CENTERPOINT ENERGY, INC. HOUSTON, Feb. 28, 2017 /PRNewswire/ --
-- Company reiterates 2017 EPS guidance of $1.25 - $1.33. Earnings growth
driven by
-- Utility rate relief and continued customer growth,
-- Increased contribution from CenterPoint Energy Services, partially
attributable to recent acquisitions, and
-- Increased earnings per Enable Midstream Partners' forecast, as
provided on Enable's fourth quarter 2016 earnings call,
-- Company targets upper end of 4-6% earnings growth range for 2018
CenterPoint Energy, Inc. (NYSE: CNP) today reported full-year 2016 net income of $432 million, or $1.00 per diluted share, compared to a net loss of $692 million, or a loss of $1.61 per diluted share in 2015. This loss included pre-tax impairment charges taken during 2015 totaling $1,846 million, related to midstream investments.
On a guidance basis, full-year 2016 earnings were $1.16 per diluted share, consisting of $0.88 from utility operations and $0.28 from midstream investments. Full-year 2015 earnings on a guidance basis were $1.10 per diluted share, consisting of $0.79 from utility operations and $0.31 from midstream investments.
Fourth quarter 2016 earnings were $0.23 per diluted share, compared to a net loss of $1.18 per diluted share for the fourth quarter of 2015. This loss included pre-tax impairment charges totaling $984 million related to midstream investments. On a guidance basis, fourth quarter 2016 earnings were $0.26 per diluted share, compared to fourth quarter 2015 earnings of $0.27 per diluted share.
"I am very pleased with our performance in 2016. We had solid results and delivered more than 5 percent year-over-year EPS growth on a guidance basis," said Scott M. Prochazka, president and chief executive officer of CenterPoint Energy. "We continue to see notably strong customer growth across our service territory, including more than 2 percent customer growth in and around the Houston area."
Business Segments
Electric Transmission & Distribution
The electric transmission & distribution segment reported full-year 2016 operating income of $628 million, consisting of $537 million from the regulated electric transmission & distribution utility operations (TDU) and $91 million related to securitization bonds.Operating income for the same period of 2015 was $607 million, consisting of $502 million from the TDU and $105 million related to securitization bonds.
Full-year 2016 operating income for the TDU benefited from rate relief, customer growth with the addition of over 54,000 customers, as well as higher equity return, primarily due to true-up proceeds. These increases were partially offset by higher depreciation, higher O&M expenses and lower right of way revenues.
Natural Gas Distribution
The natural gas distribution segment reported full-year 2016 operating income of $303 million compared with $273 million in 2015.
Full-year 2016 operating income for natural gas distribution improved as a result of rate relief, lower bad debt expense and customer growth with the addition of more than 35,000 customers. This improvement was partially offset by increased depreciation and amortization, increased labor and benefits expenses and increased contract services expenses.
Energy Services
The energy services segment reported full-year 2016 operating income of $20 million, which included a mark-to-market loss of $21 million, compared with $42 million in 2015, which included a mark-to-market gain of $4 million. Excluding mark-to-market adjustments, operating income was $41 million in 2016 and $38 million in 2015.
Midstream Investments
The midstream investments segment reported full-year 2016 equity income of $208 million, compared to a loss of $1,633 million in 2015, which included the impairment charges noted above. The impairments in 2015 were partially offset by full-year earnings of $213 million.
Earnings Outlook
CenterPoint Energy expects earnings on a guidance basis for 2017 in the range of $1.25 - $1.33 per diluted share. This guidance includes anticipated utility operations earnings of $0.93 - $0.97 per diluted share and anticipated midstream investment earnings of $0.31 - $0.37 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 a 54.1 percent limited partner ownership interest 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 Feb. 21, 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.
CenterPoint Energy, Inc. and Subsidiaries Reconciliation of Net Income (Loss) and
Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS used in providing annual earnings guidance
Twelve Months Ended
-------------------
December 31, 2016 December 31, 2015
----------------- -----------------
Net Income Diluted EPS Net Income Diluted EPS
(in millions) (in millions)
------------ ------------
Consolidated as
reported $432 $1.00 $(692) $(1.61)
Midstream Investments (121) (0.28) 1,024 2.38
Utility Operations (1) 311 0.72 332 0.77
--- ---- --- ----
Loss on impairment of
Midstream
Investments:
CenterPoint's
impairment of its
investment in Enable
(net of taxes of
$456)(3) - - 769 1.79
CenterPoint's share of
Enable's impairment
of its goodwill and
long-lived assets
(net of taxes of
$233)(3) - - 388 0.90
Total loss on
impairment - - 1,157 2.69
Midstream Investments
excluding loss on
impairment 121 0.28 133 0.31
--- ---- --- ----
Consolidated excluding
loss on impairment 432 1.00 465 1.08
--- ---- --- ----
Timing effects
impacting CES(2):
Mark-to-market
(gains) losses (net
of taxes of $8 and
$2)(3) 13 0.03 (2) (0.01)
ZENS-related mark-
to-market (gains)
losses:
Marketable securities
(net of taxes of $114
and $33) (3)(4) (212) (0.49) 60 0.14
Indexed debt
securities (net of
taxes of $145 and
$26) (3)(5) 268 0.62 (48) (0.11)
Utility operations
earnings on an
adjusted guidance
basis $380 $0.88 $342 $0.79
---- ----- ---- -----
Adjusted net income
and adjusted diluted
EPS used in providing
earnings guidance:
Utility Operations on
a guidance basis $380 $0.88 $342 $0.79
Midstream Investments
excluding loss on
impairment 121 0.28 133 0.31
Consolidated on a
guidance basis $501 $1.16 $475 $1.10
==== ===== ==== =====
CenterPoint
earnings
excluding
Midstream
(1) Investments
(2) Energy Services
segment
Taxes are
computed based
on the impact
removing such
item would have
(3) 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. Results
prior to June
23, 2015 also
included AOL
Inc.
(5) 2016 includes
amount
associated with
the Charter
Communications,
Inc. and Time
Warner Cable
Inc. merger
2015 includes
amount
associated with
Verizon tender
offer for AOL,
Inc common
stock
CenterPoint Energy, Inc. and Subsidiaries Reconciliation of Net Income (Loss) and
Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS used in providing annual earnings guidance
Quarter Ended
-------------
December 31, 2016 December 31, 2015
----------------- -----------------
Net Income Diluted EPS Net Income Diluted EPS
(in millions) (in millions)
------------ ------------
Consolidated as
reported $101 $0.23 $(509) $(1.18)
Midstream Investments (25) (0.06) 589 1.37
Utility Operations (1) 76 0.17 80 0.19
--- ---- --- ----
Loss on impairment of
Midstream
Investments:
CenterPoint's
impairment of its
investment in Enable
(net of taxes of
$362)(3) - - 613 1.43
CenterPoint's share of
Enable's impairment
of its goodwill and
long-lived assets
(net of taxes of
$2)(3) - - 7 0.01
Total loss on
impairment - - 620 1.44
Midstream Investments
excluding loss on
impairment 25 0.06 31 0.07
--- ---- --- ----
Consolidated excluding
loss on impairment 101 0.23 111 0.26
--- ---- --- ----
Timing effects
impacting CES(2):
Mark-to-market
(gains) losses (net
of taxes of $1)(3) 2 0.01 - -
ZENS-related mark-
to-market (gains)
losses:
Marketable securities
(net of taxes of $49
and $8) (3)(4) (90) (0.21) 13 0.03
Indexed debt
securities (net of
taxes of $55 and $4)
(3) 100 0.23 (8) (0.02)
Utility operations
earnings on an
adjusted guidance
basis $88 $0.20 $85 $0.20
--- ----- --- -----
Adjusted net income
and adjusted diluted
EPS used in providing
earnings guidance:
Utility Operations on
a guidance basis $88 $0.20 $85 $0.20
Midstream Investments
excluding loss on
impairment 25 0.06 31 0.07
Consolidated on a
guidance basis $113 $0.26 $116 $0.27
==== ===== ==== =====
CenterPoint
earnings
excluding
Midstream
(1) 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.
Filing of Form 10-K for CenterPoint Energy, Inc.
Today, CenterPoint Energy, Inc. filed with the Securities and Exchange Commission (SEC) its Annual Report on Form 10-K for the year ended December 31, 2016. 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 Tuesday, February 28, 2017, at 10:00 a.m. Central time or 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 a 54.1 percent limited partner interest 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 140 years. For more information, visit the website at 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, health care reform, financial reform, tax legislation, and actions regarding the rates charged by CenterPoint Energy's regulated businesses; (2) 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 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 natural gas liquids, and the effects of geographic and seasonal commodity price differentials, and the impact of commodity changes on producer related activities; (9) weather variations and other natural phenomena, including the impact on operations and capital from severe weather events; (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; (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) effectiveness of CenterPoint Energy's risk management activities; (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 to satisfy their obligations to CenterPoint Energy and its subsidiaries; (20) the ability of retail electric providers, and particularly the largest customers of the TDU, to satisfy their obligations to CenterPoint Energy and its subsidiaries; (21) the outcome of litigation; (22) CenterPoint Energy's ability to control costs, invest planned capital, or execute growth projects; (23) the investment performance of pension and postretirement benefit plans; (24) potential business strategies, including restructurings, joint ventures, and acquisitions or dispositions of assets or businesses, for which no assurance can be given that they will be completed or will provide the anticipated benefits to CenterPoint Energy; (25) acquisition and merger activities and successful integration of such activities, involving CenterPoint Energy or its 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, 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 rate; (30) the effect of changes in and application of accounting standards and pronouncements; (31) other factors discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2016, 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, mark-to-market gains or losses resulting from the company's Energy Services business and adjustments for impairment charges. 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, mark-to-market gains or losses resulting from the company's Energy Services business and impairment charges 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.
For more information contact
Media:
Leticia Lowe
Phone 713.207.7702
Investors:
David Mordy
Phone 713.207.6500
CenterPoint Energy, Inc. and Subsidiaries
Statements of Consolidated Income
(Millions of Dollars)
(Unaudited)
Quarter Ended Year Ended
December 31, December 31,
------------ ------------
2016 2015 2016 2015
---- ---- ---- ----
Revenues:
Utility revenues $1,437 $1,346 $5,440 $5,448
Non-utility revenues 644 445 2,088 1,938
Total 2,081 1,791 7,528 7,386
----- ----- ----- -----
Expenses:
Utility natural gas 320 277 983 1,264
Non-utility natural gas 615 415 1,983 1,838
Operation and maintenance 554 542 2,093 2,007
Depreciation and amortization 253 246 1,126 970
Taxes other than income taxes 96 85 384 374
Total 1,838 1,565 6,569 6,453
----- ----- ----- -----
Operating Income 243 226 959 933
--- --- --- ---
Other Income (Expense):
Gain (loss) on marketable securities 139 (21) 326 (93)
Gain (loss) on indexed debt
securities (155) 12 (413) 74
Interest and other finance charges (82) (86) (338) (352)
Interest on securitization bonds (21) (25) (91) (105)
Equity in earnings (losses) of
unconsolidated affiliate 44 (934) 208 (1,633)
Other - net (6) 10 35 46
--- ---
Total (81) (1,044) (273) (2,063)
--- ------ ---- ------
Income (Loss) Before Income Taxes 162 (818) 686 (1,130)
Income Tax Expense (Benefit) 61 (309) 254 (438)
--- ---- --- ----
Net Income (Loss) $101 $(509) $432 $(692)
==== ===== ==== =====
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report on Form 10-K 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 Year Ended
December 31, December 31,
------------ ------------
2016 2015 2016 2015
---- ---- ---- ----
Basic Earnings (Loss) Per Common Share $0.23 $(1.18) $1.00 $(1.61)
===== ====== ===== ======
Diluted Earnings (Loss) Per Common Share $0.23 $(1.18) $1.00 $(1.61)
===== ====== ===== ======
Dividends Declared per Common Share $0.2575 $0.2475 1.0300 $0.9900
Weighted Average Common Shares Outstanding
(000):
- Basic 430,682 430,262 430,606 430,180
- Diluted 433,679 430,262 433,603 430,180
Operating Income by Segment
---------------------------
Electric Transmission & Distribution:
TDU $109 $84 $537 $502
Bond Companies 21 25 91 105
Total Electric Transmission & Distribution 130 109 628 607
Natural Gas Distribution 101 97 303 273
Energy Services 9 13 20 42
Other Operations 3 7 8 11
Total $243 $226 $959 $933
==== ==== ==== ====
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.
CenterPoint Energy, Inc. and Subsidiaries
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
Electric Transmission & Distribution
------------------------------------
Quarter Ended Year Ended
December 31, % Diff December 31, % Diff
------------ ------------
2016 2015 Fav/(Unfav) 2016 2015 Fav/(Unfav)
---- ---- ----------- ---- ---- -----------
Results of Operations:
Revenues:
TDU $626 $582 8% $2,507 $2,364 6%
Bond Companies 103 119 (13%) 553 481 15%
--- --- --- ---
Total 729 701 4% 3,060 2,845 8%
--- --- ----- -----
Expenses:
Operation and maintenance, excluding Bond
Companies 360 356 (1%) 1,355 1,300 (4%)
Depreciation and amortization, excluding
Bond Companies 99 87 (14%) 384 340 (13%)
Taxes other than income taxes 58 55 (5%) 231 222 (4%)
Bond Companies 82 94 13% 462 376 (23%)
--- --- --- ---
Total 599 592 (1%) 2,432 2,238 (9%)
--- --- ----- -----
Operating Income $130 $109 19% $628 $607 3%
==== ==== ==== ====
Operating Income:
TDU $109 $84 30% $537 $502 7%
Bond Companies 21 25 (16%) 91 105 (13%)
--- --- --- ---
Total Segment Operating Income $130 $109 19% $628 $607 3%
==== ==== ==== ====
Electric Transmission & Distribution
Operating Data:
Actual MWH Delivered
Residential 6,159,687 5,711,032 8% 29,586,399 28,995,001 2%
Total 19,990,319 18,812,439 6% 86,828,902 84,190,647 3%
Weather (average for service area):
Percentage of 10-year average:
Cooling degree days 200% 118% 82% 112% 101% 11%
Heating degree days 25% 61% (36%) 61% 102% (41%)
Number of metered customers -end of
period:
Residential 2,129,773 2,079,899 2% 2,129,773 2,079,899 2%
Total 2,403,340 2,348,517 2% 2,403,340 2,348,517 2%
Natural Gas Distribution
------------------------
Quarter Ended Year Ended
December 31, % Diff December 31, % Diff
------------ ------------
2016 2015 Fav/(Unfav) 2016 2015 Fav/(Unfav)
---- ---- ----------- ---- ---- -----------
Results of Operations:
Revenues $716 $653 10% $2,409 $2,632 (8%)
Natural gas 329 283 (16%) 1,008 1,297 22%
--- --- ----- -----
Gross Margin 387 370 5% 1,401 1,335 5%
--- --- ----- -----
Expenses:
Operation and maintenance 188 187 (1%) 714 697 (2%)
Depreciation and amortization 62 57 (9%) 242 222 (9%)
Taxes other than income taxes 36 29 (24%) 142 143 1%
Total 286 273 (5%) 1,098 1,062 (3%)
Operating Income $101 $97 4% $303 $273 11%
==== === ==== ====
Natural Gas Distribution Operating Data:
Throughput data in BCF
Residential 47 43 9% 152 171 (11%)
Commercial and Industrial 66 66 - 259 262 (1%)
Total Throughput 113 109 4% 411 433 (5%)
=== === === ===
Weather (average for service area)
Percentage of 10-year average:
Heating degree days 80% 73% 7% 84% 95% (11%)
Number of customers - end of period:
Residential 3,183,538 3,149,845 1% 3,183,538 3,149,845 1%
Commercial and Industrial 255,806 253,921 1% 255,806 253,921 1%
Total 3,439,344 3,403,766 1% 3,439,344 3,403,766 1%
========= ========= ========= =========
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.
CenterPoint Energy, Inc. and Subsidiaries
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
Energy Services
---------------
Quarter Ended Year Ended
December 31, % Diff December 31, % Diff
------------ ------------
2016 2015 Fav/(Unfav) 2016 2015 Fav/(Unfav)
---- ---- ----------- ---- ---- -----------
Results of Operations:
Revenues $649 $447 45% $2,099 $1,957 7%
Natural gas 622 422 (47%) 2,011 1,867 (8%)
--- --- ----- -----
Gross Margin 27 25 8% 88 90 (2%)
--- --- --- ---
Expenses:
Operation and maintenance 16 10 (60%) 59 42 (40%)
Depreciation and amortization 2 2 - 7 5 (40%)
Taxes other than income taxes - - - 2 1 (100%)
Total 18 12 (50%) 68 48 (42%)
Operating Income $9 $13 (31%) $20 $42 (52%)
=== === === ===
Mark-to-market gain (loss) $(3) $1 (400%) $(21) $4 (625%)
=== === ==== ===
Energy Services Operating Data:
Throughput data in BCF 207 159 30% 777 618 26%
=== === === ===
Number of customers - end of period 30,332 18,099 68% 30,332 18,099 68%
====== ====== ====== ======
Other Operations
----------------
Quarter Ended Year Ended
December 31, % Diff December 31, % Diff
------------ ------------
2016 2015 Fav/(Unfav) 2016 2015 Fav/(Unfav)
---- ---- ----------- ---- ---- -----------
Results of Operations:
Revenues $4 $3 33% $15 $14 7%
Expenses (income) 1 (4) (125%) 7 3 (133%)
Operating Income $3 $7 (57%) $8 $11 (27%)
=== === === ===
Capital Expenditures by Segment
(Millions of Dollars)
(Unaudited)
Quarter Ended Year Ended
December 31, December 31,
------------ ------------
2016 2015 2016 2015
---- ---- ---- ----
Capital Expenditures by Segment
Electric Transmission & Distribution $220 $269 $858 $934
Natural Gas Distribution 139 185 510 601
Energy Services 2 1 5 5
Other Operations 17 6 33 35
Total $378 $461 $1,406 $1,575
==== ==== ====== ======
Interest Expense Detail
(Millions of Dollars)
(Unaudited)
Quarter Ended Year Ended
December 31, December 31,
------------ ------------
2016 2015 2016 2015
---- ---- ---- ----
Interest Expense Detail
Amortization of Deferred Financing
Cost $6 $6 $24 $25
Capitalization of Interest Cost (3) (3) (8) (10)
Transition and System Restoration
Bond Interest Expense 21 25 91 105
Other Interest Expense 79 83 322 337
Total Interest Expense $103 $111 $429 $457
==== ==== ==== ====
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.
CenterPoint Energy, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Millions of Dollars)
(Unaudited)
December 31, December 31,
2016 2015
---- ----
ASSETS
Current Assets:
Cash and cash equivalents $341 $264
Other current assets 2,582 2,425
Total current assets 2,923 2,689
----- -----
Property, Plant and Equipment, net 12,307 11,537
------ ------
Other Assets:
Goodwill 862 840
Regulatory assets 2,677 3,129
Investment in unconsolidated affiliate 2,505 2,594
Preferred units -unconsolidated affiliate 363 -
Other non-current assets 192 501
Total other assets 6,599 7,064
Total Assets $21,829 $21,290
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Short-term borrowings $35 $40
Current portion of securitization bonds long-
term debt 411 391
Indexed debt 114 145
Current portion of other long-term debt 500 328
Other current liabilities 2,020 1,554
Total current liabilities 3,080 2,458
----- -----
Other Liabilities:
Accumulated deferred income taxes, net 5,263 5,047
Regulatory liabilities 1,298 1,276
Other non-current liabilities 1,196 1,182
Total other liabilities 7,757 7,505
----- -----
Long-term Debt:
Securitization bonds 1,867 2,276
Other 5,665 5,590
Total long-term debt 7,532 7,866
----- -----
Shareholders' Equity 3,460 3,461
Total Liabilities and Shareholders' Equity $21,829 $21,290
======= =======
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.
CenterPoint Energy, Inc. and Subsidiaries
Condensed Statements of Consolidated Cash Flows
(Millions of Dollars)
(Unaudited)
Year Ended December 31,
-----------------------
2016 2015
---- ----
Cash Flows from Operating Activities:
Net income (loss) $432 $(692)
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation and
amortization 1,152 997
Deferred income taxes 213 (413)
Write-down of natural gas
inventory 1 4
Equity in (earnings) losses
of unconsolidated
affiliate, net of
distributions (208) 1,779
Changes in net regulatory
assets (60) 63
Changes in other assets and
liabilities 353 105
Other, net 45 22
Net Cash Provided by
Operating Activities 1,928 1,865
Net Cash Used in Investing
Activities (1,046) (1,387)
Net Cash Used in Financing
Activities (805) (512)
---- ----
Net Increase (Decrease) in
Cash and Cash Equivalents 77 (34)
Cash and Cash Equivalents at
Beginning of Period 264 298
Cash and Cash Equivalents at
End of Period $341 $264
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Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/centerpoint-energy-reports-full-year-2016-earnings-of-100-per-diluted-share-116-per-diluted-share-on-a-guidance-basis-300414471.html
SOURCE CenterPoint Energy, Inc.
