CenterPoint Energy 2005 Annual Report Download - page 14

CARTHAGE
Tyler
Longview Bossier City
Shreveport
Monroe
Texarkana
TEXAS
LOUISIANA
ARKANSAS
VERNON
PERRYVILLE
LEGEND
Existing CNP Pipelines Proposed Pipeline Compressor Stations Major pipelines connected
FIELD SERVICES — STRENGTHENING OUR SYSTEM: Our Field Services operations had an outstanding
year, successfully negotiating contracts with customers on eight major projects that we estimate will
provide $8.5 million in annual operating income. In addition, average daily volumes were up
10 percent, and we added 383 new wells. The gas gathering system had about 1 Bcf/d throughput,
a 25 percent increase in volumes over the past two years, and had a compressor runtime of 98.6 percent.
Field Services also invested record capital in 2005 to
build incremental gathering, processing and treating
facilities that allow gas from increased drilling activity
to reach the market. ServiceStar, our remote well
monitoring and measurement service, added 40 new
customers to our system and 2,536 new monitoring
points, a 39 percent increase over 2004.
Both our Field Services and Pipeline Services
employees continued to build on their already
impressive safety record. Field Services once again
improved its performance, while Pipeline Services
received an American Gas Association Leader in
Accident Prevention Award and is eligible for two
Southern Gas Association safety awards – 1 million
hours worked without a lost-time accident and two
years without a recordable incident.
DYNAMIC MARKETS, NEW OPPORTUNITIES: Looking ahead, we continue
to improve our work processes to offset the increasing costs
associated with new pipeline integrity and public awareness
programs. Last year, we began implementing changes to the way we
plan and schedule work activities. When fully implemented by the
second quarter of 2006, these changes should save us more than
$1 million annually.
Longer term, we expect market dynamics to continue allowing us to
expand. Drilling activity in all basins along our system remains strong,
providing Field Services opportunities to build, own and operate new
facilities. Our focus for the pipeline business is to become a major
participant in moving supply from the Rocky Mountains, Barnett
Shale, Bossier Sand and Fayetteville Shale areas to the Midwest,
Southeast and Northeast markets. Our Carthage to Perryville and
Southeast Supply Header pipelines will link these supplies to these
markets while positioning our Perryville Hub as one of the industry’s
major supply and market hubs. Additionally, we are exploring the
development of a new 800-mile pipeline that would connect the
Texas Panhandle to eastern U.S. markets. Called the Mid-Continent
Crossing, this line would be capable of delivering 1.2 Bcf/d and
would complement our other new pipelines. This project could be in
service as early as the fourth quarter of 2008.
[1 2 ] CENT ERPOINT E NERGY 2 0 05 AN N UA L R E PO R T
OUR CHALLENGE IS TO CONTINUE OFFERING CUSTOMERS
FLEXIBILITY, OUTSTANDING SERVICE AND ECONOMIC
VALUE WHILE MANAGING RISING OPERATING AND
MAINTENANCE COSTS DUE PRIMARILY TO INCREASED
REGULATORY REQUIREMENTS.