Centerpoint Energy, Inc (holding Co) · NYSE:CNP
Centerpoint Energy, Inc (holding Co) — AGA Financial Forum 2006
33 slides from Centerpoint Energy, Inc (holding Co)'s conference presentation, May 8, 2006
Slide 1: AGA Financial Forum
AGA Financial Forum NYSE:CNP www.CenterPointEnergy.com Scottsdale, Arizona May 8, 2006
Slide 2: 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 are "forward-looking statements" within the meaning of the Pr
Slide 3: To Be Recognized As 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 Continental U.S. market Regulated energy delivery Will pursue carefully targeted growth opportunities Complementary businesses that leverage our core businesses/business skills Val
Slide 4: Successfully executed transition... positioned for growth
Successfully executed transition... positioned for growth 2005 2004 2003 2002 2006 and beyond One Company Get It Right Grow Implemented $620 million CTC Sold $1.85 billion Transition Bonds NYSE : CNP First day of trading Sold Texas Genco fossil assets $2.231 billion Completed sale of Texas Genco $70
Slide 5: Natural Gas Distribution and Electric Transmission & Distribution
Natural Gas Distribution Electric Transmission & Distribution Regulated local gas distribution companies in AR, LA, MN, MS, OK, TX Over 3 million customers Solid growth in key urban areas 375 Bcf throughput in 2005 (1) Results exclude $39mm of operating income from the Transition Bond Company; See r
Slide 6: CenterPoint Energy Houston Electric
CenterPoint Energy Houston Electric Electric Transmission & Distribution Resolve current regulatory issues PUCT rate review PUCT rulemaking on Competitive Transition Charge (CTC) rate of return 2001 Utility Cost of Service (UCOS) remand Resolve appeal of final true up order Grow rate base Robust org
Slide 7: New drilling activity increases demand for pipeline infrastructure
New drilling activity driven by high commodity prices increases demand for pipeline infrastructure Increased emphasis on new shale plays and on Northeast Texas, Arkoma, Anadarko and Arklatex gas supply basins creates opportunity Natural gas environment creates growth opportunities for pipelines and
Slide 8: CenterPoint Energy Resources Corp. Interstate Pipelines
CenterPoint Energy Resources Corp. Interstate Pipelines Secure core customer base through effective and timely recontracting Seven year agreements with affiliated LDCs Provide industry leading customer service Invest in pipeline expansions and greenfield development projects to provide access to mar
Slide 9: CenterPoint Energy Resources Corp. Field Services
CenterPoint Energy Resources Corp. Field Services Capitalize on increased drilling activity driven by high gas prices Installed nearly 400 well connects in both 2004 and 2005 Increased throughput to nearly 1 Bcf per day in 2005 Capitalize on growing industry expectations for superior service and pro
Slide 10: CenterPoint Energy Resources Corp. Natural Gas Distribution
CenterPoint Energy Resources Corp. Natural Gas Distribution Earn authorized ROE in all jurisdictions Resolve current rate proceeding in Minnesota File Arkansas rate case Pursue rate designs to mitigate impact of weather and that are aligned with conservation efforts Improve and standardize operating
Slide 11: Competitive Natural Gas Sales and Services
Volatile natural gas prices and widening of basis differentials continue to provide opportunities Optimize value of storage and transportation capacity Expand wholesale customer base in current footprint and into new areas Capture commercial and industrial growth through value added services Nearly
Slide 12: First Quarter 2006 Results
e CenterPoint. Energy First Quarter 2006 Results
Slide 13: First quarter results Consolidated Statement of Income
First quarter results Consolidated Statement of Income (unaudited, in millions except per share amounts)
Slide 14: Operating Income (Loss) by Segment
(unaudited, in millions) First quarter results Operating Income (Loss) by Segment
Slide 15: Operating Income by business
Operating Income by business (in millions) * Operating income is adjusted to exclude ECOM, the Transition Bond Company and the Final Fuel Reconciliation components of the Electric Transmission & Distribution utility's results (see reconciliation on page 25). Operating income does not include an extr
Slide 16: CenterPoint Energy Positioned for the future
CenterPoint Energy Positioned for the future Maximize value potential of regulated utilities portfolio Earn authorized ROEs in all jurisdictions Continue to invest to meet robust customer growth and infrastructure improvements, i.e., rate base growth Optimize operating model through technology and p
Slide 17: CenterPoint Energy Diversified portfolio
CenterPoint Energy Diversified portfolio Large scale, domestic energy delivery business Geographic, economic and regulatory diversity Attractive service territories and strategically located assets 85%-90% of operating income from regulated operations Predictable, stable earnings and cash flow Attra
Slide 18: Appendix
@ LenterPoint. Energy Appendix
Slide 19: Successfully executed transition - first day of trading
Successfully executed transition NYSE:CNP- first day of trading Texas PUC Authorized $2.3+ billion true-up amount Completed sale of Texas Genco $700 million 2006 Sold Texas Genco fossil assets $2.231 billion 2003 2002 Repaid $1.31 billion Term loan Sold $1.85 billion Transition Bonds Repaid $1.31 bi
Slide 20: 2005 Financial Results
e CenterPoint. Energy 2005 Financial Results
Slide 21: Consolidated Operating Income (Adjusted)
2003 2004 2005 743 810 900 (in millions) Consolidated Operating Income (Adjusted)* * Adjusted operating income excludes ECOM, the Transition Bond Company and the Final Fuel Reconciliation components of the Electric Transmission & Distribution utility's results (see reconciliation on page 24).
Slide 22: Statement of Consolidated Income
Statement of Consolidated Income (unaudited, in millions except per share amounts)
Slide 23: Operating Income (Loss) by Segment
Operating Income (Loss) by Segment (unaudited, in millions)
Slide 24: Reconciliation of Operating Income to Adjusted Operating Income
Reconciliation of Operating Income to Adjusted Operating Income (in millions) Consolidated
Slide 25: Electric Transmission & Distribution Reconciliation
(in millions) Electric Transmission & Distribution Reconciliation of Operating Income to Adjusted Operating Income
Slide 26: Debt & Maturity Schedules
Debt & Maturity Schedules As of March 31, 2006
Slide 27: Debt schedule footnotes and CenterPoint Energy debt
(5) Advances under the $250 million receivables facility, which was increased to $375 million on January 18, 2006, are not reflected as debt on the balance sheet. (6) The pollution control bonds are collateralized by general mortgage bonds. (7) Borrowings under $300 million bank facility. (8) For fi
Slide 28: CenterPoint Energy, Inc. Principal amounts of external debt
CenterPoint Energy, Inc Principal amounts of external debt and trust preferred securities As of March 31, 2006
Slide 29: CenterPoint Energy Houston Electric, LLC external debt
Principal amounts of external debt As of March 31, 2006 CenterPoint Energy Houston Electric, LLC
Slide 30: CenterPoint Energy Resources Corp. external debt
Principal amounts of external debt As of March 31, 2006 CenterPoint Energy Resources Corp.
Slide 31: Transition Bond Company, LLC external debt
Principal amounts of external debt As of March 31, 2006 CenterPoint Energy Transition Bond Company, LLC
Slide 32: Transition Bond Company II, LLC external debt
Principal amounts of external debt As of March 31, 2006 CenterPoint Energy Transition Bond Company II, LLC
Slide 33: Principal amounts of maturing external debt
($ in millions) Principal amounts of maturing external debt and trust preferred securities As of March 31, 2006