Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 4, 2011
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):
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))
TABLE OF CONTENTS
| ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION | ||||||||
| ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS | ||||||||
| SIGNATURE | ||||||||
| EXHIBIT INDEX | ||||||||
| EX-99.1 | ||||||||
Table of Contents
| ITEM 2.02. | RESULTS OF OPERATIONS AND FINANCIAL CONDITION. |
On August 4, 2011, CenterPoint Energy, Inc. (“CenterPoint Energy”) reported second quarter
2011 earnings. For additional information regarding CenterPoint Energy’s second quarter 2011
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 August 4, 2011 regarding CenterPoint Energy, Inc.’s second quarter 2011 earnings. |
Table of Contents
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 4, 2011 | By: | /s/ Walter L. Fitzgerald | ||
| Walter L. Fitzgerald | ||||
| Senior Vice President and Chief Accounting Officer |
||||
Table of Contents
EXHIBIT INDEX
| EXHIBIT | ||
| NUMBER | EXHIBIT DESCRIPTION | |
99.1
|
Press Release issued August 4, 2011 regarding CenterPoint Energy, Inc.’s second quarter 2011 earnings. |
Exhibit 99.1
|
For more information contact Media: Leticia Lowe Phone 713.207.7702 Investors: Marianne Paulsen Phone 713.207.6500 |
For Immediate Release
CENTERPOINT ENERGY REPORTS SECOND QUARTER 2011 EARNINGS
Houston, TX — August 4, 2011 - CenterPoint Energy, Inc. (NYSE: CNP) today reported net income
of $119 million, or $0.28 per diluted share, for the second quarter of 2011 compared to $81
million, or $0.20 per diluted share, for the same period of 2010. Operating income for the second
quarter of 2011 was $303 million compared to $263 million for the same period of 2010.
“Our company performed well this quarter,” said David M. McClanahan, president and chief executive
officer of CenterPoint Energy. “Our regulated electric and natural gas utilities reported solid
results and our field services unit continues to realize growth from the investments we have made
primarily in the Haynesville shale. We continue to benefit from our balanced portfolio of electric
and natural gas assets, and I remain optimistic about future investment opportunities.”
For the six months ended June 30, 2011, net income was $267 million, or $0.62 per diluted share,
compared to $195 million, or $0.49 per diluted share, for the same period of 2010. Operating
income for the six months ended June 30, 2011, was $667 million compared to $620 million for the
same period of 2010.
Electric Transmission & Distribution
The electric transmission & distribution segment reported operating income of $185 million for the
second quarter of 2011, consisting of $153 million from the regulated electric transmission &
distribution utility operations (TDU) and $32 million related to securitization bonds. Operating
income for the second quarter of 2010 was $158 million, consisting of $122 million from the TDU and
$36 million related to securitization bonds. Operating income for the TDU benefited from increased
usage primarily due to warmer weather, growth of over 32,000 metered customers since June 2010,
higher transmission revenues and lower depreciation and amortization expense, partially offset by
higher operation and maintenance expenses.
Operating income for the six months ended June 30, 2011, was $286 million, consisting of $221
million from the TDU and $65 million related to securitization bonds. Operating income for the
same period of 2010 was $265 million, consisting of $193 million from the TDU and $72 million
related to transition bonds.
Natural Gas Distribution
The natural gas distribution segment reported operating income of $13 million for the second
quarter of 2011 compared to $10 million for the same period of 2010. Operating income benefited
from increased usage in part due to weather, rate changes and growth of over 27,000 metered
customers since June 2010, partially offset by increases in operation and maintenance expenses.
-more-
Page 1 of 5
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For more information contact Media: Leticia Lowe Phone 713.207.7702 Investors: Marianne Paulsen Phone 713.207.6500 |
For Immediate Release
Operating income for the six months ended June 30, 2011, was $155 million compared to $149 million
for the same period of 2010.
Interstate Pipelines
The interstate pipelines segment reported operating income of $60 million for the second quarter of
2011 compared to $67 million for the same period of 2010. The decline was due to lower revenues
primarily related to an expiring backhaul contract and restructured contracts with our natural gas
distribution affiliates, lower off-system sales, and higher operation and maintenance expenses,
partially offset by increased ancillary services.
In addition to operating income, this segment recorded equity income of $5 million for the second
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 six months ended June 30, 2011, was $136 million compared to $139 million
for the same period of 2010. In addition to operating income, this segment recorded equity income
of $9 million for the six months ended June 30, 2011, primarily from its 50 percent interest in
SESH compared to $7 million for the same period of 2010.
Field Services
The field services segment reported operating income of $39 million for the second quarter of
2011 compared to $31 million for the same period of 2010. Revenue growth from higher gathering
volumes, primarily associated with projects in the Haynesville shale, was partially offset by lower
prices received from sales of retained gas, as well as increased operation and maintenance and
depreciation expenses primarily related to facility expansions.
In addition to operating income, this business had equity income of $3 million for each of the
second quarters of 2011 and 2010 from its 50 percent interest in a gathering and processing joint
venture (Waskom).
Operating income for the six months ended June 30, 2011, was $75 million compared to $54 million
for the same period of 2010. Equity income from the jointly-owned gas processing plant was $5
million for each of the six months ended June 30, 2011 and 2010.
Competitive Natural Gas Sales and Services
The competitive natural gas sales and services segment reported operating income of $3 million for
the second quarter of 2011 compared to an operating loss of $6 million for the same period of 2010.
-more-
Page 2 of 5
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For more information contact Media: Leticia Lowe Phone 713.207.7702 Investors: Marianne Paulsen Phone 713.207.6500 |
For Immediate Release
Operating income for the second quarter of 2011 included gains of $4 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 $8 million for the same period of 2010.
Operating income for the six months ended June 30, 2011, was $13 million compared to $9 million for
the same period of 2010. Operating income for the six months ended June 30, 2011, included gains
of $2 million resulting from mark-to-market accounting compared to charges of $5 million for the
same period of 2010.
Dividend Declaration
On July 19, 2011, CenterPoint Energy’s board of directors declared a regular quarterly cash
dividend of $0.1975 per share of common stock payable on September 9, 2011, to shareholders of
record as of the close of business on August 16, 2011.
Outlook Reaffirmed for 2011
CenterPoint Energy reaffirmed its 2011 earnings guidance of $1.04 to $1.14 per diluted share.
This guidance takes into consideration performance to date and various economic and operational
assumptions related to the business segments in which the company operates. The company has made
certain assumptions regarding financing activities and the impact to earnings of various regulatory
proceedings. In providing this guidance, the company has not included the impact of any changes in
accounting standards, any impact from significant acquisitions or divestitures, any impact to
income from the change in value of Time Warner stocks and the related ZENS securities, or the
timing effects of mark-to-market or inventory accounting in the company’s competitive natural gas
sales and services business. It also does not reflect the recording of the Texas Supreme Court’s
decision in the TDU’s true-up appeal. For the impact of these factors on the company’s earnings
for the three and six months ended June 30, 2011, see the attached reconciliation.
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 June 30, 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 Thursday, August 4, 2011,
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
-more-
Page 3 of 5
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For more information contact Media: Leticia Lowe Phone 713.207.7702 Investors: Marianne Paulsen Phone 713.207.6500 |
For Immediate Release
replay of the call can be accessed approximately two hours after the completion of the call and
will be archived on the website for at least one year.
CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company
that includes electric transmission & distribution, natural gas distribution, 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 $19 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 2011 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) the resolution of the
true-up proceedings, including, future actions by the Public Utility Commission of Texas in
response to the decisions by the Texas Supreme Court and the Texas Third Court of Appeals, and any
further appeals thereof; (2) state and federal legislative and regulatory actions or developments
relating to the environment, including those related to global climate change; (3) other 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
safety, health care reform, financial reform and tax legislation; (4) timely and appropriate rate
actions and increases, allowing recovery of costs and a reasonable return on investment; (5) the
timing and outcome of any audits, disputes or other proceedings related to taxes; (6) problems with
construction, implementation of necessary technology or other issues with respect to major capital
projects that result in delays or in cost overruns that cannot be recouped in rates; (7)
industrial, commercial and residential growth in CenterPoint Energy’s service territories and
changes in market demand, including the effects of energy efficiency measures, and demographic
patterns; (8) the timing and extent of changes in commodity prices, particularly natural gas and
natural gas liquids, and the effects of geographic and seasonal commodity price differentials; (9)
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; (10) weather variations and other natural phenomena; (11) the impact of unplanned
facility outages; (12) timely and appropriate regulatory actions allowing securitization or other
recovery of costs associated with any future hurricanes or natural disasters; (13) changes in
interest rates or rates of inflation; (14) commercial bank and financial market conditions,
CenterPoint Energy’s access to capital, the cost of such capital, and the results of our financing
and refinancing efforts, including availability of funds in the debt capital markets; (15) actions
by rating agencies; (16) effectiveness of CenterPoint Energy’s risk management activities; (17)
inability of various counterparties to meet their obligations; (18) non-payment for services due to
financial distress of CenterPoint Energy’s customers; (19) 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; (20) 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; (21) the outcome of litigation brought by or against CenterPoint Energy; (22)
CenterPoint Energy’s ability to control costs; (23) the investment performance of pension and
postretirement benefit plans; (24) potential business strategies, including restructurings,
acquisitions or dispositions of assets or businesses; (25) acquisition and merger activities; and
(26) other factors discussed in CenterPoint Energy’s Annual Report on Form 10-K for the fiscal year
ended December 31, 2010, and Forms 10-Q for the quarters ended March 31, 2011, and June 30, 2011,
and other reports CenterPoint Energy or its subsidiaries may file from time to time with the
Securities and Exchange Commission.
-more-
Page 4 of 5
|
|
For more information contact Media: Leticia Lowe Phone 713.207.7702 Investors: Marianne Paulsen Phone 713.207.6500 |
For Immediate Release
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 | Six Months Ended | |||||||||||||||
| June 30, 2011 | June 30, 2011 | |||||||||||||||
| Net Income | EPS | Net Income | EPS | |||||||||||||
| (in millions) | (in millions) | |||||||||||||||
As reported |
$ | 119 | $ | 0.28 | $ | 267 | $ | 0.62 | ||||||||
Timing effects impacting CES(1): |
||||||||||||||||
Mark-to-market (gains) losses — natural gas derivative contracts |
(3 | ) | (0.01 | ) | (1 | ) | (0.00 | ) | ||||||||
Natural gas inventory write-downs |
— | — | — | — | ||||||||||||
ZENS-related mark-to-market (gains) losses: |
||||||||||||||||
Marketable securities(2) |
(12 | ) | (0.03 | ) | (33 | ) | (0.07 | ) | ||||||||
Indexed debt securities |
— | — | 15 | 0.03 | ||||||||||||
Per the basis used in providing 2011 annual earnings guidance |
$ | 104 | $ | 0.24 | $ | 248 | $ | 0.58 | ||||||||
| (1) | Competitive natural gas sales and services | |
| (2) | Time Warner Inc., Time Warner Cable Inc. and AOL Inc. |
###
Page 5 of 5
CenterPoint Energy, Inc. and Subsidiaries
Statements of Consolidated Income
(Millions of Dollars)
(Unaudited)
Statements of Consolidated Income
(Millions of Dollars)
(Unaudited)
| Quarter Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2010 | 2011 | 2010 | 2011 | |||||||||||||
Revenues: |
||||||||||||||||
Electric Transmission & Distribution |
$ | 562 | $ | 606 | $ | 1,044 | $ | 1,095 | ||||||||
Natural Gas Distribution |
465 | 452 | 2,002 | 1,664 | ||||||||||||
Competitive Natural Gas Sales and Services |
560 | 586 | 1,412 | 1,292 | ||||||||||||
Interstate Pipelines |
148 | 142 | 286 | 289 | ||||||||||||
Field Services |
80 | 98 | 148 | 188 | ||||||||||||
Other Operations |
3 | 3 | 6 | 6 | ||||||||||||
Eliminations |
(62 | ) | (50 | ) | (119 | ) | (110 | ) | ||||||||
Total |
1,756 | 1,837 | 4,779 | 4,424 | ||||||||||||
Expenses: |
||||||||||||||||
Natural gas |
778 | 778 | 2,713 | 2,254 | ||||||||||||
Operation and maintenance |
410 | 446 | 824 | 885 | ||||||||||||
Depreciation and amortization |
217 | 223 | 417 | 424 | ||||||||||||
Taxes other than income taxes |
88 | 87 | 205 | 194 | ||||||||||||
Total |
1,493 | 1,534 | 4,159 | 3,757 | ||||||||||||
Operating Income |
263 | 303 | 620 | 667 | ||||||||||||
Other Income (Expense) : |
||||||||||||||||
Gain (loss) on marketable securities |
(22 | ) | 18 | 16 | 50 | |||||||||||
Gain (loss) on indexed debt securities |
32 | — | 5 | (23 | ) | |||||||||||
Interest and other finance charges |
(121 | ) | (111 | ) | (243 | ) | (227 | ) | ||||||||
Interest on transition and system restoration bonds |
(36 | ) | (32 | ) | (72 | ) | (65 | ) | ||||||||
Equity in earnings of unconsolidated affiliates |
7 | 8 | 12 | 14 | ||||||||||||
Other — net |
3 | 4 | 4 | 9 | ||||||||||||
Total |
(137 | ) | (113 | ) | (278 | ) | (242 | ) | ||||||||
Income Before Income Taxes |
126 | 190 | 342 | 425 | ||||||||||||
Income Tax Expense |
45 | 71 | 147 | 158 | ||||||||||||
Net Income |
$ | 81 | $ | 119 | $ | 195 | $ | 267 | ||||||||
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.
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)
Selected Data From Statements of Consolidated Income
(Millions of Dollars, Except Share and Per Share Amounts)
(Unaudited)
| Quarter Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2010 | 2011 | 2010 | 2011 | |||||||||||||
Basic Earnings Per Common Share |
$ | 0.20 | $ | 0.28 | $ | 0.49 | $ | 0.63 | ||||||||
Diluted Earnings Per Common Share |
$ | 0.20 | $ | 0.28 | $ | 0.49 | $ | 0.62 | ||||||||
Dividends Declared per Common Share |
$ | 0.1950 | $ | 0.1975 | $ | 0.390 | $ | 0.395 | ||||||||
Weighted Average Common Shares Outstanding (000): |
||||||||||||||||
- Basic |
399,515 | 425,638 | 396,203 | 425,330 | ||||||||||||
- Diluted |
401,993 | 428,284 | 398,689 | 427,954 | ||||||||||||
Operating Income (Loss) by Segment |
||||||||||||||||
Electric Transmission & Distribution: |
||||||||||||||||
Electric Transmission and Distribution Operations |
$ | 122 | $ | 153 | $ | 193 | $ | 221 | ||||||||
Transition and System Restoration Bond Companies |
36 | 32 | 72 | 65 | ||||||||||||
Total Electric Transmission & Distribution |
158 | 185 | 265 | 286 | ||||||||||||
Natural Gas Distribution |
10 | 13 | 149 | 155 | ||||||||||||
Competitive Natural Gas Sales and Services |
(6 | ) | 3 | 9 | 13 | |||||||||||
Interstate Pipelines |
67 | 60 | 139 | 136 | ||||||||||||
Field Services |
31 | 39 | 54 | 75 | ||||||||||||
Other Operations |
3 | 3 | 4 | 2 | ||||||||||||
Total |
$ | 263 | $ | 303 | $ | 620 | $ | 667 | ||||||||
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.
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)
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
| Electric Transmission & Distribution | ||||||||||||||||||||||||
| Quarter Ended | Six Months Ended | |||||||||||||||||||||||
| June 30, | % Diff | June 30, | % Diff | |||||||||||||||||||||
| 2010 | 2011 | Fav/(Unfav) | 2010 | 2011 | Fav/(Unfav) | |||||||||||||||||||
Results of Operations: |
||||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Electric transmission and distribution utility |
$ | 449 | $ | 489 | 9 | % | $ | 835 | $ | 889 | 6 | % | ||||||||||||
Transition and system restoration bond companies |
113 | 117 | 4 | % | 209 | 206 | (1 | %) | ||||||||||||||||
Total |
562 | 606 | 8 | % | 1,044 | 1,095 | 5 | % | ||||||||||||||||
Expenses: |
||||||||||||||||||||||||
Operation and maintenance |
204 | 219 | (7 | %) | 394 | 427 | (8 | %) | ||||||||||||||||
Depreciation and amortization |
71 | 66 | 7 | % | 144 | 137 | 5 | % | ||||||||||||||||
Taxes other than income taxes |
52 | 51 | 2 | % | 104 | 104 | — | |||||||||||||||||
Transition and system restoration bond companies |
77 | 85 | (10 | %) | 137 | 141 | (3 | %) | ||||||||||||||||
Total |
404 | 421 | (4 | %) | 779 | 809 | (4 | %) | ||||||||||||||||
Operating Income |
$ | 158 | $ | 185 | 17 | % | $ | 265 | $ | 286 | 8 | % | ||||||||||||
Operating Income: |
||||||||||||||||||||||||
Electric transmission and distribution operations |
$ | 122 | $ | 153 | 25 | % | $ | 193 | $ | 221 | 15 | % | ||||||||||||
Transition and system restoration bond companies |
36 | 32 | (11 | %) | 72 | 65 | (10 | %) | ||||||||||||||||
Total Segment Operating Income |
$ | 158 | $ | 185 | 17 | % | $ | 265 | $ | 286 | 8 | % | ||||||||||||
Electric Transmission & Distribution |
||||||||||||||||||||||||
Operating Data: |
||||||||||||||||||||||||
Actual MWH Delivered |
||||||||||||||||||||||||
Residential |
7,064,276 | 7,784,631 | 10 | % | 12,237,273 | 12,655,884 | 3 | % | ||||||||||||||||
Total |
20,173,782 | 21,077,489 | 4 | % | 36,610,092 | 37,845,457 | 3 | % | ||||||||||||||||
Weather (average for service area): |
||||||||||||||||||||||||
Percentage of 10-year average: |
||||||||||||||||||||||||
Cooling degree days |
109 | % | 123 | % | 14 | % | 99 | % | 126 | % | 27 | % | ||||||||||||
Heating degree days |
78 | % | 33 | % | (45 | %) | 160 | % | 106 | % | (54 | %) | ||||||||||||
Number of metered customers — end of period: |
||||||||||||||||||||||||
Residential |
1,866,699 | 1,895,852 | 2 | % | 1,866,699 | 1,895,852 | 2 | % | ||||||||||||||||
Total |
2,113,695 | 2,145,979 | 2 | % | 2,113,695 | 2,145,979 | 2 | % | ||||||||||||||||
| Natural Gas Distribution | ||||||||||||||||||||||||
| Quarter Ended | Six Months Ended | |||||||||||||||||||||||
| June 30, | % Diff | June 30, | % Diff | |||||||||||||||||||||
| 2010 | 2011 | Fav/(Unfav) | 2010 | 2011 | Fav/(Unfav) | |||||||||||||||||||
Results of Operations: |
||||||||||||||||||||||||
Revenues |
$ | 465 | $ | 452 | (3 | %) | $ | 2,002 | $ | 1,664 | (17 | %) | ||||||||||||
Expenses: |
||||||||||||||||||||||||
Natural gas |
244 | 218 | 11 | % | 1,383 | 1,036 | 25 | % | ||||||||||||||||
Operation and maintenance |
144 | 157 | (9 | %) | 311 | 325 | (5 | %) | ||||||||||||||||
Depreciation and amortization |
44 | 41 | 7 | % | 84 | 83 | 1 | % | ||||||||||||||||
Taxes other than income taxes |
23 | 23 | — | 75 | 65 | 13 | % | |||||||||||||||||
Total |
455 | 439 | 4 | % | 1,853 | 1,509 | 19 | % | ||||||||||||||||
Operating Income |
$ | 10 | $ | 13 | 30 | % | $ | 149 | $ | 155 | 4 | % | ||||||||||||
Natural Gas Distribution Operating Data: |
||||||||||||||||||||||||
Throughput data in BCF |
||||||||||||||||||||||||
Residential |
16 | 20 | 25 | % | 112 | 110 | (2 | %) | ||||||||||||||||
Commercial and Industrial |
49 | 51 | 4 | % | 136 | 139 | 2 | % | ||||||||||||||||
Total Throughput |
65 | 71 | 9 | % | 248 | 249 | — | |||||||||||||||||
Weather (average for service area) |
||||||||||||||||||||||||
Percentage of 10-year average: |
||||||||||||||||||||||||
Heating degree days |
66 | % | 101 | % | 35 | % | 111 | % | 107 | % | (4 | %) | ||||||||||||
Number of customers — end of period: |
||||||||||||||||||||||||
Residential |
2,973,013 | 3,000,665 | 1 | % | 2,973,013 | 3,000,665 | 1 | % | ||||||||||||||||
Commercial and Industrial |
244,089 | 243,629 | — | 244,089 | 243,629 | — | ||||||||||||||||||
Total |
3,217,102 | 3,244,294 | 1 | % | 3,217,102 | 3,244,294 | 1 | % | ||||||||||||||||
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.
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)
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
| Competitive Natural Gas Sales and Services | ||||||||||||||||||||||||
| Quarter Ended | Six Months Ended | |||||||||||||||||||||||
| June 30, | % Diff | June 30, | % Diff | |||||||||||||||||||||
| 2010 | 2011 | Fav/(Unfav) | 2010 | 2011 | Fav/(Unfav) | |||||||||||||||||||
Results of Operations: |
||||||||||||||||||||||||
Revenues |
$ | 560 | $ | 586 | 5 | % | $ | 1,412 | $ | 1,292 | (8 | %) | ||||||||||||
Expenses: |
||||||||||||||||||||||||
Natural gas |
554 | 571 | (3 | %) | 1,380 | 1,256 | 9 | % | ||||||||||||||||
Operation and maintenance |
10 | 11 | (10 | %) | 19 | 21 | (11 | %) | ||||||||||||||||
Depreciation and amortization |
1 | 1 | — | 2 | 2 | — | ||||||||||||||||||
Taxes other than income taxes |
1 | — | 100 | % | 2 | — | 100 | % | ||||||||||||||||
Total |
566 | 583 | (3 | %) | 1,403 | 1,279 | 9 | % | ||||||||||||||||
Operating Income (Loss) |
$ | (6 | ) | $ | 3 | 150 | % | $ | 9 | $ | 13 | 44 | % | |||||||||||
Competitive Natural Gas Sales and Services |
||||||||||||||||||||||||
Operating Data: |
||||||||||||||||||||||||
Throughput data in BCF |
128 | 126 | (2 | %) | 269 | 281 | 4 | % | ||||||||||||||||
Number of customers — end of period |
11,694 | 12,152 | 4 | % | 11,694 | 12,152 | 4 | % | ||||||||||||||||
| Interstate Pipelines | ||||||||||||||||||||||||
| Quarter Ended | Six Months Ended | |||||||||||||||||||||||
| June 30, | % Diff | June 30, | % Diff | |||||||||||||||||||||
| 2010 | 2011 | Fav/(Unfav) | 2010 | 2011 | Fav/(Unfav) | |||||||||||||||||||
Results of Operations: |
||||||||||||||||||||||||
Revenues |
$ | 148 | $ | 142 | (4 | %) | $ | 286 | $ | 289 | 1 | % | ||||||||||||
Expenses: |
||||||||||||||||||||||||
Natural gas |
24 | 21 | 13 | % | 34 | 39 | (15 | %) | ||||||||||||||||
Operation and maintenance |
35 | 39 | (11 | %) | 70 | 70 | — | |||||||||||||||||
Depreciation and amortization |
13 | 14 | (8 | %) | 26 | 27 | (4 | %) | ||||||||||||||||
Taxes other than income taxes |
9 | 8 | 11 | % | 17 | 17 | — | |||||||||||||||||
Total |
81 | 82 | (1 | %) | 147 | 153 | (4 | %) | ||||||||||||||||
Operating Income |
$ | 67 | $ | 60 | (10 | %) | $ | 139 | $ | 136 | (2 | %) | ||||||||||||
Equity in earnings of unconsolidated affiliates |
$ | 4 | $ | 5 | 25 | % | $ | 7 | $ | 9 | 29 | % | ||||||||||||
Pipelines Operating Data: |
||||||||||||||||||||||||
Throughput data in BCF |
||||||||||||||||||||||||
Transportation |
400 | 396 | (1 | %) | 838 | 852 | 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.
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)
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
| Field Services | ||||||||||||||||||||||||
| Quarter Ended | Six Months Ended | |||||||||||||||||||||||
| June 30, | % Diff | June 30, | % Diff | |||||||||||||||||||||
| 2010 | 2011 | Fav/(Unfav) | 2010 | 2011 | Fav/(Unfav) | |||||||||||||||||||
Results of Operations: |
||||||||||||||||||||||||
Revenues |
$ | 80 | $ | 98 | 23 | % | $ | 148 | $ | 188 | 27 | % | ||||||||||||
Expenses: |
||||||||||||||||||||||||
Natural gas |
18 | 18 | — | 34 | 33 | 3 | % | |||||||||||||||||
Operation and maintenance |
25 | 29 | (16 | %) | 46 | 58 | (26 | %) | ||||||||||||||||
Depreciation and amortization |
5 | 10 | (100 | %) | 11 | 19 | (73 | %) | ||||||||||||||||
Taxes other than income taxes |
1 | 2 | (100 | %) | 3 | 3 | — | |||||||||||||||||
Total |
49 | 59 | (20 | %) | 94 | 113 | (20 | %) | ||||||||||||||||
Operating Income |
$ | 31 | $ | 39 | 26 | % | $ | 54 | $ | 75 | 39 | % | ||||||||||||
Equity in earnings of unconsolidated affiliates |
$ | 3 | $ | 3 | — | $ | 5 | $ | 5 | — | ||||||||||||||
Field Services Operating Data: |
||||||||||||||||||||||||
Throughput data in BCF |
||||||||||||||||||||||||
Gathering |
156 | 197 | 26 | % | 284 | 380 | 34 | % | ||||||||||||||||
| Other Operations | ||||||||||||||||||||||||
| Quarter Ended | Six Months Ended | |||||||||||||||||||||||
| June 30, | % Diff | June 30, | % Diff | |||||||||||||||||||||
| 2010 | 2011 | Fav/(Unfav) | 2010 | 2011 | Fav/(Unfav) | |||||||||||||||||||
Results of Operations: |
||||||||||||||||||||||||
Revenues |
$ | 3 | $ | 3 | — | $ | 6 | $ | 6 | — | ||||||||||||||
Expenses |
— | — | — | 2 | 4 | (100 | %) | |||||||||||||||||
Operating Income |
$ | 3 | $ | 3 | — | $ | 4 | $ | 2 | (50 | %) | |||||||||||||
Capital Expenditures by Segment
(Millions of Dollars)
(Unaudited)
(Millions of Dollars)
(Unaudited)
| Quarter Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2010 | 2011 | 2010 | 2011 | |||||||||||||
Capital Expenditures by Segment |
||||||||||||||||
Electric Transmission & Distribution |
$ | 101 | $ | 124 | $ | 196 | $ | 230 | ||||||||
Natural Gas Distribution |
45 | 75 | 74 | 126 | ||||||||||||
Competitive Natural Gas Sales and Services |
1 | 3 | 1 | 3 | ||||||||||||
Interstate Pipelines |
32 | 21 | 40 | 39 | ||||||||||||
Field Services |
220 | 30 | 341 | 99 | ||||||||||||
Other Operations |
3 | 8 | 7 | 17 | ||||||||||||
Total |
$ | 402 | $ | 261 | $ | 659 | $ | 514 | ||||||||
(Millions of Dollars)
(Unaudited)
(Unaudited)
| Quarter Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2010 | 2011 | 2010 | 2011 | |||||||||||||
Interest Expense Detail |
||||||||||||||||
Amortization of Deferred Financing Cost |
$ | 5 | $ | 6 | $ | 12 | $ | 13 | ||||||||
Capitalization of Interest Cost |
(2 | ) | (1 | ) | (3) | (3) | ||||||||||
Transition and System Restoration Bond Interest Expense |
36 | 32 | 72 | 65 | ||||||||||||
Other Interest Expense |
118 | 106 | 234 | 217 | ||||||||||||
Total Interest Expense |
$ | 157 | $ | 143 | $ | 315 | $ | 292 | ||||||||
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.
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)
Condensed Consolidated Balance Sheets
(Millions of Dollars)
(Unaudited)
| December 31, | June 30, | |||||||
| 2010 | 2011 | |||||||
ASSETS |
||||||||
Current Assets: |
||||||||
Cash and cash equivalents |
$ | 199 | $ | 190 | ||||
Other current assets |
2,383 | 1,852 | ||||||
Total current assets |
2,582 | 2,042 | ||||||
Property, Plant and Equipment, net |
11,732 | 11,981 | ||||||
Other Assets: |
||||||||
Goodwill |
1,696 | 1,696 | ||||||
Regulatory assets |
3,446 | 3,315 | ||||||
Other non-current assets |
655 | 643 | ||||||
Total other assets |
5,797 | 5,654 | ||||||
Total Assets |
$ | 20,111 | $ | 19,677 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
Current Liabilities: |
||||||||
Short-term borrowings |
$ | 53 | $ | 109 | ||||
Current portion of transition and system restoration bonds long-term debt |
283 | 294 | ||||||
Current portion of indexed debt |
126 | 128 | ||||||
Current portion of other long-term debt |
19 | 46 | ||||||
Other current liabilities |
2,139 | 1,784 | ||||||
Total current liabilities |
2,620 | 2,361 | ||||||
Other Liabilities: |
||||||||
Accumulated deferred income taxes, net |
2,934 | 3,148 | ||||||
Regulatory liabilities |
989 | 1,031 | ||||||
Other non-current liabilities |
1,369 | 1,314 | ||||||
Total other liabilities |
5,292 | 5,493 | ||||||
Long-term Debt: |
||||||||
Transition and system restoration bonds |
2,522 | 2,371 | ||||||
Other |
6,479 | 6,139 | ||||||
Total long-term debt |
9,001 | 8,510 | ||||||
Shareholders’ Equity |
3,198 | 3,313 | ||||||
Total Liabilities and Shareholders’ Equity |
$ | 20,111 | $ | 19,677 | ||||
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.
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)
Condensed Statements of Consolidated Cash Flows
(Millions of Dollars)
(Unaudited)
| Six Months Ended June 30, | ||||||||
| 2010 | 2011 | |||||||
Cash Flows from Operating Activities: |
||||||||
Net income |
$ | 195 | $ | 267 | ||||
Adjustments to reconcile net income to net
cash provided by operating activities: |
||||||||
Depreciation and amortization |
431 | 439 | ||||||
Deferred income taxes |
(37 | ) | 209 | |||||
Changes in net regulatory assets |
26 | 15 | ||||||
Changes in other assets and liabilities |
195 | 196 | ||||||
Other, net |
8 | 11 | ||||||
Net Cash Provided by Operating Activities |
818 | 1,137 | ||||||
Net Cash Used in Investing Activities |
(719 | ) | (572 | ) | ||||
Net Cash Used in Financing Activities |
(256 | ) | (574 | ) | ||||
Net Decrease in Cash and Cash Equivalents |
(157 | ) | (9 | ) | ||||
Cash and Cash Equivalents at Beginning of Period |
740 | 199 | ||||||
Cash and Cash Equivalents at End of Period |
$ | 583 | $ | 190 | ||||
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.