CenterPoint Energy 2015 Annual Report Download - page 52

theindexeddebtsecuritiesderivativeliabilityof$18million,areductionintheindexeddebtbalanceof$7millionandalossof$7million.AsofDecember31,
2015,thereferencesharesforeachZENSnoteconsistedof0.5shareofTimeWarnerInc.commonstock(TWCommon),0.125505shareofTimeWarnerCable
Inc.(TWC)commonstock(TWCCommon)and0.0625shareofTimeInc.commonstock(TimeCommon).
Exercise of Put Right. On June 30, 2015, we closed our put right with respect to our remaining interest in Southeast Supply Header, LLC (SESH) and
contributedto Enableour remaining0.1%interest inSESH inexchange for25,341limitedpartnerunits ofEnable.Nocashpaymentwasrequired tobe made
pursuanttotheEnableformationagreementsinconnectionwithourexercise.
Debt Repayments. InJune2015,werepaidour$200million6.85%SeniorNotesusingproceedsfromourcommercialpaperprogram.InOctober2015,we
repaidour$69million4.9%pollutioncontrolbondsusingproceedsfromourcommercialpaperprogram.
Retirement of Bonds. InNovember2015,weretired$740millionoftax-exemptmunicipalbondsthathadbeenheldforremarketing.
Private Placement. OnJanuary28,2016,weenteredintoapurchaseagreementwithEnablepursuanttowhichweagreedtopurchaseinaprivateplacement
(Private Placement) an aggregate of 14,520,000 10% Series A Fixed-to-Floating Non-Cumulative Redeemable Perpetual Preferred Units representing limited
partnerinterestsinEnable(SeriesAPreferredUnits)foracashpurchasepriceof$25.00perSeriesAPreferredUnit.ThePrivatePlacementclosedonFebruary
18,2016.InconnectionwiththePrivatePlacement,Enableredeemedapproximately$363millionofnotesscheduledtomaturein2017payabletoawholly-owned
subsidiaryofCERCCorp.WeusedtheproceedsfromthisredemptionforourinvestmentintheSeriesAPreferredUnits.
Continuum Acquisition. On January 29, 2016, CenterPoint Energy Services (CES), our indirect, wholly-owned subsidiary, announced an agreement to
acquiretheretailcommercialandindustrialbusinessesofContinuumEnergyServices(Continuum),aTulsaandHouston-basedcompany,for$77.5millionplus
workingcapital.Thetransactionisconditioneduponthereceiptofcertainthirdpartyconsentsandapprovals.Weexpectthetransactiontoclosebytheendofthe
firstquarterof2016.
CERTAIN FACTORS AFFECTING FUTURE EARNINGS
Ourpastearningsandresultsofoperationsarenotnecessarilyindicativeofourfutureearningsandresultsofoperations.ThemagnitudeofourandEnable’s
futureearningsandresultsofourandEnable’soperationswilldependonorbeaffectedbynumerousfactorsincluding:
• theperformanceofEnable,theamountofcashdistributionswereceivefromEnable,andthevalueofourinterestinEnable,andfactorsthatmayhavea
materialimpactonsuchperformance,cashdistributionsandvalue,includingfactorssuchas:
◦ competitiveconditionsinthemidstreamindustry,andactionstakenbyEnable’scustomersandcompetitors,includingtheextentandtimingofthe
entryofadditionalcompetitioninthemarketsservedbyEnable;
◦ the timing and extent of changes in the supply of natural gas and associated commodity prices, particularly prices of natural gas and NGLs, the
competitiveeffects oftheavailable pipelinecapacityin theregionsservedbyEnable, andthe effectsofgeographic andseasonalcommodity
pricedifferentials,includingtheeffectsofthesecircumstancesonre-contractingavailablecapacityonEnable’sinterstatepipelines;
◦ thedemandforcrudeoil,naturalgas,NGLsandtransportationandstorageservices;
◦ environmentalandothergovernmentalregulations,includingtheavailabilityofdrillingpermitsandtheregulationofhydraulicfracturing;
◦ recordingofnon-cashgoodwill,long-livedassetorotherthantemporaryimpairmentchargesbyorrelatedtoEnable;
◦ changesintaxstatus;
◦ accesstodebtandgrowthcapital;and
◦theavailabilityandpricesofrawmaterialsandservicesforcurrentandfutureconstructionprojects;
• state and federal legislative and regulatory actions or developments affecting various aspects of our businesses (including the businesses of Enable),
including, among others, energy deregulation or re-regulation, pipeline integrity and safety, health care reform, financial reform, tax legislation and
actionsregardingtherateschargedbyourregulatedbusinesses;
•timelyandappropriaterateactionsthatallowrecoveryofcostsandareasonablereturnoninvestment;
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