxes. 

Natural Gas Distribution

The natural gas distribution segment reported operating income of $22 million for the third quarter of 2016, compared with $11 million for the same period of 2015. Operating income benefited from rate relief, revenue from decoupling mechanisms, lower bad debt expense and lower sales and use tax.  These benefits were partially offset by higher depreciation and increased labor and benefit expenses.

Energy Services

The energy services segment reported operating income of $5 million for the third quarter of 2016 compared with $7 million for the same period in the prior year.  Third quarter operating income for 2016 included a mark-to-market accounting loss of $2 million, compared to a gain of $5 million for the same period of the prior year.  Excluding mark-to-market adjustments, operating income would have been $7 million in the third quarter of 2016 and $2 million in the third quarter of 2015.    

Midstream Investments

The midstream investments segment reported $73 million of equity income for the third quarter of 2016, compared with a $794 million loss in the third quarter of the prior year, which includes the impairment charges noted above.  For the third quarter of 2015, the impairments were partially offset by equity earnings of $68 million.

Enable Midstream declared a quarterly cash distribution of $0.318 per common and subordinated unit on November 1, 2016.  Please refer to Enable Midstream's November 2, 2016 earnings press release for details.

Dividend Declaration

On October 27, 2016, CenterPoint Energy's board of directors declared a regular quarterly cash dividend of $0.2575 per share of common stock payable on December 9, 2016, to shareholders of record as of the close of business on November 16, 2016.

Outlook for 2016

On a consolidated basis, CenterPoint Energy updates earnings on a guidance basis for 2016 to the range of $1.16 - $1.20 per diluted share. 

The guidance range considers utility operations performance to date and certain significant variables that may impact earnings, such as weather, regulatory and judicial proceedings, throughput, commodity prices, effective tax rates, and financing activities. In providing this guidance, the company uses a non-GAAP measure of adjusted diluted earnings per share that does not consider other potential impacts, such as changes in accounting standards or unusual items, earnings or losses from the change in the value of the ZENS securities and the related stocks, or the timing effects of mark-to-market accounting in the company's Energy Services business. 

In providing guidance, the company assumes for midstream investments a 55.4 percent limited partner ownership interest in Enable Midstream and includes the amortization of CenterPoint Energy's basis difference in Enable Midstream. CenterPoint Energy's guidance takes into account such factors as Enable Midstream's most recent public outlook for 2016, dated November 2, 2016, and effective tax rates. The company does not include other potential impacts such as any changes in accounting standards or Enable Midstream's unusual items.

 CenterPoint Energy, Inc. and Subsidiaries Reconciliation of Net Income 

 and Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS used in providing annual earnings guidance 


















 Quarter Ended 


 Nine Months Ended 


 September 30, 2016 


 September 30, 2016 


 Net Income
(in millions) 


 Diluted
EPS 


 Net Income
(in millions) 


 Diluted
EPS 









Consolidated net income and diluted EPS as reported

$          179


$  0.41


$          331


$  0.76

Midstream Investments

(46)


(0.10)


(96)


(0.22)

Utility Operations (1) 

133


0.31


235


0.54









Timing effects impacting CES(2):








Mark-to-market losses (net of taxes of $1 and $7)(3)

1


-


11


0.02









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








Marketable securities (net of taxes of $27 and $65) (3)(4)

(50)


(0.11)


(122)


(0.27)

Indexed debt securities (net of taxes of $25 and $90)(3)(5)

47


0.11


168


0.39

Utility operations earnings on an adjusted guidance basis

$          131


$  0.31


$          292


$  0.68









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








Utility Operations on a guidance basis

$          131


$  0.31


$          292


$  0.68

Midstream Investments

46


0.10


96


0.22

Consolidated on a guidance basis

$          177


$  0.41


$          388


$  0.90

















(1)  CenterPoint earnings excluding Midstream Investments

(2)  Energy Services segment

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

(4)  As of May 18, 2016, comprised of Time Warner Inc., Charter Communications, Inc. and Time Inc.  Prior to May 18, 2016, comprised of Time Warner Inc., Time Warner Cable Inc. and Time Inc.

(5)  Nine months ended results include amount associated with the Charter Communications, Inc. and Time Warner Cable Inc. merger

 

 CenterPoint Energy, Inc. and Subsidiaries Reconciliation of Net Income (Loss) 

 and Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS used in providing annual earnings guidance 










 Quarter Ended 


 September 30, 2016 


 September 30, 2015 


 Net Income
(in millions) 


 Diluted EPS 


 Net Income
(in millions) 


 Diluted EPS 









Consolidated as reported

$          179


$          0.41


$                  (391)


$         (0.91)

Midstream Investments

(46)


(0.10)


495


1.15

Utility Operations (1) 

133


0.31


104


0.24









Loss on impairment of Midstream Investments:








CenterPoint's impairment of its investment in Enable (net of taxes of $94)(3)

-


-


156


0.36

CenterPoint's share of Enable's impairment of its goodwill and long-lived assets (net of taxes of $231)(3)

-


-


381


0.89

Total loss on impairment

-


-


537


1.25









Midstream Investments excluding loss on impairment

46


0.10


42


0.10









Consolidated excluding loss on impairment

179


0.41


146


0.34









Timing effects impacting CES(2):








Mark-to-market (gains) losses (net of taxes of $1 and $2)(3)

1


-


(3)


(0.01)









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








Marketable securities (net of taxes of $27 and $47) (3)(4)

(50)


(0.11)


87


0.20

Indexed debt securities (net of taxes of $25 and $45) (3)

47


0.11


(84)


(0.19)

Utility operations earnings on an adjusted guidance basis

$          131


$          0.31


$                   104


$          0.24









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








Utility Operations on a guidance basis

$          131


$          0.31


$                   104


$          0.24

Midstream Investments excluding loss on impairment

46


0.10


42


0.10

Consolidated on a guidance basis

$          177


$          0.41


$                   146


$          0.34









(1)  CenterPoint earnings excluding Midstream Investments

(2)  Energy Services segment

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

(4)   As of May 18, 2016, comprised of Time Warner Inc., Charter Communications, Inc. and Time Inc.  Prior to May 18, 2016, comprised of Time Warner Inc., Time Warner Cable Inc. and Time Inc.

 

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

Today, CenterPoint Energy, Inc. filed with the Securities and Exchange Commission (SEC) its Quarterly Report on Form 10-Q for the period ended September 30, 2016. A copy of that report is available on the company's website, under the Investors section. Other filings the company makes with the SEC and certain documents relating to its corporate governance can also be found under the Investors section. 

Webcast of Earnings Conference Call

CenterPoint Energy's management will host an earnings conference call on Friday, November 4, 2016 at 10 a.m. Central time or 11 a.m. Eastern time. Interested parties may listen to a live audio broadcast of the conference call on the company's website under the Investors section. A replay of the call can be accessed approximately two hours after the completion of the call and will be archived on the website for at least one year.

CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution and energy services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. The company also owns a 55.4 percent limited partner interest in Enable Midstream Partners, a publicly traded master limited partnership it jointly controls with OGE Energy Corp.,  which owns, operates and develops natural gas and crude oil infrastructure assets. With more than 7,800 employees, CenterPoint Energy and its predecessor companies have been in business for more than 140 years. For more information, visit the website at www.CenterPointEnergy.com.

This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties.  Actual events and results may differ materially from those expressed or implied by these forward-looking statements. Any statements in this news release regarding future earnings, and future financial performance and results of operations, including, but not limited to earnings guidance, targeted dividend growth rate and any other statements that are not historical facts are forward-looking statements. Each forward-looking statement contained in this news release speaks only as of the date of this release. Factors that could affect actual results include (1) state and federal legislative and regulatory actions or developments affecting various aspects of CenterPoint Energy's businesses (including the businesses of Enable Midstream Partners (Enable Midstream)), including, among others, energy deregulation or re-regulation, pipeline integrity and safety, health care reform, financial reform, tax legislation, and actions regarding the rates charged by CenterPoint Energy's regulated businesses; (2) state and federal legislative and regulatory actions or developments relating to the environment, including those related to global climate change; (3) recording of non-cash goodwill, long-lived asset or other than temporary impairment charges by or related to Enable Midstream; (4) timely and appropriate rate actions that allow recovery of costs and a reasonable return on investment; (5) the timing and outcome of any audits, disputes or other proceedings related to taxes; (6) problems with construction, implementation of necessary technology or other issues with respect to major capital projects that result in delays or in cost overruns that cannot be recouped in rates; (7) industrial, commercial and residential growth in CenterPoint Energy's service territories and changes in market demand, including the effects of energy efficiency measures and demographic patterns; (8) the timing and extent of changes in commodity prices, particularly natural gas and natural gas liquids, and the effects of geographic and seasonal commodity price differentials, and the impact of commodity changes on producer related activities; (9) weather variations and other natural phenomena, including the impact on operations and capital from severe weather events; (10) any direct or indirect effects on CenterPoint Energy's facilities, operations and financial condition resulting from terrorism, cyber-attacks, data security breaches or other attempts to disrupt its businesses or the businesses of third parties, or other catastrophic events; (11) the impact of unplanned facility outages; (12) timely and appropriate regulatory actions allowing securitization or other recovery of costs associated with any future hurricanes or natural disasters; (13) changes in interest rates or rates of inflation; (14) commercial bank and financial market conditions, CenterPoint Energy's access to capital, the cost of such capital, and the results of its financing and refinancing efforts, including availability of funds in the debt capital markets; (15) actions by credit rating agencies; (16) effectiveness of CenterPoint Energy's risk management activities; (17) inability of various counterparties to meet their obligations; (18) non-payment for services due to financial distress of CenterPoint Energy's and Enable Midstream's customers; (19) the ability of GenOn Energy, Inc. (formerly known as RRI Energy, Inc.), a wholly owned subsidiary of NRG Energy, Inc., and its subsidiaries to satisfy their obligations to CenterPoint Energy and its subsidiaries; (20) the ability of retail electric providers, and particularly the largest customers of the TDU, to satisfy their obligations to CenterPoint Energy and its subsidiaries; (21) the outcome of litigation; (22) CenterPoint Energy's ability to control costs, invest planned capital, or execute growth projects; (23) the investment performance of pension and postretirement benefit plans; (24) potential business strategies, including restructurings, joint ventures, and acquisitions or dispositions of assets or businesses, for which no assurance can be given that they will be completed or will provide the anticipated benefits to CenterPoint Energy; (25) acquisition and merger activities and successful integration of such activities, involving CenterPoint Energy or its competitors; (26) the ability to recruit, effectively transition and retain management and key employees and maintain good labor relations; (27) future economic conditions in regional and national markets and their effects on sales, prices and costs; (28) the performance of Enable Midstream, the amount of cash distributions CenterPoint Energy receives from Enable Midstream, and the value of its interest in Enable Midstream, and factors that may have a material impact on such performance, cash distributions and value, including certain of the factors specified above and: (A) the integration of the operations of the businesses contributed to Enable Midstream; (B) the achievement of anticipated operational and commercial synergies and expected growth opportunities, and the successful implementation of  Enable Midstream's business plan; (C) competitive conditions in the midstream industry, and actions taken by Enable Midstream's customers and competitors, including the extent and timing of the entry of additional competition in the markets served by Enable Midstream; (D) the timing and extent of changes in the supply of natural gas and associated commodity prices, particularly natural gas and natural gas liquids, the competitive effects of the available pipeline capacity in the regions served by Enable Midstream, and the effects of geographic and seasonal commodity price differentials, including the effects of these circumstances on re-contracting available capacity on Enable Midstream's interstate pipelines; (E) the demand for crude oil, natural gas, NGLs and transportation and storage services; (F) changes in tax status; (G) access to growth capital; and (H) the availability and prices of raw materials for current and future construction projects; (29) effective tax rate; (30) the effect of changes in and application of accounting standards and pronouncements; (31) other factors discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2015, as well as in CenterPoint Energy's Quarterly Report on Form 10-Q for the quarter ended March 31, 2016, June 30, 2016 and September 30, 2016 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

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

In addition to presenting its financial results in accordance with generally accepted accounting principles (GAAP), including presentation of net income and diluted earnings per share, CenterPoint Energy also provides guidance based on adjusted net income and adjusted diluted earnings per share, which are non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's historical or future financial performance that excludes or includes amounts that are not normally excluded or included in the most directly comparable GAAP financial measure. CenterPoint Energy's adjusted net income and adjusted diluted earnings per share calculation excludes from net income and diluted earnings per share, respectively, the impact of ZENS and related securities, mark-to-market gains or losses resulting from the company's Energy Services business and adjustments for impairment charges.  A reconciliation of net income and diluted earnings per share to the basis used in providing 2016 guidance is provided in this news release.  CenterPoint Energy is unable to present a quantitative reconciliation of forward looking adjusted net income and adjusted diluted earnings per share because changes in the value of ZENS and related securities, mark-to-market gains or losses resulting from the company's Energy Services business and impairment charges are not estimable.

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

For more information contact 
Media: 
Leticia Lowe
Phone  713.207.7702 
Investors: 
David Mordy 
Phone  713.207.6500

 

CenterPoint Energy, Inc. and Subsidiaries

Statements of Consolidated Income

(Millions of Dollars)

(Unaudited)





















Quarter Ended


Nine Months Ended



September 30,


September 30,



2016


2015


2016


2015



















Revenues:









Electric Transmission & Distribution 


$   908


$   827


$  2,331


$  2,144

Natural Gas Distribution


377


359


1,693


1,979

Energy Services


614


452


1,450


1,510

Other Operations


3


4


11


11

Eliminations


(13)


(12)


(38)


(49)

Total


1,889


1,630


5,447


5,595










Expenses:









Natural gas


683


527


2,031


2,410

Operation and maintenance


505


479


1,539


1,465

Depreciation and amortization


324


268


873


724

Taxes other than income taxes


93


91


288


289

Total


1,605


1,365


4,731


4,888

Operating Income


284


265


716


707










Other Income (Expense) :









Gain (loss) on marketable securities


77


(134)


187


(72)

Gain (loss) on indexed debt securities


(72)


129


(258)


62

Interest and other finance charges


(83)


(88)


(256)


(266)

Interest on securitization bonds


(23)


(25)


(70)


(80)

Equity in earnings (losses) of unconsolidated affiliate


73


(794)


164


(699)

Other - net


20


12


41


36

Total


(8)


(900)


(192)


(1,019)










Income (Loss) Before Income Taxes 


276


(635)


524


(312)










Income Tax Expense (Benefit)


97


(244)


193


(129)










Net Income (Loss)


$   179


$  (391)


$     331


$   (183)





































Reference is made to the Notes to the Consolidated Financial Statements

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

 

CenterPoint Energy, Inc. and Subsidiaries

Selected Data From Statements of Consolidated Income

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

(Unaudited)





















Quarter Ended


Nine Months Ended



September 30,


September 30,



2016


2015


2016


2015



















Basic Earnings (Loss) Per Common Share


$      0.42


$     (0.91)


$     0.77


$     (0.43)










Diluted Earnings (Loss) Per Common Share 


$      0.41


$     (0.91)


$     0.76


$     (0.43)










Dividends Declared per Common Share


$  0.2575


$  0.2475


0.7725


$  0.7425










     Weighted Average Common Shares Outstanding (000):









- Basic


430,682


430,262


430,581


430,152

- Diluted


433,396


430,262


433,295


430,152



















Operating Income by Segment 


















Electric Transmission & Distribution:









TDU


$       234


$       219


$      428


$       418

Bond Companies


23


25


70


80

Total Electric Transmission & Distribution


257


244


498


498

Natural Gas Distribution


22


11


202


176

Energy Services


5


7


11


29

Other Operations


-


3


5


4










Total


$       284


$       265


$      716


$       707





































Reference is made to the Notes to the Consolidated Financial Statements

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

 

CenterPoint Energy, Inc. and Subsidiaries

Results of Operations by Segment

(Millions of Dollars)

(Unaudited)





























Electric Transmission & Distribution



Quarter Ended




Nine Months Ended





September 30,


% Diff


September 30,


% Diff



2016


2015


Fav/(Unfav)


2016


2015


Fav/(Unfav)

Results of Operations:













Revenues:













TDU


$            725


$            683


6%


$         1,881


$         1,782


6%

Bond Companies


183


144


27%


450


362


24%

Total


908


827


10%


2,331


2,144


9%














Expenses:













Operation and maintenance. excluding Bond Companies


336


322


(4%)


995


944


(5%)

Depreciation and amortization, excluding Bond Companies


96


86


(12%)


285


253


(13%)

Taxes other than income taxes


59


56


(5%)


173


167


(4%)

Bond Companies


160


119


(34%)


380


282


(35%)

Total


651


583


(12%)


1,833


1,646


(11%)

Operating Income


$            257


$            244


5%


$            498


$            498


-














Operating Income:













TDU


$            234


$            219


7%


$            428


$            418


2%

Bond Companies


23


25


(8%)


70


80


(13%)

Total Segment Operating Income


$            257


$            244


5%


$            498


$            498


-














Electric Transmission & Distribution Operating Data:









Actual MWH Delivered













Residential


10,775,739


10,387,735


4%


23,426,712


23,283,969


1%

Total


26,517,635


25,612,134


4%


66,838,583


65,378,208


2%














Weather (average for service area):













Percentage of 10-year average:













Cooling degree days


107%


101%


6%


101%


99%


2%

Heating degree days


0%


0%


0%


85%


130%


(45%)














Number of metered customers - end of period:













Residential


2,116,312


2,069,213


2%


2,116,312


2,069,213


2%

Total


2,389,014


2,337,806


2%


2,389,014


2,337,806


2%





























Natural Gas Distribution



Quarter Ended 




Nine Months Ended





September 30,


% Diff


September 30,


% Diff



2016


2015


Fav/(Unfav)


2016


2015


Fav/(Unfav)

Results of Operations:













Revenues


$            377


$            359


5%


$         1,693


$         1,979


(14%)

Natural gas


104


106


2%


679


1,014


33%

   Gross Margin


273


253


8%


1,014


965


5%

Expenses:













Operation and maintenance


159


155


(3%)


526


510


(3%)

Depreciation and amortization


61


55


(11%)


180


165


(9%)

Taxes other than income taxes


31


32


3%


106


114


7%

Total


251


242


(4%)


812


789


(3%)

Operating Income


$              22


$              11


100%


$            202


$            176


15%














Natural Gas Distribution Operating Data:













Throughput data in BCF













Residential


12


12


-


105


128


(18%)

Commercial and Industrial


51


52


(2%)


193


196


(2%)

Total Throughput


63


64


(2%)


298


324


(8%)














Weather (average for service area)













Percentage of 10-year average:













Heating degree days


21%


64%


(43%)


86%


108%


(22%)














Number of customers - end of period:













Residential


3,143,357


3,110,645


1%


3,143,357


3,110,645


1%

Commercial and Industrial


251,043


248,911


1%


251,043


248,911


1%

Total


3,394,400


3,359,556


1%


3,394,400


3,359,556


1%





















































Reference is made to the Notes to the Consolidated Financial Statements

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

 

CenterPoint Energy, Inc. and Subsidiaries

Results of Operations by Segment

(Millions of Dollars)

(Unaudited)





























Energy Services



Quarter Ended 




Nine Months Ended





September 30,


% Diff


September 30,


% Diff



2016


2015


Fav/(Unfav)


2016


2015


Fav/(Unfav)

Results of Operations:













Revenues


$     614


$     452


36%


$  1,450


$  1,510


(4%)

Natural gas


591


433


(36%)


1,389


1,445


4%

   Gross Margin


23


19


21%


61


65


(6%)

Expenses:













Operation and maintenance


16


11


(45%)


43


32


(34%)

Depreciation and amortization


1


1


-


5


3


(67%)

Taxes other than income taxes


1


-


-


2


1


(100%)

Total


18


12


(50%)


50


36


(39%)

Operating Income


$         5


$         7


(29%)


$       11


$       29


(62%)














Mark-to-market gain (loss)


$       (2)


$         5


(140%)


$     (18)


$         3


(700%)














Energy Services Operating Data:













Throughput data in BCF


200


138


45%


570


459


24%














Number of customers - end of period


31,669


18,052


75%


31,669


18,052


75%





























Other Operations



Quarter Ended 




Nine Months Ended





September 30,


% Diff


September 30,


% Diff



2016


2015


Fav/(Unfav)


2016


2015


Fav/(Unfav)

Results of Operations:













Revenues


$         3


$         4


(25%)


$       11


$       11


-

Expenses


3


1


(200%)


6


7


14%

Operating Income


$          -


$         3


-


$         5


$         4


25%














 Capital Expenditures by Segment 

(Millions of Dollars)

(Unaudited)
















Quarter Ended 




Nine Months Ended





September 30,




September 30,





2016


2015




2016


2015



Capital Expenditures by Segment













Electric Transmission & Distribution


$     211


$     237




$     638


$     665



Natural Gas Distribution


143


172




371


416



Energy Services


1


3




3


4



Other Operations


6


12




16


29



Total


$     361


$     424




$  1,028


$  1,114
















Interest Expense Detail

(Millions of Dollars)

(Unaudited)
















Quarter Ended 




Nine Months Ended





September 30,




September 30,





2016


2015




2016


2015



Interest Expense Detail













Amortization of Deferred Financing Cost


$         6


$         6




$       18


$       19



Capitalization of Interest Cost


(2)


(2)




(5)


(7)



Transition and System Restoration Bond Interest Expense


23


25




70


80



Other Interest Expense


79


84




243


254



Total Interest Expense


$     106


$     113




$     326


$     346























































Reference is made to the Notes to the Consolidated Financial Statements

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

 

CenterPoint Energy, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Millions of Dollars)

(Unaudited)















September 30,


December 31,




2016


2015














                                        ASSETS






Current Assets:






  Cash and cash equivalents


$             270


$           264


  Other current assets


2,259


2,425


      Total current assets


2,529


2,689








Property, Plant and Equipment, net


12,083


11,537








Other Assets:






  Goodwill


862


840


  Regulatory assets


2,756


3,129


  Investment in unconsolidated affiliate


2,535


2,594


  Preferred units -unconsolidated affiliate


363


-


  Other non-current assets


158


501


      Total other assets


6,674


7,064


        Total Assets


$        21,286


$       21,290








                         LIABILITIES AND SHAREHOLDERS' EQUITY












Current Liabilities:






  Short-term borrowings


$              43


$             40


  Current portion of securitization bonds long-term debt


410


391


  Indexed debt


112


145


  Current portion of other long-term debt


250


328


  Other current liabilities


1,583


1,554


      Total current liabilities


2,398


2,458








Other Liabilities:






  Accumulated deferred income taxes, net 


5,206


5,047


  Regulatory liabilities


1,279


1,276


  Other non-current liabilities


1,195


1,182


      Total other liabilities


7,680


7,505








Long-term Debt:






  Securitization bonds


1,931


2,276


  Other


5,805


5,590


      Total long-term debt


7,736


7,866








Shareholders' Equity


3,472


3,461


      Total Liabilities and Shareholders' Equity


$        21,286


$       21,290


























Reference is made to the Notes to the Consolidated Financial Statements

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

 

CenterPoint Energy, Inc. and Subsidiaries

Condensed Statements of Consolidated Cash Flows

(Millions of Dollars)

(Unaudited)














Nine Months Ended September 30,


2016


2015





Cash Flows from Operating Activities:




  Net income (loss)

$ 331


$ (183)

  Adjustments to reconcile net income (loss) to net cash provided by operating activities:




Depreciation and amortization

892


745

Deferred income taxes

150


(264)

Write-down of natural gas inventory

1


4

Equity in (earnings) losses of unconsolidated affiliate, net of distributions

(164)


843

Changes in net regulatory assets

(26)


92

Changes in other assets and liabilities

252


266

Other, net

16


15

Net Cash Provided by Operating Activities

1,452


1,518





Net Cash Used in Investing Activities

(739)


(1,024)





Net Cash Used in Financing Activities

(707)


(565)





Net Increase (Decrease) in Cash and Cash Equivalents

6


(71)





Cash and Cash Equivalents at Beginning of Period

264


298





Cash and Cash Equivalents at End of Period

$ 270


$  227

















Reference is made to the Notes to the Consolidated Financial Statements

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

 

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SOURCE CenterPoint Energy, Inc.

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