Texas (State or other jurisdiction of incorporation) |
1-31447 (Commission File Number) |
74-0694415 (IRS Employer Identification No.) |
1111 Louisiana Houston, Texas (Address of principal executive offices) |
77002 (Zip Code) |
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION | ||||||||
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS | ||||||||
SIGNATURE | ||||||||
EXHIBIT INDEX | ||||||||
Press Release |
(d) | Exhibits. | ||
99.1 | Press Release issued August 2, 2007 regarding CenterPoint Energy, Inc.s second quarter 2007 earnings. |
CENTERPOINT ENERGY, INC. | ||||||
Date: August 2, 2007
|
By: | /s/James S. Brian
|
||||
Senior Vice President and | ||||||
Chief Accounting Officer |
EXHIBIT | ||
NUMBER | EXHIBIT DESCRIPTION | |
99.1
|
Press Release issued August 2, 2007 regarding CenterPoint Energy, Inc.s second quarter 2007 earnings |
For more information contact Media: Leticia Lowe Phone 713.207.7702 Investors: Marianne Paulsen Phone 713.207.6500 |
FOR IMMEDIATE RELEASE | Page 1 of 4 |
For more information contact Media: Leticia Lowe Phone 713.207.7702 Investors: Marianne Paulsen Phone 713.207.6500 |
FOR IMMEDIATE RELEASE | Page 2 of 4 |
For more information contact Media: Leticia Lowe Phone 713.207.7702 Investors: Marianne Paulsen Phone 713.207.6500 |
FOR IMMEDIATE RELEASE | Page 3 of 4 |
For more information contact Media: Leticia Lowe Phone 713.207.7702 Investors: Marianne Paulsen Phone 713.207.6500 |
FOR IMMEDIATE RELEASE | Page 4 of 4 |
Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2006 | 2007 | 2006 | 2007 | |||||||||||||
Revenues: |
||||||||||||||||
Electric Transmission & Distribution |
$ | 456 | $ | 465 | $ | 841 | $ | 871 | ||||||||
Natural Gas Distribution |
549 | 576 | 2,029 | 2,143 | ||||||||||||
Competitive Natural Gas Sales and Services |
750 | 881 | 1,913 | 1,945 | ||||||||||||
Interstate Pipelines |
104 | 121 | 193 | 211 | ||||||||||||
Field Services |
34 | 42 | 75 | 81 | ||||||||||||
Other Operations |
5 | 3 | 9 | 5 | ||||||||||||
Eliminations |
(55 | ) | (55 | ) | (140 | ) | (117 | ) | ||||||||
Total |
1,843 | 2,033 | 4,920 | 5,139 | ||||||||||||
Expenses: |
||||||||||||||||
Natural gas |
1,035 | 1,208 | 3,228 | 3,358 | ||||||||||||
Operation and maintenance |
340 | 330 | 671 | 682 | ||||||||||||
Depreciation and amortization |
153 | 160 | 293 | 305 | ||||||||||||
Taxes other than income taxes |
95 | 93 | 202 | 199 | ||||||||||||
Total |
1,623 | 1,791 | 4,394 | 4,544 | ||||||||||||
Operating Income |
220 | 242 | 526 | 595 | ||||||||||||
Other Income (Expense) : |
||||||||||||||||
Gain (Loss) on Time Warner investment |
11 | 28 | (3 | ) | (16 | ) | ||||||||||
Gain (Loss) on indexed debt securities |
(11 | ) | (27 | ) | (1 | ) | 14 | |||||||||
Interest and other finance charges |
(118 | ) | (119 | ) | (233 | ) | (242 | ) | ||||||||
Interest on transition bonds |
(33 | ) | (32 | ) | (66 | ) | (63 | ) | ||||||||
Other net |
9 | 6 | 15 | 12 | ||||||||||||
Total |
(142 | ) | (144 | ) | (288 | ) | (295 | ) | ||||||||
Income from Before Income Taxes |
78 | 98 | 238 | 300 | ||||||||||||
Income Tax (Expense) Benefit |
116 | (28 | ) | 44 | (100 | ) | ||||||||||
Net Income |
$ | 194 | $ | 70 | $ | 282 | $ | 200 | ||||||||
Quarter Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2006 | 2007 | 2006 | 2007 | |||||||||||||
Basic Earnings Per Common Share: |
||||||||||||||||
Net Income |
$ | 0.62 | $ | 0.22 | $ | 0.91 | $ | 0.62 | ||||||||
Diluted Earnings Per Common Share: |
||||||||||||||||
Net Income |
$ | 0.61 | $ | 0.20 | $ | 0.89 | $ | 0.58 | ||||||||
Dividends Declared per Common Share |
$ | 0.15 | $ | 0.17 | $ | 0.30 | $ | 0.34 | ||||||||
Weighted Average Common Shares Outstanding (000): |
||||||||||||||||
- Basic |
311,440 | 320,927 | 311,145 | 319,501 | ||||||||||||
- Diluted |
316,816 | 343,770 | 317,744 | 342,024 | ||||||||||||
Operating
Income (Loss) by Segment |
||||||||||||||||
Electric Transmission & Distribution: |
||||||||||||||||
Transmission & Distribution Utility |
$ | 119 | $ | 128 | $ | 197 | $ | 201 | ||||||||
Transition Bond Companies |
32 | 29 | 64 | 60 | ||||||||||||
Total Electric Transmission & Distribution |
151 | 157 | 261 | 261 | ||||||||||||
Natural Gas Distribution |
(2 | ) | 8 | 101 | 137 | |||||||||||
Competitive Natural Gas Sales and Services |
7 | (4 | ) | 32 | 52 | |||||||||||
Interstate Pipelines |
40 | 52 | 89 | 96 | ||||||||||||
Field Services |
21 | 27 | 45 | 49 | ||||||||||||
Other Operations |
3 | 2 | (2 | ) | | |||||||||||
Total |
$ | 220 | $ | 242 | $ | 526 | $ | 595 | ||||||||
Electric Transmission & Distribution | ||||||||||||||||||||||||
Quarter Ended | Six Months Ended | |||||||||||||||||||||||
June 30, | % Diff | June 30, | % Diff | |||||||||||||||||||||
2006 | 2007 | Fav/(Unfav) | 2006 | 2007 | Fav/(Unfav) | |||||||||||||||||||
Results of Operations: |
||||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Electric transmission and distribution utility |
$ | 386 | $ | 395 | 2 | % | $ | 717 | $ | 742 | 3 | % | ||||||||||||
Transition bond companies |
70 | 70 | | 124 | 129 | 4 | % | |||||||||||||||||
Total |
456 | 465 | 2 | % | 841 | 871 | 4 | % | ||||||||||||||||
Expenses: |
||||||||||||||||||||||||
Operation and maintenance |
147 | 150 | (2 | %) | 281 | 304 | (8 | %) | ||||||||||||||||
Depreciation and amortization |
61 | 61 | | 124 | 124 | | ||||||||||||||||||
Taxes other than income taxes |
59 | 56 | 5 | % | 115 | 113 | 2 | % | ||||||||||||||||
Transition bond companies |
38 | 41 | (8 | %) | 60 | 69 | (15 | %) | ||||||||||||||||
Total |
305 | 308 | (1 | %) | 580 | 610 | (5 | %) | ||||||||||||||||
Operating Income |
$ | 151 | $ | 157 | 4 | % | $ | 261 | $ | 261 | | |||||||||||||
Operating Income Electric transmission and distribution utility |
119 | 128 | 8 | % | 197 | 201 | 2 | % | ||||||||||||||||
Operating Income Transition bond companies |
32 | 29 | (9 | %) | 64 | 60 | (6 | %) | ||||||||||||||||
Total Segment Operating Income |
$ | 151 | $ | 157 | 4 | % | $ | 261 | $ | 261 | | |||||||||||||
Electric Transmission & Distribution
Operating Data: |
||||||||||||||||||||||||
Actual MWH Delivered |
||||||||||||||||||||||||
Residential |
6,807,984 | 6,020,714 | (12 | %) | 10,794,374 | 10,678,773 | (1 | %) | ||||||||||||||||
Total |
20,422,341 | 19,175,278 | (6 | %) | 36,409,221 | 35,835,191 | (2 | %) | ||||||||||||||||
Weather (average for service area): |
||||||||||||||||||||||||
Percentage of normal: |
||||||||||||||||||||||||
Cooling degree days |
111 | % | 94 | % | (17 | %) | 114 | % | 96 | % | (18 | %) | ||||||||||||
Heating degree days |
0 | % | 197 | % | 197 | % | 60 | % | 114 | % | 54 | % | ||||||||||||
Average number of metered customers: |
||||||||||||||||||||||||
Residential |
1,730,130 | 1,767,749 | 2 | % | 1,723,983 | 1,760,006 | 2 | % | ||||||||||||||||
Total |
1,965,180 | 2,006,840 | 2 | % | 1,958,005 | 1,998,291 | 2 | % |
Natural Gas Distribution | ||||||||||||||||||||||||
Quarter Ended | Six Months Ended | |||||||||||||||||||||||
June 30, | % Diff | June 30, | % Diff | |||||||||||||||||||||
2006 | 2007 | Fav/(Unfav) | 2006 | 2007 | Fav/(Unfav) | |||||||||||||||||||
Results of Operations: |
||||||||||||||||||||||||
Revenues |
$ | 549 | $ | 576 | 5 | % | $ | 2,029 | $ | 2,143 | 6 | % | ||||||||||||
Expenses: |
||||||||||||||||||||||||
Natural gas |
343 | 366 | (7 | %) | 1,489 | 1,578 | (6 | %) | ||||||||||||||||
Operation and maintenance |
142 | 135 | 5 | % | 292 | 282 | 3 | % | ||||||||||||||||
Depreciation and amortization |
37 | 38 | (3 | %) | 75 | 76 | (1 | %) | ||||||||||||||||
Taxes other than income taxes |
29 | 29 | | 72 | 70 | 3 | % | |||||||||||||||||
Total |
551 | 568 | (3 | %) | 1,928 | 2,006 | (4 | %) | ||||||||||||||||
Operating Income (Loss) |
$ | (2 | ) | $ | 8 | 500 | % | $ | 101 | $ | 137 | 36 | % | |||||||||||
Natural Gas Distribution Operating Data: |
||||||||||||||||||||||||
Throughput data in BCF |
||||||||||||||||||||||||
Residential |
17 | 20 | 18 | % | 84 | 106 | 26 | % | ||||||||||||||||
Commercial and Industrial |
44 | 44 | | 116 | 126 | 9 | % | |||||||||||||||||
Total Throughput |
61 | 64 | 5 | % | 200 | 232 | 16 | % | ||||||||||||||||
Weather (average for service area) |
||||||||||||||||||||||||
Percentage of normal: |
||||||||||||||||||||||||
Heating degree days |
60 | % | 95 | % | 35 | % | 81 | % | 99 | % | 18 | % | ||||||||||||
Average number of customers: |
||||||||||||||||||||||||
Residential |
2,871,107 | 2,925,120 | 2 | % | 2,882,008 | 2,935,661 | 2 | % | ||||||||||||||||
Commercial and Industrial |
243,420 | 247,550 | 2 | % | 244,475 | 246,564 | 1 | % | ||||||||||||||||
Total |
3,114,527 | 3,172,670 | 2 | % | 3,126,483 | 3,182,225 | 2 | % | ||||||||||||||||
Competitive Natural Gas Sales and Services | ||||||||||||||||||||||||
Quarter Ended | Six Months Ended | |||||||||||||||||||||||
June 30, | % Diff | June 30, | % Diff | |||||||||||||||||||||
2006 | 2007 | Fav/(Unfav) | 2006 | 2007 | Fav/(Unfav) | |||||||||||||||||||
Results of Operations: |
||||||||||||||||||||||||
Revenues |
$ | 750 | $ | 881 | 17 | % | $ | 1,913 | $ | 1,945 | 2 | % | ||||||||||||
Expenses: |
||||||||||||||||||||||||
Natural gas |
735 | 877 | (19 | %) | 1,864 | 1,875 | (1 | %) | ||||||||||||||||
Operation and maintenance |
7 | 7 | | 15 | 16 | (7 | %) | |||||||||||||||||
Depreciation and amortization |
1 | 1 | | 1 | 1 | | ||||||||||||||||||
Taxes other than income taxes |
| | | 1 | 1 | | ||||||||||||||||||
Total |
743 | 885 | (19 | %) | 1,881 | 1,893 | (1 | %) | ||||||||||||||||
Operating Income(Loss) |
$ | 7 | $ | (4 | ) | (157 | %) | $ | 32 | $ | 52 | 63 | % | |||||||||||
Competitive Natural Gas Sales and Services Operating Data: |
||||||||||||||||||||||||
Throughput data in BCF |
||||||||||||||||||||||||
Wholesale third parties |
72 | 74 | 3 | % | 161 | 168 | 4 | % | ||||||||||||||||
Wholesale affiliates |
8 | 2 | (75 | %) | 19 | 5 | (74 | %) | ||||||||||||||||
Retail & Pipeline |
41 | 44 | 7 | % | 99 | 102 | 3 | % | ||||||||||||||||
Total Throughput |
121 | 120 | (1 | %) | 279 | 275 | (1 | %) | ||||||||||||||||
Average number of customers: |
||||||||||||||||||||||||
Wholesale |
132 | 248 | 88 | % | 138 | 235 | 70 | % | ||||||||||||||||
Retail & Pipeline |
6,604 | 6,829 | 3 | % | 6,639 | 6,797 | 2 | % | ||||||||||||||||
Total |
6,736 | 7,077 | 5 | % | 6,777 | 7,032 | 4 | % | ||||||||||||||||
Interstate Pipelines | ||||||||||||||||||||||||
Quarter Ended | Six Months Ended | |||||||||||||||||||||||
June 30, | % Diff | June 30, | % Diff | |||||||||||||||||||||
2006 | 2007 | Fav/(Unfav) | 2006 | 2007 | Fav/(Unfav) | |||||||||||||||||||
Results of Operations: |
||||||||||||||||||||||||
Revenues |
$ | 104 | $ | 121 | 16 | % | $ | 193 | $ | 211 | 9 | % | ||||||||||||
Expenses: |
||||||||||||||||||||||||
Natural gas |
14 | 24 | (71 | %) | 12 | 28 | (133 | %) | ||||||||||||||||
Operation and maintenance |
38 | 29 | 24 | % | 65 | 56 | 14 | % | ||||||||||||||||
Depreciation and amortization |
8 | 11 | (38 | %) | 18 | 21 | (17 | %) | ||||||||||||||||
Taxes other than income taxes |
4 | 5 | (25 | %) | 9 | 10 | (11 | %) | ||||||||||||||||
Total |
64 | 69 | (8 | %) | 104 | 115 | (11 | %) | ||||||||||||||||
Operating Income |
$ | 40 | $ | 52 | 30 | % | $ | 89 | $ | 96 | 8 | % | ||||||||||||
Pipelines Operating Data: |
||||||||||||||||||||||||
Throughput data in BCF |
||||||||||||||||||||||||
Transportation |
240 | 274 | 14 | % | 514 | 568 | 11 | % | ||||||||||||||||
Total Throughput |
240 | 274 | 14 | % | 514 | 568 | 11 | % | ||||||||||||||||
Field Services | ||||||||||||||||||||||||
Quarter Ended | Six Months Ended | |||||||||||||||||||||||
June 30, | % Diff | June 30, | % Diff | |||||||||||||||||||||
2006 | 2007 | Fav/(Unfav) | 2006 | 2007 | Fav/(Unfav) | |||||||||||||||||||
Results of Operations: |
||||||||||||||||||||||||
Revenues |
$ | 34 | $ | 42 | 24 | % | $ | 75 | $ | 81 | 8 | % | ||||||||||||
Expenses: |
||||||||||||||||||||||||
Natural gas |
(4 | ) | (4 | ) | | (3 | ) | (7 | ) | 133 | % | |||||||||||||
Operation and maintenance |
14 | 16 | (14 | %) | 27 | 32 | (19 | %) | ||||||||||||||||
Depreciation and amortization |
2 | 3 | (50 | %) | 5 | 6 | (20 | %) | ||||||||||||||||
Taxes other than income taxes |
1 | | 100 | % | 1 | 1 | | |||||||||||||||||
Total |
13 | 15 | (15 | %) | 30 | 32 | (7 | %) | ||||||||||||||||
Operating Income |
$ | 21 | $ | 27 | 29 | % | $ | 45 | $ | 49 | 9 | % | ||||||||||||
Field Services Operating Data: |
||||||||||||||||||||||||
Throughput data in BCF |
||||||||||||||||||||||||
Gathering |
94 | 100 | 6 | % | 182 | 193 | 6 | % | ||||||||||||||||
Total Throughput |
94 | 100 | 6 | % | 182 | 193 | 6 | % | ||||||||||||||||
Other Operations | ||||||||||||||||||||||||
Quarter Ended | Six Months Ended | |||||||||||||||||||||||
June 30, | % Diff | June 30, | % Diff | |||||||||||||||||||||
2006 | 2007 | Fav/(Unfav) | 2006 | 2007 | Fav/(Unfav) | |||||||||||||||||||
Results of Operations: |
||||||||||||||||||||||||
Revenues |
$ | 5 | $ | 3 | (40 | %) | $ | 9 | $ | 5 | (44 | %) | ||||||||||||
Expenses |
2 | 1 | 50 | % | 11 | 5 | 55 | % | ||||||||||||||||
Operating Income(Loss) |
$ | 3 | $ | 2 | (33 | %) | $ | (2 | ) | $ | | 100 | % | |||||||||||
Quarter Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2006 | 2007 | 2006 | 2007 | |||||||||||||
Capital Expenditures by Segment |
||||||||||||||||
Electric Transmission & Distribution |
$ | 111 | $ | 111 | $ | 190 | $ | 221 | ||||||||
Natural Gas Distribution |
45 | 44 | 85 | 77 | ||||||||||||
Competitive Natural Gas Sales and Services |
4 | 2 | 10 | 4 | ||||||||||||
Interstate Pipelines |
42 | 60 | 61 | 214 | ||||||||||||
Field Services |
12 | 13 | 23 | 40 | ||||||||||||
Other Operations |
4 | 6 | 14 | 17 | ||||||||||||
Total |
$ | 218 | $ | 236 | $ | 383 | $ | 573 | ||||||||
Quarter Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2006 | 2007 | 2006 | 2007 | |||||||||||||
Interest Expense Detail |
||||||||||||||||
Amortization of Deferred Financing Cost |
$ | 13 | $ | 12 | $ | 26 | $ | 31 | ||||||||
Capitalization of Interest Cost |
(2 | ) | (7 | ) | (3 | ) | (15 | ) | ||||||||
Transition Bond Interest Expense |
33 | 32 | 66 | 63 | ||||||||||||
Other Interest Expense |
107 | 114 | 210 | 226 | ||||||||||||
Total Interest Expense |
$ | 151 | $ | 151 | $ | 299 | $ | 305 | ||||||||
December 31, | June 30, | |||||||
2006 | 2007 | |||||||
ASSETS |
||||||||
Current Assets: |
||||||||
Cash and cash equivalents |
$ | 127 | $ | 112 | ||||
Other current assets |
2,868 | 2,285 | ||||||
Total current assets |
2,995 | 2,397 | ||||||
Property, Plant and Equipment, net |
9,204 | 9,549 | ||||||
Other Assets: |
||||||||
Goodwill |
1,709 | 1,709 | ||||||
Regulatory assets |
3,290 | 3,209 | ||||||
Other non-current assets |
435 | 411 | ||||||
Total other assets |
5,434 | 5,329 | ||||||
Total Assets |
$ | 17,633 | $ | 17,275 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
Current Liabilities: |
||||||||
Short-term borrowings |
$ | 187 | $ | 225 | ||||
Current portion of transition bond long-term debt |
147 | 152 | ||||||
Current portion of other long-term debt |
1,051 | 994 | ||||||
Other current liabilities |
2,836 | 2,090 | ||||||
Total current liabilities |
4,221 | 3,461 | ||||||
Other Liabilities: |
||||||||
Accumulated deferred income taxes, net and investment tax credit |
2,362 | 2,295 | ||||||
Regulatory liabilities |
792 | 822 | ||||||
Other non-current liabilities |
900 | 840 | ||||||
Total other liabilities |
4,054 | 3,957 | ||||||
Long-term Debt: |
||||||||
Transition bond |
2,260 | 2,183 | ||||||
Other |
5,542 | 5,988 | ||||||
Total long-term debt |
7,802 | 8,171 | ||||||
Shareholders Equity |
1,556 | 1,686 | ||||||
Total Liabilities and Shareholders Equity |
$ | 17,633 | $ | 17,275 | ||||
Six Months Ended June 30, | ||||||||
2006 | 2007 | |||||||
Cash Flows from Operating Activities: |
||||||||
Net income |
$ | 282 | $ | 200 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
321 | 338 | ||||||
Deferred income taxes and investment tax credit |
(109 | ) | 12 | |||||
Tax and interest reserves reductions related to ZENS and ACES |
(119 | ) | | |||||
Changes in net regulatory assets |
54 | 31 | ||||||
Changes in other assets and liabilities |
73 | (164 | ) | |||||
Other, net |
15 | 10 | ||||||
Net Cash Provided by Operating Activities |
517 | 427 | ||||||
Net Cash Used in Investing Activities |
(396 | ) | (709 | ) | ||||
Net Cash Provided by Financing Activities |
202 | 267 | ||||||
Net Increase (Decrease) in Cash and Cash Equivalents |
323 | (15 | ) | |||||
Cash and Cash Equivalents at Beginning of Period |
74 | 127 | ||||||
Cash and Cash Equivalents at End of Period |
$ | 397 | $ | 112 | ||||