Retail Segment Continues to Highlight CenterPoint's Competitive Gas Results

CenterPoint Energy's competitive natural gas sales and services business reported operating income of $3 million for the second quarter of 2011, compared to an operating loss of $6 million for the same period of 2010.

Operating income for the second quarter of 2011 included gains of $4 million resulting from mark-to-market accounting for derivatives associated with certain forward natural gas purchases and sales used to lock in economic margins, compared to charges of $8 million for the same period of 2010. After adjusting for mark-to-market accounting for derivatives, the second quarter of 2011 would have reflected an operating loss of $1 million, compared to operating income of $2 million for the year-ago quarter.

CenterPoint said that the competitive segment's retail business continues to perform well, with an increase in both retail customers and sales volumes, resulting in increased operating income of $1 million.

These retail gains were offset by a $5 million decrease in margin for the competitive segment, resulting mainly from reduced basis spreads on pipeline transport opportunities.

The competitive sales and services segment had 12,152 customers as of June 30, 2011, versus 11,942 as of March 31, 2011 and 11,694 a year ago.

Overall throughput for the competitive segment (retail and other business lines) was 126 Bcf for the quarter, versus 128 Bcf a year ago. The decline reflects the challenging market environment for the non-retail business lines in the competitive segment, mainly as a result of the aforementioned reduced basis spreads.

Revenues for the competitive sales and services segment were $586 million for the quarter, versus $560 million a year ago.