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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): November 2, 2007
____________________
CENTERPOINT ENERGY, INC.
(Exact name of registrant as specified in its charter)
         
Texas
(State or other jurisdiction
of incorporation)
  1-31447
(Commission File Number)
  74-0694415
(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):
o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o   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 November 2, 2007, CenterPoint Energy, Inc. (“CenterPoint Energy”) reported third quarter 2007 earnings. For additional information regarding CenterPoint Energy’s third quarter 2007 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.
         
 
  (d)   Exhibits.
 
       
 
  99.1    Press Release issued November 2, 2007 regarding CenterPoint Energy, Inc.’s third quarter 2007 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: November 2, 2007  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 November 2, 2007 regarding CenterPoint Energy, Inc.’s third quarter 2007 earnings

 

exv99w1
 

Exhibit 99.1
     
(CENTERPOINT ENERGY LOGO)
  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
CENTERPOINT ENERGY REPORTS THIRD QUARTER 2007 EARNINGS
     Houston, TX — November 2, 2007 - CenterPoint Energy, Inc. (NYSE: CNP) today reported net income of $91 million, or $0.27 per diluted share, for the third quarter of 2007 compared to $83 million, or $0.26 per diluted share, for the same period of 2006.
     “I am pleased with our financial results this quarter,” said David M. McClanahan, president and chief executive officer of CenterPoint Energy. “Our performance is consistent with our overall expectations for this year. We experienced solid earnings growth from our investments in our interstate pipelines and field services segments, and our electric and natural gas utilities also continued to demonstrate significant progress.”
     For the nine months ended September 30, 2007, net income was $291 million, or $0.85 per diluted share, compared to $365 million, or $1.14 per diluted share, for the same period of 2006. Results for the nine months ended September 30, 2006, were favorably impacted by $126 million, or $0.40 per diluted share, due to the resolution of certain legacy tax issues but were negatively impacted by $21 million, or $0.07 per diluted share, from a settlement related to the company’s 2001 unbundled cost of service order (UCOS) issued by the Texas Public Utility Commission. Excluding the net effect of these items, net income for the nine months ended September 30, 2006, would have been $260 million, or $0.81 per diluted share, compared to $291 million, or $0.85 per diluted share, for the nine months ended September 30, 2007.
OPERATING INCOME BY SEGMENT
Electric Transmission & Distribution
     The electric transmission & distribution segment reported operating income of $196 million in the third quarter of 2007, consisting of $155 million from the regulated electric transmission & distribution utility operations (TDU), $11 million from the competition transition charge (CTC), and $30 million related to transition bonds. Operating income for the third quarter of 2006 was $219 million, consisting of $173 million from the TDU, $14 million from the CTC, and $32 million related to transition bonds.
     Operating income for the TDU for the third quarter of 2007 was negatively impacted by a rate settlement implemented in October of 2006, partially offset by customer growth of over 47,000 metered customers since September 2006.
     Operating income for the nine months ended September 30, 2007, was $457 million, consisting of $335 million from the TDU, $32 million from the CTC, and $90 million related to transition bonds. Operating income for the same period of 2006 was $480 million, consisting of $340 million from the TDU, $44 million from the CTC, and $96 million related to transition bonds.

-more-

 


 

     
(CENTERPOINT ENERGY LOGO)
  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
Natural Gas Distribution
     The natural gas distribution segment reported an operating loss of $8 million for the third quarter of 2007 compared to an operating loss of $11 million for the same period of 2006. Due to seasonal impacts, the third quarter for this segment is typically the weakest of the year. The third quarter of 2007 benefited from customer growth with the addition of nearly 48,000 customers since September 2006.
     Operating income for the nine months ended September 30, 2007, was $129 million compared to $90 million for the same period of 2006.
Competitive Natural Gas Sales and Services
     The competitive natural gas sales and services segment reported operating income of $4 million for the third quarter of 2007 compared to $12 million for the same period of 2006. The decrease in operating income was primarily due to a reduction in locational and seasonal natural gas price differentials. In addition, the third quarter of 2007 included a $2 million gain resulting from mark-to-market accounting for non-trading financial derivatives and a $5 million write-down of natural gas inventory to the lower of average cost or market, compared to a $21 million gain resulting from mark-to-market accounting and a $26 million inventory write-down for the same period of 2006.
     Operating income for the nine months ended September 30, 2007, was $56 million compared to $44 million for the same period of 2006.
Interstate Pipelines
     The interstate pipelines segment reported operating income of $70 million for the third quarter of 2007 compared to $48 million for the same period of 2006. The increase in operating income was driven primarily by the new Carthage to Perryville pipeline, which went into commercial service in May 2007, increased ancillary services, and settlements of certain state tax issues. The third quarter of 2006 included a gain from the sale of excess gas no longer required following improvements to a storage facility.
     Operating income for the nine months ended September 30, 2007, was $166 million compared to $137 million for the same period of 2006.

-more-

 


 

     
(CENTERPOINT ENERGY LOGO)
  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
Field Services
     The field services segment reported operating income of $26 million for the third quarter of 2007 compared to $21 million for the same period of 2006. Operating income increased from higher throughput and increased ancillary services, partially offset by lower commodity prices. In addition, this business recorded equity income of $2 million in each of the third quarters of 2007 and 2006 from its 50 percent interest in a jointly-owned gas processing plant. These amounts are included in Other — net under the Other Income (Expense) caption.
     Operating income for the nine months ended September 30, 2007, was $75 million compared to $66 million for the same period of 2006. Equity income from the jointly-owned gas processing plant was $6 million for the nine months ended September 30, 2007, compared to $7 million for the nine months ended September 30, 2006.
DIVIDEND DECLARATION
     On October 25, 2007, CenterPoint Energy’s board of directors declared a regular quarterly cash dividend of $0.17 per share of common stock payable on December 10, 2007, to shareholders of record as of the close of business on November 16, 2007.
OUTLOOK FOR 2007
     CenterPoint Energy expects diluted earnings per share for 2007 to be at the high end of its previously provided range of $1.02 to $1.12. This guidance takes into consideration various economic and operational assumptions related to the business segments in which the company operates. The company has made certain assumptions regarding the impact to earnings of various regulatory proceedings but cannot predict the ultimate outcome of any of those proceedings. In providing this guidance, the company has not projected the impact of any changes in accounting standards, any impact from acquisitions or divestitures, or the outcome of the TDU’s true-up appeal.
FILING OF FORM 10-Q FOR CENTERPOINT ENERGY, INC.
     Today, CenterPoint Energy, Inc. filed with the Securities and Exchange Commission (SEC) its Quarterly Report on Form 10-Q for the period ended September 30, 2007. A copy of that report is available on the company’s web site, www.CenterPointEnergy.com, under the “Investors” section. Other filings the company makes at the SEC and other documents relating to its corporate governance can also be found on that site.

-more-

 


 

     
(CENTERPOINT ENERGY LOGO)
  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
WEBCAST OF EARNINGS CONFERENCE CALL
     CenterPoint Energy’s management will host an earnings conference call on Friday, November 2, 2007, 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, 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 over $17 billion. With about 8,600 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 appeals from the true-up proceedings, the timing and impact of future regulatory, legislative and IRS decisions, effects of competition, weather variations, changes in CenterPoint Energy’s or its subsidiaries’ business plans, financial market conditions, the timing and extent of changes in commodity prices, particularly natural gas, the impact of unplanned facility outages, and other factors discussed in CenterPoint Energy’s and its subsidiaries’ Form 10-Ks for the period ended December 31, 2006, CenterPoint Energy’s and its subsidiaries’ Form 10-Qs for the periods ended March 31, 2007, and June 30, 2007, CenterPoint Energy’s Form 10-Q for the period ended September 30, 2007, and other filings with the Securities and Exchange Commission.
###

 


 

CenterPoint Energy, Inc. and Subsidiaries
Statements of Consolidated Income
(Millions of Dollars)
(Unaudited)
                                 
    Quarter Ended September 30,     Nine Months Ended September 30,  
    2006     2007     2006     2007  
 
                               
Revenues:
                               
Electric Transmission & Distribution
  $ 533     $ 528     $ 1,374     $ 1,399  
Natural Gas Distribution
    485       458       2,514       2,601  
Competitive Natural Gas Sales and Services
    830       770       2,743       2,715  
Interstate Pipelines
    106       137       299       348  
Field Services
    39       44       114       125  
Other Operations
    3       3       12       8  
Eliminations
    (61 )     (58 )     (201 )     (175 )
 
                       
Total
    1,935       1,882       6,855       7,021  
 
                       
 
                               
Expenses:
                               
Natural gas
    1,058       991       4,286       4,349  
Operation and maintenance
    347       349       1,018       1,031  
Depreciation and amortization
    159       170       452       475  
Taxes other than income taxes
    87       85       289       284  
 
                       
Total
    1,651       1,595       6,045       6,139  
 
                       
Operating Income
    284       287       810       882  
 
                       
 
                               
Other Income (Expense) :
                               
Gain (Loss) on Time Warner investment
    20       (58 )     17       (74 )
Gain (Loss) on indexed debt securities
    (12 )     56       (13 )     70  
Interest and other finance charges
    (120 )     (126 )     (353 )     (368 )
Interest on transition bonds
    (32 )     (30 )     (98 )     (93 )
Distribution from AOL Time Warner litigation settlement
          32             32  
Additional distribution to ZENS holders
          (27 )           (27 )
Other — net
    12       11       27       23  
 
                       
Total
    (132 )     (142 )     (420 )     (437 )
 
                       
 
                               
Income from Before Income Taxes
    152       145       390       445  
 
                               
Income Tax Expense
    (69 )     (54 )     (25 )     (154 )
 
                       
 
                               
Net Income
  $ 83     $ 91     $ 365     $ 291  
 
                       
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.

 


 

CenterPoint Energy, Inc. and Subsidiaries
Selected Data From Statements of Consolidated Income
(Millions of Dollars, Except Share and Per Share Amounts)
(Unaudited)
                                 
    Quarter Ended     Nine Months Ended  
    September 30,     September 30,  
    2006     2007     2006     2007  
 
                               
Basic Earnings Per Common Share:
                               
Net Income
  $ 0.27     $ 0.29     $ 1.17     $ 0.91  
 
                       
 
                               
Diluted Earnings Per Common Share:
                               
Net Income
  $ 0.26     $ 0.27     $ 1.14     $ 0.85  
 
                       
 
                               
Dividends Declared per Common Share
  $ 0.15     $ 0.17     $ 0.45     $ 0.51  
 
                               
Weighted Average Common Shares Outstanding (000):
                               
- Basic
    311,945       321,192       311,414       320,071  
- Diluted
    324,716       340,974       319,974       342,222  
 
                               
Operating Income (Loss) by Segment
                               
 
                               
Electric Transmission & Distribution:
                               
Electric Transmission and Distribution Operations
  $ 173     $ 155     $ 340     $ 335  
Competition Transition Charge
    14       11       44       32  
 
                       
Total Electric Transmission and Distribution Utility
    187       166       384       367  
Transition Bond Companies
    32       30       96       90  
 
                       
Total Electric Transmission & Distribution
    219       196       480       457  
Natural Gas Distribution
    (11 )     (8 )     90       129  
Competitive Natural Gas Sales and Services
    12       4       44       56  
Interstate Pipelines
    48       70       137       166  
Field Services
    21       26       66       75  
Other Operations
    (5 )     (1 )     (7 )     (1 )
 
                       
 
                               
Total
  $ 284     $ 287     $ 810     $ 882  
 
                       
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.

 


 

CenterPoint Energy, Inc. and Subsidiaries
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
                                                 
    Electric Transmission & Distribution  
    Quarter Ended             Nine Months Ended        
    September 30,     % Diff     September 30,     % Diff  
    2006     2007     Fav/(Unfav)     2006     2007     Fav/(Unfav)  
Results of Operations:
                                               
Revenues:
                                               
Electric transmission and distribution utility
  $ 453     $ 445       (2 %)   $ 1,170     $ 1,187       1 %
Transition bond companies
    80       83       4 %     204       212       4 %
 
                                       
Total
    533       528       (1 %)     1,374       1,399       2 %
 
                                       
 
                                               
Expenses:
                                               
Operation and maintenance
    155       163       (5 %)     436       467       (7 %)
Depreciation and amortization
    58       58             182       182        
Taxes other than income taxes
    53       58       (9 %)     168       171       (2 %)
Transition bond companies
    48       53       (10 %)     108       122       (13 %)
 
                                       
Total
    314       332       (6 %)     894       942       (5 %)
 
                                       
Operating Income
  $ 219     $ 196       (11 %)   $ 480     $ 457       (5 %)
 
                                       
 
                                               
Operating Income:
                                               
Electric transmission and distribution operations
  $ 173     $ 155       (10 %)   $ 340     $ 335       (1 %)
Competition transition charge
    14       11       (21 %)     44       32       (27 %)
Transition bond companies
    32       30       (6 %)     96       90       (6 %)
 
                                       
Total Segment Operating Income
  $ 219     $ 196       (11 %)   $ 480     $ 457       (5 %)
 
                                       
 
                                               
Electric Transmission & Distribution Operating Data:
                                               
Actual MWH Delivered
                                               
Residential
    8,522,786       8,381,258       (2 %)     19,317,160       19,060,031       (1 %)
Total
    22,829,685       22,725,500             59,238,907       58,560,692       (1 %)
 
                                               
Weather (average for service area):
                                               
Percentage of normal:
                                               
Cooling degree days
    100 %     102 %     2 %     105 %     100 %     (5 %)
Heating degree days
    0 %     0 %     0 %     60 %     114 %     54 %
 
                                               
Average number of metered customers:
                                               
Residential
    1,740,079       1,782,281       2 %     1,729,348       1,767,431       2 %
Total
    1,976,559       2,022,448       2 %     1,964,189       2,006,344       2 %
                                                 
    Natural Gas Distribution  
    Quarter Ended             Nine Months Ended        
    September 30,     % Diff     September 30,     % Diff  
    2006     2007     Fav/(Unfav)     2006     2007     Fav/(Unfav)  
Results of Operations:
                                               
Revenues
  $ 485     $ 458       (6 %)   $ 2,514     $ 2,601       3 %
 
                                       
Expenses:
                                               
Natural gas
    298       267       10 %     1,787       1,845       (3 %)
Operation and maintenance
    137       139       (1 %)     429       421       2 %
Depreciation and amortization
    38       38             113       114       (1 %)
Taxes other than income taxes
    23       22       4 %     95       92       3 %
 
                                       
Total
    496       466       6 %     2,424       2,472       (2 %)
 
                                       
Operating Income (Loss)
  $ (11 )   $ (8 )     27 %   $ 90     $ 129       43 %
 
                                       
 
                                               
Natural Gas Distribution Operating Data:
                                               
Throughput data in BCF
                                               
Residential
    14       12       (14 %)     98       118       20 %
Commercial and Industrial
    44       42       (5 %)     160       168       5 %
 
                                       
Total Throughput
    58       54       (7 %)     258       286       11 %
 
                                       
 
                                               
Weather (average for service area)
                                               
Percentage of normal:
                                               
Heating degree days
    104 %     75 %     (29 %)     81 %     98 %     17 %
 
                                               
Average number of customers:
                                               
Residential
    2,862,020       2,910,041       2 %     2,875,345       2,927,122       2 %
Commercial and Industrial
    240,083       246,021       2 %     243,011       246,382       1 %
 
                                       
Total
    3,102,103       3,156,062       2 %     3,118,356       3,173,504       2 %
 
                                       
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.

 


 

CenterPoint Energy, Inc. and Subsidiaries
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
                                                 
    Competitive Natural Gas Sales and Services  
    Quarter Ended             Nine Months Ended        
    September 30,     % Diff     September 30,     % Diff  
    2006     2007     Fav/(Unfav)     2006     2007     Fav/(Unfav)  
Results of Operations:
                                               
Revenues
  $ 830     $ 770       (7 %)   $ 2,743     $ 2,715       (1 %)
 
                                       
Expenses:
                                               
Natural gas
    809       756       7 %     2,673       2,631       2 %
Operation and maintenance
    8       7       13 %     23       23        
Depreciation and amortization
          3             1       4       (300 %)
Taxes other than income taxes
    1                   2       1       50 %
 
                                       
Total
    818       766       6 %     2,699       2,659       1 %
 
                                       
Operating Income
  $ 12     $ 4       (67 %)   $ 44     $ 56       27 %
 
                                       
 
                                               
Competitive Natural Gas Sales and Services Operating Data:
                                               
Throughput data in BCF
                                               
Wholesale — third parties
    90       74       (18 %)     251       241       (4 %)
Wholesale — affiliates
    8       2       (75 %)     27       7       (74 %)
Retail & Pipeline
    40       43       8 %     138       145       5 %
 
                                       
Total Throughput
    138       119       (14 %)     416       393       (6 %)
 
                                       
 
                                               
Average number of customers:
                                               
Wholesale
    140       233       66 %     140       235       68 %
Retail & Pipeline
    6,351       6,743       6 %     6,554       6,779       3 %
 
                                       
Total
    6,491       6,976       7 %     6,694       7,014       5 %
 
                                       
                                                 
    Interstate Pipelines  
    Quarter Ended             Nine Months Ended        
    September 30,     % Diff     September 30,     % Diff  
    2006     2007     Fav/(Unfav)     2006     2007     Fav/(Unfav)  
Results of Operations:
                                               
Revenues
  $ 106     $ 137       29 %   $ 299     $ 348       16 %
 
                                       
Expenses:
                                               
Natural gas
    10       27       (170 %)     22       55       (150 %)
Operation and maintenance
    33       29       12 %     98       85       13 %
Depreciation and amortization
    10       11       (10 %)     28       32       (14 %)
Taxes other than income taxes
    5                   14       10       29 %
 
                                       
Total
    58       67       (16 %)     162       182       (12 %)
 
                                       
Operating Income
  $ 48     $ 70       46 %   $ 137     $ 166       21 %
 
                                       
 
                                               
Pipelines Operating Data:
                                               
Throughput data in BCF
                                               
Transportation
    204       312       53 %     718       880       23 %
 
                                       
Total Throughput
    204       312       53 %     718       880       23 %
 
                                       
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.

 


 

CenterPoint Energy, Inc. and Subsidiaries
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
                                                 
    Field Services  
    Quarter Ended             Nine Months Ended        
    September 30,     % Diff     September 30,     % Diff  
    2006     2007     Fav/(Unfav)     2006     2007     Fav/(Unfav)  
Results of Operations:
                                               
Revenues
  $ 39     $ 44       13 %   $ 114     $ 125       10 %
 
                                       
Expenses:
                                               
Natural gas
    (1 )     (2 )     (100 %)     (4 )     (9 )     125 %
Operation and maintenance
    15       17       (13 %)     42       49       (17 %)
Depreciation and amortization
    3       2       33 %     8       8        
Taxes other than income taxes
    1       1             2       2        
 
                                       
Total
    18       18             48       50       (4 %)
 
                                       
Operating Income
  $ 21     $ 26       24 %   $ 66     $ 75       14 %
 
                                       
Field Services Operating Data:
                                               
Throughput data in BCF
                                               
Gathering
    97       104       7 %     279       297       6 %
 
                                       
Total Throughput
    97       104       7 %     279       297       6 %
 
                                       
                                                 
    Other Operations  
    Quarter Ended             Nine Months Ended        
    September 30,     % Diff     September 30,     % Diff  
    2006     2007     Fav/(Unfav)     2006     2007     Fav/(Unfav)  
Results of Operations:
                                               
Revenues
  $ 3     $ 3           $ 12     $ 8       (33 %)
Expenses
    8       4       50 %     19       9       53 %
 
                                       
Operating Loss
  $ (5 )   $ (1 )     80 %   $ (7 )   $ (1 )     86 %
 
                                       
Capital Expenditures by Segment
(Millions of Dollars)
(Unaudited)
                                 
    Quarter Ended     Nine Months Ended  
    September 30,     September 30,  
    2006     2007     2006     2007  
Capital Expenditures by Segment
                               
Electric Transmission & Distribution
  $ 88     $ 83     $ 278     $ 304  
Natural Gas Distribution
    48       58       133       135  
Competitive Natural Gas Sales and Services
    4       1       14       5  
Interstate Pipelines
    117       39       178       253  
Field Services
    18       15       41       55  
Other Operations
    4       5       18       22  
 
                       
Total
  $ 279     $ 201     $ 662     $ 774  
 
                       
Interest Expense Detail
(Millions of Dollars)
(Unaudited)
                                 
    Quarter Ended     Nine Months Ended  
    September 30,     September 30,  
    2006     2007     2006     2007  
Interest Expense Detail
                               
Amortization of Deferred Financing Cost
  $ 14     $ 11     $ 40     $ 42  
Capitalization of Interest Cost
    (3 )     (3 )     (6 )     (18 )
Transition Bond Interest Expense
    32       30       98       93  
Other Interest Expense
    109       118       319       344  
 
                       
Total Interest Expense
  $ 152     $ 156     $ 451     $ 461  
 
                       
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.

 


 

CenterPoint Energy, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Millions of Dollars)
(Unaudited)
                 
    December 31,     September 30,  
    2006     2007  
ASSETS
               
Current Assets:
               
Cash and cash equivalents
  $ 127     $ 54  
Other current assets
    2,868       2,296  
 
           
Total current assets
    2,995       2,350  
 
           
 
               
Property, Plant and Equipment, net
    9,204       9,629  
 
           
 
               
Other Assets:
               
Goodwill
    1,705       1,705  
Regulatory assets
    3,290       3,139  
Other non-current assets
    439       480  
 
           
Total other assets
    5,434       5,324  
 
           
Total Assets
  $ 17,633     $ 17,303  
 
           
 
               
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
 
               
Current Liabilities:
               
Short-term borrowings
  $ 187     $ 150  
Current portion of transition bond long-term debt
    147       159  
Current portion of other long-term debt
    1,051       1,195  
Other current liabilities
    2,836       1,881  
 
           
Total current liabilities
    4,221       3,385  
 
           
 
               
Other Liabilities:
               
Accumulated deferred income taxes, net and investment tax credit
    2,362       2,295  
Regulatory liabilities
    792       825  
Other non-current liabilities
    900       871  
 
           
Total other liabilities
    4,054       3,991  
 
           
 
               
Long-term Debt:
               
Transition bond
    2,260       2,101  
Other
    5,542       6,090  
 
           
Total long-term debt
    7,802       8,191  
 
           
 
               
Shareholders’ Equity
    1,556       1,736  
 
           
Total Liabilities and Shareholders’ Equity
  $ 17,633     $ 17,303  
 
           
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.

 


 

CenterPoint Energy, Inc. and Subsidiaries
Condensed Statements of Consolidated Cash Flows
(Millions of Dollars)
(Unaudited)
                 
    Nine Months Ended  
    September 30,  
    2006     2007  
Cash Flows from Operating Activities:
               
Net income
  $ 365     $ 291  
Adjustments to reconcile net income to net cash provided by operating activities:
               
Depreciation and amortization
    489       519  
Deferred income taxes and investment tax credit
    (87 )     23  
Tax and interest reserves reductions related to ZENS and ACES
    (119 )      
Changes in net regulatory assets
    65       57  
Changes in other assets and liabilities
    8       (410 )
Other, net
    7       12  
 
           
Net Cash Provided by Operating Activities
    728       492  
 
               
Net Cash Used in Investing Activities
    (626 )     (933 )
 
               
Net Cash Provided by Financing Activities
    109       368  
 
           
 
               
Net Increase (Decrease) in Cash and Cash Equivalents
    211       (73 )
 
               
Cash and Cash Equivalents at Beginning of Period
    74       127  
 
               
 
           
Cash and Cash Equivalents at End of Period
  $ 285     $ 54  
 
           
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.