Centerpoint Energy, Inc (holding Co) · NYSE:CNP
Centerpoint Energy, Inc (holding Co) — FY2009 Earnings Presentation
15 slides from Centerpoint Energy, Inc (holding Co)'s earnings presentation, Feb 26, 2010
Slide 1: Fourth Quarter and Full Year 2009 Supplemental Materials
NYSE: CNP www.CenterPointEnergy.com Fourth Quarter and Full Year 2009 Supplemental Materials February 26, 2010 RIGHT STRATEGY. RIGHT ASSETS. RIGHT PEOPLE.
Slide 2: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information This presentation contains statements concerning our expectations, beliefs, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are not historical facts. These statements ar
Slide 3: Fourth Quarter 2009 Operating Income Drivers
Fourth Quarter 2009 Operating Income Drivers 3 months ended December 31, 2009 (in millions) Interstate Pipelines $(4) Field Services $(4) Other $(1) Competitive Natural Gas Sales & Service $(5) Rate increases Lower bad debt expense Partially offset by: Higher pension expense Lower miscellaneous reve
Slide 4: Full Year 2009 Operating Income Drivers
Full Year 2009 Operating Income Drivers 12 months ended December 31, 2009 Interstate Pipelines $(37) Field Services $(53) Other $(7) Competitive Natural Gas Sales & Service $(41) Higher pension expense Higher other operating expenses Partially offset by: Rate increases Lower bad debt expense Lower r
Slide 5: Electric Transmission & Distribution 2009 Operating Income Drivers
Electric Transmission & Distribution 2009 Operating Income* Drivers Reduced energy demand (in millions) Higher net transmission revenues Earnings on AMS investment Customer growth Other, primarily higher O&M 2008 Impacts: Gain on land sale $9 Franchise tax refund $5 Net reduction from Hurricane Ike
Slide 6: Natural Gas Distribution
Natural Gas Distribution 2009 Operating Income Drivers Rate increases Lower bad debt expense Higher pension expense Other, primarily higher O&M Higher depreciation and taxes other than income taxes (in millions) 2008 2009
Slide 7: Competitive Natural Gas Sales & Services
Competitive Natural Gas Sales & Services 2009 Operating Income Drivers Mark-to-market: 2009: $23 loss 2008: $13 gain Lower inventory write-downs: 2009: $6 2008: $30 Lower optimization opportunities around pipeline and storage assets (in millions) Other 2008 2009
Slide 8: Interstate Pipelines
(in millions) Interstate Pipelines 2009 Operating Income Drivers * Margin equals revenues minus natural gas expense Increased margin* from firm contracts, primarily: New Carthage to Perryville contracts New power generation customers Higher pension expense Lower revenues from ancillary services and
Slide 9: Field Services
Field Services 2009 Operating Income Drivers (in millions) Growth in core gathering services 2008 impacts: Gain from a contract settlement $11 Sale of assets $6 Other, including higher pension expense of $2 2008 2009
Slide 10: Interstate Pipelines and Field Services Margin
* Margin equals revenues minus natural gas expense ** Excludes $11 related to a 2008 contract settlement (in millions) $501 $190 Interstate Pipelines Field Services $495 $220** 9% 23%
Slide 11: Balance Sheet Improvement: Debt Reduction
Balance Sheet Improvement Debt Reduction (in millions) Cash from operating activities Construction loan repayment from SESH System restoration bond proceeds Equity Capital expenditures Dividends Other Net Debt* * Excludes transition and system restoration bond companies, also see "Net Debt Reconcili
Slide 12: Credit Metrics and Credit Ratings
Credit Metrics Credit Ratings * Calculated per CNP's interpretation of S&P methodology; actual calculations may include other adjustments not anticipated ** Black line indicates S&P's target metrics for CNP (in order for the current ratings to be affirmed during the 12-18 month period following publ
Slide 13: Net Debt Reconciliation
Net Debt Reconciliation e new ons) Year Ended December 31, 2008 2009 Long-term debt: Other $ 7,800 $ 6314 Short-term borrowings. 153 55 Current portion of indexed debt 117 124 Current portion of other long-term debt 8 541 Gross Debt $8078 “$7,031 Less: Available cash Cash and cash equivalents 167 74
Slide 14: 2009 Transition and System Restoration Bond Cash Flows
2009 Transition and System Restoration Bond Cash Flows
Slide 15: Equity Issued in 2009
Equity issued in 2009 e neg (in millions) No.of shares Net proceeds 2008 Shares outstanding 346.1 Continuous equity offering 43 $ 148 Underwritten equity offering 24.2 280 Defined contribution plan 49 57 Dividend reinvestment plan 13 15 Other 0.9 4 2009 Shares outstanding 3017S 504 February 26,2010