CenterPoint Energy 2008 Annual Report Download - page 67

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45
Field Services
The following table provides summary data of our Field Services business segment for 2006, 2007 and 2008 (in
millions, except throughput data):
Year Ended December 31,
2006
2007
2008
Revenues ................................................................................................................................
$ 150
$ 175
$ 252
Expenses:
Natural gas ................................................................................................................................
(10)
(4)
21
Operation and maintenance................................................................................................
59
66
69
Depreciation and amortization ................................................................................................
10
11
12
Taxes other than income taxes ................................................................................................
2
3
3
Total expenses ................................................................................................
61
76
105
Operating Income ................................................................................................
$ 89
$ 99
$ 147
Gathering throughput (in Bcf) ................................................................................................
375
398
421
2008 Compared to 2007. Our Field Services business segment reported operating income of $147 million for
2008 compared to $99 million for 2007. The increase in operating income of $48 million resulted from higher
margins (revenue less natural gas costs) from gas gathering, ancillary services and higher commodity prices
($34 million) and a one-time gain related to a settlement and contract buyout of one of our customers ($11 million).
Operating expenses increased from 2007 to 2008 due to higher expenses associated with new assets and general cost
increases, partially offset by a gain related to the sale of assets in 2008 ($7 million).
2007 Compared to 2006. Our Field Services business segment reported operating income of $99 million for 2007
compared to $89 million for 2006. Continued increased demand for gas gathering and ancillary services
($27 million) was partially offset by lower commodity prices ($10 million) and increased operation and maintenance
expenses related to cost increases and expanded operations ($7 million).
Equity Earnings. In addition, this business segment recorded equity income of $6 million, $10 million and
$15 million for the years ended December 31, 2006, 2007 and 2008, respectively, from its 50 percent interest in a
jointly-owned gas processing plant. These amounts are included in Equity in earnings of unconsolidated affiliates
under the Other Income (Expense) caption.
Other Operations
The following table provides summary data for our Other Operations business segment for 2006, 2007 and 2008
(in millions):
Year Ended December 31,
2006
2007
2008
Revenues ................................................................................................................................
$ 15
$ 10
$ 11
Expenses................................................................................................................................
17
15
–
Operating Income (Loss) ................................................................................................
$ (2)
$ (5)
$ 11
2008 Compared to 2007. Our Other Operations business segment’s operating income in 2008 compared to 2007
increased by $16 million primarily as a result of a decrease in franchise taxes ($7 million) and a decrease in benefits
accruals ($4 million).
2007 Compared to 2006. Our Other Operations business segment’s operating loss in 2007 compared to 2006
increased by $3 million.