CenterPoint Energy Reports Fourth Quarter And Full Year 2012 Earnings

    CenterPoint Energy Reports Fourth Quarter And Full Year 2012 Earnings

PR Newswire

HOUSTON, Feb. 27, 2013

HOUSTON, Feb. 27, 2013 /PRNewswire/ --CenterPoint Energy, Inc. (NYSE: CNP)
today reported net income of $134 million, or $0.31 per diluted share, for the
fourth quarter of 2012, compared to $117 million, or $0.27 per diluted share
the previous year. Operating income for the fourth quarter of 2012 was $310
million dollars, compared to $274 million dollars for the same period last
year.

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

For the year ended December 31, 2012, net income was $417 million, or $0.97
per diluted share. The results for the year include two unusual items recorded
in the third quarter: (i) a $252 million non-cash goodwill impairment charge
associated with the competitive energy services business, which has no tax
effect, and (ii) a $136 million pre-tax ($88 million after-tax) gain
associated with the acquisition of an additional 50 percent interest in a
gathering and processing joint venture. Excluding the effects of these
unusual items, net income would have been $581 million, or $1.35 per diluted
share, for the year ended December 31, 2012.

For the year ended December 31, 2011, net income was $1.357 billion, or $3.17
per diluted share. Net income for 2011 included $811 million, or $1.89 per
diluted share, which reflects the final resolution of the appeals of the 2004
true-up order of the Texas Public Utility Commission issued in connection with
the restructuring of the Texas electric industry. Excluding this amount, net
income would have been $546 million, or $1.27 per diluted share, for the year
ended December 31, 2011.

Operating income for the year ended December 31, 2012, was $1.038 billion,
compared to $1.298 billion for the same period of 2011. Excluding the goodwill
impairment charge, operating income for the year ended December 31, 2012,
would have been $1.290 billion.

"CenterPoint Energy's 2012 financial results highlight the strength of our
balanced energy delivery business portfolio," said David M. McClanahan,
president and chief executive officer of CenterPoint Energy. "Our regulated
electric and gas utilities continue to benefit from strong service
territories, timely rate recovery mechanisms and effective expense management.
Our midstream and energy services businesses performed well given the current
market environment of low natural gas prices and minimal geographic price
differentials. We continue to look for opportunities to invest in each of our
businesses where we believe we can create value for our shareholders."

Electric Transmission & Distribution

The electric transmission & distribution segment reported operating income of
$99 million for the fourth quarter of 2012, consisting of $64 million from the
regulated electric transmission & distribution utility operations (TDU) and
$35 million related to securitization bonds. Operating income for the fourth
quarter of 2011 was $93 million, consisting of $62 million from the TDU and
$31 million related to securitization bonds.

Fourth quarter operating income for the TDU benefited from continued strong
customer growth and the ongoing recognition of deferred equity returns
associated primarily with the company's true-up proceeds. These increases were
partially offset by higher net transmission costs.

Operating income for the year ended December 31, 2012, was $639 million,
consisting of $492 million from the TDU and $147 million related to
securitization bonds. Operating income for the same period of 2011 was $623
million, consisting of $496 million from the TDU and $127 million related to
securitization bonds.

Operating income from the TDU declined due to a return to more normal summer
weather when compared to the previous year as well as impacts from new rates
implemented in September 2011. These impacts were offset by the addition of
more than 44,000 metered customers, ongoing equity returns associated with
true-up proceeds, higher revenues associated with right-of-way easement
grants, and decreased labor and benefits costs.

Natural Gas Distribution

The natural gas distribution segment reported operating income of $91 million
for the fourth quarter of 2012, compared to $73 million for the same period of
2011. Operating income benefited from a return to more normal winter weather,
rate changes, customer growth, and reduced operation and maintenance expenses,
partially offset by an increase in depreciation. 

Operating income for the year ended December 31, 2012, was $226 million,
unchanged from the previous year, despite substantially reduced revenues from
near record mild temperatures in the first quarter of 2012. Weather hedges and
weather normalization rate structures, reduced operation and maintenance
expenses, lower bad debt expense, the addition of more than 22,000 customers
and the effect of rate changes offset these significant weather impacts.

Interstate Pipelines

The interstate pipelines segment reported operating income of $47 million for
the fourth quarter of 2012, compared to $52 million for the same period of
2011. The decline was primarily due to contract expirations, reductions in
ancillary services driven by lower commodity prices, and reduced off system
transportation revenue due to a lack of geographic price differentials.

In addition to operating income, this segment recorded equity income of $6
million for the fourth quarter of both 2012 and 2011 from its 50 percent
interest in the Southeast Supply Header (SESH).

Operating income for the year ended December 31, 2012, was $207 million,
compared to $248 million for the same period of 2011. Operating income
decreased due to a backhaul contract that expired in 2011, as well as
reductions in compressor efficiency on the Carthage to Perryville pipeline. In
addition, the full year was also impacted by reduced off-system transportation
revenues, lower seasonal and market-sensitive transportation contracts and
ancillary services.

This segment also recorded equity income of $26 million for the year ended
December 31, 2012, from its 50 percent interest in SESH compared to $21
million for the same period of 2011. Higher earnings resulted primarily from
restructuring and extending a long-term agreement with an anchor shipper at
the end of 2011.

Field Services

The field services segment reported operating income of $61 million for the
fourth quarter of 2012, compared to $53 million for the same period of 2011.
Operating income for the fourth quarter of 2012 benefited from the timing of
revenue recognition from contracts with throughput commitments, increased
gathering services and retained gas volumes and additional income from
acquisitions completed during the year. This was partially offset by lower
commodity prices on the sales of retained natural gas and higher depreciation
expense.

Operating income for the year ended December 31, 2012, was $214 million,
compared to $189 million for the same period of 2011. Operating income
improved primarily from increased margins from gathering projects in the
Haynesville shale, growth in gathering services and retained gas volumes, and
the acquisitions completed during the year. These were partially offset by
lower commodity prices on sales of retained natural gas. 

Equity income from Waskom was $5 million for the year ended December 31, 2012,
compared to $9 million for the same period 2011 primarily due to the
classification of earnings as operating income subsequent to the acquisition
of the remaining 50 percent interest in Waskom in July 2012.

Competitive Natural Gas Sales and Services

The competitive natural gas sales and services segment reported operating
income of $12 million for the fourth quarter of 2012, compared to $3 million
for the same period of 2011.The improvement was driven primarily by the
termination of uneconomic transportation contracts and an increase in retail
sales customers and volumes. Fourth quarter operating income for 2012 included
a loss of $1 million resulting from mark-to-market accounting for derivatives
associated with forward natural gas transactions used to lock in economic
margins, compared to gains of $1 million for the same period of 2011.The
fourth quarter of 2011 included a $4 million write-down of natural gas
inventory to the lower of average cost or market.

Operating income for the year ended December 31, 2012, was a loss of $250
million, compared to $6 million for the same period of 2011. Excluding a third
quarter goodwill impairment charge, operating income for the year ended
December 31, 2012, would have been $2 million. Operating income for the year
ended December 31, 2012, included mark-to-market accounting charges of $16
million, compared to a gain of $8 million for the same period of 2011.

Dividend Declaration

On January 25, 2013, CenterPoint Energy's board of directors declared a
regular quarterly cash dividend of $0.2075 per share of common stock payable
on March 8, 2013, to shareholders of record as of the close of business on
February 15, 2013.

Outlook for 2013

CenterPoint Energy expects earnings on a guidance basis for 2013 to be in the
range of $1.22 to $1.30 per diluted share. Earnings guidance is being provided
in the form of a range to reflect economic and operational variables
associated with the company's various business segments. Significant variables
include the impact to earnings of commodity prices, volume throughput,
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, any impact from significant acquisitions or
divestitures, any impact to earnings from the change in the value of Time
Warner stocks and the related ZENS securities, or the timing effects of
mark-to-market and inventory accounting in the company's competitive natural
gas sales and services business.

Filing of Form 10-K for CenterPoint Energy, Inc.

Today, CenterPoint Energy, Inc. filed with the Securities and Exchange
Commission (SEC) its Annual Report on Form 10-K for the period ended December
31, 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, February 27, 2013, 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 Net Income and diluted EPS to the basis used in providing
2012 annual earnings guidance
                           Quarter Ended           Year Ended
                           December 31, 2012       December 31, 2012
                           Net Income(in  EPS      Net Income (in  EPS
                           millions)                millions)
As reported                $    134      $     $    417     $    
                                            0.31                    0.97
 Step Acquisition Gain,   -                0.00     (88)            (0.21)
after-tax^(1)
 Goodwill Impairment      -                0.00     252             0.59
Charge^(2)
Excluding Unusual          $    134      $     $    581     $    
Items^(1),(2)                               0.31                    1.35
Timing effects impacting
CES ^(3):
 Mark-to-market losses -
natural gas derivative     1                0.00     10              0.02
contracts
ZENS-related
mark-to-market (gains)
losses:
 Marketable               (12)             (0.02)   (100)           (0.23)
securities^(4)
 Indexed debt securities  (4)              (0.01)   46              0.11
Per the basis used in                       $                     $    
providing 2012 annual      $    119      0.28    $    537     1.25
earnings guidance

        After-tax step acquisition gain associated with the acquisition of an
^(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 8,700 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 2013 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,
including the impact on operations and capital from severe weather events;
(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.), a wholly owned
subsidiary of NRG 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, 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; (26) acquisition and merger activities
involving CenterPoint Energy or its competitors; (27) future economic
conditions in regional and national markets and their effects on sales, prices
and costs; and (28) other factors discussed in CenterPoint Energy's Annual
Report on Form 10-K for the fiscal year ended December 31, 2012, and other
reports CenterPoint Energy or its subsidiaries may file from time to time with
the Securities and Exchange Commission.

For more information contact
Media:
Leticia Lowe
Phone 713.207.7702
Investors:
Carla Kneipp
Phone 713.207.6500





CenterPoint Energy, Inc. and Subsidiaries
Statements of Consolidated Income
(Millions of Dollars)
(Unaudited)
                                 Three Months Ended      Year Ended
                                 December 31,            December 31,
                                 2011         2012       2011        2012
Revenues:
Electric Transmission &          $  535      $  585    $ 2,337    $ 2,540
Distribution
Natural Gas Distribution         793          767        2,841       2,342
Competitive Natural Gas Sales    635          562        2,511       1,784
and Services
Interstate Pipelines            129          128        553         502
Field Services                   107          156        412         506
Other Operations                 2            2          11          11
Eliminations                     (56)         (62)       (215)       (233)
Total                            2,145        2,138      8,450       7,452
Expenses:
Natural gas                      1,066        975        4,055       2,873
Operation and maintenance        502          510        1,835       1,874
Depreciation and amortization    209          250        886         1,050
Taxes other than income taxes    94           93         376         365
Goodwill impairment              -            -          -           252
Total                            1,871        1,828      7,152       6,414
Operating Income                 274          310        1,298       1,038
Other Income (Expense):
Gain on marketable securities    49           18         19          154
Gain (loss) on indexed debt      (30)         5          35          (71)
securities
Interest and other finance       (115)        (104)      (456)       (422)
charges
Interest on transition and       (31)         (35)       (127)       (147)
system restoration bonds
Equity in earnings of            8            6          30          31
unconsolidated affiliates
Return on true-up balance        -            -          352         -
Step acquisition gain           -            -          -           136
Other - net                      4            10         23          38
Total                            (115)        (100)      (124)       (281)
Income Before Income Taxes and   159          210        1,174       757
Extraordinary Item
Income Tax Expense               42           76         404         340
Income Before Extraordinary      117          134        770         417
Item
Extraordinary Item, net of tax   -            -          587         -
Net Income                       $  117      $  134    $ 1,357    $   417
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.







CenterPoint Energy, Inc. and Subsidiaries
Selected Data From Statements of Consolidated Income
(Millions of Dollars, Except Share and Per Share Amounts)
(Unaudited)
                               Three Months Ended       Year Ended
                               December 31,             December 31,
                               2011          2012       2011        2012
Basic Earnings Per Common
Share:
 Income Before                $   0.27   $        $         $  
Extraordinary Item                           0.31      1.81       0.98
 Extraordinary item, net of   -             -          1.38        -
tax
 Net Income                   $   0.27   $        $         $  
                                             0.31      3.19       0.98
Diluted Earnings Per Common
Share:
 Income Before                $   0.27   $        $         $  
Extraordinary Item                           0.31      1.80       0.97
 Extraordinary item, net of   -             -          1.37        -
tax
 Net Income                   $   0.27   $        $         $  
                                             0.31      3.17       0.97
Dividends Declared per         $ 0.1975     $ 0.2025  $ 0.7900   $ 0.8100
Common Share
 Weighted Average Common
Shares Outstanding (000):
- Basic                        425,989       427,495    425,636     427,189
- Diluted                      429,096       430,102    428,724     429,794
Operating Income (Loss) by
Segment
Electric Transmission &
Distribution:
Electric Transmission and      $     62  $      $        $   
Distribution Operations                      64         496         492
Transition and System          31            35         127         147
Restoration Bond Companies
Total Electric Transmission    93            99         623         639
& Distribution
Natural Gas Distribution       73            91         226         226
Competitive Natural Gas        3             12         6           (250)
Sales and Services
Interstate Pipelines           52            47         248         207
Field Services                 53            61         189         214
Other Operations               -             -          6           2
Total                          $    274   $       $  1,298  $  1,038
                                             310
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.







CenterPoint Energy, Inc. and Subsidiaries
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
              Electric Transmission & Distribution
              Three Months Ended                   Year Ended
              December 31,            % Diff       December 31,            % Diff
              2011        2012        Fav/(Unfav)  2011        2012        Fav/(Unfav)
Results of
Operations:
Revenues:
Electric
transmission  $       $                    $       $    
and            439       457      4%           1,893       1,949       3%
distribution
utility
Transition
and system
restoration   96          128         33%          444         591         33%
bond
companies
Total         535         585         9%           2,337       2,540       9%
Expenses:
Operation
and           253         262         (4%)         908         942         (4%)
maintenance
Depreciation
and           72          77          (7%)         279         301         (8%)
amortization
Taxes other
than income   52          54          (4%)         210         214         (2%)
taxes
Transition
and system
restoration   65          93          (43%)        317         444         (40%)
bond
companies
Total         442         486         (10%)        1,714       1,901       (11%)
Operating     $       $       6%           $       $       3%
Income          93       99                   623       639
Operating
Income:
Electric
transmission  $       $                    $       $    
and             62       64     3%            496       492      (1%)
distribution
operations
Transition
and system
restoration   31          35          13%          127         147         16%
bond
companies
Total
Segment       $       $       6%           $       $       3%
Operating       93       99                   623       639
Income
Electric
Transmission
&
Distribution
Operating
Data:
Actual MWH
Delivered
Residential   5,173,066   5,348,146   3%           28,510,924  27,314,778  (4%)
Total         17,210,481  17,308,948  1%           80,012,853  78,593,395  (2%)
Weather
(average for
service
area):
Percentage
of 10-year
average:
Cooling       104%        110%        6%           121%        111%        (10%)
degree days
Heating       96%         83%         (13%)        102%        65%         (37%)
degree days
Number of
metered
customers -
end of
period:
Residential   1,904,818   1,943,423   2%           1,904,818   1,943,423   2%
Total         2,155,710   2,199,764   2%           2,155,710   2,199,764   2%
              Natural Gas Distribution
              Three Months Ended                   Year Ended
              December 31,            % Diff       December 31,            % Diff
              2011        2012        Fav/(Unfav)  2011        2012        Fav/(Unfav)
Results of
Operations:
Revenues      $       $       (3%)         $       $       (18%)
               793       767                   2,841       2,342
Expenses:
Natural gas   472         433         8%           1,675       1,196       29%
Operation
and           174         167         4%           655         637         3%
maintenance
Depreciation
and           42          44          (5%)         166         173         (4%)
amortization
Taxes other
than income   32          32          -            119         110         8%
taxes
Total         720         676         6%           2,615       2,116       19%
Operating     $       $       25%          $       $       -
Income         73       91                   226       226
Natural Gas
Distribution
Operating
Data:
Throughput
data in BCF
Residential   50          50          -            172         140         (19%)
Commercial
and           64          68          6%           251         243         (3%)
Industrial
Total         114         118         4%           423         383         (9%)
Throughput
Weather
(average for
service
area)
Percentage
of 10-year
average:
Heating       88%         95%         7%           100%        79%         (21%)
degree days
Number of
customers -
end of
period:
Residential   3,036,267   3,058,695   1%           3,036,267   3,058,695   1%
Commercial
and           246,220     246,413     -            246,220     246,413     -
Industrial
Total         3,282,487   3,305,108   1%           3,282,487   3,305,108   1%
Reference is made to the Notes to the Consolidated Financial Statements contained in
the Annual Report on Form 10-K of CenterPoint Energy, Inc.







CenterPoint Energy, Inc. and Subsidiaries
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
                    Competitive Natural Gas Sales and Services
                    Three Months                   Year Ended
                    Ended
                    December 31,      % Diff       December 31,    % Diff
                    2011     2012     Fav/(Unfav)  2011    2012    Fav/(Unfav)
Results of
Operations:
Revenues            $      $      (11%)        $       $       (29%)
                    635      562                   2,511  1,784
Expenses:
Natural gas         620      537      13%          2,458   1,730   30%
Operation and       10       11       (10%)        41      45      (10%)
maintenance
Depreciation and    2        2        -            5       6       (20%)
amortization
Taxes other than    -        -        -            1       1       -
income taxes
Goodwill            -        -        -            -       252     -
impairment
Total               632      550      13%          2,505   2,034   19%
Operating Income    3        12       300%         6       (250)   (4,267%)
(Loss)
Goodwill            -        -        -            -       252     -
impairment
Operating Income,   $     $                  $     $  
excluding goodwill   3      12       300%           6     2   (67%)
impairment
Competitive
Natural Gas Sales
and Services
Operating Data:
Throughput data in  151      145      (4%)         558     562     1%
BCF
Number of
customers - end of  14,267   16,330   14%          14,267  16,330  14%
period
                    Interstate Pipelines
                    Three Months                   Year Ended
                    Ended
                    December 31,      % Diff       December 31,    % Diff
                    2011     2012     Fav/(Unfav)  2011    2012    Fav/(Unfav)
Results of
Operations:
Revenues            $      $      (1%)         $     $     (9%)
                    129      128                   553     502
Expenses:
Natural gas         13       21       (62%)        67      57      15%
Operation and       43       42       2%           152     153     (1%)
maintenance
Depreciation and    14       13       7%           54      56      (4%)
amortization
Taxes other than    7        5        29%          32      29      9%
income taxes
Total               77       81       (5%)         305     295     3%
Operating Income    $     $     (10%)        $     $     (17%)
                    52       47                    248     207
Equity in earnings  $     $                  $     $  
of unconsolidated    6       6      -             21     26    24%
affiliates
Pipelines
Operating Data:
Throughput data in
BCF
Transportation      371      337      (9%)         1,579   1,367   (13%)
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.







CenterPoint Energy, Inc. and Subsidiaries
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
                        Field Services
                        Three Months                 Year Ended
                        Ended
                        December 31,    % Diff       December 31,  % Diff
                        2011    2012    Fav/(Unfav)  2011   2012   Fav/(Unfav)
Results of Operations:
Revenues                $ 107  $ 156  46%          $    $    23%
                                                     412    506
Expenses:
Natural gas             16      47      (194%)       68     122    (79%)
Operation and           29      33      (14%)        112    115    (3%)
maintenance
Depreciation and        9       15      (67%)        37     50     (35%)
amortization
Taxes other than        -       -       -            6      5      17%
income taxes
Total                   54      95      (76%)        223    292    (31%)
Operating Income        $      $      15%          $    $    13%
                        53     61                  189    214
Equity in earnings of   $     $                  $    $  
unconsolidated          2      -       0%             9    5  (44%)
affiliates
Field Services
Operating Data:
Throughput data in BCF
Gathering               237     205     (14%)        823    896    9%
                        Other Operations
                        Three Months                 Year Ended
                        Ended
                        December 31,    % Diff       December 31,  % Diff
                        2011    2012    Fav/(Unfav)  2011   2012   Fav/(Unfav)
Results of Operations:
Revenues                $     $     -            $    $    -
                        2      2                    11    11
Expenses (Income)       2       2       -            5      9      (80%)
Operating Income       $     $     -            $    $    (67%)
                        -       -                     6    2



Capital Expenditures by Segment
(Millions of Dollars)
(Unaudited)
                                    Three Months Ended  Year Ended
                                    December 31,        December 31,
                                    2011       2012     2011       2012
Capital Expenditures by Segment
Electric Transmission &             $ 173     $ 182   $   538  $   599
Distribution
Natural Gas Distribution            80         109      295        359
Competitive Natural Gas Sales and   1          2        5          6
Services
Interstate Pipelines                34         51       98         132
Field Services                      38         17       201        52
Other Operations                    26         19       54         40
Total                               $ 352     $ 380   $ 1,191   $ 1,188



Interest Expense Detail
(Millions of Dollars)
(Unaudited)
                                Three Months Ended      Year Ended
                                December 31,            December 31,
                                2011         2012       2011       2012
Interest Expense Detail
Amortization of Deferred        $   4     $   7   $       $   
Financing Cost                                          27         27
Capitalization of Interest      1            (3)        (4)        (9)
Cost
Transition and System
Restoration Bond Interest       31           35         127        147
Expense
Other Interest Expense          110          100        433        404
Total Interest Expense          $ 146       $ 139     $        $  
                                                        583        569
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.





CenterPoint Energy, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Millions of Dollars)
(Unaudited)
                                                      December     December
                                                      31,          31,
                                                      2011         2012
 ASSETS
Current Assets:
 Cash and cash equivalents                           $       $     
                                                      220          646
 Other current assets                                2,117        2,228
 Total current assets                            2,337        2,874
Property, Plant and Equipment, net                    12,402       13,597
Other Assets:
 Goodwill                                            1,696        1,468
 Regulatory assets                                   4,619        4,324
 Other non-current assets                            649          608
 Total other assets                              6,964        6,400
 Total Assets                                  $         $   
                                                      21,703       22,871
 LIABILITIES AND
SHAREHOLDERS' EQUITY
Current Liabilities:
 Short-term borrowings                               $       $     
                                                       62          38
 Current portion of transition and system            307          447
restoration bonds long-term debt
 Current portion of indexed debt                     131          138
 Current portion of other long-term debt             46           815
 Other current liabilities                           2,047        2,137
 Total current liabilities                       2,593        3,575
Other Liabilities:
 Accumulated deferred income taxes, net             3,832        4,153
 Regulatory liabilities                              1,039        1,093
 Other non-current liabilities                       1,376        1,392
 Total other liabilities                         6,247        6,638
Long-term Debt:
 Transition and system restoration bonds             2,215        3,400
 Other                                               6,426        4,957
 Total long-term debt                            8,641        8,357
Shareholders' Equity                                  4,222        4,301
 Total Liabilities and Shareholders' Equity      $         $   
                                                      21,703       22,871
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.







CenterPoint Energy, Inc. and Subsidiaries
Condensed Statements of Consolidated Cash Flows
(Millions of Dollars)
(Unaudited)
                                              Year Ended December 31,
                                              2011                2012
Cash Flows from Operating Activities:
 Net income                                  $1,357              $ 417
 Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization                 916                 1,082
Deferred income taxes                         443                 328
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           11                  4
Changes in net regulatory assets              31                  66
Changes in other assets and liabilities       45                  (170)
Other, net                                    24                  17
Net Cash Provided by Operating Activities     1,888               1,860
Net Cash Used in Investing Activities         (1,206)             (1,603)
Net Cash Provided by (Used in) Financing      (661)               169
Activities
Net Increase in Cash and Cash Equivalents     21                  426
Cash and Cash Equivalents at Beginning of     199                 220
Period
Cash and Cash Equivalents at End of Period    $  220             $ 646
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report on Form 10-K of CenterPoint Energy, Inc.



SOURCE CenterPoint Energy, Inc.

Website: http://www.centerpointenergy.com