CenterPoint Energy Reports Fourth Quarter and Full Year 2011 Earnings
2012-02-29T06:00:00Z

Houston - Feb. 29, 2012 - CenterPoint Energy, Inc. (NYSE: CNP) today reported net income of $117 million, or $0.27 per diluted share, for the fourth quarter of 2011 compared to $124 million, or $0.29 per diluted share, for the same period of 2010. Operating income for the fourth quarter of 2011 was $274 million compared to $302 million for the same period of 2010.

For the year ended December 31, 2011, net income was $1.36 billion, or $3.17 per diluted share, compared to $442 million, or $1.07 per diluted share, for the same period of 2010. The year ended December 31, 2011, included net income of $811 million, or $1.89 per diluted share, reflecting the final resolution of the appeals of the 2004 true-up order of the Texas Public Utility Commission (Texas PUC) issued in connection with the restructuring of the Texas electric industry. Excluding this amount, net income would have been $546 million, or $1.27 per diluted share, for the year ended December 31, 2011, compared to $442 million, or $1.07 per diluted share, for the same period of 2010.

Operating income for the year ended December 31, 2011, was $1.3 billion compared to $1.25 billion for the same period of 2010.

“2011 was a significant year for our company,” said David M. McClanahan, president and chief executive officer of CenterPoint Energy. “We resolved the long-standing proceeding arising from the restructuring of the electric industry in Texas. As a result, in January 2012 we recovered approximately $1.7 billion through the issuance of securitization bonds.  Operationally, our regulated electric and natural gas utilities reported solid results and our field services unit realized growth from the investments we made in several developing shale plays. We continue to look for opportunities to invest across our portfolio of electric and natural gas businesses and build value for our shareholders.”

Electric Transmission & Distribution

The electric transmission & distribution segment reported operating income of $93 million for the fourth quarter of 2011, consisting of $62 million from the regulated electric transmission & distribution utility operations (TDU) and $31 million related to securitization bonds. Operating income for the fourth quarter of 2010 was $90 million, consisting of $56 million from the TDU and $34 million related to securitization bonds. Operating income for the TDU benefited from higher net transmission revenues, timing of energy efficiency cost recovery and increased throughput primarily from growth of more than 45,000 customers since December 2010. These gains were partially offset by impacts from the recent rate case and higher operation and maintenance expenses.

Operating income for the year ended December 31, 2011, was $623 million, consisting of $496 million from the TDU and $127 million related to securitization bonds. Operating income for the same period of 2010 was $567 million, consisting of $427 million from the TDU and $140 million related to securitization bonds. Operating income for the TDU benefited from increased throughput driven primarily by warmer weather and customer growth, higher net transmission revenues and lower depreciation. These gains were partially offset by impacts from the recent rate case and higher operation and maintenance expenses in part due to system reliability improvements.

Natural Gas Distribution

The natural gas distribution segment reported operating income of $73 million for the fourth quarter of 2011 compared to $86 million for the same period of 2010. Operating income declined primarily as a result of higher operation and maintenance expenses.

Operating income for the year ended December 31, 2011, was $226 million compared to $231 million for the same period of 2010. Operating income declined as a result of higher operation and maintenance expenses and lower miscellaneous revenues, which were partially offset by customer growth of more than 19,000 customers since December 2010 and rate adjustments.

Interstate Pipelines

The interstate pipelines segment reported operating income of $52 million for the fourth quarter of 2011 compared to $63 million for the same period of 2010. The decline was due to lower revenues primarily related to an expired backhaul contract and lower off-system sales. These declines were partially offset by increased ancillary services.

In addition to operating income, this segment recorded equity income of $6 million for the fourth quarter of 2011 from its 50 percent interest in the Southeast Supply Header (SESH) compared to $4 million for the same period of 2010.

Operating income for the year ended December 31, 2011, was $248 million compared to $270 million for the same period of 2010. The decline was due to lower revenues primarily related to an expired backhaul contract, restructured contracts with the company’s natural gas distribution affiliates and lower off-system sales. These declines were partially offset by increased revenues primarily from ancillary services, as well as from power generation and industrial customers.

In addition to operating income, this segment recorded equity income of $21 million for the year ended December 31, 2011, from its 50 percent interest in SESH compared to $19 million for the same period of 2010.

Field Services

The field services segment reported operating income of $53 million for the fourth quarter of 2011 compared to $57 million for the same period of 2010. Operating expenses for the fourth quarter of 2010 included a gain of $21 million associated with the sale of a small, non-strategic gas gathering system. Operating income for the fourth quarter of 2011 benefited from higher gathering volumes in the Haynesville and Fayetteville shales.

In addition to operating income, this business had equity income of $2 million for each of the fourth quarters of 2011 and 2010 from its 50 percent interest in a gathering and processing joint venture (Waskom).

Operating income for the year ended December 31, 2011, was $189 million compared to $151 million for the same period of 2010. Operating expenses for the year ended December 31, 2010, included a gain of $21 million associated with the sale of a small, non-strategic gas gathering system. Operating income for the year ended December 31, 2011, benefited from higher gathering volumes in the Haynesville and Fayetteville shales and revenues attributable to throughput volume commitments. These gains were partially offset by lower prices received from sales of retained gas, higher operation and maintenance, and depreciation and amortization expenses primarily related to facility expansions.

Equity income from Waskom was $9 million for the year ended December 31, 2011, compared to $10 million for the same period of 2010.

Competitive Natural Gas Sales and Services

The competitive natural gas sales and services segment reported operating income of $3 million for the fourth quarter of 2011 compared to no operating income for the same period of 2010. The fourth quarter of 2011 included a $5 million charge related to an early capacity release on pipeline transportation. In addition, the fourth quarter of 2011 included gains of $1 million resulting from mark-to-market accounting for derivatives associated with certain forward natural gas purchases and sales used to lock in economic margins compared to charges of $10 million for the same period of 2010. The fourth quarter of 2011 also included a $4 million write-down of natural gas inventory to the lower of average cost or market. Low basis spreads continued to negatively impact this segment’s results.

Operating income for the year ended December 31, 2011, was $6 million compared to $16 million for the same period of 2010. Operating income for the year ended December 31, 2011, included the $5 million early capacity release charge. In addition, operating income for the year ended December 31, 2011, included gains of $8 million resulting from mark-to-market accounting compared to gains of $4 million for the same period of 2010. The year ended December 31, 2011, included an $11 million write-down of natural gas inventory compared to a $6 million write-down in the same period of 2010.

Securitization Bond Issuance

On October 13, 2011, the Texas PUC approved a final order resolving all issues raised in connection with the Texas Supreme Court’s remand of the Texas PUC’s 2004 true-up order. The final order authorized the company to recover an additional true-up balance of $1.695 billion. On January 19, 2012, a wholly-owned special purpose subsidiary of the company closed on the sale of bonds to securitize the approved amount. In the third quarter of 2011, the company recorded net income of $811 million related to the true-up remand. An additional $258 million in net income will be recognized over the life of the securitization bonds.

Dividend Declaration

On January 19, 2012, CenterPoint Energy’s board of directors declared a regular quarterly cash dividend of $0.2025 per share of common stock payable on March 9, 2012, to shareholders of record as of the close of business on February 16, 2012. This marks the seventh consecutive year the company has increased its quarterly dividend.

Outlook for 2012

CenterPoint Energy expects earnings on a guidance basis for 2012 to be in the range of $1.08 to $1.20 per diluted share. Earnings guidance is being provided in the form of a range to reflect economic and operational variables associated with the company’s various business segments. Significant variables include the impact to earnings of commodity prices, volume throughput, weather, regulatory proceedings, effective tax rates and financing activities. In providing this guidance, the company does not include the impact of any changes in accounting standards, any impact from significant acquisitions or divestitures, any impact to earnings from the change in the value of Time Warner stocks and the related ZENS securities, or the timing effects of mark-to-market and inventory accounting in the company’s competitive natural gas sales and services business.

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 period ended December 31, 2011. A copy of that report is available on the company’s website under the Investors section. Other filings the company makes with the SEC and other documents relating to its corporate governance can also be found on that site.

Webcast of Earnings Conference Call

CenterPoint Energy’s management will host an earnings conference call on Wednesday, February 29, 2012, at 10:30 a.m. Central time or 11:30 a.m. Eastern time. Interested parties may listen to a live audio broadcast of the conference call on the company’s website under the Investors section. A
replay of the call can be accessed approximately two hours after the completion of the call and will be archived on the website for at least one year.

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 more than $21 billion. With over 8,800 employees, CenterPoint Energy and its predecessor companies have been in business for more than 135 years. For more information, visit the company’s website at CenterPointEnergy.com.

This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual events and results may differ materially from those expressed or implied by these forward-looking statements.  The statements in this news release regarding the company’s earnings outlook for 2012 and future financial performance and results of operations, and any other statements that are not historical facts are forward-looking statements. Each forward-looking statement contained in this news release speaks only as of the date of this release. Factors that could affect actual results include (1) state and federal legislative and regulatory actions or developments affecting various aspects of CenterPoint Energy’s businesses, including, among others, energy deregulation or re-regulation, pipeline integrity and safety, health care reform, financial reform and tax legislation; (2) state and federal legislative and regulatory actions or developments relating to the environment, including those related to global climate change; (3) timely and appropriate rate actions and increases, allowing recovery of costs and a reasonable return on investment; (4) the timing and outcome of any audits, disputes or other proceedings related to taxes; (5) problems with construction, implementation of necessary technology or other issues with respect to major capital projects that result in delays or in cost overruns that cannot be recouped in rates; (6) industrial, commercial and residential growth in CenterPoint Energy’s service territories and changes in market demand, including the effects of energy efficiency measures and demographic patterns; (7) the timing and extent of changes in commodity prices, particularly natural gas and natural gas liquids, and the effects of geographic and seasonal commodity price differentials, including the effects of these circumstances on re-contracting available capacity on CenterPoint Energy’s interstate pipelines; (8) the timing and extent of changes in the supply of natural gas, including supplies available for gathering by CenterPoint Energy’s field services business and transporting by its interstate pipelines; (9) competition in CenterPoint Energy’s mid-continent region footprint for access to natural gas supplies and to markets; (10) weather variations and other natural phenomena; (11) any direct or indirect effects on CenterPoint Energy’s facilities, operations and financial condition resulting from terrorism, cyber attacks, data security breaches or other attempts to disrupt its businesses or the businesses of third parties, or other catastrophic events; (12) the impact of unplanned facility outages; (13) timely and appropriate regulatory actions allowing securitization or other recovery of costs associated with any future hurricanes or natural disasters; (14) changes in interest rates or rates of inflation; (15) commercial bank and financial market conditions, CenterPoint Energy’s access to capital, the cost of such capital, and the results of our financing and refinancing efforts, including availability of funds in the debt capital markets; (16) actions by rating agencies; (17) effectiveness of CenterPoint Energy’s risk management activities; (18) inability of various counterparties to meet their obligations; (19) non-payment for services due to financial distress of CenterPoint Energy’s customers; (20) the ability of GenOn Energy, Inc. (formerly known as RRI Energy, Inc.) and its subsidiaries to satisfy their obligations to CenterPoint Energy and its subsidiaries; (21) the ability of retail electric providers, and particularly the two largest customers of the TDU, to satisfy their obligations to CenterPoint Energy and its subsidiaries; (22) the outcome of litigation brought by or against CenterPoint Energy; (23) CenterPoint Energy’s ability to control costs; (24) the investment performance of pension and postretirement benefit plans; (25) potential business strategies, including restructurings, acquisitions or dispositions of assets or businesses; (26) acquisition and merger activities involving CenterPoint Energy or its competitors; and (27) other factors discussed in CenterPoint Energy’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011, and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

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River Oaks resident, Kimberly Johnston, named one of “Houston’s 50 Most Influential Women of 2016” by Houston Woman Magazine

HOUSTON – February 27, 2017 – CenterPoint Energy Tax vice president and River Oaks resident, Kimberly Johnston, has been named one of "Houston's 50 Most Influential Women of 2016" by Houston Woman Magazine. The magazine staff selected honorees from nominations submitted by subscribers.

Johnston has twenty five years of finance and tax experience with Fortune 500 companies, Big 4 accounting firms, and the U.S. Treasury in the areas of strategy, tax policy, audit negotiations, regulatory proceedings, mergers and acquisitions, and SEC matters. She is the founder of Good Works Houston, a community-based organization focused on tackling upward mobility challenges by growing innovative social enterprises. She also serves as a member of the Convergence Center for Policy Resolution convening leaders solving problems across the political divide on critical national issues.

Her inspiration to form Good Works Houston came from her American Leadership Forum experience convening Houstonian leaders to serve the public good.  "I became seriously concerned about Houston's growing social issues which pushed me to think differently about our solutions," said Johnston.  She hopes to foster a more vibrant community of leaders who are motivated to empower Houstonians in need by investing their talents in growing sustainable social enterprises.

"Kimberly is a great professional and a true leader for our company. She exemplifies CenterPoint core values and reflects the competitive spirit that so many of our colleagues demonstrate in their communities," said Bill Rogers, executive vice president and chief financial officer for CenterPoint Energy.

According to Beverly Denver, publisher of Houston Woman Magazine, "Those selected as Houston's 50 Most Influential Women of 2016 are individuals with vast networks of social and professional connections. They have earned an enviable reputation for their expertise in a particular field or arena. They are knowledgeable, credible and trustworthy. The thoughts and actions of these women influence the thoughts and actions of others. It is our distinct pleasure to introduce these remarkable women to our readers and to others in our community."

Kimberly, her husband, Michael, and four adult children are dedicated to build a brighter future for the Houston community.

About Houston's 50 Most Influential Women of the Year

Since 2008, Houston Woman Magazine has published an annual, keepsake edition featuring Houston's 50 Most Influential Women of the Year. Those previously recognized as Women of Influence by Houston Woman Magazine are listed, by year selected, online at www.houstonwomanmagazine.com/50women/.

About CenterPoint Energy

CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution and energy services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. The company also owns a 54.1 percent limited partner interest in Enable Midstream Partners, a publicly traded master limited partnership it jointly controls with OGE Energy Corp.,  which owns, operates and develops natural gas and crude oil infrastructure assets. With more than 7,800 employees, CenterPoint Energy and its predecessor companies have been in business for more than 140 years.

Forest Lake native Carol Donnellan receives SGA Humanitarian Award for lifesaving efforts

MINNEAPOLIS – February 16, 2017 – CenterPoint Energy employee and Forest Lake native, Carol Donnellan, was recently selected by the Southern Gas Association (SGA) to receive the Humanitarian Award in recognition of her life saving efforts. The award is designed to recognize natural gas industry employees(s) whose Good Samaritan actions promote human welfare and community responsibility.

Donnellan was awarded for her efforts in helping save an unresponsive driver in November 2016 who was slumped over in his vehicle at a green light in an intersection.  Concerned for his safety and since the driver appeared to be experiencing a medical emergency, she immediately pulled over and dialed 911.

 Donnellan, a utility person-meter reader for CenterPoint Energy in Coon Rapids, says she is very grateful for the award.  "To me, helping another where I live and work is putting the 'golden rule' of doing the right things for people into action," said Donnellan.  "The real heroes are the local police officers who arrived on the scene really quickly to come to our aid."

"This award was given to Carol for demonstrating compassion and competence and exceeding normal expectations, in assisting individuals in need," said Cheryl Johnson, Donnellan's supervisor. 

"At CenterPoint Energy, we put safety first in everything we do – not only for our employees but also our communities. Carol's actions support CenterPoint Energy's core values including initiative," added Brad Tutunjian, vice president of Gas Operations for CenterPoint Energy.   "We are extremely proud of her."

To learn more about what CenterPoint Energy is doing in your community, visit CenterPointEnergy.com/Community.

CenterPoint Energy designated a 2016 Residential Customer Champion in Utility Trusted Brand & Engagement™ Residential study

MINNEAPOLIS - February 2, 2017 - CenterPoint Energy achieved top tier rankings among U.S. natural gas utilities throughout 2016 in the Midwest and South regions, designating the company a 2016 Residential Customer Champion by Cogent Reports. The Customer Champions list was compiled from year-end Engaged Customer Relations (ECR) scores and ratings from consumers surveyed for the annual Utility Trusted Brand & Customer Engagement™ study. The results are based on responses from more than 52,000 residential ratepayers for 130 leading gas and electric utilities throughout the U.S.  The study measures and tracks brand trust, customer engagement, satisfaction and relationship strength among residential customers.

"Over the past several years, we have made substantial investments to further enhance safety, reliability and service," said Gregg Knight, senior vice president and chief customer officer for CenterPoint Energy. "While these rankings confirm that our customers appreciate our efforts, we plan to continue working hard to improve our systems and service and earn our customers' trust."

 Rick Zapalac, senior vice president of Gas Operations for CenterPoint Energy agrees and added, "Whether it's in the field, in the office or on the phones, it takes a team of employees all aligned around the goal of serving the customer, to provide the kind of service reflected in these scores.  I would like to thank our employees for their hard work and dedication."

This is the third year Cogent Reports™ has computed Customer Champion scores for individual utilities and recognized Customer Champions. In October 2015, CenterPoint Energy ranked third in the Midwest for environmental dedication by Cogent Reports.  In April 2014, CenterPoint Energy was also ranked first in operational satisfaction by Cogent Reports™.  

Cogent Reports™, a division of Market Strategies International, announced customer rankings for the top tier electric, natural gas and combination providers in four regions across the U.S. The ranking is based on how CenterPoint Energy performed compared to other large utilities in the U.S.

CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution and energy services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma and Texas. The company also owns a 55.4 percent limited partner interest in Enable Midstream Partners, a publicly traded master limited partnership it jointly controls with OGE Energy Corp., which owns, operates and develops natural gas and crude oil infrastructure assets. With more than 7,800 employees, CenterPoint Energy and its predecessor companies have been in business for more than 140 years. For more information, visit the website at CenterPointEnergy.com.

 

CenterPoint Energy receives EEI’s Emergency Recovery Award

Houston, TX - January 16, 2017 – The Edison Electric Institute (EEI) recently presented CenterPoint Energy with the association's "Emergency Recovery Award" for its outstanding power restoration efforts after severe thunderstorms and flooding hit Houston in April 2016.

 The award is presented twice annually to EEI member companies to recognize their extraordinary efforts to restore power to customers after service disruptions caused by severe weather conditions or other natural events. The winners were chosen by a panel of judges following an international nomination process, and the awards were presented during the winter EEI Board of Directors and CEO Meeting.

 On April 17, 2016, potent thunderstorms brought torrential rain and caused severe flooding in the greater Houston area. CenterPoint Energy restored 90 percent of outages within 27 hours, and resumed fully normal operations within 60 hours of the storm. CenterPoint Energy crews devoted 15,827 hours to this recovery operation.

 "The tireless work by CenterPoint Energy crews to restore service following a violent spring storm exemplifies our industry's commitment to customer service and safety," said EEI President Tom Kuhn. "The courageous and dedicated CenterPoint Energy crews who faced dangerous conditions in the wake of this storm are greatly deserving of this terrific recognition."

 "Responding in the aftermath of severe weather is part of the job at an electric company," said Kenny Mercado, senior vice president of Electric Operations for CenterPoint Energy. "Our employees take that responsibility very seriously and we are proud to be recognized by EEI for the tremendous effort our employees made to restore service to our customers as quickly and safely as possible following the torrential flooding we experienced last April."

CenterPoint Energy subsidiary closes on $300 million of general mortgage bonds

Houston – January 12, 2017 - CenterPoint Energy Houston Electric, LLC (Houston Electric), an indirect, wholly-owned subsidiary of CenterPoint Energy, Inc. (NYSE: CNP), today closed on 3.00 % general mortgage bonds totaling $300 million due February 1, 2027. Net proceeds will be for general limited liability company purposes.

Mizuho Securities, Regions Securities LLC and US Bancorp served as joint bookrunners with The Williams Capital Group, L.P. and Wolfe Capital Markets and Advisory as Co-Managers. 

"We were pleased to work with such a distinguished and diverse group of banks to help finance our growth and capital investment requirements in our Houston service territory," said Tracy Bridge, executive vice president and president of CenterPoint Energy's Electric Division.

This news release does not constitute an offer to sell, or the solicitation of any offer to buy, any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering would be unlawful.

This news release includes forward-looking statements. Actual events and results may differ materially from those projected.  The statements in this news release regarding the use of proceeds from the offering 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 business plans, financial market conditions and other factors discussed in Houston Electric's Form 10-K, as amended, for the period ended December 31, 2015, Houston Electric's Form 10-Qs for the periods ended March 31, 2016, June 30, 2016 and September 30, 2016 and Houston Electric's other filings with the Securities and Exchange Commission. A written prospectus may be obtained by visiting EDGAR on the SEC Website at https://www.sec.gov/.

CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution and energy services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. The company also owns a 54.1 percent limited partner interest in Enable Midstream Partners, a publicly traded master limited partnership it jointly controls with OGE Energy Corp.,  which owns, operates and develops natural gas and crude oil infrastructure assets. With more than 7,800 employees, CenterPoint Energy and its predecessor companies have been in business for more than 140 years.