CenterPoint Energy, Inc.
CENTERPOINT ENERGY INC (Form: 8-K, Received: 02/29/2012 08:57:59)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 29, 2012

 

 

CENTERPOINT ENERGY, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Texas   1-31447   74-0694415

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

1111 Louisiana

Houston, Texas

  77002
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code: (713) 207-1111

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On February 29, 2012, CenterPoint Energy, Inc. (“CenterPoint Energy”) reported fourth quarter and full year 2011 earnings. For additional information regarding CenterPoint Energy’s fourth quarter and full year 2011 earnings, please refer to CenterPoint Energy’s press release attached to this report as Exhibit 99.1 (the “Press Release”) and the supplemental materials which are being posted on CenterPoint Energy’s website and are attached to this report as Exhibit 99.2 (the “Supplemental Materials”), which Press Release and Supplemental Materials are incorporated by reference herein. The information in the Press Release and Supplemental Materials is being furnished, not filed, pursuant to Item 2.02. Accordingly, the information in the Press Release and Supplemental Materials will not be incorporated by reference into any registration statement filed by CenterPoint Energy under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

The exhibits listed below are furnished pursuant to Item 2.02 of this Form 8-K.

 

  (d) Exhibits.

 

  99.1 Press Release issued February 29, 2012 regarding CenterPoint Energy, Inc.’s fourth quarter and full year 2011 earnings.

 

  99.2 Supplemental Materials regarding CenterPoint Energy, Inc.’s fourth quarter and full year 2011 earnings.


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    CENTERPOINT ENERGY, INC.
Date: February 29, 2012     By:   /s/ Walter L. Fitzgerald
      Walter L. Fitzgerald
     

Senior Vice President and

Chief Accounting Officer


EXHIBIT INDEX

 

EXHIBIT

NUMBER

  

EXHIBIT DESCRIPTION

99.1    Press Release issued February 29, 2012 regarding CenterPoint Energy, Inc.’s fourth quarter and full year 2011 earnings.
99.2    Supplemental Materials regarding CenterPoint Energy, Inc.’s fourth quarter and full year 2011 earnings.

Exhibit 99.1

 

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  Page 1 of 6

 

 

CENTERPOINT ENERGY REPORTS FOURTH QUARTER AND

FULL YEAR 2011 EARNINGS

Houston, TX—February 29, 2012 CenterPoint Energy, Inc . (NYSE: CNP) today reported net income of $117 million, or $0.27 per diluted share, for the fourth quarter of 2011 compared to $124 million, or $0.29 per diluted share, for the same period of 2010. Operating income for the fourth quarter of 2011 was $274 million compared to $302 million for the same period of 2010.

For the year ended December 31, 2011, net income was $1.36 billion, or $3.17 per diluted share, compared to $442 million, or $1.07 per diluted share, for the same period of 2010. The year ended December 31, 2011, included net income of $811 million, or $1.89 per diluted share, reflecting the final resolution of the appeals of the 2004 true-up order of the Texas Public Utility Commission (Texas PUC) issued in connection with the restructuring of the Texas electric industry. Excluding this amount, net income would have been $546 million, or $1.27 per diluted share, for the year ended December 31, 2011, compared to $442 million, or $1.07 per diluted share, for the same period of 2010.

Operating income for the year ended December 31, 2011, was $1.3 billion compared to $1.25 billion for the same period of 2010.

“2011 was a significant year for our company,” said David M. McClanahan, president and chief executive officer of CenterPoint Energy. “We resolved the long-standing proceeding arising from the restructuring of the electric industry in Texas. As a result, in January 2012 we recovered approximately $1.7 billion through the issuance of securitization bonds. Operationally, our regulated electric and natural gas utilities reported solid results and our field services unit realized growth from the investments we made in several developing shale plays. We continue to look for opportunities to invest across our portfolio of electric and natural gas businesses and build value for our shareholders.”

Electric Transmission & Distribution

The electric transmission & distribution segment reported operating income of $93 million for the fourth quarter of 2011, consisting of $62 million from the regulated electric transmission & distribution utility operations (TDU) and $31 million related to securitization bonds. Operating income for the fourth quarter of 2010 was $90 million, consisting of $56 million from the TDU and $34 million related to securitization bonds. Operating income for the TDU benefited from higher net transmission revenues, timing of energy efficiency cost recovery and increased throughput primarily from growth of more than 45,000 customers since December 2010. These gains were partially offset by impacts from the recent rate case and higher operation and maintenance expenses.

 

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Operating income for the year ended December 31, 2011, was $623 million, consisting of $496 million from the TDU and $127 million related to securitization bonds. Operating income for the same period of 2010 was $567 million, consisting of $427 million from the TDU and $140 million related to securitization bonds. Operating income for the TDU benefited from increased throughput driven primarily by warmer weather and customer growth, higher net transmission revenues and lower depreciation. These gains were partially offset by impacts from the recent rate case and higher operation and maintenance expenses in part due to system reliability improvements.

Natural Gas Distribution

The natural gas distribution segment reported operating income of $73 million for the fourth quarter of 2011 compared to $86 million for the same period of 2010. Operating income declined primarily as a result of higher operation and maintenance expenses.

Operating income for the year ended December 31, 2011, was $226 million compared to $231 million for the same period of 2010. Operating income declined as a result of higher operation and maintenance expenses and lower miscellaneous revenues, which were partially offset by customer growth of more than 19,000 customers since December 2010 and rate adjustments.

Interstate Pipelines

The interstate pipelines segment reported operating income of $52 million for the fourth quarter of 2011 compared to $63 million for the same period of 2010. The decline was due to lower revenues primarily related to an expired backhaul contract and lower off-system sales. These declines were partially offset by increased ancillary services.

In addition to operating income, this segment recorded equity income of $6 million for the fourth quarter of 2011 from its 50 percent interest in the Southeast Supply Header (SESH) compared to $4 million for the same period of 2010.

Operating income for the year ended December 31, 2011, was $248 million compared to $270 million for the same period of 2010. The decline was due to lower revenues primarily related to an expired backhaul contract, restructured contracts with the company’s natural gas distribution affiliates and lower off-system sales. These declines were partially offset by increased revenues primarily from ancillary services, as well as from power generation and industrial customers.

In addition to operating income, this segment recorded equity income of $21 million for the year ended December 31, 2011, from its 50 percent interest in SESH compared to $19 million for the same period of 2010.

Field Services

The field services segment reported operating income of $53 million for the fourth quarter of 2011 compared to $57 million for the same period of 2010. Operating expenses for the fourth quarter of 2010 included a gain of $21 million associated with the sale of a small, non-strategic gas gathering system. Operating income for the fourth quarter of 2011 benefited from higher gathering volumes in the Haynesville and Fayetteville shales.

 

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In addition to operating income, this business had equity income of $2 million for each of the fourth quarters of 2011 and 2010 from its 50 percent interest in a gathering and processing joint venture (Waskom).

Operating income for the year ended December 31, 2011, was $189 million compared to $151 million for the same period of 2010. Operating expenses for the year ended December 31, 2010, included a gain of $21 million associated with the sale of a small, non-strategic gas gathering system. Operating income for the year ended December 31, 2011, benefited from higher gathering volumes in the Haynesville and Fayetteville shales and revenues attributable to throughput volume commitments. These gains were partially offset by lower prices received from sales of retained gas, higher operation and maintenance, and depreciation and amortization expenses primarily related to facility expansions.

Equity income from Waskom was $9 million for the year ended December 31, 2011, compared to $10 million for the same period of 2010.

Competitive Natural Gas Sales and Services

The competitive natural gas sales and services segment reported operating income of $3 million for the fourth quarter of 2011 compared to no operating income for the same period of 2010. The fourth quarter of 2011 included a $5 million charge related to an early capacity release on pipeline transportation. In addition, the fourth quarter of 2011 included gains of $1 million resulting from mark-to-market accounting for derivatives associated with certain forward natural gas purchases and sales used to lock in economic margins compared to charges of $10 million for the same period of 2010. The fourth quarter of 2011 also included a $4 million write-down of natural gas inventory to the lower of average cost or market. Low basis spreads continued to negatively impact this segment’s results.

Operating income for the year ended December 31, 2011, was $6 million compared to $16 million for the same period of 2010. Operating income for the year ended December 31, 2011, included the $5 million early capacity release charge. In addition, operating income for the year ended December 31, 2011, included gains of $8 million resulting from mark-to-market accounting compared to gains of $4 million for the same period of 2010. The year ended December 31, 2011, included an $11 million write-down of natural gas inventory compared to a $6 million write-down in the same period of 2010.

 

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Securitization Bond Issuance

On October 13, 2011, the Texas PUC approved a final order resolving all issues raised in connection with the Texas Supreme Court’s remand of the Texas PUC’s 2004 true-up order. The final order authorized the company to recover an additional true-up balance of $1.695 billion. On January 19, 2012, a wholly-owned special purpose subsidiary of the company closed on the sale of bonds to securitize the approved amount. In the third quarter of 2011, the company recorded net income of $811 million related to the true-up remand. An additional $258 million in net income will be recognized over the life of the securitization bonds.

Dividend Declaration

On January 19, 2012, CenterPoint Energy’s board of directors declared a regular quarterly cash dividend of $0.2025 per share of common stock payable on March 9, 2012, to shareholders of record as of the close of business on February 16, 2012. This marks the seventh consecutive year the company has increased its quarterly dividend.

Outlook for 2012

CenterPoint Energy expects earnings on a guidance basis for 2012 to be in the range of $1.08 to $1.20 per diluted share. Earnings guidance is being provided in the form of a range to reflect economic and operational variables associated with the company’s various business segments. Significant variables include the impact to earnings of commodity prices, volume throughput, weather, regulatory proceedings, effective tax rates and financing activities. In providing this guidance, the company does not include the impact of any changes in accounting standards, any impact from significant acquisitions or divestitures, any impact to earnings from the change in the value of Time Warner stocks and the related ZENS securities, or the timing effects of mark-to-market and inventory accounting in the company’s competitive natural gas sales and services business.

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

Today, CenterPoint Energy, Inc. filed with the Securities and Exchange Commission (SEC) its Annual Report on Form 10-K for the period ended December 31, 2011. 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 other documents relating to its corporate governance can also be found on that site.

Webcast of Earnings Conference Call

CenterPoint Energy’s management will host an earnings conference call on Wednesday, February 29, 2012, 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 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.

 

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CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution, competitive natural gas sales and services, interstate pipelines, and field services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma and Texas. Assets total more than $21 billion. With over 8,800 employees, CenterPoint Energy and its predecessor companies have been in business for more than 135 years. For more information, visit the company’s website at CenterPointEnergy.com .

This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual events and results may differ materially from those expressed or implied by these forward-looking statements. The statements in this news release regarding the company’s earnings outlook for 2012 and future financial performance and results of operations, 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, among others, energy deregulation or re-regulation, pipeline integrity and safety, health care reform, financial reform and tax legislation; (2) state and federal legislative and regulatory actions or developments relating to the environment, including those related to global climate change; (3) timely and appropriate rate actions and increases, allowing recovery of costs and a reasonable return on investment; (4) the timing and outcome of any audits, disputes or other proceedings related to taxes; (5) 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; (6) 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; (7) 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, including the effects of these circumstances on re-contracting available capacity on CenterPoint Energy’s interstate pipelines; (8) the timing and extent of changes in the supply of natural gas, including supplies available for gathering by CenterPoint Energy’s field services business and transporting by its interstate pipelines; (9) competition in CenterPoint Energy’s mid-continent region footprint for access to natural gas supplies and to markets; (10) weather variations and other natural phenomena; (11) 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; (12) the impact of unplanned facility outages; (13) timely and appropriate regulatory actions allowing securitization or other recovery of costs associated with any future hurricanes or natural disasters; (14) changes in interest rates or rates of inflation; (15) commercial bank and financial market conditions, CenterPoint Energy’s access to capital, the cost of such capital, and the results of our financing and refinancing efforts, including availability of funds in the debt capital markets; (16) actions by rating agencies; (17) effectiveness of CenterPoint Energy’s risk management activities; (18) inability of various counterparties to meet their obligations; (19) non-payment for services due to financial distress of CenterPoint Energy’s customers; (20) the ability of GenOn Energy, Inc. (formerly known as RRI Energy, Inc.) and its subsidiaries to satisfy their obligations to CenterPoint Energy and its subsidiaries; (21) the ability of retail electric providers, and particularly the two largest customers of the TDU, to satisfy their obligations to CenterPoint Energy and its subsidiaries; (22) the outcome of litigation brought by or against CenterPoint Energy; (23) CenterPoint Energy’s ability to control costs; (24) the investment performance of pension and postretirement benefit plans; (25) potential business strategies, including restructurings, acquisitions or dispositions of assets or businesses; (26) acquisition and merger activities involving CenterPoint Energy or its competitors; and (27) other factors discussed in CenterPoint Energy’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011, and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

 

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CenterPoint Energy, Inc. and Subsidiaries

Reconciliation of reported Net Income and diluted EPS to the basis used in providing 2011 annual earnings guidance

 

     Quarter Ended
December 31, 2011
    Twelve Months Ended
December 31, 2011
 
     Net Income     EPS     Net Income     EPS  
     (in millions)           (in millions)        

As reported

   $ 117      $ 0.27      $ 1,357      $ 3.17   

True-up related items:

        

Debt component return, net of taxes

     —          —          (224     (0.52

Extraordinary item, net of taxes

     —          —          (587     (1.37
  

 

 

   

 

 

   

 

 

   

 

 

 

Excluding true-up related items

   $ 117      $ 0.27      $ 546      $ 1.27 (3)  
  

 

 

   

 

 

   

 

 

   

 

 

 

Timing effects impacting CES (1) :

        

Mark-to-market (gains) losses - natural gas derivative contracts

     (1     (0.00     (6     (0.01

Natural gas inventory write-downs

     3        0.01        7        0.02   

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

        

Marketable securities (2)

     (32     (0.07     (12     (0.03

Indexed debt securities

     20        0.05        (23     (0.05
  

 

 

   

 

 

   

 

 

   

 

 

 

Per the basis used in providing 2011 annual earnings guidance

   $ 107      $ 0.26      $ 512      $ 1.20   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  

Competitive natural gas sales and services

(2)  

Time Warner Inc., Time Warner Cable Inc. and AOL Inc.

(3)  

Numbers do not add due to rounding

###


CenterPoint Energy, Inc. and Subsidiaries

Statements of Consolidated Income

(Millions of Dollars)

(Unaudited)

 

     Three Months Ended
December 31,
    Year Ended
December 31,
 
       2010     2011     2010     2011  

Revenues:

        

Electric Transmission & Distribution

   $ 506      $ 535      $ 2,205      $ 2,337   

Natural Gas Distribution

     813        793        3,213        2,841   

Competitive Natural Gas Sales and Services

     592        635        2,651        2,511   

Interstate Pipelines

     145        129        601        553   

Field Services

     96        107        338        412   

Other Operations

     2        2        11        11   

Eliminations

     (56     (56     (234     (215
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

     2,098        2,145        8,785        8,450   
  

 

 

   

 

 

   

 

 

   

 

 

 

Expenses:

        

Natural gas

     1,053        1,066        4,574        4,055   

Operation and maintenance

     451        502        1,719        1,835   

Depreciation and amortization

     204        209        864        886   

Taxes other than income taxes

     88        94        379        376   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

     1,796        1,871        7,536        7,152   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating Income

     302        274        1,249        1,298   
  

 

 

   

 

 

   

 

 

   

 

 

 

Other Income (Expense):

        

Gain on marketable securities

     32        49        67        19   

Gain (loss) on indexed debt securities

     (31     (30     (31     35   

Interest and other finance charges

     (117     (115     (481     (456

Interest on transition and system restoration bonds

     (34     (31     (140     (127

Equity in earnings of unconsolidated affiliates

     7        8        29        30   

Return on true-up balance

     —          —          —          352   

Other—net

     5        4        12        23   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

     (138     (115     (544     (124
  

 

 

   

 

 

   

 

 

   

 

 

 

Income Before Income Taxes and Extraordinary Item

     164        159        705        1,174   

Income Tax Expense

     40        42        263        404   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income Before Extraordinary Item

     124        117        442        770   

Extraordinary Item, net of tax

     —          —          —          587   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Income

   $ 124      $ 117      $ 442      $ 1,357   
  

 

 

   

 

 

   

 

 

   

 

 

 

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)

 

     Three Months Ended
December 31,
     Year Ended
December 31,
 
     2010      2011      2010      2011  

Basic Earnings Per Common Share:

           

Income Before Extraordinary Item

   $ 0.29       $ 0.27       $ 1.08       $ 1.81   

Extraordinary item, net of tax

     —           —           —           1.38   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net Income

   $ 0.29       $ 0.27       $ 1.08       $ 3.19   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted Earnings Per Common Share:

           

Income Before Extraordinary Item

   $ 0.29       $ 0.27       $ 1.07       $ 1.80   

Extraordinary item, net of tax

     —           —           —           1.37   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net Income

   $ 0.29       $ 0.27       $ 1.07       $ 3.17   
  

 

 

    

 

 

    

 

 

    

 

 

 

Dividends Declared per Common Share

   $ 0.1950       $ 0.1975       $ 0.7800       $ 0.7900   

Weighted Average Common Shares Outstanding (000):

           

- Basic

     423,860         425,989         409,721         425,636   

- Diluted

     426,963         429,096         412,776         428,724   

Operating Income by Segment

           

Electric Transmission & Distribution:

           

Electric Transmission and Distribution Operations

   $ 56       $ 62       $ 427       $ 496   

Transition and System Restoration Bond Companies

     34         31         140         127   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Electric Transmission & Distribution

     90         93         567         623   

Natural Gas Distribution

     86         73         231         226   

Competitive Natural Gas Sales and Services

     —           3         16         6   

Interstate Pipelines

     63         52         270         248   

Field Services

     57         53         151         189   

Other Operations

     6         —           14         6   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 302       $ 274       $ 1,249       $ 1,298   
  

 

 

    

 

 

    

 

 

    

 

 

 
           

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  
    Three Months Ended
December 31,
    %  Diff
Fav/(Unfav)
    Year Ended
December 31,
    %  Diff
Fav/(Unfav)
 
    2010     2011       2010     2011    

Results of Operations:

           

Revenues:

           

Electric transmission and distribution utility

  $ 413      $ 439        6   $ 1,768      $ 1,893        7

Transition and system restoration bond companies

    93        96        3     437        444        2
 

 

 

   

 

 

     

 

 

   

 

 

   

Total

    506        535        6     2,205        2,337        6
 

 

 

   

 

 

     

 

 

   

 

 

   

Expenses:

           

Operation and maintenance

    232        253        (9 %)      841        908        (8 %) 

Depreciation and amortization

    74        72        3     293        279        5

Taxes other than income taxes

    51        52        (2 %)      207        210        (1 %) 

Transition and system restoration bond companies

    59        65        (10 %)      297        317        (7 %) 
 

 

 

   

 

 

     

 

 

   

 

 

   

Total

    416        442        (6 %)      1,638        1,714        (5 %) 
 

 

 

   

 

 

     

 

 

   

 

 

   

Operating Income

  $ 90      $ 93        3   $ 567      $ 623        10
 

 

 

   

 

 

     

 

 

   

 

 

   

Operating Income:

           

Electric transmission and distribution operations

  $ 56      $ 62        11   $ 427      $ 496        16

Transition and system restoration bond companies

    34        31        (9 %)      140        127        (9 %) 
 

 

 

   

 

 

     

 

 

   

 

 

   

Total Segment Operating Income

  $ 90      $ 93        3   $ 567      $ 623        10
 

 

 

   

 

 

     

 

 

   

 

 

   

Electric Transmission & Distribution

           

Operating Data:

           

Actual MWH Delivered

           

Residential

    5,054,882        5,173,066        2     26,554,309        28,510,924        7

Total

    17,020,701        17,210,481        1     76,973,117        80,012,853        4

Weather (average for service area):

           

Percentage of 10-year average:

           

Cooling degree days

    108     104     (4 %)      105     121     16

Heating degree days

    94     96     2     133     102     (31 %) 

Number of metered customers—end of period:

           

Residential

    1,867,251        1,904,818        2     1,867,251        1,904,818        2

Total

    2,110,608        2,155,710        2     2,110,608        2,155,710        2


 

    Natural Gas Distribution  
    Three Months Ended
December 31,
    % Diff
Fav/
(Unfav)
    Year Ended
December 31,
    % Diff
Fav/
(Unfav)
 
    2010     2011       2010     2011    

Results of Operations:

           

Revenues

  $ 813      $ 793        (2 %)    $ 3,213      $ 2,841        (12 %) 
 

 

 

   

 

 

     

 

 

   

 

 

   

Expenses:

           

Natural gas

    486        472        3     2,049        1,675        18

Operation and maintenance

    168        174        (4 %)      639        655        (3 %) 

Depreciation and amortization

    42        42        —          166        166        —     

Taxes other than income taxes

    31        32        (3 %)      128        119        7
 

 

 

   

 

 

     

 

 

   

 

 

   

Total

    727        720        1     2,982        2,615        12
 

 

 

   

 

 

     

 

 

   

 

 

   

Operating Income

  $ 86      $ 73        (15 %)    $ 231      $ 226        (2 %) 
 

 

 

   

 

 

     

 

 

   

 

 

   

Natural Gas Distribution Operating Data:

           

Throughput data in BCF

           

Residential

    52        50        (4 %)      177        172        (3 %) 

Commercial and Industrial

    67        64        (4 %)      249        251        1
 

 

 

   

 

 

     

 

 

   

 

 

   

Total Throughput

    119        114        (4 %)      426        423        (1 %) 
 

 

 

   

 

 

     

 

 

   

 

 

   

Weather (average for service area)

           

Percentage of 10-year average:

           

Heating degree days

    100     88     (12 %)      107     100     (7 %) 

Number of customers—end of period:

           

Residential

    3,016,333        3,036,267        1     3,016,333        3,036,267        1

Commercial and Industrial

    246,891        246,220        —          246,891        246,220        —     
 

 

 

   

 

 

     

 

 

   

 

 

   

Total

    3,263,224        3,282,487        1     3,263,224        3,282,487        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  
     Three Months Ended
December 31,
     % Diff
Fav/(Unfav)
    Year Ended
December 31,
     % Diff
Fav/(Unfav)
 
     2010      2011        2010      2011     

Results of Operations:

                

Revenues

   $ 592       $ 635         7   $ 2,651       $ 2,511         (5 %) 
  

 

 

    

 

 

      

 

 

    

 

 

    

Expenses:

                

Natural gas

     582         620         (7 %)      2,591         2,458         5

Operation and maintenance

     9         10         (11 %)      38         41         (8 %) 

Depreciation and amortization

     1         2         (100 %)      4         5         (25 %) 

Taxes other than income taxes

     —           —           —          2         1         50
  

 

 

    

 

 

      

 

 

    

 

 

    

Total

     592         632         (7 %)      2,635         2,505         5
  

 

 

    

 

 

      

 

 

    

 

 

    

Operating Income

   $ —         $ 3         —        $ 16       $ 6         (63 %) 
  

 

 

    

 

 

      

 

 

    

 

 

    

Competitive Natural Gas Sales and Services Operating Data:

                

Throughput data in BCF

     144         151         5     548         558         2
  

 

 

    

 

 

      

 

 

    

 

 

    

Number of customers—end of period

     12,193         14,267         17     12,193         14,267         17
  

 

 

    

 

 

      

 

 

    

 

 

    
     Interstate Pipelines  
     Three Months Ended
December 31,
     % Diff
Fav/(Unfav)
    Year Ended
December 31,
     % Diff
Fav/(Unfav)
 
     2010      2011        2010      2011     

Results of Operations:

                

Revenues

   $ 145       $ 129         (11 %)    $ 601       $ 553         (8 %) 
  

 

 

    

 

 

      

 

 

    

 

 

    

Expenses:

                

Natural gas

     21         13         38     93         67         28

Operation and maintenance

     41         43         (5 %)      153         152         1

Depreciation and amortization

     13         14         (8 %)      52         54         (4 %) 

Taxes other than income taxes

     7         7         —          33         32         3
  

 

 

    

 

 

      

 

 

    

 

 

    

Total

     82         77         6     331         305         8
  

 

 

    

 

 

      

 

 

    

 

 

    

Operating Income

   $ 63       $ 52         (17 %)    $ 270       $ 248         (8 %) 
  

 

 

    

 

 

      

 

 

    

 

 

    

Equity in earnings of unconsolidated affiliates

     4       $ 6         50     19       $ 21         11
  

 

 

    

 

 

      

 

 

    

 

 

    

Pipelines Operating Data:

                

Throughput data in BCF

                

Transportation

     433         371         (14 %)      1,693         1,579         (7 %) 
  

 

 

    

 

 

      

 

 

    

 

 

    

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)

 

     Field Services  
     Three Months Ended
December 31,
     % Diff
Fav/(Unfav)
    Year Ended
December 31,
     % Diff
Fav/(Unfav)
 
     2010     2011        2010     2011     

Results of Operations:

              

Revenues

   $ 96      $ 107         11   $ 338      $ 412         22
  

 

 

   

 

 

      

 

 

   

 

 

    

Expenses:

              

Natural gas

     19        16         16     72        68         6

Operation and maintenance

     10        29         (190 %)      85        112         (32 %) 

Depreciation and amortization

     8        9         (13 %)      25        37         (48 %) 

Taxes other than income taxes

     2        —           —          5        6         (20 %) 
  

 

 

   

 

 

      

 

 

   

 

 

    

Total

     39        54         (38 %)      187        223         (19 %) 
  

 

 

   

 

 

      

 

 

   

 

 

    

Operating Income

   $ 57      $ 53         (7 %)    $ 151      $ 189         25
  

 

 

   

 

 

      

 

 

   

 

 

    

Equity in earnings of unconsolidated affiliates

   $ 2      $ 2         —        $ 10      $ 9         (10 %) 
  

 

 

   

 

 

      

 

 

   

 

 

    

Field Services Operating Data:

              

Throughput data in BCF

              

Gathering

     186        237         27     650        823         27
  

 

 

   

 

 

      

 

 

   

 

 

    
     Other Operations  
     Three Months Ended
December 31,
     % Diff
Fav/(Unfav)
    Year Ended
December 31,
     % Diff
Fav/(Unfav)
 
     2010     2011        2010     2011     

Results of Operations:

              

Revenues

   $ 2      $ 2         —        $ 11      $ 11         —     

Expenses (Income)

     (4     2         (150 %)      (3     5         (267 %) 
  

 

 

   

 

 

      

 

 

   

 

 

    

Operating Income

   $ 6      $ —           —        $ 14      $ 6         (57 %) 
  

 

 

   

 

 

      

 

 

   

 

 

    

Capital Expenditures by Segment

(Millions of Dollars)

(Unaudited)

 

     Three Months Ended
December 31,
     Year Ended
December 31,
 
     2010      2011      2010      2011  

Capital Expenditures by Segment

           

Electric Transmission & Distribution

   $ 146       $ 173       $ 463       $ 538   

Natural Gas Distribution

     74         80         202         295   

Competitive Natural Gas Sales and Services

     —           1         2         5   

Interstate Pipelines

     31         34         102         98   

Field Services

     196         38         668         201   

Other Operations

     10         26         25         54   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 457       $ 352       $ 1,462       $ 1,191   
  

 

 

    

 

 

    

 

 

    

 

 

 

(Millions of Dollars)

(Unaudited)

 

     Three Months Ended
December 31,
     Year Ended
December 31,
 
     2010     2011      2010     2011  

Interest Expense Detail

         

Amortization of Deferred Financing Cost

   $ 6      $ 4       $ 24      $ 27   

Capitalization of Interest Cost

     (4     1         (9     (4

Transition and System Restoration Bond Interest Expense

     34        31         140        127   

Other Interest Expense

     115        110         466        433   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total Interest Expense

   $ 151      $ 146       $ 621      $ 583   
  

 

 

   

 

 

    

 

 

   

 

 

 

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,      December 31,  
     2010      2011  

ASSETS

     

Current Assets:

     

Cash and cash equivalents

   $ 199       $ 220   

Other current assets

     2,383         2,117   
  

 

 

    

 

 

 

Total current assets

     2,582         2,337   
  

 

 

    

 

 

 

Property, Plant and Equipment, net

     11,732         12,402   
  

 

 

    

 

 

 

Other Assets:

     

Goodwill

     1,696         1,696   

Regulatory assets

     3,446         4,619   

Other non-current assets

     655         649   
  

 

 

    

 

 

 

Total other assets

     5,797         6,964   
  

 

 

    

 

 

 

Total Assets

   $ 20,111       $ 21,703   
  

 

 

    

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

     

Current Liabilities:

     

Short-term borrowings

   $ 53       $ 62   

Current portion of transition and system restoration bonds long-term debt

     283         307   

Current portion of indexed debt

     126         131   

Current portion of other long-term debt

     19         46   

Other current liabilities

     2,139         2,047   
  

 

 

    

 

 

 

Total current liabilities

     2,620         2,593   
  

 

 

    

 

 

 

Other Liabilities:

     

Accumulated deferred income taxes, net

     2,934         3,832   

Regulatory liabilities

     989         1,039   

Other non-current liabilities

     1,369         1,376   
  

 

 

    

 

 

 

Total other liabilities

     5,292         6,247   
  

 

 

    

 

 

 

Long-term Debt:

     

Transition and system restoration bonds

     2,522         2,215   

Other

     6,479         6,426   
  

 

 

    

 

 

 

Total long-term debt

     9,001         8,641   
  

 

 

    

 

 

 

Shareholders’ Equity

     3,198         4,222   
  

 

 

    

 

 

 

Total Liabilities and Shareholders’ Equity

   $ 20,111       $ 21,703   
  

 

 

    

 

 

 

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)

 

     Year Ended December 31,  
     2010     2011  

Cash Flows from Operating Activities:

    

Net income

   $ 442      $ 1,357   

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation and amortization

     891        916   

Deferred income taxes

     199        443   

Extraordinary item, net of tax

     —          (587

Return on true-up balance

     —          (352

Write-down of natural gas inventory

     6        11   

Changes in net regulatory assets

     14        31   

Changes in other assets and liabilities

     (164     45   

Other, net

     (2     24   
  

 

 

   

 

 

 

Net Cash Provided by Operating Activities

     1,386        1,888   

Net Cash Used in Investing Activities

     (1,420     (1,206

Net Cash Used in Financing Activities

     (507     (661
  

 

 

   

 

 

 

Net Increase (Decrease) in Cash and Cash Equivalents

     (541     21   

Cash and Cash Equivalents at Beginning of Period

     740        199   

Cash and Cash Equivalents at End of Period

   $ 199      $ 220   
  

 

 

   

 

 

 

Reference is made to the Notes to the Consolidated Financial Statements

contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.

The Benefits of a Balanced Electric & Natural Gas Portfolio
NYSE: CNP
www.CenterPointEnergy.com
Full Year 2011 Earnings
Supplemental Materials
February 29, 2012
Exhibit 99.2


February 29, 2012
2
Full Year 2011 Earnings
Cautionary Statement Regarding
Forward-Looking Information
This presentation contains statements concerning our expectations, beliefs, plans, objectives, goals, strategies,
future events or performance and underlying assumptions and other statements that are not historical facts.  These
statements are “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act of
1995.
Actual
results
may
differ
materially
from
those
expressed
or
implied
by
these
statements.
You
can
generally
identify
our
forward-looking
statements
by
the
words
“anticipate,”
“believe,”
“continue,”
“could,”
“estimate,”
“expect,”
“forecast,”
“goal,”
“intend,”
“may,”
“objective,”
“plan,”
“potential,”
“predict,”
“projection,”
“should,”
“will,”
or
other
similar words.
We have based our forward-looking statements on our management's beliefs and assumptions based on
information currently available to our management at the time the statements are made.  We caution you that
assumptions, beliefs, expectations, intentions, and projections about future events may and often do vary materially
from actual results.  Therefore, we cannot assure you that actual results will not differ materially from those
expressed or implied by our forward-looking statements.
Some of the factors that could cause actual results to differ from those expressed or implied by our forward-
looking statements include the timing and impact of future regulatory, legislative and IRS decisions, financial market
conditions, future market conditions, and other factors described in CenterPoint Energy, Inc.’s Form 10-K for the
period ended December 31, 2011, under “Risk Factors”
and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations -
Certain Factors Affecting Future Earnings”, and in other filings with the SEC
by CenterPoint Energy.
You should not place undue reliance on forward-looking statements.  Each forward-looking statement speaks
only as of the date of this presentation, and we undertake no obligation to publicly update or revise any forward-
looking statements except as required by law.


Full Year 2011 Operating Income Drivers
12 months ended December 31, 2011
Interstate
Pipelines
$(22)
Field Services
$38
Other
$(8)
Competitive
Natural Gas
Sales & Service
$(10)
+
Customer
growth
+
Lower bad
debt expense
+
Rate
increases
¯
Higher benefit
costs
¯
Lower
miscellaneous
revenues
¯
Other,
primarily
higher
expenses
+
New firm
transportation
contracts and
higher
ancillary
services
¯
Restructured
contracts with
natural gas
distribution
affiliates
¯
Lower off-
system
revenues due
to declining
basis
¯
Expiring
Carthage to
Perryville
pipeline
backhaul
contract
Natural Gas
Distribution
$(5)
Electric TDU
$69
+
Higher
throughput in
Haynesville
and
Fayetteville
shales
¯
2010 gain on
sale of non-
strategic
assets
¯
Lower
commodity
prices
¯
Higher O&M,
depreciation,
and other
taxes due to
Magnolia and
Olympia
expansion
+
Increased
usage,
primarily
weather
+
Customer
growth
+
Lower D&A
+
Higher net
TCOS
¯
Rate case
impact
¯
Other,
primarily
higher O&M
+
Higher mark-to-
market in 2011
versus 2010
¯
Lower
optimization
opportunities
around  pipeline
and storage
assets
¯
Release of
transportation
capacity
¯
Higher
inventory write-
down in in 2011
versus 2010
$1,109
$1,171
(in millions)
2010
2011
Total Operating Income
$1,249
Total Operating Income
$1,298
Securitization
Bonds
$140
Securitization
Bonds
$127
February 29, 2012
3
Full Year 2011 Earnings


Electric Transmission & Distribution
2011 Operating Income Drivers
Increased
usage,
primarily
weather
Customer
growth
Other,
primarily
higher O&M
and lower
misc.
revenues
Lower
depreciation
expense
*  Excludes operating income from transition and system restoration
bonds of $140 million and $127 million for 2010 and  2011, respectively
(in millions)
42%
Percentage of adjusted
operating income which
excludes $127 million of
securitization bonds
2010
2011
Higher net
TCOS
Rate case
impact
February 29, 2012
4
Full Year 2011 Earnings


Electric Transmission & Distribution
Operating Income
Note:
Results
exclude
operating
income
from
the
Transition
and
System
Restoration
Bond
Companies,
the
Competition
Transition
Charge
and
the
Final
Fuel
Reconciliation
(see
reconciliation
on
page
28).
(in millions)
February 29, 2012
5
Full Year 2011 Earnings


Electric Transmission & Distribution
Capital Expenditures
(in millions)
February 29, 2012
6
Full Year 2011 Earnings


February 29, 2012
7
Full Year 2011 Earnings
Electric Transmission & Distribution
Innovative Rate Mechanisms
Recovery mechanisms reduce rate case frequency and allow more timely recovery of and on investments
Interim Transmission Cost of Service (TCOS) Adjustment
Transmission Cost Recovery Factor (TCRF)
Distribution Cost Recovery Factor (DCRF)
Other Mechanisms
ERCOT transmission service providers (TSPs) charge distribution service providers (DSPs) the cost of transmission investment
Allows CEHE to make a filing up to two times per year to update its TCOS to recover a return of and on transmission related plant investments
CEHE is allowed to request rate increases twice a year to recover increased transmission costs from other TSPs
Additionally, CEHE is allowed to defer, until its next TCRF update, any increase in expense from other TSPs
In September 2011, the PUC approved a periodic rate adjustment mechanism that mitigates regulatory lag for distribution capital investment
Allows CEHE to file to update its rates each year effective September 1 to recover a return of and on new distribution related plant investment
(net of changes in distribution related accumulated deferred federal income tax)
No DCRF adjustment if the annual earnings monitoring report shows a utility is earning more than its authorized rate of return on a weather
normalized basis
Deferral
of
Pension
Costs
allows
a
utility
to
defer
the
excess
pension
and
other
postemployment
benefits
costs
over
the
amount
that
was
approved in the utility’s last general rate proceeding
Deferral
of
Bad
Debt
authorizes
utility
to
defer
bad
debts
resulting
from
defaults
by
REPs
for
recovery
in
a
future
rate
case
Energy
Efficiency
Cost
Recovery
Factor
(EECRF)
recovery
of
certain
energy
efficiency
program
costs
Advanced
Metering
System
(AMS)
Surcharge
continues
until
December
2014
for
residential
customers
and
until
April
2017
for
commercial
and industrial customers


Natural Gas Distribution
2011 Operating Income Drivers
Higher
benefit
costs
(in millions)
19%
2010
2011
Lower
misc.
revenues
Other,
primarily
higher
expenses
Customer
growth
Lower bad
debt
expense
Rate
increases
Percentage of adjusted
operating income which
excludes $127 million of
securitization bonds
February 29, 2012
8
Full Year 2011 Earnings


Earned at or near authorized return on equity over last two years
Natural Gas Distribution
Operating Income
(in millions)
February 29, 2012
9
Full Year 2011 Earnings


Natural Gas Distribution
Capital Expenditures
Increased capital investments primarily for infrastructure, safety and technology will drive 6 percent growth
in rate base
(in millions)
February 29, 2012
10
Full Year 2011 Earnings


Natural Gas Distribution
Innovative Rate Mechanisms
Rate mechanisms reduce rate case frequency and decouple revenues
from consumption
February 29, 2012
11
Full Year 2011 Earnings


Interstate Pipelines
2011 Operating Income Drivers
Restructured
contracts with
natural gas
distribution
affiliates
(in millions)
21%
2010
2011
Lower off-
system
revenues due
to declining
basis
Expiring
Carthage to
Perryville
pipeline
backhaul
contract
New firm
transportation
contracts and
higher
ancillary
revenues
Percentage of adjusted
operating income which
excludes $127 million of
securitization bonds
February 29, 2012
12
Full Year 2011 Earnings


Interstate Pipelines
Operating Income
Operating income has benefited from core transportation contracts
Ancillary services are variable based on market conditions
More competition for new and existing customers expected in the future
(in millions)
Note: Interstate Pipelines also earned $6 million, $36 million, $7 million, $19 million and $21 million of
equity income from its 50% interest in Southeast Supply Header, LLC for 2007, 2008, 2009, 2010 and
2011, respectively.
February 29, 2012
13
Full Year 2011 Earnings


(1)
Margin equals revenues minus natural gas expense
(2)
Natural gas and ancillary services (balancing, system management, liquids)
2
February 29, 2012
14
Full Year 2011 Earnings


(1)
Margin equals revenues minus natural gas expense
February 29, 2012
15
Full Year 2011 Earnings


Interstate Pipelines
Capital Expenditures
Planned capital expenditures support maintenance, pipeline upgrades, and pipeline safety and environmental
compliance
(in millions)
February 29, 2012
16
Full Year 2011 Earnings


Field Services
2011 Operating Income Drivers
Higher
throughput in
Haynesville and
Fayetteville
shales
(in millions)
16%
2010
2011
2010 gain on
sale of non-
strategic
assets
Lower
commodity
prices
Higher O&M,
depreciation,
and other
taxes due to
Magnolia and
Olympia
expansion
Percentage of adjusted
operating income which
excludes $127 million of
securitization bonds
February 29, 2012
17
Full Year 2011 Earnings


Field Services
Operating Income
Operating income has benefited from significant new investments in mid-continent shale plays
Contracted growth supported by fee-based contracts with volume commitments and/or guaranteed returns on capital deployed
(in millions)
Note: Field Services also earned $10 million, $15 million, $8 million, $10 million and $9 million of equity
earnings from its 50% interest in Waskom, a joint processing plant, for 2007, 2008, 2009, 2010 and
2011, respectively.
February 29, 2012
18
Full Year 2011 Earnings


(1)
Margin equals revenues minus natural gas expense
(2)
Natural gas and liquids
2
(in millions)
February 29, 2012
19
Full Year 2011 Earnings


(1)
Margin equals revenues minus natural gas expense
February 29, 2012
20
Full Year 2011 Earnings


Field Services
Capital Expenditures
Developing shale plays drove significant capital prior to 2012
Beyond 2012, expect to deploy moderate level of capital under existing contractual arrangements with customers
Capital for significant new opportunities not included
(in millions)
February 29, 2012
21
Full Year 2011 Earnings


Competitive Natural Gas Sales & Services
2011 Operating Income Drivers
Lower optimization
opportunities
around  pipeline
and storage assets
(in millions)
1%
2010
2011
Mark-to-market:
2011: $8 gain
2010: $4 gain
Inventory write-
down:
2011: $11
2010: $6
Release of
transportation
capacity
Percentage of adjusted
operating income which
excludes $127 million of
securitization bonds
February 29, 2012
22
Full Year 2011 Earnings


Competitive Natural Gas Sales & Services
Operating Income
Operating income has been negatively impacted by the significant
reductions in basis and seasonal spreads
Pipeline and storage capacity has been reduced to closely match customers requirements
(in millions)
February 29, 2012
23
Full Year 2011 Earnings


Competitive Natural Gas Sales & Services
Customers and Sales Volumes
February 29, 2012
24
Full Year 2011 Earnings


February 29, 2012
25
Full Year 2011 Earnings
25
Debt and Capitalization Ratio
Excluding transition and system restoration bonds
*  The transition and system restoration bonds are non-recourse to CenterPoint Energy and CenterPoint Energy Houston Electric and are
serviced through collections of separate charges which are held in trust.
**
The
debt
component
reflected
on
the
financial
statements
was
$131
as
of
December
31,
2011
and
$126
million
as
of
December
31,
2010. 
The principal amount on which 2% interest is paid was $840 million as of December 31, 2011 and December 31, 2010.  The  contingent
principal amount was $797 as of December 31, 2011 and $805 million as of December 31, 2010.


Credit Metrics and Ratings
*  Calculated per CNP’s interpretation of S&P methodology; actual calculations may include other adjustments not anticipated
Credit Ratings
Rating
Outlook
Rating
Outlook
Rating
Outlook
CenterPoint Energy (Senior Unsecured)
Baa3
Stable
BBB
Stable
BBB-
Positive
CEHE (Senior Secured)
 
(1)
A3
Stable
A-
Stable
A-
Positive
CERC (Senior Unsecured)
Baa2
Stable
BBB+
Stable
BBB
Stable
(1) General mortgage bonds and first mortgage bonds.
Moody’s
Fitch
S&P
February 29, 2012
26
Full Year 2011 Earnings


February 29, 2012
27
Full Year 2011 Earnings
Liquidity
Available Liquidity ($MM)
Amount Utilized
Amount Unutilized
Bank Facilities
Type of Facility
Size of Facility
at February 13, 2012
at February 13, 2012
CenterPoint Energy
Revolver
1,200
$      
13
$                  
(1)
1,187
$            
CEHE
Revolver
300
          
4
                     
(1)
296
                 
CERC
Revolver
950
          
-
                      
950
                 
Total Credit Facilities
2,450
$      
17
$                 
2,433
$            
(1) Represents outstanding letters of credit.
Temporary Investments
Investments in Money Market Funds
   (as of February 13, 2012)
1,486
              
Available Liquidity
3,919
$            


Reconciliation of CEHE Operating Income to
Adjusted Operating Income
February 29, 2012
28
Full Year 2011 Earnings