HOUSTON, May 5, 2017 /PRNewswire/ --
- Company reiterates 2017 EPS guidance of $1.25 - $1.33 as decoupling and weather
normalization adjustments help mitigate impact of an extremely warm
winter
- Potential $250 million increase
to the 5-year capital plan with Freeport,
Texas electric transmission expansion proposal submitted to
ERCOT to serve growing petrochemical industry
CenterPoint Energy, Inc. (NYSE: CNP) today reported net income
of $192 million, or $0.44 per diluted share, for the first quarter of
2017, compared with $154 million, or
$0.36 per diluted share for the same
period of the prior year. On a guidance basis, first quarter 2017
earnings were $0.37 per diluted
share, consisting of $0.27 from
utility operations and $0.10 from
midstream investments. First quarter 2016 earnings on a guidance
basis were $0.32 per diluted share,
consisting of $0.23 from utility
operations and $0.09 from midstream
investments.
Operating income for the first quarter of 2017 was $274 million, compared with $250 million in the first quarter of the prior
year. Equity income from midstream investments was $72 million for the first quarter of 2017,
compared with $60 million for the
first quarter of the prior year.
The company continues to execute its rate recovery
strategy. Recent developments include a $16.5 million settlement for Natural Gas
Distribution's Houston and Texas
Coast division's rate case, which is anticipated to become
effective during the second quarter; a $9.3
million Formula Rate Plan (FRP) adjustment proposed in
Arkansas; and a $44.6 million annual Distribution Cost Recovery
Factor (DCRF) increase proposed by Houston Electric.
"We are off to a strong start this year despite a challenging
winter," said Scott M. Prochazka,
president and chief executive officer of CenterPoint
Energy. "Continued growth across our service territories, rate
recovery and Midstream's performance all contributed to the EPS
gains we delivered this quarter."
Business Segments
Electric Transmission & Distribution
The electric transmission & distribution segment reported
operating income of $78 million for
the first quarter of 2017, consisting of $58
million from the regulated electric transmission &
distribution utility operations (TDU) and $20 million related to securitization bonds.
Operating income for the first quarter of 2016 was $83 million, consisting of $59 million from the TDU and $24 million related to securitization bonds.
Operating income for the TDU benefited primarily from rate
relief and customer growth. These benefits were more than offset by
higher depreciation and amortization expense, lower equity return
and lower usage, primarily due to milder weather.
Natural Gas Distribution
The natural gas distribution segment reported operating income
of $164 million for the first quarter
of 2017, compared with $160 million
for the same period of 2016. Operating income benefited from rate
relief, a one-time Minnesota
property tax refund and customer growth. These increases were
partially offset by lower usage due to milder weather and higher
depreciation and amortization expense.
Energy Services
The energy services segment reported operating income of
$35 million for the first quarter of
2017, which included a mark-to-market gain of $15 million, compared with $6 million for the same period in 2016, which
included a mark-to-market loss of $9
million. Excluding mark-to-market adjustments, operating
income was $20 million for the first
quarter of 2017 compared with $15
million for the same period of 2016. The $5 million increase in operating income was
primarily due to an increase of throughput and number of customers
related to the acquisitions in the past 12 months of both Atmos
Energy Marketing and the energy service business of
Continuum.
Midstream Investments
The midstream investments segment reported $72 million of equity income for the first
quarter of 2017, compared with $60
million in the first quarter of the prior year.
Capital Plan Update
As previously announced on Jan. 6,
2017, the company expects to spend $1.5 billion in capital this year. Houston
Electric expects to invest $922
million to support sustained customer growth, reliability
and safety. Natural Gas Distribution expects to invest $534 million to accommodate continued growth and
pipe replacement needs in its six-state service
territory.
On April 3, 2017, the company
submitted a proposal to the Electric Reliability Council of
Texas requesting endorsement for a
$250 million transmission project to
meet the load of the growing petrochemical industry in the
Freeport, Texas area. Capital
expenditures for the project would be incremental to the 5-year
capital plan disclosed in the 2016 Form 10-K.
Earnings Outlook
On a consolidated basis, CenterPoint Energy reaffirms its
earnings estimate for 2017 in the range of $1.25 - $1.33 per diluted share. This guidance
includes anticipated utility operations earnings of $0.93 - $0.97 per diluted share and anticipated
midstream investment earnings of $0.31 -
$0.37 per diluted share.
The utility operations guidance range considers 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 for midstream investments, the company
assumes ownership of 54.1 percent of the common and subordinated
units representing limited partner interests in Enable Midstream
and includes the amortization of CenterPoint Energy's basis
differential in Enable Midstream. CenterPoint Energy's guidance
takes into account such factors as Enable Midstream's most recent
public outlook for 2017 dated May 3,
2017, 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.
CenterPoint
Energy, Inc. and Subsidiaries Reconciliation of Net Income
and
|
Diluted EPS
to Adjusted Net Income and Adjusted Diluted EPS used in providing
annual earnings guidance
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
March 31,
2017
|
|
March 31,
2016
|
|
Net Income
(in millions)
|
|
Diluted
EPS
|
|
Net Income
(in millions)
|
|
Diluted
EPS
|
|
|
|
|
|
|
|
|
Consolidated net
income and diluted EPS as reported
|
$
192
|
|
$
0.44
|
|
$
154
|
|
$
0.36
|
Midstream
Investments
|
(45)
|
|
(0.10)
|
|
(37)
|
|
(0.09)
|
Utility Operations
(1)
|
147
|
|
0.34
|
|
117
|
|
0.27
|
|
|
|
|
|
|
|
|
Timing effects
impacting CES(2):
|
|
|
|
|
|
|
|
Mark-to-market
(gains) losses (net of taxes of $5 and $3)(3)
|
(10)
|
|
(0.02)
|
|
6
|
|
0.01
|
|
|
|
|
|
|
|
|
ZENS-related
mark-to-market (gains) losses:
|
|
|
|
|
|
|
|
Marketable securities
(net of taxes of $16 and $32) (3)(4)
|
(28)
|
|
(0.06)
|
|
(58)
|
|
(0.13)
|
Indexed debt
securities (net of taxes of $4 and $20) (3)
|
6
|
|
0.01
|
|
36
|
|
0.08
|
|
|
|
|
|
|
|
|
Utility operations
earnings on an adjusted guidance basis
|
$
115
|
|
$
0.27
|
|
$
101
|
|
$
0.23
|
|
|
|
|
|
|
|
|
Adjusted net
income and adjusted diluted EPS used in providing earnings
guidance:
|
|
|
|
|
|
|
|
Utility Operations on
a guidance basis
|
$
115
|
|
$
0.27
|
|
$
101
|
|
$
0.23
|
Midstream
Investments
|
45
|
|
0.10
|
|
37
|
|
0.09
|
Consolidated on a
guidance basis
|
$
160
|
|
$
0.37
|
|
$
138
|
|
$
0.32
|
|
|
|
|
|
|
|
|
(1)
CenterPoint Energy earnings excluding Midstream
Investments
|
(2)
Energy Services segment
|
(3)
Taxes are computed based on the impact removing such item would
have on tax expense
|
(4)
As of May 18, 2016, comprised of Time Warner Inc., Charter
Communications, Inc. and Time Inc. Prior to May 18, 2016, comprised
of Time Warner Inc., Time Warner Cable Inc. and Time
Inc.
|
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, 2017. 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
certain documents relating to its corporate governance can also be
found under the Investors section.
Webcast of Earnings Conference Call
CenterPoint Energy's management will host an earnings conference
call on Friday, May 5, 2017, at
10:00 a.m. Central time /
11:00 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 energy services operations. The
company serves more than five million metered customers primarily
in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. The company also owns 54.1 percent of
the common and subordinated units representing limited partner
interests in Enable Midstream Partners, a publicly traded master
limited partnership it jointly controls with OGE Energy
Corp., which owns, operates and develops natural gas and
crude oil infrastructure assets. With more than 7,700 employees,
CenterPoint Energy and its predecessor companies have been in
business for more than 150 years. For more information, go to
www.CenterPointEnergy.com.
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 earnings, and future financial
performance and results of operations, including, but not limited
to earnings guidance, targeted dividend growth rate 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, Enable Midstream or
their 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 integration of the operations of the businesses contributed
to Enable Midstream; (B) the achievement of anticipated operational
and commercial synergies and expected growth opportunities, and the
successful implementation of Enable Midstream's business
plan; (C) 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; (D) 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; (E) the demand
for crude oil, natural gas, NGLs and transportation and storage
services; (F) changes in tax status; (G) access to growth capital;
and (H) 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, 2016, as well as in CenterPoint Energy's Quarterly
Report on Form 10-Q for the quarter ended March 31, 2017 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 by CenterPoint Energy in
Providing Guidance
In addition to presenting its financial results in accordance
with generally accepted accounting principles (GAAP), including
presentation of net income and diluted earnings per share,
CenterPoint Energy also provides guidance based on adjusted net
income and adjusted diluted earnings per share, which are non-GAAP
financial measures. 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 net income and adjusted
diluted earnings per share calculation excludes from net income and
diluted earnings per share, respectively, 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 adjusted net income and 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 net income and adjusted diluted earnings per
share. We believe that presenting these non-GAAP financial
measures 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 these non-GAAP financial measures exclude items that
Management believes does not most accurately reflect the company's
fundamental business performance. These excluded items are
reflected in the reconciliation tables of this news release, where
applicable. CenterPoint Energy's adjusted net income and adjusted
diluted earnings per share non-GAAP financial measures should be
considered as a supplement to, and not as a substitute for, or
superior to, net income and diluted earnings per share, which
respectively are the most directly comparable GAAP financial
measures. These non-GAAP financial measures also may be
different than non-GAAP financial measures used by other
companies.
For more information contact
Media:
Leticia
Lowe
Phone
713.207.7702
Investors:
David
Mordy
Phone
713.207.6500
CenterPoint Energy,
Inc. and Subsidiaries
|
|
Statements of
Consolidated Income
|
|
(Millions of
Dollars)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
March 31,
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
Utility
revenues
|
|
$ 1,546
|
|
$ 1,548
|
|
Non-utility
revenues
|
|
1,189
|
|
436
|
|
Total
|
|
2,735
|
|
1,984
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
Utility natural
gas
|
|
450
|
|
438
|
|
Non-utility natural
gas
|
|
1,129
|
|
414
|
|
Operation and
maintenance
|
|
560
|
|
521
|
|
Depreciation and
amortization
|
|
226
|
|
260
|
|
Taxes other than
income taxes
|
|
96
|
|
101
|
|
Total
|
|
2,461
|
|
1,734
|
|
Operating
Income
|
|
274
|
|
250
|
|
|
|
|
|
|
|
Other Income
(Expense):
|
|
|
|
|
|
Gain on marketable
securities
|
|
44
|
|
90
|
|
Loss on indexed debt
securities
|
|
(10)
|
|
(56)
|
|
Interest and other
finance charges
|
|
(78)
|
|
(87)
|
|
Interest on
securitization bonds
|
|
(20)
|
|
(24)
|
|
Equity in earnings of
unconsolidated affiliate
|
|
72
|
|
60
|
|
Other -
net
|
|
17
|
|
7
|
|
Total
|
|
25
|
|
(10)
|
|
|
|
|
|
|
|
Income Before Income
Taxes
|
|
299
|
|
240
|
|
|
|
|
|
|
|
Income Tax
Expense
|
|
107
|
|
86
|
|
|
|
|
|
|
|
Net Income
|
|
$
192
|
|
$
154
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reference is made to
the Notes to the Consolidated Financial Statements
|
contained in the
Quarterly Report on Form 10-Q of CenterPoint Energy,
Inc.
|
CenterPoint Energy,
Inc. and Subsidiaries
|
Selected Data From
Statements of Consolidated Income
|
(Millions of Dollars,
Except Share and Per Share Amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
March 31,
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per
Common Share
|
|
$
0.45
|
|
$
0.36
|
|
|
|
|
|
|
|
Diluted Earnings Per
Common Share
|
|
$
0.44
|
|
$
0.36
|
|
|
|
|
|
|
|
Dividends Declared
per Common Share
|
|
0.2675
|
|
$
0.2575
|
|
|
|
|
|
|
|
Weighted Average Common
Shares Outstanding (000):
|
|
|
|
|
|
- Basic
|
|
430,794
|
|
430,407
|
|
- Diluted
|
|
433,348
|
|
432,594
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss) by Segment
|
|
|
|
|
|
|
|
|
|
|
|
Electric Transmission
& Distribution:
|
|
|
|
|
|
TDU
|
|
$
58
|
|
$
59
|
|
Bond
Companies
|
|
20
|
|
24
|
|
Total Electric
Transmission & Distribution
|
|
78
|
|
83
|
|
Natural Gas
Distribution
|
|
164
|
|
160
|
|
Energy
Services
|
|
35
|
|
6
|
|
Other
Operations
|
|
(3)
|
|
1
|
|
|
|
|
|
|
|
Total
|
|
$
274
|
|
$
250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reference is made to
the Notes to the Consolidated Financial Statements
|
contained in the
Quarterly Report on Form 10-Q of CenterPoint Energy,
Inc.
|
CenterPoint Energy,
Inc. and Subsidiaries
|
Results of Operations
by Segment
|
(Millions of
Dollars)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electric
Transmission & Distribution
|
|
|
Quarter
Ended
|
|
|
|
|
March 31,
|
|
% Diff
|
|
|
2017
|
|
2016
|
|
Fav/(Unfav)
|
Results of
Operations:
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
TDU
|
|
$
562
|
|
$
540
|
|
4%
|
Bond
Companies
|
|
77
|
|
120
|
|
(36%)
|
Total
|
|
639
|
|
660
|
|
(3%)
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
Operation and
maintenance, excluding Bond Companies
|
|
348
|
|
329
|
|
(6%)
|
Depreciation and
amortization, excluding Bond Companies
|
|
96
|
|
95
|
|
(1%)
|
Taxes other than
income taxes
|
|
60
|
|
57
|
|
(5%)
|
Bond
Companies
|
|
57
|
|
96
|
|
41%
|
Total
|
|
561
|
|
577
|
|
3%
|
Operating
Income
|
|
$
78
|
|
$
83
|
|
(6%)
|
|
|
|
|
|
|
|
Operating
Income:
|
|
|
|
|
|
|
TDU
|
|
$
58
|
|
$
59
|
|
(2%)
|
Bond
Companies
|
|
20
|
|
24
|
|
(17%)
|
Total Segment
Operating Income
|
|
$
78
|
|
$
83
|
|
(6%)
|
|
|
|
|
|
|
|
Electric
Transmission & Distribution Operating Data:
|
|
|
|
|
Actual MWH
Delivered
|
|
|
|
|
|
|
Residential
|
|
5,152,475
|
|
5,019,455
|
|
3%
|
Total
|
|
18,753,117
|
|
18,130,601
|
|
3%
|
|
|
|
|
|
|
|
Weather (average
for service area):
|
|
|
|
|
|
|
Percentage of 10-year
average:
|
|
|
|
|
|
|
Cooling degree
days
|
|
258%
|
|
111%
|
|
147%
|
Heating degree
days
|
|
43%
|
|
86%
|
|
(43%)
|
|
|
|
|
|
|
|
Number of metered
customers - end of period:
|
|
|
|
|
|
|
Residential
|
|
2,139,413
|
|
2,095,035
|
|
2%
|
Total
|
|
2,414,193
|
|
2,364,784
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas
Distribution
|
|
|
Quarter
Ended
|
|
|
|
|
March 31,
|
|
% Diff
|
|
|
2017
|
|
2016
|
|
Fav/(Unfav)
|
Results of
Operations:
|
|
|
|
|
|
|
Revenues
|
|
$
916
|
|
$
895
|
|
2%
|
Natural
gas
|
|
461
|
|
445
|
|
(4%)
|
Gross
Margin
|
|
455
|
|
450
|
|
1%
|
Expenses:
|
|
|
|
|
|
|
Operation and
maintenance
|
|
193
|
|
189
|
|
(2%)
|
Depreciation and
amortization
|
|
63
|
|
59
|
|
(7%)
|
Taxes other than
income taxes
|
|
35
|
|
42
|
|
17%
|
Total
|
|
291
|
|
290
|
|
-
|
Operating
Income
|
|
$
164
|
|
$
160
|
|
3%
|
|
|
|
|
|
|
|
Natural Gas
Distribution Operating Data:
|
|
|
|
|
|
|
Throughput data in
BCF
|
|
|
|
|
|
|
Residential
|
|
62
|
|
73
|
|
(15%)
|
Commercial and
Industrial
|
|
82
|
|
86
|
|
(5%)
|
Total
Throughput
|
|
144
|
|
159
|
|
(9%)
|
|
|
|
|
|
|
|
Weather (average
for service area)
|
|
|
|
|
|
|
Percentage of 10-year
average:
|
|
|
|
|
|
|
Heating degree
days
|
|
73%
|
|
87%
|
|
(14%)
|
|
|
|
|
|
|
|
Number of
customers - end of period:
|
|
|
|
|
|
|
Residential
|
|
3,190,678
|
|
3,163,094
|
|
1%
|
Commercial and
Industrial
|
|
255,869
|
|
254,781
|
|
-
|
Total
|
|
3,446,547
|
|
3,417,875
|
|
1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reference is made to
the Notes to the Consolidated Financial Statements
|
contained in the
Quarterly Report on Form 10-Q of CenterPoint Energy,
Inc.
|
CenterPoint Energy,
Inc. and Subsidiaries
|
|
Results of Operations
by Segment
|
|
(Millions of
Dollars)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy
Services
|
|
|
|
Quarter
Ended
|
|
|
|
|
|
March 31,
|
|
% Diff
|
|
|
|
2017
|
|
2016
|
|
Fav/(Unfav)
|
|
Results of
Operations:
|
|
|
|
|
|
|
|
Revenues
|
|
$
1,196
|
|
$
439
|
|
172%
|
|
Natural
gas
|
|
1,137
|
|
421
|
|
(170%)
|
|
Gross
Margin
|
|
59
|
|
18
|
|
228%
|
|
Expenses:
|
|
|
|
|
|
|
|
Operation and
maintenance
|
|
21
|
|
10
|
|
(110%)
|
|
Depreciation and
amortization
|
|
3
|
|
1
|
|
(200%)
|
|
Taxes other than
income taxes
|
|
-
|
|
1
|
|
100%
|
|
Total
|
|
24
|
|
12
|
|
(100%)
|
|
Operating
Income
|
|
$
35
|
|
$
6
|
|
483%
|
|
|
|
|
|
|
|
|
|
Mark-to-market gain
(loss)
|
|
$
15
|
|
$
(9)
|
|
267%
|
|
|
|
|
|
|
|
|
|
Energy Services
Operating Data:
|
|
|
|
|
|
|
|
Throughput data in
BCF
|
|
319
|
|
171
|
|
87%
|
|
|
|
|
|
|
|
|
|
Number of
customers - end of period
|
|
31,227
|
|
18,073
|
|
73%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Operations
|
|
|
|
Quarter
Ended
|
|
|
|
|
|
March 31,
|
|
% Diff
|
|
|
|
2017
|
|
2016
|
|
Fav/(Unfav)
|
|
Results of
Operations:
|
|
|
|
|
|
|
|
Revenues
|
|
$
4
|
|
$
4
|
|
-
|
|
Expenses
|
|
7
|
|
3
|
|
(133%)
|
|
Operating Income
(Loss)
|
|
$
(3)
|
|
$
1
|
|
(400%)
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures by Segment
|
|
(Millions of
Dollars)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
Capital
Expenditures by Segment
|
|
|
|
|
|
|
|
Electric Transmission
& Distribution
|
|
$
202
|
|
$
212
|
|
|
|
Natural Gas
Distribution
|
|
89
|
|
89
|
|
|
|
Energy
Services
|
|
2
|
|
-
|
|
|
|
Other
Operations
|
|
5
|
|
8
|
|
|
|
Total
|
|
$
298
|
|
$
309
|
|
|
|
|
|
|
|
|
|
|
|
Interest Expense
Detail
|
|
(Millions of
Dollars)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
Interest Expense
Detail
|
|
|
|
|
|
|
|
Amortization of
Deferred Financing Cost
|
|
$
6
|
|
$
6
|
|
|
|
Capitalization of
Interest Cost
|
|
(2)
|
|
(2)
|
|
|
|
Transition and System
Restoration Bond Interest Expense
|
|
20
|
|
24
|
|
|
|
Other Interest
Expense
|
|
74
|
|
83
|
|
|
|
Total Interest
Expense
|
|
$
98
|
|
$
111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reference is made to
the Notes to the Consolidated Financial Statements
|
|
contained in the
Quarterly Report on Form 10-Q of CenterPoint Energy,
Inc.
|
|
CenterPoint Energy,
Inc. and Subsidiaries
|
Condensed
Consolidated Balance Sheets
|
(Millions of
Dollars)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December
31,
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
254
|
|
$
341
|
|
Other current
assets
|
|
2,642
|
|
2,582
|
|
Total current
assets
|
|
2,896
|
|
2,923
|
|
|
|
|
|
|
|
Property, Plant
and Equipment, net
|
|
12,452
|
|
12,307
|
|
|
|
|
|
|
|
Other
Assets:
|
|
|
|
|
|
Goodwill
|
|
867
|
|
862
|
|
Regulatory
assets
|
|
2,601
|
|
2,677
|
|
Investment in
unconsolidated affiliate
|
|
2,502
|
|
2,505
|
|
Preferred
units –unconsolidated affiliate
|
|
363
|
|
363
|
|
Other
non-current assets
|
|
250
|
|
192
|
|
Total other
assets
|
|
6,583
|
|
6,599
|
|
Total
Assets
|
|
$ 21,931
|
|
$
21,829
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
Short-term
borrowings
|
|
$
-
|
|
$
35
|
|
Current
portion of securitization bonds long-term debt
|
|
421
|
|
411
|
|
Indexed
debt
|
|
116
|
|
114
|
|
Current
portion of other long-term debt
|
|
250
|
|
500
|
|
Other current
liabilities
|
|
1,855
|
|
2,020
|
|
Total current
liabilities
|
|
2,642
|
|
3,080
|
|
|
|
|
|
|
|
Other
Liabilities:
|
|
|
|
|
|
Accumulated
deferred income taxes, net
|
|
5,351
|
|
5,263
|
|
Regulatory
liabilities
|
|
1,298
|
|
1,298
|
|
Other
non-current liabilities
|
|
1,211
|
|
1,196
|
|
Total other
liabilities
|
|
7,860
|
|
7,757
|
|
|
|
|
|
|
|
Long-term
Debt:
|
|
|
|
|
|
Securitization
bonds
|
|
1,702
|
|
1,867
|
|
Other
|
|
6,190
|
|
5,665
|
|
Total long-term
debt
|
|
7,892
|
|
7,532
|
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
3,537
|
|
3,460
|
|
Total Liabilities
and Shareholders' Equity
|
|
$ 21,931
|
|
$
21,829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reference is made to
the Notes to the Consolidated Financial Statements
|
contained in the
Quarterly Report on Form 10-Q of CenterPoint Energy,
Inc.
|
|
|
|
|
|
|
CenterPoint Energy,
Inc. and Subsidiaries
|
Condensed Statements
of Consolidated Cash Flows
|
(Millions of
Dollars)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2017
|
|
2016
|
|
|
|
|
Cash Flows from
Operating Activities:
|
|
|
|
Net
income
|
$192
|
|
$154
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
232
|
|
266
|
Deferred income
taxes
|
85
|
|
65
|
Write-down of natural
gas inventory
|
-
|
|
1
|
Equity in earnings of
unconsolidated affiliate, net of distributions
|
(72)
|
|
(60)
|
Changes in net
regulatory assets
|
15
|
|
2
|
Changes in other
assets and liabilities
|
(139)
|
|
203
|
Other, net
|
6
|
|
6
|
Net Cash Provided
by Operating Activities
|
319
|
|
637
|
|
|
|
|
Net Cash Used in
Investing Activities
|
(370)
|
|
(269)
|
|
|
|
|
Net Cash Used in
Financing Activities
|
(36)
|
|
(414)
|
|
|
|
|
Net Decrease in
Cash and Cash Equivalents
|
(87)
|
|
(46)
|
|
|
|
|
Cash and Cash
Equivalents at Beginning of Period
|
341
|
|
264
|
|
|
|
|
Cash and Cash
Equivalents at End of Period
|
$254
|
|
$218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reference is made to
the Notes to the Consolidated Financial Statements
|
contained in the
Quarterly Report on Form 10-Q of CenterPoint Energy,
Inc.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/centerpoint-energy-reports-first-quarter-2017-earnings-of-044-per-diluted-share-037-per-diluted-share-on-a-guidance-basis-300452123.html
SOURCE CenterPoint Energy, Inc.