UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): OCTOBER 21, 2003
------------------------------
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
------------------------------
ITEM 5. OTHER EVENTS.
ANNOUNCEMENT OF THIRD QUARTER 2003 RESULTS
On October 21, 2003, CenterPoint Energy, Inc. ("CenterPoint Energy")
reported third quarter 2003 earnings. For additional information regarding
CenterPoint Energy's third quarter 2003 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 (i) the quotations therein from
CenterPoint Energy's president and chief executive officer, (ii) the information
therein under the caption "2003 Outlook" and (iii) the information therein in
the first two paragraphs under the caption "Webcast of Earnings Conference Call"
(collectively, the "Excluded Information"), is incorporated by reference herein.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
The following exhibit is filed herewith:
99.1 Press Release issued October 21, 2003 regarding CenterPoint
Energy's third quarter 2003 earnings.
ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
The information incorporated by reference in Item 5 of this report and
the Excluded Information is incorporated by reference herein. The Excluded
Information is being furnished, not filed, pursuant to Item 12. Accordingly, the
Excluded Information 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.
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 21, 2003 By: /s/ James S. Brian
--------------------------------
James S. Brian
Senior Vice President and
Chief Accounting Officer
EXHIBIT INDEX
EXHIBIT
NUMBER EXHIBIT DESCRIPTION
- ------- -------------------
99.1 Press Release issued October 21, 2003 regarding CenterPoint
Energy's third quarter 2003 earnings
(CENTERPOINT ENERGY LOGO)
For more information contact
MEDIA:
LETICIA LOWE
Phone 713.207.7702
INVESTORS:
MARLANNE PAULSEN
Phone 713.207.6500
FOR IMMEDIATE RELEASE Page 1 of 5
- --------------------------------------------------------------------------------
CENTERPOINT ENERGY REPORTS IMPROVED THIRD QUARTER 2003 RESULTS
COMPANY RAISES 2003 EPS ESTIMATE
HOUSTON - OCTOBER 21, 2003 - CenterPoint Energy, Inc. (NYSE: CNP) today
reported income from continuing operations of $183 million, or $0.60 per diluted
share for the quarter ended September 30, 2003. This compares to income from
continuing operations of $162 million, or $0.54 per diluted share for the third
quarter of 2002.
The company's net income for the third quarter of 2003 was $182
million, or $0.59 per diluted share, compared to a loss of $4.1 billion, or
$13.77 per diluted share, for the same period of 2002. During the third quarter
of 2002, the company recorded a loss from discontinued operations of $4.3
billion primarily related to the distribution of Reliant Resources, Inc. (RRI)
to CenterPoint Energy shareholders on September 30, 2002. RRI's historical
results are also reported as discontinued operations.
"I'm pleased to report improved operating results which reflect the
continued strong performance of our core operating units and the significant
contributions from Texas Genco and the ECOM true-up formula," said David
McClanahan, president and chief executive officer of CenterPoint Energy. "I'm
also pleased with the progress we continue to make operationally and in
executing our strategy.
"We have also further enhanced our financial flexibility and
liquidity," said McClanahan. "We continued to access the capital markets during
the third quarter, and so far this year we have raised over $3.5 billion. We
used these proceeds to repay maturing debt, refinance higher coupon debt, pay
down the company's bank facilities and enhance our liquidity."
For the nine months ended September 30, 2003, income from continuing
operations before cumulative effect of accounting change was $347 million, or
$1.14 per diluted share, compared to $393 million, or $1.32 per diluted share
for the same period of 2002.
Net income for the nine months ended September 30, 2003 was $413
million, or $1.35 per diluted share compared to a loss of $3.9 billion, or
$12.92 per diluted share for the first nine months of 2002. During the first
nine months of 2003, the company recorded a gain of $80 million relating to the
implementation of SFAS No. 143, "Accounting for Asset Retirement Obligations"
and a $14 million loss from discontinued operations primarily related to the
company's planned sale of its energy management services business. The first
nine months of 2002 included a loss from discontinued operations of $4.3 billion
primarily related the distribution of RRI stock to shareholders.
- more -
(CENTERPOINT ENERGY LOGO)
For more information contact
MEDIA:
LETICIA LOWE
Phone 713.207.7702
INVESTORS:
MARLANNE PAULSEN
Phone 713.207.6500
FOR IMMEDIATE RELEASE Page 2 of 5
- --------------------------------------------------------------------------------
2003 OUTLOOK
Based on the year-to-date results of the company's core operating units, the
significant contributions from Texas Genco and the ECOM true-up formula, and
expectations of solid performance for the balance of the year, CenterPoint
Energy raised its 2003 guidance for earnings from continuing operations to
$1.30-$1.40 per diluted share from its prior guidance of $0.85 - $1.00 per
diluted share.
THIRD QUARTER HIGHLIGHTS
The company's operating performance and cash flow for the third quarter of 2003
compared to the same period of 2002 were affected by:
o improved operating income of $118 million from our 81 percent-owned
subsidiary, Texas Genco Holdings, Inc. (NYSE:TGN), partially offset by
an $18 million reduction in ECOM
o continued customer growth with the addition of nearly 90,000 metered
electric and gas customers since September of 2002, or an annualized 2
percent growth
o an increase in revenues of $6 million from rate increases in the
natural gas distribution operations
o an increase in interest expense of $53 million
o higher pension, employee benefit and insurance costs of $23 million
o a reduction in capital expenditures of $22 million
Significant events since the second quarter include:
o raising $500 million in the capital markets and using the proceeds to
reduce the company's bank credit facility to $2.35 billion
o replacing the company's $2.35 billion bank credit facility with a new,
lower-cost 3-year facility, composed of a $1.425 billion bank revolver
and a $925 million term loan from institutional investors
OPERATING INCOME BY SEGMENT DETAILED
ELECTRIC TRANSMISSION & DISTRIBUTION
The electric transmission & distribution segment reported operating
income of $383 million in the third quarter of 2003 consisting of $161 million
for the regulated electric transmission & distribution utility and non-cash
operating income of $222 million associated with generation-related regulatory
assets, or Excess Cost Over Market (ECOM), as described below. For the third
quarter of 2002, operating income was $399 million, consisting of $159 million
from the regulated electric transmission & distribution utility and non-cash
operating income of $240 million associated with ECOM.
- more -
(CENTERPOINT ENERGY LOGO)
For more information contact
MEDIA:
LETICIA LOWE
Phone 713.207.7702
INVESTORS:
MARLANNE PAULSEN
Phone 713.207.6500
FOR IMMEDIATE RELEASE Page 3 of 5
- --------------------------------------------------------------------------------
The regulated electric transmission & distribution utility continues to
benefit from solid customer growth. Revenues increased from the addition of over
50,000 metered customers since September 2002. Operating expenses increased from
the comparable period of 2002 as higher pension and employee benefit expenses
were partially offset by the absence of certain non-recurring expenses related
to the transition to the deregulated market in 2002.
Under the Texas electric restructuring law, a regulated utility may
recover, in its 2004 stranded cost true-up proceeding, the difference between
market prices received by its affiliated power generation company in the Texas
Public Utility Commission (PUC) mandated auctions and the prices used in the
ECOM model established by the PUC. During 2002 and 2003, this difference,
referred to as ECOM, produces non-cash income and is recorded as a regulatory
asset. Beginning in 2004, this ECOM calculation no longer applies. The reduction
in ECOM of $18 million from 2002 to 2003 resulted primarily from an increase in
capacity auction prices at Texas Genco.
Operating income for the nine months ended September 30, 2003 was $823
million, consisting of $368 million from the regulated electric transmission &
distribution utility and non-cash operating income of $455 million from ECOM.
This compares to $927 million for the same period of 2002 consisting of $376
million from the regulated electric transmission & distribution utility and
non-cash operating income of $551 million from ECOM.
ELECTRIC GENERATION
Texas Genco owns over 14,000 MW of electric generation in Texas and
sells capacity, energy, and ancillary services in the Texas electric market,
primarily through capacity auctions. It reported operating income of $125
million for the third quarter of 2003 compared to operating income of $7 million
for the same period of 2002.
Wholesale electricity prices were much higher in 2003 due to
substantially higher natural gas prices which led to increased capacity auction
revenues for Texas Genco's baseload products. Energy revenues also increased,
which more than offset an increase in fuel costs. Operation and maintenance
expenses increased by $2 million due to higher pension and employee benefit
expenses and costs associated with unplanned outages at Unit 1 of the South
Texas Project nuclear facility and at Unit 8 of the W. A. Parish coal plant,
which were partially offset by a reduction in technical support costs. Both
units were returned to full service during the quarter. Texas Genco estimated
that the added cost of replacement energy associated with the unplanned outages
negatively impacted gross margin by approximately $35 million for the quarter.
Texas Genco also indicated that some level of unplanned outages can be expected
in the business.
Operating income for the nine months ended September 30, 2003 was $158
million, compared to an operating loss of $74 million for the same period of
2002.
- more -
(CENTERPOINT ENERGY LOGO)
For more information contact
MEDIA:
LETICIA LOWE
Phone 713.207.7702
INVESTORS:
MARLANNE PAULSEN
Phone 713.207.6500
FOR IMMEDIATE RELEASE Page 4 of 5
- --------------------------------------------------------------------------------
NATURAL GAS DISTRIBUTION
The natural gas distribution segment reported an operating loss of $5
million for the third quarter of 2003 compared to the prior year's third quarter
operating loss of $4 million. Due to seasonal impacts, operating results for the
third quarter are typically the weakest of the year.
Continued customer growth and higher revenues from rate increases
implemented in 2002 did not completely offset higher expenses primarily related
to increased pension and employee benefit expenses, depreciation and other
taxes. In addition, the costs associated with a receivables facility, which was
modified in November 2002, reduced operating income by $2 million, whereas prior
to the amendment, these costs were included in interest expense.
Operating income for the nine months ended September 30, 2003 was $146
million, compared to $114 million for the same period of 2002.
PIPELINES AND GATHERING
The pipelines and gathering segment reported operating income of $39
million in the third quarter of 2003 compared to $43 million for the same period
of 2002. The decline was primarily related to higher pension, employee benefit
and other miscellaneous expenses.
Operating income for the nine months ended September 30, 2003 was $124
million, compared to $119 million for the same period of 2002.
Other Operations
The company's other operations reported operating income for the third
quarter of 2003 of $7 million compared to an operating loss of $14 million for
the same period of 2002. Operating income for the nine months ended September
30, 2003 was $5 million, compared to an operating loss of $13 million for the
same period of 2002.
WEBCAST OF EARNINGS CONFERENCE CALL
CenterPoint Energy's management will host an earnings conference call
on Tuesday Oct. 21, 2003, at 10:30 a.m. Central time. Interested parties may
listen to a live, audio broadcast of the conference call at
www.CenterPointEnergy.com/investors/events. A replay of the call can be accessed
approximately two hours after the completion of the call, and will be archived
on the web site for at least one year.
The management of Texas Genco, the company's 81 percent-owned
subsidiary, will host an earnings conference call on Tuesday Oct. 21, 2003, at 9
a.m. Central time. Interested parties may listen to a live, audio broadcast of
the conference call at www.txgenco.com/investor.html. A replay of the call can
be accessed approximately two hours after the completion of the call, and will
be archived on the web site for at least one year.
- more -
(CENTERPOINT ENERGY LOGO)
For more information contact
MEDIA:
LETICIA LOWE
Phone 713.207.7702
INVESTORS:
MARLANNE PAULSEN
Phone 713.207.6500
FOR IMMEDIATE RELEASE Page 5 of 5
- --------------------------------------------------------------------------------
CenterPoint Energy, Inc., headquartered in Houston, Texas, is a
domestic energy delivery company that includes electric transmission &
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 metered customers primarily in
Arkansas, Louisiana, Minnesota, Mississippi, Missouri, Oklahoma, and Texas.
Assets total approximately $20 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.
*****
This news release includes forward-looking statements. Actual events
and results may differ materially from those projected. The statements in this
news release regarding future financial performance and results of operations
and other statements that are not historical facts are forward-looking
statements. Factors that could affect actual results include the timing and
impact of future regulatory and legislative decisions, effects of competition,
weather variations, changes in CenterPoint Energy's or its subsidiaries'
business plans, financial market conditions, the timing and extent of changes in
commodity prices, particularly natural gas, the impact of unplanned facility
outages and other factors discussed in CenterPoint Energy's and its
subsidiaries' Form 10-Qs for the quarterly period ended June 30, 2003 and other
filings with the Securities and Exchange Commission.
-###-
CenterPoint Energy, Inc. and Subsidiaries
Statements of Consolidated Operations
(Thousands of Dollars)
(Unaudited)
Quarter Ended Nine Months Ended
September 30, September 30,
-------------------------- --------------------------
2003 2002 2003 2002
----------- ----------- ----------- -----------
Revenues:
Electric Transmission & Distribution $ 653,438 $ 660,342 $ 1,582,613 $ 1,756,744
Electric Generation 657,363 526,388 1,594,461 1,265,683
Natural Gas Distribution 897,392 680,917 3,912,719 2,657,512
Pipelines and Gathering 89,083 87,448 319,907 281,799
Other Operations 7,615 6,740 25,867 20,686
Eliminations (54,673) (45,048) (194,281) (189,824)
----------- ----------- ----------- -----------
Total 2,250,218 1,916,787 7,241,286 5,792,600
----------- ----------- ----------- -----------
Expenses:
Fuel and cost of gas sold 1,033,601 810,679 3,973,604 2,715,299
Purchased power 20,259 34,592 55,227 87,216
Operation and maintenance 392,172 385,484 1,198,133 1,145,951
Depreciation and amortization 160,250 160,136 469,794 459,616
Taxes other than income taxes 95,212 94,565 288,747 311,850
----------- ----------- ----------- -----------
Total 1,701,494 1,485,456 5,985,505 4,719,932
----------- ----------- ----------- -----------
Operating Income 548,724 431,331 1,255,781 1,072,668
----------- ----------- ----------- -----------
Other Income (Expense) :
Gain (loss) on AOL Time Warner investment (21,207) (82,189) 43,497 (530,000)
Gain (loss) on indexed debt securities 17,040 86,622 (38,510) 508,578
Interest (236,957) (170,270) (676,038) (427,870)
Distribution on trust preferred securities -- (13,898) (27,797) (41,647)
Other - net 1,919 3,134 6,707 17,922
----------- ----------- ----------- -----------
Total (239,205) (176,601) (692,141) (473,017)
----------- ----------- ----------- -----------
Income from Continuing Operations Before Income Taxes, Minority Interest
and Cumulative Effect of Accounting Change 309,519 254,730 563,640 599,651
Income Tax Expense (110,799) (92,835) (196,254) (206,748)
Minority Interest (15,686) (8) (19,915) (4)
----------- ----------- ----------- -----------
Income from Continuing Operations Before Cumulative Effect of
Accounting Change 183,034 161,887 347,471 392,899
Discontinued Operations:
Income from Reliant Resources, net of tax -- 47,708 -- 82,157
Income (loss) from Other Operations, net of tax (1,212) (436) (2,077) 1,352
Loss on disposal of Reliant Resources -- (4,333,652) -- (4,333,652)
Loss on disposal of Other Operations, net of tax (97) -- (12,086) --
----------- ----------- ----------- -----------
Total (1,309) (4,286,380) (14,163) (4,250,143)
----------- ----------- ----------- -----------
Cumulative Effect of Accounting Change, net of minority interest and tax -- -- 80,072 --
----------- ----------- ----------- -----------
Net Income (Loss) Attributable to Common Shareholders $ 181,725 $(4,124,493) $ 413,380 $(3,857,244)
=========== =========== =========== ===========
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Current Report on Form 8-K of
CenterPoint Energy, Inc. dated May 12, 2003.
CenterPoint Energy, Inc. and Subsidiaries
Selected Data From Statements of Consolidated Operations
(Thousands of Dollars, Except Per Share Amounts)
(Unaudited)
Quarter Ended Nine Months Ended
September 30, September 30,
---------------------------- -------------------------------
2003 2002 2003 2002
------------ ------------ ------------ ------------
Basic Earnings Per Common Share:
Income from Continuing Operations before Cumulative Effect
of Accounting Change $ 0.60 $ 0.54 $ 1.15 $ 1.32
Discontinued Operations:
Income from Reliant Resources, net of tax -- 0.16 -- 0.28
Income (Loss) from Other Operations, net of tax -- -- (0.01) --
Loss on Disposal of Reliant Resources -- (14.50) -- (14.56)
Loss on Disposal of Other Operations, net of tax -- -- (0.04) --
Cumulative Effect of Accounting Change, net of minority
interest and tax -- -- 0.26 --
------------ ------------ ------------ ------------
Net Income (Loss) Attributable to Common Shareholders $ 0.60 $ (13.80) $ 1.36 $ (12.96)
============ ============ ============ ============
Diluted Earnings Per Common Share:
Income from Continuing Operations before Cumulative Effect
of Accounting Change $ 0.60 $ 0.54 $ 1.14 $ 1.32
Discontinued Operations:
Income from Reliant Resources, net of tax -- 0.16 -- 0.27
Income (Loss) from Other Operations, net of tax (0.01) -- (0.01) --
Loss on Disposal of Reliant Resources -- (14.47) -- (14.51)
Loss on Disposal of Other Operations, net of tax -- -- (0.04) --
Cumulative Effect of Accounting Change, net of minority interest
and tax -- -- 0.26 --
------------ ------------ ------------ ------------
Net Income (Loss) Attributable to Common Shareholders $ 0.59 $ (13.77) $ 1.35 $ (12.92)
============ ============ ============ ============
Dividends Declared per Common Share $ --(1) $ 0.16 $ 0.30(1) $ 0.91
Weighted Average Common Shares Outstanding (000):
- - Basic 305,007 298,794 303,261 297,580
- - Diluted 307,345 299,629 305,415 298,608
OPERATING INCOME (LOSS) BY SEGMENT
Electric Transmission & Distribution:
Transmission & Distribution Operations $ 161,199 $ 158,723 $ 368,153 $ 376,321
ECOM True-up 221,502 240,325 454,783 551,110
------------ ------------ ------------ ------------
Total Electric Transmission & Distribution 382,701 399,048 822,936 927,431
Electric Generation 124,546 6,712 157,474 (74,166)
Natural Gas Distribution (4,705) (3,644) 145,807 114,051
Pipelines and Gathering 39,022 42,826 124,271 118,752
Other Operations 7,160 (13,611) 5,293 (13,400)
------------ ------------ ------------ ------------
Total $ 548,724 $ 431,331 $ 1,255,781 $ 1,072,668
============ ============ ============ ============
(1) The third quarter dividend of $0.10 per share was declared on June 18, 2003
and was paid on September 10, 2003.
Reference is made to the Notes to the Consolidated Financial
Statements contained in the Current Report on Form 8-K of CenterPoint
Energy, Inc. dated May 12, 2003.
CenterPoint Energy, Inc. and Subsidiaries
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
ELECTRIC TRANSMISSION & DISTRIBUTION
---------------------------------------------------------------------------------------------
Quarter Ended September 30, Nine Months Ended September 30,
--------------------------- % Diff ------------------------------- % Diff
2003 2002 Fav/(Unfav) 2003 2002 Fav/(Unfav)
----------- ----------- ----------- ----------- ----------- -----------
RESULTS OF OPERATIONS:
Operating Revenues:
Electric revenues $ 432 $ 420 3% $ 1,128 $ 1,206 (6%)
ECOM true-up 222 240 (8%) 455 551 (17%)
----------- ----------- ----------- -----------
Total Revenues 654 660 (1%) 1,583 1,757 (10%)
----------- ----------- ----------- -----------
Operating Expenses:
Fuel and purchased power -- -- -- -- 56 100%
Operation and maintenance 139 130 (7%) 398 401 1%
Depreciation and amortization 70 75 7% 203 204 --
Taxes other than income 62 56 (11%) 159 169 6%
----------- ----------- ----------- -----------
Total 271 261 (4%) 760 830 8%
----------- ----------- ----------- -----------
Operating Income $ 383 $ 399 (4%) $ 823 $ 927 (11%)
=========== =========== =========== ===========
ELECTRIC TRANSMISSION & Quarter Ended September 30, Nine Months Ended September 30,
DISTRIBUTION OPERATING DATA: ---------------------------- -------------------------------
2003 2002 2003 2002
----------- ----------- ----------- -----------
ACTUAL MWH DELIVERED
Residential 8,134,198 7,966,132 2% 19,182,750 18,735,392 2%
WEATHER (AVERAGE FOR SERVICE AREA):
Percentage of normal:
Cooling degree days 96% 98% (2%) 102% 102% --
Heating degree days n/a n/a n/a 111% 99% 12%
AVERAGE NUMBER OF METERED CUSTOMERS:
Residential 1,600,998 1,549,909 3% 1,587,976 1,540,302 3%
Commercial and Industrial 220,420 216,680 2% 221,049 213,245 4%
----------- ----------- ---------- ----------
Total 1,821,418 1,766,589 3% 1,809,025 1,753,547 3%
=========== =========== ========== ==========
ELECTRIC GENERATION
--------------------------------------------------------------------------------------------
Quarter Ended September 30, Nine Months Ended September 30,
---------------------------- % Diff ------------ ------------ % Diff
2003 2002 Fav/(Unfav) 2003 2002 Fav/(Unfav)
------------ ------------ ------------ ------------ ------------ ------------
RESULTS OF OPERATIONS:
Operating Revenues:
Energy revenues $ 404 $ 346 17% $ 1,006 $ 894 13%
Capacity and other revenues 253 180 41% 588 372 58%
------------ ------------ ------------ ------------
Total 657 526 25% 1,594 1,266 26%
------------ ------------ ------------ ------------
Operating Expenses:
Fuel and purchased power 386 372 (4%) 978 901 (9%)
Operation and maintenance 100 98 (2%) 311 272 (14%)
Depreciation and amortization 41 39 (5%) 119 118 (1%)
Taxes other than income 5 10 50% 28 49 43%
------------ ------------ ------------ ------------
Total 532 519 (3%) 1,436 1,340 (7%)
------------ ------------ ------------ ------------
Operating Income (Loss) $ 125 $ 7 -- $ 158 $ (74) 314%
============ ============ ============ ============
PHYSICAL ELECTRIC GENERATION
POWER SALES (MWH) 14,533,513 15,475,590 (6%) 36,327,349 41,922,693 (13%)
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Current Report on Form 8-K of
CenterPoint Energy, Inc. dated May 12, 2003.
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
2003 2002 Fav/(Unfav) 2003 2002 Fav/(Unfav)
----------- ----------- ----------- ----------- ----------- -----------
RESULTS OF OPERATIONS:
Operating Revenues $ 897 $ 681 32% $ 3,913 $ 2,658 47%
----------- ----------- ----------- -----------
Operating Expenses:
Natural gas 713 509 (40%) 3,168 1,997 (59%)
Operation and maintenance 133 125 (6%) 417 381 (9%)
Depreciation and amortization 34 32 (6%) 101 94 (7%)
Taxes other than income 22 19 (16%) 81 72 (13%)
----------- ----------- ----------- -----------
Total 902 685 (32%) 3,767 2,544 (48%)
----------- ----------- ----------- -----------
Operating Income (Loss) $ (5) $ (4) (25%) $ 146 $ 114 28%
=========== =========== =========== ===========
NATURAL GAS DISTRIBUTION OPERATING
DATA:
THROUGHPUT DATA IN BCF
Residential and Commercial 32 35 (9%) 224 216 4%
Industrial 12 9 33% 36 33 9%
Transportation 10 14 (29%) 36 42 (14%)
Non-rate regulated commercial and
industrial 120 130 (8%) 365 346 5%
----------- ----------- ----------- -----------
Total Throughput 174 188 (7%) 661 637 4%
=========== =========== =========== ===========
WEATHER (AVERAGE FOR SERVICE AREA)
Percentage of normal:
Heating degree days 101% 68% 33% 104% 99% 5%
AVERAGE NUMBER OF CUSTOMERS:
Residential 2,732,165 2,695,432 1% 2,749,571 2,713,793 1%
Commercial and Industrial 247,770 244,631 1% 250,170 249,013 --
----------- ----------- ----------- -----------
Total 2,979,935 2,940,063 1% 2,999,741 2,962,806 1%
=========== =========== =========== ===========
PIPELINES AND GATHERING
--------------------------------------------------------------------------------------------
Quarter Ended September 30, Nine Months Ended September 30,
--------------------------- % Diff ------------------------------- % Diff
2003 2002 Fav/(Unfav) 2003 2002 Fav/(Unfav)
------------ ------------ ------------ ------------ ------------- ------------
RESULTS OF OPERATIONS:
Operating Revenues $ 89 $ 88 1% $ 320 $ 282 13%
------------ ------------ ------------ -------------
Operating Expenses:
Natural gas 5 3 (67%) 62 20 (210%)
Operation and maintenance 31 27 (15%) 90 99 9%
Depreciation and amortization 10 11 9% 31 31 --
Taxes other than income 4 4 -- 13 13 --
------------ ------------ ------------ -------------
Total 50 45 (11%) 196 163 (20%)
------------ ------------ ------------ -------------
Operating Income $ 39 $ 43 (9%) $ 124 $ 119 4%
============ ============ ============ =============
PIPELINES AND GATHERING OPERATING
DATA:
THROUGHPUT DATA IN BCF
Natural Gas Sales 1 1 -- 9 12 (25%)
Transportation 159 192 (17%) 630 633 --
Gathering 73 72 1% 219 213 3%
Elimination -- (1) 100% (4) (2) (100%)
------------ ------------ ------------ -------------
Total Throughput 233 264 (12%) 854 856 --
============ ============ ============ =============
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Current Report on Form 8-K of
CenterPoint Energy, Inc. dated May 12, 2003.
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
2003 2002 Fav/(Unfav) 2003 2002 Fav/(Unfav)
------------ ------------ ------------ ------------ ------------ ------------
RESULTS OF OPERATIONS:
Operating Revenues $ 8 $ 7 14% $ 26 $ 21 24%
Operating Expenses 1 21 95% 21 34 38%
------------ ------------ ------------ ------------
Operating Income (Loss) $ 7 $ (14) 150% $ 5 $ (13) 138%
============ ============ ============ ============
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Current Report on Form 8-K of
CenterPoint Energy, Inc. dated May 12, 2003.
