TGN Texas Genco Hldgs

Texas Genco Reports Improved First Quarter 2004 Results HOUSTON, April 22 /PRNewswire-FirstCall/ -- Texas Genco Holdings, Inc. , an 81 percent-owned subsidiary of CenterPoint Energy, Inc. , today reported net income of $61 million, or $0.76 per share, for the first quarter of 2004 compared to a loss of $11 million, or $0.14 per share, for the same period of 2003 before the effect of an accounting change in that period. Net income for the first quarter of 2003 was $88 million, or $1.10 per share, including a non-cash gain of $99 million ($1.24 per share) from the adoption of Statement of Financial Accounting Standards No. 143, "Accounting for Asset Retirement Obligations". (Logo: http://www.newscom.com/cgi-bin/prnh/20030127/DAM020LOGO ) "Our first quarter earnings were significantly better than the first quarter of last year," said David Tees, president and chief executive officer of Texas Genco. "We continue to benefit from higher wholesale electricity prices which are driven by high natural gas prices. In addition, our solid fuel baseload generating units operated well, which when combined with the higher electricity prices, produced a significant improvement in our financial performance for the quarter." Texas Genco reported increased revenues compared to the same period of 2003, continuing to benefit from increased prices for baseload products. Operation and maintenance expenses for the first quarter of 2004 were lower than the prior year. The first quarter of 2004 had lower expenses associated with planned and unplanned outages compared to the same quarter of 2003. 2004 OUTLOOK The company reiterated its full year 2004 earnings estimate of $3.35 - $3.75 per share. This estimate reflects over $1 billion of capacity revenues under contract for 2004, including approximately 94 percent of its available baseload capacity. Earnings for 2004 will be highly dependent on the operating performance of the company's baseload generating units. WEBCAST OF EARNINGS CONFERENCE CALL The management of Texas Genco will host an earnings conference call on Thursday, April 22, 2004, at 9 a.m. Central time. Interested parties may listen to a live, audio broadcast of the conference call at http://www.txgenco.com/investor.html . A replay can be accessed approximately two hours after the completion of the call, and will be archived on the Web site for at least one year. Texas Genco Holdings, Inc., based in Houston, Texas, is one of the largest wholesale electric power generating companies in the United States with over 14,000 megawatts of generation capacity, of which nearly 3,000 megawatts are currently in mothball status. It sells electric generation capacity, energy and ancillary services in one of the nation's largest power markets, the Electric Reliability Council of Texas (ERCOT). Texas Genco has one of the most diversified generation portfolios in Texas, using natural gas, oil, coal, lignite, and uranium fuels. The company owns and operates 60 generating units at 11 electric power-generating facilities and owns a 30.8 percent interest in a nuclear generating plant. Texas Genco currently is a majority-owned subsidiary of CenterPoint Energy, Inc. For more information, visit our web site at http://www.txgenco.com/ . This news release includes forward-looking statements. Actual events and results may differ materially from those projected. The statements in this news release regarding future financial performance and results of operations and other statements that are not historical facts are forward-looking statements. Factors that could affect actual results include the timing and impact of future regulatory and legislative decisions, effects of competition, weather variations, changes in Texas Genco's business plans, financial market conditions, the timing and extent of changes in commodity prices, particularly natural gas, the impact of unplanned plant outages and other factors discussed in Texas Genco's Form 10-K for the period ended December 31, 2003 and other filings with the Securities and Exchange Commission. Texas Genco Holdings, Inc. Statements of Consolidated Income (Thousands of Dollars) (Unaudited) Quarter Ended March 31, 2004 2003 Revenues 439,129 358,587 Expenses: Fuel 186,315 207,989 Purchased power 8,270 11,994 Operation and maintenance 101,327 105,350 Depreciation and amortization 40,369 39,079 Taxes other than income taxes 12,256 11,291 Total 348,537 375,703 Operating Income (Loss) 90,592 (17,116) Other Income 388 200 Interest Expense (26) (2,803) Income (Loss) Before Income Taxes and Cumulative Effect of Accounting Change 90,954 (19,719) Income Tax Benefit (Expense) (30,062) 8,837 Income (Loss) Before Cumulative Effect of Accounting Change 60,892 (10,882) Cumulative Effect of Accounting Change, net of tax --- 98,910 Net Income Attributable to Common Shareholders $60,892 $88,028 Basic and Diluted Earnings Per Common Share: Income (Loss) Before Cumulative Effect of Accounting Change $0.76 $(0.14) Cumulative Effect of Accounting Change, net of tax --- 1.24 Net Income Attributable to Common Shareholders $0.76 $1.10 Dividends Declared per Common Share $0.25 $0.25 Weighted Average Common Shares Outstanding (000): - Basic 80,000 80,000 - Diluted 80,000 80,000 Capital Expenditures $24,060 $44,662 Operating Data: Sales (MWH) 10,720,778 9,276,344 Generation (MWH) 10,149,190 8,994,753 Reference is made to the Notes to the Consolidated Financial Statements contained in the Annual Report on Form 10-K of Texas Genco Holdings, Inc. Texas Genco Holdings, Inc. Condensed Consolidated Balance Sheets (Thousands of Dollars) (Unaudited) March 31, December 31, 2004 2003 ASSETS Current Assets: Cash $309 $33 Short-term investments --- 44,525 Short-term note receivable-affiliate 52,155 --- Inventory 168,850 169,692 Other current assets 68,915 84,142 Total current assets 290,229 298,392 Property, Plant and Equipment, net 4,101,621 4,125,595 Other Assets: Nuclear decommissioning trust 201,310 189,182 Other non-current assets 26,198 26,462 Total other assets 227,508 215,644 Total Assets $4,619,358 $4,639,631 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable and other accrued liabilities $164,381 $224,319 Deferred capacity auction revenue 82,318 86,853 Other current liabilities 16,289 17,579 Total current liabilities 262,988 328,751 Other Liabilities: Accumulated deferred income taxes, net and investment tax credit 986,366 995,078 Nuclear decommissioning reserve 190,394 187,997 Other non-current liabilities 105,557 94,644 Total other liabilities 1,282,317 1,277,719 Shareholders' Equity 3,074,053 3,033,161 Total Liabilities and Shareholders' Equity $4,619,358 $4,639,631 Reference is made to the Notes to the Consolidated Financial Statements contained in the Annual Report on Form 10-K of Texas Genco Holdings, Inc. Texas Genco Holdings, Inc. Condensed Statements of Consolidated Cash Flows (Thousands of Dollars) (Unaudited) Three Months Ended March 31, 2004 2003 Cash Flows from Operating Activities: Net income attributable to common shareholders $60,892 $88,028 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization, including fuel-related amortization 47,559 45,614 Deferred income taxes and investment tax credit (6,226) (8,008) Cumulative effect of accounting change, net --- (98,910) Changes in other assets and liabilities (51,162) (63,654) Net Cash Provided by (Used in) Operating Activities 51,063 (36,930) Cash Flows from Investing Activities: Capital expenditures and other (23,051) (44,340) Increase in notes receivable- affiliate (52,155) --- Net Cash Used in Investing Activities (75,206) (44,340) Net Cash Provided by (Used in) Financing Activities (20,106) 82,099 Net Increase (Decrease) in Cash and Cash Equivalents (44,249) 829 Cash and Cash Equivalents at Beginning of Period 44,558 578 Cash and Cash Equivalents at End of Period $309 $1,407 Reference is made to the Notes to the Consolidated Financial Statements contained in the Annual Report on Form 10-K of Texas Genco Holdings, Inc. http://www.newscom.com/cgi-bin/prnh/20030127/DAM020LOGO http://photoarchive.ap.org/ DATASOURCE: Texas Genco Holdings, Inc. CONTACT: media, Leticia Lowe, +1-713-207-7702, or investors, Marianne Paulsen, +1-713-207-6500, both of Texas Genco Holdings, Inc. Web site: http://www.txgenco.com/ http://www.txgenco.com/investor.html

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