• Reiterate 2019 EPS guidance and 5-year
guidance basis EPS growth target
• Utility Operations led company to a strong
second quarter performance
CenterPoint Energy, Inc. (NYSE: CNP) today reported income
available to common shareholders of $165 million, or $0.33 per
diluted share, for the second quarter of 2019, compared with a loss
of $75 million, or $0.17 per diluted share for the second quarter
of 2018. On a guidance basis, second quarter 2019 earnings were
$0.35 per diluted share, excluding certain impacts associated with
the Vectren merger (the merger). Second quarter 2018 earnings, on a
guidance basis and excluding certain impacts associated with the
merger, were $0.30 per diluted share. “We remain confident in our
anticipated 2019 full-year results driven by strong performance
from our utility operations and a continued focus on cost
management,” said Scott M. Prochazka, president and chief executive
officer of CenterPoint Energy. “Integration efforts continue to
progress well, and we’re pleased with the strong cash flows from
our non-utility businesses. These businesses continue to be a
source of cash for utility investment, which promotes growth for
and strengthens our utility infrastructure allowing us to serve our
customers.”
Business Segments
Houston Electric - Transmission & Distribution
The Houston electric - transmission & distribution segment
reported operating income of $169 million for the second quarter of
2019, consisting of $160 million from the regulated electric
transmission and distribution utility operations (TDU) and $9
million related to securitization bonds. Operating income for the
second quarter of 2018 was $181 million, consisting of $167 million
from the TDU and $14 million related to securitization bonds.
Operating income for the TDU benefited primarily from rate relief,
customer growth and lower operation and maintenance expenses. These
benefits were more than offset by lower usage primarily due to a
return to more normal weather, lower equity return, primarily
related to the annual true-up of transition charges, increased
depreciation and amortization expense and lower revenues related to
the Tax Cuts and Jobs Act (TCJA).
Indiana Electric – Integrated
The Indiana electric – integrated segment reported operating
income of $25 million for the second quarter of 2019. These results
are not comparable to the second quarter of 2018 as this segment
was acquired in the merger.
Natural Gas Distribution
The natural gas distribution segment reported operating income
of $47 million for the second quarter of 2019, compared with $7
million for the second quarter of 2018. Operating income increased
$19 million due to the gas utilities acquired in the merger. The
remaining increase is primarily due to the timing of a decoupling
mechanism in Minnesota, rate relief, lower operation and
maintenance expenses and customer growth. These increases were
partially offset by increased depreciation and amortization expense
and lower revenues related to the TCJA.
Energy Services
The energy services segment reported operating income of $29
million for the second quarter of 2019, which included a
mark-to-market gain of $30 million, compared with operating income
of $15 million for the second quarter of 2018, which included a
mark-to-market gain of $8 million. Excluding mark-to-market
adjustments, the operating loss was $1 million for the second
quarter of 2019 compared with operating income of $7 million for
the second quarter of 2018. Operating income, excluding
mark-to-market adjustments, decreased primarily due to a reduction
in margins resulting from the impact of less price volatility on
natural gas storage activity and increased operation and
maintenance expenses.
Infrastructure Services
The infrastructure services segment reported operating income of
$24 million for the second quarter of 2019. Operating income
includes $7 million of merger-related expenses. These results are
not comparable to the second quarter of 2018 as this segment was
acquired in the merger.
Midstream Investments
The midstream investments segment reported $74 million of equity
income for the second quarter of 2019, compared with $58 million in
the second quarter of 2018.
Corporate and Other
The corporate and other segment reported an operating loss of $7
million for the second quarter of 2019, compared with an operating
loss of $16 million for the second quarter of 2018. The operating
loss for the second quarter of 2019 included $32 million of
merger-related expenses. The operating loss for the second quarter
of 2018 included $27 million of merger-related expenses.
Earnings Outlook
- 2019 guidance basis EPS range of $1.60 - $1.70, excluding
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
- 2020 guidance range to be provided on fourth quarter 2019
earnings call following normal annual financial planning
process
- Fundamentals remain strong and company continues to target 5 -
7% compound annual guidance basis EPS growth for 2018-2023, using
$1.60 as the starting EPS
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, 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 2nd quarter earnings call on August 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, 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
June 30, 2019
June 30, 2018
Dollars in millions
Diluted EPS
Dollars in millions
Diluted EPS
Consolidated income (loss) available to
common shareholders and diluted EPS
$
165
$
0.33
$
(75
)
$
(0.17
)
Timing effects impacting CES
(1):
Mark-to-market (gains) losses (net of
taxes of $7 and $2) (2)
(23
)
(0.05
)
(6
)
(0.01
)
ZENS-related mark-to-market (gains)
losses:
Marketable securities (net of taxes of $14
and $4) (2)(3)
(50
)
(0.10
)
(18
)
(0.04
)
Indexed debt securities (net of taxes of
$15 and $54) (2)(4)
53
0.11
200
0.46
Consolidated on a guidance
basis
$
145
$
0.29
$
101
$
0.24
Impacts associated with the Vectren
merger:
Impacts associated with the Vectren merger
(net of taxes of $10 and $8) (2)
32
0.06
26
0.06
Consolidated on a guidance basis,
excluding impacts associated with the Vectren merger
$
177
$
0.35
$
127
$
0.30
(1)
Energy Services segment
(2)
Taxes are computed based on the impact
removing such item would have on tax expense.
(3)
As of and after June 14, 2018, comprised
of common stock of AT&T Inc. and Charter Communications, Inc.
Prior to June 14, 2018, comprised of common stock of Time Warner,
Inc. and Charter Communications, Inc.
(4)
2018 results include amount associated
with the acquisition of Time Warner Inc. by AT&T 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 June 30, 2019. 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 Wednesday, August 7, 2019, 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.
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 53.8 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 $34 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)
changes in tax status; and (G) 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 timing and outcome of any audits,
disputes and other proceedings related to taxes; (39) the effective
tax rates; (40) the transition to a replacement for the LIBOR
benchmark interest rate; (41) the effect of changes in and
application of accounting standards and pronouncements; and (42)
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 and June 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 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. 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, 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 June 30,
Six Months Ended June
30,
2019
2018
2019
2018
Revenues:
Utility revenues
$
1,555
$
1,341
$
3,716
$
3,235
Non-utility revenues
1,243
845
2,613
2,106
Total
2,798
2,186
6,329
5,341
Expenses:
Utility natural gas, fuel and purchased
power
264
188
999
825
Non-utility cost of revenues, including
natural gas
910
790
2,161
2,063
Operation and maintenance
884
578
1,745
1,147
Depreciation and amortization
340
342
653
656
Taxes other than income taxes
113
101
239
212
Total
2,511
1,999
5,797
4,903
Operating Income
287
187
532
438
Other Income (Expense):
Gain on marketable securities
64
22
147
23
Loss on indexed debt securities
(68
)
(254
)
(154
)
(272
)
Interest and other finance charges
(134
)
(91
)
(255
)
(169
)
Interest on Securitization Bonds
(10
)
(14
)
(22
)
(30
)
Equity in earnings of unconsolidated
affiliates, net
74
58
136
127
Other income, net
11
4
31
7
Total
(63
)
(275
)
(117
)
(314
)
Income (Loss) Before Income
Taxes
224
(88
)
415
124
Income tax expense (benefit)
29
(13
)
51
34
Net Income (Loss)
195
(75
)
364
90
Preferred stock dividend requirement
30
—
59
—
Income (Loss) Available to Common
Shareholders
$
165
$
(75
)
$
305
$
90
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 June 30,
Six Months Ended June
30,
2019
2018
2019
2018
Basic Earnings (Loss) Per Common Share
$
0.33
$
(0.17
)
$
0.61
$
0.21
Diluted Earnings (Loss) Per Common
Share
$
0.33
$
(0.17
)
$
0.61
$
0.21
Dividends Declared per Common Share
$
0.2875
$
0.2775
$
0.2875
$
0.2775
Dividends Paid per Common Share
$
0.2875
$
0.2775
$
0.5750
$
0.5550
Weighted Average Common Shares Outstanding
(000):
- Basic
502,200
431,523
501,862
431,378
- Diluted
504,831
431,523
504,493
434,407
Operating Income (Loss) by Reportable
Segment
Houston Electric T&D:
TDU
$
160
$
167
$
234
$
266
Bond Companies
9
14
19
30
Total Houston Electric T&D
169
181
253
296
Indiana Electric Integrated
25
—
16
—
Natural Gas Distribution
47
7
214
163
Energy Services
29
15
62
(11
)
Infrastructure Services
24
—
8
—
Corporate and Other
(7
)
(16
)
(21
)
(10
)
Total
$
287
$
187
$
532
$
438
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 June 30,
% Diff
Six Months Ended June
30,
% Diff
2019
2018
Fav/Unfav
2019
2018
Fav/Unfav
Revenues:
TDU
$
672
$
676
(1
)%
$
1,267
$
1,274
(1
)%
Bond Companies
93
178
(48
)%
187
331
(44
)%
Total
765
854
(10
)%
1,454
1,605
(9
)%
Expenses:
Operation and maintenance, excluding Bond
Companies
357
349
(2
)%
723
689
(5
)%
Depreciation and amortization, excluding
Bond Companies
94
100
6
%
187
198
6
%
Taxes other than income taxes
61
60
(2
)%
123
121
(2
)%
Bond Companies
84
164
49
%
168
301
44
%
Total
596
673
11
%
1,201
1,309
8
%
Operating Income
$
169
$
181
(7
)%
$
253
$
296
(15
)%
Operating Income:
TDU
$
160
$
167
(4
)%
$
234
$
266
(12
)%
Bond Companies
9
14
(36
)%
19
30
(37
)%
Total Segment Operating Income
$
169
$
181
(7
)%
$
253
$
296
(15
)%
Actual MWH Delivered
Residential
7,985,246
8,326,799
(4
)%
13,167,885
13,931,661
(5
)%
Total
24,018,365
23,687,921
1
%
43,037,350
43,331,676
(1
)%
Weather (percentage of 10-year average
for service area):
Cooling degree days
103
%
101
%
2
%
101
%
109
%
(8
)%
Heating degree days
171
%
169
%
2
%
93
%
95
%
(2
)%
Number of metered customers - end of
period:
Residential
2,217,326
2,179,048
2
%
2,217,326
2,179,048
2
%
Total
2,506,124
2,463,500
2
%
2,506,124
2,463,500
2
%
Indiana Electric Integrated
(1)
Quarter Ended June 30,
2019
Six Months Ended June
30, 2019 (1)
Revenues
$
140
$
223
Utility natural gas, fuel and purchased
power
40
66
Revenues less Utility natural gas, fuel
and purchased power
100
157
Expenses:
Operation and maintenance
46
94
Depreciation and amortization
25
41
Taxes other than income taxes
4
6
Total expenses
75
141
Operating Income
$
25
$
16
Actual MWH Delivered
Retail
1,157
1,861
Wholesale
94
152
Total
1,251
2,013
Number of metered customers - end of
period:
Residential
128,167
128,167
Total
147,076
147,076
(1) Represents February 1, 2019 through
June 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
Quarter Ended June 30,
% Diff
Six Months Ended June
30,
% Diff
2019
2018
Fav/Unfav
2019 (1)
2018
Fav/Unfav
Revenues
$
660
$
495
33
%
$
2,059
$
1,648
25
%
Utility natural gas, fuel and purchased
power
222
185
(20
)%
993
852
(17
)%
Revenues less Utility natural gas, fuel
and purchased power
438
310
41
%
1,066
796
34
%
Expenses:
Operation and maintenance
239
196
(22
)%
546
409
(33
)%
Depreciation and amortization
105
69
(52
)%
200
137
(46
)%
Taxes other than income taxes
47
38
(24
)%
106
87
(22
)%
Total
391
303
(29
)%
852
633
(35
)%
Operating Income
$
47
$
7
571
%
$
214
$
163
31
%
Throughput data in BCF
Residential
30
23
30
%
144
110
31
%
Commercial and Industrial
102
61
67
%
238
155
54
%
Total Throughput
132
84
57
%
382
265
44
%
Weather (average for service
area)
Percentage of 10-year average:
Heating degree days
93
%
130
%
(37
)%
101
%
103
%
(2
)%
Number of customers - end of
period:
Residential
4,195,222
3,204,897
31
%
4,195,222
3,204,897
31
%
Commercial and Industrial
347,092
255,115
36
%
347,092
255,115
36
%
Total
4,542,314
3,460,012
31
%
4,542,314
3,460,012
31
%
(1) Includes acquired natural gas
operations February 1, 2019 through June 30, 2019 results only due
to the Merger.
Energy Services
Quarter Ended June 30,
% Diff
Six Months Ended June
30,
% Diff
2019
2018
Fav/Unfav
2019
2018
Fav/Unfav
Revenues
$
855
$
860
(1
)%
$
2,101
$
2,145
(2
)%
Non-utility cost of revenues, including
natural gas
798
820
3
%
1,980
2,101
6
%
Revenues less Non-utility cost of
revenues, including natural gas
57
40
43
%
121
44
175
%
Expenses:
Operation and maintenance
25
21
(19
)%
50
46
(9
)%
Depreciation and amortization
3
3
—
8
8
—
Taxes other than income taxes
—
1
—
1
1
—
Total
28
25
(12
)%
59
55
(7
)%
Operating Income (Loss)
$
29
$
15
93
%
$
62
$
(11
)
664
%
Timing impacts of mark-to-market gain
(loss)
$
30
$
8
275
%
$
49
$
(72
)
168
%
Throughput data in BCF
297
311
(5
)%
677
686
(1
)%
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 June 30,
2019
Six Months Ended June
30, 2019 (1)
Revenues
$
326
$
472
Non-utility cost of revenues, including
natural gas
89
132
Revenues less Non-utility cost of
revenues, including natural gas
237
340
Expenses:
Operation and maintenance
197
307
Depreciation and amortization
15
24
Taxes other than income taxes
1
1
Total expenses
213
332
Operating Income
$
24
$
8
Backlog at period end:
Blanket contracts
$
616
$
616
Bid contracts
317
317
Total
$
933
$
933
(1) Represents February 1, 2019 through
June 30, 2019 results only due to the Merger.
Corporate and Other
Quarter Ended June 30,
% Diff
Six Months Ended June
30,
% Diff
2019
2018
Fav/Unfav
2019 (1)
2018
Fav/Unfav
Revenues
$
80
$
4
1,900
%
$
122
$
8
1,425
%
Non-utility cost of revenues, including
natural gas
53
—
—
90
—
—
Revenues less Non-utility cost of
revenues, including natural gas
27
4
575
%
32
8
300
%
Expenses:
Operation and maintenance
19
11
(73
)%
23
(1
)
(2,400
)%
Depreciation and amortization
15
7
(114
)%
28
15
(87
)%
Taxes other than income taxes
—
2
—
2
4
50
%
Total expenses
34
20
(70
)%
53
18
(194
)%
Operating Loss
$
(7
)
$
(16
)
56
%
$
(21
)
$
(10
)
(110
)%
(1) Includes acquired corporate and other
operations February 1, 2019 through June 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 June 30,
Six Months Ended June
30,
2019
2018
2019 (1)
2018
(in millions)
(in millions)
Houston Electric T & D
$
248
$
210
$
483
$
417
Indiana Electric Integrated
52
—
89
—
Natural Gas Distribution
283
146
449
239
Energy Services
6
3
9
8
Infrastructure Services
19
—
38
—
Corporate and Other
26
10
94
28
Total
$
634
$
369
$
1,162
$
692
(1) Includes capital expenditures of
acquired businesses from February 1, 2019 through June 30, 2019
only due to the Merger.
Interest Expense
Detail
Quarter Ended June 30,
Six Months Ended June
30,
2019
2018
2019
2018
(in millions)
(in millions)
Amortization of Deferred Financing
Cost
$
7
$
13
$
14
$
18
Capitalization of Interest Cost
(10
)
(2
)
(19
)
(4
)
Securitization Bonds Interest Expense
10
14
22
30
Other Interest Expense
137
80
260
155
Total Interest Expense
$
144
$
105
$
277
$
199
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)
June 30, 2019
December 31, 2018
ASSETS
Current Assets:
Cash and cash equivalents
$
271
$
4,231
Other current assets
3,055
2,794
Total current assets
3,326
7,025
Property, Plant and Equipment,
net
19,932
14,044
Other Assets:
Goodwill
5,179
867
Regulatory assets
2,228
1,967
Investment in unconsolidated
affiliates
2,470
2,482
Preferred units – unconsolidated
affiliate
363
363
Other non-current assets
691
261
Total other assets
10,931
5,940
Total Assets
$
34,189
$
27,009
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current Liabilities:
Current portion of securitization bonds
long-term debt
349
458
Indexed debt
22
24
Current portion of other long-term
debt
117
—
Other current liabilities
2,508
2,820
Total current liabilities
2,996
3,302
Other Liabilities:
Accumulated deferred income taxes, net
3,805
3,239
Regulatory liabilities
3,467
2,525
Other non-current liabilities
1,543
1,203
Total other liabilities
8,815
6,967
Long-term Debt:
Securitization bonds
845
977
Other
13,276
7,705
Total long-term debt
14,121
8,682
Shareholders' Equity
8,257
8,058
Total Liabilities and Shareholders'
Equity
$
34,189
$
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)
Six Months Ended June
30,
2019
2018
Net income
$
364
$
90
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
679
674
Deferred income taxes
(21
)
(12
)
Write-down of natural gas inventory
3
1
Equity in earnings of unconsolidated
affiliates, net of distributions
12
(9
)
Changes in net regulatory assets
(77
)
57
Changes in other assets and
liabilities
(395
)
284
Other, net
9
8
Net cash provided by operating
activities
574
1,093
Net cash used in investing
activities
(7,149
)
(267
)
Net cash provided by (used in)
financing activities
2,629
(756
)
Net Increase (Decrease) in Cash, Cash
Equivalents and Restricted Cash
(3,946
)
70
Cash, Cash Equivalents and Restricted
Cash at Beginning of Period
4,278
296
Cash, Cash Equivalents and Restricted
Cash at End of Period
$
332
$
366
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/20190807005220/en/
Media: Alicia Dixon Phone 713.825.9107
Investors: David Mordy Phone 713.207.6500
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