Energy delivery company CenterPoint Energy Inc. (CNP) today posted net earnings of 31 cents per share, in line with Zacks Consensus Estimate of 31 cents and lower than last year’s earnings of 39 cents. The company’s core regulated operations reported strong earnings results during the quarter despite the economic downturn.

Net revenues in the quarter increased 60% over a year ago to $2,515 million, driven by revenue increases at the natural gas distribution and competitive natural gas sales & services businesses. Operating income reported in the quarter was down 15% year-over-year to $287 million, due to lower natural gas and natural gas liquids prices, a decline in natural gas throughput from the traditional basins and reduced basis differentials.

Operating income at CenterPoint’s electric transmission & distribution segment improved 8% over last year to $218 million, consisting of $187 million from the regulated electric transmission & distribution utility operations (TDU) and $31 million related to transition bonds. The results benefited from growth of over 26,000 metered customers since Sep 2008, favorable weather and higher net transmission revenues, partially offset by higher operation and maintenance expenses.

CenterPoint’s natural gas distribution segment reported an operating loss of $15 million versus a loss of $6 million last year, primarily due to higher pension and other operation and maintenance expenses, which more than offset rate increases and higher miscellaneous revenues. At the interstate pipelines segment operating income improved 16% from last year, driven by higher revenue from new contracts on the Carthage to Perryville pipeline and for deliveries to gas-fired power generators offset by higher pension and other operation and maintenance expenses.

At the field services segment operating income declined 48%, due to significantly lower commodity prices in the quarter as well as lower natural gas throughput from traditional basins. The competitive natural gas sales and services segment reported an operating loss of $8 million in the quarter versus operating income of $35 million a year ago. The decline was attributed to reduced locational price differentials and to a lesser extent to lower retail sales volumes.

CenterPoint expects the balanced portfolio of its electric and natural gas businesses to position it well as the economy recovers and the energy markets rebound. CenterPoint Energy reaffirmed its 2009 earnings guidance of $1.05 to $1.15 per diluted share.
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