Centerpoint Energy, Inc (holding Co) · NYSE:CNP
Centerpoint Energy, Inc (holding Co) — Banc of America Securities 2004 Energy & Power Conference
34 slides from Centerpoint Energy, Inc (holding Co)'s conference presentation, Nov 15, 2004
Slide 1: Banc of America Securities 2004 Energy & Power Conference
Banc of America Securities 2004 Energy & Power Conference Las Vegas, NV November 15, 2004
Slide 2: Cautionary Statement Regarding Forward-Looking Information
From time to time we make 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 are "forward-looking statements" within the meaning of the Pri
Slide 3: Discussion Points
Discussion Points Company Overview A Company in Transition Timeline Monetization of Texas Genco Recovery of true-up balance Accounting and financial implications Next steps Post Transition Strategy: What's Next
Slide 4: Company Overview
S CenterPoint. Energy —_—a— Company Overview November 15,2008 Seno:nt Ancien did Bhmcoy d Power bolererce: 4
Slide 5: CenterPoint Energy business segments and operating income
Natural Gas Distribution Pipelines & Gathering Electric Generation (81%) CenterPoint Energy Resources Corp. 3 local distribution companies CenterPoint Energy Gas Services (CEGS) CenterPoint Energy Houston Electric, LLC Texas Genco Holdings, Inc. (NYSE:TGN) Sale Pending Electric Transmission & Distri
Slide 6: A low risk, diversified business with large scale
CenterPoint Energy A low risk, diversified business with large scale Large-scale, diversified regulated domestic energy delivery business One of the nation's largest combined gas and electric utilities Balanced mix of electric and natural gas assets Predictable, stable earnings and cash flow Attract
Slide 7: A Company in Transition
CenterPoint Energy A Company in Transition
Slide 8: We are in the final stage of transition
We are in the final stage of transition Reliant Energy 2005 2004 Texas Adopts Restructuring Legislation Recovery of true-up balance RRI Spin-off 09/30/02 2002 2001 2000 1999 19% Public Distribution of Texas Genco (NYSE: TGN) Electric retail competition begins RRI IPO Monetization of Texas Genco 2003
Slide 9: Monetization of Texas Genco
Definitive sale agreement with GC Power Acquisition LLC (consortium of private equity firms) signed July 2004 $3.65 billion transaction to close in two steps Step 1: 4Q 2004 Buy-in Minority Shareholders - $716 million Close sale of fossil assets - $2.231 billion Step 2: 1H 2005 Close sale of nuclear
Slide 10: Recovery of true-up balance: requested vs. PUC order
Recovery of true-up balance Requested vs. PUC order ($ in millions)
Slide 11: Accounting and financial implications
Accounting and financial implications Moved Texas Genco to discontinued operations in 3Q04 Recorded $259 million net loss from discontinued operations in 3Q04 Recorded $894 million extraordinary charge in 3Q04 related to PUC true-up decision Accrue interest on approved true-up balance from date of P
Slide 12: Next Steps
Results of appeal Next Steps 2006 2007 2005 Texas Genco Step 1 closing ($2.2 billion) Texas Genco Step 2 closing ($700 million) Order on Rehearing/ Appeal aspects of PUC ruling to State Courts Securitization Bonds (~ $2.0+ billion) Additional Securitization Bonds based on appeal results $ TBD PUC Fi
Slide 13: Post Transition Strategy: What's Next
Post Transition Strategy- What's Next
Slide 14: What's next
What's next We are disappointed with the true-up recovery but remain committed to our Vision, Strategy and Objectives PUC decision will not change our company direction Significant total monetization proceeds allow us to continue implementation of our business strategies We will continue to focus on
Slide 15: Financial objectives
Financial objectives Maximize returns of regulated businesses Ensure gas LDCs are earning allowed rates of return Capture organic growth in existing service territories Implement productivity improvements company-wide; achieve first quartile performance Build and expand complementary and synergistic
Slide 16: Appendix
S CenterPoint. Energy —_—a— Appendix November 15,2008 Seno:nt Ancien did Bhmcoy d Power bolererce: 418
Slide 17: Company Management
S CenterPoint. Energy —_—a— Company Management November 15,2008 Seno:nt Ancien did Bhmcoy d Power bolererce: 7
Slide 18: Company management
Steve Schaeffer (34/34) EVP & Group President Gas Distribution & Sales Scott Rozzell (3/29) EVP, General Counsel & Corporate Secretary Gary Whitlock (3/32) Executive VP & CFO David McClanahan (32/32) President & CEO Marc Kilbride (26/26) VP & Treasurer Marianne Paulsen (3/27) Director Investor Relat
Slide 19: Business Segments
S CenterPoint. Energy —_—a— Business Segments November 15,2008 Seno:nt Ancien did Bhmcoy d Power bolererce: 49
Slide 20: CenterPoint Energy Houston Electric
CenterPoint Energy Houston Electric Electric Transmission & Distribution Utility Focused strictly on energy delivery 5,000 square mile service area in and around Houston Approximately 1.84 million metered customers added nearly 47,000 metered customers in 2003, a 3% increase Reputation for reliabili
Slide 21: CenterPoint Energy Resources Corp. Natural Gas Distribution
CenterPoint Energy Resources Corp. Natural Gas Distribution CenterPoint Energy Arkla CenterPoint Energy Minnegasco CenterPoint Energy Entex Three LDCs serving 3 million customers in 6 states One of U.S.'s largest natural gas distribution operations in terms of number of customers served Attractive s
Slide 22: Natural Gas Pipelines and Gathering
CenterPoint Energy Resources Corp. Natural Gas Pipelines and Gathering Two FERC-regulated pipelines: Current system at or near capacity at peak Potential growth in cross haul transportation services Potential expansion opportunity driven by U.S. supply shifts An unregulated gas gathering subsidiary
Slide 23: Vision and Strategy
S CenterPoint. Energy —_—a— Vision and Strategy November 15,2008 Seno:nt Ancien did Bhmcoy d Power bolererce: 23
Slide 24: Our Vision: America's Leading Energy Delivery Company...and More
To Be Recognized As America's Leading Energy Delivery Company...and More Focused on domestic energy delivery businesses Focus on continental, U.S. market Focus on regulated energy delivery Will pursue carefully targeted growth opportunities Look for complementary businesses that leverage our core bu
Slide 25: One Company, Get It Right and Grow
Leverage scale and synergies Refine business model and remove barriers between business units Implement common processes Create a single, high performance culture Recognize our 130-year history Grow Get It Right Use best practices to achieve top quartile efficiency and operating performance Implemen
Slide 26: Financial Performance
S CenterPoint. Energy —_—a— Financial Performance November 15,2008 Seno:nt Ancien did Bhmcoy d Power bolererce: 28
Slide 27: Financial Results Nine Months Ended September 30, 2004
TDU LDCs Pipelines Other TGN 390 137 123 -17 0 Natural Gas Distribution Pipelines & Gathering ($ in millions, except per share amounts) Electric Transmission & Distribution* Other Total Operating Income: $633 Financial Results Nine Months Ended September 30, 2004 * Results include $29mm operating in
Slide 28: Debt & Maturity Schedules
Debt & Maturity Schedules As of September 30, 2004
Slide 29: Debt schedule footnotes and capital structure
(5) Borrowings under $250 million bank facility. (6) Advances under the $250 million receivables facility are not reflected as debt on the balance sheet. (7) The term loan and pollution control bonds are collateralized by general mortgage bonds. (8) For financial reporting purposes, the trust prefer
Slide 30: Principal amounts of external debt and trust preferred securities
Principal amounts of external debt and trust preferred securities As of September 30, 2004
Slide 31: Principal amounts of external debt and trust preferred securities
Principal amounts of external debt and trust preferred securities As of September 30, 2004
Slide 32: Principal amounts of external debt and trust preferred securities
Principal amounts of external debt and trust preferred securities As of September 30, 2004
Slide 33: Principal amounts of external debt and trust preferred securities
Principal amounts of external debt and trust preferred securities As of September 30, 2004
Slide 34: Principal amounts of external debt and trust preferred securities
Principal amounts of external debt and trust preferred securities As of September 30, 2004
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