CenterPoint Energy reports first quarter 2012 earnings
2012-05-03T05:00:00Z

Houston - May 3, 2012 - CenterPoint Energy, Inc. (NYSE: CNP) today reported net income of $147 million, or $0.34 per diluted share, for the first quarter of 2012 compared to $148 million, or $0.35 per diluted share, for the same period of 2011. Operating income for the first quarter of 2012 was $338 million compared to $364 million for the same period of 2011.

“Despite extremely mild winter weather and low natural gas prices, the company reported solid earnings for the quarter,” said David M. McClanahan, president and chief executive officer of CenterPoint Energy. “The benefits of our diversified portfolio of electric and natural gas businesses were evident this quarter and the fundamentals of our business units remain strong. We continue to look for opportunities to invest in each of our businesses where we believe we can build value for our shareholders.”

Electric Transmission & Distribution

The electric transmission & distribution segment reported operating income of $107 million for the first quarter of 2012, consisting of $70 million from the regulated electric transmission & distribution utility operations (TDU) and $37 million related to securitization bonds. Operating income for the first quarter of 2011 was $101 million, consisting of $68 million from the TDU and $33 million related to securitization bonds. Operating income for the TDU benefited from higher miscellaneous revenues, growth of more than 42,000 customers since March 2011, and higher returns associated primarily with the company’s recovery of the true-up proceeds. These gains were partially offset by milder weather and impacts from new rates implemented in September 2011.

Natural Gas Distribution

The natural gas distribution segment reported operating income of $121 million for the first quarter of 2012 compared to $142 million for the same period of 2011. Operating income declined due to significantly warmer winter weather.

Interstate Pipelines

The interstate pipelines segment reported operating income of $60 million for the first quarter of 2012 compared to $76 million for the same period of 2011. The decline was due to lower revenues primarily as a result of an expired backhaul contract and lower off-system sales due primarily to compressed basis differentials. These declines were partially offset by higher revenues from previously restructured contracts with the company’s natural gas distribution affiliates and increased ancillary services. Operation and maintenance expenses were higher primarily due to a favorable insurance settlement recognized in the first quarter of 2011.

In addition to operating income, this segment recorded equity income of $6 million for the first quarter of 2012 from its 50 percent interest in the Southeast Supply Header (SESH) compared to $4 million for the same period of 2011.

Field Services

The field services segment reported operating income of $47 million for the first quarter of 2012 compared to $36 million for the same period of 2011. The first quarter of 2012 benefited from higher gathering volumes 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 $3 million for the first quarter of 2012 from its 50 percent interest in a gathering and processing joint venture (Waskom) compared to $2 million for the same period of 2011.

Competitive Natural Gas Sales and Services

The competitive natural gas sales and services segment reported operating income of $1 million for the first quarter of 2012 compared to $10 million for the same period of 2011. The first quarter of 2012 included a $4 million write-down of natural gas inventory to the lower of average cost or market. The first quarter of 2012 also included charges 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 $2 million for the same period of 2011. In addition to these items, operating income was impacted by milder winter weather, compressed margins and higher operation and maintenance expenses.

Dividend Declaration

On April 26, 2012, CenterPoint Energy’s board of directors declared a regular quarterly cash dividend of $0.2025 per share of common stock payable on June 8, 2012, to shareholders of record as of the close of business on May 16, 2012.

Outlook Reaffirmed for 2012

CenterPoint Energy reaffirmed its estimate for 2012 earnings on a guidance basis 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 and takes into consideration performance to date. 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-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 March 31, 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, May 3, 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 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, particularly supplies available for gathering by CenterPoint Energy’s field services business and transporting by its interstate pipelines, including the impact of natural gas prices on the level of drilling and production 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 Report on Form 10-Q for the quarter ended March 31, 2012, and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

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CenterPoint Energy awards grants to communities for safety initiatives

Minneapolis– June 14, 2018 – CenterPoint Energy's Community Partnership Grant Program awards grants to local communities to fund safety-related equipment and projects. This year, the company recently awarded 70 grants to community organizations in Minnesota totaling $125,000. Recipients will use these grants to serve their local communities.

"Safety is one of CenterPoint Energy's values. Over the past 15 years, we have contributed more than $1.5 million to safety initiatives in our communities," said Dean Headlee, pipeline safety and compliance manager of CenterPoint Energy. "Our Community Partnership Grant program not only helps us stay connected to the communities we serve, but also gives us an opportunity to impact lives by helping them stay safe."

Rachel Shields, community relations program manager of CenterPoint Energy, said, "CenterPoint Energy has funded nearly 900 safety projects since 2003. This year, our Community Partnership Grant program will provide portable defibrillators for first responders, safety equipment for local fire departments and traffic safety equipment."

Winners were determined based on the content of their applications. Participants were required to outline a problem, issue or need in the community and how a Community Partnership Grant would help create a sustainable solution.

To see what CenterPoint Energy is doing in the community, please visit our 2017 Corporate Responsibility Report. Please see the following list of communities that received Community Partnership Grants.

​North MetroSouth Metro
  • Andover
  • Anoka
  • Big Lake
  • Brooklyn Center
  • Carlos
  • Cold Spring
  • Columbia Heights
  • Columbus
  • Coon Rapids
  • Corcoran
  • Dassel
  • Freeport
  • Garrison
  • Genola
  • Glencoe
  • Glenwood
  • Golden Valley
  • Grove City
  • Hector
  • Independence
  • Lexington
  • Little Falls
  • Mayer
  • Medina
  • Melrose
  • Milaca
  • Minnetonka Beach
  • New Germany
  • Osakis
  • Pennock
  • Pierz
  • Plato
  • Plymouth
  • Ramsey
  • Richmond
  • Rockville
  • Rogers
  • Sauk Centre
  • South Haven
  • St. Bonifacius
  • St. Michael
  • Willmar
  • Wayzata
  • Apple Valley
  • Belle Plaine
  • Chaska
  • Cologne
  • Eagle Lake
  • Hampton
  • Hopkins
  • Janesville
  • Lake Crystal
  • Lake Elmo
  • LeCenter
  • Lonsdale
  • Medford
  • Miesville
  • Minnetrista
  • Morristown
  • North Mankato
  • Norwood Young America
  • Prior Lake
  • Randolph
  • Rosemount
  • Savage
  • Sleepy Eye
  • St. Peter
  • Tonka Bay
  • Victoria
  • Waseca

 

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 nearly 8,000 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, please visit CenterPointEnergy.com.

 

CenterPoint Energy and HomeServe USA partner to provide home protection services to customers

Houston – June 13, 2018 – CenterPoint Energy (NYSE: CNP) and HomeServe USA Corp. (HomeServe), a provider of emergency home repair programs to homeowners nationwide, today announced a new partnership through which CenterPoint Energy's natural gas customers in Texas will be able to purchase service plans for several household systems.

CenterPoint Energy and HomeServe's new program will offer a suite of service plans covering repairs to several energy-consuming and other home systems, including customer-owned natural gas lines, heating and cooling systems, interior electric wiring, water heaters, and exterior water and sewer lines. The service plans are designed to protect homeowners from the inconvenience and unexpected expenses associated with repairs to these critical household systems. The initial rollout will include protection for customer-owned natural gas lines and cooling systems, and will be available later this summer.

"CenterPoint Energy prides itself on being a trusted energy advisor, so we are pleased to work with HomeServe to provide our customers access to these new valuable services," said Gregg Knight, senior vice president and Chief Customer Officer of CenterPoint Energy. "CenterPoint Energy provides high-quality, highly rated energy delivery to our customers. These new service plans are a natural extension and will provide homeowners with a low-cost, peace-of mind option for unexpected repairs to covered systems."

The Gas Line service plan, for example, will offer homeowners protection against the expense and inconvenience of repairs to the customer-owned natural gas line from the CenterPoint Energy meter up to and including the connectors to each natural gas appliance inside the home. The plan would also cover repairs to the piping leading to connectors to natural gas appliances outside around the property, such as a natural gas grill or natural gas pool heater. Future offerings will include service plans to help repair or maintain energy-consuming appliances, which will help them use energy more efficiently. 

"HomeServe shares the same level of commitment to quality customer service as CenterPoint Energy," said John Kitzie, CEO of HomeServe. "Our cost-effective service plans provide a better way for customers to secure and pay for repairs through our reliable network of qualified local contractors."  

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 future events, such as future offerings under CenterPoint's new program, 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, 2017, as well as in CenterPoint Energy's Quarterly Report on Form 10-Q for the quarters ended March 31, 2018, and other reports on Form 8-K CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

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 54.0 percent of the common units representing limited partner interests in Enable Midstream Partners, a publicly traded master limited partnership it jointly controls with OGE Energy Corp. Enable Midstream Partners owns, operates and develops natural gas and crude oil infrastructure assets. With nearly 8,000 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, please visit www.CenterPointEnergy.com

About HomeServe USA Corp.:

HomeServe USA Corp. (HomeServe) is a leading provider of home repair solutions serving 3.6 million customers across the US and Canada under the HomeServe, Home Emergency Insurance Solutions, Service Line Warranties of America (SLWA) and Service Line Warranties of Canada (SLWC) names. Since 2003, HomeServe has been protecting homeowners against the expense and inconvenience of water, sewer, electrical, HVAC and other home repair emergencies by providing affordable repair coverage, installations and quality local service. As an A+ rated Better Business Bureau Accredited Business, HomeServe is dedicated to being a customer-focused company supplying best-in-class repair plans and other services to consumers directly and through over 550 leading municipal, utility and association partners. For more information about HomeServe, a 2017 Connecticut Top Workplace winner and recipient of eighteen 2018 Stevie Awards for Sales & Customer Service, or to learn more about HomeServe's affordable repair plans, please go to www.homeserveusa.com. To connect with HomeServe on Facebook and Twitter, please visit www.facebook.com/homeserveusa and www.twitter.com/homeserveusa.

 

For more information:

 

CenterPoint Energy

Media:  Leticia Lowe   

Phone: 713-207-7702

Investors:  David Mordy

Phone: 713-207-6500

 

HomeServe USA

Myles Meehan                                                

Phone: 203-356-4259                                       

             

Hill+Knowlton Strategies for HomeServe USA

Merrie Leininger

Phone: 775-846-0664

###

CenterPoint Energy gears up for hurricane season

Houston – June 1, 2018 – Hurricane season officially begins today, and just as CenterPoint Energy has an Emergency Operations Plan (EOP) should a hurricane strike, the company urges customers to have their own emergency plan as well, particularly if they depend on electricity for life-sustaining equipment.

"No two storms are alike, which makes it difficult to forecast what the exact damage to our electric system could be and how long outages could last," said Steve Greenley, vice president of Distribution Operations for CenterPoint Energy. "Customers need to be prepared to be without power for two weeks or possibly longer, depending on the severity of the storm."

The company suggests that customers be prepared to be without service according to the following guidelines:

HURRICANE WIND SPEED ESTIMATED OUTAGE*
CATEGORY 1 winds 74-95 mph 7 to 10 days
CATEGORY 2winds 96-110 mph 2 to 3 wks
CATEGORY 3winds 111-130 mph 3 to 5 wks
CATEGORY 4winds 131-155 mph 4 to 6 wks
CATEGORY 5winds 156 mph and up 6 to 8 wks

*Individual restoration times will vary.

Company using drone technology to assess damage, expedite restoration

Part of CenterPoint Energy's plan includes incorporating the use of unmanned aerial systems (UAS), commonly referred to as drones, into its EOP. Drones help expedite the company's ability to assess damage to its electric transmission and distribution system following a hurricane.

"We used drone technology following Hurricane Harvey last year at more than 500 locations in the Greater Houston area to assist with assessment and restoration efforts as well as to keep our customers informed through aerial footage of damage in their unique service area," said Pierce Prater, CenterPoint Energy service consultant supervisor.  "We have developed plans for drones to play a key role in storm and disaster response going forward."

"Obstacles such as downed trees or flooded roads make it difficult for crews to assess damage following a severe weather event, which in turn can hinder response and restoration time," added Prater. "Using drones in areas that are inaccessible by foot to capture high-resolution imagery in real time will help us assess damage and deploy the right resources in the right places to restore power."

CenterPoint Energy has used helicopters in the past to assess system damage and will still use them as necessary; however, drones can typically be deployed faster than helicopters.

For latest information on power outages:

For more information and resources on hurricane preparedness, visit CenterPointEnergy.com/StormCenter.

Know when to evacuate following severe weather

Minneapolis – May 22, 2018 CenterPoint Energy would like to remind the public of the following important natural gas safety tips when there is severe weather:

  • Following a severe storm, be alert for leaking natural gas. If you smell, hear or see a natural gas leak, leave the area immediately on foot and tell others to do the same.  Do not drive into or near a natural gas leak or vapor cloud;
  • Once safely away from the area, call the CenterPoint Energy emergency natural gas leak hot line at 1-800-296-9815 and 911 to report the location and description of the leak and CenterPoint Energy will send a trained service technician immediately.  If the pipeline operator is not known, call 911;
  • If natural gas is leaking, do not turn the lights on or off, smoke, strike a match, use a cell phone, drive a car or operate anything that might cause a spark including a flashlight or generator; and 
  • Do not attempt to turn any natural gas valves. Improper operation of valves could make the situation worse.

 

CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission and 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 54.0 percent of the common units representing limited partner interests in Enable Midstream Partners, a publicly traded master limited partnership it jointly controls with OGE Energy Corp. Enable Midstream Partners owns, operates and develops natural gas and crude oil infrastructure assets. With nearly 8,000 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, please visit CenterPointEnergy.com.

The power to make a difference in Puerto Rico

Houston – May 21, 2018 – Jesse Berard, a head line mechanic at CenterPoint Energy's Humble service center, was part of CenterPoint Energy's mutual assistance team that joined the more than 1,500 crews from other U.S. utilities to help Puerto Rico Electric Power Authority (PREPA) restore power following Hurricane Maria. "When I learned that CenterPoint Energy was part of the mutual assistance group traveling to Puerto Rico, I knew my skills and experience could make a positive difference," said Berard.

CenterPoint Energy sent two waves of mutual assistance crews to help with the power restoration in the Arecibo area. The crews faced logistical and geographical challenges. In addition, extensive portions of Puerto Rico's electric grid are located in rugged, mountainous terrain that has little or no road access due to Hurricane Maria's impact. CenterPoint Energy's mutual assistance teams were able to make great progress and restore power to more than 5,100 residents in the area.

"Because of the many challenges, this mission was unique. Crews often worked all day to restore service to only a handful of residents. Our highly skilled employees replaced a total of 276 poles and 2,674 spans of wire," said Ed Scott, director of operations for CenterPoint Energy.

This restoration mission was more difficult than any other CenterPoint Energy has worked on. A total of nine Humble service center linemen and employees were selected to help with the restoration efforts. "It was an honor to be a part of the mutual assistance crews and immensely gratifying to turn the lights on for Puerto Ricans," added Berard. "The residents of the region were very grateful. I will never forget the great memories and experiences of my time in this beautiful island."  

In addition to Berard, the following CenterPoint Energy Humble service center employees supported the restoration efforts in Puerto Rico:

  • Vincent Bustamante, line mechanic
  • Kevin Cook, head line mechanic
  • Angel Coronado, line mechanic
  • Geoffrey Hill, line mechanic
  • Joshua Gorman, apprentice lineman
  • Charles Felice, line mechanic
  • Cesar Ruiz, apprentice lineman
  • Robert Thompson, line mechanic

 

In late October, the Edison Electric Institute (EEI) and the American Public Power Association (APPA) received a request from PREPA to support power restoration efforts on the island. In early November, PREPA expanded its aid request to include the National Rural Electric Cooperative Association (NRECA).

As a result, a team of electric company storm response experts has been on the ground coordinating closely with local officials, the Federal Emergency Management Agency, and the U.S. Army Corps of Engineers. The team has been focused on assessing damages and formalizing a structure for supporting logistics, equipment needs and supply chain issues, as well as ensuring ongoing restoration efforts are completed safely, effectively and efficiently.

CenterPoint Energy is part of electric utility mutual assistance programs that provide access to thousands of linemen and tree trimmers from around the country to lend a hand during widespread power outage emergencies. Coming to the aid of other utilities is nothing new to CenterPoint Energy employees. Over the years, crews have responded and restored power to hundreds of thousands of customers throughout the country who have been left in the dark following hurricanes, ice storms, tornadoes and severe thunderstorms.

For updates, follow CenterPoint Energy on Twitter: @CNPAlerts and Facebook: Facebook.com/CenterPointEnergy.