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About Centerpoint Energy, Inc.

CenterPoint Energy Inc., one of the largest public utilities in the US, distributes natural gas and electricity to more than 7 million customers. Through subsidiary CenterPoint Energy Resources Corp, this holding company distributes natural gas to 4.6 million customers in six states. The company's other major subsidiary, Houston Electric, distributes electricity that reaches 2.5 million customers in the Texas Gulf Coast region, including Houston. Beyond these regulated distributions (that requires rate approval from regional authorities), CenterPoint Energy also sells gas directly to some 31,000 customers across 30 US states. These customers range from large industries and utilities to municipalities and educational institutions. In addition to its portfolio of about 55,200 miles of power distribution lines and 76,000 miles of gas distribution lines, the holding company has about 55% equity investment in the master limited partnership Enable, which maintains natural gas and crude oil infrastructure assets in five US states.

Operations

CenterPoint Energy operates through five segments.

CenterPoint's Energy Services and Natural Gas Distribution each accounts approximately 30% company's revenue. Energy Services includes non-rate regulated natural gas sales to, and transportation and storage services, for commercial and industrial customers including other utilities. Reported under its Energy Services segment, CenterPoint Energy markets around 1,300 billion cubic feet of natural gas, provides related energy services (like load forecasting and supply acquisition), and maintains a portfolio of physical delivery services across 30 states. The company's Natural Gas Distribution segment sells regulated natural gas to 4.6 million residential, commercial, industrial, and transportation customers in six US states, serving major metropolitan areas like Houston, Texas and Minneapolis, Minnesota. The segment also maintains natural gas transportation and storage assets.

Electric Transmission & Distribution (about 25% of annual revenue) comprises CenterPoint Energy's subsidiary Houston Electric, which delivers electricity from power plants to substations and retail customers and serves approximately 2.5 million customers. This segment also constructs and maintains transmission facilities and provides transmission services under regulated tariffs.

CenterPoint Energy's Midstream Investment segment consists of its equity investment in Enable, which provides natural gas gathering and processing and transportation and storage services to producers, refiners, local distributors, and industrial end-users.

Infrastructure Services, Indiana Electric Integrated and other Corporate operations generate the remaining revenue. The company's Other segment consists of corporate operations that support all of CenterPoint Energy's businesses. Going forward, CenterPoint will also report Vectren as a new reportable segment following its 2019 acquisition and integration into the company.

Geographic Reach

Headquartered in Houston, Texas, CenterPoint Energy delivers non-rate regulated gas to 48,000 customers in 30 states and rate-regulated gas to 4.6 million customers in six states (Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas). In addition, the company provides electricity to 2.5 million in the greater Houston area through its 3,800 miles of transmission lines and more than 55,200 miles of distribution lines. Enable, majority-owned by CenterPoint, has gathering and processing operations in Arkansas, Louisiana, and Texas.

Sales and Marketing

CenterPoint Energy provides electricity in a 5,000 square-mile area around the greater Houston area to roughly 2.5 million customers, while its natural gas distribution business serves some 4.6 million customers in six states. CenterPoint Energy Services (CES), its natural gas sales and service business, reaches approximately 31,000 customers across over 30 states.

The company distributes electricity via substations, delivers electricity to end users through distribution feeders and sells natural gas directly to commercial and industrial customers. Its customers include gas utilities, large industrial customers, electric generators, smaller commercial and industrial customers, municipalities, educational institutions, government facilities and hospitals.

Financial Performance

CenterPoint Energy's revenue in the last five years has been consistently increasing. Compared with $7.4 billion in 2015, the company's revenue increased by 66% to $12.3 billion in 2019.

CenterPoint Energy's revenue in 2019 increased by 16% to $12.3 billion in 2019 compared with $10.6 billion in 2018.

Net income in 2019 rose to $674 compared with $333 in 2018. The increase in income available to common shareholders was primarily due to an increase in operating income, an increase in gain on marketable securities, a decrease in interest expense related to lower outstanding balances of the Securitization Bonds and decrease in income tax expense primarily due to the lower effective tax rate.

The company's cash and cash equivalents dropped to $271 million compared with $4.3 billion in 2018. Cash from operations generated $1.6 billion, while cash from investing used $8.4 billion. Financing activities provided $2.8 billion, mostly coming from long-term debt proceeds.

Strategy

CenterPoint Energy has grown dramatically in the past few years by acquiring complementary businesses to expand its core electric and gas operations. The acquisitions of parts of Continuum's business and Atmos, as well as the Vectren merger, bolsters its growth potential.

The Smart Grid continues to improve electric distribution service reliability and restoration, enhance the consumer experience, support the growth of renewable energy and help the environment by reducing carbon emissions.

In mid-2020, CenterPoint Energy and Energy Capital Partners, a private equity and credit investor specializing in energy infrastructure projects, have closed on the sale of CenterPoint Energy Services, Inc. (CES) to an affiliate of ECP. Net proceeds of the sale will be used to repay a portion of outstanding CenterPoint Energy debt.

Mergers and Acquisitions

CenterPoint and Vectren Corporation merged in 2019, with Vectren becoming a consolidated subsidiary of CenterPoint. The combined company now has electric and natural gas delivery operations in eight states with assets totaling $29 billion, making it one of the top US energy delivery companies with access to 7 million customers.

Company Background

CenterPoint Energy traces its roots back to three major companies—Minneapolis Gas Light Company (founded in 1870), Houston Electric Light & Power (1882), and a Louisiana natural gas distribution business in Shreveport (1905). Decades later, these businesses merged to become NorAm Energy Corp. Soon after, NorAm Energy merged with Houston Industries, the parent of Houston Electricl, renamed Reliant Energy in 1999. The company changed names again to CenterPoint Energy in 2002 following a restructuring of the electric market in Texas that made it into a mostly regulated company. 

In 2013, along with ArcLight Capital Partners and OGE Energy Corp, CenterPoint created one the largest master limited partnerships in the US, Enable Midstream Partners.

Centerpoint Energy, Inc.

1111 Louisiana St Ste 264
Houston, TX 77002-5228
Phone: 1 (713) 207-1111

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: CNP
Stock Exchange: , NYSE
Chairman: Milton Carroll
President, CEO, and Director: Scott M. Prochazka
EVP and CFO: William D. Rogers
Employees (This Location): 1,100
Employees (All Locations): 14,262

Major Office Locations

Houston, TX

Other Locations

El Dorado, AR
Emmet, AR
Fort Smith, AR
Hamburg, AR
Helena, AR
Little Rock, AR
North Little Rock, AR
Pocahontas, AR
Searcy, AR
Springdale, AR
Star City, AR
Tuckerman, AR
West Memphis, AR
Wynne, AR
Titusville, FL
Collinsville, IL
Columbia, IL
Downers Grove, IL
Saint Jacob, IL
Crown Point, IN
Bogalusa, LA
Broussard, LA
Deridder, LA
Dubach, LA
Opelousas, LA
Shreveport, LA
Sterlington, LA
Alexandria, MN
Brainerd, MN
Burnsville, MN
Milaca, MN
Minneapolis, MN
South Saint Paul, MN
Waterville, MN
Willmar, MN
Bonne Terre, MO
Poplar Bluff, MO
Laurel, MS
Sayreville, NJ
Cohoes, NY
East Syracuse, NY
Queensbury, NY
Niles, OH
Altus, OK
Amber, OK
Anadarko, OK
Arapaho, OK
Blackwell, OK
Calumet, OK
Chickasha, OK
Clinton, OK
Coalgate, OK
Crescent, OK
Cushing, OK
Duncan, OK
Edmond, OK
Elk City, OK
Elmore City, OK
Enid, OK
Fairview, OK
Kinta, OK
Marlow, OK
Mcalester, OK
Minco, OK
Okeene, OK
Oklahoma City, OK
Rush Springs, OK
Sayre, OK
Thomas, OK
Weatherford, OK
Wetumka, OK
Wilburton, OK
Austin, TX
Baytown, TX
Dallas, TX
Henderson, TX
Houston, TX
Livingston, TX
Longview, TX
New Braunfels, TX
Richmond, TX
Rosenberg, TX
Spring, TX
Texas City, TX
Tyler, TX
Madison, WI