Summary
CenterPoint Energy, Inc. reported a net loss of $183 million for the nine months ended September 30, 2015, a significant downturn from the $435 million net income reported for the same period in 2014. This shift is largely attributable to a substantial $794 million decrease in equity earnings from unconsolidated affiliates, primarily driven by an $862 million impairment charge related to its investment in Enable Midstream Partners, LP. Revenues also saw a decline, decreasing to $5.6 billion from $6.9 billion year-over-year. Despite the net loss, the company's core utility operations, Electric Transmission & Distribution and Natural Gas Distribution, demonstrated resilience, with operating income increasing year-over-year for both segments. The company continues to invest in infrastructure, with significant capital expenditures aimed at maintaining reliability and expanding its systems. Management expects ongoing cash flows from operations, along with borrowings under credit facilities and distributions from Enable, to be sufficient for its needs in the near term.
Financial Highlights
45 data points| Revenue | $1.63B |
| Operating Expenses | $1.36B |
| Operating Income | $265.00M |
| Net Income | -$391.00M |
| EPS (Basic) | $-0.91 |
| EPS (Diluted) | $-0.91 |
| Shares Outstanding (Basic) | 430.26M |
| Shares Outstanding (Diluted) | 430.26M |
Key Highlights
- 1Significant Net Loss: CenterPoint Energy reported a net loss of $183 million for the first nine months of 2015, a reversal from a net income of $435 million in the prior year period.
- 2Enable Midstream Impairment: A substantial $862 million impairment charge related to the investment in Enable Midstream Partners, LP, significantly impacted the financial results, leading to a $794 million decrease in equity earnings from unconsolidated affiliates.
- 3Revenue Decline: Total revenues decreased to $5.6 billion for the nine months ended September 30, 2015, from $6.9 billion in the same period of 2014.
- 4Resilient Utility Operations: The Electric Transmission & Distribution and Natural Gas Distribution segments showed improved operating income year-over-year, demonstrating strength in core regulated businesses.
- 5Capital Expenditures: The company continued to invest in infrastructure, with capital expenditures of $1.131 billion for the nine months ended September 30, 2015.
- 6Liquidity Position: Management believes that existing cash flows, credit facilities, and distributions from Enable are sufficient to meet anticipated cash needs for the remainder of 2015.
- 7Increased Effective Tax Rate: The effective tax rate increased to 41% for the nine months ended September 30, 2015, from 36% in the prior year period, primarily due to the Enable impairment.