Full Year 2011 Operating Income Drivers ^wpoi^_ 12 months ended December 31, 2011 ^ FA&W

Transcription

1 Full Year 2011 Operating Income Drivers ^wpoi^_ 12 months ended December 31, 2011 ^ FA&W (in millions) Competitive Total Operating Income Total Operating Income $1 249 Natural Gas Interstate Natural Gas $1,298, Electric TDU Distribution Pipelines Field Services Sales & Service Other ritization uritization $69 $(5) $(22) $38 $^;zoo J. $(10) $(8) B ds ron2^ J $140 + Customer + Higher mark-togrowth + New firm + Higher market in Increased transportation throughput in versus 2010 $1 00wo usage, contracts and + Lower bad Haynesville primarily higher debtexpense and Lower weather ancillary Fayetteville optimization + Rate services shales opportunities + Customer $800 increases - - around pipeline growth Restructured 2010 gain on and storage contracts with + Lower D&A Higher benefit sale of non- assets natural gas costs strategic distribution assets + Higher net _ affiliates Release of srsoo TCOS Lower transportation _ miscellaneous - Lower capacity Lower offcommodity Rate case revenues system impact prices revenues due Higher S400 _ Other, to declining inventory write- Other, primarily basis Higher O&M, down in in 2011 primarily higher depreciation, versus 2010 higher O&M expenses and other - Expiring taxes due to Carthage to $200 Magnolia and Perryville Olympia pipeline expansion backhaul contract so February 29, 2012 Full Year 2011 Earnings 3 Tf` 49

2 Electric Transmission & Distribution ^^int Operating Income Drivers Filerff (in millions) $550 $ 500 $51 $450 $427 ^ $400 n Increased usage, $350 primarily weather $300 $13 $(12) $Ifi $(21) $22 $496" n Higher net n Rate case n Lower TCOS impact Other n Customer depreciation primanly growth expense higher O&M and lower misc. revenues 40 encenmge oradjusted ^ [ingincomewhich imcludes of smwaimnon bonds $ 250 $200 $150 $100 $50 $0 * Ecdudes operating income from transition and system restoration ^ bonds of $140 million and $127 million for 2010 and 2011, respectively February 29, 2012 Full Year 2011 Earnings 4 50

3 Electric Transmission & Distribution Operating Income Cenhyftint. fipergy In 2011, CenterPoint Energy Houston Electric (CEHE) had its strongest financial year, driven by record heat, Increased energy use and customer growth of more than 45,000 - Each month from April through September was one of the ten warmest months on record, and the Houston economy grew faster than that of any other major city in North America in 2011, adding more than 80,000 jobs - Has consistently earned authorized rate of return - As a result of new rates implemented in September 2011, 2012 operating income will be reduced by -$35 million compared to 2011 performance, including the effect of the change in depreciation rates (in millions) $ Note: Results exclude operating income from the Transition and System Restoration Bond Companies, the Competition Transition Charge and the Final Fuel Reconciliation(see reconciliationon page 28). February 29, 2012 Full Year 2011 Earnings 51

4 Electric Transmission & Distribution Capital Expenditures 6'mpPbint. Ewrff $57S $571 S557 (in millions) w Other q AMS M Secondary GontrolCenter Public Improvements n I nterconnectbns Maintenance iw LoadGrowth February 29, 2012 Full Year 2011 Earnings 6 52

5 Electric Transmission & Distribution Innovative Rate Mechanisms CenparPbiM. &&W Recovery mechanisms reduce rate case frequency and allow more timely recovery of and on investments Interim Transmission Cost of Service (TCOS) Adjustment - ERCOT transmission service providers (TSPs) charge distribution service providers (DSPs) the cost of transmission investment - Allows CEHE to make a filing up to two times per year to update its TCOS to recover a return of and on transmission related plant investments Transmission Cost Recovery Factor (TCRF) - CEHE is allowed to request rate increases twice a year to recover increased transmission costs from other TSPs - Additionally, CEHE is allowed to defer, until its next TCRF update, any increase in expense from other TSPs Distribution Cost Recovery Factor (DCRF) - In September 2011, the PUC approved a periodic rate adjustment mechanism that mitigates regulatory lag for distribution capital investment - Allows CEHE to file to update its rates each year effective September 1 to recover a return of and on new distribution related plant investment (net of changes in distribution related accumulated deferred federal income tax) - No DCRF adjustment if the annual earnings monitoring report shows a utility is earning more than its authorized rate of return on a weather normalized basis Other Mechanisms - Deferral of Pension Costs - allows a utility to defer the excess pension and other postemployment benefits costs over the amount that was approved in the utility's last general rate proceeding - Deferral of Bad Debt - authorizes utility to defer bad debts resulting from defaults by REPs for recovery in a future rate case - Energy Efficiency Cost Recovery Factor (EECRF) - recovery of certain energy efficiency program costs - Advanced Metering System (AMS) Surcharge - continues until December 2014 for residential customers and until April 2017 for commercial and industrial customers February 29, 2012 Full Year 2011 Earnings 53

6 Natural Gas Distribution 2011 Operating Income Drivers CenkrPbint. ff (in millions) $500 $450 $400 Pemenrage ofadjusted opemtlng income which excludes $127 million of securin>auon bonds $350 $300 $250 $200 $150 $100 $50 $ February 29, 2012 Full Year 2011 Earnings 8 54

7 Natural Gas Distribution Operating Income ^ C^te,rPbint berg Earned at or near authorized return on equity over last two years (in millions) es,e.--- $231 $ February 29, 2012 Full Year 2011 Eamings 55

8 Natural Gas Distribution Capital Expenditures CenhrPbint. Enerff Increased capital investments primarily for infrastructure, safety and technology will drive 6 percent growth in rate base (in millions) $354 $365 $361 $363 ^IAaa 8 Other a MetL-rs and Regulators N System Mai ntenance/improvements ngrowthfcustomer AddCtfons February 29, 2012 Full Year 2011 Earnings 10 56

9 Natural Gas Distribution Innovative Rate Mechanisms Cenkrftint. Energy Rate mechanisms reduce rate case frequency and decouple revenues from consumption Arkama 4kWioer L.a&Mp 10aslaippi IlllorWrsoh liaudon BsAUnronlT Tex" Soulh 6sttTexn Cum TOrw& Taxarlwmj lalpiwntrm 2011COxdOmKS 4^Si838 8i1111g Datsrnirva^ AdHrlnrnc(8D11y ,595, 'T, O771 MwIlm Sb4^klOn ^ YYMidNtNOf1111NOA0A A4Iqf1AAAC{YNIA) COKtar 36tV(rl9 1NIIOUG ff*duoklt.. Als IBEe r9vbfaji^>37uenex J GetRNhEiNylAkawudnn WeOnm(GRIp) Resovsfs t^fa n5^ted W hcr6w3e ^1^elard ^aarrrwa IMr»bucM+n. M^1f RipliuRl6AlPitlqliT^01RP^ C.^^t`,^ R8^8r9i6tl9pil^Ail^Cln$rlafiervrl6lrGA4t Reewary Qlhar idtt^dlaarosda6lh^^n ACT 110 Ftazoma taw &W OW sxpwftvw at a reava d Dsq7s W ba ar nyilbdory rspr^4smerds [o dt #s driwr^ Pensten P^rpdmle tdeferr+il Mwrt MaaO"Nnt Apr*AMms (AMIy (1) Msaisappi mvependa7 ccat W servtfa 0qi64ne4 MOM In 2409 and AZQ11 COS114s ufdor tastmfau (Z) 9e2UrnvnVEW fiom CRSA vat! applns to ft ON rb haaiqviqr. (3) AV&4qto in a1 To= pr*dicfts Ow me cam February 29, 2012 Full Year 2011 Earnings 11 57

10 Interstate Pipelines m CenterpQint 2011 Operating Income Drivers W Energy (in millions) $500 $450 $400 cea e opemtingiocame winch excludes $127 million of securitlmoon bonds $350 $300 $250 $200 $150 $100 ' Lower off- system n Expiring n New firm revenues due Carthage to transportation to declining Perryville contracts and basis pipeline higher backhaul ancillary contract revenues n Restructured contracts with natural gas distribution affiliates $(11) $(22) $22 $248 $50 $fl February 29, 2012 Full Year 2011 Eamings 12 58

11 Interstate Pipelines Operating Income ^CendarP^int. Energy Operating income has benefited from core transportation contracts Ancillary services are variable based on market conditions More competition for new and existing customers expected in the future (in millions) $ , Note: Interstate Pipelines also earned $6 million, $36 million, $7 million, $19 million and $21 million of equity income from its 50% interest in Southeast Supply Header, LLC for 2007, 2008, 2009, 2010 and 2011, respectively. February 29, 2012 Full Year 2011 Earnings 13 59

12 Interstate Pipelines 4-Year Margin' Contribution cenoftnr Emig (in^ya=) S495 $501 $'w n Core Transportation Margins 0 Other Margips2 (1) Margin equals revenues minus natural gas expense (2) Natural gas and ancillary services (balancing, system management, liquids) February 29, 2012 Full Year 2011 Earnings 14 60

13 Interstate Pipelines 5-Year Margin' per Mcf krftlllt: berg 1,800 $0.60 1,560 $0.50 ;^E 1,200 co ^ 900 ba $0.40 Kav 04 $0.30 ^ $ $ $0.00 =Throughput (Bcf) - -Margin per Mcf (1) Margin equals revenues minus natural gas expense February 29, 2012 Full Year 2011 Earnings 15 61

14 Interstate Pipelines Capital Expenditures terpbint. Energy Planned capital expenditures support maintenance, pipeline upgrades, and pipeline safety and environmental compliance $181 n Environmental/Regulatory N Greenfield Growth n Maintenance and Other February 29, 2012 Full Year 2011 Earnings 16 62

15 Field Services 2011 Operating Income Drivers CwNanPbunt &e9y (in millions) $500 $450 $400 Percentage ofadjusted operating income which e:cludes $127 million of securitizstion bonds $350 $300 $250 $ss $(21) $(10) $(19) $200 $189 n 2010 gain on - Lower $151 sale of non- $150 strategic commodity n Higher O&M, assets prices depreciation, n Higher and other $100 throughput in taxes due to Haynesville and Magnolia and Fayetteville Olympia $50 shales expansion $ February 29, 2012 Full Year 2011 Eamings 17 63

16 Field Services Operating Income enhwft«r Energy Operating income has benefited from significant new investments in mid-continent shale plays - Contracted growth supported by fee-based contracts with volume commitments and/or guaranteed returns on capital deployed $ Note: Field Services also earned $10 million, $15 million, $8 million, $10 million and $9 million of equity earnings from its 50% interest in Waskom, a joint processing plant, for 2007, 2008, 2009, 2010 and 2011, respectively. February 29, 2012 Full Year 2011 Eamings 18 64

17 Field Services 4-Year Margin' Contribution COarPOnt. &O9Y (in millions) $ rfee-based Gathering nothermargins 2 (1) Margin equals revenues minus natural gas expense (2) Natural gas and liquids February 29, 2012 Full Year 2011 Earnings 19 65

18 Field Services 4-Year Margin' per Mcf ^ c^r^inr. Enagy U soo Y s00 C,. tw $0.90 $0.80 T tll ^0.70 (D $0.60 $0s0 50,40a9 3' $0.20 $ $ IThtoughput (Bcf) -0-Fee-based Margin per Mcf (1) Margin equals revenues minus natural gas expense February 29, 2012 Full Year 2011 Earnings 20 66

19 Field Services Capital Expenditures Cent^rPoint. ^ Eite Developing shale plays drove significant capital prior to 2012 Beyond 2012, expect to deploy moderate level of capital under existing contractual arrangements with customers Capital for significant new opportunities not included $201 n Well Connects and Other 0 Maintenance n Contracted Growth n Greenfield Growth February 29, 2012 Full Year 2011 Earnings 21 67

20 Competitive Natural Gas Sales & Services 2011 Operating Income Drivers ^ ^^point. (in millions) 1% -^ $500 $450 - OP Percentage ofadjusied $400 oxperating ineome winch e cludes $127 million of securiti.tion bonds $350 $300 $250 $200 $150 Inventory write- Mark-to-market: down: $100 $50 $0 n 2011: $8 gain n 2011: $11 n 2010: $4 gain n 2010: $6 Release of transportation capacity n Lower optimization opportunities around pipeline and storage assets $16 $4 $(5) $(') $(4) $s February 29, 2012 Full Year 2011 Earnings 22 68

21 Competitive Natural Gas Sales & Services Operating Income cefl^int. ^ Operating income has been negatively impacted by the significant reductions in basis and seasonal spreads Pipeline and storage capacity has been reduced to closely match customers requirements $ February 29, 2012 Full Year 2011 Earnings 23 69

22 Competitive Natural Gas Sales & Services Customers and Sales Volumes Cenl^rPbi,rrt ^rgy En L N L m EA ^ Customers --o-salesvolumes February 29, 2012 Full Year 2011 Eamings 24 70

23 Debt and Capitalization Ratio Excluding transition and system restoration bonds ak Centet`Pbint. W Energy (in millions) December 31, December 31, Short-term Debt- Short-term borrowings Current portion of transition and system restoration bonds' Current portion of indexed debt (ZENS)`" Current portion of other long4erm debt Long-term Debt: Transition and system restoration bonds" 2,522 2,215 Other 6,479 6,426 Total Debt $ 9,482 S 9,187 Less: Transition and system restoration bonds (including current portion)' Total Debt, excluding transition and system restoration bonds $ 6:677 $ 6,665 Total Shareholders' Equity $ 3,198 $ 4,222 Total Capitalization. excluding transition and system restoration bonds S 9,875 $ 10:887 Total DebttTotal Capitalization, excluding transition and system restoration bonds 67.6 /s 61.2'fo ' The transition and system restoration bonds are non-recourse to CenterPoint Energy and CenterPoint Energy Houston Electric and are serviced through collections of separate charges which are held in trust. The debt component reflected on the financial statements was $131 as of December 31, 2011 and $126 million as of December 31, The principal amount on which 2% interest is paid was $840 million as of December 31, 2011 and December 31, The contingent principal amount was $797 as of December 31, 2011 and $805 million as of December 31, February 29, 2012 Full Year 2011 Earnings 25 71

24 Credit Metrics and Ratings terpo&. Energy FFO/Total Debt* FFU Interest Coverage* 17 8% 17 2D U * Calculated per CNP's interpretation of S&P methodology; actual calculations may include other adjustments not anticipated Moody's S&P Fitch Rating Outlook Rating Outlook Rating Outlook CenterPoint Energy (Senior Unsecured) Baa3 Stable BBB Stable BBB- Positive CEHE (Senior Secured) (1) A3 Stable A- Stable A- Positive CERC (Senior Unsecured) Baa2 Stable BBB+ Stable BBB Stable (1) General mortgage bonds and first mortgage bonds. February 29, 2012 Full Year 2011 Eamings 26 72

25 Liquidity ewterpoil t. &erff Bank Facilities CenterPoint Energy CEHE CERC Total Credit Facilities ( 1) Represents outstanding letters of credit. Temporary Investments Investments in Money Market Funds (as of February 13, 2012) Available Liquidity Type of Facility Size of Facility Revolver $ 1,200 Revolver 300 Revolver 950 $ 2,450 Amount Utilized Amount Unutilized at February 13, 2012 at February 13, 2012 $ 13 (') $ 1,187 4 (1) $ 17 $ 2,433 1,486 $ 3,919 February 29, 2012 Full Year 2011 Earnings 27 73

26 Reconciliation of CEHE Operating Income to Adjusted Operating Income CentyPbint. Energy (in millions) Operating Income Transition and System Restoration Bond Companies Competition Transition Charge Final Fuel Reconciliation Adjusted Operating Income ^2 ^ 7^ 2^Q14 1.4^3 $ 561 $ 545 $ 545 $ 567 $ 623 (119) (133) (131) (140) (127) (42) (5) ) $ 383 $ 407 $ 414 $ 427 $ 496 February 29, 2012 Full Year 2011 Eamings 28 74

27 FDGARanline CE NTERPOINT ENERGY INC FORM 8-K (Current report filing) Filed 04/27/12 for the Period Ending 04/26/12 Address Telephone CIK Symbol SIC Code Industry Sector Fiscal Year 1111 LOUISIANA ST HOUSTON, TX CNP Electric Services Electric Utilities Utilities 12/31 Powered By ^GAWQ^' e hftp^/awm.edgar-online.com Copyright 2012, EDGAR Online, Inc. All Rights Reserved. Distribution and use of this document restricted under EDGAR Online, Inc. Terms of Use. 75

28 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): April 26, 2012 CENTERPOINT ENERGY, INC. (Exact name of registrant as specified in its charter) Texas (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 1111 Louisiana Houston, Texas (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (713) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below): Written communications pursuant to Rule 425 under the Securities Act (17 CFR ) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR e-4(c)) 76

29 ITEM SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. At the annual meeting of the shareholders of CenterPoint Energy, Inc. ("CenterPoint Energy") held on April 26, 2012, the matters voted upon and the number of votes cast for or against, as well as the number of abstentions and broker non-votes as to such matters, were as stated below. The proposals related to each matter are described in detail in CenterPoint Energy's definitive proxy statement for the annual meeting, which was filed with the SEC on March 16, Election of Directors (Item 1) The following nominees for directors were elected to serve one-year terms expiring at the 2013 annual meeting of shareholders: Nominee For Against Abstentions Broker Non-Votes Donald R. Campbell 300,602,715 8,801,980 1,115,210 54,692,033 Milton Carroll 306,735,057 2,916, ,376 54,692, Holcombe Crosswell 298,500,381 11,020, ,868 54,692,033 Michael P. Johnson 298,531,483 10,832,076 1,156,346 54,692,033 Janiece M. Longoria 301,011,137 8,718, ,670 54,692,033 David M. McClanahan 307,895,314 1,886, ,655 54,692,033 Susan 0. Rheney 306,841,993 2,808, ,604 54,692,033 R. A. Walker 307,120,624 2,528, ,946 54,692,033 Peter S. Wareing 307,961,475 1,620, ,551 54,692,033 Sherman M. Wolff 300,522,307 9,134, ,677 54,692,033 Ratification of Appointment of Independent Auditors (Item 2) The appointment of Deloitte & Touche LLP as independent registered public accountants for CenterPoint Energy for 2012 was ratified: For AQainst Abstentions Broker Non-Votes 359,263,815 5,027, ,618 0 Advisory Vote on Executive Compensation (Item 3) The advisory resolution on executive compensation was approved: For Against Abstentions Broker Non-Votes 295,407,991 13,136,847 1,975,067 54,692,033 77

30 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CENTERPOINT ENERGY, INC. Date: April 27, 2012 By: /s/ Christopher J. Arntzen Christopher J. Arntzen Vice President, Deputy General Counsel and Assistant Corporate Secretary 78

31 ^GAROnline C ENTERPOINT EN E RGY IN C FORM 8-K (Current report filing) Filed 05/03/12 for the Period Ending 05/03/12 Address Telephone CIK Symbol SIC Code Industry Sector Fiscal Year 1111 LOUISIANA ST HOUSTON, TX CNP Electric Services Electric Utilities Utilities 12/31 Powered By IDGAWNnlin.e edgar-online.com Copyright 2012, EDGAR Online, Inc. All Rights Reserved. Distribution and use of this document restricted under EDGAR Online, Inc. Terms of Use. 79

32 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): May 3, 2012 CENTERPOINT ENERGY, INC. (Exact name of registrant as specified in its charter) Texas (State or other jurisdiction (Commission File (IRS Employer of incorporation) Number) Identification No.) 1111 Louisiana Houston, Texas (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (713) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below): q Written communications pursuant to Rule 425 under the Securities Act (17 CFR ) q q q Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR e-4(c)) 80

33 ITEM RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On May 3, 2012, CenterPoint Energy, Inc. ("CenterPoint Energy") reported first quarter 2012 earnings. For additional information regarding CenterPoint Energy's first quarter 2012 earnings, please refer to CenterPoint Energy's press release attached to this report as Exhibit 99.1 (the "Press Release"), which Press Release is incorporated by reference herein. The information in the Press Release is being furnished, not filed, pursuant to Item Accordingly, the information in the Press Release will not be incorporated by reference into any registration statement filed by CenterPoint Energy under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference. ITEM FINANCIAL STATEMENTS AND EXHIBITS. The exhibit listed below is furnished pursuant to Item 2.02 of this Form 8-K. (d) Exhibits Press Release issued May 3, 2012 regarding CenterPoint Energy, Inc.'s first quarter 2012 earnings. 81

34 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CENTERPOINT ENERGY, INC. Date: May 3, 2012 By: /s/ Walter L. Fitzgerald Walter L. Fitzgerald Senior Vice President and Chief Accounting Officer 82

35 EXHIBIT INDEX EXHIBIT NUMBER EXHIBIT DESCRIPTION 99.1 Press Release issued May 3, 2012 regarding CenterPoint Energy, Inc.'s first quarter 2012 earnings. 83

36 Exhibit 99.1 For more information contact Media: Leticia Lowe Phone Investors: Marianne Paulsen Phone For Immediate Release Page 1 of 4 CENTERPOINT ENERGY REPORTS FIRST QUARTER 2012 EARNINGS Houston, TX - May 3, CenterPoint Energy, Inc. (NYSE: CNP) today reported net income of $147 million, or $0.34 per diluted share, for the first quarter of 2012 compared to $148 million, or $0.35 per diluted share, for the same period of Operating income for the first quarter of 2012 was $338 million compared to $364 million for the same period of "Despite extremely mild winter weather and low natural gas prices, the company reported solid earnings for the quarter," said David M. McClanahan, president and chief executive officer of CenterPoint Energy. "The benefits of our diversified portfolio of electric and natural gas businesses were evident this quarter and the fundamentals of our business units remain strong. We continue to look for opportunities to invest in each of our businesses where we believe we can build value for our shareholders." Electric Transmission & Distribution The electric transmission & distribution segment reported operating income of $107 million for the first quarter of 2012, consisting of $70 million from the regulated electric transmission & distribution utility operations (TDU) and $37 million related to securitization bonds. Operating income for the first quarter of 2011 was $101 million, consisting of $68 million from the TDU and $33 million related to securitization bonds. Operating income for the TDU benefited from higher miscellaneous revenues, growth of more than 42,000 customers since March 2011, and higher returns associated primarily with the company's recovery of the true-up proceeds. These gains were partially offset by milder weather and impacts from new rates implemented in September Natural Gas Distribution The natural gas distribution segment reported operating income of $121 million for the first quarter of 2012 compared to $142 million for the same period of Operating income declined due to significantly warmer winter weather. Interstate Pipelines The interstate pipelines segment reported operating income of $60 million for the first quarter of 2012 compared to $76 million for the same period of The decline was due to lower revenues primarily as a result of an expired backhaul contract and lower off-system sales due primarily to compressed basis differentials. These declines were partially offset by higher revenues from previously restructured contracts with the company's natural gas distribution affiliates and increased ancillary services. Operation and maintenance expenses were higher primarily due to a favorable insurance settlement recognized in the first quarter of more- 84

37 ^^s ^ For Immediate Release For more information contact Media: Leticia Lowe Phone Investors: Marianne Paulsen Phone Page 2 of 4 In addition to operating income, this segment recorded equity income of $6 million for the first quarter of 2012 from its 50 percent interest in the Southeast Supply Header (SESH) compared to $4 million for the same period of Field Services The field services segment reported operating income of $47 million for the first quarter of 2012 compared to $36 million for the same period of The first quarter of 2012 benefited from higher gathering volumes in the Haynesville and Fayetteville shales partially offset by lower prices received from sales of retained gas. In addition to operating income, this business had equity income of $3 million for the first quarter of 2012 from its 50 percent interest in a gathering and processing joint venture (Waskom) compared to $2 million for the same period of Competitive Natural Gas Sales and Services The competitive natural gas sales and services segment reported operating income of $1 million for the first quarter of 2012 compared to $10 million for the same period of The first quarter of 2012 included a $4 million write-down of natural gas inventory to the lower of average cost or market. The first quarter of 2012 also included charges of $1 million resulting from mark-to-market accounting for derivatives associated with certain forward natural gas purchases and sales used to lock in economic margins compared to charges of $2 million for the same period of In addition to these items, operating income was impacted by milder winter weather, compressed margins and higher operation and maintenance expenses. Dividend Declaration On April 26, 2012, CenterPoint Energy's board of directors declared a regular quarterly cash dividend of $ per share of common stock payable on June 8, 2012, to shareholders of record as of the close of business on May 16, Outlook Reaffirmed for 2012 CenterPoint Energy reaffirmed its estimate for 2012 earnings on a guidance basis in the range of $1.08 to $1.20 per diluted share. Earnings guidance is being provided in the form of a range to reflect economic and operational variables associated with the company's various business segments and takes into consideration performance to date. Significant variables include the impact to earnings of commodity prices, volume throughput, weather, regulatory proceedings, effective tax rates and -more- 85

38 cenftrpoifit. Ene1ff For Immediate Release For more information contact Media: Leticia Lowe Phone Investors: Marianne Paulsen Phone Page 3 of 4 financing activities. In providing this guidance, the company does not include the impact of any changes in accounting standards, any impact from significant acquisitions or divestitures, any impact to earnings from the change in the value of Time Warner stocks and the related ZENS securities, or the timing effects of mark-to-market and inventory accounting in the company's competitive natural gas sales and services business. 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, 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 other documents relating to its corporate governance can also be found on that site. Webcast of Earnings Conference Call CenterPoint Energy's management will host an earnings conference call on Thursday, May 3, 2012, at 10:30 a.m. Central time or 11:30 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, competitive natural gas sales and services, interstate pipelines, and field services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma and Texas. Assets total more than $22 billion. With over 8,800 employees, CenterPoint Energy and its predecessor companies have been in business for more than 135 years. For more information, visit the company's website at CenterPointEnergy.com. This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of Actual events and results may differ materially from those expressed or implied by these forward-looking statements. The statements in this news release regarding the company's earnings outlook for 2012 and future financial performance and results of operations, 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, among others, energy deregulation or re-regulation, pipeline integrity and safety, health care reform, financial reform and tax legislation; (2) state and federal legislative and regulatory actions or developments relating to the environment, including those related to global climate change; (3) timely and appropriate rate actions and increases, allowing recovery of costs and a reasonable return on investment; (4) the timing and outcome of any audits, disputes or other proceedings related to taxes; (5) problems with 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; (6) industrial, commercial and residential growth in CenterPoint Energy's service territories and changes in market -more- 86

39 For more information contact cenkn%l»ili^ Media: Leticia Lowe Enegy Phone Investors: Marianne Paulsen Phone For Immediate Release Page 4 of 4 demand, including the effects of energy efficiency measures and demographic patterns; (7) the timing and extent of changes in commodity prices, particularly natural gas and natural gas liquids, and the effects of geographic and seasonal commodity price differentials, including the effects of these circumstances on re-contracting available capacity on CenterPoint Energy's interstate pipelines; (8) the timing and extent of changes in the supply of natural gas, particularly supplies available for gathering by CenterPoint Energy's field services business and transporting by its interstate pipelines, including the impact of natural gas prices on the level of drilling and production in the regions served by CenterPoint Energy; (9) competition in CenterPoint Energy's mid-continent region footprint for access to natural gas supplies and to markets; (10) weather variations and other natural phenomena; (11) 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; (12) the impact of unplanned facility outages; (13) timely and appropriate regulatory actions allowing securitization or other recovery of costs associated with any future hurricanes or natural disasters; (14) changes in interest rates or rates of inflation; (15) commercial bank and financial market conditions, CenterPoint Energy's access to capital, the cost of such capital, and the results of our financing and refinancing efforts, including availability of funds in the debt capital markets; (16) actions by credit rating agencies; (17) effectiveness of CenterPoint Energy's risk management activities; (18) inability of various counterparties to meet their obligations; (19) non-payment for services due to financial distress of CenterPoint Energy's customers; (20) the ability of GenOn Energy, Inc. (formerly known as RRI Energy, Inc.) and its subsidiaries to satisfy their obligations to CenterPoint Energy and its subsidiaries; (21) the ability of retail electric providers, and particularly the two largest customers of the TDU, to satisfy their obligations to CenterPoint Energy and its subsidiaries; (22) the outcome of litigation brought by or against CenterPoint Energy; (23) CenterPoint Energy's ability to control costs; (24) the investment performance of pension and postretirement benefit plans; (25) potential business strategies, including restructurings, acquisitions or dispositions of assets or businesses; (26) acquisition and merger activities involving CenterPoint Energy or its competitors; and (27) other factors discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2011, CenterPoint Energy's Quarterly Report on Form 10-Q for the quarter ended March 31, 2012, and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission. CenterPoint Energy, Inc. and Subsidiaries Reconciliation of reported Net Income and diluted EPS to the basis used in providing 2012 annual earnings guidance Quarter Ended March 31, 2012 Net Income EPS (in millions) As reported S 147 $0.34 Timing effects impacting CES (1): Mark-to-market (gains) losses - natural gas derivative contracts Natural gas inventory write-downs ZENS-related mark-to-market (gains) losses: Marketable securities (2) (30) (0.07) Indexed debt securities Per the basis used in providing 2012 annual earnings guidance $ 142 $ 0.33 Competitive natural gas sales and services Time Warner Inc., Time Warner Cable Inc. and AOL Inc. 87

40 CenterPoint Energy, Inc. and Subsidiaries Statements of Consolidated Income (Millions of Dollars) (Unaudited) Revenues: Electric Transmission & Distribution Natural Gas Distribution Competitive Natural Gas Sales and Services Interstate Pipelines Field Services Other Operations Eliminations Total Expenses: Natural gas Operation and maintenance Depreciation and amortization Taxes other than income taxes Total Operating Income Other Income (Expense): Gain on marketable securities Loss on indexed debt securities Interest and other finance charges Interest on transition and system restoration bonds Equity in earnings of unconsolidated affiliates Other - net Total Income Before Income Taxes Income Tax Expense Net Income Quarter Ended March $ 489 $ 531 1, (61) 2,587 2,084 1, ,223 1, (23) (33) (116) (110) (33) (37) (129) (119) 235 ' $ 148 $ 147 Reference is made to the Notes to the Consolidated Financial Statements contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc. 88

41 CenterPoint Energy, Inc. and Subsidiaries Selected Data From Statements of Consolidated Income (Millions of Dollars, Except Share and Per Share Amounts) (Unaudited) Basic Earnings Per Common Share Diluted Earnings Per Common Share Dividends Declared per Common Share Weighted Average Common Shares Outstanding (000): - Basic - Diluted Operating Income (Loo) by Segment Electric Transmission & Distribution: Electric Transmission and Distribution Operations Transition and System Restoration Bond Companies Total Electric Transmission & Distribution Natural Gas Distribution Competitive Natural Gas Sales and Services Interstate Pipelines Field Services Other Operations Total Quarter Ended March $ 0.35 $ 0.34 $ 0.35 $ 0.34 $ $ , , , ,492 $ 68 $ (1) 2 $ 364 $ 338 Reference is made to the Notes to the Consolidated Financial Statements contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc. 89

42 CenterPoint Energy, Inc. and Subsidiaries Results of Operations by Segment (Millions of Dollars) (Unaudited) Electric Transmission & Distribution Quarter Ended March 31, % Diff Fav/ Unfav Results of Operations: Revenues: Electric transmission and distribution utility $ 400 $ 415 4% Transition and system restoration bond companies % Total % Expenses: Operation and maintenance (6%) Depreciation and amortization (3%) Taxes other than income taxes % Transition and system restoration bond companies (41%) Total (9%) Operating Income $ 101 $ 107 6% Operating Income: Electric transmission and distribution operations $ 68 $ 70 3% Transition and system restoration bond companies % Total Segment Operating Income $ 101 $ 107 6% Electric Transmission & Distribution Operating Data: Actual MWH Delivered Residential 4,871,253 4,525,294 (7%) Total 16,767,968 16,544,009 (1%) Weather (average for service area): Percentage of 10-year average: Cooling degree days 151% 237% 86% Heating degree days 109% 56% (53%) Number of metered customers - end of period: Residential 1,879,796 1,914,906 2% Total 2,124,809 2,167,052 2% Natural Gas Distribution Quarter Ended March 31, % Diff Fav/ Unfav Resufts of Operations: Revenues $ 1,212 $ 854 (30%) Expenses: Natural gas % Operation and maintenance % Depreciation and amortization (2%) Taxes other than income taxes % Total 1, % Operating Income $ 142 $ 121 (15%) Natural Gas Distribution Operating Data: Throughput data in BCF Residential (31%) Commercial and Industrial (16%) Total Throughput (24%) Weather (average for service area) Percentage of 10-year average: Heating degree days 108% 69% (39%) Number of customers - end of period: Residential 3,029,079 3,042,617 - Commercial and Industrial 246, ,852 - Total 3,276,066 3,289,469 - Reference is made to the Notes to the Consolidated Financial Statements contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc. 90

43 CenterPoint Energy, Inc. and Subsidiaries Results of Operations by Segment (Millions of Dollars) (Unaudited) Competitive Natural Gas Sales and Services Quarter Ended March 31, % Diff Results of Operations: Fav/ Unfav Revenues $ 706 $ 525 (26%) Expenses: Natural gas % Operation and maintenance (20%) Depreciation and amortization Taxes other than income taxes._ - - Total % Operating Income $ 10 $ 1 (90%) Competitive Natural Gas Sales and Services Operating Data: Thraughpnt data in BCF % Number of customers - end of period 11,942 14,495 21% Interstate Pipelines Quarter Ended March 31, % Diff Fav/ Unfav Results of Operatit ns: Revenues $ 147 $ 127 (14%) Expenses: Natural gas % Operation and maintenance (23%) Depreciation and amortization (8%) Taxes other than income taxes % Total % Operating Income $ 76 $ 60 (21%) Equity in Earnings of Unconsolidated Affiliates $ 4 $ 6 50% Pipelines Operating Data: Throughput data in BCF Transportation (17%) Reference is made to the Notes to the Consolidated Financial Statements contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc 91

44 CenterPoint Energy, Inc. and Subsidiaries Results of Operations by Segment (Millions of Dollars) (Unaudited) Results of Operations: Revenues Expenses: Natural gas Operation and maintenance Depreciation and amortization Taxes other than income taxes Total Operating Income Equity in Earnings of Unconsolidated Affiliates Field Services Operating Data: Throughput data in BCF Gathering Results of Operations: Revenues Expenses Operating Income (Loss) Field Services Quarter Ended March 31, % Diff Fay/ Unfav $ 90 $105 17% (20%) % 9 11 (22%) 1 2 (100%) (7%) $ 36 $ 47 31% $ 2 $ 3 50% % Other Operations Quarter Ended March 31, % Diff Fav/ Unfav $ 3 $ % LQ) $ 2 300% Capital Expenditures by Segment (Millions of Dollars) (Unaudited) Capital Expenditures by Segment Electric Transmission & Distribution Natural Gas Distribution Competitive Natural Gas Sales and Services Interstate Pipelines Field Services Other Operations Total Quarter Ended March 31, $106 $ $253 $242 Interest Expense Detail (Millions of Dollars) (Unaudited) Quarter Ended March 31, Interest Expense Detail Amortization of Deferred Financing Cost $ 7 $ 7 Capitalization of Interest Cost (2) (1) Transition and System Restoration Bond Interest Expense Other Interest Expense Total Interest Expense $149 $147 Reference is made to the Notes to the Consolidated Financial Statements contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc. 92

45 CenterPoint Energy, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Millions of Dollars) (Unaudited) December 31, March 31, Current Assets: Cash and cash equivalents Other current assets Total current assets Property, Plant and Equipment, net Other Assets: Goodwill Regulatory assets Other non-current assets Total other assets Total Assets ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Short-term borrowings Current portion of transition and system restoration bonds long-term debt Current portion of indexed debt Current portion of other long-term debt Other current liabilities Total current liabilities Other Liabilities: Accumulated deferred income taxes, net Regulatory liabilities Other non-current liabilities Total other liabilities Long-term Debt: Transition and system restoration bonds Other Total long-term debt Shareholders' Equity Total Liabilities and Shareholders' Equity $ 220 $ 1,096 2,117 1,872 2,337 2,968 12,402 12,512 1,696 1,696 4,619 4, ,964 6,871 $ 21,703 $22,351 $ ,047 2,593 3,832 1,039 1,376 6,247 2,215 6,426 8,641 4,222 $ 21,703 $ ,717 2,735 3,944 1,071 1,310 6,325 3,686 5,319 9,005 4,286 $22,351 Reference is made to the Notes to the Consolidated Financial Statements contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc. 93

46 CenterPoint Energy, Inc. and Subsidiaries Condensed Statements of Consolidated Cash Flows (Millions of Dollars) (Unaudited) Three Months Ended March 31, Cash Flows from Operating Activities: Net income $ 148 $ 147 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Deferred income taxes Changes in net regulatory assets Changes in other assets and liabilities 173 (65) Other, net 1 4 Net Cash Provided by Operating Activities Net Cash Used in Investing Activities (308) (292) Net Cash Provided by (Used in) Financing Activities (423) 744 Net Increase (Decrease) in Cash and Cash Equivalents (104) 876 Cash and Cash Equivalents at Beginning of Period Cash and Cash Equivalents at End of Period $ 95 $ 1,096 Reference is made to the Notes to the Consolidated Financial Statements contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc. 94

47 EDGAIrOaline CENTERPOINT ENERGY INC FORM 8-K (Current report filing) Filed 08/01/12 for the Period Ending 07/26/12 Address Telephone CIK Symbol SIC Code Industry Sector Fiscal Year 1111 LOUISIANA ST HOUSTON, TX CNP Electric Services Electric Utilities Utilities 12/31 Powered By EDG,^Woiing hftp:// Copyright 2012, EDGAR Online, Inc. All Rights Reserved. Distribution and use of this document restricted under EDGAR Online, Inc. Terms of Use. 95

48 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): July 26, 2012 CENTERPOINT ENERGY, INC. (Exact name of registrant as specified in its charter) Texas (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 1111 Louisiana Houston, Texas (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (713) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): q Written communications pursuant to Rule 425 under the Securities Act (17 CFR ) q q q Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR e-4(c)) 96

49 Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. On July 26, 2012, CenterPoint Energy, Inc. ("CenterPoint") appointed Scott M. Prochazka as its Executive Vice President and Chief Operating Officer, effective as of August 1, Mr. Prochazka, age 46, has served as Senior Vice President and Division President, Electric Operations of CenterPoint since May He previously served as Division Senior Vice President, Electric Operations of CenterPoint's wholly owned subsidiary, CenterPoint Energy Houston Electric, LLC, from February 2009 to May 2011; as Division Senior Vice President Regional Operations of CenterPoint's wholly owned subsidiary, CenterPoint Energy Resources Corp., from February 2008 to February 2009; and as Division Vice President, Customer Service Operations, from October 2006 to February As of the date of this filing, CenterPoint has not made any determination with regard to any plan, contract, arrangement or award for Mr. Prochazka in connection with this appointment. 97

50 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CENTERPOINT ENERGY, INC. Date: August 1, 2012 By: /s/ Christopher J. Arntzen Christopher J. Arntzen Vice President, Deputy General Counsel and Assistant Corporate Secretary 98