CenterPoint Energy 2014 Annual Report Download - page 59
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Energy Services
The following table provides summary data of our Energy Services business segment for 2014 , 2013 and 2012
(in millions, except
throughput and customer data):
___________________
2014 Compared to 2013. Our Energy Services business segment reported operating income of $52 million compared to $13 million
for
2013. The increase in operating income of $39 million was primarily due to a $31 million increase from mark-to-
market accounting for
derivatives associated with certain natural gas purchases and sales used to lock in economic margins. A $29 million mark-to-
market gain was
incurred in 2014 compared to a charge of $2 million in 2013. The remaining increase in operating income was primarily due to improved
margins resulting from weather-
related optimization of existing gas transportation assets, reduced fixed costs and increased throughput and price
volatility.
2013 Compared to 2012.
Our Energy Services business segment reported operating income of $13 million compared to $2 million for 2012,
excluding the goodwill impairment charge discussed below. The increase in operating income of $11 million was primarily due to a $14 million
increase from mark-to-
market accounting for derivatives associated with certain natural gas purchases and sales used to lock in economic
margins. A $2 million mark-to-
market charge was incurred in 2013 compared to a charge of $16 million for 2012. Energy Services grew both
volume and customers in 2013 offsetting the impact of the lower unit margin environment.
Goodwill Impairment
A non-
cash goodwill impairment charge of $252 million for our Energy Services business segment was recorded in 2012. The adverse
wholesale market conditions facing our energy services business, specifically the prospects for continued low geographic and seasonal price
differentials for natural gas, led to a reduction in our estimate of the fair value of goodwill associated with this reporting unit.
52
Year Ended December 31,
2014
2013
2012
Revenues
$
3,179
$
2,401
$
1,784
Expenses:
Natural gas
3,073
2,336
1,730
Operation and maintenance
47
46
45
Depreciation and amortization
5
5
6
Taxes other than income taxes
2
1
1
Goodwill impairment
—
—
252
Total expenses
3,127
2,388
2,034
Operating Income (Loss)
$
52
$
13
$
(250
)
Throughput (in Bcf)
631
600
562
Number of customers at end of period (1)
17,964
17,510
16,330
(1)
These numbers do not include approximately 9,700, 8,800 and 12,700 natural gas customers as of December 31, 2014, 2013 and 2012,
respectively, that are under residential and small commercial choice programs invoiced by their host utility.