CenterPoint Energy 2011 Annual Report Download - page 17

Adding capacity to meet prolific growth while achieving record income
Completing projects on time and on budget
Field services continued to see volume growth and return on investments made in the
Fayetteville and Haynesville shales. For the year, operating income was $189 million,
compared to $151 million in 2010. Equity income from our 50 percent interest in a gathering
and processing joint venture was $9 million, compared to $10 million the previous year.
Our recent contracts that provide minimum throughput commitments and/or rate of return
guarantees will stabilize revenues and mitigate the impact of production volume reductions
due to declining natural gas prices. In 2011, our margins grew by nearly 30 percent, primarily
as a result of our extensive projects in the Haynesville and Fayetteville shales.
By year’s end, our total throughput was 2.6 billion cubic feet (Bcf) per day, an increase of nearly
30 percent over 2010. To accommodate that growth, we added nearly 100 miles of pipeline to
our gas gathering systems, which now total nearly 3,900 miles. This provides our customers
even greater reliability and operating flexibility.
We continued our ongoing capital investment in future growth opportunities, though at lower
levels than in past years. At our Magnolia gathering system, which serves the Haynesville
Shale, we placed into service an expansion project that added 200 million cubic feet per day
(MMcfd). This brings our total Magnolia and Olympia contracted capacity to 1.5 Bcf per day.
Though a number of large projects are now substantially complete, we have smaller projects
planned, such as expansions of our Elm Grove, Red Oak and Spiro facilities. We are also
exploring additional opportunities in and around our footprint.
We see some new revenue potential as well as opportunities to increase profitability through
enhanced automation and improved operating efficiencies. We are testing new processes at
our amine facilities that allow the system to remain in service during plant maintenance, which
reduces downtime for customers and the cost of operations. Other upgraded technology
applications will give us more timely and actionable information, which will provide us with
greater daily optimization opportunities.
CenterPoint Energy employees work
around the clock at our Clear Lake
compressor station in the Haynesville
Shale. We will continue to capitalize
on our competitive position for shale
opportunities.
Pursuing Opportunities
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Field Services