UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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 10, 2016
CENTERPOINT ENERGY, INC.
(Exact name of registrant as specified in its charter)
| Texas | 1-31447 | 74-0694415 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) | ||
| 1111 Louisiana Houston, Texas |
77002 | |||
| (Address of principal executive offices) | (Zip Code) | |||
Registrant’s telephone number, including area code: (713) 207-1111
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 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Conditions.
On May 10, 2016, CenterPoint Energy, Inc. (“CenterPoint Energy”) reported first quarter 2016 earnings. For additional information regarding CenterPoint Energy’s first quarter 2016 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.
Item 7.01 Regulation FD Disclosure.
CenterPoint Energy is holding a conference call to discuss its first quarter 2016 earnings on May 10, 2016. Information about the call can be found in the Press Release furnished herewith as Exhibit 99.1. For additional information regarding CenterPoint Energy’s first quarter 2016 earnings, please refer to the supplemental materials which are being posted on CenterPoint Energy’s website and are attached to this report as Exhibit 99.2 (the “Supplemental Materials”), which Supplemental Materials are incorporated by reference herein.
Item 9.01 Financial Statements and Exhibits.
The information in the Press Release and the Supplemental Materials is being furnished, not filed, pursuant to Item 2.02 and 7.01, respectively. Accordingly, the information in the Press Release and the Supplemental Materials 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.
(d) Exhibits.
| EXHIBIT NUMBER |
EXHIBIT DESCRIPTION | |
| 99.1 | Press Release issued May 10, 2016 regarding CenterPoint Energy, Inc.’s first quarter 2016 earnings | |
| 99.2 | Supplemental Materials regarding CenterPoint Energy, Inc.’s first quarter 2016 earnings | |
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 10, 2016 | By: | /s/ Kristie L. Colvin | ||||
| Kristie L. Colvin | ||||||
| Senior Vice President and Chief Accounting Officer | ||||||
EXHIBIT INDEX
| EXHIBIT NUMBER |
EXHIBIT DESCRIPTION | |
| 99.1 | Press Release issued May 10, 2016 regarding CenterPoint Energy, Inc.’s first quarter 2016 earnings | |
| 99.2 | Supplemental Materials regarding CenterPoint Energy, Inc.’s first quarter 2016 earnings | |
Exhibit 99.1
|
For more information contact Media: Leticia Lowe Phone 713.207.7702 Investors: David Mordy Phone 713.207.6500 |
| For Immediate Release | Page 1 of 5 |
CenterPoint Energy reports first quarter 2016 earnings of $0.36 per
diluted share and reaffirms full year guidance of $1.12 to $1.20
| • | Strong utility performance despite milder weather |
| • | Midstream Investments delivers earnings contributions in-line with expectations |
Houston, TX – May 10, 2016 - CenterPoint Energy, Inc. (NYSE: CNP) today reported net income of $154 million, or $0.36 per diluted share, for the first quarter of 2016, compared with $131 million, or $0.30 per diluted share for the same period of the prior year. On a guidance basis, first quarter 2016 earnings were $0.32 per diluted share, consisting of $0.23 from utility operations and $0.09 from midstream investments.
Operating income for the first quarter of 2016 was $250 million, compared with $256 million in the first quarter of the prior year. Equity income from midstream investments was $60 million for the first quarter of 2016, compared with $52 million for the same period in the prior year.
“2016 is off to a solid start with strong performance from our gas and electric utilities,” said Scott M. Prochazka, president and chief executive officer of CenterPoint Energy. “Enable Midstream provided first quarter earnings in-line with expectations as they continue to execute their strategy.”
Electric Transmission & Distribution
The electric transmission & distribution segment reported operating income of $83 million for the first quarter of 2016, consisting of $59 million from the regulated electric transmission & distribution utility operations (TDU) and $24 million related to securitization bonds. Operating income for the first quarter of 2015 was $96 million, consisting of $68 million from the TDU and $28 million related to securitization bonds.
Operating income for the TDU benefited primarily from higher net transmission related revenues ($11 million) and customer growth ($6 million). These benefits were more than offset by higher depreciation ($12 million), lower right of way revenues ($6 million) and higher operations and maintenance expense ($5 million).
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Page 2 of 5
Natural Gas Distribution
The natural gas distribution segment reported operating income of $160 million for the first quarter of 2016, compared with $146 million for the same period of 2015. Operating income benefited from rate increases ($21 million) and customer growth ($2 million). These benefits were partially offset by decreased usage ($4 million), higher depreciation and amortization expenses ($4 million) and higher labor and benefits expenses ($3 million).
Energy Services
The energy services segment reported operating income of $6 million for the first quarter of 2016, which included a mark-to-market accounting loss of $9 million, compared with $13 million for the same period of 2015, which included a mark-to-market loss of $4 million. Excluding mark-to-market losses, the remaining $2 million decrease was margin related, primarily due to reduced weather-related optimization opportunities.
Midstream Investments
The midstream investments segment reported $60 million of equity income for the first quarter of 2016, compared with $52 million in the first quarter of the prior year.
Enable Midstream also declared a quarterly cash distribution on April 26, 2016, of $0.318 per common and subordinated unit. Please refer to Enable’s May 4, 2016, earnings press release for details.
Dividend Declaration
On April 28, 2016, CenterPoint Energy’s board of directors declared a regular quarterly cash dividend of $0.2575 per share of common stock payable on June 10, 2016, to shareholders of record as of the close of business on May 16, 2016.
Outlook for 2016
On a consolidated basis, CenterPoint Energy reaffirms its earnings estimate for 2016 in the range of $1.12 to $1.20 per diluted share.
The guidance range considers utility operations 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 does not include other potential impacts, such as changes in accounting standards or unusual items, earnings 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 service business.
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Page 3 of 5
In providing guidance, the company assumes for midstream investments a 55.4 percent limited partner ownership interest in Enable Midstream and includes the amortization of our basis differential in Enable Midstream. The company’s guidance takes into account such factors as Enable Midstream’s most recent public outlook for 2016 dated May 4, 2016, 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 and diluted EPS to the basis used in providing 2016 annual earnings guidance
| Quarter Ended March 31, 2016 |
||||||||
| Net Income (in millions) |
EPS | |||||||
| Consolidated as reported |
$ | 154 | $ | 0.36 | ||||
| Midstream Investments |
(37 | ) | (0.09 | ) | ||||
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| Utility Operations (1) |
117 | 0.27 | ||||||
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| Timing effects impacting CES(2): |
||||||||
| Mark-to-market (gains) losses |
6 | 0.01 | ||||||
| ZENS-related mark-to-market (gains) losses: |
||||||||
| Marketable securities (3) |
(58 | ) | (0.13 | ) | ||||
| Indexed debt securities |
36 | 0.08 | ||||||
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| Utility operations earnings on an adjusted guidance basis |
$ | 101 | $ | 0.23 | ||||
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| Per the basis used in providing 2016 earnings guidance: |
||||||||
| Utility Operations on a guidance basis |
$ | 101 | $ | 0.23 | ||||
| Midstream Investments |
37 | 0.09 | ||||||
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| 2016 Consolidated on a guidance basis |
$ | 138 | $ | 0.32 | ||||
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| (1) | CenterPoint earnings excluding Midstream Investments |
| (2) | Energy Services segment |
| (3) | Time Warner Inc., Time Warner Cable Inc., and Time Inc. |
Page 4 of 5
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, 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 Tues., May 10, 2016, at 10 a.m. Central time or 11 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 55.4 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 7,400 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
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Page 5 of 5
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, 2015, as well as in CenterPoint Energy’s Quarterly Report on Form 10-Q for the quarter ended March 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
In addition to presenting its financial results in accordance with generally accepted accounting principles (GAAP), CenterPoint Energy also provides guidance based on adjusted diluted earnings per share, which is a non-GAAP financial measure. 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. A reconciliation of net income and diluted earnings per share to the basis used in providing 2016 guidance is provided in this news release.
Management evaluates financial performance in part based on adjusted diluted earnings per share and believes that presenting this non-GAAP financial measure 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 by excluding items that Management does not believe most accurately reflect its fundamental business performance, which items include the items reflected in the reconciliation table of this news release. This non-GAAP financial measure should be considered as a supplement and complement to, and not as a substitute for, or superior to, the most directly comparable GAAP financial measure and may be different than non-GAAP financial measures used by other companies.
###
CenterPoint Energy, Inc. and Subsidiaries
Statements of Consolidated Income
(Millions of Dollars)
(Unaudited)
| Quarter Ended March 31, |
||||||||
| 2016 | 2015 | |||||||
| Revenues: |
||||||||
| Electric Transmission & Distribution |
$ | 660 | $ | 612 | ||||
| Natural Gas Distribution |
895 | 1,193 | ||||||
| Energy Services |
439 | 650 | ||||||
| Other Operations |
4 | 4 | ||||||
| Eliminations |
(14 | ) | (26 | ) | ||||
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|||||
| Total |
1,984 | 2,433 | ||||||
|
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|||||
| Expenses: |
||||||||
| Natural gas |
852 | 1,354 | ||||||
| Operation and maintenance |
521 | 498 | ||||||
| Depreciation and amortization |
260 | 217 | ||||||
| Taxes other than income taxes |
101 | 108 | ||||||
|
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|
|
|||||
| Total |
1,734 | 2,177 | ||||||
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|||||
| Operating Income |
250 | 256 | ||||||
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|||||
| Other Income (Expense) : |
||||||||
| Gain (loss) on marketable securities |
90 | (17 | ) | |||||
| Gain (loss) on indexed debt securities |
(56 | ) | 24 | |||||
| Interest and other finance charges |
(87 | ) | (89 | ) | ||||
| Interest on securitization bonds |
(24 | ) | (28 | ) | ||||
| Equity in earnings of unconsolidated affiliate |
60 | 52 | ||||||
| Other - net |
7 | 11 | ||||||
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|||||
| Total |
(10 | ) | (47 | ) | ||||
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|||||
| Income Before Income Taxes |
240 | 209 | ||||||
| Income Tax Expense |
86 | 78 | ||||||
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| Net Income |
$ | 154 | $ | 131 | ||||
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Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.
CenterPoint Energy, Inc. and Subsidiaries
Selected Data From Statements of Consolidated Income
(Millions of Dollars, Except Share and Per Share Amounts)
(Unaudited)
| Quarter Ended March 31, |
||||||||
| 2016 | 2015 | |||||||
| Basic Earnings Per Common Share |
$ | 0.36 | $ | 0.30 | ||||
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| Diluted Earnings Per Common Share |
$ | 0.36 | $ | 0.30 | ||||
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| Dividends Declared per Common Share |
0.2575 | $ | 0.2475 | |||||
| Weighted Average Common Shares Outstanding (000): |
||||||||
| - Basic |
430,407 | 429,955 | ||||||
| - Diluted |
432,594 | 431,183 | ||||||
| Operating Income by Segment |
||||||||
| Electric Transmission & Distribution: |
||||||||
| Electric Transmission and Distribution Operations |
$ | 59 | $ | 68 | ||||
| Transition and System Restoration Bond Companies |
24 | 28 | ||||||
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| Total Electric Transmission & Distribution |
83 | 96 | ||||||
| Natural Gas Distribution |
160 | 146 | ||||||
| Energy Services |
6 | 13 | ||||||
| Other Operations |
1 | 1 | ||||||
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| Total |
$ | 250 | $ | 256 | ||||
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Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.
CenterPoint Energy, Inc. and Subsidiaries
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
| Electric Transmission & Distribution | ||||||||||||
| Quarter Ended March 31, |
% Diff Fav/(Unfav) |
|||||||||||
| 2016 | 2015 | |||||||||||
| Results of Operations: |
||||||||||||
| Revenues: |
||||||||||||
| Electric transmission and distribution utility |
$ | 540 | $ | 514 | 5 | % | ||||||
| Transition and system restoration bond companies |
120 | 98 | 22 | % | ||||||||
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| Total |
660 | 612 | 8 | % | ||||||||
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|||||||||
| Expenses: |
||||||||||||
| Operation and maintenance |
329 | 307 | (7 | %) | ||||||||
| Depreciation and amortization |
95 | 83 | (14 | %) | ||||||||
| Taxes other than income taxes |
57 | 56 | (2 | %) | ||||||||
| Transition and system restoration bond companies |
96 | 70 | (37 | %) | ||||||||
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| Total |
577 | 516 | (12 | %) | ||||||||
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|||||||||
| Operating Income |
$ | 83 | $ | 96 | (14 | %) | ||||||
|
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| Operating Income: |
||||||||||||
| Electric transmission and distribution operations |
$ | 59 | $ | 68 | (13 | %) | ||||||
| Transition and system restoration bond companies |
24 | 28 | (14 | %) | ||||||||
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|||||||||
| Total Segment Operating Income |
$ | 83 | $ | 96 | (14 | %) | ||||||
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|||||||||
| Electric Transmission & Distribution Operating Data: |
||||||||||||
| Actual MWH Delivered |
||||||||||||
| Residential |
5,019,455 | 5,412,794 | (7 | %) | ||||||||
| Total |
18,130,601 | 18,014,776 | 1 | % | ||||||||
| Weather (average for service area): |
||||||||||||
| Percentage of 10-year average: |
||||||||||||
| Cooling degree days |
111 | % | 57 | % | 54 | % | ||||||
| Heating degree days |
86 | % | 135 | % | (49 | %) | ||||||
| Number of metered customers - end of period: |
||||||||||||
| Residential |
2,095,035 | 2,043,463 | 3 | % | ||||||||
| Total |
2,364,784 | 2,310,706 | 2 | % | ||||||||
| Natural Gas Distribution | ||||||||||||
| Quarter Ended March 31, |
% Diff Fav/(Unfav) |
|||||||||||
| 2016 | 2015 | |||||||||||
| Results of Operations: |
||||||||||||
| Revenues |
$ | 895 | $ | 1,193 | (25 | %) | ||||||
| Natural gas |
445 | 756 | 41 | % | ||||||||
|
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|||||||||
| Gross Margin |
450 | 437 | 3 | % | ||||||||
|
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|
|
|
|||||||||
| Expenses: |
||||||||||||
| Operation and maintenance |
189 | 186 | (2 | %) | ||||||||
| Depreciation and amortization |
59 | 55 | (7 | %) | ||||||||
| Taxes other than income taxes |
42 | 50 | 16 | % | ||||||||
|
|
|
|
|
|||||||||
| Total |
290 | 291 | — | |||||||||
|
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|
|
|
|||||||||
| Operating Income |
$ | 160 | $ | 146 | 10 | % | ||||||
|
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|||||||||
| Natural Gas Distribution Operating Data: |
||||||||||||
| Throughput data in BCF |
||||||||||||
| Residential |
73 | 97 | (25 | %) | ||||||||
| Commercial and Industrial |
86 | 88 | (2 | %) | ||||||||
|
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|
|
|
|||||||||
| Total Throughput |
159 | 185 | (14 | %) | ||||||||
|
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|||||||||
| Weather (average for service area) |
||||||||||||
| Percentage of 10-year average: |
||||||||||||
| Heating degree days |
87 | % | 113 | % | (26 | %) | ||||||
| Number of customers - end of period: |
||||||||||||
| Residential |
3,163,094 | 3,137,337 | 1 | % | ||||||||
| Commercial and Industrial |
254,781 | 251,811 | 1 | % | ||||||||
|
|
|
|
|
|||||||||
| Total |
3,417,875 | 3,389,148 | 1 | % | ||||||||
|
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Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.
CenterPoint Energy, Inc. and Subsidiaries
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
| Energy Services | ||||||||||||
| Quarter Ended March 31, |
% Diff Fav/(Unfav) |
|||||||||||
| 2016 | 2015 | |||||||||||
| Results of Operations: |
||||||||||||
| Revenues |
$ | 439 | $ | 650 | (32 | %) | ||||||
| Natural gas |
421 | 624 | 33 | % | ||||||||
|
|
|
|
|
|||||||||
| Gross Margin |
18 | 26 | (31 | %) | ||||||||
|
|
|
|
|
|||||||||
| Expenses: |
||||||||||||
| Operation and maintenance |
10 | 12 | 17 | % | ||||||||
| Depreciation and amortization |
1 | 1 | — | |||||||||
| Taxes other than income taxes |
1 | — | — | |||||||||
|
|
|
|
|
|||||||||
| Total |
12 | 13 | 8 | % | ||||||||
|
|
|
|
|
|||||||||
| Operating Income |
$ | 6 | $ | 13 | (54 | %) | ||||||
|
|
|
|
|
|||||||||
| Mark-to-market loss |
$ | (9 | ) | $ | (4 | ) | (125 | %) | ||||
|
|
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|
|
|||||||||
| Energy Services Operating Data: |
||||||||||||
| Throughput data in BCF |
171 | 185 | (8 | %) | ||||||||
|
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|
|
|
|||||||||
| Number of customers - end of period |
18,073 | 18,206 | (1 | %) | ||||||||
|
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|||||||||
| Other Operations | ||||||||||||
| Quarter Ended March 31, |
% Diff Fav/(Unfav) |
|||||||||||
| 2016 | 2015 | |||||||||||
| Results of Operations: |
||||||||||||
| Revenues |
$ | 4 | $ | 4 | — | |||||||
| Expenses |
3 | 3 | — | |||||||||
|
|
|
|
|
|||||||||
| Operating Income |
$ | 1 | $ | 1 | — | |||||||
|
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Capital Expenditures by Segment
(Millions of Dollars)
(Unaudited)
| Quarter Ended March 31, |
||||||||
| 2016 | 2015 | |||||||
| Capital Expenditures by Segment |
||||||||
| Electric Transmission & Distribution |
$ | 212 | $ | 208 | ||||
| Natural Gas Distribution |
89 | 91 | ||||||
| Energy Services |
— | 1 | ||||||
| Other Operations |
8 | 9 | ||||||
|
|
|
|
|
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| Total |
$ | 309 | $ | 309 | ||||
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|
|
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Interest Expense Detail
(Millions of Dollars)
(Unaudited)
| Quarter Ended March 31, |
||||||||
| 2016 | 2015 | |||||||
| Interest Expense Detail |
||||||||
| Amortization of Deferred Financing Cost |
$ | 6 | $ | 6 | ||||
| Capitalization of Interest Cost |
(2 | ) | (3 | ) | ||||
| Transition and System Restoration Bond Interest Expense |
24 | 28 | ||||||
| Other Interest Expense |
83 | 86 | ||||||
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|
|
|
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| Total Interest Expense |
$ | 111 | $ | 117 | ||||
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Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.
CenterPoint Energy, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Millions of Dollars)
(Unaudited)
| March 31, 2016 |
December 31, 2015 |
|||||||
| ASSETS | ||||||||
| Current Assets: |
||||||||
| Cash and cash equivalents |
$ | 218 | $ | 264 | ||||
| Other current assets |
2,117 | 2,425 | ||||||
|
|
|
|
|
|||||
| Total current assets |
2,335 | 2,689 | ||||||
|
|
|
|
|
|||||
| Property, Plant and Equipment, net |
11,718 | 11,537 | ||||||
|
|
|
|
|
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| Other Assets: |
||||||||
| Goodwill |
840 | 840 | ||||||
| Regulatory assets |
3,031 | 3,129 | ||||||
| Investment in unconsolidated affiliate |
2,580 | 2,594 | ||||||
| Preferred units – unconsolidated affiliate |
363 | — | ||||||
| Other non-current assets |
137 | 501 | ||||||
|
|
|
|
|
|||||
| Total other assets |
6,951 | 7,064 | ||||||
|
|
|
|
|
|||||
| Total Assets |
$ | 21,004 | $ | 21,290 | ||||
|
|
|
|
|
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| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current Liabilities: |
||||||||
| Short-term borrowings |
$ | — | $ | 40 | ||||
| Current portion of securitization bonds long-term debt |
400 | 391 | ||||||
| Indexed debt |
148 | 145 | ||||||
| Current portion of other long-term debt |
576 | 328 | ||||||
| Other current liabilities |
1,410 | 1,554 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
2,534 | 2,458 | ||||||
|
|
|
|
|
|||||
| Other Liabilities: |
||||||||
| Accumulated deferred income taxes, net |
5,116 | 5,047 | ||||||
| Regulatory liabilities |
1,306 | 1,276 | ||||||
| Other non-current liabilities |
1,188 | 1,182 | ||||||
|
|
|
|
|
|||||
| Total other liabilities |
7,610 | 7,505 | ||||||
|
|
|
|
|
|||||
| Long-term Debt: |
||||||||
| Securitization bonds |
2,122 | 2,276 | ||||||
| Other |
5,232 | 5,590 | ||||||
|
|
|
|
|
|||||
| Total long-term debt |
7,354 | 7,866 | ||||||
|
|
|
|
|
|||||
| Shareholders’ Equity |
3,506 | 3,461 | ||||||
|
|
|
|
|
|||||
| Total Liabilities and Shareholders’ Equity |
$ | 21,004 | $ | 21,290 | ||||
|
|
|
|
|
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Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.
CenterPoint Energy, Inc. and Subsidiaries
Condensed Statements of Consolidated Cash Flows
(Millions of Dollars)
(Unaudited)
| Three Months Ended March 31, | ||||||||
| 2016 | 2015 | |||||||
| Cash Flows from Operating Activities: |
||||||||
| Net income |
$ | 154 | $ | 131 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Depreciation and amortization |
266 | 224 | ||||||
| Deferred income taxes |
65 | 7 | ||||||
| Write-down of natural gas inventory |
1 | 2 | ||||||
| Equity in earnings of unconsolidated affiliate, net of distributions |
(60 | ) | 20 | |||||
| Changes in net regulatory assets |
2 | 58 | ||||||
| Changes in other assets and liabilities |
203 | 225 | ||||||
| Other, net |
3 | (1 | ) | |||||
|
|
|
|
|
|||||
| Net Cash Provided by Operating Activities |
634 | 666 | ||||||
| Net Cash Used in Investing Activities |
(269 | ) | (337 | ) | ||||
| Net Cash Used in Financing Activities |
(411 | ) | (393 | ) | ||||
|
|
|
|
|
|||||
| Net Decrease in Cash and Cash Equivalents |
(46 | ) | (64 | ) | ||||
| Cash and Cash Equivalents at Beginning of Period |
264 | 298 | ||||||
|
|
|
|
|
|||||
| Cash and Cash Equivalents at End of Period |
$ | 218 | $ | 234 | ||||
|
|
|
|
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Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.
 • Strong utility performance despite milder weather • Midstream Investments delivers earnings contributions in-line with expectations
• Company reaffirms full year guidance of $1.12 to $1.20 1 Quarter 2016 Earnings Call May 10, 2016 Exhibit 99.2 st |
 investors.centerpointenergy.com
investors.centerpointenergy.com
2 Cautionary Statement This presentation and the oral statements made in connection herewith contain statements concerning our expectations, beliefs, plans,
objectives, goals, strategies, future operations, events, financial
position, earnings, growth, costs, prospects capital investments or
performance or underlying assumptions (including future regulatory filings and recovery, liquidity, capital resources, balance sheet, cash flow, capital investments and management, financing costs, and rate base or customer growth) and other statements that are not historical
facts. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You should not place undue reliance on forward-looking statements.
Actual results may differ materially from those expressed or implied by these statements. You can generally identify our forward-looking statements by the words “anticipate,” “believe,”
“continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “objective,” “plan,”
“potential,” “predict,” “projection,”
“should,” “will,” or other similar words. The absence of these words, however, does not mean that the statements are not forward-looking.
Examples of forward-looking statements in this
presentation include statements about our Continuum acquisition, including statements about future financial performance, margin and operating income and growth, guidance , including earnings and dividend growth, future financing plans and expectation for liquidity and capital
resources, tax rates and interest rates, among other statements. We have based our forward-looking statements on our management's beliefs and assumptions based on information currently available to our management at
the time the statements are made. We caution you that assumptions, beliefs, expectations, intentions, and projections about future events may and often do vary materially from actual results.
Therefore, we cannot assure you that actual results will not differ materially from those expressed or implied by our forward-looking statements. Some of the factors that could cause actual results to differ from those expressed or implied by our forward-looking statements
include but are not limited to the timing and impact of future regulatory, legislative and IRS decisions, financial market conditions, future market conditions, economic and employment conditions, customer
growth, Enable Midstream’s performance and ability to pay distributions, and other factors described in CenterPoint Energy, Inc.’s Form 10-Q for the period ended March 31, 2016 under “Risk
Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Certain Factors Affecting Future Earnings” and in other filings with the SEC by CenterPoint Energy, which can be
found at www.centerpointenergy.com on the Investor Relations page or on the SEC’s website at www.sec.gov.
This presentation contains time sensitive information that
is accurate as of the date hereof. Some of the information in this presentation is unaudited and may be subject to change. We undertake no obligation to update the information presented herein except as required by law. Investors and others should note that we may announce material information using SEC filings, press releases, public conference calls,
webcasts and the Investors page of our website. In the future, we will continue to use these channels to distribute material information about the Company and to communicate important information about the
Company, key personnel, corporate initiatives, regulatory updates and other matters. Information that we post on our website could be deemed material; therefore, we encourage investors, the media, our
customers, business partners and others interested in our Company to review the information we post on our website.
Use of Non-GAAP Financial Measures In addition to presenting its financial results in accordance with generally accepted accounting principles (“GAAP”),
CenterPoint Energy also provides guidance based on adjusted diluted earnings per share, which is a non-GAAP financial measure. 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. A full reconciliation of net income and
diluted earnings per share to the basis used in providing guidance is provided in this presentation on slide 21. These non-GAAP financial measures should be considered as a supplement and complement to, and
not as a substitute for, or superior to, the most directly comparable GAAP financial measure and may be different than non-GAAP financial measures used by other companies. Management evaluates financial performance in part based on adjusted diluted earnings per share and believes that presenting this
non-GAAP financial measure 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 by excluding items that Management does not believe most accurately reflect its fundamental business performance, which include items reflected in the
reconciliation table on slide 21 of this presentation. This non-GAAP financial measure should be considered as a supplement and complement to, and not as a substitute for, or superior to, the most directly comparable
GAAP financial measure and may be different than non-GAAP financial measures used by other companies.
|
 investors.centerpointenergy.com
3 Earnings Call Highlights First Quarter Performance Highlights Full-Year Outlook Enable Midstream Highlights Scott Prochazka – President and CEO |
 investors.centerpointenergy.com
4 First Quarter 2016 Performance Highlights Note: Refer to slide 21 for reconciliation to GAAP measures and slide 2 for information on non-GAAP measures Q1 2016 vs Q1 2015 Drivers (EPS on a Guidance Basis) Favorable Variance Unfavorable Variance Rate Relief Customer Growth Midstream Investments Depreciation O&M Expenses Weather Related Usage Q1 GAAP EPS Q1 EPS on a Guidance Basis $0.08 $0.09 $0.22 $0.27 2015 2016 $0.30 $0.36 $0.08 $0.09 $0.22 $0.23 2015 2016 $0.30 $0.32 |
 investors.centerpointenergy.com
$0.31 $0.24 - $0.28 $0.79 $0.88 - $0.92 2015 2016 5 Full-Year Outlook Our focus remains to invest in our current utility service territories to address ongoing growth, maintenance, reliability, safety and customer service Earnings from Utility Operations are expected to represent 75% - 80% of overall earnings in 2016 We anticipate 2016 Utility Operations earnings growth will be driven by:
Note: Refer to slide 2 for information on non-GAAP measures
2016 Guidance Range vs. 2015 EPS on a Guidance Basis
$1.12 - $1.20 $1.10 Effective capital management Optimization of financing costs Customer and sales growth Efficient rate recovery |
 investors.centerpointenergy.com
6 Enable Midstream Highlights Source: Enable Midstream Partners, May 4, 2016, Press Release and Q1 Earnings Call. Please refer to these materials for an overview of
Enable’s Q1 Performance. (1)
As of the end of each quarter; as of April 12, 2016 there were 22 active rigs
contractually dedicated to Enable’s gathering and processing system in the SCOOP and STACK plays (2) Available liquidity calculated as Revolving Credit Facility of $1.75B less principal advances of $715MM, less $3MM in
letters of
credit Active Rigs Connected to Enable in SCOOP/STACK (1) 26 21 16 22 24 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 Enable Q1 2016 Performance Announced a first quarter 2016 cash distribution of $0.318 per common and subordinated unit Increased first quarter 2016 per-day natural gas processed volumes by 6% compared to first quarter 2015 Increased first quarter 2016 crude oil gathered volumes by 22.1 MBbl/d compared to first
quarter 2015 and by 5.8 MBbl/d compared to fourth quarter 2015
Enable has $1.03 billion of available liquidity (2) and achieved a first quarter 2016 distribution coverage ratio greater than 1.0x Enable continues to monitor customer activity levels and is focused on deploying capital
efficiently |
 investors.centerpointenergy.com
7 Earnings Call Highlights Houston Electric Results Houston Electric Growth A Houston Electric lineman working on lines damaged by storms the week of April 17 th Tracy Bridge – EVP & President, Electric Division |
 investors.centerpointenergy.com
$68 $59 $11 $6 ($12) ($6) ($5) ($3) $- $10 $20 $30 $40 $50 $60 $70 $80 $90 Q1 2015 TDU Core Operating Income Rate relief Customer growth Depreciation Right of way revenue O&M expense Other Q1 2016 TDU Core Operating Income (1) Houston Electric’s customer count increased from 2,310,706 as of March 31, 2015, to 2,364,784 as of March 31, 2016
(2) 2015 TDU core operating income represents total segment operating income of $96 million, excluding operating income from transition and
system restoration bonds of $28 million (3)
Net transmission related revenue
(4) Primarily due to weather-related usage (5) 2016 TDU core operating income represents total segment operating income of $83 million, excluding operating income from transition and
system restoration bonds of $24 million 2% YoY
Customer Growth (1) (2) (3) (5) Electric Transmission and Distribution Operating Income Drivers: Q1 2015 vs Q1 2016 8 (4) |
 investors.centerpointenergy.com
Houston Electric Residential Meter Count
(3) 9 Houston Electric Growth -125 -75 -25 25 75 125 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 December to December Houston Job Growth (1,2) (1) Job growth data from the Texas Workforce Commission (2) 2016 job growth forecast from the Greater Houston Partnership (3) Meter count data from CenterPoint Energy (4) Houston population growth from the U.S. Census Bureau In 2015, metro Houston led the nation in population growth, adding 159,000 residents (more than
Dallas or Atlanta)
(4) CenterPoint had in excess of 2% meter growth year-over-year, as of the 1 st quarter of 2016 |
 investors.centerpointenergy.com
10 2015 Minnesota Beltline Replacement Project in downtown Minneapolis Earnings Call Highlights Gas Utilities Results Energy Services Results o Acquisition of Continuum Retail Energy Services Joe McGoldrick – EVP & President, Gas Division |
 investors.centerpointenergy.com
$146 $160 $21 $2 ($4) ($4) ($1) $130 $135 $140 $145 $150 $155 $160 $165 $170 $175 Q1 2015 Gas Utility Operating Income Rate relief Customer growth Usage, primarily weather Depreciation Other Q1 2016 Gas Utility Operating Income 11 1% YoY Customer Growth (1) (1) Natural Gas Utilities’ customer count increased from 3,389,148 on March 31, 2015, to 3,417,875 on March 31, 2016
(2) Primarily due to higher labor and benefits expenses (2) Natural Gas Utilities Operating Income Drivers: Q1 2015 vs Q1 2016 |
 investors.centerpointenergy.com
$17 $15 $1 ($3) $10 $12 $14 $16 $18 $20 $22 $24 $26 $28 $30 Q1 2015 Energy Services Operating Income Other Margin Q1 2016 Energy Services Operating Income 12 (1) (3,4) (1) Operating income as reported in Q1 2015 was $13 million. Chart excludes mark-to-market loss of $4 million.
(2) Primarily due to lower O&M expenses (3) Excludes energy services business acquired from Continuum; acquisition closed on April 1, 2016
(4) Operating income as reported in Q1 2016 was $6 million. Chart excludes mark-to-market loss of $9 million.
Energy Services Operating Income Drivers: Q1 2015 vs Q1 2016 (2) |
 investors.centerpointenergy.com
CenterPoint Energy Services Acquires Continuum’s Retail Energy Services Business Acquisition closed on April 1, 2016 Acquisition includes Continuum’s retail business, Choice customers, and origination & logistics assets Aggregate purchase price of $77.5 million plus working capital and customary post-closing purchase price adjustments Acquisition complements overall natural gas strategy and increases Energy Services’ commercial and industrial customer base by over 30% Expanded operational footprint positions Energy Services to access more markets, grow efficiently, and achieve economies of scale Combined energy services business will continue to operate with a low Value-at-Risk business model Expected to increase annual gross margin of Energy Services by approximately 40% Combined energy services business projected to contribute $40 - $50 million in annual operating income in 2017 13 (1) Includes Continuum’s energy services customers and operational footprint |
 investors.centerpointenergy.com
14 Bill Rogers – EVP & CFO Earnings Call Highlights First Quarter Earnings Guidance Parameters Financing, Interest Expense & Tax |
 investors.centerpointenergy.com
15 Note: Refer to slide 2 for information on non-GAAP measures EPS: Q1 2016 vs Q1 2015 EPS EPS Consolidated as reported 0.36 $ 0.30 $ Midstream Investments (0.09) (0.08) Utility Operations (1) 0.27 0.22 Timing effects impacting CES (2) : Mark-to-market (gains) losses 0.01 0.01 ZENS-related mark-to-market (gains) losses: Marketable securities (3) (0.13) 0.03 Indexed debt securities 0.08 (0.04) Utility operations earnings on an adjusted guidance basis 0.23 $ 0.22 $ Per the basis used in providing earnings guidance: Utility Operations on a guidance basis 0.23 $ 0.22 $ Midstream Investments 0.09 0.08 Consolidated on a guidance basis 0.32 $ 0.30 $ (1) CenterPoint earnings excluding Midstream Investments (2) Energy Services segment March 31, 2016 March 31, 2015 Quarter Ended (3) 2016 and 2015 results include Time Warner Inc., Time Warner Cable Inc., and Time Inc.. 2015 results also include
AOL Inc. prior to the merger with Verizon.
|
 investors.centerpointenergy.com
investors.centerpointenergy.com
16 2016 Earnings Guidance Midstream Investments $0.31 2015 Consolidated EPS: $1.10 Utility Operations 2016 Consolidated EPS: $1.12 -$1.20 2015 2016 2017 2018 $0.79 $0.88 to $0.92 $0.24 to $0.28 4-6% YoY EPS Growth Earnings from Utility Operations were ~70% of overall earnings in 2015 and are expected to represent 75% - 80% in 2016 Utility Operations are expected to produce 75-80% of cash flow in 2016 2016 Utility Operations EPS growth expected to include: Enable preferred investment Interest expense benefit Utility operating income growth Note: Refer to slide 2 for information on non-GAAP measures 4-6% YoY EPS Growth 4-6% YoY EPS Growth |
 investors.centerpointenergy.com
Liquidity and Capital Resources
Anticipate strong balance sheet and cash flow
Project total capital investment of ~$1.4 billion for 2016
No external sources or cash from operations needed to finance
$363 million investment in Enable’s perpetual preferred securities
Net incremental borrowings of ~$150 million for 2016, inclusive
of funding of the acquisition of Continuum’s marketing
business Expect to refinance $600 million debt at Houston Electric
in 2016 $325 million with a 6.15% coupon matured at CERC on May
1, 2016 Equity issuance not anticipated in 2016 or
2017 No anticipated incremental financing needs for 2017;
dependent on factors including bonus depreciation, capital
investment plans, and working capital
Tax Rates Continue to anticipate 36% effective tax rate for 2016 Interest Rates Full-year 2016 interest expense projected to be lower than 2015 Near term maturities and refinancing suggest interest expense savings 17 Financing, Interest Expense and Tax (1) Excludes transition and system restoration bonds (2) Total debt includes revolver and commercial paper borrowings; excludes money pool borrowing
Equity/Total Capital
(2) (as of March 31, 2016) CenterPoint Energy Inc. Consolidated 37.1% CenterPoint Energy Houston Electric, LLC 42.5% CenterPoint Energy Resources Corp 58.6% $0 $200 $400 $600 $800 2017 2018 Long Term Debt Maturities ($MM) (1) CNP CERC |
 investors.centerpointenergy.com
18 Appendix |
 investors.centerpointenergy.com
DCRF – Distribution Cost Recovery Factor; GRIP – Gas Reliability Infrastructure Program; PBRC – Performance Based Rate Change Mechanism Expected Effective Date Annual Increase ($MM) Comments Docket # DCRF 3Q 2016 $36.4 Filed on April 4, 2016; request of $49.4 million, representing a $36.4 million increase from 2015 DCRF filing; approval expected during 3Q 2016 45747 Requested annualized rate relief from pending 2016 filings: $36.4 million Jurisdiction Expected Effective Date Annual Increase ($MM) Comments Docket # Houston 3Q 2016 $7.7 GRIP filed in March 2016; pending approval 10508 South Texas 3Q 2016 $2.1 GRIP filed in March 2016; pending approval 10509 Beaumont/ East Texas 3Q 2016 $4.2 GRIP filed in March 2016; pending approval 10510 Texas Coast 3Q 2016 $4.2 GRIP filed in March 2016; pending approval 10511 Oklahoma - $0.5 PBRC filed in March 2016; hearing scheduled for June 7, 2016; pending approval PUD201600094 Requested annualized rate relief from pending 2016 filings: $18.7 million Q1 2016 Regulatory Update 19 Electric Transmission and Distribution: 2016 Regulatory Update Natural Gas Utilities: 2016 Regulatory Update |
 investors.centerpointenergy.com
Jurisdiction Effective Date Rate Relief ($MM) Comments Docket # Minnesota October 2015 Interim rates effective in October 2015 Rate case requesting an annual increase of $54.1MM filed in August 2015; interim increase of $47.8MM effective in October 2015; final decision from the MPUC expected in mid-2016 15-424 MPUC – Minnesota Public Utilities Commission; BDA – Billing Determinant Rate Adjustment (1) Interim rates begin the recognition of revenue, subject to refund (pending issuance of final order)
Jurisdiction Date Recognized Rate Relief ($MM) Comments Docket # Arkansas December 2015 $5.5 BDA filed in March 2016; revenue recognized in fourth quarter 2015; interim rates effective in June 2016; pending approval 06-161-U Rate relief from 2016 filings recognized in 2015 (includes interim rates (1) ): $5.5 million Q1 2016 Regulatory Update 20 Jurisdiction Expected Effective Date Annual Increase ($MM) Comments Docket # Arkansas 3Q 2016 $35.6 Rate case filed on November 10, 2015; pending approval 15-098-U Requested annualized rate relief from pending 2015 filings: $35.6 million
Additional pending 2015 filings
Natural Gas Utilities: 2016 Regulatory Update (Continued)
|
 investors.centerpointenergy.com
21 Note: Refer to slide 2 for information on non-GAAP measures Reconciliation: Net Income and diluted EPS to the Basis Used in Providing Annual Earnings Guidance Net Income (in millions) EPS Net Income (in millions) EPS Consolidated as reported 154 $ 0.36 $ 131 $ 0.30 $ Midstream Investments (37) (0.09) (33) (0.08) Utility Operations (1) 117 0.27 98 0.22 Timing effects impacting CES
(2) : Mark-to-market (gains) losses 6 0.01 3 0.01 ZENS-related mark-to-market (gains) losses:
Marketable securities
(3) (58) (0.13) 11 0.03 Indexed debt securities
36 0.08 (16) (0.04) Utility operations earnings on an adjusted guidance basis 101 $ 0.23 $ 96 $
0.22 $ Per the basis used in providing earnings guidance: Utility Operations on a guidance basis 101 $ 0.23 $ 96 $
0.22 $ Midstream Investments 37 0.09 33 0.08 Consolidated on a guidance basis
138 $ 0.32 $ 129 $ 0.30 $ (1) CenterPoint earnings excluding Midstream Investments (2) Energy Services segment (3) 2016 and 2015 results include Time Warner Inc., Time Warner Cable Inc., and Time Inc.. 2015 results also include AOL Inc. prior to the
merger with Verizon. March 31, 2016
March 31, 2015
Quarter Ended |