• Reiterate full-year 2019 EPS guidance,
anticipate achieving near the upper end of the $1.60 - $1.70
range
• Utilities led company to a strong third
quarter performance
CenterPoint Energy, Inc. (NYSE: CNP) today reported income
available to common shareholders of $241 million, or $0.47 per
diluted share, for the third quarter of 2019, compared with $153
million, or $0.35 per diluted share for the third quarter of 2018.
On a guidance basis, third quarter 2019 earnings were $0.53 per
diluted share, excluding certain impacts associated with the
Vectren merger (the merger). Third quarter 2018 earnings, on a
guidance basis and excluding certain impacts associated with the
merger, were $0.39 per diluted share.
“Our utilities delivered another strong performance this
quarter, driven by solid customer growth, disciplined cost
management and favorable weather,” said Scott M. Prochazka,
president and chief executive officer of CenterPoint Energy. “This
strong performance is expected to drive our anticipated 2019 full
year results towards the upper end of our guidance range.”
Business Segments
Houston Electric - Transmission & Distribution
The Houston electric - transmission & distribution segment
reported operating income of $269 million for the third quarter of
2019, consisting of $261 million from the regulated electric
transmission and distribution utility operations (TDU) and $8
million related to securitization bonds. Operating income for the
third quarter of 2018 was $227 million, consisting of $214 million
from the TDU and $13 million related to securitization bonds.
Operating income for the TDU benefited primarily from lower
operation and maintenance expenses, higher usage primarily due to
warmer than normal weather, customer growth and rate relief. These
benefits were partially offset by increased depreciation and
amortization expense, lower equity return, primarily related to the
annual true-up of transition charges, and lower revenues related to
the Tax Cuts and Jobs Act (TCJA).
Indiana Electric – Integrated
The Indiana electric – integrated segment reported operating
income of $48 million for the third quarter of 2019. These results
are not comparable to the third quarter of 2018 as this segment was
acquired in the merger in February 2019.
Natural Gas Distribution
The natural gas distribution segment reported operating income
of $27 million for the third quarter of 2019, compared with $3
million for the third quarter of 2018. Operating income increased
$7 million due to the gas utilities acquired in the merger in
February 2019. The remaining increase is primarily due to lower
operation and maintenance expenses, rate relief and customer
growth. These increases were partially offset by the timing of a
decoupling mechanism in Minnesota and lower revenues related to the
TCJA.
Energy Services
The energy services segment reported operating income of $2
million for the third quarter of 2019, which included a
mark-to-market loss of $2 million, compared with an operating loss
of $9 million for the third quarter of 2018, which included a
mark-to-market gain of $1 million. Excluding mark-to-market
adjustments, operating income was $4 million for the third quarter
of 2019 compared with an operating loss of $10 million for the
third quarter of 2018. Operating income, excluding mark-to-market
adjustments, increased primarily as a result of an increase in
margin due to fewer opportunities to optimize natural gas supply
costs in the third quarter of 2018 and decreased operation and
maintenance expenses.
Infrastructure Services
The infrastructure services segment reported operating income of
$42 million for the third quarter of 2019. Operating income
includes $6 million of merger-related expenses. These results are
not comparable to the third quarter of 2018 as this segment was
acquired in the merger in February 2019.
Midstream Investments
The midstream investments segment reported $77 million of equity
income for the third quarter of 2019, compared with $81 million in
the third quarter of 2018. For further detail, please refer to
Enable's investor materials provided during its 3rd quarter
earnings call on November 6, 2019.
Corporate and Other
The corporate and other segment reported operating income of $4
million for the third quarter of 2019, compared with $5 million for
the third quarter of 2018. Operating income for the third quarter
of 2019 included $19 million of merger-related expenses. Operating
income for the third quarter of 2018 included $5 million of
merger-related expenses.
Earnings Outlook
- Anticipate delivering full year 2019 guidance basis EPS near
the upper end of our guidance range of $1.60 - $1.70. This guidance
excludes:
- Certain impacts associated with the merger:
- Integration and transaction-related fees and expenses,
including severance and other costs to achieve the anticipated cost
savings as a result of the merger
- Merger financing impacts in January, prior to the completion of
the merger, due to the issuance of debt and equity securities to
fund the merger that resulted in higher net interest expense,
preferred stock dividend requirements and higher common stock share
count
- Potential impacts of the pending Houston Electric rate
case
- 2020 guidance range and EPS growth target to be provided on
fourth quarter 2019 earnings call following normal annual financial
planning process
The 2019 guidance range considers operations performance to date
and assumptions for certain significant variables that may impact
earnings, such as customer growth (approximately 2% for electric
operations and 1% for natural gas distribution) and usage including
normal weather, throughput, commodity prices, recovery of capital
invested through rate cases and other rate filings (excluding
potential impacts of the pending Houston Electric rate case),
effective tax rates, financing activities and related interest
rates, and regulatory and judicial proceedings as well as the
volume of work contracted in our infrastructure services business.
The range also considers anticipated cost savings as a result of
the merger. The range assumes the lower end of Enable Midstream
Partners, LP’s (Enable) 2019 guidance range for net income
attributable to common units, provided on Enable’s 3rd quarter
earnings call on November 6, 2019.
In providing this guidance, CenterPoint Energy 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, including those from Enable, earnings
or losses from the change in the value of ZENS and related
securities, or the timing effects of mark-to-market accounting in
the company’s Energy Services business, which, along with the
certain excluded impacts associated with the merger and potential
impacts of the pending Houston Electric rate case, could have a
material impact on GAAP reported results for the applicable
guidance period. CenterPoint Energy is unable to present a
quantitative reconciliation of forward looking 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 as they are
highly variable and difficult to predict due to various factors
outside of management’s control.
Quarter Ended
September 30, 2019
September 30, 2018
Dollars in millions
Diluted
EPS(1)
Dollars in millions
Diluted EPS(1)
Consolidated income available to common
shareholders and diluted EPS
$
241
$
0.47
$
153
$
0.35
Timing effects impacting CES
(2):
Mark-to-market (gains) losses (net of
taxes of $1 and $0) (3)
1
—
(1
)
—
ZENS-related mark-to-market (gains)
losses:
Marketable securities (net of taxes of $12
and $9) (3)(4)
(47
)
(0.09
)
(34
)
(0.08
)
Indexed debt securities (net of taxes of
$12 and $10) (3)
50
0.10
34
0.08
Consolidated on a guidance
basis
$
245
$
0.48
$
152
$
0.35
Impacts associated with the Vectren
merger:
Impacts associated with the Vectren merger
(net of taxes of $5 and $2) (3)
20
0.05
18
0.04
Consolidated on a guidance basis,
excluding impacts associated with the Vectren merger
$
265
$
0.53
$
170
$
0.39
(1)
Quarterly diluted EPS on both a GAAP and
guidance basis are based on the weighted average number of shares
outstanding during the quarter, and the sum of the quarters may not
equal year-to-date diluted EPS
(2)
Energy Services segment
(3)
Taxes are computed based on the impact
removing such item would have on tax expense
(4)
Comprised of common stock of AT&T Inc.
and Charter Communications, 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
quarter ended September 30, 2019. A copy of that report is
available on the company’s website, under the Investors section.
Investors and others should note that we may announce material
information using SEC filings, press releases, public conference
calls, webcasts, and the Investor Relations page of our website. In
the future, we will continue to use these channels to distribute
material information about the company and to communicate important
information about the company, key personnel, corporate
initiatives, regulatory updates and other matters. Information that
we post on our website could be deemed material; therefore we
encourage investors, the media, our customers, business partners
and others interested in our company to review the information we
post on our website.
Webcast of Earnings Conference Call
CenterPoint Energy’s management will host an earnings conference
call on Thursday, November 7, 2019, at 9:00 a.m. Central time/10:00
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.
Headquartered in Houston, Texas, CenterPoint Energy, Inc. is an
energy delivery company with regulated utility businesses in eight
states and a competitive energy businesses footprint in nearly 40
states. Through its electric transmission & distribution, power
generation and natural gas distribution businesses, the company
serves more than 7 million metered customers in Arkansas, Indiana,
Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas.
CenterPoint Energy’s competitive energy businesses include natural
gas marketing and energy-related services; energy efficiency,
sustainability and infrastructure modernization solutions; and
construction and repair services for pipeline systems, primarily
natural gas. The company also owns 53.7 percent of the common units
representing limited partner interests in Enable Midstream
Partners, LP, a publicly traded master limited partnership that
owns, operates and develops strategically located natural gas and
crude oil infrastructure assets. With approximately 14,000
employees and approximately $35 billion in assets, CenterPoint
Energy and its predecessor companies have been in business for more
than 150 years. For more information, visit
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.
Risks Related to CenterPoint Energy
Important factors that could cause actual results to differ
materially from those indicated by the provided forward-looking
information include risks and uncertainties relating to: (1) the
performance of Enable Midstream Partners, LP (Enable), the amount
of cash distributions CenterPoint Energy receives from Enable,
Enable’s ability to redeem the Enable Series A Preferred Units in
certain circumstances and the value of CenterPoint Energy’s
interest in Enable, and factors that may have a material impact on
such performance, cash distributions and value, including factors
such as: (A) competitive conditions in the midstream industry, and
actions taken by Enable’s customers and competitors, including the
extent and timing of the entry of additional competition in the
markets served by Enable; (B) the timing and extent of changes in
the supply of natural gas and associated commodity prices,
particularly prices of natural gas and natural gas liquids (NGLs),
the competitive effects of the available pipeline capacity in the
regions served by Enable, and the effects of geographic and
seasonal commodity price differentials, including the effects of
these circumstances on re-contracting available capacity on
Enable’s interstate pipelines; (C) the demand for crude oil,
natural gas, NGLs and transportation and storage services; (D)
environmental and other governmental regulations, including the
availability of drilling permits and the regulation of hydraulic
fracturing; (E) recording of goodwill, long-lived asset or other
than temporary impairment charges by or related to Enable; (F) the
timing of payments from Enable’s customers in existing contracts,
including minimum volume commitment payments; (G) changes in tax
status; and (H) access to debt and equity capital; (2) CenterPoint
Energy’s expected benefits of the merger with Vectren Corporation
(Vectren) and integration, including the outcome of shareholder
litigation filed against Vectren that could reduce anticipated
benefits of the merger, as well as the ability to successfully
integrate the Vectren businesses and to realize anticipated
benefits and commercial opportunities; (3) industrial, commercial
and residential growth in CenterPoint Energy’s service territories
and changes in market demand, including the demand for CenterPoint
Energy’s non-utility products and services and effects of energy
efficiency measures and demographic patterns; (4) the outcome of
the pending Houston Electric rate case; (5) timely and appropriate
rate actions that allow recovery of costs and a reasonable return
on investment; (6) future economic conditions in regional and
national markets and their effect on sales, prices and costs; (7)
weather variations and other natural phenomena, including the
impact of severe weather events on operations and capital; (8)
state and federal legislative and regulatory actions or
developments affecting various aspects of CenterPoint Energy’s and
Enable’s businesses, including, among others, energy deregulation
or re-regulation, pipeline integrity and safety and changes in
regulation and legislation pertaining to trade, health care,
finance and actions regarding the rates charged by our regulated
businesses; (9) tax legislation, including the effects of the
comprehensive tax reform legislation informally referred to as the
Tax Cuts and Jobs Act (which includes any potential changes to
interest deductibility) and uncertainties involving state
commissions’ and local municipalities’ regulatory requirements and
determinations regarding the treatment of excess deferred income
taxes and CenterPoint Energy’s rates; (10) CenterPoint Energy’s
ability to mitigate weather impacts through normalization or rate
mechanisms, and the effectiveness of such mechanisms; (11) the
timing and extent of changes in commodity prices, particularly
natural gas and coal, and the effects of geographic and seasonal
commodity price differentials; (12) the ability of CenterPoint
Energy’s and CERC’s non-utility business operating in the Energy
Services reportable segment to effectively optimize opportunities
related to natural gas price volatility and storage activities,
including weather-related impacts; (13) actions by credit rating
agencies, including any potential downgrades to credit ratings;
(14) changes in interest rates and their impact on CenterPoint
Energy’s costs of borrowing and the valuation of its pension
benefit obligation; (15) problems with regulatory approval,
legislative actions, 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; (16) the availability and prices of raw materials and
services and changes in labor for current and future construction
projects; (17) local, state and federal legislative and regulatory
actions or developments relating to the environment, including
those related to global climate change, air emissions, carbon,
waste water discharges and the handling and disposal of coal
combustion residuals (CCR) that could impact the continued
operation, and/or cost recovery of generation plant costs and
related assets; (18) the impact of unplanned facility outages or
other closures; (19) any direct or indirect effects on CenterPoint
Energy’s or Enable’s facilities, operations and financial condition
resulting from terrorism, cyber-attacks, data security breaches or
other attempts to disrupt CenterPoint Energy’s businesses or the
businesses of third parties, or other catastrophic events such as
fires, ice, earthquakes, explosions, leaks, floods, droughts,
hurricanes, tornadoes, pandemic health events or other occurrences;
(20) CenterPoint Energy’s ability to invest planned capital and the
timely recovery of CenterPoint Energy’s investments, including
those related to the generation transition plan; (21) CenterPoint
Energy’s ability to successfully construct and operate electric
generating facilities, including complying with applicable
environmental standards and the implementation of a well-balanced
energy and resource mix, as appropriate; (22) CenterPoint Energy’s
ability to control operation and maintenance costs; (23) the
sufficiency of CenterPoint Energy’s insurance coverage, including
availability, cost, coverage and terms and ability to recover
claims; (24) the investment performance of CenterPoint Energy’s
pension and postretirement benefit plans; (25) commercial bank and
financial market conditions, CenterPoint Energy’s access to
capital, the cost of such capital, and the results of CenterPoint
Energy’s financing and refinancing efforts, including availability
of funds in the debt capital markets; (26) changes in rates of
inflation; (27) inability of various counterparties to meet their
obligations to CenterPoint Energy; (28) non-payment for CenterPoint
Energy’s services due to financial distress of its customers; (29)
the extent and effectiveness of CenterPoint Energy’s and Enable’s
risk management and hedging activities, including but not limited
to, financial and weather hedges and commodity risk management
activities; (30) timely and appropriate regulatory actions, which
include actions allowing securitization, for any future hurricanes
or natural disasters or other recovery of costs, including costs
associated with Hurricane Harvey; (31) CenterPoint Energy’s or
Enable’s potential business strategies and strategic initiatives,
including restructurings, joint ventures and acquisitions or
dispositions of assets or businesses, which CenterPoint Energy and
Enable cannot assure will be completed or will have the anticipated
benefits to CenterPoint Energy or Enable; (32) the performance of
projects undertaken by CenterPoint Energy’s non-utility businesses
and the success of efforts to realize value from, invest in and
develop new opportunities and other factors affecting those
non-utility businesses, including, but not limited to, the level of
success in bidding contracts, fluctuations in volume and mix of
contracted work, mix of projects received under blanket contracts,
failure to properly estimate cost to construct projects or
unanticipated cost increases in completion of the contracted work,
changes in energy prices that affect demand for construction
services and projects and cancellation and/or reductions in the
scope of projects by customers and obligations related to
warranties and guarantees; (33) acquisition and merger activities
involving CenterPoint Energy or its competitors, including the
ability to successfully complete merger, acquisition and
divestiture plans; (34) CenterPoint Energy’s or Enable’s ability to
recruit, effectively transition and retain management and key
employees and maintain good labor relations; (35) the outcome of
litigation; (36) the ability of retail electric providers (REPs),
including REP affiliates of NRG Energy, Inc. and Vistra Energy
Corp., formerly known as TCEH Corp., to satisfy their obligations
to CenterPoint Energy and its subsidiaries; (37) changes in
technology, particularly with respect to efficient battery storage
or the emergence or growth of new, developing or alternative
sources of generation; (38) the impact of alternate energy sources
on the demand for natural gas; (39) the timing and outcome of any
audits, disputes and other proceedings related to taxes; (40) the
effective tax rates; (41) the transition to a replacement for the
LIBOR benchmark interest rate; (42) the effect of changes in and
application of accounting standards and pronouncements; and (43)
other factors discussed in CenterPoint Energy’s Annual Report on
Form 10-K for the fiscal year ended December 31, 2018, CenterPoint
Energy’s Quarterly Report on Form 10-Q for the quarters ended March
31, 2019, June 30, 2019 and September 30, 2019 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 income available to common shareholders and diluted
earnings per share, CenterPoint Energy also provides guidance based
on adjusted 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 income and
adjusted diluted earnings per share calculation excludes from
income available to common shareholders 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’s guidance for 2019 also does
not reflect (a) certain impacts associated with the Vectren merger,
which are integration and transaction-related fees and expenses,
including severance and other costs to achieve anticipated cost
savings as a result of the merger and merger financing impacts in
January, prior to the completion of the merger due to the issuance
of debt and equity securities to fund the merger that resulted in
higher net interest expense, preferred stock dividend requirements
and higher common stock share count and (b) potential impacts of
the pending Houston Electric rate case. CenterPoint Energy is
unable to present a quantitative reconciliation of forward-looking
adjusted 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 as they are highly variable and
difficult to predict due to various factors outside of management’s
control. These excluded items, along with the excluded impacts
associated with the merger and potential impacts of the pending
Houston Electric rate case, could have a material impact on GAAP
reported results for the applicable guidance period.
Management evaluates the company’s financial performance in part
based on adjusted income and adjusted diluted earnings per share.
Management believes 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 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, income
available to common shareholders 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.
CenterPoint Energy, Inc. and
Subsidiaries
Condensed Statements of
Consolidated Income
(Millions of Dollars)
(Unaudited)
Quarter Ended September
30,
Nine Months Ended September
30,
2019
2018
2019
2018
Revenues:
Utility revenues
$
1,539
$
1,299
$
5,255
$
4,534
Non-utility revenues
1,203
913
3,816
3,019
Total
2,742
2,212
9,071
7,553
Expenses:
Utility natural gas, fuel and purchased
power
179
134
1,178
959
Non-utility cost of revenues, including
natural gas
852
864
3,013
2,927
Operation and maintenance
871
567
2,616
1,714
Depreciation and amortization
334
326
987
982
Taxes other than income taxes
114
95
353
307
Total
2,350
1,986
8,147
6,889
Operating Income
392
226
924
664
Other Income (Expense):
Gain on marketable securities
59
43
206
66
Loss on indexed debt securities
(62
)
(44
)
(216
)
(316
)
Interest and other finance charges
(134
)
(90
)
(389
)
(259
)
Interest on Securitization Bonds
(9
)
(16
)
(31
)
(46
)
Equity in earnings of unconsolidated
affiliates, net
77
81
213
208
Other income, net
9
9
40
16
Total
(60
)
(17
)
(177
)
(331
)
Income Before Income Taxes
332
209
747
333
Income tax expense
62
51
113
85
Net Income
270
158
634
248
Preferred stock dividend requirement
29
5
88
5
Income Available to Common
Shareholders
$
241
$
153
$
546
$
243
Reference is made to the Combined Notes to
Unaudited Condensed 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
(Million of Dollars, Except Share
and Per Share Amounts)
(Unaudited)
Quarter Ended September
30,
Nine Months Ended September
30,
2019
2018
2019
2018
Basic Earnings Per Common Share
$
0.48
$
0.35
$
1.09
$
0.56
Diluted Earnings Per Common Share
$
0.47
$
0.35
$
1.08
$
0.56
Dividends Declared per Common Share
$
0.2875
$
0.2775
$
0.5750
$
0.5550
Dividends Paid per Common Share
$
0.2875
$
0.2775
$
0.8625
$
0.8325
Weighted Average Common Shares Outstanding
(000):
- Basic
502,228
431,554
501,986
431,437
- Diluted
505,080
434,891
504,838
434,774
Operating Income
(Loss) by Reportable Segment
Houston Electric T&D:
TDU
$
261
$
214
$
495
$
480
Bond Companies
8
13
27
43
Total Houston Electric T&D
269
227
522
523
Indiana Electric Integrated
48
—
64
—
Natural Gas Distribution
27
3
241
166
Energy Services
2
(9
)
64
(20
)
Infrastructure Services
42
—
50
—
Corporate and Other
4
5
(17
)
(5
)
Total
$
392
$
226
$
924
$
664
Reference is made to the Combined Notes to
Unaudited Condensed 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, Except
Throughput and Customer Data)
(Unaudited)
Houston Electric
T&D
Quarter Ended September
30,
% Diff
Nine Months Ended September
30,
% Diff
2019
2018
Fav/Unfav
2019
2018
Fav/Unfav
Revenues:
TDU
$
776
$
735
6
%
$
2,043
$
2,009
2
%
Bond Companies
83
162
(49
)%
270
493
(45
)%
Total
859
897
(4
)%
2,313
2,502
(8
)%
Expenses:
Operation and maintenance, excluding Bond
Companies
357
367
3
%
1,080
1,056
(2
)%
Depreciation and amortization, excluding
Bond Companies
95
95
—
282
293
4
%
Taxes other than income taxes
63
59
(7
)%
186
180
(3
)%
Bond Companies
75
149
50
%
243
450
46
%
Total expenses
590
670
12
%
1,791
1,979
9
%
Operating Income
$
269
$
227
19
%
$
522
$
523
—
Operating Income:
TDU
$
261
$
214
22
%
$
495
$
480
3
%
Bond Companies
8
13
(38
)%
27
43
(37
)%
Total Segment Operating Income
$
269
$
227
19
%
$
522
$
523
—
Actual MWH Delivered
Residential
11,224,256
10,554,656
6
%
24,392,141
24,486,317
—
Total
28,379,262
27,014,925
5
%
71,416,612
70,346,601
2
%
Weather (percentage of 10-year average
for service area):
Cooling degree days
110
%
101
%
9
%
106
%
104
%
2
%
Heating degree days
—
%
—
%
—
%
93
%
95
%
(2
)%
Number of metered customers - end of
period:
Residential
2,232,740
2,188,211
2
%
2,232,740
2,188,211
2
%
Total
2,523,450
2,475,018
2
%
2,523,450
2,475,018
2
%
Indiana Electric Integrated
(1)
Quarter Ended September 30,
2019
Nine Months Ended September
30, 2019 (1)
Revenues
$
165
$
388
Utility natural gas, fuel and purchased
power
46
112
Revenues less Utility natural gas, fuel
and purchased power
119
276
Expenses:
Operation and maintenance
42
136
Depreciation and amortization
25
66
Taxes other than income taxes
4
10
Total expenses
71
212
Operating Income
$
48
$
64
Actual MWH Delivered
Retail
1,416
3,277
Wholesale
139
291
Total
1,555
3,568
Number of metered customers - end of
period:
Residential
128,381
128,381
Total
147,337
147,337
(1) Represents February 1, 2019 through
September 30, 2019 results only due to the Merger.
Reference is made to the Combined Notes to
Unaudited Condensed 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, Except
Throughput and Customer Data)
(Unaudited)
Natural Gas Distribution
(1)
Quarter Ended September
30,
% Diff
Nine Months Ended September
30,
% Diff
2019
2018
Fav/Unfav
2019 (1)
2018
Fav/Unfav
Revenues
$
524
$
410
28
%
$
2,583
$
2,058
26
%
Utility natural gas, fuel and purchased
power
125
120
(4
)%
1,118
972
(15
)%
Revenues less Utility natural gas, fuel
and purchased power
399
290
38
%
1,465
1,086
35
%
Expenses:
Operation and maintenance
221
183
(21
)%
767
592
(30
)%
Depreciation and amortization
108
73
(48
)%
308
210
(47
)%
Taxes other than income taxes
43
31
(39
)%
149
118
(26
)%
Total expenses
372
287
(30
)%
1,224
920
(33
)%
Operating Income
$
27
$
3
800
%
$
241
$
166
45
%
Throughput data in BCF
Residential
16
13
23
%
160
123
30
%
Commercial and Industrial
88
53
66
%
326
208
57
%
Total Throughput
104
66
58
%
486
331
47
%
Weather (average for service
area)
Percentage of 10-year average:
Heating degree days
18
%
119
%
(101
)%
100
%
103
%
(3
)%
Number of customers - end of
period:
Residential
4,194,232
3,205,916
31
%
4,194,232
3,205,916
31
%
Commercial and Industrial
344,858
255,244
35
%
344,858
255,244
35
%
Total
4,539,090
3,461,160
31
%
4,539,090
3,461,160
31
%
(1) Includes acquired natural gas
operations February 1, 2019 through September 30, 2019 results only
due to the Merger.
Energy Services
Quarter Ended September
30,
% Diff
Nine Months Ended September
30,
% Diff
2019
2018
Fav/Unfav
2019
2018
Fav/Unfav
Revenues
$
745
$
920
(19
)%
$
2,846
$
3,065
(7
)%
Non-utility cost of revenues, including
natural gas
716
897
20
%
2,696
2,998
10
%
Revenues less Non-utility cost of
revenues, including natural gas
29
23
26
%
150
67
124
%
Expenses:
Operation and maintenance
23
28
18
%
73
74
1
%
Depreciation and amortization
4
4
—
12
12
—
Taxes other than income taxes
—
—
—
1
1
—
Total expenses
27
32
16
%
86
87
1
%
Operating Income (Loss)
$
2
$
(9
)
122
%
$
64
$
(20
)
420
%
Timing impacts of mark-to-market gain
(loss)
$
(2
)
$
1
(300
)%
$
47
$
(71
)
166
%
Throughput data in BCF
283
307
(8
)%
960
993
(3
)%
Number of customers - end of
period
31,000
30,000
3
%
31,000
30,000
3
%
Reference is made to the Combined Notes to
Unaudited Condensed 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, Except
Throughput and Customer Data)
(Unaudited)
Infrastructure Services
(1)
Quarter Ended September 30,
2019
Nine Months Ended September
30, 2019 (1)
Revenues
$
377
$
849
Non-utility cost of revenues, including
natural gas
96
228
Revenues less Non-utility cost of
revenues, including natural gas
281
621
Expenses:
Operation and maintenance
223
530
Depreciation and amortization
15
39
Taxes other than income taxes
1
2
Total expenses
239
571
Operating Income
$
42
$
50
Backlog at period end:
Blanket contracts
$
637
$
637
Bid contracts
301
301
Total
$
938
$
938
(1) Represents February 1, 2019 through
September 30, 2019 results only due to the Merger.
Corporate and Other
Quarter Ended September
30,
% Diff
Nine Months Ended September
30,
% Diff
2019
2018
Fav/Unfav
2019 (1)
2018
Fav/Unfav
Revenues
$
93
$
3
3,000
%
$
215
$
11
1,855
%
Non-utility cost of revenues, including
natural gas
68
—
—
158
—
—
Revenues less Non-utility cost of
revenues, including natural gas
25
3
733
%
57
11
418
%
Expenses:
Operation and maintenance
2
(13
)
(115
)%
25
(14
)
(279
)%
Depreciation and amortization
16
9
(78
)%
44
24
(83
)%
Taxes other than income taxes
3
2
(50
)%
5
6
17
%
Total expenses
21
(2
)
(1,150
)%
74
16
(363
)%
Operating Income (Loss)
$
4
$
5
(20
)%
$
(17
)
$
(5
)
(240
)%
(1) Includes acquired corporate and other
operations February 1, 2019 through September 30, 2019 results only
due to the Merger.
Reference is made to the Combined Notes to
Unaudited Condensed 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, Except
Throughput and Customer Data)
(Unaudited)
Capital Expenditures by
Segment
Quarter Ended September
30,
Nine Months Ended September
30,
2019
2018
2019 (1)
2018
Houston Electric T & D
$
239
$
252
$
722
$
669
Indiana Electric Integrated
46
—
135
—
Natural Gas Distribution
324
170
773
409
Energy Services
—
5
9
13
Infrastructure Services
14
—
52
—
Corporate and Other
43
7
137
35
Total
$
666
$
434
$
1,828
$
1,126
(1) Includes capital expenditures of
acquired businesses from February 1, 2019 through September 30,
2019 only due to the Merger.
Interest Expense
Detail
Quarter Ended September
30,
Nine Months Ended September
30,
2019
2018
2019
2018
Amortization of Deferred Financing
Cost
$
8
$
16
$
22
$
34
Capitalization of Interest Cost
(10
)
(2
)
(29
)
(6
)
Securitization Bonds Interest Expense
9
16
31
46
Other Interest Expense
136
76
396
231
Total Interest Expense
$
143
$
106
$
420
$
305
Reference is made to the Combined Notes to
Unaudited Condensed 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)
September 30, 2019
December 31, 2018
ASSETS
Current Assets:
Cash and cash equivalents
$
259
$
4,231
Other current assets
3,157
2,794
Total current assets
3,416
7,025
Property, Plant and Equipment,
net
20,328
14,044
Other Assets:
Goodwill
5,179
867
Regulatory assets
2,194
1,967
Investment in unconsolidated
affiliates
2,469
2,482
Preferred units – unconsolidated
affiliate
363
363
Other non-current assets
693
261
Total other assets
10,898
5,940
Total Assets
$
34,642
$
27,009
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current Liabilities:
Current portion of securitization bonds
long-term debt
229
458
Indexed debt
21
24
Current portion of other long-term
debt
618
—
Other current liabilities
2,566
2,820
Total current liabilities
3,434
3,302
Other Liabilities:
Accumulated deferred income taxes, net
3,851
3,239
Regulatory liabilities
3,481
2,525
Other non-current liabilities
1,516
1,203
Total other liabilities
8,848
6,967
Long-term Debt:
Securitization bonds
817
977
Other
13,197
7,705
Total long-term debt
14,014
8,682
Shareholders' Equity
8,346
8,058
Total Liabilities and Shareholders'
Equity
$
34,642
$
27,009
Reference is made to the Combined Notes to
Unaudited Condensed 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)
Nine Months Ended September
30,
2019
2018
Net income
$
634
$
248
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
1,028
1,016
Deferred income taxes
8
33
Write-down of natural gas inventory
5
2
Equity in earnings of unconsolidated
affiliates, net of distributions
13
(15
)
Changes in net regulatory assets and
liabilities
(101
)
44
Changes in other assets and
liabilities
(511
)
341
Other, net
10
10
Net cash provided by operating
activities
1,086
1,679
Net cash used in investing
activities
(7,775
)
(674
)
Net cash provided by (used in)
financing activities
2,708
(970
)
Net Increase (Decrease) in Cash, Cash
Equivalents and Restricted Cash
(3,981
)
35
Cash, Cash Equivalents and Restricted
Cash at Beginning of Period
4,278
296
Cash, Cash Equivalents and Restricted
Cash at End of Period
$
297
$
331
Reference is made to the Combined Notes to
Unaudited Condensed Consolidated Financial Statements contained in
the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191107005242/en/
Media: Alicia Dixon Phone 713.825.9107
Investors: David Mordy Phone 713.207.6500
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