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.
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.
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.
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.”