CenterPoint Energy 2010 Annual Report Download - page 74

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52
Field Services
The following table provides summary data of our Field Services business segment for 2008, 2009 and 2010 (in
millions, except throughput data):
Year Ended December 31,
2008
2009
2010
Revenues ...................................................................................................................................................
$ 252
$ 241
$ 338
Expenses:
Natural gas .............................................................................................................................................
21
51
72
Operation and maintenance....................................................................................................................
69
77
85
Depreciation and amortization ...............................................................................................................
12
15
25
Taxes other than income taxes ...............................................................................................................
3
4
5
Total expenses ...................................................................................................................................
105
147
187
Operating Income .....................................................................................................................................
$ 147
$ 94
$ 151
Equity in earnings of unconsolidated affiliates .........................................................................................
$ 15
$ 8
$ 10
Gathering throughput (in Bcf) ...............................................................................................................
421
426
650
2010 Compared to 2009. Our Field Services business segment reported operating income of $151 million for
2010 compared to $94 million for 2009. Margins (revenues less natural gas costs) increased primarily due to new
projects, including the Magnolia and Olympia Gathering Systems in the North Louisiana Haynesville Shale and core
gathering services ($74 million), along with increased commodity prices ($2 million). Increases in operating
expenses ($29 million) and depreciation ($10 million) associated with new projects were partially offset by a gain on
the sale of non-strategic gathering assets in October 2010 ($21 million).
2009 Compared to 2008. Our Field Services business segment reported operating income of $94 million for 2009
compared to $147 million for 2008. Margins 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).
Equity Earnings. In addition, this business segment recorded equity income of $15 million, $8 million and
$10 million for the years ended December 31, 2008, 2009 and 2010, respectively, from its 50% interest in Waskom.
The increase is driven primarily by assets acquired in the first quarter of 2010, higher natural gas liquid prices,
partially offset by lower processing volumes. These amounts are included in Equity in earnings of unconsolidated
affiliates under the Other Income (Expense) caption in the Statements of Consolidated Income.
Other Operations
The following table provides summary data for our Other Operations business segment for 2008, 2009 and 2010
(in millions):
Year Ended December 31,
2008
2009
2010
Revenues ..................................................................................................................................................
$ 11
$ 11
$ 11
Expenses...................................................................................................................................................
–
7
(3)
Operating Income .....................................................................................................................................
$ 11
$ 4
$ 14