CenterPoint Energy 2009 Annual Report Download - page 72

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50
Field Services
The following table provides summary data of our Field Services business segment for 2007, 2008 and 2009 (in
millions, except throughput data):
Year Ended December 31,
2007 2008 2009
Revenues ........................................................................................................ $ 175 $ 252 $241
Expenses:
N
atural
g
as .................................................................................................. (4) 21 51
Operation and maintenance......................................................................... 66 69 77
Depreciation and amortization .................................................................... 11 12 15
Taxes other than income taxes .................................................................... 3 3 4
Total expenses ........................................................................................ 76 105 147
Operatin
g
Income .......................................................................................... $ 99 $ 147 $ 94
Gathering throughput (in Bcf) .................................................................... 398 421 426
2009 Compared to 2008. Our Field Services business segment reported operating income of $94 million for 2009
compared to $147 million for 2008. Operating margin from new projects and core gathering services increased
approximately $24 million for 2009 when compared to the same period in 2008 primarily due to continued
development in the shale plays. This increase was offset primarily by the effect of a decline in commodity prices of
approximately $54 million from the significantly higher prices experienced in 2008. Operating income for 2009
also included higher costs associated with incremental facilities ($4 million) and increased pension cost ($2 million).
Operating income for 2008 benefited from a one-time gain ($11 million) related to a settlement and contract buyout
of one of our customers and a gain on sale of assets ($6 million).
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 ($6 million).
Equity Earnings. In addition, this business segment recorded equity income of $10 million, $15 million and
$8 million for the years ended December 31, 2007, 2008 and 2009, respectively, from its 50% interest in a jointly-
owned gas processing plant. The decrease is driven by a decrease in natural gas liquid prices. 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 2007, 2008 and 2009
(in millions):
Year Ended December 31,
2007 2008 2009
Revenues ........................................................................................................... $ 10 $ 11 $11
Expenses ............................................................................................................ 15
–
7
Operatin
g
Income (Loss) ................................................................................... $ (5) $ 11 $ 4
2009 Compared to 2008. Our Other Operations business segment’s operating income in 2009 compared to 2008
decreased by $7 million primarily as a result of an increase in depreciation and amortization expense ($4 million)
and an increase in franchise taxes ($3 million).