CenterPoint Energy reports second quarter 2012 earnings
2012-08-02T05:00:00Z

Houston, TX - August 2, 2012 - CenterPoint Energy, Inc. (NYSE: CNP) today reported net income of $126 million, or $0.29 per diluted share, for the second quarter of 2012 compared to $119 million, or $0.28 per diluted share, for the same period of 2011. Operating income for the second quarter of 2012 was $302 million compared to $303 million for the same period of 2011.

“I am pleased with our company’s operating and financial performance for the quarter,” said David M. McClanahan, president and chief executive officer of CenterPoint Energy. “We recently closed on two transactions in our midstream business and continue to look at other growth opportunities that can enhance our balanced portfolio of electric and natural gas assets.”

For the six months ended June 30, 2012, net income was $273 million, or $0.64 per diluted share, compared to $267 million, or $0.62 per diluted share, for the same period of 2011. Operating income for the six months ended June 30, 2012, was $640 million compared to $667 million for the same period of 2011.

Electric Transmission & Distribution

The electric transmission & distribution segment reported operating income of $191 million for the second quarter of 2012, consisting of $153 million from the regulated electric transmission & distribution utility operations (TDU) and $38 million related to securitization bonds. Operating income for the second quarter of 2011 was $185 million, consisting of $153 million from the TDU and $32 million related to securitization bonds. Operating income for the TDU benefited from growth of over 43,000 metered customers since June 2011, higher miscellaneous revenue, and ongoing recognition of deferred equity returns associated primarily with the company’s recovery of true-up proceeds. These increases were partially offset by higher net transmission costs and impacts from new rates implemented in September 2011.

Operating income for the six months ended June 30, 2012, was $298 million, consisting of $223 million from the TDU and $75 million related to securitization bonds. Operating income for the same period of 2011 was $286 million, consisting of $221 million from the TDU and $65 million related to securitization bonds.

Natural Gas Distribution

The natural gas distribution segment reported operating income of $9 million for the second quarter of 2012 compared to $13 million for the same period of 2011. Operating income declined primarily due to weather that was milder than the same period of 2011.

Operating income for the six months ended June 30, 2012, was $130 million compared to $155 million for the same period of 2011.

Interstate Pipelines

The interstate pipelines segment reported operating income of $52 million for the second quarter of 2012 compared to $60 million for the same period of 2011. The decline was primarily due to the expiration of a backhaul contract on the Carthage-to-Perryville pipeline.

In addition to operating income, this segment recorded equity income of $6 million for the second quarter of 2012 from its 50 percent interest in the Southeast Supply Header (SESH) compared to $5 million for the same period of 2011.

Operating income for the six months ended June 30, 2012, was $112 million compared to $136 million for the same period of 2011. In addition to operating income, this segment recorded equity income of $12 million for the six months ended June 30, 2012, from its 50 percent interest in SESH compared to $9 million for the same period of 2011.

Field Services

The field services segment reported operating income of $51 million for the second quarter of 2012 compared to $39 million for the same period of 2011. Operating income benefited from higher gathering margins in the Haynesville and Fayetteville shales, partially offset by lower prices received from sales of retained gas.

In addition to operating income, this business had equity income of $2 million for the second quarter of 2012 from its 50 percent interest in a gathering and processing joint venture (Waskom) compared to $3 million for the same period of 2011. The decline is due to lower throughput volume attributable to supply disruptions as well as lower commodity prices.

Operating income for the six months ended June 30, 2012, was $98 million compared to $75 million for the same period of 2011. Equity income from Waskom was $5 million for each of the six months ended June 30, 2012, and 2011.

Competitive Natural Gas Sales and Services

The competitive natural gas sales and services segment reported an operating loss of $4 million for the second quarter of 2012 compared to operating income of $3 million for the same period of 2011. Operating income for the second quarter of 2012 included charges of $4 million compared to gains of $4 million for the same period of 2011 related to mark-to-market accounting for derivatives associated with certain forward natural gas purchases and sales used to lock in economic margins.

The operating loss for the six months ended June 30, 2012, was $3 million compared to operating income of $13 million for the same period of 2011. Operating income for the six months ended June 30, 2012, included charges of $5 million compared to gains of $2 million for the same period of 2011 resulting from mark-to-market accounting. The six months ended June 30, 2012, also included a $4 million write-down of natural gas inventory to the lower of average cost or market.

Dividend Declaration

On July 26, 2012, CenterPoint Energy’s board of directors declared a regular quarterly cash dividend of $0.2025 per share of common stock payable on September 10, 2012, to shareholders of record as of the close of business on August 16, 2012.

Revised Outlook for 2012

CenterPoint Energy expects diluted earnings per share for 2012 to be in the range of $1.13 to $1.23, up from previously provided guidance of $1.08 to $1.20 per diluted share. This guidance takes into consideration the expected impact of the two recently announced acquisitions by the field services business, performance to date and various economic and operational assumptions related to the business segments in which the company operates. Significant variables that may impact results include commodity prices, throughput volume, 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, significant future acquisitions or divestitures, 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. In addition, this guidance excludes a non-recurring gain which will be recognized in the third quarter of 2012 relating to the July 2012 acquisition of the additional 50 percent interest in the Waskom Gas Processing Company.

Filing of Form 10-Q for CenterPoint Energy, Inc.

Today, CenterPoint Energy, Inc. filed with the Securities and Exchange Commission (SEC) its Quarterly Report on Form 10-Q for the period ended June 30, 2012. 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 Thursday, August 2, 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 $22 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 that allow 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, particularly supplies available for gathering by CenterPoint Energy’s field services business and transporting by its interstate pipelines, including the impact of natural gas and natural gas liquids prices on the level of drilling and production activities in the regions served by CenterPoint Energy; (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 credit 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, CenterPoint Energy’s Quarterly Reports on Form 10-Q for the quarters ended March 31, 2012, and June 30, 2012, and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

some_text CenterPoint Energy

View More Tweets ›

 Recent News

 

 

CenterPoint Energy awards grants to communities for safety initiatives

MINNEAPOLIS – August 17, 2017 – CenterPoint Energy’s Community Partnership Grant Program awards grants to local communities to fund safety-related equipment and projects. The company recently awarded the City of Bethel a $2,500 grant for a repair on a self-contained breathing apparatus compressor that will be used to serve the community.

“Safety is one of CenterPoint Energy’s core values. Through the Community Partnership Grant program CenterPoint Energy has partnered with communities supporting our shared commitment to safety while delivering a safe, reliable natural gas service for over 150 years. Over the past 14 years, CenterPoint Energy has contributed $1.5 million toward safety initiatives in our communities,” said Jean Krause, Community Relations Director for CenterPoint Energy. “These grants help us stay connected with our emergency officials and aid them in keeping our neighbors and communities safe. “

To see what CenterPoint Energy is doing in the community, please visit our 2016 Corporate Responsibility Report.

 

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 7,400 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. The utility also operates a non-regulated business in Minnesota called Home Service Plus®. For more information, visit the website at CenterPointEnergy.com.

CenterPoint Energy awards grants to communities for safety initiatives

MINNEAPOLIS - August 15, 2017 - CenterPoint Energy’s Community Partnership Grant Program awards grants to local communities to fund safety-related equipment and projects.  The company recently awarded several communities grants that will be used to serve the communities. They are listed below:

​Date Given​City​Grant Amount Given​Safety Related Equipment/Project
​8/15/17 ​ ​​Crystal​$2,500​Mobile police radio
​Long Lake​$2,500​Nomex hoods for firefighters
​Robbinsdale​$2,500​Critical incident response and rescue vehicle

 

“Safety is one of CenterPoint Energy’s core values. Through the Community Partnership Grant program CenterPoint Energy has partnered with communities supporting our shared commitment to safety while delivering a safe, reliable natural gas service for over 150 years. Over the past 14 years, CenterPoint Energy has contributed $1.5 million toward safety initiatives in our communities,” said Jean Krause, Community Relations Director for CenterPoint Energy. “These grants help us stay connected with our emergency officials and aid them in keeping our neighbors and communities safe. “

To see what CenterPoint Energy is doing in the community, please visit our 2016 Corporate Responsibility Report.

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 7,400 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. The utility also operates a non-regulated business in Minnesota called Home Service Plus®. For more information, visit the website at CenterPointEnergy.com.

CenterPoint Energy awards grants to communities for safety initiatives

MINNEAPOLIS - August 14, 2017 - CenterPoint Energy’s Community Partnership Grant Program awards grants to local communities to fund safety-related equipment and projects.  The company recently awarded several communities grants that will be used to serve the communities. They are listed below:

 
​Date Given ​City ​Grant Amount Given ​Safety Related Equipment/Project
​8/14/17 ​ ​ ​​Brooklyn Park​$2,500​Two camera monitoring safe exchange locations
​Cokato​$2,235Turnout Gear
​Fridley​$2,500​Severe weather alarm
​Hancock$750​Automated external defibrillator
​Otsego​$2,500​800 MHz radios

 

“Safety is one of CenterPoint Energy’s core values. Through the Community Partnership Grant program CenterPoint Energy has partnered with communities supporting our shared commitment to safety while delivering a safe, reliable natural gas service for over 150 years. Over the past 14 years, CenterPoint Energy has contributed $1.5 million toward safety initiatives in our communities,” said Jean Krause, Community Relations Director for CenterPoint Energy. “These grants help us stay connected with our emergency officials and aid them in keeping our neighbors and communities safe. “

To see what CenterPoint Energy is doing in the community, please visit our 2016 Corporate Responsibility Report.

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 7,400 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. The utility also operates a non-regulated business in Minnesota called Home Service Plus®. For more information, visit the website at CenterPointEnergy.com.

August 11 (8/11) serves as a reminder to always call before digging

Houston – Aug. 11, 2017 – Today's date of 8/11 is a reminder for everyone to call the national "Call Before You Dig" number – 811 – prior to any digging project. One free call to 811 before digging can prevent injuries, property damage, service disruption and possible costly fines for damaged infrastructure.

"It doesn't matter where you're digging in your yard; we encourage everyone to always call 811 before any digging project. On this day and throughout the year we continue to remind homeowners and professional contractors alike to call before digging to eliminate the risk of striking an underground utility line," said Joe Berry, director of Damage Prevention for CenterPoint Energy. "The number-one cause of underground utility damage is not digging properly. The only physical way to know what's below is to call and have the utilities buried in your area marked. Not only is it a free call and service, it is also the law."

By calling 811, a homeowner connects to a One Call Center, which then notifies the appropriate utility companies of the homeowner's intent to dig. Professional locators are sent to the requested digging site to mark the approximate locations of underground lines with flags and spray paint, enabling the homeowner to dig safely.

The depth of utility lines varies and there may be multiple utility lines in a common area. Whether it is a small project like planting a tree, or a larger one such as hiring a professional to install a lawn irrigation system, smart digging means calling 811 before each job. For more information, visit call811.com.

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 54.1 percent of the common and subordinated units representing limited partner interests 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 7,700 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, please visit www.CenterPointEnergy.com.

 

CenterPoint Energy, Inc. announces closing of $500 million senior notes offering

Houston – Aug. 10, 2017 - CenterPoint Energy, Inc. (NYSE: CNP) today announced the closing of its offering of $500 million aggregate principal amount of its 2.50 percent senior notes due Sept. 1, 2022. Net proceeds will be for general corporate purposes, including the repayment of a portion of its outstanding commercial paper.

Barclays, Goldman Sachs & Co. LLC, Morgan Stanley and MUFG served as joint bookrunners with TD Securities as senior co-manager. Additionally, Evercore ISI and Ramirez & Co., a diversity and inclusion (D&I) firm, served as co-managers. 

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, but are not limited to, future financial performance and results of operations, the timing and impact of future regulatory and legislative decisions, weather variations, changes in business plans, financial market conditions and other factors discussed in CenterPoint Energy, Inc.'s Annual Report on Form 10-K for the period ended December 31, 2016, CenterPoint Energy, Inc.'s Quarterly Reports on Form 10-Q for the periods ended March 31, 2017, and June 30, 2017, and CenterPoint Energy'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 54.1 percent of the common and subordinated units representing limited partner interests 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 7,700 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, please visit www.CenterPointEnergy.com.

 

 

###