CenterPoint Energy Services Reports Customer Growth

CenterPoint Energy, Inc.'s Competitive Natural Gas Sales and Services segment reported operating income of $3 million for the fourth quarter of 2011, compared to no operating income for the same period of 2010.

The fourth quarter of 2011 included a $5 million charge related to an early capacity release on pipeline transportation. In addition, the fourth quarter of 2011 included gains of $1 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 $10 million for the same period of 2010. The fourth quarter of 2011 also included a $4 million write-down of natural gas inventory to the lower of average cost or market.

Low basis spreads and uneconomic pipeline capacity contracts continue to negatively impact the competitive segment's results. However, the retail side of the competitive business, "continues to do well," executives said.

As of December 31, 2011, CenterPoint Energy Services, Inc. was serving 14,267 customers which it billed directly, and 13,354 natural gas customers that are under residential and small commercial choice programs invoiced by their host utility.

CenterPoint Energy Services, Inc.'s volumes in 2011 were 558 Bcf.

For the year 2011, operating income for the Competitive Natural Gas Sales and Services segment was $6 million, compared to $16 million for 2010.

Operating income for the year ended December 31, 2011, included the $5 million early capacity release charge. In addition, operating income for the year ended December 31, 2011, included gains of $8 million resulting from mark-to-market accounting compared to gains of $4 million for the same period of 2010. The year ended December 31, 2011, included an $11 million write-down of natural gas inventory compared to a $6 million write-down in the same period of 2010.

CenterPoint Energy, Inc. said that it was evaluating acquiring assets to expand its present businesses, with a particular focus in the field services segment, but with the evaluation encompassing all business lines.