CenterPoint Energy Reports First Quarter 2008 Earnings


HOUSTON, April 30, 2008 (PRIME NEWSWIRE) -- CenterPoint Energy, Inc. (NYSE:CNP) today reported net income of $123 million, or $0.36 per diluted share, for the first quarter of 2008 compared to $130 million, or $0.38 per diluted share, for the same period of 2007.

"While higher natural gas prices had a negative impact on our regulated utilities and on the reported earnings of our competitive natural gas sales and services business, our overall financial results demonstrated the benefit of our balanced portfolio," said David M. McClanahan, president and chief executive officer of CenterPoint Energy. "The investments we have made over the last several years in our interstate pipelines and field services businesses continue to make significant contributions to our profitability, and in contrast to economic slowdowns in some areas of the country, we continue to experience solid customer growth in our regulated electric and natural gas utilities."

OPERATING INCOME BY SEGMENT

Electric Transmission & Distribution

The electric transmission & distribution segment reported operating income of $91 million in the first quarter of 2008, consisting of $54 million from the regulated electric transmission & distribution utility operations (TDU), $5 million from the competition transition charge (CTC), and $32 million related to transition bonds. Operating income for the first quarter of 2007 was $104 million, consisting of $62 million from the TDU, $11 million from the CTC, and $31 million related to transition bonds.

Operating income for the TDU for the first quarter of 2008 declined due to reduced usage, resulting in part from milder winter weather, and an increase in transmission costs and other operating expenses. This was partially offset by continued strong customer growth of over 52,000 metered customers since March 2007 and by higher revenues from ancillary services.

Natural Gas Distribution

The natural gas distribution segment reported operating income of $121 million for the first quarter of 2008 compared to $129 million for the same period of 2007. The decrease was attributable to the impact of customer conservation and higher operating expenses primarily related to customer service and bad debts. The decrease was partially offset by continued customer growth of nearly 36,000 metered customers since March 2007 and the benefit of new rates implemented in late 2007.

Interstate Pipelines

The interstate pipelines segment reported operating income of $71 million for the first quarter of 2008 compared to $44 million for the same period of 2007. The increase was driven primarily by the new Carthage to Perryville pipeline, which went into commercial service in May 2007, and increased ancillary services.

Field Services

The field services segment reported operating income of $45 million for the first quarter of 2008 compared to $22 million for the same period of 2007. Operating income increased from higher throughput, increased ancillary services, and $17 million associated with the sale of non-strategic assets and the settlement of a contractual dispute.

In addition to operating income, this business had equity income of $4 million in the first quarter of 2008 compared to $2 million in the first quarter of 2007 from its 50 percent interest in a jointly-owned gas processing plant. These amounts are included in Other - net under the Other Income (Expense) caption.

Competitive Natural Gas Sales and Services

The competitive natural gas sales and services segment reported operating income of $6 million for the first quarter of 2008 compared to $56 million for the same period of 2007. The decline was partially due to reduced locational and seasonal price differentials. In addition, the first quarter of 2008 included charges of $22 million resulting from mark-to-market accounting for derivatives used to lock in economic margins of certain forward natural gas sales compared to charges of $8 million for the same period of 2007. The first quarter of 2008 also included $4 million in gains on sales of gas from inventory compared to $28 million for the first quarter of 2007.

DIVIDEND DECLARATION

On April 24, 2008, CenterPoint Energy's board of directors declared a regular quarterly cash dividend of $0.1825 per share of common stock payable on June 10, 2008, to shareholders of record as of the close of business on May 16, 2008.

OUTLOOK REAFFIRMED FOR 2008

CenterPoint Energy reaffirmed its 2008 earnings guidance of $1.15 to $1.25 per share. This guidance takes into consideration various economic and operational assumptions related to the business segments in which the company operates. The company has made certain assumptions regarding the impact to earnings of various regulatory proceedings but cannot predict the ultimate outcome of any of those proceedings. In providing this guidance, the company has not projected the impact of any changes in accounting standards, any impact from acquisitions or divestitures, or the outcome of the TDU's true-up appeal.

FILING OF FORM 10-Q FOR CENTERPOINT ENERGY, INC.

Today, CenterPoint Energy, Inc. filed with the Securities and Exchange Commission (SEC) its Quarterly Report on Form 10-Q for the period ended March 31, 2008. A copy of that report is available on the company's web site, www.CenterPointEnergy.com, under the Investors section. Other filings the company makes at 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, April 30, 2008, 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 at www.CenterPointEnergy.com/investors/events. A replay of the call can be accessed approximately two hours after the completion of the call and will be archived on the Web site for at least one year.

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 over $17 billion. With about 8,600 employees, CenterPoint Energy and its predecessor companies have been in business for more than 130 years. For more information, visit the Web site at www.CenterPointEnergy.com.

The CenterPoint Energy logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3588

This news release includes forward-looking statements. Actual events and results may differ materially from those projected. The statements in this news release regarding future financial performance and results of operations and other statements that are not historical facts are forward-looking statements. Factors that could affect actual results include the timing and outcome of appeals from the true-up proceedings, the timing and impact of future regulatory, legislative and IRS decisions, effects of competition, weather variations, changes in CenterPoint Energy's or its subsidiaries' business plans, financial market conditions, the timing and extent of changes in commodity prices, particularly natural gas, the impact of unplanned facility outages, and other factors discussed in CenterPoint Energy's and its subsidiaries' Form 10-Ks for the period ended December 31, 2007, CenterPoint Energy's Form 10-Q for the period ended March 31, 2008, and other filings with the Securities and Exchange Commission.



                   CenterPoint Energy, Inc. and Subsidiaries
                       Statements of Consolidated Income
                             (Millions of Dollars)
                                 (Unaudited)


                                                   Quarter Ended
                                                     March 31,
                                                 ------------------
                                                   2007       2008
                                                 -------    -------


 Revenues:
  Electric Transmission & Distribution           $   406    $   409
  Natural Gas Distribution                         1,567      1,700
  Competitive Natural Gas Sales and Services       1,064      1,120
  Interstate Pipelines                                90        133
  Field Services                                      39         58
  Other Operations                                     2          3
  Eliminations                                       (62)       (60)
                                                 -------    -------
   Total                                           3,106      3,363
                                                 -------    -------

 Expenses:
  Natural gas                                      2,150      2,393
  Operation and maintenance                          352        365
  Depreciation and amortization                      145        158
  Taxes other than income taxes                      106        111
                                                 -------    -------
   Total                                           2,753      3,027
                                                 -------    -------
 Operating Income                                    353        336
                                                 -------    -------

 Other Income (Expense) :
  Loss on Time Warner investment                     (44)       (54)
  Gain on indexed debt securities                     41         50
  Interest and other finance charges                (123)      (115)
  Interest on transition bonds                       (31)       (33)
  Other - net                                          6         13
                                                 -------    -------
   Total                                            (151)      (139)
                                                 -------    -------

 Income Before Income Taxes                          202        197

 Income Tax Expense                                  (72)       (74)
                                                 -------    -------

 Net Income                                      $   130    $   123
                                                 =======    =======

        Reference is made to the Notes to the Consolidated Financial
       Statements contained in the Quarterly Report on Form 10-Q 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)


                                                    Quarter Ended
                                                      March 31,
                                                 --------------------
                                                    2007       2008
                                                 ---------  ---------
 Basic Earnings Per Common Share:
  Net Income                                     $    0.41  $    0.38
                                                 =========  =========

 Diluted Earnings Per Common Share:
  Net Income                                     $    0.38  $    0.36
                                                 =========  =========

 Dividends Declared per Common Share             $    0.17  $  0.1825

  Weighted Average Common Shares Outstanding
   (000):
   - Basic                                         318,060    327,279
   - Diluted                                       340,103    339,448


 Operating Income (Loss) by Segment
 ----------------------------------

  Electric Transmission & Distribution:
   Electric Transmission and Distribution
    Operations                                   $      62  $      54
   Competition Transition Charge                        11          5
                                                 ---------  ---------
    Total Electric Transmission and
     Distribution Utility                               73         59
   Transition Bond Companies                            31         32
                                                 ---------  ---------
    Total Electric Transmission & Distribution         104         91
  Natural Gas Distribution                             129        121
  Competitive Natural Gas Sales and Services            56          6
  Interstate Pipelines                                  44         71
  Field Services                                        22         45
  Other Operations                                      (2)         2
                                                 ---------  ---------
  Total                                          $     353  $     336
                                                 =========  =========


     Reference is made to the Notes to the Consolidated Financial
     Statements contained in the Quarterly Report on Form 10-Q of
                       CenterPoint Energy, Inc.

                     CenterPoint Energy, Inc. and Subsidiaries
                         Results of Operations by Segment
                              (Millions of Dollars)
                                    (Unaudited)


                                      Electric Transmission &
                                            Distribution
                                  -----------------------------------
                                       Quarter Ended
                                         March 31,
                                  ------------------------   % Diff
                                     2007          2008    Fav/(Unfav)
                                  -----------  -----------  ---------
 Results of Operations:
 Revenues:
  Electric transmission and
   distribution utility           $       347  $       346      --
  Transition bond companies                59           63       7%
                                  -----------  -----------
   Total                                  406          409       1%
                                  -----------  -----------

 Expenses:
  Operation and maintenance               154          168      (9%)
  Depreciation and amortization            63           66      (5%)
  Taxes other than income taxes            57           53       7%
  Transition bond companies                28           31     (11%)
                                  -----------  -----------
   Total                                  302          318      (5%)
                                  -----------  -----------
 Operating Income                 $       104  $        91     (13%)
                                  ===========  ===========

 Operating Income:
  Electric transmission and
   distribution operations        $        62  $        54     (13%)
  Competition transition charge            11            5     (55%)
  Transition bond companies                31           32       3%
                                  -----------  -----------
   Total Segment Operating Income $       104  $        91     (13%)
                                  ===========  ===========

 Electric Transmission &
  Distribution
 Operating Data:
 Actual MWH Delivered
  Residential                       4,658,059    4,403,312      (5%)
  Total                            16,659,914   16,569,691      (1%)

 Weather (average for service
  area):
 Percentage of 10-year average:
  Cooling degree days                     111%         124%     13%
  Heating degree days                     117%          96%    (21%)

 Average number of metered
  customers:
  Residential                       1,752,264    1,801,272       3%
  Total                             1,989,744    2,042,460       3%

                                         Natural Gas Distribution
                                  -----------------------------------
                                       Quarter Ended
                                         March 31,
                                  ------------------------   % Diff
                                      2007         2008    Fav/(Unfav)
                                  -----------  -----------  ---------
 Results of Operations:
 Revenues                         $     1,567  $     1,700       8%
                                  -----------  -----------
 Expenses:
  Natural gas                           1,212        1,333     (10%)
  Operation and maintenance               147          156      (6%)
  Depreciation and amortization            38           39      (3%)
  Taxes other than income taxes            41           51     (24%)
                                  -----------  -----------
   Total                                1,438        1,579     (10%)
                                  -----------  -----------
 Operating Income                 $       129  $       121      (6%)
                                  ===========  ===========

 Natural Gas Distribution Operating
  Data:
 Throughput data in BCF
  Residential                              86           84      (2%)
  Commercial and Industrial                81           83       2%
                                  -----------  -----------
   Total Throughput                       167          167      --
                                  ===========  ===========

 Weather (average for service area)
 Percentage of 10-year average:
  Heating degree days                      99%         106%      7%


 Average number of customers:
  Residential                       2,946,203    2,975,591       1%
  Commercial and Industrial           245,576      250,988       2%
                                  -----------  -----------
   Total                            3,191,779    3,226,579       1%
                                  ===========  ===========


      Reference is made to the Notes to the Consolidated Financial
      Statements contained in the Quarterly Report on Form 10-Q of
                          CenterPoint Energy, Inc.

                      CenterPoint Energy, Inc. and Subsidiaries
                         Results of Operations by Segment
                               (Millions of Dollars)
                                     (Unaudited)

                                     Competitive Natural Gas Sales
                                              and Services
                                    --------------------------------
                                       Quarter Ended
                                          March 31,
                                    ---------------------   % Diff
                                       2007        2008   Fav/(Unfav)
                                    ---------   ---------  ---------
 Results of Operations:
 Revenues                           $   1,064   $   1,120      5%
                                    ---------   ---------
 Expenses:
  Natural gas                             998       1,105    (11%)
  Operation and maintenance                 9           8     11%
  Depreciation and amortization            --           1     --
  Taxes other than income taxes             1          --     --
                                    ---------   ---------
   Total                                1,008       1,114    (11%)
                                    ---------   ---------
 Operating Income                   $     56    $       6    (89%)
                                    =========   =========

 Competitive Natural Gas Sales and
  Services Operating Data:

 Throughput data in BCF
  Wholesale - third parties                94          70    (26%)
  Wholesale - affiliates                    3           2    (33%)
  Retail & Pipeline                        58          66     14%
                                    ---------   ---------
   Total Throughput                       155         138    (11%)
                                    =========   =========

 Average number of customers:
  Wholesale                               223         154    (31%)
  Retail & Pipeline                     6,764       8,338     23%
                                    ---------   ---------
   Total                                6,987       8,492     22%
                                    =========   =========


                                           Interstate Pipelines
                                    --------------------------------
                                       Quarter Ended
                                          March 31,
                                    ---------------------   % Diff
                                       2007        2008   Fav/(Unfav)
                                    ---------   ---------  ---------

 Results of Operations:
 Revenues                           $      90   $     133     48%
                                    ---------   ---------
 Expenses:
  Natural gas                               4          15   (275%)
  Operation and maintenance                27          30    (11%)
  Depreciation and amortization            10          12    (20%)
  Taxes other than income taxes             5           5     --
                                    ---------   ---------
   Total                                   46          62    (35%)
                                    ---------   ---------
 Operating Income                   $      44   $      71     61%
                                    =========   =========


 Pipelines Operating Data:
 Throughput data in BCF
 Transportation                           294         424     44%
                                    =========   =========

      Reference is made to the Notes to the Consolidated Financial
      Statements contained in the Quarterly Report on Form 10-Q of
                        CenterPoint Energy, Inc.

                  CenterPoint Energy, Inc. and Subsidiaries
                      Results of Operations by Segment
                            (Millions of Dollars)
                                  (Unaudited)


                                          Field Services
                                  --------------------------------
                                     Quarter Ended
                                       March 31,
                                  --------------------    % Diff
                                    2007        2008    Fav/(Unfav)
                                  --------    --------   --------
 Results of Operations:
 Revenues                         $     39    $     58      49%
                                  --------    --------
 Expenses:
  Natural gas                           (3)         (2)    (33%)
  Operation and maintenance             16          11      31%
  Depreciation and amortization          3           3      --
  Taxes other than income taxes          1           1      --
                                  --------    --------
   Total                                17          13      24%
                                  --------    --------
 Operating Income                 $     22    $     45     105%
                                  ========    ========


 Field Services Operating Data:
 Throughput data in BCF
  Gathering                             93          98       5%
                                  ========    ========


                                          Other Operations
                                  --------------------------------
                                     Quarter Ended
                                       March 31,
                                  --------------------    % Diff
                                    2007        2008    Fav/(Unfav)
                                  --------    --------   --------
 Results of Operations:

 Revenues                         $      2    $      3      50%
 Expenses                                4           1      75%
                                  --------    --------
 Operating Income (Loss)          $     (2)   $      2     200%
                                  ========    ========


                              Capital Expenditures by Segment
                                  (Millions of Dollars)
                                        (Unaudited)

                                  --------------------
                                     Quarter Ended
                                        March 31,
                                  --------------------
                                    2007        2008
                                  --------    --------
 Capital Expenditures by Segment
  Electric Transmission &
   Distribution                   $    110    $     89
  Natural Gas Distribution              33          38
  Competitive Natural Gas Sales
   and Services                          2           1
  Interstate Pipelines                 154          28
  Field Services                        27          18
  Other Operations                      11           8
                                  --------    --------
   Total                          $    337    $    182
                                  ========    ========

                                  Interest Expense Detail
                                   (Millions of Dollars)
                                        (Unaudited)

                                  --------------------
                                     Quarter Ended
                                        March 31,
                                  --------------------
                                    2007        2008
                                  --------    --------
 Interest Expense Detail
  Amortization of Deferred
   Financing Cost                 $     19    $      6
  Capitalization of Interest Cost       (8)         (3)
  Transition Bond Interest Expense      31          33
  Other Interest Expense               112         112
                                  --------    --------
   Total Interest Expense         $    154    $    148
                                  ========    ========

     Reference is made to the Notes to the Consolidated Financial
     Statements contained in the Quarterly Report on Form 10-Q of
                       CenterPoint Energy, Inc.

                CenterPoint Energy, Inc. and Subsidiaries
                  Condensed Consolidated Balance Sheets
                          (Millions of Dollars)
                               (Unaudited)


                                               December 31,  March 31,
                                                   2007        2008
                                                ---------   ---------


                       ASSETS
 Current Assets:
  Cash and cash equivalents                     $     129   $      70
  Other current assets                              2,659       2,281
                                                ---------   ---------
   Total current assets                             2,788       2,351
                                                ---------   ---------

 Property, Plant and Equipment, net                 9,740       9,802
                                                ---------   ---------
 Other Assets:

  Goodwill                                          1,696       1,696
  Regulatory assets                                 2,993       2,907
  Other non-current assets                            655         779
                                                ---------   ---------
   Total other assets                               5,344       5,382
                                                ---------   ---------
    Total Assets                                $  17,872   $  17,535
                                                =========   =========

        LIABILITIES AND SHAREHOLDERS' EQUITY
 Current Liabilities:
  Short-term borrowings                         $     232   $     200
  Current portion of transition bond long-term
   debt                                               159         186
  Current portion of other long-term debt           1,156         724
  Other current liabilities                         2,244       2,174
                                                ---------   ---------
   Total current liabilities                        3,791       3,284
                                                ---------   ---------

 Other Liabilities:
  Accumulated deferred income taxes, net and
   investment tax credit                            2,266       2,258
  Regulatory liabilities                              828         795
  Other non-current liabilities                       813         772
                                                ---------   ---------
   Total other liabilities                          3,907       3,825
                                                ---------   ---------

 Long-term Debt:
  Transition bond                                   2,101       2,485
  Other                                             6,263       6,061
                                                ---------   ---------
   Total long-term debt                             8,364       8,546
                                                ---------   ---------

 Shareholders' Equity                               1,810       1,880
                                                ---------   ---------
   Total Liabilities and Shareholders' Equity   $  17,872   $  17,535
                                                =========   =========

       Reference is made to the Notes to the Consolidated Financial
       Statements contained in the Quarterly Report on Form 10-Q of
                          CenterPoint Energy, Inc.

                  CenterPoint Energy, Inc. and Subsidiaries
               Condensed Statements of Consolidated Cash Flows
                           (Millions of Dollars)
                                (Unaudited)

                                                  Three Months Ended
                                                      March 31,
                                                 --------------------
                                                    2007       2008
                                                 ---------  ---------
 Cash Flows from Operating Activities:
  Net income                                     $     130  $     123
  Adjustments to reconcile net income to net
   cash provided by operating activities:
   Depreciation and amortization                       164        165
   Deferred income taxes                               (13)        27
   Changes in net regulatory assets                     22         14
   Changes in other assets and liabilities             (56)       226
   Other, net                                           17         12
                                                 ---------  ---------
 Net Cash Provided by Operating Activities             264        567

 Net Cash Used in Investing Activities                (403)      (312)

 Net Cash Provided by (Used in) Financing
  Activities                                            72       (314)
                                                 ---------  ---------

 Net Decrease in Cash and Cash Equivalents             (67)       (59)

 Cash and Cash Equivalents at Beginning of Period      127        129

                                                 ---------  ---------
 Cash and Cash Equivalents at End of Period      $      60  $      70
                                                 =========  =========

      Reference is made to the Notes to the Consolidated Financial
      Statements contained in the Quarterly Report on Form 10-Q of
                        CenterPoint Energy, Inc.


            

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