CenterPoint Energy reports first quarter 2013 earnings
CenterPoint Energy reports first quarter 2013 earnings
2013-05-02T05:00:00Z

Houston - May 2, 2013 - CenterPoint Energy, Inc. (NYSE: CNP) today reported net income of $147 million, or $0.34 per diluted share, for the first quarter of 2013, the same results reported for the first quarter of 2012. Operating income for the first quarter of 2013 was $332 million dollars, compared to $338 million for the same period of 2012.

“I am pleased with the overall performance of our business portfolio this quarter,” said David M. McClanahan, president and chief executive officer of CenterPoint Energy. “Our regulated gas distribution unit and competitive natural gas sales and services unit performed well offsetting a first quarter decline in our electric utility. In the midstream business, our field services unit continues to benefit from its contracting strategy and the earnings from recent acquisitions, which partially offset expected declines in our interstate pipelines.  I am also pleased to announce that we closed on our midstream partnership yesterday.”

Electric Transmission & Distribution

The electric transmission & distribution segment reported operating income of $84 million for the first quarter of 2013, consisting of $49 million from the regulated electric transmission & distribution utility operations (TDU) and $35 million related to securitization bonds. Operating income for the first quarter of 2012 was $107 million, consisting of $70 million from the TDU and $37 million related to securitization bonds.

First quarter operating income for the TDU declined due to lower right of way revenues, higher expenses, and increased depreciation and other taxes. Some of these impacts are timing related and are expected to reverse over the remainder of the year. Additionally, the utility continues to see metered customer count grow by approximately 2 percent year over year.

Natural Gas Distribution

The natural gas distribution segment reported operating income of $139 million for the first quarter of 2013, compared to $121 million for the same period of 2012. Operating income benefited from a return to normal winter weather, rate changes and customer growth, partially offset by an increase in depreciation.

Interstate Pipelines

The interstate pipelines segment reported operating income of $52 million for the first quarter of 2013, compared to $60 million for the same period of 2012. The decrease was partially a result of a decline in off system transportation revenue due to a lack of geographic price differentials which also contributed to a reduction in pricing and volumes on some contract renewals. Declines in ancillary services also contributed to lower operating income.

In addition to operating income, this segment recorded equity income from its 50 percent interest in the Southeast Supply Header (SESH) of $5 million for the first quarter of 2013, compared to $6 million for the first quarter of last year. The decrease was primarily due to unplanned pipeline maintenance.

Field Services

The field services segment reported operating income of $53 million for the first quarter of 2013, compared to $47 million for the same period of 2012. First quarter 2013 operating income benefited from the acquisitions completed last year, the timing of revenue from contracts with throughput commitments and higher natural gas prices on the sale of retained gas. These benefits were partially offset by reduced gathering volumes and lower liquids pricing.

In the first quarter of 2012, this business had equity income of $3 million from its 50 percent interest in Waskom Gas Processing Company which is now owned 100 percent by the unit and thus reflected in operating income.

Competitive Natural Gas Sales and Services

The competitive natural gas sales and services segment reported operating income of $7 million for the first quarter of 2013, compared to $1 million for the same period of 2012. The increase in operating income is due to improved margins. Operating income for the first quarter of this year included a $5 million charge resulting from mark-to-market accounting for derivatives associated with forward natural gas transactions used to lock in economic margins, compared to a $1 million charge in 2012.

Dividend Declaration

On April 25, 2013, CenterPoint Energy’s board of directors declared a regular quarterly cash dividend of $0.2075 per share of common stock payable on June 10, 2013, to shareholders of record as of the close of business on May 16, 2013.

Outlook for 2013

CenterPoint Energy revised its estimate for 2013 earnings on a guidance basis to be in the range of $1.17 to $1.25 per diluted share. This guidance range takes into consideration the closing of our midstream partnership on May 1, 2013 and the performance to date of our businesses. 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 and ownership interest in the midstream partnership. 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 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-Q for CenterPoint Energy, Inc.

Today, CenterPoint Energy, Inc. filed its Form 10-Q with the Securities and Exchange Commission (SEC) for the period ended March 31, 2013. A copy is available on the company’s website, under the Investors section. Company SEC filings and other documents relating to its corporate governance can also be found on the website.

Webcast of Earnings Conference Call

CenterPoint Energy’s management will host an earnings conference call on Thursday, May 2, 2013, 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 and competitive natural gas sales and 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 58.3% limited partner interest in a midstream partnership it jointly controls with OGE Energy Corp. with operations in major natural gas and liquids-rich producing areas of Oklahoma, Texas, Arkansas and Louisiana. With more than 8,700 employees, CenterPoint and its predecessor companies have been in business for more than 135 years. For more information, visit the website at www.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 2013 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, tax legislation, and actions regarding the rates charged by CenterPoint Energy’s regulated businesses; (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, the competitive effects of the available pipeline capacity in the regions we serve, 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 markets; (10) weather variations and other natural phenomena, including the impact on operations and capital from severe weather events; (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 its 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.), a wholly owned subsidiary of NRG 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 or its subsidiaries; (23) CenterPoint Energy’s ability to control costs; (24) the investment performance of pension and postretirement benefit plans; (25) potential business strategies, including restructurings, joint ventures, and acquisitions or dispositions of assets or businesses, for which no assurance can be given that they will be completed or will provide the anticipated benefits to CenterPoint Energy; (26) acquisition and merger activities involving CenterPoint Energy or its competitors; (27) the performance of CenterPoint Energy’s midstream partnership, including whether or not it is able to achieve anticipated operational and commercial synergies, or realize expected growth opportunities; (28) the integration of the operations of the businesses CenterPoint Energy contributed to its midstream partnership with those contributed by the other partners;  (29) future economic conditions in regional and national markets and their effects on sales, prices and costs; and (30) other factors discussed in CenterPoint Energy’s Form 10-K for the period ended December 31, 2012, as well as in CenterPoint Energy's Quarterly Report on Form 10-Q for the quarter ended March 31, 2013, 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

 

 

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.