CenterPoint Energy reports first quarter 2018 earnings of $0.38 per diluted share; $0.55 per diluted share on a guidance basis
CenterPoint Energy reports first quarter 2018 earnings of $0.38 per diluted share; $0.55 per diluted share on a guidance basis
Company anticipates achieving the high end of its $1.50 - $1.60 2018 EPS guidance range, excluding one-time costs associated with the Vectren merger
HOUSTON, May 4, 2018 /PRNewswire/ -- CenterPoint Energy, Inc. (NYSE: CNP) today reported net income of $165 million, or $0.38 per diluted share, for the first quarter of 2018, compared with $192 million, or $0.44 per diluted share for the same period of the prior year. On a guidance basis, first quarter 2018 earnings were $0.55 per diluted share, consisting of $0.43 from utility operations and $0.12 from midstream investments. First quarter 2017 earnings on a guidance basis were $0.37 per diluted share, consisting of $0.27 from utility operations and $0.10 from midstream investments.
Operating income for the first quarter of 2018 was $251 million, compared with $291 million in the first quarter of the prior year. The retrospective adoption of the accounting standard for compensation-retirement benefits (ASU 2017-07) resulted in an increase to operating income and a corresponding decrease to other income of $17 million for the first quarter of 2017. Equity income from midstream investments was $69 million for the first quarter of 2018, compared with $72 million for the first quarter of the prior year.
"We are off to a strong start this year," said Scott M. Prochazka, president and chief executive officer of CenterPoint Energy. "Continued growth across our service territories, rate recovery and Energy Services' performance all position us to be at the high end of our 2018 EPS guidance. Beyond 2018 we are looking forward to closing the recently announced merger agreement with Vectren in the first quarter of 2019."
Business Segments
Electric Transmission & Distribution
The electric transmission & distribution segment reported operating income of $115 million for the first quarter of 2018, consisting of $99 million from the regulated electric transmission & distribution utility operations (TDU) and $16 million related to securitization bonds. Operating income for the first quarter of 2017 was $86 million, consisting of $66 million from the TDU and $20 million related to securitization bonds.
Operating income for the TDU benefited primarily from higher equity return related to the annual true-up of transition charges, rate relief and increased usage resulting from favorable weather and customer growth. These benefits were partially offset by lower revenues reflecting the lower federal tax rate due to the Tax Cuts and Jobs Act (TCJA) and higher operation and maintenance expenses.
The retrospective adoption of ASU 2017-07 resulted in an increase to electric transmission and distribution operating income and a corresponding decrease to other income of $8 million for the first quarter of 2017.
Natural Gas Distribution
The natural gas distribution segment reported operating income of $156 million for the first quarter of 2018, compared with $168 million for the same period of 2017. Operating income benefited from rate relief, increased usage due to favorable weather and customer growth. These increases were more than offset by lower revenues reflecting the lower federal tax rate due to the TCJA, higher operation and maintenance expenses, higher taxes due primarily to the Minnesota property tax refund of $9 million in 2017, and higher depreciation and amortization expenses.
The retrospective adoption of ASU 2017-07 resulted in an increase to natural gas distribution operating income and a corresponding decrease to other income of $4 million for the first quarter of 2017.
Energy Services
The energy services segment reported an operating loss of $26 million for the first quarter of 2018, which included a mark-to-market loss of $80 million, compared with operating income of $35 million for the same period in 2017, which included a mark-to-market gain of $15 million. Excluding mark-to-market adjustments, operating income was $54 million for the first quarter of 2018 compared with $20 million for the same period of 2017. The increase in operating income was primarily due to incremental volumes from customers and improved margin rates, resulting from commercial opportunities attributable to recent acquisitions and from colder than normal weather in several U.S. regions.
Midstream Investments
The midstream investments segment reported $69 million of equity income for the first quarter of 2018, compared with $72 million in the first quarter of the prior year.
Earnings Outlook
CenterPoint Energy anticipates achieving the high end of the $1.50 - $1.60 guidance range for 2018, excluding one-time costs associated with the proposed Vectren merger. This guidance is inclusive of Enable's net income guidance of $375 million - $445 million announced on Enable Midstream's first quarter earnings call on May 2, 2018. The guidance range assumes ownership of 54.0 percent of the common units representing limited partner interests in Enable Midstream and includes the amortization of CenterPoint Energy's basis differential in Enable Midstream and effective tax rates. CenterPoint Energy does not include other potential Enable Midstream impacts on guidance, such as any changes in accounting standards or unusual items.
The guidance range considers utility operations performance to date and certain significant variables that may impact earnings, such as weather, throughput, commodity prices, effective tax rates, financing activities, and regulatory and judicial proceedings to include regulatory action as a result of recent tax reform legislation.
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, 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.
Quarter Ended
-------------
March 31, 2018 March 31, 2017
-------------- --------------
Net Income Diluted EPS Net Income Diluted EPS
(in millions) (in millions)
------------ ------------
Consolidated net
income and diluted
EPS as reported $165 $0.38 $192 $0.44
Midstream Investments (52) (0.12) (45) (0.10)
Utility Operations (1) 113 0.26 147 0.34
--- ---- --- ----
Timing effects
impacting CES(2):
Mark-to-market
(gains) losses (net
of taxes of $19 and
$5)(3) 61 0.14 (10) (0.02)
ZENS-related mark-
to-market (gains)
losses:
Marketable securities
(net of taxes of $1
and $16) (3)(4) - - (28) (0.06)
Indexed debt
securities (net of
taxes of $3 and $4)
(3)(5) 15 0.03 6 0.01
Utility operations
earnings on an
adjusted guidance
basis $189 $0.43 $115 $0.27
---- ----- ---- -----
Adjusted net income
and adjusted diluted
EPS used in providing
earnings guidance:
Utility Operations on
a guidance basis $189 $0.43 $115 $0.27
Midstream Investments 52 0.12 45 0.10
Consolidated on a
guidance basis $241 $0.55 $160 $0.37
==== ===== ==== =====
(1) CenterPoint 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 January 31, 2018, comprised
of Time Warner Inc. and Charter
Communications, Inc. Results prior to
January 31, 2018 also included Time
Inc.
(5) 2018 includes amount associated
with Meredith tender offer for Time
Inc. common stock
Filing of Form 10-Q for CenterPoint Energy, Inc.
Today, CenterPoint Energy, Inc. filed with the Securities and Exchange Commission (SEC) its Quarterly Report on Form 10-Q for the period ended March 31, 2018. A copy of that report is available on the company's website, under the Investors section. Other filings the company makes with the SEC and certain documents relating to its corporate governance can also be found under the Investors section.
Webcast of Earnings Conference Call
CenterPoint Energy's management will host an earnings conference call on Friday, May 4, 2018, at 10:00 a.m. Central time/11:00 a.m. Eastern time. Interested parties may listen to a live audio broadcast of the conference call on the company's website under the Investors section. A replay of the call can be accessed approximately two hours after the completion of the call and will be archived on the website for at least one year.
CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution and energy services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. The company also owns 54.0 percent of the common units representing limited partner interests in Enable Midstream Partners, a publicly traded master limited partnership it jointly controls with OGE Energy Corp. Enable Midstream Partners owns, operates and develops natural gas and crude oil infrastructure assets. With more than 8,000 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, go to www.CenterPointEnergy.com.
This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual events and results may differ materially from those expressed or implied by these forward-looking statements. Any statements in this news release regarding future earnings, and future financial performance and results of operations, including, but not limited to earnings guidance, targeted dividend growth rate and any other statements that are not historical facts are forward-looking statements. Each forward-looking statement contained in this news release speaks only as of the date of this release.
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 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 non-cash goodwill, long-lived asset or other than temporary impairment charges by or related to Enable; (F) changes in tax status; (G) access to debt and equity capital; and (H) the availability and prices of raw materials and services for current and future construction projects; (2) 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; (3) timely and appropriate rate actions that allow recovery of costs and a reasonable return on investment; (4) future economic conditions in regional and national markets and their effect on sales, prices and costs; (5) weather variations and other natural phenomena, including the impact of severe weather events on operations and capital; (6) 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; (7) tax reform and legislation, including the effects of the comprehensive tax reform legislation informally referred to as the Tax Cuts and Jobs Act and uncertainties involving state commissions' and local municipalities' regulatory requirements and determinations regarding the treatment of excess deferred taxes and CenterPoint Energy's rates; (8) CenterPoint Energy's ability to mitigate weather impacts through normalization or rate mechanisms, and the effectiveness of such mechanisms; (9) the timing and extent of changes in commodity prices, particularly natural gas, and the effects of geographic and seasonal commodity price differentials; (10) actions by credit rating agencies; (11) changes in interest rates and their impact on CenterPoint Energy's costs of borrowing and the valuation of its pension benefit obligation; (12) 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; (13) local, state and federal legislative and regulatory actions or developments relating to the environment, including those related to global climate change; (14) the impact of unplanned facility outages; (15) 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, earthquakes, explosions, leaks, floods, droughts, hurricanes, pandemic health events or other occurrences; (16) CenterPoint Energy's ability to invest planned capital and the timely recovery of CenterPoint Energy's investment in capital; (17) CenterPoint Energy's ability to control operation and maintenance costs; (18) the sufficiency of CenterPoint Energy's insurance coverage, including availability, cost, coverage and terms; (19) the investment performance of CenterPoint Energy's pension and postretirement benefit plans; (20) 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; (21) changes in rates of inflation; (22) inability of various counterparties to meet their obligations to CenterPoint Energy; (23) non-payment for CenterPoint Energy's services due to financial distress of its customers; (24) the extent and effectiveness of CenterPoint Energy's risk management and hedging activities, including but not limited to, its financial and weather hedges; (25) timely and appropriate regulatory actions allowing securitization for any future hurricanes or natural disasters or other recovery of costs, including costs associated with Hurricane Harvey; (26) 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 interests in Enable, if any, whether through CenterPoint Energy's decision to sell all or a portion of the Enable common units it owns in the public equity markets or otherwise, subject to certain limitations), which CenterPoint Energy cannot assure will be completed or will have the anticipated benefits to us or Enable; (27) acquisition and merger activities involving CenterPoint Energy or its competitors, including the ability to successfully complete merger, acquisition or divestiture plans; (28) the expected timing, likelihood and benefits of completion of CenterPoint Energy's proposed merger with Vectren Corporation (Vectren), including the timing, receipt and terms and conditions of any required approvals by Vectren's shareholders and governmental and regulatory agencies that could reduce anticipated benefits or cause the parties to delay or abandon the proposed transactions, as well as the ability to successfully integrate the businesses and realize anticipated benefits, the possibility that long-term financing for the proposed transactions may not be put in place before the closing of the proposed transactions and the risk that the credit ratings of the combined company or its subsidiaries may be different from what the companies expect; (29) CenterPoint Energy's or Enable's ability to recruit, effectively transition and retain management and key employees and maintain good labor relations; (30) the outcome of litigation; (31) the ability of retail electric providers (REPs), including REP affiliates of NRG and Vistra Energy Corp., formerly known as TCEH Corp., to satisfy their obligations to CenterPoint Energy and its subsidiaries; (32) the ability of GenOn Energy, Inc. (formerly known as RRI Energy, Inc., Reliant Energy and RRI), a wholly-owned subsidiary of NRG Energy, Inc. (NRG), and its subsidiaries, currently the subject of bankruptcy proceedings, to satisfy their obligations to CenterPoint Energy, including indemnity obligations; (33) changes in technology, particularly with respect to efficient battery storage or the emergence or growth of new, developing or alternative sources of generation; (34) the timing and outcome of any audits, disputes and other proceedings related to taxes; (35) the effective tax rates; (36) the effect of changes in and application of accounting standards and pronouncements; and (37) other factors discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, CenterPoint Energy's Quarterly Report on Form 10-Q for the quarter ended March 31, 2018 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.
Risks Related to the Merger
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 risk that Vectren may be unable to obtain shareholder approval for the proposed transactions, (2) the risk that CenterPoint Energy or Vectren may be unable to obtain governmental and regulatory approvals required for the proposed transactions, or that required governmental and regulatory approvals or agreements with other parties interested therein may delay the proposed transactions or may be subject to or impose adverse conditions or costs, (3) the occurrence of any event, change or other circumstances that could give rise to the termination of the proposed transactions or could otherwise cause the failure of the proposed transactions to close, (4) the risk that a condition to the closing of the proposed transactions or the committed financing may not be satisfied, (5) the failure to obtain, or to obtain on favorable terms, any equity, debt or other financing necessary to complete or permanently finance the proposed transactions and the costs of such financing, (6) the outcome of any legal proceedings, regulatory proceedings or enforcement matters that may be instituted relating to the proposed transactions, (7) the receipt of an unsolicited offer from another party to acquire assets or capital stock of Vectren that could interfere with the proposed transactions, (8) the timing to consummate the proposed transactions, (9) the costs incurred to consummate the proposed transactions, (10) the possibility that the expected cost savings, synergies or other value creation from the proposed transactions will not be realized, or will not be realized within the expected time period, (11) the risk that the companies may not realize fair values from properties that may be required to be sold in connection with the merger, (12) the credit ratings of the companies following the proposed transactions, (13) disruption from the proposed transactions making it more difficult to maintain relationships with customers, employees, regulators or suppliers, and (14) the diversion of management time and attention on the proposed transactions.
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.
Additional Information and Where to Find It
In connection with the proposed transactions, Vectren expects to file a proxy statement, as well as other materials, with the SEC. WE URGE INVESTORS TO READ THE PROXY STATEMENT AND THESE OTHER MATERIALS FILED WITH THE SEC CAREFULLY WHEN THEY BECOME AVAILABLE BEFORE MAKING ANY VOTING OR INVESTMENT DECISION BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED MERGER. Investors will be able to obtain free copies of the proxy statement (when available) and other documents that will be filed by Vectren with the SEC at http://www.sec.gov, the SEC's website, or from Vectren's website (http://www.vectren.com) under the tab, "Investors" and then under the heading "SEC Filings." Security holders may also read and copy any reports, statements and other information filed by Vectren with the SEC, at the SEC public reference room at 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 or visit the SEC's website for further information on its public reference room.
Participants in the Solicitation
CenterPoint Energy, Vectren and certain of their respective directors, executive officers and other persons may be deemed to be participants in the solicitation of proxies from Vectren's shareholders with respect to the proposed transactions. Information regarding the directors and executive officers of CenterPoint Energy is available in its definitive proxy statement for its 2018 annual meeting, filed with the SEC on March 15, 2018, and information regarding the directors and executive officers of Vectren is available in its definitive proxy statement for its 2018 annual meeting, filed with the SEC on March 22, 2018. More detailed information regarding the identity of potential participants, and their direct or indirect interests, by securities, holdings or otherwise, will be set forth in the proxy statement and other materials when they are filed with the SEC in connection with the proposed transaction.
CenterPoint Energy, Inc. and Subsidiaries
Statements of Consolidated Income
(Millions of Dollars)
(Unaudited)
Quarter Ended
March 31,
---------
2018 2017 (1)
---- -------
Revenues:
Utility revenues $1,894 $1,546
Non-utility revenues 1,261 1,189
Total 3,155 2,735
----- -----
Expenses:
Utility natural gas 637 450
Non-utility natural gas 1,273 1,129
Operation and maintenance 569 543
Depreciation and amortization 314 226
Taxes other than income taxes 111 96
Total 2,904 2,444
----- -----
Operating Income 251 291
--- ---
Other Income (Expense):
Gain on marketable securities 1 44
Loss on indexed debt securities (18) (10)
Interest and other finance charges (78) (78)
Interest on securitization bonds (16) (20)
Equity in earnings of unconsolidated
affiliates 69 72
Other - net 3 -
--- ---
Total (39) 8
--- ---
Income Before Income Taxes 212 299
Income Tax Expense 47 107
--- ---
Net Income $165 $192
==== ====
(1) Restated to reflect the adoption
of ASU 2017-07.
Reference is made to the 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
(Millions of Dollars, Except Share and Per Share Amounts)
(Unaudited)
Quarter Ended
March 31,
---------
2018 2017
---- ----
Basic Earnings Per Common Share $0.38 $0.45
===== =====
Diluted Earnings Per Common Share $0.38 $0.44
===== =====
Dividends Declared per Common Share $ - $0.2675
Dividends Paid per Common Share $0.2775 $0.2675
Weighted Average Common Shares Outstanding
(000):
- Basic 431,231 430,794
- Diluted 434,008 433,348
Operating Income (Loss) by Segment (1)
-------------------------------------
Electric Transmission & Distribution:
TDU $99 $66
Bond Companies 16 20
Total Electric Transmission & Distribution 115 86
Natural Gas Distribution 156 168
Energy Services (26) 35
Other Operations 6 2
Total $251 $291
==== ====
(1) Operating income for the three months ended March 31, 2017 has been restated to reflect the adoption of ASU 2017-07.
Reference is made to the 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)
(Unaudited)
Electric Transmission & Distribution
------------------------------------
Quarter Ended
March 31, % Diff
---------
2018 2017 (1) Fav/(Unfav)
---- ------- -----------
Results of Operations:
Revenues:
TDU $598 $562 6%
Bond Companies 153 77 99%
--- ---
Total 751 639 18%
--- ---
Expenses:
Operation and maintenance, excluding Bond
Companies 340 340 -
Depreciation and amortization, excluding
Bond Companies 98 96 (2%)
Taxes other than income taxes 61 60 (2%)
Bond Companies 137 57 (140%)
--- ---
Total 636 553 (15%)
--- ---
Operating Income $115 $86 34%
==== ===
Operating Income:
TDU $99 $66 50%
Bond Companies 16 20 (20%)
--- ---
Total Segment Operating Income $115 $86 34%
==== ===
Electric Transmission & Distribution
Operating Data:
Actual MWH Delivered
Residential 5,604,862 5,152,475 9%
Total 19,643,755 18,753,117 5%
Weather (average for service area):
Percentage of 10-year average:
Cooling degree days 170% 258% (88%)
Heating degree days 93% 43% 50%
Number of metered customers -end of
period:
Residential 2,171,715 2,139,413 2%
Total 2,453,844 2,414,193 2%
Natural Gas Distribution
------------------------
Quarter Ended
March 31, % Diff
---------
2018 2017 (1) Fav/(Unfav)
---- ------- -----------
Results of Operations:
Revenues $1,153 $916 26%
Natural gas 667 461 (45%)
--- ---
Gross Margin 486 455 7%
--- ---
Expenses:
Operation and maintenance 213 189 (13%)
Depreciation and amortization 68 63 (8%)
Taxes other than income taxes 49 35 (40%)
Total 330 287 (15%)
Operating Income $156 $168 (7%)
==== ====
Natural Gas Distribution Operating Data:
Throughput data in BCF
Residential 87 62 40%
Commercial and Industrial 94 82 15%
Total Throughput 181 144 26%
=== ===
Weather (average for service area)
Percentage of 10-year average:
Heating degree days 99% 73% 26%
Number of customers - end of period:
Residential 3,220,262 3,190,678 1%
Commercial and Industrial 257,806 255,869 1%
Total 3,478,068 3,446,547 1%
========= =========
(1) Results of operations have been restated to reflect the adoption of ASU 2017-07.
Reference is made to the 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)
(Unaudited)
Energy Services
---------------
Quarter Ended
March 31, % Diff
---------
2018 2017 (1) Fav/(Unfav)
---- ------- -----------
Results of Operations:
Revenues $1,285 $1,196 7%
Natural gas 1,281 1,137 (13%)
----- -----
Gross Margin 4 59 (93%)
--- ---
Expenses:
Operation and maintenance 25 21 (19%)
Depreciation and amortization 5 3 (67%)
Total 30 24 (25%)
Operating Income (Loss) $(26) $35 (174%)
==== ===
Timing impacts of mark-to-market
gain (loss) $(80) $15 (633%)
==== ===
Energy Services Operating Data:
Throughput data in BCF 375 319 18%
=== ===
Number of customers - end of period 30,000 31,000 (3%)
====== ======
Other Operations
----------------
Quarter Ended
March 31, % Diff
---------
2018 2017 (1) Fav/(Unfav)
---- ------- -----------
Results of Operations:
Revenues $4 $4 -
Expenses (2) 2 200%
Operating Income $6 $2 200%
=== ===
Capital Expenditures by Segment
(Millions of Dollars)
(Unaudited)
Quarter Ended
March 31,
---------
2018 2017
---- ----
Capital Expenditures by Segment
Electric Transmission &
Distribution $207 $202
Natural Gas Distribution 93 89
Energy Services 5 2
Other Operations 18 5
Total $323 $298
==== ====
Interest Expense Detail
(Millions of Dollars)
(Unaudited)
Quarter Ended
March 31,
---------
2018 2017
---- ----
Interest Expense Detail
Amortization of Deferred Financing
Cost $5 $6
Capitalization of Interest Cost (2) (2)
Transition and System Restoration
Bond Interest Expense 16 20
Other Interest Expense 75 74
Total Interest Expense $94 $98
=== ===
(1) Results of operations have been restated to reflect the adoption of ASU 2017-07.
Reference is made to the 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)
March 31, December 31,
2018 2017
---- ----
ASSETS
Current Assets:
Cash and cash equivalents $219 $260
Other current assets 2,830 3,135
Total current assets 3,049 3,395
----- -----
Property, Plant and Equipment, net 13,205 13,057
------ ------
Other Assets:
Goodwill 867 867
Regulatory assets 2,213 2,347
Investment in unconsolidated affiliate 2,467 2,472
Preferred units - unconsolidated affiliate 363 363
Other non-current assets 246 235
Total other assets 6,156 6,284
Total Assets $22,410 $22,736
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Short-term borrowings $ - $39
Current portion of securitization bonds long-
term debt 444 434
Indexed debt 119 122
Current portion of other long-term debt 50 50
Other current liabilities 2,003 2,424
Total current liabilities 2,616 3,069
----- -----
Other Liabilities:
Accumulated deferred income taxes, net 3,160 3,174
Regulatory liabilities 2,505 2,464
Other non-current liabilities 1,096 1,146
Total other liabilities 6,761 6,784
----- -----
Long-term Debt:
Securitization bonds 1,260 1,434
Other 6,916 6,761
Total long-term debt 8,176 8,195
----- -----
Shareholders' Equity 4,857 4,688
Total Liabilities and Shareholders' Equity $22,410 $22,736
======= =======
Reference is made to the 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)
Three Months Ended March 31,
----------------------------
2018 2017 (1)
---- -------
Cash Flows from Operating Activities:
Net income $165 $192
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and
amortization 320 232
Deferred income taxes (17) 85
Write-down of natural gas
inventory 1 -
Equity in earnings of
unconsolidated affiliate,
net of distributions (9) (72)
Changes in net regulatory
assets 42 15
Changes in other assets and
liabilities (20) (141)
Other, net 2 6
Net Cash Provided by
Operating Activities 484 317
Net Cash Used in Investing
Activities (331) (372)
Net Cash Used in Financing
Activities (192) (36)
---- ---
Net Decrease in Cash, Cash
Equivalents and Restricted
Cash (39) (91)
Cash, Cash Equivalents and
Restricted Cash at
Beginning of Period 296 381
Cash, Cash Equivalents and
Restricted Cash at End of
Period $257 $290
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(1) Restated to reflect the adoption of ASU 2016-15 and 2016-18.
Reference is made to the Notes to Unaudited Condensed 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.
