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): November 2, 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)) |
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On November 2, 2011, CenterPoint Energy, Inc. (“CenterPoint Energy”) reported third quarter
2011 earnings. For additional information regarding CenterPoint Energy’s third 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 November 2, 2011 regarding CenterPoint Energy, Inc.’s third quarter 2011 earnings. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| CENTERPOINT ENERGY, INC. |
||||
| Date: November 2, 2011 | By: | /s/ Walter L. Fitzgerald | ||
| Walter L. Fitzgerald | ||||
| Senior Vice President and
Chief Accounting Officer |
||||
EXHIBIT INDEX
| EXHIBIT | ||||
| NUMBER | EXHIBIT DESCRIPTION | |||
| 99.1 | Press Release issued November 2, 2011 regarding CenterPoint
Energy, Inc.’s third quarter 2011 earnings. |
|||
Exhibit 99.1
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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 | Page 1 of 6 |
CENTERPOINT ENERGY REPORTS THIRD QUARTER 2011 EARNINGS
Houston, TX — November 2, 2011 - CenterPoint Energy, Inc. (NYSE: CNP) today reported net
income of $973 million, or $2.27 per diluted share, for the third quarter of 2011 compared to $123
million, or $0.29 per diluted share, for the same period of 2010. The third quarter of 2011
includes net income of $811 million, or $1.89 per diluted share, reflecting the final resolution of
the appeals of the 2004 true-up order of the Texas Public Utility Commission (Texas PUC) issued in
connection with the restructuring of the Texas electric industry. Excluding this amount, net income
would have been $162 million, or $0.38 per diluted share, for the third quarter of 2011 compared to
$123 million, or $0.29 per diluted share, for the same period of 2010.
Operating income for the third quarter of 2011 was $357 million compared to $327 million for the
same period of 2010.
“This was a significant quarter for our company,” said David M. McClanahan, president and chief
executive officer of CenterPoint Energy. “We resolved the long-standing proceeding arising from the
restructuring of the electric industry in Texas. As a result, we expect to issue an additional
$1.695 billion in transition bonds later this year or early next year, and have booked $811 million
in net income this year and will recognize another $258 million over time. Operationally, our
regulated electric and natural gas utilities reported solid results and our field services unit
continued to realize growth from the investments we made in the Haynesville and Fayetteville
shales. We continue to look for opportunities to invest across our portfolio of electric and
natural gas businesses and build value for our shareholders.”
For the nine months ended September 30, 2011, net income was $1.24 billion, or $2.89 per diluted
share, compared to $318 million, or $0.78 per diluted share, for the same period of 2010. Excluding
the effects of the resolution of the true-up proceeding described above, net income would have been
$429 million, or $1.00 per diluted share, for the nine months ended September 30, 2011, compared to
$318 million, or $0.78 per diluted share, for the same period of 2010.
Operating income for the nine months ended September 30, 2011, was $1.024 billion compared to $947
million for the same period of 2010.
Electric Transmission & Distribution
The electric transmission & distribution segment reported operating income of $244 million for the
third quarter of 2011, consisting of $213 million from the regulated electric transmission &
distribution utility operations (TDU) and $31 million related to securitization bonds. Operating
income for the third quarter of 2010 was $212 million, consisting of $178 million from the TDU and
$34 million related to securitization bonds. Operating income for the TDU benefited from increased
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| For Immediate Release | Page 2 of 6 |
usage primarily due to warmer weather, growth of over 35,000 metered customers since September 2010
and lower depreciation and amortization expense. These gains were partially offset by higher
operation and maintenance expenses primarily related to increased labor, benefits and transmission
expenses.
Operating income for the nine months ended September 30, 2011, was $530 million, consisting of $434
million from the TDU and $96 million related to securitization bonds. Operating income for the same
period of 2010 was $477 million, consisting of $371 million from the TDU and $106 million related
to securitization bonds.
Natural Gas Distribution
The natural gas distribution segment reported an operating loss of $2 million for the third quarter
of 2011 compared to a loss of $4 million for the same period of 2010. The operating loss improved
due to lower operation and maintenance expenses, primarily reduced bad debt expenses. Due to
seasonal impacts, this segment typically reports a loss in the third quarter.
Operating income for the nine months ended September 30, 2011, was $153 million compared to $145
million for the same period of 2010.
Interstate Pipelines
The interstate pipelines segment reported operating income of $60 million for the third quarter of
2011 compared to $68 million for the same period of 2010. The decline was due to lower revenues
primarily related to an expired backhaul contract, restructured contracts with our natural gas
distribution affiliates and lower off-system sales. These declines were partially offset by
increased ancillary services and lower operation and maintenance expenses.
In addition to operating income, this segment recorded equity income of $6 million for the third
quarter of 2011 from its 50 percent interest in the Southeast Supply Header (SESH) compared to $8
million for the same period of 2010.
Operating income for the nine months ended September 30, 2011, was $196 million compared to $207
million for the same period of 2010. In addition to operating income, this segment recorded equity
income of $15 million for each of the nine months ended September 30, 2011, and 2010 from its 50
percent interest in SESH.
Field Services
The field services segment reported operating income of $61 million for the third quarter of
2011 compared to $40 million for the same period of 2010. Operating income benefited from higher
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| For Immediate Release | Page 3 of 6 |
gathering volumes in the Haynesville and Fayetteville shales, revenues attributable to throughput
volume commitments and lower operation and maintenance expenses. These gains were partially
offset by lower prices received from sales of retained gas and higher depreciation and amortization
expenses primarily related to facility expansions.
In addition to operating income, this business had equity income of $2 million for the third
quarter of 2011 from its 50 percent interest in a gathering and processing joint venture (Waskom)
compared to $3 million for the same period of 2010.
Operating income for the nine months ended September 30, 2011, was $136 million compared to $94
million for the same period of 2010. Equity income from Waskom was $7 million for the nine months
ended September 30, 2011, compared to $8 million for the same period of 2010.
Competitive Natural Gas Sales and Services
The competitive natural gas sales and services segment reported an operating loss of $10 million
for the third quarter of 2011 compared to operating income of $7 million for the same period of
2010. The third quarter of 2011 included gains of $6 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 gains of $19 million for the same period of 2010. The third
quarter of 2011 also included a $7 million write-down of natural gas inventory to the lower of
average cost or market compared to a $6 million write-down in the same period of 2010. Basis
spreads on pipeline transportation opportunities remain depressed and continue to negatively impact
this segment’s results.
Operating income for the nine months ended September 30, 2011, was $3 million compared to $16
million for the same period of 2010. Operating income for the nine months ended September 30, 2011,
included gains of $8 million resulting from mark-to-market accounting compared to gains of $14
million for the same period of 2010. The nine months ended September 30, 2011, included a $7
million write-down of natural gas inventory compared to a $6 million write-down in the same period
of 2010.
Resolution of True-up Remand Proceeding
On October 13, 2011, the Texas PUC approved a final order resolving all issues raised in connection
with the Texas Supreme Court’s remand of the Texas PUC’s 2004 true-up order. Pursuant to the final
order, the company is entitled to recover an additional true-up balance of $1.695 billion, less
certain expenses. On October 27, 2011, the Texas PUC approved a financing order that authorizes the
company to issue transition bonds to securitize the approved true-up amounts. In the third quarter
of 2011, the company recorded net income of $811 million related to the true-up remand. An
additional $258 million in net income will be recognized over the life of the transition bonds.
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| For Immediate Release | Page 4 of 6 |
Dividend Declaration
On October 26, 2011, CenterPoint Energy’s board of directors declared a regular quarterly cash
dividend of $0.1975 per share of common stock payable on December 9, 2011, to shareholders of
record as of the close of business on November 16, 2011.
Outlook for 2011
Excluding the effects of the resolution of the true-up proceeding, CenterPoint Energy expects its
2011 earnings to be at the high end of its guidance range 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 and inventory accounting in the company’s competitive natural gas
sales and services business. For the impact of these factors on the company’s earnings for the
three and nine months ended September 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 September 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 Wednesday, November 2,
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
replay of the call can be accessed approximately two hours after the completion of the call and
will be archived on the website for at least one year.
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| For Immediate Release | Page 5 of 6 |
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 nearly $21 billion. With over 8,800 employees, CenterPoint Energy and its predecessor
companies have been in business for more than 135 years. For more information, visit the company’s
website at CenterPointEnergy.com.
This news release includes forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Actual events and results may differ materially from
those expressed or implied by these forward-looking statements. The statements in this news
release regarding the company’s earnings outlook for 2011 and future financial performance and
results of operations, the anticipated issuance of transition bonds to recover the amount
authorized in the true-up remand proceeding, and any other statements that are not historical facts
are forward-looking statements. Each forward-looking statement contained in this news release
speaks only as of the date of this release. Factors that could affect actual results include (1)
state and federal legislative and regulatory actions or developments affecting various aspects of
CenterPoint Energy’s businesses, including, among others, energy deregulation or re-regulation,
pipeline safety, health care reform, financial reform and tax legislation; (2) state and federal
legislative and regulatory actions or developments relating to the environment, including those
related to global climate change; (3) timely and appropriate rate actions and increases, allowing
recovery of costs and a reasonable return on investment; (4) factors that may impact the timing and
completion of the contemplated transition bond offering, including actions by the Texas PUC, any
appeals of the financing order issued by the Texas PUC and future market conditions; (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,
including the effects on re-contracting available capacity on CenterPoint Energy’s interstate
pipelines; (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
direct or indirect effects on CenterPoint Energy’s facilities, operations and financial condition
resulting from terrorism, cyber attacks, data security breaches or other attempts to disrupt its
businesses or the businesses of third parties, or other catastrophic events; (12) the impact of
unplanned facility outages; (13) timely and appropriate regulatory actions allowing securitization
or other recovery of costs associated with any future hurricanes or natural disasters; (14) changes
in interest rates or rates of inflation; (15) commercial bank and financial market conditions,
CenterPoint Energy’s access to capital, the cost of such capital, and the results of our financing
and refinancing efforts, including availability of funds in the debt capital markets; (16) actions
by rating agencies; (17) effectiveness of CenterPoint Energy’s risk management activities; (18)
inability of various counterparties to meet their obligations; (19) non-payment for services due to
financial distress of CenterPoint Energy’s customers; (20) the ability of GenOn Energy, Inc.
(formerly known as RRI Energy, Inc.) and its subsidiaries to satisfy their obligations to
CenterPoint Energy and its subsidiaries; (21) the ability of retail electric providers, and
particularly the two largest customers of
the TDU, to satisfy their obligations to CenterPoint
Energy and its subsidiaries; (22) the outcome of litigation brought by or against CenterPoint
Energy; (23) CenterPoint Energy’s ability to control costs; (24) the investment performance of
pension and postretirement benefit plans; (25) potential business strategies, including
restructurings, acquisitions or dispositions of assets or businesses; (26) acquisition and merger
activities; and (27) 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, June
30, 2011, and September 30, 2011, and other reports CenterPoint Energy or its subsidiaries may file
from time to time with the Securities and Exchange Commission.
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| For Immediate Release | Page 6 of 6 |
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 | Nine Months Ended | |||||||||||||||
| September 30, 2011 | September 30, 2011 | |||||||||||||||
| Net Income | EPS | Net Income | EPS | |||||||||||||
| (in millions) | (in millions) | |||||||||||||||
As reported |
$ | 973 | $ | 2.27 | $ | 1,240 | $ | 2.89 | ||||||||
True-up related items: |
||||||||||||||||
Debt component return, net of taxes |
(224 | ) | (0.52 | ) | (224 | ) | (0.52 | ) | ||||||||
Extraordinary item, net of taxes |
(587 | ) | (1.37 | ) | (587 | ) | (1.37 | ) | ||||||||
Excluding true-up related items |
$ | 162 | $ | 0.38 | $ | 429 | $ | 1.00 | ||||||||
Timing effects impacting CES(1): |
||||||||||||||||
Mark-to-market (gains) losses — natural gas derivative contracts |
(4 | ) | (0.01 | ) | (5 | ) | (0.01 | ) | ||||||||
Natural gas inventory write-downs |
4 | 0.01 | 4 | 0.01 | ||||||||||||
ZENS-related mark-to-market (gains) losses: |
||||||||||||||||
Marketable securities(2) |
52 | 0.12 | 19 | 0.05 | ||||||||||||
Indexed debt securities |
(57 | ) | (0.13 | ) | (42 | ) | (0.10 | ) | ||||||||
Per the basis used in providing 2011 annual earnings guidance |
$ | 157 | $ | 0.37 | $ | 405 | $ | 0.95 | ||||||||
| (1) | Competitive natural gas sales and services | |
| (2) | Time Warner Inc., Time Warner Cable Inc. and AOL Inc. |
###
CenterPoint Energy, Inc. and Subsidiaries
Statements of Consolidated Income
(Millions of Dollars)
(Unaudited)
Statements of Consolidated Income
(Millions of Dollars)
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2010 | 2011 | 2010 | 2011 | |||||||||||||
Revenues: |
||||||||||||||||
Electric Transmission & Distribution |
$ | 655 | $ | 707 | $ | 1,699 | $ | 1,802 | ||||||||
Natural Gas Distribution |
398 | 384 | 2,400 | 2,048 | ||||||||||||
Competitive Natural Gas Sales and Services |
647 | 584 | 2,059 | 1,876 | ||||||||||||
Interstate Pipelines |
170 | 135 | 456 | 424 | ||||||||||||
Field Services |
94 | 117 | 242 | 305 | ||||||||||||
Other Operations |
3 | 3 | 9 | 9 | ||||||||||||
Eliminations |
(59 | ) | (49 | ) | (178 | ) | (159 | ) | ||||||||
Total |
1,908 | 1,881 | 6,687 | 6,305 | ||||||||||||
Expenses: |
||||||||||||||||
Natural gas |
808 | 735 | 3,521 | 2,989 | ||||||||||||
Operation and maintenance |
444 | 448 | 1,268 | 1,333 | ||||||||||||
Depreciation and amortization |
243 | 253 | 660 | 677 | ||||||||||||
Taxes other than income taxes |
86 | 88 | 291 | 282 | ||||||||||||
Total |
1,581 | 1,524 | 5,740 | 5,281 | ||||||||||||
Operating Income |
327 | 357 | 947 | 1,024 | ||||||||||||
Other Income (Expense): |
||||||||||||||||
Gain (loss) on marketable securities |
19 | (80 | ) | 35 | (30 | ) | ||||||||||
Gain (loss) on indexed debt securities |
(5 | ) | 88 | — | 65 | |||||||||||
Interest and other finance charges |
(121 | ) | (114 | ) | (364 | ) | (341 | ) | ||||||||
Interest on transition and system restoration bonds |
(34 | ) | (31 | ) | (106 | ) | (96 | ) | ||||||||
Equity in earnings of unconsolidated affiliates |
10 | 8 | 22 | 22 | ||||||||||||
Return on true-up balance |
— | 352 | — | 352 | ||||||||||||
Other — net |
3 | 10 | 7 | 19 | ||||||||||||
Total |
(128 | ) | 233 | (406 | ) | (9 | ) | |||||||||
Income Before Income Taxes and Extraordinary Item |
199 | 590 | 541 | 1,015 | ||||||||||||
Income Tax Expense |
76 | 204 | 223 | 362 | ||||||||||||
Income Before Extraordinary Item |
123 | 386 | 318 | 653 | ||||||||||||
Extraordinary Item, net of tax |
— | 587 | — | 587 | ||||||||||||
Net Income |
$ | 123 | $ | 973 | $ | 318 | $ | 1,240 | ||||||||
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)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2010 | 2011 | 2010 | 2011 | |||||||||||||
Basic Earnings Per Common Share: |
||||||||||||||||
Income Before Extraordinary Item |
$ | 0.29 | $ | 0.90 | $ | 0.79 | $ | 1.53 | ||||||||
Extraordinary item, net of tax |
— | 1.38 | — | 1.38 | ||||||||||||
Net Income |
$ | 0.29 | $ | 2.28 | $ | 0.79 | $ | 2.91 | ||||||||
Diluted Earnings Per Common Share: |
||||||||||||||||
Income Before Extraordinary Item |
$ | 0.29 | $ | 0.90 | $ | 0.78 | $ | 1.52 | ||||||||
Extraordinary item, net of tax |
— | 1.37 | — | 1.37 | ||||||||||||
Net Income |
$ | 0.29 | $ | 2.27 | $ | 0.78 | $ | 2.89 | ||||||||
Dividends Declared per Common Share |
$ | 0.1950 | $ | 0.1975 | $ | 0.5850 | $ | 0.5925 | ||||||||
Weighted Average Common Shares Outstanding (000): |
||||||||||||||||
- Basic |
422,178 | 425,885 | 404,957 | 425,517 | ||||||||||||
- Diluted |
424,968 | 428,842 | 407,728 | 428,452 | ||||||||||||
Operating Income (Loss) by Segment |
||||||||||||||||
Electric Transmission & Distribution: |
||||||||||||||||
Electric Transmission and Distribution Operations |
$ | 178 | $ | 213 | $ | 371 | $ | 434 | ||||||||
Transition and System Restoration Bond Companies |
34 | 31 | 106 | 96 | ||||||||||||
Total Electric Transmission & Distribution |
212 | 244 | 477 | 530 | ||||||||||||
Natural Gas Distribution |
(4 | ) | (2 | ) | 145 | 153 | ||||||||||
Competitive Natural Gas Sales and Services |
7 | (10 | ) | 16 | 3 | |||||||||||
Interstate Pipelines |
68 | 60 | 207 | 196 | ||||||||||||
Field Services |
40 | 61 | 94 | 136 | ||||||||||||
Other Operations |
4 | 4 | 8 | 6 | ||||||||||||
Total |
$ | 327 | $ | 357 | $ | 947 | $ | 1,024 | ||||||||
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 | ||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
| September 30, | % Diff | September 30, | % Diff | |||||||||||||||||||||
| 2010 | 2011 | Fav/(Unfav) | 2010 | 2011 | Fav/(Unfav) | |||||||||||||||||||
Results of Operations: |
||||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Electric transmission and distribution utility |
$ | 520 | $ | 565 | 9 | % | $ | 1,355 | $ | 1,454 | 7 | % | ||||||||||||
Transition and system restoration bond companies |
135 | 142 | 5 | % | 344 | 348 | 1 | % | ||||||||||||||||
Total |
655 | 707 | 8 | % | 1,699 | 1,802 | 6 | % | ||||||||||||||||
Expenses: |
||||||||||||||||||||||||
Operation and maintenance |
215 | 228 | (6 | %) | 609 | 655 | (8 | %) | ||||||||||||||||
Depreciation and amortization |
75 | 70 | 7 | % | 219 | 207 | 5 | % | ||||||||||||||||
Taxes other than income taxes |
52 | 54 | (4 | %) | 156 | 158 | (1 | %) | ||||||||||||||||
Transition and system restoration bond companies |
101 | 111 | (10 | %) | 238 | 252 | (6 | %) | ||||||||||||||||
Total |
443 | 463 | (5 | %) | 1,222 | 1,272 | (4 | %) | ||||||||||||||||
Operating Income |
$ | 212 | $ | 244 | 15 | % | $ | 477 | $ | 530 | 11 | % | ||||||||||||
Operating Income: |
||||||||||||||||||||||||
Electric transmission and distribution operations |
$ | 178 | $ | 213 | 20 | % | $ | 371 | $ | 434 | 17 | % | ||||||||||||
Transition and system restoration bond companies |
34 | 31 | (9 | %) | 106 | 96 | (9 | %) | ||||||||||||||||
Total Segment Operating Income |
$ | 212 | $ | 244 | 15 | % | $ | 477 | $ | 530 | 11 | % | ||||||||||||
Electric Transmission & Distribution |
||||||||||||||||||||||||
Operating Data: |
||||||||||||||||||||||||
Actual MWH Delivered |
||||||||||||||||||||||||
Residential |
9,262,154 | 10,681,975 | 15 | % | 21,499,427 | 23,337,859 | 9 | % | ||||||||||||||||
Total |
23,342,324 | 24,956,915 | 7 | % | 59,952,416 | 62,802,372 | 5 | % | ||||||||||||||||
Weather (average for service area): |
||||||||||||||||||||||||
Percentage of 10-year average: |
||||||||||||||||||||||||
Cooling degree days |
109 | % | 121 | % | 12 | % | 104 | % | 123 | % | 19 | % | ||||||||||||
Heating degree days |
0 | % | 0 | % | 0 | % | 160 | % | 106 | % | (54 | %) | ||||||||||||
Number of metered customers — end of period: |
||||||||||||||||||||||||
Residential |
1,868,421 | 1,899,479 | 2 | % | 1,868,421 | 1,899,479 | 2 | % | ||||||||||||||||
Total |
2,115,595 | 2,150,731 | 2 | % | 2,115,595 | 2,150,731 | 2 | % | ||||||||||||||||
| Natural Gas Distribution | ||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
| September 30, | % Diff | September 30, | % Diff | |||||||||||||||||||||
| 2010 | 2011 | Fav/(Unfav) | 2010 | 2011 | Fav/(Unfav) | |||||||||||||||||||
Results of Operations: |
||||||||||||||||||||||||
Revenues |
$ | 398 | $ | 384 | (4 | %) | $ | 2,400 | $ | 2,048 | (15 | %) | ||||||||||||
Expenses: |
||||||||||||||||||||||||
Natural gas |
180 | 167 | 7 | % | 1,563 | 1,203 | 23 | % | ||||||||||||||||
Operation and maintenance |
160 | 156 | 3 | % | 471 | 481 | (2 | %) | ||||||||||||||||
Depreciation and amortization |
40 | 41 | (3 | %) | 124 | 124 | — | |||||||||||||||||
Taxes other than income taxes |
22 | 22 | — | 97 | 87 | 10 | % | |||||||||||||||||
Total |
402 | 386 | 4 | % | 2,255 | 1,895 | 16 | % | ||||||||||||||||
Operating Income (Loss) |
$ | (4 | ) | $ | (2 | ) | 50 | % | $ | 145 | $ | 153 | 6 | % | ||||||||||
Natural Gas Distribution Operating Data: |
||||||||||||||||||||||||
Throughput data in BCF |
||||||||||||||||||||||||
Residential |
13 | 12 | (8 | %) | 125 | 122 | (2 | %) | ||||||||||||||||
Commercial and Industrial |
46 | 48 | 4 | % | 182 | 187 | 3 | % | ||||||||||||||||
Total Throughput |
59 | 60 | 2 | % | 307 | 309 | 1 | % | ||||||||||||||||
Weather (average for service area) |
||||||||||||||||||||||||
Percentage of 10-year average: |
||||||||||||||||||||||||
Heating degree days |
97 | % | 115 | % | 18 | % | 110 | % | 107 | % | (3 | %) | ||||||||||||
Number of customers — end of period: |
||||||||||||||||||||||||
Residential |
2,969,452 | 2,990,934 | 1 | % | 2,969,452 | 2,990,934 | 1 | % | ||||||||||||||||
Commercial and Industrial |
242,032 | 241,838 | — | 242,032 | 241,838 | — | ||||||||||||||||||
Total |
3,211,484 | 3,232,772 | 1 | % | 3,211,484 | 3,232,772 | 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 | ||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
| September 30, | % Diff | September 30, | % Diff | |||||||||||||||||||||
| 2010 | 2011 | Fav/(Unfav) | 2010 | 2011 | Fav/(Unfav) | |||||||||||||||||||
Results of Operations: |
||||||||||||||||||||||||
Revenues |
$ | 647 | $ | 584 | (10 | %) | $ | 2,059 | $ | 1,876 | (9 | %) | ||||||||||||
Expenses: |
||||||||||||||||||||||||
Natural gas |
629 | 582 | 7 | % | 2,009 | 1,838 | 9 | % | ||||||||||||||||
Operation and maintenance |
10 | 10 | — | 29 | 31 | (7 | %) | |||||||||||||||||
Depreciation and amortization |
1 | 1 | — | 3 | 3 | — | ||||||||||||||||||
Taxes other than income taxes |
— | 1 | (100 | %) | 2 | 1 | 50 | % | ||||||||||||||||
Total |
640 | 594 | 7 | % | 2,043 | 1,873 | 8 | % | ||||||||||||||||
Operating Income (Loss) |
$ | 7 | $ | (10 | ) | (243 | %) | $ | 16 | $ | 3 | (81 | %) | |||||||||||
Competitive Natural Gas Sales and
Services Operating Data: |
||||||||||||||||||||||||
Throughput data in BCF |
135 | 126 | (7 | %) | 404 | 407 | 1 | % | ||||||||||||||||
Number of customers — end of period |
11,883 | 12,650 | 6 | % | 11,883 | 12,650 | 6 | % | ||||||||||||||||
| Interstate Pipelines | ||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
| September 30, | % Diff | September 30, | % Diff | |||||||||||||||||||||
| 2010 | 2011 | Fav/(Unfav) | 2010 | 2011 | Fav/(Unfav) | |||||||||||||||||||
Results of Operations: |
||||||||||||||||||||||||
Revenues |
$ | 170 | $ | 135 | (21 | %) | $ | 456 | $ | 424 | (7 | %) | ||||||||||||
Expenses: |
||||||||||||||||||||||||
Natural gas |
38 | 15 | 61 | % | 72 | 54 | 25 | % | ||||||||||||||||
Operation and maintenance |
42 | 39 | 7 | % | 112 | 109 | 3 | % | ||||||||||||||||
Depreciation and amortization |
13 | 13 | — | 39 | 40 | (3 | %) | |||||||||||||||||
Taxes other than income taxes |
9 | 8 | 11 | % | 26 | 25 | 4 | % | ||||||||||||||||
Total |
102 | 75 | 26 | % | 249 | 228 | 8 | % | ||||||||||||||||
Operating Income |
$ | 68 | $ | 60 | (12 | %) | $ | 207 | $ | 196 | (5 | %) | ||||||||||||
Equity in earnings of unconsolidated affiliates |
8 | $ | 6 | (25 | %) | 15 | $ | 15 | — | |||||||||||||||
Pipelines Operating Data: |
||||||||||||||||||||||||
Throughput data in BCF |
||||||||||||||||||||||||
Transportation |
422 | 356 | (16 | %) | 1,260 | 1,208 | (4 | %) | ||||||||||||||||
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 | ||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
| September 30, | % Diff | September 30, | % Diff | |||||||||||||||||||||
| 2010 | 2011 | Fav/(Unfav) | 2010 | 2011 | Fav/(Unfav) | |||||||||||||||||||
Results of Operations: |
||||||||||||||||||||||||
Revenues |
$ | 94 | $ | 117 | 24 | % | $ | 242 | $ | 305 | 26 | % | ||||||||||||
Expenses: |
||||||||||||||||||||||||
Natural gas |
19 | 19 | — | 53 | 52 | 2 | % | |||||||||||||||||
Operation and maintenance |
29 | 25 | 14 | % | 75 | 83 | (11 | %) | ||||||||||||||||
Depreciation and amortization |
6 | 9 | (50 | %) | 17 | 28 | (65 | %) | ||||||||||||||||
Taxes other than income taxes |
— | 3 | (100 | %) | 3 | 6 | (100 | %) | ||||||||||||||||
Total |
54 | 56 | (4 | %) | 148 | 169 | (14 | %) | ||||||||||||||||
Operating Income |
$ | 40 | $ | 61 | 53 | % | $ | 94 | $ | 136 | 45 | % | ||||||||||||
Equity in earnings of unconsolidated affiliates |
3 | $ | 2 | (33 | %) | 8 | $ | 7 | (13 | %) | ||||||||||||||
Field Services Operating Data: |
||||||||||||||||||||||||
Throughput data in BCF |
||||||||||||||||||||||||
Gathering |
180 | 206 | 14 | % | 464 | 586 | 26 | % | ||||||||||||||||
| Other Operations | ||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
| September 30, | % Diff | September 30, | % Diff | |||||||||||||||||||||
| 2010 | 2011 | Fav/(Unfav) | 2010 | 2011 | Fav/(Unfav) | |||||||||||||||||||
Results of Operations: |
||||||||||||||||||||||||
Revenues |
$ | 3 | $ | 3 | — | $ | 9 | $ | 9 | — | ||||||||||||||
Expenses |
(1 | ) | (1 | ) | — | 1 | 3 | (200 | %) | |||||||||||||||
Operating Income |
$ | 4 | $ | 4 | — | $ | 8 | $ | 6 | (25 | %) | |||||||||||||
Capital Expenditures by Segment
(Millions of Dollars)
(Unaudited)
(Millions of Dollars)
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2010 | 2011 | 2010 | 2011 | |||||||||||||
Capital Expenditures by Segment |
||||||||||||||||
Electric Transmission & Distribution |
121 | $ | 135 | 317 | $ | 365 | ||||||||||
Natural Gas Distribution |
54 | 89 | 128 | 215 | ||||||||||||
Competitive Natural Gas Sales and Services |
1 | 1 | 2 | 4 | ||||||||||||
Interstate Pipelines |
31 | 25 | 71 | 64 | ||||||||||||
Field Services |
131 | 64 | 472 | 163 | ||||||||||||
Other Operations |
8 | 11 | 15 | 28 | ||||||||||||
Total |
$ | 346 | $ | 325 | $ | 1,005 | $ | 839 | ||||||||
(Millions of Dollars)
(Unaudited)
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2010 | 2011 | 2010 | 2011 | |||||||||||||
Interest Expense Detail |
||||||||||||||||
Amortization of Deferred Financing Cost |
$ | 6 | $ | 10 | $ | 18 | $ | 23 | ||||||||
Capitalization of Interest Cost |
(2 | ) | (2 | ) | (5 | ) | (5 | ) | ||||||||
Transition and System Restoration Bond Interest Expense |
34 | 31 | 106 | 96 | ||||||||||||
Other Interest Expense |
117 | 106 | 351 | 323 | ||||||||||||
Total Interest Expense |
$ | 155 | $ | 145 | $ | 470 | $ | 437 | ||||||||
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, | September 30, | |||||||
| 2010 | 2011 | |||||||
ASSETS |
||||||||
Current Assets: |
||||||||
Cash and cash equivalents |
$ | 199 | $ | 103 | ||||
Other current assets |
2,383 | 1,879 | ||||||
Total current assets |
2,582 | 1,982 | ||||||
Property, Plant and Equipment, net |
11,732 | 12,158 | ||||||
Other Assets: |
||||||||
Goodwill |
1,696 | 1,696 | ||||||
Regulatory assets |
3,446 | 4,475 | ||||||
Other non-current assets |
655 | 640 | ||||||
Total other assets |
5,797 | 6,811 | ||||||
Total Assets |
$ | 20,111 | $ | 20,951 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
Current Liabilities: |
||||||||
Short-term borrowings |
$ | 53 | $ | 84 | ||||
Current portion of transition and system restoration bonds long-term debt |
283 | 307 | ||||||
Current portion of indexed debt |
126 | 130 | ||||||
Current portion of other long-term debt |
19 | 46 | ||||||
Other current liabilities |
2,139 | 1,752 | ||||||
Total current liabilities |
2,620 | 2,319 | ||||||
Other Liabilities: |
||||||||
Accumulated deferred income taxes, net |
2,934 | 3,814 | ||||||
Regulatory liabilities |
989 | 1,033 | ||||||
Other non-current liabilities |
1,369 | 1,081 | ||||||
Total other liabilities |
5,292 | 5,928 | ||||||
Long-term Debt: |
||||||||
Transition and system restoration bonds |
2,522 | 2,215 | ||||||
Other |
6,479 | 6,282 | ||||||
Total long-term debt |
9,001 | 8,497 | ||||||
Shareholders’ Equity |
3,198 | 4,207 | ||||||
Total Liabilities and Shareholders’ Equity |
$ | 20,111 | $ | 20,951 | ||||
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)
| Nine Months Ended September 30, | ||||||||
| 2010 | 2011 | |||||||
Cash Flows from Operating Activities: |
||||||||
Net income |
$ | 318 | $ | 1,240 | ||||
Adjustments to reconcile net income to net
cash provided by operating activities: |
||||||||
Depreciation and amortization |
681 | 699 | ||||||
Deferred income taxes |
112 | 404 | ||||||
Extraordinary item, net of tax |
— | (587 | ) | |||||
Return on true-up balance |
— | (352 | ) | |||||
Write-down of natural gas inventory |
6 | 7 | ||||||
Changes in net regulatory assets |
23 | 22 | ||||||
Changes in other assets and liabilities |
(170 | ) | 1 | |||||
Other, net |
13 | 15 | ||||||
Net Cash Provided by Operating Activities |
983 | 1,449 | ||||||
Net Cash Used in Investing Activities |
(1,014 | ) | (848 | ) | ||||
Net Cash Used in Financing Activities |
(610 | ) | (697 | ) | ||||
Net Decrease in Cash and Cash Equivalents |
(641 | ) | (96 | ) | ||||
Cash and Cash Equivalents at Beginning of Period |
740 | 199 | ||||||
Cash and Cash Equivalents at End of Period |
$ | 99 | $ | 103 | ||||