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): OCTOBER 17, 2002 ------------------------------ 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) 207-3000 ------------------------------
ITEM 5. OTHER EVENTS. ANNOUNCEMENT OF THIRD QUARTER 2002 RESULTS On October 17, 2002, CenterPoint Energy, Inc. ("CenterPoint Energy") reported third quarter 2002 earnings. For additional information regarding CenterPoint Energy's third quarter 2002 earnings, please refer to CenterPoint Energy's press release attached to this report as Exhibit 99.1 (the "Press Release"), which Press Release, other than the information therein under the caption "Outlook for 2002 and 2003," is incorporated by reference herein. MANAGEMENT CONFERENCE CALL On October 17, 2002, executives of CenterPoint Energy spoke to the public, as well as various members of the financial and investment community in Houston, Texas regarding CenterPoint Energy's third quarter 2002 results. A replay of this presentation has been made available on CenterPoint Energy's web site found at www.centerpointenergy.com in the Investor Relations section and will be archived for 14 days after the event. In addition, a replay of the presentation can be accessed until October 24, 2002, 6 p.m. Houston time, by calling (800) 642-1687 (Conference I.D. 6018429). ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits. The following exhibit is filed herewith: 99.1 Press Release issued October 17, 2002 regarding CenterPoint Energy's third quarter 2002 earnings. ITEM 9. REGULATION FD DISCLOSURE. CenterPoint Energy incorporates by reference into this Item 9 the information in the Press Release under the caption "Outlook for 2002 and 2003." The information in Item 9 of this report is being furnished, not filed, pursuant to Regulation FD. Accordingly, the information in Item 9 of this report 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. The furnishing of the information in this report is not intended to, and does not, constitute a determination or admission by CenterPoint Energy, that the information in this report is material or complete, or that investors should consider this information before making an investment decision with respect to any security of CenterPoint Energy or any of its affiliates. FORWARD-LOOKING STATEMENTS Some of the statements in the press release incorporated by reference herein are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those expressed or implied by these statements. In some cases, you can identify our forward-looking statements by the words "anticipates," "believes," "continue," "could," "estimates," "expects," "forecast," "goal," "intends," "may," "objective," "plans," "potential," "predicts," "projection," "should," "will," or other similar words. We have based our forward-looking statements on our management's beliefs and assumptions based on information available at the time the statements are made. We caution you that assumptions, beliefs, expectations, intentions and projections about future events may and often do vary materially from actual results. Therefore, actual results may differ materially from those expressed or implied by our forward-looking statements. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to update or revise publicly any forward-looking statements. The following list identifies some of the factors that could cause actual results to differ from those expressed or implied by our forward-looking statements: 2
o state, federal and international legislative and regulatory actions or developments, including deregulation, re-regulation and restructuring of the electric utility industry, changes in or application of laws or regulations applicable to other aspects of our business and actions with respect to, among other things: o approval of stranded costs; o allowed rates of return; o rate structures; o recovery of investments; and o operation and construction of facilities; o non-payment for our services due to financial distress of our customers; o the successful and timely completion of our capital projects; o industrial, commercial and residential growth in our service territory and changes in market demand and demographic patterns; o changes in business strategy or development plans; o unanticipated changes in interest rates or rates of inflation; o unanticipated changes in operating expenses and capital expenditures; o weather variations and other natural phenomena; o commercial bank and financial market conditions, our access to capital, the cost of such capital, receipt of certain approvals under the 1935 Act and the results of our financing and refinancing efforts, including availability of funds in the debt capital markets; o actions by rating agencies; o legal and administrative proceedings and settlements; o changes in tax laws; o significant changes in our relationship with our employees, including the availability of qualified personnel and the potential adverse effects if labor disputes or grievances were to occur; o significant changes in critical accounting policies material to us; o acts of terrorism or war, including any direct or indirect effect on our business resulting from terrorist attacks such as occurred on September 11, 2001 or any similar incidents or responses to those incidents; o the availability and price of insurance; o the outcome of the pending securities lawsuits against Reliant Energy, Incorporated and Reliant Resources, Inc.; o the outcome of the SEC investigation relating to the treatment in our consolidated financial statements of certain activities of Reliant Resources, Inc.; 3
o the reliability of the systems, procedures and other infrastructure necessary to operate the retail electric business in our service territory, including the systems owned and operated by the independent system operator in the Electric Reliability Council of Texas, Inc.; o political, legal, regulatory and economic conditions and developments in the United States; and o other factors discussed in our filings with the SEC. 4
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: October 17, 2002 By: /s/ James S. Brian ---------------------------------- James S. Brian Senior Vice President and Chief Accounting Officer 5
EXHIBIT INDEX EXHIBIT NUMBER EXHIBIT DESCRIPTION - ------- ------------------- 99.1 Press Release issued October 17, 2002 regarding CenterPoint Energy's third quarter 2002 earnings. 6
EXHIBIT 99.1 FOR FURTHER INFORMATION: Leticia Lowe, Media (713) 207-7702 Marianne Paulsen, Investors (713) 207-6500 FOR IMMEDIATE RELEASE: October 17, 2002 CENTERPOINT ENERGY REPORTS STRONG THIRD QUARTER 2002 EARNINGS HOUSTON, TX. - CenterPoint Energy, Inc. (NYSE: CNP), the new holding company for the regulated operations of the former Reliant Energy, Incorporated, today reported income from continuing operations before the cumulative effect of accounting change of $161 million, or $0.54 per diluted share for the third quarter of 2002. For the same period of 2001, and prior to the full implementation of the Texas electric restructuring law, income from continuing operations before the cumulative effect of accounting change was $183 million, or $0.63 per diluted share. Continuing operations for both the 2002 and 2001 periods exclude the earnings of Reliant Resources, Inc. (NYSE: RRI), which was spun off to CenterPoint Energy shareholders on September 30, 2002. The decrease in income from continuing operations for the third quarter of 2002 reflects the fundamental change in the company's electric operations as a result of the Texas electric restructuring law. The other segments of the company reported operating improvements, including the natural gas distribution and pipeline and gathering operations. Results for the third quarter of 2002 also reflected higher interest expense than the third quarter of 2001. On January 1, 2002, the company discontinued amortizing goodwill in accordance with SFAS No. 142, "Goodwill and Other Intangible Assets". During the third quarter of 2001, $12 million of goodwill amortization expense was recognized. For the nine months ended September 30, 2002, CenterPoint Energy reported income from continuing operations before the cumulative effect of accounting change of $394 million, or $1.32 per diluted share. For the same period of 2001, income from continuing operations before the cumulative effect of accounting change was $427 million, or $1.46 per diluted share. The year-over-year comparison for this period was impacted by the same factors discussed above. The amount of goodwill amortization expense that was recognized for the first nine months of 2001 was $37 million. "We are pleased to report another excellent quarter as our employees continued to focus on effectively operating our portfolio of regulated businesses," said David McClanahan, president and chief executive officer. "We will continue to build upon our strong business fundamentals and execute our strategy of building America's leading energy delivery company." SUMMARY OF TWO NEW REPORTABLE BUSINESS SEGMENTS With the opening of the Texas market to retail electric competition in January 2002, generation and retail electric sales were deregulated. Retail electric sales are no longer included in the company's operations. Pursuant to these changes, CenterPoint Energy started reporting two new business segments, electric generation
and electric transmission and distribution. The previously regulated generation operations in Texas are reported in the electric generation segment. The electric transmission and distribution segment includes results from regulated transmission and distribution operations as well as the impact of generation-related stranded costs recoverable by the regulated utility. As a result of the implementation of deregulation, there are no meaningful comparisons for these segments against prior periods. EBIT BY SEGMENT DETAILED ELECTRIC TRANSMISSION AND DISTRIBUTION The electric transmission and distribution segment reported earnings before interest and taxes (EBIT) of $407 million for the third quarter of 2002, reflecting seasonal demand. The $407 million of EBIT was comprised of $167 million for the regulated electric transmission and distribution business and non-cash EBIT of $240 million associated with generation-related regulatory assets, or Excess Cost Over Market (ECOM), as described below. The electric transmission and distribution business recovers the cost of its service through an energy delivery charge. This business benefited from growth in residential demand in the third quarter of 2002 compared to the same period of last year, partially offset by an anticipated decline in deliveries to industrial customers resulting from a move to self-generation. Metered customers, totaling 1.77 million at the end of the third quarter of 2002, continue to grow at a healthy annualized rate of 2 percent. Under the Texas restructuring law, a regulated utility may recover as part of its stranded investment any difference between market prices received by its affiliated power generation company and the market prices used in the Texas Public Utility Commission's ECOM model. This difference, which is recorded as a regulatory asset, produced $240 million of non-cash EBIT in the third quarter of 2002. ELECTRIC GENERATION The electric generation segment is comprised of over 14,000 MW of electric generation located entirely in the state of Texas. With the restructuring of the company into CenterPoint Energy, Inc. on August 31, 2002, these assets were transferred to a separate subsidiary called Texas Genco. This segment reported EBIT of $7 million for the third quarter of 2002. The company expects to distribute to its shareholders approximately 19 percent of the common stock of Texas Genco in a taxable distribution in late 2002 or early 2003. NATURAL GAS DISTRIBUTION The natural gas distribution segment reported a loss before interest and taxes of less than $1 million for the third quarter of 2002 compared to a loss before interest and taxes of $20 million for the same period of 2001. The amount of goodwill amortization expense recognized in the third quarter of 2001 was approximately $8 million for this segment. A significant reduction in bad debt expense in the third quarter of 2002 compared to the high levels of bad debt experienced in the same period last year contributed to the improvement in operating results.
PIPELINES AND GATHERING EBIT for the pipelines and gathering segment continued to produce consistent and stable margins and increased to $43 million for the third quarter of 2002 compared to $34 million for the same period of 2001. The amount of goodwill amortization expense recognized in the third quarter of 2001 was approximately $4 million. OTHER OPERATIONS The company's other continuing operations reported a loss before interest and taxes for the third quarter of 2002 of $8 million compared to a loss of $26 million for the same period of 2001. This change is primarily attributable to a $5 million net gain in the third quarter of 2002 compared to a $9 million net loss in the same period of 2001 related to the company's indexed debt securities and investment in AOL Time Warner. ACCOUNTING TREATMENT OF THE SPIN-OFF OF RELIANT RESOURCES On September 30, 2002, the company distributed its investment in Reliant Resources to CenterPoint Energy shareholders. In accounting for this distribution, the company wrote down its $5 billion investment in RRI to its then fair value of $847 million. This write-down will be reported as a non-cash charge in discontinued operations. The company also reduced additional paid-in-capital for the $847 million fair value to record the distribution as a return of capital. RRI's historical results will be reported as discontinued operations. OUTLOOK FOR 2002 AND 2003 CenterPoint Energy has previously provided earnings guidance within a range of $1.17 to $1.22 per diluted share for 2002. The company is increasing its 2002 earnings guidance to a range of $1.30 to $1.35 per diluted share. This increase takes into consideration the company's strong performance to date, the expectation of low seasonal demand for electricity and somewhat stronger seasonal demand for natural gas during the fourth quarter, higher borrowing costs, inherent uncertainties regarding additional financings expected during the remainder of the year and other variables associated with its businesses. For 2003, the company expects to achieve continued strong operating performance. However, higher borrowing costs and pension-related increases are expected to negatively impact the company's results. Although the company is not prepared to provide more specific guidance, CenterPoint Energy currently expects that its 2003 diluted earnings per share will be below our previous 2002 guidance. WEBCAST OF EARNINGS CONFERENCE CALL CenterPoint Energy has scheduled its third quarter 2002 earnings conference call for Thursday, October 17, 2002, at 1:30 p.m. Central time. Interested parties may listen to a live audio broadcast of the conference call at www.centerpointenergy.com/investors. A replay of the call can be accessed approximately two hours after the completion of the call. CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electricity transmission and distribution, natural gas distribution and sales,
interstate pipeline and gathering operations, and more than 14,000 megawatts of power generation in Texas. The company serves nearly five million customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Missouri, Oklahoma, and Texas. Assets total nearly $19 billion. CenterPoint Energy became the new holding company for the regulated operations of the former Reliant Energy, Incorporated in August 2002. With more than 11,000 employees, CenterPoint Energy and its predecessor companies have been in business for more than 130 years. For more information, visit our Web site at www.centerpointenergy.com. ***** This news release includes forward-looking statements. Actual events and results may differ materially from those projected. Factors that could affect actual results include the timing and impact of future regulatory and legislative decisions, effects of competition, weather variations, changes in CenterPoint Energy's business plans, financial market conditions, ability to raise needed capital and other factors discussed in the company's filings with the Securities and Exchange Commission. - # # # -
CenterPoint Energy, Inc. and Subsidiaries Statements of Consolidated Income (Thousands of Dollars) (Unaudited) Quarter Ended September 30, Nine Months Ended September 30, ------------------------------------------- ------------------------------------------ 2002 2001 2002 2001 ------------------- -------------------- -------------------- ------------------- Revenues: Electric Operations $ - $ 1,608,014 $ - $ 4,520,553 Electric Transmission & Distribution 660,342 - 1,756,744 - Electric Generation 526,388 - 1,265,683 - Natural Gas Distribution 680,917 607,905 2,657,512 3,819,225 Pipelines and Gathering 87,448 91,605 281,799 317,685 Other Operations 6,940 23,198 15,767 76,033 Eliminations (39,163) (30,654) (171,939) (85,180) ------------------ ------------------- -------------------- ------------------- Total 1,922,872 2,300,068 5,805,566 8,648,316 ------------------ ------------------- -------------------- ------------------- Expenses: Fuel and cost of gas sold 813,197 832,798 2,718,872 4,288,686 Purchased power 34,955 229,109 87,906 1,005,426 Operation and maintenance 388,375 444,674 1,155,011 1,311,201 Taxes other than income taxes 94,734 142,424 312,872 415,636 Depreciation and amortization 160,473 216,277 460,675 531,792 ------------------ ------------------- -------------------- ------------------- Total 1,491,734 1,865,282 4,735,336 7,552,741 ------------------ ------------------- -------------------- ------------------- Operating Income 431,138 434,786 1,070,230 1,095,575 ------------------ ------------------- -------------------- ------------------- Other (Expense) Income: Loss on AOL Time Warner investment (82,189) (512,447) (530,000) (44,464) Gain on indexed debt securities 86,622 503,077 508,578 38,845 Interest (170,234) (141,266) (427,870) (422,374) Distribution on trust preferred securities (13,898) (13,900) (41,647) (41,699) Other - net 3,220 11,382 22,305 44,328 ------------------ ------------------- -------------------- ------------------- Total (176,479) (153,154) (468,634) (425,364) ------------------ ------------------- -------------------- ------------------- Income from Continuing Operations Before Income Taxes and Cumulative Effect of Accounting Change 254,659 281,632 601,596 670,211 Income Tax Expense 93,208 98,562 207,345 242,714 ------------------ ------------------- -------------------- ------------------- Income from Continuing Operations Before Cumulative Effect of Accounting Change $ 161,451 $ 183,070 $ 394,251 $ 427,497 ================== =================== ==================== =================== Reference is made to the Notes to the Consolidated Financial Statements contained in the Amended Annual Report on Form 10-K/A of Reliant Energy, Incorporated.
CenterPoint Energy, Inc. and Subsidiaries Selected Data From Statements of Consolidated Income (Thousands of Dollars, Except Per Share Amounts) (Unaudited) Quarter Ended Nine Months Ended September 30, September 30, ------------------------------- ----------------------------- 2002 2001 2002 2001 ------------- ---------- --------- ---------- Basic Earnings Per Common Share - Continuing Operations Income from continuing operations before cumulative effect of accounting change $ 0.54 $ 0.63 $ 1.32 $ 1.48 Diluted Earnings Per Common Share - Continuing Operations Income from continuing operations before cumulative effect of accounting change $ 0.54 $ 0.63 $ 1.32 $ 1.46 Dividends per Common Share $ 0.160 $ 0.375 $ 0.910 $ 1.125 Weighted Average Common Shares Outstanding (000): - Basic 298,794 290,318 297,580 289,143 - Diluted 299,629 292,212 298,608 291,832 EBIT BY SEGMENT Electric Operations $ - $ 454,722 $ - $1,007,769 Electric Transmission & Distribution 406,727 - 942,679 - Electric Generation 7,146 - (70,828) - Natural Gas Distribution (506) (20,291) 123,722 76,139 Pipelines and Gathering 43,164 34,507 122,229 106,957 Other Operations (8,303) (26,307) (30,304) (45,088) Eliminations/other (9,437) (5,833) (16,385) (11,493) ------------- --------- ---------- ---------- Total $ 438,791 $ 436,798 $1,071,113 $1,134,284 ============= ========= ========== ========== Reference is made to the Notes to the Consolidated Financial Statements contained in the Amended Annual Report on Form 10-K/A of Reliant Energy, Incorporated.
CenterPoint Energy, Inc. and Subsidiaries Results of Operations by Segment (Millions of Dollars) (Unaudited) ELECTRIC TRANSMISSION & ELECTRIC ELECTRIC DISTRIBUTION GENERATION ELIMINATION TOTAL OPERATIONS -------------------------------------------------------- ------------- ----------- Quarter Ended September 30, ---------------------------------------------------------------------- % Diff 2002 2001 Fav/(Unfav) -------------------------------------------------------- ------------- ----------- RESULTS OF OPERATIONS: Operating Revenues: Operating revenues $ 420 $ 526 $ - $ 946 $ 1,608 (41%) ECOM true-up 240 - - 240 - - -------------- ------------- ------------- ------------- ------------- Total Revenues 660 526 - 1,186 1,608 (26%) -------------- ------------- ------------- ------------- ------------- Operating Expenses: Fuel and purchased power - 372 - 372 634 41% Operation and maintenance 130 98 - 228 255 11% Depreciation and amortization 75 39 - 114 161 29% Taxes other than income 56 10 - 66 115 43% -------------- ------------- ------------- ------------- ------------- Total 261 519 - 780 1,165 33% -------------- ------------- ------------- ------------- ------------- Operating Income 399 7 - 406 443 (8%) Non-operating Income 8 - - 8 12 (33%) -------------- ------------- ------------- ------------- ------------- Earnings Before Interest and Taxes $ 407 $ 7 $ - $ 414 $ 455 (9%) ============== ============= ============= ============= ============= ELECTRIC TRANSMISSION & ELECTRIC ELECTRIC DISTRIBUTION GENERATION ELIMINATION TOTAL OPERATIONS -------------------------------------------------------- ------------- ----------- Nine Months Ended September 30, ---------------------------------------------------------------------- % Diff 2002 2001 Fav/(Unfav) -------------------------------------------------------- ------------- ----------- RESULTS OF OPERATIONS: Operating Revenues: Operating revenues $ 1,206 $ 1,266 $ (56) $ 2,416 $ 4,521 (47%) ECOM true-up 551 - - 551 - - -------------- ------------- ------------- ------------- ------------- Total Revenues 1,757 1,266 (56) 2,967 4,521 (34%) -------------- ------------- ------------- ------------- ------------- Operating Expenses: Fuel and purchased power 56 901 (56) 901 2,132 58% Operation and maintenance 401 272 - 673 736 9% Depreciation and amortization 204 118 - 322 369 13% Taxes other than income 168 49 - 217 313 31% -------------- ------------- ------------- ------------- ------------- Total 829 1,340 (56) 2,113 3,550 40% -------------- ------------- ------------- ------------- ------------- Operating Income (Loss) 928 (74) - 854 971 (12%) Non-operating Income 15 3 - 18 37 (51%) -------------- ------------- ------------- ------------- ------------- Earnings (Loss) Before Interest and Taxes $ 943 $ (71) $ - $ 872 $ 1,008 (13%) ============== ============= ============= ============= ============= ELECTRIC OPERATIONS OPERATING DATA: Quarter Ended September 30, Nine Months Ended September 30, ---------------------------- ------------------------------- ACTUAL MWH DELIVERED 2002 2001 2002 2001 -------------- ------------- ------------- ------------- Residential 7,966,132 7,709,623 3% 18,735,392 17,445,248 7% Commercial 5,147,531 5,232,239 (2%) 13,911,310 13,740,945 1% Industrial 7,766,084 7,908,002 (2%) 20,535,812 23,853,399 (14%) Other 36,856 99,475 (63%) 116,227 776,851 (85%) -------------- ------------- ------------- ------------- Total 20,916,603 20,949,339 - 53,298,741 55,816,443 (5%) ============== ============= ============= ============= WEATHER (AVERAGE FOR SERVICE AREA): Percentage of normal: Cooling degree days 98% 96% 2% 102% 99% 3% Heating degree days - - - 99% 106% (7%) AVERAGE NUMBER OF METERED CUSTOMERS: Residential 1,549,909 1,523,521 2% 1,540,302 1,514,680 2% Commercial 214,858 208,535 3% 211,413 206,598 2% Industrial 1,822 1,773 3% 1,832 1,760 4% Other - 22 (100%) 2 26 (92%) -------------- ------------- ------------- ------------- Total 1,766,589 1,733,851 2% 1,753,549 1,723,064 2% ============== ============= ============= ============= PHYSICAL ELECTRIC GENERATION POWER SALES (MWH) 15,475,590 N/A 41,922,693 N/A Reference is made to the Notes to the Consolidated Financial Statements contained in the Amended Annual Report on Form 10-K/A of Reliant Energy, Incorporated.
CenterPoint Energy, Inc. and Subsidiaries Results of Operations by Segment (Millions of Dollars) (Unaudited) NATURAL GAS DISTRIBUTION ------------------------------------------------------------------------------------ Quarter Ended September 30, Nine Months Ended September 30, ---------------------------- % Diff ------------------------------- % Diff 2002 2001 Fav/(Unfav) 2002 2001 Fav/(Unfav) ---------------------------- ----------- ---------------------------- ------------ RESULTS OF OPERATIONS: Operating Revenues $ 681 $ 608 12% $ 2,658 $ 3,819 (30%) Operating Expenses: Natural gas 509 437 (16%) 1,997 3,139 36% Operation and maintenance 125 139 10% 381 420 9% Depreciation and amortization 32 37 14% 94 110 15% Taxes other than income 19 20 5% 72 88 18% ------------- ------------- -------------- ------------- Total 685 633 (8%) 2,544 3,757 32% ------------- ------------- -------------- ------------- Operating Income (Loss) (4) (25) 84% 114 62 84% Non-operating Income 4 5 (20%) 10 14 (29%) ------------- ------------- -------------- ------------- Earnings (Loss) Before Interest and Taxes $ - $ (20) - $ 124 $ 76 63% ============= ============= ============== ============= NATURAL GAS DISTRIBUTION OPERATING DATA: THROUGHPUT DATA IN BCF Residential and Commercial 35 36 (3%) 216 225 (4%) Industrial Sales 9 13 (31%) 33 36 (8%) Transportation 14 10 40% 42 36 17% Retail 130 100 30% 346 339 2% ------------- ------------- -------------- ------------- Total Throughput 188 159 18% 637 636 - ============= ============= ============== ============= WEATHER (AVERAGE FOR SERVICE AREA) Percentage of normal: Heating degree days 68% 99% (31%) 99% 103% (4%) AVERAGE NUMBER OF CUSTOMERS: Residential 2,695,432 2,651,984 2% 2,713,793 2,679,646 1% Commercial and Industrial Sales 244,631 241,442 1% 249,013 245,446 1% ------------- ------------- -------------- ------------- Total 2,940,063 2,893,426 2% 2,962,806 2,925,092 1% ============= ============= ============== ============= PIPELINES AND GATHERING ----------------------------------------------------------------------------------- Quarter Ended September 30, Nine Months Ended September 30, ---------------------------- % Diff ------------------------------- % Diff 2002 2001 Fav/(Unfav) 2002 2001 Fav/(Unfav) ---------------------------- ----------- ----------------------------- ----------- RESULTS OF OPERATIONS: Operating Revenues $ 88 $ 92 (4%) $ 282 $ 318 (11%) Operating Expenses: Natural gas 3 7 57% 20 65 69% Operation and maintenance 27 31 13% 99 90 (10%) Depreciation and amortization 11 15 27% 31 44 30% Taxes other than income 4 5 20% 13 13 - ------------- ------------- -------------- ------------- Total 45 58 22% 163 212 23% ------------- ------------- -------------- ------------- Operating Income 43 34 26% 119 106 12% Non-operating Income - - - 3 1 200% ------------- ------------- -------------- ------------- Earnings Before Interest and Taxes $ 43 $ 34 26% $ 122 $ 107 14% ============= ============= ============== ============= PIPELINES AND GATHERING OPERATING DATA: THROUGHPUT DATA IN BCF Natural Gas Sales 1 2 (50%) 12 11 9% Transportation 192 174 10% 633 613 3% Gathering 72 76 (5%) 213 223 (4%) Elimination (1) (1) - (2) (2) - ------------- ------------- -------------- ------------- Total Throughput 264 251 5% 856 845 1% ============= ============= ============== ============= Reference is made to the Notes to the Consolidated Financial Statements contained in the Amended Annual Report on Form 10-K/A of Reliant Energy, Incorporated.
CenterPoint Energy, Inc. and Subsidiaries Results of Operations by Segment (Millions of Dollars) (Unaudited) OTHER OPERATIONS ------------------------------------------------------------------------------------ Quarter Ended September 30, Nine Months Ended September 30, ---------------------------- % Diff ------------------------------ % Diff 2002 2001 Fav/(Unfav) 2002 2001 Fav/(Unfav) ---------------------------- --------- ---------------------------- ----------- RESULTS OF OPERATIONS: Operating Revenues $ 7 $ 23 (70%) $ 16 $ 76 (79%) Operating Expenses 21 40 48% 32 119 73% -------------- ------------- ------------- ------------- Operating Loss (14) (17) 18% (16) (43) 63% Non-operating Income (Expense) 6 (9) 167% (14) (2) (600%) -------------- ------------- ------------- ------------- Loss Before Interest and Taxes $ (8) $ (26) 69% $ (30) $ (45) 33% ============== ============= ============= ============= Reference is made to the Notes to the Consolidated Financial Statements contained in the Amended Annual Report on Form 10-K/A of Reliant Energy, Incorporated.