(State or other jurisdiction | (Commission File Number) | (IRS Employer | |||
of incorporation) | Identification No.) | ||||
(Address of principal executive offices) | (Zip Code) | ||||
Registrant’s telephone number, including area code: |
Securities registered pursuant to Section 12(b) of the Act: | ||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
EXHIBIT NUMBER | EXHIBIT DESCRIPTION |
99.1 | |
99.2 | |
104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document |
CENTERPOINT ENERGY, INC. | ||
Date: April 9, 2020 | By: | /s/ Jason M. Ryan |
Jason M. Ryan | ||
Senior Vice President and General Counsel |
CenterPoint Energy Historical | Pro Forma Adjustments | CenterPoint Energy Pro Forma | |||||||||||
(In Millions) | |||||||||||||
Current Assets: | |||||||||||||
Cash and cash equivalents | $ | 241 | $ | 883 | a | $ | 1,124 | ||||||
Investment in marketable securities | 822 | — | 822 | ||||||||||
Accounts receivable, net | 1,249 | (192 | ) | b | 1,057 | ||||||||
Accrued unbilled revenues | 586 | (109 | ) | b | 477 | ||||||||
Natural gas and fuel inventory | 277 | — | 277 | ||||||||||
Materials and supplies | 269 | (6 | ) | b | 263 | ||||||||
Non-trading derivative assets | 136 | — | 136 | ||||||||||
Taxes receivable | 106 | — | 106 | ||||||||||
Prepaid expenses and other current assets | 161 | (4 | ) | b | 157 | ||||||||
Total current assets | 3,847 | 572 | 4,419 | ||||||||||
Property, Plant and Equipment, net | 20,945 | (295 | ) | 20,650 | |||||||||
Other Assets: | |||||||||||||
Goodwill | 5,164 | (220 | ) | b | 4,944 | ||||||||
Regulatory assets | 2,117 | — | 2,117 | ||||||||||
Non-trading derivative assets | 58 | — | 58 | ||||||||||
Investment in unconsolidated affiliate | 2,408 | — | 2,408 | ||||||||||
Preferred units – unconsolidated affiliate | 363 | — | 363 | ||||||||||
Intangible assets | 321 | (207 | ) | b | 114 | ||||||||
Other | 216 | (26 | ) | b | 190 | ||||||||
Total other assets | 10,647 | (453 | ) | 10,194 | |||||||||
Total Assets | $ | 35,439 | (176 | ) | 35,263 |
CenterPoint Energy Historical | Pro Forma Adjustments | CenterPoint Energy Pro Forma | |||||||||||
(In Millions) | |||||||||||||
Current Liabilities: | |||||||||||||
Current portion of VIE Securitization Bonds long-term debt | $ | 231 | $ | — | $ | 231 | |||||||
Indexed debt, net | 19 | — | 19 | ||||||||||
Current portion of other long-term debt | 618 | — | 618 | ||||||||||
Indexed debt securities derivative | 893 | — | 893 | ||||||||||
Accounts payable | 1,138 | (45 | ) | b | 1,093 | ||||||||
Taxes accrued | 241 | (2 | ) | b | 397 | ||||||||
158 | c | ||||||||||||
Interest accrued | 158 | — | 158 | ||||||||||
Non-trading derivative liabilities | 125 | — | 125 | ||||||||||
Due to ZENS note holders | 51 | — | 51 | ||||||||||
Other | 414 | (40 | ) | b | 374 | ||||||||
Total current liabilities | 3,888 | 71 | 3,959 | ||||||||||
Other Liabilities: | |||||||||||||
Deferred income taxes, net | 3,928 | (123 | ) | d | 3,805 | ||||||||
Non-trading derivative liabilities | 29 | — | 29 | ||||||||||
Benefit obligations | 754 | — | 754 | ||||||||||
Regulatory liabilities | 3,474 | — | 3,474 | ||||||||||
Other | 763 | (16 | ) | b | 747 | ||||||||
Total other liabilities | 8,948 | (139 | ) | 8,809 | |||||||||
Long-term Debt: | |||||||||||||
VIE Securitization Bonds, net | 746 | — | 746 | ||||||||||
Other long-term debt, net | 13,498 | — | 13,498 | ||||||||||
Total long-term debt, net | 14,244 | — | 14,244 | ||||||||||
Shareholders’ Equity: | |||||||||||||
Cumulative preferred stock | 1,740 | — | 1,740 | ||||||||||
Common stock | 5 | — | 5 | ||||||||||
Additional paid-in-capital | 6,080 | — | 6,080 | ||||||||||
Retained earnings | 632 | (108 | ) | e | 524 | ||||||||
Accumulated other comprehensive loss | (98 | ) | — | (98 | ) | ||||||||
Total shareholders’ equity | 8,359 | (108 | ) | 8,251 | |||||||||
Total Liabilities and Shareholders’ Equity | $ | 35,439 | $ | (176 | ) | $ | 35,263 |
CenterPoint Energy Historical | Pro Forma Adjustments | CenterPoint Energy Pro Forma | |||||||||||
(In Millions, Except Per Common Share Amounts) | |||||||||||||
Revenues: | |||||||||||||
Utility revenues | $ | 7,162 | $ | — | $ | 7,162 | |||||||
Non-utility revenues | 5,139 | (1,190 | ) | f | 3,949 | ||||||||
Total | 12,301 | (1,190 | ) | 11,111 | |||||||||
Expenses: | |||||||||||||
Utility natural gas, fuel and purchased power | 1,683 | — | 1,683 | ||||||||||
Non-utility cost of revenues, including natural gas | 4,029 | (309 | ) | f | 3,720 | ||||||||
Operation and maintenance | 3,550 | (714 | ) | f | 2,836 | ||||||||
Depreciation and amortization | 1,287 | (50 | ) | f | 1,237 | ||||||||
Taxes other than income taxes | 478 | (2 | ) | f | 476 | ||||||||
Goodwill impairment | 48 | — | 48 | ||||||||||
Total | 11,075 | (1,075 | ) | 10,000 | |||||||||
Operating Income | 1,226 | (115 | ) | 1,111 | |||||||||
Other Income (Expense): | |||||||||||||
Gain on marketable securities | 282 | — | 282 | ||||||||||
Loss on indexed debt securities | (292 | ) | — | (292 | ) | ||||||||
Interest and other finance charges | (528 | ) | — | (528 | ) | ||||||||
Interest on Securitization Bonds | (39 | ) | — | (39 | ) | ||||||||
Equity in earnings of unconsolidated affiliates, net | 230 | — | 230 | ||||||||||
Other, net | 50 | (1 | ) | f | 49 | ||||||||
Total | (297 | ) | (1 | ) | (298 | ) | |||||||
Income Before Income Taxes | 929 | (116 | ) | 813 | |||||||||
Income tax expense | 138 | (29 | ) | g | 109 | ||||||||
Net Income | 791 | (87 | ) | 704 | |||||||||
Preferred stock dividend requirement | 117 | — | 117 | ||||||||||
Income available to common shareholders | $ | 674 | $ | (87 | ) | $ | 587 | ||||||
Basic Earnings Per Common Share | $ | 1.34 | $ | 1.17 | |||||||||
Diluted Earnings Per Common Share | $ | 1.33 | $ | 1.16 | |||||||||
Weighted Average Common Shares Outstanding, Basic | 502 | 502 | |||||||||||
Weighted Average Common Shares Outstanding, Diluted | 505 | 505 |
(1) | Basis of presentation |
(2) | Pro Forma Adjustments |
(a) | Reflects estimated cash proceeds from the Disposition of $883 million, representing the gross sales price of $850 million, plus $48 million proceeds from working capital, less estimated transaction costs of $15 million. These transactions costs have not been reflected on the pro forma statements of income as they will not have an ongoing impact on the Company. |
(b) | Reflects the assets and liabilities purchased by the Buyer in the Disposition. |
(c) | Reflects $158 million of current tax expense due to the recognition of tax gain on the Disposition. |
(d) | Reflects deferred tax benefit of $123 million due to the Disposition being treated as an asset sale for tax purposes. |
(e) | Reflects the estimated after-tax loss on the Disposition of $108 million, which was calculated as follows: |
(in millions) | ||||
Estimated proceeds of the Disposition, net of transaction costs (1) | $ | 883 | ||
Assets of the Businesses | (1,059 | ) | ||
Liabilities of the Businesses | 103 | |||
Pre-tax loss of the Disposition | (73 | ) | ||
Current tax expense as a result of tax gain on the Disposition | (158 | ) | ||
Recognition of deferred tax benefit due to the Disposition | 123 | |||
After-tax loss of the Disposition | $ | (108 | ) |
(f) | Reflects the elimination of revenues and expenses representing the historical results of the Businesses as a result of the Disposition. |
(g) | Reflects the income tax expense calculated using the statutory income tax rate of 25% for the Company for the year ended December 31, 2019. The assumed statutory tax rates do not take into account any possible future tax events that may impact the Company. |
Exhibit 99.2 | |
For more information, contact | |
Communications | |
Elizabeth Reese | |
713-301-2110 | |
Elizabeth.Reese@CenterPointEnergy.com | |
Investors Relations | |
David Mordy | |
713-207-6284 | |
David.Mordy@CenterPointEnergy.com |
For Immediate Release |
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