CenterPoint Energy 2008 Annual Report Download - page 68

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46
LIQUIDITY AND CAPITAL RESOURCES
Historical Cash Flow
The net cash provided by (used in) operating, investing and financing activities for 2006, 2007 and 2008 is as
follows (in millions):
Year Ended December 31,
2006
2007
2008
Cash provided by (used in):
Operating activities ...........................................................................................
$ 991
$ 774
$ 851
Investing activities .............................................................................................
(1,056)
(1,300)
(1,368)
Financing activities ............................................................................................
118
528
555
Cash Provided by Operating Activities
Net cash provided by operating activities in 2008 increased $77 million compared to 2007 primarily due to
decreased tax payments/increased tax refunds ($289 million), increased net accounts receivable/payable
($190 million), increased fuel cost recovery ($138 million) and increased pre-tax income ($131 million). These
increases were partially offset by increased net regulatory assets and liabilities ($447 million) and increased net
margin deposits ($247 million).
Net cash provided by operating activities in 2007 decreased $217 million compared to 2006 primarily due to the
timing of fuel recovery ($204 million), increased tax payments ($10 million), increased interest payments
($40 million), increased gas storage inventory ($36 million) and decreased net accounts receivable/payable
($178 million). These decreases were partially offset by decreased reductions in customer margin deposit
requirements ($76 million) and decreases in our margin deposit requirements ($145 million).
Cash Used in Investing Activities
Net cash used in investing activities increased $68 million in 2008 compared to 2007 due to increased investment
in unconsolidated affiliates of $167 million, primarily related to the SESH pipeline project, which was partially
offset by decreased capital expenditures of $94 million.
Net cash used in investing activities increased $244 million in 2007 compared to 2006 due to increased capital
expenditures of $107 million primarily related to pipeline projects for our Interstate Pipelines business segment,
increased notes receivable from unconsolidated affiliates of $148 million and increased investment in
unconsolidated affiliates of $26 million, primarily related to the SESH pipeline project.
Cash Provided by Financing Activities
Net cash provided by financing activities in 2008 increased $27 million compared to 2007 primarily due to
increased borrowings under revolving credit facilities ($779 million) and increased proceeds from long-term debt
($188 million), which were partially offset by increased repayments of long-term debt ($825 million) and decreased
short-term borrowings ($124 million).
Net cash provided by financing activities in 2007 increased $410 million compared to 2006 primarily due to
increased borrowings under revolving credit facilities ($334 million) and increased proceeds from long-term debt
($576 million), which were partially offset by increased repayments of long-term debt ($319 million), increased
dividend payments ($31 million) and decreased short-term borrowings ($142 million).
Future Sources and Uses of Cash
Our liquidity and capital requirements are affected primarily by our results of operations, capital expenditures,
debt service requirements, tax payments, working capital needs, various regulatory actions and appeals relating to
such regulatory actions. Our principal anticipated cash requirements for 2009 include the following: