CenterPoint Energy reports second quarter 2017 earnings of $0.31 per diluted share; $0.29 per diluted share on a guidance basis

HOUSTON, Aug. 3, 2017 /PRNewswire/ -- CenterPoint Energy, Inc. (NYSE: CNP) today reported net income of $135 million, or $0.31 per diluted share, for the second quarter of 2017, compared with a net loss of $2 million, or a loss of $0.01 per diluted share for the same period of the prior year. On a guidance basis, second quarter 2017 earnings were $0.29 per diluted share, consisting of $0.20 from utility operations and $0.09 from midstream investments. Second quarter 2016 earnings on a guidance basis were $0.17 per diluted share, consisting of $0.14 from utility operations and $0.03 from midstream investments.

Operating income for the second quarter of 2017 was $223 million, compared with $182 million in the second quarter of the prior year. Equity income from midstream investments was $59 million for the second quarter of 2017, compared with $31 million for the second quarter of the prior year.

"We are very pleased with strong second quarter results," said Scott M. Prochazka, president and chief executive officer of CenterPoint Energy. "All four of our business segments performed well this quarter."

Business Segments

Electric Transmission & Distribution

The electric transmission & distribution segment reported operating income of $164 million for the second quarter of 2017, consisting of $144 million from the regulated electric transmission & distribution utility operations (TDU) and $20 million related to securitization bonds. Operating income for the second quarter of 2016 was $158 million, consisting of $135 million from the TDU and $23 million related to securitization bonds.

Operating income for the TDU benefited primarily from rate relief and customer growth. These benefits were partially offset by higher depreciation and amortization expense, other taxes and lower equity return.

Natural Gas Distribution

The natural gas distribution segment reported operating income of $37 million for the second quarter of 2017, compared with $20 million for the same period of 2016. Operating income benefited primarily from rate relief, customer growth and favorable usage due to timing of a decoupling adjustment. These benefits were partially offset by higher depreciation and amortization expense and other taxes. In addition, operating income benefited from $10 million of adjustments related to the Texas Gulf rate order, including the recording of a $16 million regulatory asset, and the corresponding reduction in expense, to recover prior post-retirement expenses in future rates, which was partially offset by a $6 million operations and maintenance expense adjustment that is primarily timing related.

Energy Services

The energy services segment reported operating income of $16 million for the second quarter of 2017, which included a mark-to-market gain of $6 million. In comparison, operating income for the same period in 2016 was $-0- , which included a mark-to-market loss of $7 million. Excluding mark-to-market adjustments, operating income was $10 million for the second quarter of 2017, compared with $7 million for the same period in 2016. The $3 million increase in operating income was primarily due to an increase in throughput and number of customers related to the acquisition of Atmos Energy Marketing in 2017.

Midstream Investments

The midstream investments segment reported $59 million of equity income for the second quarter of 2017, compared with $31 million in the second quarter of the prior year.

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.

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 Aug. 1, 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.

                                  Quarter Ended
                                 -------------

                           June 30, 2017          June 30, 2016
                           -------------         -------------

                             Net Income            Diluted EPS            Net Income         Diluted EPS
                           (in millions)                                (in millions)
                           ------------                                 ------------


    Consolidated net
     income and diluted
     EPS as reported                        $135                  $0.31                 $(2)              $(0.01)

    Midstream Investments                   (37)                (0.09)                (13)               (0.03)

    Utility Operations (1)                    98                   0.22                 (15)               (0.04)
                                             ---                   ----                  ---                 -----


    Timing effects
     impacting CES(2):

    Mark-to-market
     (gains) losses (net
     of taxes of $3 and
     $3)(3)                                  (3)                (0.01)                   4                  0.01


    ZENS-related mark-
     to-market (gains)
     losses:

    Marketable securities
     (net of taxes of $7
     and $6) (3)(4)                         (16)                (0.04)                (14)               (0.03)

    Indexed debt
     securities (net of
     taxes of $4 and $45)
     (3)(5)                                    9                   0.03                   85                  0.20


    Utility operations
     earnings on an
     adjusted guidance
     basis                                   $88                  $0.20                  $60                 $0.14
                                             ---                  -----                  ---                 -----


    Adjusted net income
     and adjusted diluted
     EPS used in providing
     earnings guidance:

    Utility Operations on
     a guidance basis                        $88                  $0.20                  $60                 $0.14

    Midstream Investments                     37                   0.09                   13                  0.03

    Consolidated on a
     guidance basis                         $125                  $0.29                  $73                 $0.17
                                            ====                  =====                  ===                 =====

    (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.

    (5)             2016 includes
                    amount
                    associated with
                    the Charter
                    Communications,
                    Inc. and Time
                    Warner Cable
                    Inc. merger

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 June 30, 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 Thurs., Aug. 3, 2017, 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.

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, please visit 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 and changes in regulation and legislation pertaining to trade, health care, finance and actions regarding the rates charged by CenterPoint Energy's regulated businesses; (2) local, 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 regulatory approval, 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 the effects of geographic and seasonal commodity price differentials; (9) weather variations and other natural phenomena, including the impact of severe weather events on operations and capital from; (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 such as fires, earthquakes, explosions, leaks, floods, droughts, hurricanes, pandemic health events or other occurrences ; (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) the extent and effectiveness of CenterPoint Energy's risk management and hedging activities, including, but not limited to, its financial hedges and weather hedges; (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, currently the subject of bankruptcy proceedings, to satisfy their obligations to CenterPoint Energy and its subsidiaries, including indemnity obligations; (20) the ability of retail electric providers, including affiliates of NRG Energy, Inc. and Vistra Energy Corp., formerly known as TCEH Corp., to satisfy their obligations to CenterPoint Energy and its subsidiaries; (21) the outcome of litigation; (22) CenterPoint Energy's ability to control operation and maintenance costs; (23) the investment performance of pension and postretirement benefit plans; (24) CenterPoint Energy's or Enable's potential business strategies and strategic initiatives, including restructurings, joint ventures, and acquisitions or dispositions of assets or businesses (including a reduction of CenterPoint Energy's interests in Enable, whether through its election to sell the common units it owns in the public equity markets or otherwise, subject to certain limitations) , for which no assurance can be given that they will be completed or will provide the anticipated benefits to CenterPoint Energy or Enable Midstream; (25) acquisition and merger 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, Enable Midstream's ability to redeem its Series A Preferred Units in certain circumstances 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 rates; (30) tax reform and legislation; (31) the effect of changes in and application of accounting standards and pronouncements; and (32) other factors discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2016, as well as in CenterPoint Energy's Quarterly Report on Form 10-Q for the quarter ended March 31, 2017 and June 30, 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.

                                                 CenterPoint Energy, Inc. and Subsidiaries

                                                     Statements of Consolidated Income

                                                           (Millions of Dollars)

                                                                (Unaudited)



                                         Quarter Ended                    Six Months Ended

                                           June 30,                           June 30,
                                           --------                           --------

                                                      2017                                2016    2017     2016
                                                      ----                                ----    ----     ----



    Revenues:

    Utility revenues                                $1,222                              $1,177  $2,768   $2,725

    Non-utility revenues                               921                                 397   2,110      833

    Total                                            2,143                               1,574   4,878    3,558
                                                     -----                               -----   -----    -----


    Expenses:

    Utility natural gas                                150                                 126     600      564

    Non-utility natural gas                            882                                 370   2,011      784

    Operation and maintenance                          535                                 513   1,095    1,034

    Depreciation and amortization                      254                                 289     480      549

    Taxes other than income taxes                       99                                  94     195      195

    Total                                            1,920                               1,392   4,381    3,126
                                                     -----                               -----   -----    -----

    Operating Income                                   223                                 182     497      432
                                                       ---                                 ---     ---      ---


    Other Income (Expense):

    Gain on marketable securities                       23                                  20      67      110

    Loss on indexed debt securities                   (13)                              (130)   (23)   (186)

    Interest and other finance charges                (77)                               (86)  (155)   (173)

    Interest on securitization bonds                  (20)                               (23)   (40)    (47)

    Equity in earnings of unconsolidated
     affiliate                                          59                                  31     131       91

    Other - net                                         16                                  14      33       21
                                                                                                 ---      ---

    Total                                             (12)                              (174)     13    (184)
                                                       ---                                ----     ---     ----


    Income Before Income Taxes                         211                                   8     510      248


    Income Tax Expense                                  76                                  10     183       96
                                                       ---                                 ---     ---      ---


    Net Income (Loss)                                 $135                                $(2)   $327     $152
                                                      ====                                 ===    ====     ====

       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                         Six Months Ended

                                                      June 30,                                June 30,
                                                      --------                                --------

                                                                   2017                                     2016        2017    2016
                                                                   ----                                     ----        ----    ----



    Basic Earnings (Loss) Per Common Share                        $0.31                                  $(0.01)      $0.76   $0.35
                                                                  =====                                   ======       =====   =====


    Diluted Earnings (Loss) Per Common Share                      $0.31                                  $(0.01)      $0.75   $0.35
                                                                  =====                                   ======       =====   =====


    Dividends Declared per Common Share                         $0.2675                                  $0.2575      0.5350 $0.5150


         Weighted Average Common Shares Outstanding
          (000):

    - Basic                                                     430,996                                  430,653     430,896 430,530

    - Diluted                                                   433,797                                  430,653     433,697 432,973



    Operating Income by Segment
    ---------------------------


    Electric Transmission & Distribution:

    TDU                                                            $144                                     $135        $202    $194

    Bond Companies                                                   20                                       23          40      47

    Total Electric Transmission & Distribution                      164                                      158         242     241

    Natural Gas Distribution                                         37                                       20         201     180

    Energy Services                                                  16                                        -         51       6

    Other Operations                                                  6                                        4           3       5


    Total                                                          $223                                     $182        $497    $432
                                                                   ====                                     ====        ====    ====

       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                                                                                 Six Months Ended

                                                June 30,                                             % Diff                                     June 30,              % Diff
                                                --------                                                                                        --------

                                                                  2017                                            2016                           Fav/(Unfav)                       2017       2016 Fav/(Unfav)
                                                                  ----                                            ----                           -----------                       ----       ---- -----------

    Results of Operations:

    Revenues:

    TDU                                                           $653                                            $616                                             6%            $1,215     $1,156                   5%

    Bond Companies                                                  99                                             147                                          (33%)               176        267                (34%)
                                                                   ---                                             ---                                                              ---        ---

    Total                                                          752                                             763                                           (1%)             1,391      1,423                 (2%)
                                                                   ---                                             ---                                                            -----      -----


    Expenses:

    Operation and maintenance, excluding Bond
     Companies                                                     348                                             330                                           (5%)               696        659                 (6%)

    Depreciation and amortization, excluding
     Bond Companies                                                103                                              94                                          (10%)               199        189                 (5%)

    Taxes other than income taxes                                   58                                              57                                           (2%)               118        114                 (4%)

    Bond Companies                                                  79                                             124                                            36%               136        220                  38%
                                                                   ---                                             ---                                                              ---        ---

    Total                                                          588                                             605                                             3%             1,149      1,182                   3%
                                                                   ---                                             ---                                                            -----      -----

    Operating Income                                              $164                                            $158                                             4%              $242       $241                    -
                                                                  ====                                            ====                                                             ====       ====


    Operating Income:

    TDU                                                           $144                                            $135                                             7%              $202       $194                   4%

    Bond Companies                                                  20                                              23                                          (13%)                40         47                (15%)
                                                                   ---                                             ---                                                              ---        ---

    Total Segment Operating Income                                $164                                            $158                                             4%              $242       $241                    -
                                                                  ====                                            ====                                                             ====       ====


    Electric Transmission & Distribution
     Operating Data:

    Actual MWH Delivered

    Residential                                              7,939,932                                       7,631,518                                             4%        13,092,407 12,650,973                   3%

    Total                                                   22,750,413                                      22,190,347                                             3%        41,503,530 40,320,948                   3%


    Weather (average for service area):

    Percentage of 10-year average:

    Cooling degree days                                            95%                                            92%                                            3%              112%       94%                 18%

    Heating degree days                                             4%                                            54%                                         (50%)               42%       85%               (43%)


    Number of metered customers -end of
     period:

    Residential                                              2,152,655                                       2,106,396                                             2%         2,152,655  2,106,396                   2%

    Total                                                    2,429,403                                       2,377,352                                             2%         2,429,403  2,377,352                   2%



                                                                      Natural Gas Distribution
                                                                      ------------------------

                                              Quarter Ended                                                                                 Six Months Ended

                                                June 30,                                             % Diff                                     June 30,              % Diff
                                                --------                                                                                        --------

                                                                  2017                                            2016                           Fav/(Unfav)                       2017       2016 Fav/(Unfav)
                                                                  ----                                            ----                           -----------                       ----       ---- -----------

    Results of Operations:

    Revenues                                                      $477                                            $421                                            13%            $1,393     $1,316                   6%

    Natural gas                                                    164                                             130                                          (26%)               625        575                 (9%)
                                                                   ---                                             ---                                                              ---        ---

       Gross Margin                                                313                                             291                                             8%               768        741                   4%
                                                                   ---                                             ---                                                              ---        ---

    Expenses:

    Operation and maintenance                                      175                                             178                                             2%               368        367                    -

    Depreciation and amortization                                   65                                              60                                           (8%)               128        119                 (8%)

    Taxes other than income taxes                                   36                                              33                                           (9%)                71         75                   5%

    Total                                                          276                                             271                                           (2%)               567        561                 (1%)

    Operating Income                                               $37                                             $20                                            85%              $201       $180                  12%
                                                                   ===                                             ===                                                             ====       ====


    Natural Gas Distribution Operating Data:

    Throughput data in BCF

    Residential                                                     19                                              20                                           (5%)                81         93                (13%)

    Commercial and Industrial                                       57                                              56                                             2%               139        142                 (2%)

    Total Throughput                                                76                                              76                                              -               220        235                 (6%)
                                                                   ===                                             ===                                                              ===        ===


    Weather (average for service area)

    Percentage of 10-year average:

    Heating degree days                                            80%                                            87%                                          (7%)               74%       87%               (13%)


    Number of customers - end of period:

    Residential                                              3,176,953                                       3,145,655                                             1%         3,176,953  3,145,655                   1%

    Commercial and Industrial                                  253,559                                         252,172                                             1%           253,559    252,172                   1%

    Total                                                    3,430,512                                       3,397,827                                             1%         3,430,512  3,397,827                   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                                                           Six Months Ended

                                          June 30,                           % Diff                                 June 30,               % Diff
                                          --------                                                                  --------

                                                       2017                               2016                       Fav/(Unfav)                    2017   2016 Fav/(Unfav)
                                                       ----                               ----                       -----------                    ----   ---- -----------

    Results of Operations:

    Revenues                                           $931                               $397                                       135%         $2,127   $836                154%

    Natural gas                                         889                                377                                     (136%)          2,026    798              (154%)
                                                        ---                                ---                                                     -----    ---

       Gross Margin                                      42                                 20                                       110%            101     38                166%
                                                        ---                                ---                                                       ---    ---

    Expenses:

    Operation and maintenance                            22                                 17                                      (29%)             43     27               (59%)

    Depreciation and amortization                         3                                  3                                          -              6      4               (50%)

    Taxes other than income taxes                         1                                  -                                         -              1      1                   -

    Total                                                26                                 20                                      (30%)             50     32               (56%)

    Operating Income                                    $16                         $        -                                         -            $51     $6                750%
                                                        ===                         ==========                                                      ===    ===


    Mark-to-market gain (loss)                           $6                               $(7)                                      186%            $21  $(16)               231%
                                                        ===                                ===                                                       ===   ====


    Energy Services Operating Data:

    Throughput data in BCF                              273                                199                                        37%            592    370                 60%
                                                        ===                                ===                                                       ===    ===


    Number of customers - end of period              31,275                             30,675                                         2%         31,275 30,675                  2%
                                                     ======                             ======                                                    ====== ======



                                                            Other Operations
                                                            ----------------

                                        Quarter Ended                                                           Six Months Ended

                                          June 30,                           % Diff                                 June 30,               % Diff
                                          --------                                                                  --------

                                                       2017                               2016                       Fav/(Unfav)                    2017   2016 Fav/(Unfav)
                                                       ----                               ----                       -----------                    ----   ---- -----------

    Results of Operations:

    Revenues                                             $3                                 $4                                      (25%)             $7     $8               (13%)

    Expenses                                            (3)                                 -                                         -              4      3               (33%)

    Operating Income                                     $6                                 $4                                        50%             $3     $5               (40%)
                                                        ===                                ===                                                       ===    ===


                                                                                               Capital Expenditures by Segment

                                                                                                    (Millions of Dollars)

                                                                                                         (Unaudited)


                                        Quarter Ended                                                           Six Months Ended

                                          June 30,                                                                  June 30,
                                          --------                                                                  --------

                                                       2017                               2016                                                      2017   2016
                                                       ----                               ----                                                      ----   ----

    Capital Expenditures by Segment

    Electric Transmission &
     Distribution                                      $222                               $215                                                      $424   $427

    Natural Gas Distribution                            139                                139                                                       228    228

    Energy Services                                       2                                  2                                                         4      2

    Other Operations                                      7                                  2                                                        12     10

    Total                                              $370                               $358                                                      $668   $667
                                                       ====                               ====                                                      ====   ====


                                                                                                   Interest Expense Detail

                                                                                                    (Millions of Dollars)

                                                                                                         (Unaudited)


                                        Quarter Ended                                                           Six Months Ended

                                          June 30,                                                                  June 30,
                                          --------                                                                  --------

                                                       2017                               2016                                                      2017   2016
                                                       ----                               ----                                                      ----   ----

    Interest Expense Detail

    Amortization of Deferred Financing
     Cost                                                $5                                 $6                                                       $11    $12

    Capitalization of Interest Cost                     (2)                               (1)                                                      (4)   (3)

    Transition and System Restoration
     Bond Interest Expense                               20                                 23                                                        40     47

    Other Interest Expense                               74                                 81                                                       148    164

    Total Interest Expense                              $97                               $109                                                      $195   $220
                                                        ===                               ====                                                      ====   ====

       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)



                                                                                                June 30,        December 31,

                                                                                                           2017                 2016
                                                                                                           ----                 ----



                                                             ASSETS

    Current Assets:

      Cash and cash equivalents                                                                            $248                 $341

      Other current assets                                                                                2,617                2,582

          Total current assets                                                                            2,865                2,923
                                                                                                          -----                -----


    Property, Plant and Equipment, net                                                                   12,644               12,307
                                                                                                         ------               ------


    Other Assets:

      Goodwill                                                                                              867                  862

      Regulatory assets                                                                                   2,566                2,677

      Investment in unconsolidated affiliate                                                              2,487                2,505

      Preferred units -unconsolidated affiliate                                                             363                  363

      Other non-current assets                                                                              253                  192

          Total other assets                                                                              6,536                6,599

            Total Assets                                                                                $22,045              $21,829
                                                                                                        =======              =======


                                       LIABILITIES AND SHAREHOLDERS' EQUITY


    Current Liabilities:

      Short-term borrowings                                                                                 $24                  $35

      Current portion of securitization bonds long-term debt                                                422                  411

      Indexed debt                                                                                          118                  114

      Current portion of other long-term debt                                                               550                  500

      Other current liabilities                                                                           1,924                2,020

          Total current liabilities                                                                       3,038                3,080
                                                                                                          -----                -----


    Other Liabilities:

      Accumulated deferred income taxes, net                                                              5,364                5,263

      Regulatory liabilities                                                                              1,289                1,298

      Other non-current liabilities                                                                       1,204                1,196

          Total other liabilities                                                                         7,857                7,757
                                                                                                          -----                -----


    Long-term Debt:

      Securitization bonds                                                                                1,638                1,867

      Other                                                                                               5,949                5,665

          Total long-term debt                                                                            7,587                7,532
                                                                                                          -----                -----


    Shareholders' Equity                                                                                  3,563                3,460

          Total Liabilities and Shareholders' Equity                                                    $22,045              $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)




                                                                                         Six Months Ended June
                                                                                                  30,
                                                                                        ----------------------

                                                                                             2017                2016
                                                                                             ----                ----


    Cash Flows from Operating Activities:

      Net income                                                                             $327                $152

      Adjustments to reconcile net income to net cash provided by operating activities:

    Depreciation and amortization                                                             492                 562

    Deferred income taxes                                                                      95                  69

    Write-down of natural gas inventory                                                         -                  1

    Equity in earnings of unconsolidated affiliate, net of distributions                    (131)               (91)

    Changes in net regulatory assets                                                         (34)               (21)

    Changes in other assets and liabilities                                                  (87)                376

    Other, net                                                                                 18                  13

    Net Cash Provided by Operating Activities                                                 680               1,061


    Net Cash Used in Investing Activities                                                   (635)              (467)


    Net Cash Used in Financing Activities                                                   (138)              (587)
                                                                                             ----                ----


    Net Increase (Decrease) in Cash and Cash Equivalents                                     (93)                  7


    Cash and Cash Equivalents at Beginning of Period                                          341                 264


    Cash and Cash Equivalents at End of Period                                               $248                $271
                                                                                             ====                ====

    Reference is made to the Notes
     to the Consolidated Financial
     Statements

       contained in the Quarterly
          Report on Form 10-Q of
         CenterPoint Energy, Inc.

For more information contact
Media:
Leticia Lowe
Phone 713.207.7702
Investors:
David Mordy
Phone 713.207.6500

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SOURCE CenterPoint Energy, Inc.