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): FEBRUARY 12, 2004
------------------------------
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 AND REGULATION FD DISCLOSURE.
ANNOUNCEMENT OF FOURTH QUARTER AND FULL YEAR 2003 RESULTS
On February 12, 2004, CenterPoint Energy, Inc. ("CenterPoint Energy")
reported fourth quarter and full year 2003 earnings. For additional information
regarding CenterPoint Energy's fourth quarter and full year 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 and (ii) 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 February 12, 2004 regarding CenterPoint
Energy's fourth quarter and full year 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: February 12, 2004 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 February 12, 2004 regarding CenterPoint
Energy's fourth quarter and full year 2003 earnings
EXHIBIT 99.1
For more information contact
MEDIA:
LETICIA LOWE
[CENTERPOINT ENERGY LOGO] Phone 713.207.7702
INVESTORS:
MARIANNE PAULSEN
Phone 713.207.6500
FOR IMMEDIATE RELEASE
Page 1 of 6
- --------------------------------------------------------------------------------
CENTERPOINT ENERGY REPORTS STRONG FULL YEAR AND
FOURTH QUARTER 2003 EARNINGS
HOUSTON, TX - FEBRUARY 12, 2004 - CenterPoint Energy, Inc. (NYSE: CNP)
today reported income from continuing operations of $149 million, or $0.48 per
diluted share, for the fourth quarter of 2003 compared to a loss of $24 million,
or $0.08 per diluted share, for the fourth quarter of 2002. The company reported
$496 million, or $1.62 per diluted share, of income from continuing operations
before cumulative effect of accounting change for 2003, compared to $369
million, or $1.23 per diluted share, for the prior year.
The company's net income for the fourth quarter 2003 was $147 million, or
$0.48 per diluted share, compared to a net loss of $63 million, or $0.21 per
diluted share for the fourth quarter of 2002. Net income for 2003 was $560
million, or $1.83 per diluted share compared to a net loss of $3.9 billion, or
$13.08 per diluted share, for 2002. In 2003, net income included a gain of $80
million relating to the implementation of SFAS No. 143, "Accounting for Asset
Retirement Obligations", and a $16 million loss from discontinued operations
primarily related to the sale of the company's energy management services
business. The loss in 2002 included $4.3 billion related primarily to the
write-down of the company's investment in Reliant Resources, Inc. (RRI) in
conjunction with the company's distribution of that investment to CenterPoint
Energy shareholders in September 2002.
"I'm pleased to report improved operating results, which reflect the
continued solid 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. "Our
enhanced financial flexibility and liquidity, together with the improvements
made in our core businesses this past year, have created a solid foundation for
the future. This upcoming year will be key to us as we seek a buyer for our 81
percent interest in Texas Genco and complete the final steps in the regulatory
process which determines the amount of stranded investment associated with our
generating units to be recovered."
- more -
For more information contact
MEDIA:
LETICIA LOWE
[CENTERPOINT ENERGY LOGO] Phone 713.207.7702
INVESTORS:
MARIANNE PAULSEN
Phone 713.207.6500
FOR IMMEDIATE RELEASE
Page 2 of 6
- --------------------------------------------------------------------------------
FULL YEAR AND FOURTH QUARTER 2003 HIGHLIGHTS
The company's operating performance for 2003 compared to 2002 benefited from:
o improved operating income from Texas Genco of $355 million,
including $123 million for the fourth quarter
o continued customer growth, with the addition of over 85,000 metered
electric and gas customers
o increased revenues from rate increases in the natural gas
distribution businesses of $33 million, including $3 million for the
fourth quarter
The company's results for 2003 compared to 2002 were negatively impacted
by:
o an increase in interest expense of $170 million; however, interest
expense decreased by $59 million in the fourth quarter due primarily
to lower amortization of financing expenses
o higher pension and insurance expenses of $59 million, including $4
million in the fourth quarter
o a reduction in Excess Cost Over Market (ECOM) of $36 million;
however, ECOM increased $60 million in the fourth quarter
In 2003, CenterPoint Energy enhanced its financial flexibility and
liquidity by:
o accessing the capital markets for transactions totaling
approximately $4 billion
o reducing the company's bank credit facility by $1.5 billion
o restructuring the remaining $2.35 billion credit facility, thereby
extending the maturity to October 2006, lowering the interest rate
by 100-150 basis points and otherwise obtaining more favorable terms
Additional significant events for CenterPoint Energy during 2003 included:
o the distribution of approximately 19 percent of the Texas Genco
common stock to its shareholders in January 2003 in preparation for
its stranded investment determination in 2004
o the completion of the sales of certain non-strategic businesses,
including all of its remaining international interests and its
energy management services business
- more -
For more information contact
MEDIA:
LETICIA LOWE
[CENTERPOINT ENERGY LOGO] Phone 713.207.7702
INVESTORS:
MARIANNE PAULSEN
Phone 713.207.6500
FOR IMMEDIATE RELEASE
Page 3 of 6
- --------------------------------------------------------------------------------
OPERATING INCOME BY SEGMENT DETAILED
ELECTRIC TRANSMISSION & DISTRIBUTION
The electric transmission & distribution segment generated operating
income of $284 million in the fourth quarter of 2003, consisting of $78 million
for the regulated electric transmission & distribution utility (TDU) and
non-cash operating income of $206 million associated with ECOM, as described
below. For the fourth quarter of 2002 operating income was $169 million,
consisting of $23 million from the TDU and non-cash operating income of $146
million associated with ECOM.
Revenues for the TDU continued to benefit from solid customer growth in
the fourth quarter of 2003. The quarter also benefited from lower operation and
maintenance expenses, including a favorable settlement of the company's
transmission cost lawsuit and lower spending for materials and supplies, as well
as severance costs incurred in the fourth quarter of 2002, which did not recur
in the fourth quarter of 2003. In addition, the fourth quarter of 2002 reflected
a $22 million charge associated with the settlement of issues in a fuel
reconciliation proceeding.
Under the Texas electric restructuring law, a regulated utility may
recover, in its 2004 stranded cost true-up proceeding, the difference between
the market prices received in 2002 and 2003 by its affiliated power generation
company in the Public Utility Commission of Texas (PUC) mandated auctions and
the projections for the same time periods used in the ECOM model established by
the PUC. Beginning in 2004, there will no longer be an ECOM contribution to
earnings.
Operating income was $1.1 billion for the year, consisting of $446 million
for the TDU and non-cash operating income of $661 million from ECOM. The
transmission & distribution segment's operating income in 2002 was $1.1 billion,
consisting of $399 million from the TDU and non-cash operating income of $697
million from ECOM. The $47 million increase in operating income for the TDU was
driven by continued strong customer growth. At the end of 2003, the TDU served
1.84 million metered customers, an increase of 47,000, or 2.6 percent. Although
pension costs were higher, operation and maintenance expenses declined as a
result of the benefit of the transmission lawsuit settlement and severance costs
noted above, and costs related to the transition to the deregulated market in
2002 which did not recur in 2003. In addition, 2002 reflected the fuel
reconciliation settlement noted above.
- more -
For more information contact
MEDIA:
LETICIA LOWE
[CENTERPOINT ENERGY LOGO] Phone 713.207.7702
INVESTORS:
MARIANNE PAULSEN
Phone 713.207.6500
FOR IMMEDIATE RELEASE
Page 4 of 6
- --------------------------------------------------------------------------------
ELECTRIC GENERATION
Texas Genco reported operating income of $64 million for the fourth
quarter of 2003, compared to an operating loss of $59 million for the same
period of 2002. Capacity and other revenues were bolstered by increased prices
for its baseload products due primarily to strong wholesale electricity prices
and revenues from the sales of surplus air emission allowances ($10 million).
Energy revenues also increased and more than offset increased fuel and purchased
power costs. Operation and maintenance expenses for the fourth quarter of 2003
were lower than the prior year primarily related to expenses incurred in the
fourth quarter of 2002 which did not recur in the fourth quarter of 2003, the
most significant of which was an early retirement program. Taxes other than
income taxes increased in the fourth quarter of 2003 compared to the same period
of 2002 due primarily to higher property taxes in 2003 and to reduced state
franchise taxes in the fourth quarter of 2002.
Operating income for Texas Genco was $222 million for 2003, compared to an
operating loss of $133 million for 2002. Consistent with the fourth quarter,
revenues increased due to higher capacity revenue for baseload products, the
sales of surplus air emission allowances ($16 million) and higher energy revenue
which more than offset higher fuel and purchased power costs. Operation and
maintenance expenses increased due to higher pension expenses, as well as higher
costs associated with planned and several unplanned unit outages. These
increases were partially offset by expenses incurred in the fourth quarter of
2002 which did not recur in 2003, as noted above.
NATURAL GAS DISTRIBUTION
The natural gas distribution segment reported operating income of $56
million for the fourth quarter of 2003, compared to $84 million for the same
period of 2002. The reduction in operating income in the quarter resulted from a
change in the estimate of margins earned on unbilled revenues, as well as from
milder weather and reduced consumption. Lower operation and maintenance expenses
partially mitigated these impacts on operating income.
The natural gas distribution segment reported operating income of $202
million for 2003 compared to $198 million for 2002. Rate increases and customer
growth of 38,000 contributed to revenue increases, which more than offset higher
operation and maintenance expenses attributable primarily to higher pension and
bad debt expense, as well as the change in estimate noted above.
In addition, the costs associated with a receivables facility, modified in
November 2002, reduced operating income by $7 million for 2003. Prior to the
amendment, these costs were included in interest expense.
- more -
For more information contact
MEDIA:
LETICIA LOWE
[CENTERPOINT ENERGY LOGO] Phone 713.207.7702
INVESTORS:
MARIANNE PAULSEN
Phone 713.207.6500
FOR IMMEDIATE RELEASE
Page 5 of 6
- --------------------------------------------------------------------------------
PIPELINES AND GATHERING
The pipelines and gathering segment reported operating income of $34
million for the fourth quarter of 2003 compared to $35 million for the same
period of 2002. The slight decline results primarily from increased operation
and maintenance expenses.
The pipelines and gathering segment reported operating income of $158
million for 2003 compared to $153 million for 2002. The improvement in operating
income resulted primarily from an increase in throughput and enhanced services
related to gas gathering operations.
OTHER OPERATIONS
The company's other operations reported an operating loss of $3 million
for the fourth quarter of 2003 compared to operating income of $32 million for
the same period of 2002. Operating income was $2 million for 2003 compared to
$19 million for 2002. The changes for both the quarter and the year relate
primarily to timing differences in the assignment of corporate costs to the
business segments.
WEBCAST OF EARNINGS CONFERENCE CALL
CenterPoint Energy's management will host an earnings conference call on
Thursday, Feb. 12, 2004, 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 Thursday, Feb. 12, 2004, 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 -
For more information contact
MEDIA:
LETICIA LOWE
[CENTERPOINT ENERGY LOGO] Phone 713.207.7702
INVESTORS:
MARIANNE PAULSEN
Phone 713.207.6500
FOR IMMEDIATE RELEASE
Page 6 of 6
- --------------------------------------------------------------------------------
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, of
which nearly 3,000 megawatts are currently in mothball status. The company
serves nearly five million metered customers primarily in Arkansas, Louisiana,
Minnesota, Mississippi, Oklahoma, and Texas. Assets total approximately $20
billion. 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 the Web site at www.CenterPointEnergy.com.
*****
This news release includes forward-looking statements. Actual events and
results may differ materially from those projected. The statements in this news
release regarding future financial performance and results of operations and
other statements that are not historical facts are forward-looking statements.
Factors that could affect actual results include the timing and 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 September 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 December 31, Twelve Months Ended December 31,
---------------------------- ----------------------------
2003 2002 2003 2002
----------- ----------- ----------- -----------
Revenues:
Electric Transmission & Distribution $ 541,624 $ 464,874 $ 2,124,237 $ 2,221,618
Electric Generation 407,907 275,292 2,002,368 1,540,975
Natural Gas Distribution 1,522,584 1,302,753 5,435,303 3,960,265
Pipelines and Gathering 87,043 92,570 406,950 374,369
Other Operations 4,831 9,285 30,698 29,971
Eliminations (45,151) (39,302) (239,432) (229,126)
----------- ----------- ----------- -----------
Total 2,518,838 2,105,472 9,760,124 7,898,072
----------- ----------- ----------- -----------
Expenses:
Fuel and cost of gas sold 1,393,794 1,168,117 5,367,398 3,883,416
Purchased power 17,282 6,625 72,509 93,841
Operation and maintenance 431,228 440,823 1,629,361 1,586,774
Depreciation and amortization 154,787 154,732 624,581 614,348
Taxes other than income taxes 86,446 74,891 375,193 386,741
----------- ----------- ----------- -----------
Total 2,083,537 1,845,188 8,069,042 6,565,120
----------- ----------- ----------- -----------
Operating Income 435,301 260,284 1,691,082 1,332,952
----------- ----------- ----------- -----------
Other Income (Expense) :
Gain (loss) on Time Warner investment 62,323 30,296 105,820 (499,704)
Gain (loss) on indexed debt securities (57,963) (28,551) (96,473) 480,027
Interest (235,325) (280,841) (906,023) (708,711)
Distribution on trust preferred securities -- (13,898) (27,797) (55,545)
Other - net 14,341 437 15,708 18,359
----------- ----------- ----------- -----------
Total (216,624) (292,557) (908,765) (765,574)
----------- ----------- ----------- -----------
Income (Loss) from Continuing Operations Before
Income Taxes, Minority Interest and
Cumulative Effect of Accounting Change 218,677 (32,273) 782,317 567,378
Income Tax Benefit (Expense) (61,190) 8,208 (257,444) (198,540)
Minority Interest (8,838) (7) (28,753) (11)
----------- ----------- ----------- -----------
Income (Loss) from Continuing Operations Before
Cumulative Effect of Accounting Change 148,649 (24,072) 496,120 368,827
Discontinued Operations:
Income from Reliant Resources, net of tax -- -- -- 82,157
Income (loss) from Other Operations, net of tax (597) (1,106) (2,674) 246
Loss on disposal of Reliant Resources -- (37,812) -- (4,371,464)
Loss on disposal of Other Operations, net of tax (1,356) -- (13,442) --
----------- ----------- ----------- -----------
Total (1,953) (38,918) (16,116) (4,289,061)
----------- ----------- ----------- -----------
Cumulative Effect of Accounting Change, net of
minority interest and tax -- -- 80,072 --
----------- ----------- ----------- -----------
Net Income (Loss) Attributable to Common Shareholders $ 146,696 $ (62,990) $ 560,076 $(3,920,234)
=========== =========== =========== ===========
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
November 7, 2003.
CenterPoint Energy, Inc. and Subsidiaries
Selected Data From Statements of Consolidated Operations
(Thousands of Dollars, Except Per Share Amounts)
(Unaudited)
Quarter Ended Twelve Months Ended
December 31, December 31,
---------------------------- ------------------------------
2003 2002 2003 2002
----------- ----------- ------------- -----------
Basic Earnings Per Common Share:
Income (Loss) from Continuing Operations before
Cumulative Effect of Accounting Change $ 0.49 $ (0.08) $ 1.63 $ 1.24
Discontinued Operations:
Income from Reliant Resources, net of tax -- -- -- 0.27
Income (Loss) from Other Operations, net of tax -- -- (0.01) --
Loss on Disposal of Reliant Resources -- (0.13) -- (14.67)
Loss on Disposal of Other Operations, net of tax (0.01) -- (0.04) --
Cumulative Effect of Accounting Change, net of
minority interest and tax -- -- 0.26 --
----------- ----------- ------------- -----------
Net Income (Loss) Attributable to Common Shareholders $ 0.48 $ (0.21) $ 1.84 $ (13.16)
=========== =========== ============= ===========
Diluted Earnings Per Common Share:
Income (Loss) from Continuing Operations
before Cumulative Effect of Accounting Change $ 0.48 $ (0.08) $ 1.62 $ 1.23
Discontinued Operations:
Income from Reliant Resources, net of tax -- -- -- 0.27
Income (Loss) from Other Operations, net of tax -- -- (0.01) --
Loss on Disposal of Reliant Resources -- (0.13) -- (14.58)
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 $ 0.48 $ (0.21) $ 1.83 $ (13.08)
=========== =========== ============= ===========
Dividends Declared per Common Share $ 0.10 $ 0.16 $ 0.40 $ 1.07
Weighted Average Common Shares Outstanding (000):
- Basic 305,666 299,233 303,867 297,997
- Diluted 308,349 300,046 306,220 299,644
OPERATING INCOME (LOSS) BY SEGMENT
Electric Transmission & Distribution:
Transmission & Distribution Operations $ 77,883 $ 22,898 $ 446,036 $ 399,219
ECOM True-up 205,691 145,921 660,474 697,031
----------- ----------- ------------- -----------
Total Electric Transmission & Distribution 283,574 168,819 1,106,510 1,096,250
Electric Generation 64,485 (59,395) 221,959 (133,561)
Natural Gas Distribution 56,443 84,169 202,250 198,220
Pipelines and Gathering 34,189 34,523 158,460 153,275
Other Operations (3,390) 32,168 1,903 18,768
----------- ----------- ------------- -----------
Total $ 435,301 $ 260,284 $ 1,691,082 $ 1,332,952
=========== =========== ============= ===========
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
November 7, 2003.
CenterPoint Energy, Inc. and Subsidiaries
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
ELECTRIC TRANSMISSION & DISTRIBUTION
----------------------------------------------------------------------------------
Quarter Ended Twelve Months Ended
December 31, December 31,
-------------------------- % Diff --------------------------- % Diff
2003 2002 Fav/(Unfav) 2003 2002 Fav/(Unfav)
----------- ----------- ----------- ----------- ------------ -----------
RESULTS OF OPERATIONS:
Operating Revenues:
Electric revenues $ 336 $ 319 5% $ 1,463 $ 1,525 (4%)
ECOM true-up 206 146 41% 661 697 (5%)
----------- ----------- ----------- ------------
Total Revenues 542 465 17% 2,124 2,222 (4%)
----------- ----------- ----------- ------------
Operating Expenses:
Fuel and purchased power -- 10 100% -- 66 100%
Operation and maintenance 152 175 13% 549 576 5%
Depreciation and amortization 67 67 -- 270 271 --
Taxes other than income 39 44 11% 198 213 7%
----------- ----------- ----------- ------------
Total 258 296 13% 1,017 1,126 10%
----------- ----------- ----------- ------------
Operating Income $ 284 $ 169 68% $ 1,107 $ 1,096 1%
=========== =========== =========== ============
ELECTRIC TRANSMISSION & DISTRIBUTION Quarter Ended Twelve Months Ended
OPERATING DATA: December 31, December 31,
-------------------------- ---------------------------
ACTUAL MWH DELIVERED 2003 2002 2003 2002
----------- ----------- ----------- ------------
Residential 4,504,187 4,289,445 5% 23,686,937 23,024,837 3%
WEATHER (AVERAGE FOR SERVICE AREA):
Percentage of normal:
Cooling degree days 109% 82% 27% 103% 100% 3%
Heating degree days 86% 97% (11%) 101% 99% 2%
AVERAGE NUMBER OF METERED CUSTOMERS:
Residential 1,612,781 1,567,094 3% 1,594,177 1,547,000 3%
Commercial and Industrial 220,710 219,928 -- 220,965 214,916 3%
----------- ----------- ----------- ------------
Total 1,833,491 1,787,022 3% 1,815,142 1,761,916 3%
=========== =========== =========== ============
ELECTRIC GENERATION
-----------------------------------------------------------------------------------
Quarter Ended Twelve Months Ended
December 31, % Diff December 31, % Diff
-------------------------- ---------------------------
2003 2002 Fav/(Unfav) 2003 2002 Fav/(Unfav)
----------- ----------- ----------- ----------- ------------ -----------
RESULTS OF OPERATIONS:
Operating Revenues:
Energy revenues $ 215 $ 200 8% $ 1,221 $ 1,094 12%
Capacity and other revenues 193 75 157% 781 447 75%
----------- ----------- ----------- ------------
Total 408 275 48% 2,002 1,541 30%
----------- ----------- ----------- ------------
Operating Expenses:
Fuel and purchased power 192 182 (5%) 1,171 1,083 (8%)
Operation and maintenance 101 119 15% 411 391 (5%)
Depreciation and amortization 40 39 (3%) 159 157 (1%)
Taxes other than income 11 (6) (283%) 39 43 9%
----------- ----------- ----------- ------------
Total 344 334 (3%) 1,780 1,674 (6%)
----------- ----------- ----------- ------------
Operating Income (Loss) $ 64 $ (59) 208% $ 222 $ (133) 267%
=========== =========== =========== ============
ELECTRIC GENERATION POWER SALES (MWH) 11,047,141 9,539,888 16% 47,374,490 51,462,581 (8%)
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
November 7, 2003.
CenterPoint Energy, Inc. and Subsidiaries
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
NATURAL GAS DISTRIBUTION
-----------------------------------------------------------------------------
Quarter Ended Twelve Months Ended
December 31, December 31,
------------------------ % Diff ------------------------ % Diff
2003 2002 Fav/(Unfav) 2003 2002 Fav/(Unfav)
---------- ---------- ----------- ---------- ---------- -----------
RESULTS OF OPERATIONS:
Operating Revenues $ 1,522 $ 1,303 17% $ 5,435 $ 3,960 37%
---------- ---------- ---------- ----------
Operating Expenses:
Natural gas 1,260 999 (26%) 4,428 2,995 (48%)
Operation and maintenance 143 158 9% 560 539 (4%)
Depreciation and amortization 35 32 (9%) 136 126 (8%)
Taxes other than income 28 30 7% 109 102 (7%)
---------- ---------- ---------- ----------
Total 1,466 1,219 (20%) 5,233 3,762 (39%)
---------- ---------- ---------- ----------
Operating Income $ 56 $ 84 (33%) $ 202 $ 198 2%
========== ========== ========== ==========
NATURAL GAS DISTRIBUTION OPERATING DATA:
THROUGHPUT DATA IN BCF
Residential and Commercial 100 107 (7%) 324 324 --
Industrial 13 14 (7%) 49 47 4%
Transportation 14 15 (7%) 50 57 (12%)
Non-rate regulated commercial and industrial 146 125 17% 511 471 8%
---------- ---------- ---------- ----------
Total Throughput 273 261 5% 934 899 4%
========== ========== ========== ==========
WEATHER (AVERAGE FOR SERVICE AREA)
Percentage of normal:
Heating degree days 88% 102% (14%) 98% 100% (2%)
AVERAGE NUMBER OF CUSTOMERS:
Residential 2,772,088 2,735,261 1% 2,755,200 2,719,161 1%
Commercial and Industrial 251,845 248,413 1% 250,584 248,127 1%
---------- ---------- ---------- ----------
Total 3,023,933 2,983,674 1% 3,005,784 2,967,288 1%
========== ========== ========== ==========
PIPELINES AND GATHERING
----------------------------------------------------------------------
Quarter Ended Twelve Months Ended
December 31, December 31,
----------------- % Diff ------------------- % Diff
2003 2002 Fav/(Unfav) 2003 2002 Fav/(Unfav)
------- ------- ----------- ------- ------- -----------
RESULTS OF OPERATIONS:
Operating Revenues $ 87 $ 93 (6%) $ 407 $ 374 9%
Operating Expenses:
Natural gas -- 12 100% 61 32 (91%)
Operation and maintenance 38 32 (19%) 129 130 1%
Depreciation and amortization 9 10 10% 40 41 2%
Taxes other than income 6 4 (50%) 19 18 (6%)
------- ------- ------- -------
Total 53 58 9% 249 221 (13%)
------- ------- ------- -------
Operating Income $ 34 $ 35 (3%) $ 158 $ 153 3%
======= ======= ======= =======
PIPELINES AND GATHERING OPERATING DATA:
THROUGHPUT DATA IN BCF
Natural Gas Sales -- 2 (100%) 9 14 (36%)
Transportation 164 212 (23%) 794 845 (6%)
Gathering 73 74 (1%) 292 287 2%
Elimination -- (1) 100% (4) (9) 56%
------- ------- ------- -------
Total Throughput 237 287 (17%) 1,091 1,137 (4%)
======= ======= ======= =======
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
November 7, 2003.
CenterPoint Energy, Inc. and Subsidiaries
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
OTHER OPERATIONS
---------------------------------------------------------------------
Quarter Ended Twelve Months Ended
December 31, December 31,
------------------ % Diff ------------------- % Diff
2003 2002 Fav/(Unfav) 2003 2002 Fav/(Unfav)
------ ------ ----------- ------ ------ -----------
RESULTS OF OPERATIONS:
Operating Revenues $ 2 $ 9 (78%) $ 28 $ 30 (7%)
Operating Expenses 5 (23) (122%) 26 11 (136%)
------ ------ ------ ------
Operating Income (Loss) $ (3) $ 32 (109%) $ 2 $ 19 (89%)
====== ====== ====== ======
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
November 7, 2003.
