UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): AUGUST 8, 2005 ------------------------------ CENTERPOINT ENERGY, INC. (Exact name of registrant as specified in its charter) TEXAS 1-31447 74-0694415 (State or other jurisdiction (Commission File Number) (IRS Employer of incorporation) Identification No.) 1111 LOUISIANA HOUSTON, TEXAS 77002 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (713) 207-1111 ------------------------------ Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] 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 August 8, 2005, CenterPoint Energy, Inc. ("CenterPoint Energy") reported second quarter 2005 earnings. For additional information regarding CenterPoint Energy's second quarter 2005 earnings, please refer to CenterPoint Energy's press release attached to this report as Exhibit 99.1 (the "Press Release"), which Press Release is incorporated by reference herein. The information in the Press Release is being furnished, not filed, pursuant to Item 2.02. Accordingly, the information in the Press Release will not be incorporated by reference into any registration statement filed by CenterPoint Energy under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS. The exhibit listed below is furnished pursuant to Item 2.02 of this Form 8-K. (c) Exhibits. 99.1 Press Release issued August 8, 2005 regarding CenterPoint Energy, Inc.'s second quarter 2005 earnings.
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CENTERPOINT ENERGY, INC. Date: August 8, 2005 By: /s/ James S. Brian ------------------------------ James S. Brian Senior Vice President and Chief Accounting Officer
EXHIBIT INDEX EXHIBIT NUMBER EXHIBIT DESCRIPTION - ------- ------------------- 99.1 Press Release issued August 8, 2005 regarding CenterPoint Energy, Inc.'s second quarter 2005 earnings
EXHIBIT 99.1 [CENTERPOINT(TM) For more information contact ENERGY LOGO] MEDIA: LETICIA LOWE Phone 713.207.7702 INVESTORS: MARIANNE PAULSEN Phone 713.207.6500 FOR IMMEDIATE RELEASE Page 1 of 4 - -------------------------------------------------------------------------------- CENTERPOINT ENERGY REPORTS SECOND QUARTER 2005 EARNINGS HOUSTON, TX - AUGUST 8, 2005 - CenterPoint Energy, Inc. (NYSE: CNP) today reported net income of $54 million, or $0.16 per diluted share, for the second quarter of 2005 compared to $57 million, or $0.19 per diluted share, for the same period of 2004. Net income for the second quarter of 2005 included an extraordinary gain of $30 million, or $0.08 per diluted share, reflecting an adjustment to the extraordinary loss recorded in the second half of 2004 to write-down generation-related regulatory assets as a result of the final orders issued by the Public Utility Commission of Texas (PUC). In addition, net income for the second quarter of 2005 included a loss of $3 million, or $0.01 per diluted share, from discontinued operations compared to income of $60 million, or $0.20 per diluted share, from discontinued operations for the second quarter of 2004. Income from continuing operations before extraordinary item for the second quarter of 2005 was $27 million, or $0.09 per diluted share, compared to a loss of $3 million, or $0.01 per diluted share, for the second quarter of 2004. The second quarter of 2005 included after-tax income of $23 million, or $0.06 per diluted share, related to interest on the company's authorized true-up balance. "Our core energy delivery businesses had another quarter of solid operating and financial performance," said David M. McClanahan, president and chief executive officer of CenterPoint Energy. "We continue to make good progress towards enhancing the performance of each of our core businesses and positioning them for the future. I am also pleased that a final order from the Texas Public Utility Commission will allow us to begin recovering a portion of our stranded cost true-up balance through a competition transition charge to be implemented in the fall." For the six months ended June 30, 2005, net income was $121 million, or $0.35 per diluted share, compared to $131 million, or $0.42 per diluted share, for the same period of 2004. Net income for the six months ended June 30, 2005, included the extraordinary gain of $30 million, or $0.08 per diluted share, reflecting the adjustment to the extraordinary loss discussed above. In addition, net income for the six months ended June 30, 2005, included a loss of $3 million, or $0.01 per diluted share, from discontinued operations compared to income of $105 million, or $0.34 per diluted share, from discontinued operations for the same period of 2004. Income from continuing operations before extraordinary item for the six months ended June 30, 2005, was $94 million, or $0.28 per diluted share, compared to $26 million, or $0.08 per diluted share, for the same period of 2004. The six months ended June 30, 2005, included after-tax income of $45 million, or $0.13 per diluted share, related to interest on the company's authorized true-up balance.
[CENTERPOINT(TM) For more information contact ENERGY LOGO] MEDIA: LETICIA LOWE Phone 713.207.7702 INVESTORS: MARIANNE PAULSEN Phone 713.207.6500 FOR IMMEDIATE RELEASE Page 2 of 4 - -------------------------------------------------------------------------------- -more- OPERATING INCOME BY SEGMENT DETAILED ELECTRIC TRANSMISSION & DISTRIBUTION The electric transmission & distribution segment reported operating income of $122 million in the second quarter of 2005, consisting of $113 million for the regulated electric transmission & distribution utility (TDU) and $9 million for the transition bond company, which is an amount sufficient to pay interest on the transition bonds. Operating income for the second quarter of 2004 totaled $127 million, consisting of $118 million for the TDU and $9 million for the transition bond company. The TDU's revenues continued to benefit from solid customer growth, with over 48,000 metered customers added since June 30, 2004. Revenues also increased from favorable weather, increased usage and higher transmission cost recovery. Operation and maintenance expenses for the second quarter of 2004 reflected the impact of a $15 million partial reversal of a reserve related to the final fuel reconciliation of the formerly integrated electric utility. Excluding this impact, operation and maintenance expenses were $13 million greater than the prior year primarily due to higher tree trimming and transmission costs. Reduced pension expenses partially offset other expense increases. Taxes other than income taxes increased primarily due to higher state and local taxes. Operating income for the six months ended June 30, 2005, was $202 million, consisting of $184 million for the TDU and $18 million for the transition bond company. Operating income for the same period of 2004 totaled $212 million, consisting of $193 million for the TDU and $19 million for the transition bond company. NATURAL GAS DISTRIBUTION The natural gas distribution segment reported operating income of $19 million for the second quarter of 2005, compared to $23 million for the same period of 2004. The impacts of rate increases, continued customer growth with the addition of nearly 47,000 customers since June 30, 2004, and higher income from the company's competitive natural gas sales business were offset by decreased throughput. Operation and maintenance expenses remained flat in the second quarter of 2005 compared to the same period of 2004, primarily due to a decrease in benefit and pension expenses and the capitalization of previously incurred restructuring expenses as allowed by a recent regulatory order, which offset other expense increases. Depreciation expense increased in the quarter compared to the prior year due to higher plant balances. Operating income for the six months ended June 30, 2005, was $158 million compared to $140 million for the same period of 2004.
[CENTERPOINT(TM) For more information contact ENERGY LOGO] MEDIA: LETICIA LOWE Phone 713.207.7702 INVESTORS: MARIANNE PAULSEN Phone 713.207.6500 FOR IMMEDIATE RELEASE Page 3 of 4 - -------------------------------------------------------------------------------- -more- PIPELINES AND GATHERING The pipelines and gathering segment reported operating income of $52 million for the second quarter of 2005 compared to $42 million for the same period of 2004. The improvement in operating income for the quarter, largely driven by continuing favorable market dynamics, resulted primarily from higher operating margins in the pipeline business driven by increased demand for transportation and ancillary services. In addition, the company's core gas gathering operations benefited from increased throughput and demand for its services. Operating income for the six months ended June 30, 2005, was $116 million compared to $87 million for the same period of 2004. OTHER OPERATIONS The company's other operations reported an operating loss of $7 million for the second quarter of 2005 compared to an operating loss of $6 million for the same period of 2004. The operating loss for the six months ended June 30, 2005, was $14 million compared to an operating loss of $13 million for the same period of 2004. PARTIAL RECOVERY OF TRUE-UP BALANCE On July 14, 2005, the company received an order from the PUC allowing it to impose a competition transition charge (CTC) on retail electric providers to collect a portion of its approved true-up balance totaling approximately $570 million over 14 years, plus interest at an annual rate of 11.075 percent. Based on the accrual of interest provided for in the CTC order, the company expects that this amount will increase to approximately $600 million by the end of the third quarter, which is when the CTC is expected to be implemented. The CTC order also allows the company to collect approximately $24 million of rate case expenses over three years. The company cannot implement the CTC until the PUC takes final action on the motions for rehearing. NEW CREDIT FACILITY In June 2005, the company's natural gas distribution, pipelines and gathering operations subsidiary, CenterPoint Energy Resources, Corp. (CERC), closed on a five-year, $400 million revolving bank credit facility, replacing a three-year, $250 million facility due to mature in 2007. The new facility has a fully drawn cost of LIBOR plus 65 basis points at existing credit ratings, versus LIBOR plus 150 basis points for the facility it replaced.
[CENTERPOINT(TM) For more information contact ENERGY LOGO] MEDIA: LETICIA LOWE Phone 713.207.7702 INVESTORS: MARIANNE PAULSEN Phone 713.207.6500 FOR IMMEDIATE RELEASE Page 4 of 4 - -------------------------------------------------------------------------------- -more- WEBCAST OF EARNINGS CONFERENCE CALL CenterPoint Energy's management will host an earnings conference call on Monday, August 8, 2005, at 10:30 a.m. Central time or 11:30 a.m. Eastern time. Interested parties may listen to a live, audio broadcast of the conference call at www.CenterPointEnergy.com/investors/events. A replay of the call can be accessed approximately two hours after the completion of the call, and will be archived on the web site for at least one year. CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution and sales, interstate pipeline and gathering operations. The company serves nearly five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. Assets total approximately $16 billion. With more than 9,000 employees, CenterPoint Energy and its predecessor companies have been in business for more than 130 years. For more information, visit the Web site at www.CenterPointEnergy.com. ***** This news release includes forward-looking statements. Actual events and results may differ materially from those projected. The statements in this news release regarding future financial performance and results of operations and other statements that are not historical facts are forward-looking statements. Factors that could affect actual results include the timing and outcome of the true-up proceeding and any legal proceedings related thereto, the timing and impact of future regulatory and legislative decisions, effects of competition, weather variations, changes in CenterPoint Energy's or its subsidiaries' business plans, financial market conditions, the timing and extent of changes in commodity prices, particularly natural gas, the impact of unplanned facility outages and other factors discussed in CenterPoint Energy's and its subsidiaries' Form 10-Ks for the period ended December 31, 2004, Form 10-Qs for the periods ended March 31, 2005 and June 30, 2005, and other filings with the Securities and Exchange Commission. ###
CenterPoint Energy, Inc. and Subsidiaries Statements of Consolidated Income (Thousands of Dollars) (Unaudited) Quarter Ended June 30, Six Months Ended June 30, -------------------------- --------------------------- 2005 2004 2005 2004 ----------- ----------- ----------- ------------ Revenues: Electric Transmission & Distribution $ 414,057 $ 375,250 $ 759,051 $ 705,563 Natural Gas Distribution 1,429,692 1,244,985 3,759,924 3,376,317 Pipelines and Gathering 125,015 113,397 245,796 215,800 Other Operations 4,010 2,891 10,689 5,780 Eliminations (40,518) (36,141) (81,396) (75,260) ----------- ----------- ----------- ----------- Total 1,932,256 1,700,382 4,694,064 4,228,200 ----------- ----------- ----------- ----------- Expenses: Natural gas 1,192,626 1,010,613 3,140,962 2,772,490 Operation and maintenance 324,776 297,638 637,847 613,480 Depreciation and amortization 135,837 120,074 265,610 236,292 Taxes other than income taxes 92,705 86,176 187,366 180,164 ----------- ----------- ----------- ----------- Total 1,745,944 1,514,501 4,231,785 3,802,426 ----------- ----------- ----------- ----------- Operating Income 186,312 185,881 462,279 425,774 ----------- ----------- ----------- ----------- Other Income (Expense) : Gain (loss) on Time Warner investment (18,177) 15,581 (59,291) (8,872) Gain (loss) on indexed debt securities 23,819 (17,891) 63,348 9,123 Interest and other finance charges (179,652) (188,984) (352,992) (371,957) Interest on transition bonds (9,077) (9,547) (18,297) (19,221) Return on true-up balance 35,475 -- 69,557 -- Other - net 6,936 12,425 10,748 13,932 ----------- ----------- ----------- ----------- Total (140,676) (188,416) (286,927) (376,995) ----------- ----------- ----------- ----------- Income (Loss) from Continuing Operations Before Income Taxes and Extraordinary Item 45,636 (2,535) 175,352 48,779 Income Tax Expense (17,931) (191) (80,995) (22,607) ----------- ----------- ----------- ----------- Income (Loss) from Continuing Operations Before Extraordinary Item 27,705 (2,726) 94,357 26,172 ----------- ----------- ----------- ----------- Discontinued Operations: Income (Loss) from Texas Genco, net of tax (2,988) 75,636 10,685 131,922 Minority Interest related to Texas Genco, net of tax -- (15,258) -- (26,855) Loss on Disposal of Texas Genco, net of tax (735) -- (13,972) -- ----------- ----------- ----------- ----------- Total (3,723) 60,378 (3,287) 105,067 ----------- ----------- ----------- ----------- Income Before Extraordinary Item 23,982 57,652 91,070 131,239 ----------- ----------- ----------- ----------- Extraordinary Item, net of tax 30,441 -- 30,441 -- ----------- ----------- ----------- ----------- Net Income $ 54,423 $ 57,652 $ 121,511 $ 131,239 =========== =========== =========== =========== Reference is made to the Notes to the Consolidated Financial Statements contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.
CenterPoint Energy, Inc. and Subsidiaries Selected Data From Statements of Consolidated Income (Thousands of Dollars, Except Per Share Amounts) (Unaudited) Quarter Ended Six Months Ended June 30, June 30, ----------------------------- ----------------------------- 2005 2004 2005 2004 ----------- ----------- ----------- ----------- Basic Earnings Per Common Share: Income (Loss) from Continuing Operations $ 0.09 $ (0.01) $ 0.30 $ 0.09 Income (Loss) from Discontinued Operations (0.01) 0.20 (0.01) 0.34 Extraordinary Item, net of tax 0.10 -- 0.10 -- ----------- ----------- ----------- ----------- Net Income $ 0.18 $ 0.19 $ 0.39 $ 0.43 =========== =========== =========== =========== Diluted Earnings Per Common Share: Income from Continuing Operations $ 0.09 $ (0.01) $ 0.28 $ 0.08 Income (Loss) from Discontinued Operations (0.01) 0.20 (0.01) 0.34 Extraordinary Item, net of tax 0.08 -- 0.08 -- ----------- ----------- ----------- ----------- Net Income $ 0.16 $ 0.19 $ 0.35 $ 0.42 =========== =========== =========== =========== Dividends Declared per Common Share $ 0.07(1) $ 0.10 $ 0.27(1) $ 0.20 Weighted Average Common Shares Outstanding (000): - Basic 309,098 307,250 308,786 306,631 - Diluted 361,436 309,638 361,076 308,977 OPERATING INCOME (LOSS) BY SEGMENT Electric Transmission & Distribution: Transmission & Distribution Operations $ 113,190 $ 117,822 $ 183,799 $ 193,129 Transition Bond Company 8,932 9,498 18,015 19,106 ----------- ----------- ----------- ----------- Total Electric Transmission & Distribution 122,122 127,320 201,814 212,235 Natural Gas Distribution 19,038 22,775 158,531 139,399 Pipelines and Gathering 52,079 42,236 116,110 87,092 Other Operations (6,927) (6,450) (14,176) (12,952) ----------- ----------- ----------- ----------- Total $ 186,312 $ 185,881 $ 462,279 $ 425,774 =========== =========== =========== =========== (1) On January 26, 2005, the Company's board of directors declared a dividend of $0.10 per share of common stock payable on March 10, 2005 to shareholders of record as of the close of business on February 16, 2005. On March 3, 2005, the Company's board of directors declared a dividend of $0.10 per share of common stock payable on March 31, 2005 to shareholders of record as of the close of business on March 16, 2005. This additional first quarter dividend was declared in lieu of the regular second quarter dividend to address technical restrictions that might limit the Company's ability to pay a regular dividend during the second quarter of this year. On June 2, 2005, the Company's board of directors declared a dividend of $0.07 per share of common stock payable on June 30, 2005 to shareholders of record as of the close of business on June 15, 2005. Reference is made to the Notes to the Consolidated Financial Statements contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.
CenterPoint Energy, Inc. and Subsidiaries Results of Operations by Segment (Millions of Dollars) (Unaudited) ELECTRIC TRANSMISSION & DISTRIBUTION --------------------------------------------------------------------------- Quarter Ended Six Months Ended June 30, June 30, ---------------------- % Diff ---------------------- % Diff 2005 2004 Fav/(Unfav) 2005 2004 Fav/(Unfav) --------- --------- ----------- --------- --------- ----------- RESULTS OF OPERATIONS: Electric transmission and distribution revenues $ 388 $ 357 9% $ 711 $ 672 6% --------- --------- --------- --------- Electric transmission and distribution expenses: Operation and maintenance 153 125 (22%) 291 258 (13%) Depreciation and amortization 64 63 (2%) 128 123 (4%) Taxes other than income taxes 58 51 (14%) 108 98 (10%) --------- --------- --------- --------- Total electric transmission and distribution expenses 275 239 (15%) 527 479 (10%) --------- --------- --------- --------- Operating Income - Electric transmission and distribution utility 113 118 (4%) 184 193 (5%) Operating Income - Transition bond company 9 9 -- 18 19 (5%) --------- --------- --------- --------- Total Segment Operating Income $ 122 $ 127 (4%) $ 202 $ 212 (5%) ========= ========= ========= ========= Quarter Ended Six Months Ended June 30, June 30, ELECTRIC TRANSMISSION & DISTRIBUTION ----------------------- ----------------------- % Diff OPERATING DATA: 2005 2004 2005 2004 Fav/(Unfav) ACTUAL MWH DELIVERED ---------- ---------- ---------- ---------- ----------- Residential 6,593,895 5,800,958 14% 10,735,559 10,202,783 5% Total 18,956,313 18,545,202 2% 34,782,627 34,065,288 2% WEATHER (AVERAGE FOR SERVICE AREA): Percentage of normal: Cooling degree days 103% 100% 3% 105% 100% 5% Heating degree days 47% 100% (53%) 76% 86% (10%) AVERAGE NUMBER OF METERED CUSTOMERS: Residential 1,675,573 1,634,202 3% 1,668,447 1,628,074 2% Total 1,904,090 1,856,846 3% 1,895,556 1,849,762 2% Reference is made to the Notes to the Consolidated Financial Statements contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.
CenterPoint Energy, Inc. and Subsidiaries Results of Operations by Segment (Millions of Dollars) (Unaudited) NATURAL GAS DISTRIBUTION -------------------------------------------------------------------------------------- Quarter Ended Six Months Ended June 30, June 30, -------------------------- % Diff ------------------------- % Diff 2005 2004 Fav/(Unfav) 2005 2004 Fav/(Unfav) ---------- ----------- ----------- ---------- ---------- ----------- RESULTS OF OPERATIONS: Revenues $ 1,430 $ 1,245 15% $ 3,760 $ 3,376 11% ---------- ----------- ---------- ---------- Expenses: Natural gas 1,213 1,027 (18%) 3,188 2,816 (13%) Operation and maintenance 133 133 -- 273 283 4% Depreciation and amortization 39 35 (11%) 77 70 (10%) Taxes other than income taxes 26 27 4% 64 67 4% ---------- ----------- ---------- ---------- Total 1,411 1,222 (15%) 3,602 3,236 (11%) ---------- ----------- ---------- ---------- Operating Income $ 19 $ 23 (17%) $ 158 $ 140 13% ========== =========== ========== ========== NATURAL GAS DISTRIBUTION OPERATING DATA: THROUGHPUT DATA IN BCF Residential 21 21 -- 98 106 (8%) Commercial and Industrial 43 49 (12%) 120 132 (9%) Non-rate regulated 148 167 (11%) 331 306 8% Elimination (29) (63) 54% (78) (73) (7%) ---------- ----------- ---------- ---------- Total Throughput 183 174 5% 471 471 -- ========== =========== ========== ========== WEATHER (AVERAGE FOR SERVICE AREA) Percentage of normal: Heating degree days 86% 92% (6%) 91% 96% (5%) AVERAGE NUMBER OF CUSTOMERS: Residential 2,833,773 2,793,297 1% 2,842,645 2,802,379 1% Commercial and Industrial 246,032 242,111 2% 247,429 244,388 1% Non-rate regulated 6,533 6,265 4% 6,522 6,228 5% ---------- ----------- ---------- ---------- Total 3,086,338 3,041,673 1% 3,096,596 3,052,995 1% ========== =========== ========== ========== PIPELINES AND GATHERING ---------------------------------------------------------------------------- Quarter Ended Six Months Ended June 30, June 30, ------------------ % Diff ------------------ % Diff 2005 2004 Fav/(Unfav) 2005 2004 Fav/(Unfav) ----- ----- ----------- ----- ----- ----------- RESULTS OF OPERATIONS: Revenues $ 125 $ 113 11% $ 246 $ 216 14% ----- ----- ----- ----- Expenses: Natural gas 18 18 -- 25 28 11% Operation and maintenance 40 37 (8%) 74 70 (6%) Depreciation and amortization 11 11 -- 22 22 -- Taxes other than income taxes 4 5 20% 9 9 -- ----- ----- ----- ----- Total 73 71 (3%) 130 129 (1%) ----- ----- ----- ----- Operating Income $ 52 $ 42 24% $ 116 $ 87 33% ===== ===== ===== ===== PIPELINES AND GATHERING OPERATING DATA: THROUGHPUT DATA IN BCF Natural Gas Sales 3 4 (25%) 4 7 (43%) Transportation 230 207 11% 501 477 5% Gathering 87 79 10% 170 154 10% Elimination (2) (3) 33% (3) (5) 40% ----- ----- ----- ----- Total Throughput 318 287 11% 672 633 6% ===== ===== ===== ===== Reference is made to the Notes to the Consolidated Financial Statements contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.
CenterPoint Energy, Inc. and Subsidiaries Results of Operations by Segment (Millions of Dollars) (Unaudited) OTHER OPERATIONS ----------------------------------------------------------------- Quarter Ended Six Months Ended June 30, June 30, ---------------- % Diff ---------------- % Diff 2005 2004 Fav/(Unfav) 2005 2004 Fav/(Unfav) ------ ------ ----------- ------ ------ ----------- RESULTS OF OPERATIONS: Revenues $ 4 $ 3 33% $ 11 $ 6 83% Expenses 11 9 (22%) 25 19 (32%) ------ ------ ------ ------ Operating Loss $ (7) $ (6) (17%) $ (14) $ (13) (8%) ====== ====== ====== ====== Capital Expenditures by Segment (Millions of Dollars) (Unaudited) Quarter Ended Six Months Ended June 30, June 30, ------------------- ------------------- 2005 2004 2005 2004 ------ ------ ------ ------ CAPITAL EXPENDITURES BY SEGMENT Electric Transmission & Distribution $ 87 $ 52 $ 142 $ 94 Natural Gas Distribution 56 43 96 80 Pipelines and Gathering 31 9 53 24 Other Operations 5 7 10 12 ------ ------ ------ ------ Total $ 179 $ 111 $ 301 $ 210 ====== ====== ====== ====== Interest Expense Detail (Millions of Dollars) (Unaudited) Quarter Ended Six Months Ended June 30, June 30, -------------------- -------------------- 2005 2004 2005 2004 ------ ------ ------ ------ INTEREST EXPENSE DETAIL Amortization of Deferred Financing Cost $ 19 $ 22 $ 39 $ 44 Capitalization of Interest Cost (1) (1) (2) (2) Transition Bond Interest Expense 9 9 18 18 Other Interest Expense 161 168 316 331 ------ ------ ------ ------ Total Interest Expense 188 198 371 391 ------ ------ ------ ------ Amortization of Deferred Financing Cost Reclassified to Discontinued Operations -- 1 -- 2 Other Interest Reclassified to Discontinued Operations -- 11 -- 22 ------ ------ ------ ------ Total Interest Reclassified to Discontinued Operations (1) -- 12 -- 24 Interest Expense Incurred by Discontinued Operations -- -- 1 -- ------ ------ ------ ------ Total Expense in Discontinued Operations -- 12 1 24 ------ ------ ------ ------ Total Interest Expense Incurred $ 188 $ 210 $ 372 $ 415 ====== ====== ====== ====== (1) In accordance with Emerging Issues Task Force Issue No. 87-24 "Allocation of Interest to Discontinued Operations", in 2004, we have reclassified interest to discontinued operations of Texas Genco based on net proceeds received from the sale of Texas Genco of $2.5 billion, and have applied the proceeds to the amount of debt assumed to be paid down in 2004 according to the terms of the respective credit facilities in effect for that period. In periods where only the term loan was assumed to be repaid, the actual interest paid was reclassified. In periods where a portion of the revolver was assumed to be repaid, the percentage of that portion of the revolver to the total outstanding balance was calculated, and that percentage was applied to the actual interest paid in those periods to compute the amount of interest reclassified. Total interest expense was $188 million and $210 million for the three months ended June 30, 2005 and 2004, respectively, and $372 million and $415 million for the six months ended June 30, 2005 and 2004, respectively. Interest expense of $12 million for the three months ended June 30, 2004, and $24 million for the six months ended June 30, 2004, was reclassified to discontinued operations of Texas Genco. Reference is made to the Notes to the Consolidated Financial Statements contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.
CenterPoint Energy, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Thousands of Dollars) (Unaudited) June 30, December 31, 2005 2004 ----------- ----------- ASSETS CURRENT ASSETS: Cash and cash equivalents $ 408,162 $ 164,645 Other current assets 1,576,635 2,158,111 Current assets of discontinued operations -- 513,768 ----------- ----------- Total current assets 1,984,797 2,836,524 ----------- ----------- PROPERTY, PLANT AND EQUIPMENT, NET 8,273,291 8,186,393 ----------- ----------- OTHER ASSETS: Goodwill, net 1,744,252 1,740,510 Regulatory assets 2,928,968 3,349,944 Other non-current assets 958,383 997,428 Non-current assets of discontinued operations -- 1,051,158 ----------- ----------- Total other assets 5,631,603 7,139,040 ----------- ----------- TOTAL ASSETS $15,889,691 $18,161,957 =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Current portion of transition bond long-term debt $ 49,352 $ 46,806 Current portion of other long-term debt 1,748,083 1,789,182 Other current liabilities 1,840,224 2,902,238 Current liabilities of discontinued operations -- 448,974 ----------- ----------- Total current liabilities 3,637,659 5,187,200 ----------- ----------- OTHER LIABILITIES: Accumulated deferred income taxes, net and investment tax credit 2,522,664 2,468,833 Regulatory liabilities 744,260 1,081,370 Other non-current liabilities 753,072 705,643 Non-current liabilities of discontinued operations -- 420,393 ----------- ----------- Total other liabilities 4,019,996 4,676,239 ----------- ----------- LONG-TERM DEBT: Transition bond 610,462 628,903 Other 6,440,756 6,564,113 ----------- ----------- Total long-term debt 7,051,218 7,193,016 ----------- ----------- SHAREHOLDERS' EQUITY 1,180,818 1,105,502 ----------- ----------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $15,889,691 $18,161,957 =========== =========== Reference is made to the Notes to the Consolidated Financial Statements contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.
CenterPoint Energy, Inc. and Subsidiaries Condensed Statements of Consolidated Cash Flows (Thousands of Dollars) (Unaudited) Six Months Ended June 30, ------------------------- 2005 2004 --------- --------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 121,511 $ 131,239 Discontinued operations, net of tax 3,287 (105,067) Extraordinary item, net of tax (30,441) -- --------- --------- Income from continuing operations 94,357 26,172 Adjustments to reconcile income from continuing operations to net cash provided by operating activities: Depreciation and amortization 305,131 279,957 Deferred income taxes and investment tax credit 44,321 52,943 Changes in net regulatory assets and liabilities (132,449) (157,728) Changes in other assets and liabilities (211,379) 253,248 Other, net 6,166 21,045 --------- --------- NET CASH PROVIDED BY OPERATING ACTIVITIES 106,147 475,637 NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 397,549 (187,953) NET CASH USED IN FINANCING ACTIVITIES (260,179) (278,254) --------- --------- NET INCREASE IN CASH AND CASH EQUIVALENTS 243,517 9,430 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 164,645 86,922 --------- --------- CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 408,162 $ 96,352 ========= ========= Reference is made to the Notes to the Consolidated Financial Statements contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.