CenterPoint Energy Reports Third Quarter 2012 Earnings

            CenterPoint Energy Reports Third Quarter 2012 Earnings

PR Newswire

HOUSTON, Nov. 7, 2012

HOUSTON, Nov. 7, 2012 /PRNewswire/ --CenterPoint Energy, Inc. (NYSE: CNP)
today reported net income of $10 million, or $0.02 per diluted share, for the
third quarter of 2012. The results for the third quarter of 2012 include two
unusual items: (i) a $252 million non-cash goodwill impairment charge
associated with its competitive natural gas sales and services business, which
has no tax effect and (ii) a $136 million non-cash, pre-tax gain associated
with the acquisition of the additional 50 percent interest in the Waskom
gathering and processing joint venture. Excluding these amounts, the third
quarter net income would have been $174 million, or $0.40 per diluted share.

(Logo:http://photos.prnewswire.com/prnh/20020930/CNPLOGO)

Net income for the third quarter 2011 was $973 million, or $2.27 per diluted
share. These results also included an unusual item: net income of $811
million, or $1.89 per diluted share, associated with the final resolution of
the true-up appeal. Excluding this unusual item, net income for the third
quarter of 2011 would have been $162 million, or $0.38 per diluted share.

Operating income for the third quarter of 2012 was $88 million. Excluding
unusual items, operating income for the third quarter of 2012 would have been
$340 million compared to $357 million for the same period last year.

"While this quarter's financial results were impacted by two unusual items,
our overall business performance was solid and in line with our expectations,"
said David M. McClanahan, president and chief executive officer of CenterPoint
Energy. "Our regulated electric and gas distribution utilities achieved
strong results and our midstream and energy services businesses performed well
given the current market environment of low natural gas prices and minimal
geographic price differentials."

For the nine months ended September 30, 2012, net income was $283 million, or
$0.66 per diluted share, compared to $1,240 million, or $2.89 per diluted
share, for the same period of 2011. Excluding the effects of the unusual items
noted above, net income would have been $447 million, or $1.04 per diluted
share, for the nine months ended September 30, 2012, compared to $429 million,
or $1.00 per diluted share, for the same period of 2011.

Operating income for the nine months ended September 30, 2012 was $728
million. Excluding unusual items, operating income for the nine months ended
September 30, 2012 would have been $980 million compared to $1,024 million for
the same period last year.

Electric Transmission & Distribution

The electric transmission & distribution segment reported operating income of
$242 million for the third quarter of 2012, consisting of $205 million from
the regulated electric transmission & distribution utility operations (TDU)
and $37 million related to securitization bonds. Operating income for the
third quarter of 2011 was $244 million, consisting of $213 million from the
TDU and $31 million related to securitization bonds. Operating income for the
TDU benefited from growth of over 40,000 metered customers since September
2011, higher transmission-related revenue, ongoing recognition of deferred
equity returns associated primarily with the company's true-up proceeds, and
higher miscellaneous revenue. These increases were more than offset by a
revenue decrease caused by a return to more normal weather when compared to
the weather experienced in 2011 as well as impacts from new rates implemented
in September 2011.

Operating income for the nine months ended September 30, 2012, was $540
million, consisting of $428 million from the TDU and $112 million related to
securitization bonds. Operating income for the same period of 2011 was $530
million, consisting of $434 million from the TDU and $96 million related to
securitization bonds.

Natural Gas Distribution

The natural gas distribution segment reported operating income of $5 million
for the third quarter of 2012 compared to a loss of $2 million for the same
period of 2011. Operating income improved primarily as a result of customer
growth, reduced expenses, and rate changes. This was partially offset by an
increase in depreciation due to assets being placed in service.

Operating income for the nine months ended September 30, 2012, was $135
million compared to $153 million for the same period of 2011.

Interstate Pipelines

The interstate pipelines segment reported operating income of $48 million for
the third quarter of 2012 compared to $60 million for the same period of 2011.
The decline was primarily due to reductions in seasonal and market sensitive
transportation services and ancillary services, as well as a reduction in
compressor efficiency on our Carthage to Perryville pipeline due to lower
volumes.

In addition to operating income, this segment recorded equity income of $8
million for the third quarter of 2012 from its 50 percent interest in the
Southeast Supply Header (SESH)compared to $6 million for the same period of
2011. This improvement was primarily due to the restructuring and extension of
a long-term agreement with an anchor shipper at the end of 2011.

Operating income for the nine months ended September 30, 2012, was $160
million compared to $196 million for the same period of 2011. In addition to
operating income, this segment recorded equity income of $20 million for the
nine months ended September 30, 2012, from its 50 percent interest in SESH
compared to $15 million for the same period of 2011.

Field Services

The field services segment reported operating income of $55 million for the
third quarter of 2012 compared to $61 million for the same period of 2011.
Operating income benefited from growth in the core business and additional
income from two acquisitions completed in the second and third quarters, which
were offset by lower commodity prices from the sale of retained natural gas,
the timing of revenues from contracts with throughput commitments, and higher
depreciation expense due to assets being placed in service.

As of August 1, 2012, Waskom's earnings are now included in Field Services'
operating income as the company acquired the remaining 50 percent ownership on
July 31, 2012. In the third quarter of 2011, this segment reported equity
earnings of $2 million from its 50 percent interest in its Waskom gathering
and processing joint venture. Equity income from Waskom for the month of July
2012 was less than $1 million.

Operating income for the nine months ended September 30, 2012, was $153
million compared to $136 million for the same period of 2011. Equity income
from Waskom was $5 million for the nine months ended September 30, 2012 as
compared to $7 million for the nine months ended September 30, 2011.

Competitive Natural Gas Sales and Services

The competitive natural gas sales and services segment reported an operating
loss of $7 million for the third quarter of 2012, excluding the $252 million
goodwill impairment charge, compared to an operating loss of $10 million for
the same period of 2011. The third quarter of 2012 included losses of $9
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 gains of $5 million for the same period of 2011. In the
third quarter of 2011 there was also a $6 million write-down of natural gas
inventory to the lower of average cost or market. Business results improved
approximately $11 million primarily due to the termination of uneconomic
transportation contracts and an increase in retail sales customers and
volumes.

The operating loss for the nine months ended September 30, 2012, was $10
million, excluding the $252 million goodwill impairment charge, compared to
operating income of $3 million for the same period of 2011. The results for
the nine months ended September 30, 2012, included charges of $14 million
compared to gains of $8 million for the same period of 2011 resulting from
mark-to-market accounting. The nine months ended September 30, 2012, also
included a $4 million write-down of natural gas inventory to the lower of
average cost or market compared to a $6 million write-down in the same period
of 2011.

Goodwill Impairment

As part of the company's annual goodwill impairment test, a $252 million
goodwill impairment charge associated with the competitive natural gas sales
and services segment was recorded in the third quarter of 2012. Adverse
wholesale market conditions facing this segment, specifically the prospects
for continued low geographic and seasonal price differentials, led to a
reduction in the estimate of the fair value of goodwill associated with this
business unit. No other business unit required a goodwill impairment charge.

Dividend Declaration

On October 24, 2012, CenterPoint Energy's board of directors declared a
regular quarterly cash dividend of $0.2025 per share of common stock payable
on December 10, 2012, to shareholders of record as of the close of business on
November 16, 2012.

Outlook for 2012

Excluding the effects of the gain associated with the acquisition of the
additional 50 percent interest in Waskom and the goodwill impairment charge,
CenterPoint Energy reaffirms its 2012 earnings guidance of $1.13 to $1.23 per
diluted share. This guidance takes into consideration performance to date and
various economic and operational assumptions related to the business segments
in which the company operates. Significant variables that may impact results
include commodity prices, throughput volume, weather, regulatory proceedings,
effective tax rates and financing activities. In providing this guidance, the
company does not include the impact of any changes in accounting standards,
significant future acquisitions or divestitures, 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
September 30, 2012. 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
Wednesday, November 7, 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. and Subsidiaries
Reconciliation of reported Net Income and diluted EPS to the basis used in
providing 2012 annual earnings guidance
                                  Quarter Ended          Nine Months Ended
                                  September 30, 2012     September 30, 2012
                                  Net Income     EPS     Net Income     EPS
                                  (in millions)          (in millions)
As reported                       $    10     $0.02   $   283      $ 0.66
Step Acquisition Gain, after-tax  (88)           (0.21)  (88)           (0.21)
^ (1)
Goodwill Impairment Charge ^(2)   252            0.59    252            0.59
Excluding Unusual Items ^(1), (2) $   174      $0.40   $   447     $ 1.04
Timing effects impacting CES^(3):
Mark-to-market (gains) losses -   6              0.01    9              0.02
natural gas derivative contracts
Natural gas inventory write-downs -              -       3              0.01
ZENS-related mark-to-market
(gains) losses:
Marketable securities^(4)         (51)           (0.12)  (89)           (0.21)
Indexed debt securities           34             0.08    49             0.12
Per basis used in providing 2012  $   163      $0.37   $   419      $ 0.98
annual earnings guidance

        After-tax step acquisition gain associated with the acquisition of the
^(1)   additional 50% interest in the Waskom gas gathering and processing
        joint venture
^(2)   Goodwill impairment charge associated with the competitive natural gas
        sales and services segment
^(3)   Competitive natural gas sales and services segment
^(4)   Time Warner Inc., Time Warner Cable Inc. and AOL Inc.



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 1995. 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, 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) timely and appropriate rate
actions that allow 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 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,
the competitive effects of excess pipeline capacity in the regions we serve,
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
and natural gas liquids prices on the level of drilling and production
activities in the regions served by CenterPoint Energy; (9) competition in
CenterPoint Energy's mid-continent region footprint for access to natural gas
supplies and 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 its
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 or its subsidiaries; (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 under "Risk Factors" in CenterPoint Energy's Annual
Report on Form 10-K for the fiscal year ended December 31, 2011, as well as in
CenterPoint Energy's Quarterly Reports on Form 10-Q for the quarters ended
March 31, 2012, June 30, 2012, and September 30, 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
Statements of Consolidated Income
(Millions of Dollars)
(Unaudited)
                                Three Months Ended      Nine Months Ended
                                September 30,           September 30,
                                2011        2012        2011        2012
Revenues:
Electric Transmission &         $  707     $  748     $ 1,802    $ 1,955
Distribution
Natural Gas Distribution        384         355         2,048       1,575
Competitive Natural Gas         584         389         1,876       1,222
Sales and Services
Interstate Pipelines           135         122         424         374
Field Services                  117         141         305         350
Other Operations                3           3           9           9
Eliminations                    (49)        (53)        (159)       (171)
Total                           1,881       1,705       6,305       5,314
Expenses:
Natural gas                     735         520         2,989       1,898
Operation and maintenance       448         458         1,333       1,364
Depreciation and                253         301         677         800
amortization
Taxes other than income         88          86          282         272
taxes
Goodwill impairment            -           252         -           252
Total                           1,524       1,617       5,281       4,586
Operating Income                357         88          1,024       728
Other Income (Expense):
Gain (loss) on marketable       (80)        77          (30)        136
securities
Gain (loss) on indexed debt     88          (52)        65          (76)
securities
Interest and other finance      (114)       (104)       (341)       (318)
charges
Interest on transition and      (31)        (37)        (96)        (112)
system restoration bonds
Equity in earnings of           8           8           22          25
unconsolidated affiliates
Return on true-up balance       352         -           352         -
Step acquisition gain          -           136         -           136
Other - net                     10          12          19          28
Total                           233         40          (9)         (181)
Income Before Income Taxes      590         128         1,015       547
and Extraordinary Item
Income Tax Expense              204         118         362         264
Income Before Extraordinary     386         10          653         283
Item
Extraordinary Item, net of      587         -           587         -
tax
Net Income                      $  973     $   10    $ 1,240    $   283
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)
                            Three Months Ended          Nine Months Ended
                            September 30,               September 30,
                            2011           2012         2011         2012
Basic Earnings Per Common
Share:
 Income Before             $   0.90    $          $   1.53  $  
Extraordinary Item                         0.02                     0.66
 Extraordinary item, net   1.38           -            1.38         -
of tax
 Net Income                $   2.28    $          $   2.91  $  
                                           0.02                     0.66
Diluted Earnings Per
Common Share:
 Income Before             $   0.90    $          $   1.52  $  
Extraordinary Item                         0.02                     0.66
 Extraordinary item, net   1.37           -            1.37         -
of tax
 Net Income                $   2.27    $          $   2.89  $  
                                           0.02                     0.66
Dividends Declared per      $ 0.1975      $ 0.2025    $ 0.5925    $ 0.6075
Common Share
 Weighted Average
Common Shares Outstanding
(000):
- Basic                     425,885        427,406      425,517      427,086
- Diluted                   428,842        429,983      428,452      429,655
Operating Income (Loss)
by Segment
Electric Transmission &
Distribution:
Electric Transmission and   $    213    $         $    434  $   
Distribution Operations                    205                       428
Transition and System
Restoration Bond            31             37           96           112
Companies
Total Electric
Transmission &              244            242          530          540
Distribution
Natural Gas Distribution    (2)            5            153          135
Competitive Natural Gas     (10)           (259)        3            (262)
Sales and Services
Interstate Pipelines        60             48           196          160
Field Services              61             55           136          153
Other Operations            4              (3)          6            2
Total                       $    357    $        $  1,024   $   
                                           88                        728
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
              Three Months Ended                   Nine Months Ended
              September 30,           % Diff       September 30,           % Diff
              2011        2012        Fav/(Unfav)  2011        2012        Fav/(Unfav)
Results of
Operations:
Revenues:
Electric
transmission  $        $                     $         $  
and           565        563        -            1,454       1,492       3%
distribution
utility
Transition
and system
restoration   142         185         30%          348         463         33%
bond
companies
Total         707         748         6%           1,802       1,955       8%
Expenses:
Operation
and           228         228         -            655         680         (4%)
maintenance
Depreciation
and           70          76          (9%)         207         224         (8%)
amortization
Taxes other
than income   54          54          -            158         160         (1%)
taxes
Transition
and system
restoration   111         148         (33%)        252         351         (39%)
bond
companies
Total         463         506         (9%)         1,272       1,415       (11%)
Operating     $        $        (1%)         $        $        2%
Income        244        242                     530        540
Operating
Income:
Electric
transmission  $        $                     $        $   
and           213        205        (4%)         434        428        (1%)
distribution
operations
Transition
and system
restoration   31          37          19%          96          112         17%
bond
companies
Total
Segment       $        $        (1%)         $        $        2%
Operating     244        242                     530        540
Income
Electric
Transmission
&
Distribution
Operating
Data:
Actual MWH
Delivered
Residential   10,681,975  9,524,144   (11%)        23,337,859  21,966,632  (6%)
Total         24,956,915  23,752,736  (5%)         62,802,372  61,284,447  (2%)
Weather
(average for
service
area):
Percentage
of 10-year
average:
Cooling       121%        101%        (20%)        123%        111%        (12%)
degree days
Heating       -           -           -            106%        54%         (52%)
degree days
Number of
metered
customers -
end of
period:
Residential   1,898,789   1,934,078   2%           1,898,789   1,934,078   2%
Total         2,149,594   2,189,796   2%           2,149,594   2,189,796   2%
              Natural Gas Distribution
              Three Months Ended                   Nine Months Ended
              September 30,           % Diff       September 30,           % Diff
              2011        2012        Fav/(Unfav)  2011        2012        Fav/(Unfav)
Results of
Operations:
Revenues      $        $        (8%)         $         $         (23%)
              384        355                     2,048       1,575
Expenses:
Natural gas   167         134         20%          1,203       763         37%
Operation
and           156         151         3%           481         470         2%
maintenance
Depreciation
and           41          43          (5%)         124         129         (4%)
amortization
Taxes other
than income   22          22          -            87          78          10%
taxes
Total         386         350         9%           1,895       1,440       24%
Operating     $       $                    $        $   
Income         (2)        5        350%         153        135        (12%)
(Loss)
Natural Gas
Distribution
Operating
Data:
Throughput
data in BCF
Residential   12          12          -            122         90          (26%)
Commercial
and           48          49          2%           187         175         (6%)
Industrial
Total         60          61          2%           309         265         (14%)
Throughput
Weather
(average for
service
area)
Percentage
of 10-year
average:
Heating       115%        100%        (15%)        107%        70%         (37%)
degree days
Number of
customers -
end of
period:
Residential   2,990,934   3,022,320   1%           2,990,934   3,022,320   1%
Commercial
and           241,838     242,001     -            241,838     242,001     -
Industrial
Total         3,232,772   3,264,321   1%           3,232,772   3,264,321   1%
Reference is made to the Notes to the Consolidated Financial Statements contained in
the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.





CenterPoint Energy, Inc. and Subsidiaries
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
                      Competitive Natural Gas Sales and Services
                      Three Months                 Nine Months
                      Ended                        Ended
                      September 30,   % Diff       September 30,   % Diff
                      2011    2012    Fav/(Unfav)  2011    2012    Fav/(Unfav)
Results of
Operations:
Revenues              $     $     (33%)        $       $       (35%)
                      584     389                  1,876  1,222
Expenses:
Natural gas           582     382     34%          1,838   1,193   35%
Operation and         10      12      (20%)        31      34      (10%)
maintenance
Depreciation and      1       2       (100%)       3       4       (33%)
amortization
Taxes other than      1       -       -            1       1       -
income taxes
Goodwill impairment  -       252     -            -       252     -
Total                 594     648     (9%)         1,873   1,484   21%
Operating Income      (10)    (259)   (2,490%)     3       (262)   (8,833%)
(Loss)
Goodwill impairment  -       252     -            -       252     -
Operating Income      $     $                  $     $ 
(Loss), excluding     (10)    (7)    30%           3    (10)   (433%)
goodwillimpairment
Competitive Natural
Gas Sales and
Services Operating
Data:
Throughput data in    126     129     2%           407     417     2%
BCF
Number of customers   12,650  14,816  17%          12,650  14,816  17%
- end of period
                      Interstate Pipelines
                      Three Months                 Nine Months
                      Ended                        Ended
                      September 30,   % Diff       September 30,   % Diff
                      2011    2012    Fav/(Unfav)  2011    2012    Fav/(Unfav)
Results of
Operations:
Revenues              $     $     (10%)        $     $     (12%)
                      135     122                  424     374
Expenses:
Natural gas           15      15      -            54      36      33%
Operation and         39      37      5%           109     111     (2%)
maintenance
Depreciation and      13      15      (15%)        40      43      (8%)
amortization
Taxes other than      8       7       13%          25      24      4%
income taxes
Total                 75      74      1%           228     214     6%
Operating Income      $     $     (20%)        $     $     (18%)
                       60     48                 196     160
Equity in earnings    $     $                  $     $  
of unconsolidated      6     8    33%          15     20     33%
affiliates
Pipelines Operating
Data:
Throughput data in
BCF
Transportation        356     306     (14%)        1,208   1,030   (15%)
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)
                      Field Services
                      Three Months                 Nine Months
                      Ended                        Ended
                      September 30,   % Diff       September 30,   % Diff
                      2011    2012    Fav/(Unfav)  2011    2012    Fav/(Unfav)
Results of
Operations:
Revenues              $ 117  $ 141   21%          $ 305  $ 350  15%
Expenses:
Natural gas           19      42      (121%)       52      75      (44%)
Operation and         25      29      (16%)        83      82      1%
maintenance
Depreciation and      9       13      (44%)        28      35      (25%)
amortization
Taxes other than      3       2       33%          6       5       17%
income taxes
Total                 56      86      (54%)        169     197     (17%)
Operating Income      $      $  55  (10%)        $ 136  $ 153  13%
                      61
Equity in earnings    $     $                  $     $  
of unconsolidated     2      -       -            7      5      (29%)
affiliates
Field Services
Operating Data:
Throughput data in
BCF
Gathering             206     221     7%           586     691     18%
                      Other Operations
                      Three Months                 Nine Months
                      Ended                        Ended
                      September 30,   % Diff       September 30,   % Diff
                      2011    2012    Fav/(Unfav)  2011    2012    Fav/(Unfav)
Results of
Operations:
Revenues              $     $     -            $     $     -
                      3      3                    9      9
Expenses              (1)     6       (700%)       3       7       (133%)
Operating Income      $     $      (175%)       $     $     (67%)
(Loss)                4      (3)                 6      2



Capital Expenditures by Segment
(Millions of Dollars)
(Unaudited)
                              Three Months Ended      Nine Months Ended
                              September 30,           September 30,
                              2011        2012        2011        2012
Capital Expenditures by
Segment
Electric Transmission &       $ 135      $ 147      $ 365      $ 417
Distribution
Natural Gas Distribution      89          94          215         250
Competitive Natural Gas       1           1           4           4
Sales and Services
Interstate Pipelines          25          36          64          81
Field Services                64          10          163         35
Other Operations              11          8           28          21
Total                         $ 325      $ 296      $ 839      $ 808
Interest Expense Detail
(Millions of Dollars)
(Unaudited)
                              Three Months Ended      Nine Months Ended
                              September 30,           September 30,
                              2011        2012        2011        2012
Interest Expense Detail
Amortization of Deferred      $  10     $   7    $  23     $  20
Financing Cost
Capitalization of Interest    (2)         (2)         (5)         (6)
Cost
Transition and System
Restoration Bond Interest     31          37          96          112
Expense
Other Interest Expense        106         99          323         304
Total Interest Expense        $ 145      $ 141      $ 437      $ 430
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)
                                                      December     September
                                                      31,          30,
                                                      2011         2012
 ASSETS
Current Assets:
 Cash and cash equivalents                           $       $     
                                                      220           722
 Other current assets                                2,117        2,030
 Total current assets                            2,337        2,752
Property, Plant and Equipment, net                    12,402       13,337
Other Assets:
 Goodwill                                            1,696        1,468
 Regulatory assets                                   4,619        4,319
 Other non-current assets                            649          601
 Total other assets                              6,964        6,388
 Total Assets                                  $         $   
                                                      21,703       22,477
 LIABILITIES AND
SHAREHOLDERS' EQUITY
Current Liabilities:
 Short-term borrowings                               $       $     
                                                       62          53
 Current portion of transition and system            307          451
restoration bonds long-term debt
 Current portion of indexed debt                     131          136
 Current portion of other long-term debt             46           815
 Other current liabilities                           2,047        1,909
 Total current liabilities                       2,593        3,364
Other Liabilities:
 Accumulated deferred income taxes, net             3,832        4,070
 Regulatory liabilities                              1,039        1,095
 Other non-current liabilities                       1,376        1,276
 Total other liabilities                         6,247        6,441
Long-term Debt:
 Transition and system restoration bonds             2,215        3,459
 Other                                               6,426        4,956
 Total long-term debt                            8,641        8,415
Shareholders' Equity                                  4,222        4,257
 Total Liabilities and Shareholders' Equity      $         $   
                                                      21,703       22,477
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)
                                              Nine Months Ended

                                              September 30,
                                              2011                2012
Cash Flows from Operating Activities:
 Net income                                  $1,240              $ 283
 Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization                 699                 823
Deferred income taxes                         404                 237
Extraordinary item, net of tax                (587)               -
Return on true-up balance                     (352)               -
Goodwill impairment                           -                   252
Step acquisition gain                         -                   (136)
Write-down of natural gas inventory           7                   4
Changes in net regulatory assets              22                  71
Changes in other assets and liabilities       1                   (165)
Other, net                                    15                  10
Net Cash Provided by Operating Activities     1,449               1,379
Net Cash Used in Investing Activities         (848)               (1,209)
Net Cash Provided by (Used in) Financing      (697)               332
Activities
Net Increase (Decrease) in Cash and Cash      (96)                502
Equivalents
Cash and Cash Equivalents at Beginning of     199                 220
Period
Cash and Cash Equivalents at End of Period    $  103             $ 722
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Quarterly Report on Form 10-Q of CenterPoint Energy, Inc.

Media:
Leticia Lowe
Phone 713.207.7702
Investors:
Carla Kneipp
Phone 713.207.6500

SOURCE CenterPoint Energy, Inc.

Website: http://www.centerpointenergy.com