CenterPoint Energy Slips To Loss In Q2 On Charges, Reaffirms Outlook

(RTTNews) - Electric and natural gas utility CenterPoint Energy Inc. (CNP) on Thursday reported a loss for the second quarter as one-time charges more than offset strong revenue growth. Looking ahead, the company reaffirmed its fiscal 2013 earnings outlook, excluding the effects of the charges recorded in the second quarter.

David McClanahan, president and chief executive officer of CenterPoint Energy said, "The most significant accomplishment this quarter was the closing of our midstream partnership with OGE Energy, Enable Midstream Partners. Our financial results for the quarter include a number of one-time charges associated with its formation. While it will take some time to realize the full potential of this new venture we remain very excited about the future of this business."

Houston, Texas-based CenterPoint serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma and Texas. The company also owns a 58.3 percent limited partner interest in Enable Midstream Partners it jointly controls with OGE Energy Corp. (OGE), with operations in major natural gas and liquids-rich producing areas of Oklahoma, Texas, Arkansas and Louisiana.

Electric transmission & distribution revenues for the second quarter declined 3 percent from last year, while natural gas distribution revenues surged 45 percent. Revenues from competitive natural gas sales and services more than doubled, while revenues from interstate pipelines decreased 57 percent. Revenues from field services dropped 47 percent.

Total expenses for the quarter rose 37 percent from the year-ago period to $1.67 billion.

CenterPoint's net loss for the second quarter was $100 million or $0.23 per share, compared to net income of $126 million or $0.29 per share in the year-ago period.

The latest quarter's results included a non-cash deferred tax charge of $225 million or $0.52 per share and expenses of $10 million or $0.01 per share related to the formation of a midstream partnership.

Excluding these items, adjusted net income for the quarter was $131 million or $0.30 per share. On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $0.26 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter grew 24 percent to $1.89 billion from $1.53 billion in the same period last year. Analysts had a consensus revenue estimate of $1.60 billion.

Looking ahead to fiscal 2013, CenterPoint Energy reaffirmed its outlook for earnings in a range of $1.17 to $1.25 per share, excluding the effects of the two one-time items recorded in the second quarter. Analysts expect the company to report earnings of $1.23 per share for the year.

In Thursday's regular trading session, CNP is trading at $25.05, up $0.23 or 0.93 percent on a volume of 616,324 shares.