CenterPoint Energy to acquire gathering and processing assets in northeast Texas
Through two transactions, field services unit will increase fee based gathering and treating portfolio, and expand position in liquids-rich area
2012-06-19T05:00:00Z

HOUSTON - June 19, 2012 - CenterPoint Energy Field Services, LLC (CEFS), an indirect, wholly-owned natural gas gathering, processing and treating subsidiary of CenterPoint Energy, Inc. (NYSE: CNP), announced today that it has entered into two agreements to acquire gathering and processing assets located primarily in northeast Texas.

  • The first is an agreement to acquire gathering and processing assets from Prism Gas Systems I, L.P. (Prism), a wholly-owned subsidiary of Martin Midstream Partners L.P. (NASDAQ: MMLP), and certain other gathering and processing assets from MMLP’s Natural Gas Services segment for approximately $275 million, subject to certain adjustments. The assets to be acquired include Prism’s 50 percent interest in Waskom Gas Processing Company (Waskom). A subsidiary of CEFS currently owns the other 50 percent interest in Waskom.
  • CEFS has also entered into a 15-year agreement with Encana Oil & Gas (USA) Inc. (Encana), a subsidiary of Encana Corporation (NYSE: ECA), to gather and treat its natural gas production from the Amoruso and Hilltop fields located in Robertson and Leon counties in east Texas. In connection with entering into the gathering agreement, which includes volume commitments and acreage dedication, CEFS purchased Encana’s 139-mile Amoruso gathering systems for approximately $89 million. Amoruso currently has more than 200 million cubic feet per day of natural gas throughput primarily from the Deep Bossier and Cotton Valley Lime formations.

“We are very excited about these acquisitions, which will strategically increase our portfolio of gathering and processing assets,” said Greg Harper, group president of CenterPoint Energy’s Midstream businesses. “These transactions expand our capabilities in a liquids-rich production area and position us as the operator of key processing assets in northeast Texas.”

Prism Transaction

The assets to be acquired from Prism, located primarily in northeast Texas, include:

  • Prism’s 50 percent interest in Waskom, which includes a 320 million cubic feet per day natural gas processing facility, a 14,500 barrels per day fractionation plant, and the Harrison system, a 75 million cubic feet per day gathering system,
  • The Woodlawn plant and gathering system, a 30 million cubic feet per day gathering and processing system with 135 miles of gathering pipe, and
  • The McLeod, Hallsville and Darco gathering systems, which combine to gather and treat more than 40 million cubic feet of natural gas per day and are located near the other assets to be acquired in east Texas and northwest Louisiana.

“We have seen a significant increase in producer activity due to the improved economics of producing liquids-rich natural gas in the Cotton Valley field as well as other nearby formations,” said Bill May, division senior vice president and chief commercial officer of CenterPoint Energy’s Field Services business. “Waskom provides a competitive outlet for natural gas liquids, including ethane, as well as several take-away options for natural gas including our CenterPoint Energy Gas Transmission pipeline and direct access to our Perryville Hub™.”

The Prism transaction is subject to the satisfaction of certain closing conditions, including Hart, Scott, Rodino approval, and satisfactory completion of due diligence, and is expected to close in the third quarter of 2012.

Encana Agreement

Under the terms of the Encana gathering agreement, which includes volume commitments and acreage dedication, CEFS will expand the Amoruso systems in order to gather and treat additional volumes as necessary to support Encana’s future production within the dedicated area.

“We are excited to partner with Encana again and appreciate the confidence they have placed in our ability to meet their needs on a timely basis as they develop their properties in this region,” said May.

The Encana transaction closed on May 31, 2012.

CEFS owns and operates approximately 3,900 miles of gathering pipelines and processing plants that gather, treat and process approximately 2.6 billion cubic feet per day of natural gas from approximately 150 separate systems located in major producing fields in Arkansas, Louisiana, Oklahoma and Texas.

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 about 8,800 employees, CenterPoint Energy 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. Actual events and results may differ materially from those projected. The statements in this news release regarding the anticipated acquisition of the Prism assets, including the anticipated benefits and closing date of the Prism acquisition, the anticipated benefits of the long-term gathering agreement with Encana, and other statements that are not historical facts are forward-looking statements. Factors that could affect actual results include the satisfaction or waiver of the conditions to closing the Prism transaction, the receipt of applicable regulatory approvals, post-signing due diligence, and the termination rights of the parties under the purchase agreement for the Prism transaction, the effects of competition, the timing and extent of changes in commodity prices, and other factors discussed in CenterPoint Energy’s and its subsidiaries’ Form 10-Ks for the fiscal year ended December 31, 2011, and form 10-Qs for the quarterly period ended March 31, 2012, and other filings with the SEC.

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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.

CenterPoint Energy announces 2017 earnings guidance of $1.25 to $1.33 per diluted share

Houston - Jan. 6, 2017 - CenterPoint Energy, Inc. (NYSE: CNP) today announces expected earnings on a guidance basis for 2017 to be in the range of $1.25 to $1.33 per diluted share and reaffirms its expected earnings on a guidance basis to be in the range of $1.16 to $1.20 per diluted share for the year ending Dec. 31, 2016.

 Guidance for 2017 includes earnings per share growth expected to come from:

  • Utility growth,
  • Increased earnings per Enable Midstream Partners' forecast, as provided on Enable's third quarter 2016 earnings call, and
  • Increased earnings contribution from CenterPoint Energy Services, partly attributable to recent acquisitions.

In addition to these drivers, the company expects lower interest expense and a full year of dividend income from CenterPoint's investment in Enable's preferred units.

"Our 2017 earnings guidance represents solid growth over our 2016 year end estimated range supported by both utility operations and midstream investments," said Scott M. Prochazka, president and chief executive officer of CenterPoint Energy. "Utility operations, driven by fundamental growth and investment, continue to perform very well and we are pleased with Enable's 2017 forecast."

The company anticipates 2017 capital spending of $1.5 billion, a 14 percent increase over the previous forecast for 2017 capital spending.  Both the electric and gas utilities are expected to contribute to the growth in capital spending:

  • Houston Electric anticipates capital spending of $922 million in 2017 in support of sustained industrial, commercial and residential customer growth. 
  • Gas Distribution anticipates capital spending of $534 million in 2017 to accommodate continued growth, particularly in the Houston metro and Minnesota jurisdictions, as well as pipe replacement needs in the six states served by CenterPoint. 

CenterPoint Energy's management will host an earnings call on Tuesday, Feb. 28, 2017, at 11:00 a.m. Eastern time. Company executives will discuss the company's 2016 earnings results, as well as provide additional detail on earnings growth drivers and the company's five-year capital forecast. 

Earnings Guidance Variables and Assumptions

The guidance range for 2016 and 2017 considers utility operations performance to date and certain significant variables that may impact earnings, such as weather, regulatory and judicial proceedings, throughput, commodity prices, effective tax rates, and financing activities. In providing this guidance, the company uses a non-GAAP measure of adjusted diluted earnings per share that does not consider other potential impacts, such as changes in accounting standards or unusual items, earnings or losses from the change in the value of the ZENS securities and the related stocks, or the timing effects of mark-to-market accounting in the company's Energy Services business. 

In providing guidance, the company assumes for midstream investments a limited partner ownership interest in Enable Midstream averaging 55.3 percent for 2016 and 54.1 percent for 2017 and includes the amortization of CenterPoint Energy's basis difference in Enable Midstream. CenterPoint Energy's guidance takes into account such factors as Enable Midstream's most recent public outlook for 2016, dated Nov. 2, 2016, and effective tax rates. The company does not include other potential impacts such as any changes in accounting standards or Enable Midstream's unusual items.

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. For more information, visit the website at www.CenterPointEnergy.com.

Forward Looking Statements

This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties.  Actual events and results may differ materially from those expressed or implied by these forward-looking statements. Any statements in this news release regarding 2016 and future earnings, and 2016 and future financial performance and results of operations, including, but not limited to earnings guidance, future interest expense, dividend income, capital spending, growth 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 the businesses of Enable Midstream Partners (Enable Midstream)), 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) recording of non-cash goodwill, long-lived asset or other than temporary impairment charges by or related to Enable Midstream; (4) timely and appropriate rate actions that allow recovery of costs and a reasonable return on investment; (5) the timing and outcome of any audits, disputes or other proceedings related to taxes; (6) 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; (7) 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; (8) 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, and the impact of commodity changes on producer related activities; (9) weather variations and other natural phenomena, including the impact on operations and capital from severe weather events; (10) 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; (11) the impact of unplanned facility outages; (12) timely and appropriate regulatory actions allowing securitization or other recovery of costs associated with any future hurricanes or natural disasters; (13) changes in interest rates or rates of inflation; (14) 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; (15) actions by credit rating agencies; (16) effectiveness of CenterPoint Energy's risk management activities; (17) inability of various counterparties to meet their obligations; (18) non-payment for services due to financial distress of CenterPoint Energy's and Enable Midstream's customers; (19) 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; (20) the ability of retail electric providers, and particularly the largest customers of the TDU, to satisfy their obligations to CenterPoint Energy and its subsidiaries; (21) the outcome of litigation; (22) CenterPoint Energy's ability to control costs, invest planned capital, or execute growth projects; (23) the investment performance of pension and postretirement benefit plans; (24) 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; (25) acquisition and merger activities and successful integration of such activities, involving CenterPoint Energy or its competitors; (26) the ability to recruit, effectively transition and retain management and key employees and maintain good labor relations; (27) future economic conditions in regional and national markets and their effects on sales, prices and costs; (28) the performance of Enable Midstream, the amount of cash distributions CenterPoint Energy receives from Enable Midstream, and the value of its interest in Enable Midstream, and factors that may have a material impact on such performance, cash distributions and value, including certain of the factors specified above and: (A) the achievement of anticipated operational and commercial synergies and expected growth opportunities, and the successful implementation of  Enable Midstream's business plan; (B) competitive conditions in the midstream industry, and actions taken by Enable Midstream's customers and competitors, including the extent and timing of the entry of additional competition in the markets served by Enable Midstream; (C) the timing and extent of changes in the supply of natural gas and associated commodity prices, particularly natural gas and natural gas liquids, the competitive effects of the available pipeline capacity in the regions served by Enable Midstream, and the effects of geographic and seasonal commodity price differentials, including the effects of these circumstances on re-contracting available capacity on Enable Midstream's interstate pipelines; (D) the demand for crude oil, natural gas, NGLs and transportation and storage services; (E) changes in tax status; (F) access to growth capital; and (G) the availability and prices of raw materials for current and future construction projects; (29) effective tax rate; (30) the effect of changes in and application of accounting standards and pronouncements; (31) other factors discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2015, as well as in CenterPoint Energy's Quarterly Report on Form 10-Q for the quarter ended March 31, 2016, June 30, 2016 and September 30, 2016 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

Use of Non-GAAP Financial Measures

CenterPoint Energy provides guidance based on adjusted diluted earnings per share, which is a non-GAAP financial measure. Generally, a non-GAAP financial measure is a numerical measure of a company's historical or future financial performance that excludes or includes amounts that are not normally excluded or included in the most directly comparable GAAP financial measure. CenterPoint Energy's adjusted diluted earnings per share calculation excludes from diluted earnings per share the impact of ZENS and related securities and mark-to-market gains or losses resulting from the company's Energy Services business.  CenterPoint Energy is unable to present a quantitative reconciliation of forward looking or 2016 adjusted diluted earnings per share because changes in the value of ZENS and related securities and mark-to-market gains or losses resulting from the company's Energy Services business are not estimable.

Management evaluates the company's financial performance in part based on adjusted diluted earnings per share.  We believe that presenting this non-GAAP financial measure enhances an investor's understanding of CenterPoint Energy's overall financial performance by providing them with an additional meaningful and relevant comparison of current and anticipated future results across periods.  The adjustments made in this non-GAAP financial measure exclude items that Management believes do not most accurately reflect the company's fundamental business performance.  CenterPoint Energy's adjusted diluted earnings per share non-GAAP financial measure should be considered as a supplement to, and not as a substitute for, or superior to, diluted earnings per share, which is the most directly comparable GAAP financial measure.  This non-GAAP financial measure also may be different than non-GAAP financial measures used by other companies.

CenterPoint Energy increases quarterly dividend 4% to 26.75 cents per share

Houston – Jan. 5, 2017 - CenterPoint Energy, Inc. (NYSE: CNP) announced today that the Board of Directors declared a regular quarterly cash dividend of $0.2675 per share of common stock, payable on March 10, 2017, to shareholders of record at the close of business on Feb. 16, 2017. This represents a 4 percent increase from the previous quarterly dividend of $0.2575 and if annualized would equate to $1.07 per share.

"The growth rate in our dividend is supported by solid earnings growth across all business segments," said Scott M. Prochazka, president and chief executive officer of CenterPoint Energy.  "The 4 percent increase is consistent with recent increases and marks the 12th consecutive year we have increased the dividend."

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. For more information, visit the website at www.CenterPointEnergy.com.

 

CenterPoint Energy closes on agreement to acquire retail energy services business from subsidiary of Atmos Energy Corporation

Houston, TX – January 3, 2017 - CenterPoint Energy Services, Inc. (CES), an indirect, wholly-owned subsidiary of CenterPoint Energy, Inc. (NYSE:CNP), has closed on a previously announced agreement to acquire Atmos Energy's retail energy services business, Atmos Energy Marketing, LLC (AEM).

"This is an exciting time for our CES business," said Joe Vortherms, vice president of CES. "This transaction is a strategic fit for both CES and AEM, and the acquisition will enable CES to more effectively access new markets and customer segments, grow our customer base and gross margins, and maintain our low value-at-risk, cost-effective organizational structure. AEM's complementary operational and geographic footprints will provide CES with increased scale, geographic reach, and expanded capabilities that will enable it to grow, while maintaining a focus on excellent customer service."

 

"Energy Services is an integral part of our company that allows us to provide gas purchase options to CenterPoint's growing customer base," said Scott Prochazka, president and chief executive officer of CenterPoint Energy. "AEM is a key investment that will allow us to expand our footprint and build scale to better serve our current and future customers."

 

With the addition of this business, CES now operates in six additional states for a total of 32 states and will deliver in excess of 1 trillion cubic feet of natural gas to approximately 100,000 customers annually, including 33,000 metered commercial and industrial customers and 65,000 individual Choice retail customers.

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. For more information, visit the website at www.CenterPointEnergy.com.

CenterPoint Energy Services
CES is an indirect, wholly-owned subsidiary of CenterPoint Energy, an electric and natural gas energy delivery company headquartered in Houston with more than 140 years of experience in the utility and retail energy industry. CES is focused on its low value-at-risk commercial retail business. CES is a profitable business that complements CenterPoint Energy's natural gas distribution business by providing gas purchase options to customers across multiple states. Combined, CES and the company's natural gas distribution business deliver more than one trillion cubic feet of natural gas a year.

Forward Looking Statements

This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which include the ability of CES to access new markets and customer segments, its footprint, expanded capabilities, customer growth and future customer count and the impact on future earnings, gross margin and future operations, are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties.  Actual events and results may differ materially from those expressed or implied by these forward-looking statements. Any statements in this news release regarding future earnings, growth, performance, 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) factors related to our business and the economy, including commodity prices, (2) the performance of the companies, (3) competitive conditions in the industry, (4) state and federal legislative and regulatory actions or developments affecting various aspects of the businesses and (5) other factors discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2015, as well as in CenterPoint Energy's Quarterly Report on Form 10-Q for the quarters ended March 31, 2016, June 30, 2016, and September 30, 2016, and other reports on Form 8-K CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.