HOUSTON, Feb. 25 /PRNewswire-FirstCall/ -- CenterPoint Energy, Inc.
(NYSE: CNP) today reported net income of $87 million, or $0.25 per
diluted share, for the fourth quarter of 2008 compared to $108
million, or $0.32 per diluted share, for the same period of 2007.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020930/CNPLOGO) Net
income for the year 2008 was $447 million, or $1.30 per diluted
share, compared to $399 million, or $1.17 per diluted share, for
2007. "I am pleased with the overall financial results that we are
reporting today," said David M. McClanahan, president and chief
executive officer of CenterPoint Energy. "Our interstate pipelines
and field services businesses turned in record performances, and
our electric and natural gas utilities reported solid results.
Although we expect 2009 to be a more challenging year, we continue
to benefit from the stability of our regulated utility operations
and from the high levels of activity in a number of the producing
areas served by our pipelines and field services businesses."
OPERATING INCOME BY SEGMENT Electric Transmission &
Distribution The electric transmission & distribution segment
reported operating income of $88 million for the fourth quarter of
2008, consisting of $55 million from the regulated electric
transmission & distribution utility operations (TDU) and $33
million related to transition bonds. Operating income for the
fourth quarter of 2007 was $104 million, consisting of $65 million
from the TDU, $29 million related to transition bonds, and $10
million from the competition transition charge (CTC). In February
2008, the company monetized the remaining true-up balance resulting
in the discontinuance of the CTC. Operating income for the TDU
declined primarily due to higher transmission costs billed to the
company from other transmission providers. Operating income for the
year 2008 was $545 million, consisting of $407 million from the
TDU, $133 million related to transition bonds, and $5 million from
the CTC. Operating income for 2007 was $561 million, consisting of
$400 million from the TDU, $119 million related to transition
bonds, and $42 million from the CTC. Operating income for the TDU
increased as a result of customer growth of nearly 31,000 customers
since December 2007, increased usage, in part due to favorable
weather, proceeds from a land sale, and a refund of prior years'
state franchise taxes. These positive impacts were partially offset
by higher transmission costs and other operating expenses, and the
impacts from Hurricane Ike. Operating income for 2007 included a
$17 million favorable settlement related to the final fuel
reconciliation of the formerly integrated electric utility. As a
result of revisions to the Texas State Franchise Tax Law, the Texas
margin tax, which was reported as operating expense prior to 2008,
is now being reported as income tax and does not impact operating
income. Natural Gas Distribution The natural gas distribution
segment reported operating income of $96 million for the fourth
quarter of 2008 compared to $89 million for the same period of
2007. Operating income benefited from continued customer growth of
nearly 25,000 since December 2007 and lower employee-related
expenses. Operating income for the year 2008 was $215 million
compared to $218 million for 2007. Operating income for 2008
declined primarily due to reduced usage and higher expenses,
partially offset by rate increases and customer growth. Interstate
Pipelines The interstate pipelines segment reported operating
income of $66 million for the fourth quarter of 2008 compared to
$71 million for the same period of 2007. Higher income from the
Carthage to Perryville pipeline and increased transportation
services was offset by reduced ancillary services and higher
operation and maintenance expenses. Operating income for the fourth
quarter of 2007 included favorable settlements of certain state tax
issues and a write-off of project development costs. Operating
income for the year 2008 was $293 million compared to $237 million
for 2007. Higher income from the Carthage to Perryville pipeline
and increased transportation and ancillary services was partially
offset by higher operation and maintenance expenses. Operating
income for 2008 included an $18 million gain from the sale of two
storage development projects and a $7 million write-down associated
with pipeline assets removed from service. Operating income for
2007 included $8 million from the favorable settlement of certain
state tax issues. In addition to operating income, this business
had equity income of $36 million for 2008 and $6 million for 2007,
including $33 million for 2008 and $6 million for 2007 of
pre-operating allowance for funds used during construction from its
50 percent interest in the Southeast Supply Header, a new pipeline
that went into service in September 2008. Field Services The field
services segment reported operating income of $26 million for the
fourth quarter of 2008 compared to $24 million for the same period
of 2007. Operating income increased primarily from higher
throughput and increased ancillary services, partially offset by
lower commodity prices and higher operation and maintenance
expenses. In addition to operating income, this business had equity
income of $3 million in each of the fourth quarters of 2008 and
2007 from its 50 percent interest in a gas processing plant.
Operating income for the year 2008 was $147 million compared to $99
million for 2007. Operating income increased primarily from higher
throughput, increased ancillary services and higher commodity
prices, partially offset by higher operation and maintenance
expenses. Operating income for 2008 also included $17 million
associated with the sale of non-strategic assets and the settlement
of a contractual dispute, and a gain of $7 million associated with
system imbalances. Equity income from the jointly-owned gas
processing plant was $15 million for 2008 compared to $10 million
for 2007. Competitive Natural Gas Sales and Services The
competitive natural gas sales and services segment reported
operating income of $26 million for the fourth quarter of 2008
compared to $19 million for the same period of 2007. Operating
income increased due to more favorable locational and seasonal
price differentials, which were partially offset by higher
operating expenses. Operating income for the fourth quarter of 2008
included a $6 million write-down of natural gas inventory to the
lower of average cost or market. Operating income for the fourth
quarter of 2007 included gains of $2 million resulting from
mark-to-market accounting for derivatives used to lock in economic
margins of certain forward natural gas sales. Operating income for
the year 2008 was $62 million compared to $75 million for 2007.
Operating income declined due to lower gains on sales of gas from
inventory and higher operating expenses, partially offset by more
favorable locational and seasonal price differentials. Operating
income for 2008 included inventory write-downs of $30 million
compared to inventory write-downs of $11 million for 2007.
Operating income for 2008 included gains of $13 million resulting
from mark-to-market accounting compared to mark-to-market charges
of $10 million for 2007. DIVIDEND DECLARATION On January 22, 2009,
CenterPoint Energy's board of directors declared a regular
quarterly cash dividend of $0.19 per share of common stock payable
on March 10, 2009, to shareholders of record as of the close of
business on February 16, 2009. This represents more than a four
percent increase over the $0.1825 per common share quarterly
dividends paid by the company in 2008. OUTLOOK FOR 2009 CenterPoint
Energy expects diluted earnings per share for 2009 to be in the
range of $1.05 to $1.15. This guidance takes into consideration an
estimated increase in non-cash pension expense of $0.16 per diluted
share. Additionally, the guidance takes into consideration various
economic and operational assumptions related to the business
segments in which the company operates. The company has made
certain assumptions regarding the timing and cost of certain
financing activities and the impact to earnings of various
regulatory proceedings, including recovery of costs associated with
Hurricane Ike. The company cannot predict the ultimate outcome of
any of those proceedings. In providing this guidance, the company
has not projected the impact of any changes in accounting
standards, any impact from acquisitions or divestitures, the timing
effects of mark-to-market or inventory accounting in our
competitive natural gas sales and services business, or the outcome
of the TDU's true-up appeal. FILING OF FORM 10-K FOR CENTERPOINT
ENERGY, INC. Today, CenterPoint Energy, Inc. filed with the
Securities and Exchange Commission (SEC) its Annual Report on Form
10-K for the fiscal year ended December 31, 2008. A copy of that
report is available on the company's Web site,
http://www.centerpointenergy.com/, under the Investors section.
Other filings the company makes at 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,
February 25, 2009, 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 at http://www.centerpointenergy.com/. 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. 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 over $19
billion. With about 8,800 employees, CenterPoint Energy and its
predecessor companies have been in business for more than 130
years. For more information, visit the Web site at
http://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 outcome of appeals from the true-up
proceedings, the timing and impact of future regulatory,
legislative, and IRS 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 Form 10-K for the period ended December 31,
2008, and other filings with the SEC. CenterPoint Energy, Inc. and
Subsidiaries Statements of Consolidated Income (Millions of
Dollars) (Unaudited) Quarter Ended Year Ended December 31, December
31, ------------ ------------ 2007 2008 2007 2008 ---- ---- ----
---- Revenues: Electric Transmission & Distribution $438 $445
$1,837 $1,916 Natural Gas Distribution 1,158 1,250 3,759 4,226
Competitive Natural Gas Sales and Services 864 896 3,579 4,528
Interstate Pipelines 152 182 500 650 Field Services 50 61 175 252
Other Operations 2 3 10 11 Eliminations (62) (63) (237) (261) ---
--- ---- ---- Total 2,602 2,774 9,623 11,322 ----- ----- -----
------ Expenses: Natural gas 1,646 1,791 5,995 7,466 Operation and
maintenance 409 424 1,440 1,502 Depreciation and amortization 156
168 631 708 Taxes other than income taxes 88 88 372 373 -- -- ---
--- Total 2,299 2,471 8,438 10,049 ----- ----- ----- ------
Operating Income 303 303 1,185 1,273 --- --- ----- ----- Other
Income (Expense) : Loss on Time Warner investment (40) (66) (114)
(139) Gain on indexed debt securities 41 62 111 128 Interest and
other finance charges (135) (122) (503) (466) Interest on
transition bonds (30) (34) (123) (136) Distribution from AOL Time
Warner litigation settlement - - 32 - Additional distribution to
ZENS holders - - (27) - Equity in earnings of unconsolidated
affiliates 6 5 16 51 Other - net 4 4 17 14 - - -- -- Total (154)
(151) (591) (548) ---- ---- ---- ---- Income Before Income Taxes
149 152 594 725 Income Tax Expense (41) (65) (195) (278) --- ---
---- ---- Net Income $108 $87 $399 $447 ==== === ==== ====
Reference is made to the Notes to the Consolidated Financial
Statements contained in the Annual Report on Form 10-K 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) Quarter
Year Ended Ended December 31, December 31, -------------
------------- 2007 2008 2007 2008 ---- ---- ---- ---- Basic
Earnings Per Common Share $0.34 $0.25 $1.25 $1.33 ===== ===== =====
===== Diluted Earnings Per Common Share $0.32 $0.25 $1.17 $1.30
===== ===== ===== ===== Dividends Declared per Common Share $0.17
$0.1825 $0.68 $0.73 Weighted Average Common Shares Outstanding
(000): - Basic 321,695 344,536 320,480 336,387 - Diluted 342,841
346,839 342,507 343,555 Operating Income (Loss) by Segment
---------------------------------- Electric Transmission &
Distribution: Electric Transmission and Distribution Operations $65
$55 $400 $407 Competition Transition Charge 10 - 42 5 -- - -- -
Total Electric Transmission and Distribution Utility 75 55 442 412
Transition Bond Companies 29 33 119 133 -- -- --- --- Total
Electric Transmission & Distribution 104 88 561 545 Natural Gas
Distribution 89 96 218 215 Competitive Natural Gas Sales and
Services 19 26 75 62 Interstate Pipelines 71 66 237 293 Field
Services 24 26 99 147 Other Operations (4) 1 (5) 11 -- - -- --
Total $303 $303 $1,185 $1,273 ==== ==== ====== ====== Reference is
made to the Notes to the Consolidated Financial Statements
contained in the Annual Report on Form 10-K of CenterPoint Energy,
Inc. CenterPoint Energy, Inc. and Subsidiaries Results of
Operations by Segment (Millions of Dollars) (Unaudited) Electric
Transmission & Distribution
------------------------------------ Quarter Ended Year Ended
December 31, December 31, -------------- % Diff ----------- % Diff
Fav/ Fav/ 2007 2008 (Unfav) 2007 2008 (Unfav) ---- ---- -------
---- ---- ------- Results of Operations: Revenues: Electric
transmission and distribution utility $373 $373 - $1,560 $1,593 2%
Transition bond companies 65 72 11% 277 323 17% -- -- --- --- Total
438 445 2% 1,837 1,916 4% --- --- ----- ----- Expenses: Operation
and maintenance 185 201 (9%) 652 703 (8%) Depreciation and
amortization 61 69 (13%) 243 277 (14%) Taxes other than income
taxes 52 48 8% 223 201 10% Transition bond companies 36 39 (8%) 158
190 (20%) -- -- --- --- Total 334 357 (7%) 1,276 1,371 (7%) --- ---
----- ----- Operating Income $104 $88 (15%) $561 $545 (3%) ==== ===
==== ==== Operating Income: Electric transmission and distribution
operations $65 $55 (15%) $400 $407 2% Competition transition charge
10 - - 42 5 (88%) Transition bond companies 29 33 14% 119 133 12%
-- -- --- --- Total Segment Operating Income $104 $88 (15%) $561
$545 (3%) ==== === ==== ==== Electric Transmission &
Distribution Operating Data: Actual MWH Delivered Residential
4,939,054 4,635,129 (6%) 23,999,085 24,258,254 1% Total 17,729,923
16,316,691 (8%) 76,290,615 74,839,972 (2%) Weather (average for
service area): Percentage of 10- year average: Cooling degree days
140% 88% (52%) 104% 102% (2%) Heating degree days 76% 88% 12% 98%
92% (6%) Number of metered customers -end of period: Residential
1,793,600 1,821,267 2% 1,793,600 1,821,267 2% Total 2,034,074
2,064,854 2% 2,034,074 2,064,854 2% Natural Gas Distribution
--------------------------------------------- Quarter Ended Year
Ended December 31, December 31, -------------- % Diff ----------- %
Diff Fav/ Fav/ 2007 2008 (Unfav) 2007 2008 (Unfav) ---- ----
------- ---- ---- ------- Results of Operations: Revenues $1,158
$1,250 8% $3,759 $4,226 12% Expenses: Natural gas 838 928 (11%)
2,683 3,124 (16%) Operation and maintenance 158 153 3% 579 589 (2%)
Depreciation and amortization 41 39 5% 155 157 (1%) Taxes other
than income taxes 32 34 (6%) 124 141 (14%) Total 1,069 1,154 (8%)
3,541 4,011 (13%) Operating Income $89 $96 8% $218 $215 (1%)
Natural Gas Distribution Operating Data: Throughput data in BCF
Residential 53 58 9% 172 175 2% Commercial and Industrial 65 65 -
232 236 2% Total Throughput 118 123 4% 404 411 2% Weather (average
for service area) Percentage of 10-year average: Heating degree
days 93% 102% 9% 96% 104% 8% Number of customers - end of period:
Residential 2,961,110 2,987,222 1% 2,961,110 2,987,222 1%
Commercial and Industrial 249,877 248,476 (1%) 249,877 248,476 (1%)
Total 3,210,987 3,235,698 1% 3,210,987 3,235,698 1% Reference is
made to the Notes to the Consolidated Financial Statements
contained in the Annual Report on Form 10-K of CenterPoint Energy,
Inc. CenterPoint Energy, Inc. and Subsidiaries Results of
Operations by Segment (Millions of Dollars) (Unaudited) Competitive
Natural Gas Sales and Services
------------------------------------------ Quarter Ended Year Ended
December 31, December 31, ----------- % Diff ------------- % Diff
Fav/ Fav/ 2007 2008 (Unfav) 2007 2008 (Unfav) ---- ---- -------
---- ---- ------- Results of Operations: Revenues $864 $896 4%
$3,579 $4,528 27% ---- ---- ------ ------ Expenses: Natural gas 836
856 (2%) 3,467 4,423 (28%) Operation and maintenance 8 13 (63%) 31
39 (26%) Depreciation and amortization 1 1 - 5 3 40% Taxes other
than income taxes - - - 1 1 - - - - - Total 845 870 (3%) 3,504
4,466 (27%) --- --- ----- ----- Operating Income $19 $26 37% $75
$62 (17%) === === === === Competitive Natural Gas Sales and
Services Operating Data: Throughput data in BCF 130 136 5% 522 528
1% === === === === Number of customers - end of period 7,139 9,771
37% 7,139 9,771 37% ===== ===== ===== ===== Interstate Pipelines
------------------------------------ Quarter Ended Year Ended
December 31, December 31, ----------- % Diff ------------- % Diff
Fav/ Fav/ 2007 2008 (Unfav) 2007 2008 (Unfav) ---- ---- -------
---- ---- ------- Results of Operations: Revenues $152 $182 20%
$500 $650 30% ---- ---- ---- ---- Expenses: Natural gas 28 58
(107%) 83 155 (87%) Operation and maintenance 40 40 - 125 133 (6%)
Depreciation and amortization 12 12 - 44 46 (5%) Taxes other than
income taxes 1 6 (500%) 11 23 (109%) - - -- -- Total 81 116 (43%)
263 357 (36%) -- --- --- --- Operating Income $71 $66 (7%) $237
$293 24% === === ==== ==== Pipelines Operating Data: Throughput
data in BCF Transportation 336 393 17% 1,216 1,538 26% === ===
===== ===== Reference is made to the Notes to the Consolidated
Financial Statements contained in the Annual Report on Form 10-K of
CenterPoint Energy, Inc. CenterPoint Energy, Inc. and Subsidiaries
Results of Operations by Segment (Millions of Dollars) (Unaudited)
Field Services ---------------------------------- Quarter Ended
Year Ended December 31, December 31, --------- % Diff ------------
% Diff Fav/ Fav/ 2007 2008 (Unfav) 2007 2008 (Unfav) ---- ----
------- ---- ---- ------- Results of Operations: Revenues $50 $61
22% $175 $252 44% --- --- ---- ---- Expenses: Natural gas 5 10
(100%) (4) 21 (625%) Operation and maintenance 17 21 (24%) 66 69
(5%) Depreciation and amortization 3 3 - 11 12 (9%) Taxes other
than income taxes 1 1 - 3 3 - - - - - Total 26 35 (35%) 76 105
(38%) -- -- -- --- Operating Income $24 $26 8% $99 $147 48% === ===
=== ==== Field Services Operating Data: Throughput data in BCF
Gathering 102 110 8% 398 421 6% === === === === Other Operations
------------------------------ Quarter Ended Year Ended December
31, December 31, ---------- % Diff ---------- % Diff 2007 2008
Fav/(Unfav) 2007 2008 Fav/(Unfav) ---- ---- ----------- ---- ----
----------- Results of Operations: Revenues $2 $3 50% $10 $11 10%
Expenses 6 2 67% 15 - - - - -- - Operating Income (Loss) $(4) $1
125% $(5) $11 320% === == === === Capital Expenditures by Segment
(Millions of Dollars) (Unaudited) ----------------------- Quarter
Ended Year Ended December 31, December 31, -------------
------------ 2007 2008 2007 2008 ---- ---- ---- ---- Capital
Expenditures by Segment Electric Transmission & Distribution
$97 $80 $401 $336 Hurricane Ike - 4 - 145 - - - --- Total Electric
Transmission & Distribution 97 84 401 481 Natural Gas
Distribution 56 63 191 214 Competitive Natural Gas Sales and
Services 2 5 7 8 Interstate Pipelines 55 59 308 189 Field Services
19 45 74 122 Other Operations 8 21 30 39 - -- -- -- Total $237 $277
$1,011 $1,053 ==== ==== ====== ====== Interest Expense Detail
(Millions of Dollars) (Unaudited) ----------------------- Quarter
Ended Year Ended December 31, December 31, -------------
------------ 2007 2008 2007 2008 ---- ---- ---- ---- Interest
Expense Detail Amortization of Deferred Financing Cost $20 $7 $62
$25 Capitalization of Interest Cost (3) (2) (21) (12) Transition
Bond Interest Expense 30 34 123 136 Other Interest Expense 118 117
462 453 --- --- --- --- Total Interest Expense $165 $156 $626 $602
==== ==== ==== ==== Reference is made to the Notes to the
Consolidated Financial Statements contained in the Annual Report on
Form 10-K of CenterPoint Energy, Inc. CenterPoint Energy, Inc. and
Subsidiaries Condensed Consolidated Balance Sheets (Millions of
Dollars) (Unaudited) December 31, December 31, 2007 2008 ---- ----
ASSETS Current Assets: Cash and cash equivalents $129 $167 Other
current assets 2,659 2,868 ----- ----- Total current assets 2,788
3,035 ----- ----- Property, Plant and Equipment, net 9,740 10,296
----- ------ Other Assets: Goodwill 1,696 1,696 Regulatory assets
2,993 3,684 Other non-current assets 655 965 --- --- Total other
assets 5,344 6,345 ----- ----- Total Assets $17,872 $19,676 =======
======= LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities:
Short-term borrowings $232 $153 Current portion of transition bond
long-term debt 159 208 Current portion of other long-term debt
1,156 125 Other current liabilities 2,244 2,362 ----- ----- Total
current liabilities 3,791 2,848 ----- ----- Other Liabilities:
Accumulated deferred income taxes, net and investment tax credit
2,266 2,633 Regulatory liabilities 828 821 Other non-current
liabilities 813 1,156 --- ----- Total other liabilities 3,907 4,610
----- ----- Long-term Debt: Transition bond 2,101 2,381 Other 6,263
7,800 ----- ----- Total long-term debt 8,364 10,181 ----- ------
Shareholders' Equity 1,810 2,037 ----- ----- Total Liabilities and
Shareholders' Equity $17,872 $19,676 ======= ======= Reference is
made to the Notes to the Consolidated Financial Statements
contained in the Annual Report on Form 10-K of CenterPoint Energy,
Inc. CenterPoint Energy, Inc. and Subsidiaries Condensed Statements
of Consolidated Cash Flows (Millions of Dollars) (Unaudited) Year
Ended December 31, ------------- 2007 2008 ---- ---- Cash Flows
from Operating Activities: Net income $399 $447 Adjustments to
reconcile net income to net cash provided by operating activities:
Depreciation and amortization 696 736 Deferred income taxes - 487
Write-down of natural gas inventory 11 30 Changes in net regulatory
assets 81 (366) Changes in other assets and liabilities (425) (450)
Other, net 12 (33) -- --- Net Cash Provided by Operating Activities
774 851 Net Cash Used in Investing Activities (1,300) (1,368) Net
Cash Provided by Financing Activities 528 555 --- --- Net Increase
in Cash and Cash Equivalents 2 38 Cash and Cash Equivalents at
Beginning of Period 127 129 ---- ---- Cash and Cash Equivalents at
End of Period $129 $167 ==== ==== Reference is made to the Notes to
the Consolidated Financial Statements contained in the Annual
Report on Form 10-K of CenterPoint Energy, Inc.
http://www.newscom.com/cgi-bin/prnh/20020930/CNPLOGO
http://photoarchive.ap.org/ DATASOURCE: CenterPoint Energy, Inc.
CONTACT: Leticia Lowe, +1-713-207-7702, or Investors, Marianne
Paulsen, +1-713-207-6500, both of CenterPoint Energy, Inc. Web
Site: http://www.centerpointenergy.com/
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