Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy) (Tables)

12 Months Ended

Dec. 31, 2021

Summarized Financial Information on Investment in Time Warner Securities and Indexed Debt Security Obligation

CenterPoint Energy’s sales of equity securities during the year ended December 31, 2021 are as follows:


Equity Security/Date Sold	Units Sold	Proceeds (2)
		(in millions)
Energy Transfer Common Units
December 8, 2021 (1)	50,000,000	$	384
December 10, 2021	100,000,000	$	745
Energy Transfer Series G Preferred Units
December 13, 2021	192,390	$	191

(1)Settlement date for a forward sale transaction that CNP Midstream entered into through a Forward Sale Agreement on September 1, 2021 with an investment banking financial institution for 50 million Energy Transfer Common Units CNP Midstream received as consideration in the Enable Merger in exchange for the proceeds of the forward sale transaction.

(2)Proceeds are net of transaction costs.

CenterPoint Energy’s reference shares for each ZENS consisted of the following:


	December 31,
	2021	2020
	(in shares)
AT&T Common	0.7185	0.7185
Charter Common	0.061382	0.061382

The following table sets forth summarized financial information regarding CenterPoint Energy’s investment in ZENS-Related Securities and each component of CenterPoint Energy’s ZENS obligation.


	ZENS-Related Securities		Debt Component of ZENS		Derivative Component of ZENS
	(in millions)
Balance as of December 31, 2018	$	540	$	24	$	601
Accretion of debt component of ZENS	—		17		—
2% interest paid	—		(17)		—

Distribution to ZENS holders	—		(5)		—

Loss on indexed debt securities	—		—		292
Gain on ZENS-Related Securities	282		—		—
Balance as of December 31, 2019	822		19		893
Accretion of debt component of ZENS	—		17		—
2% interest paid	—		(16)		—

Distribution to ZENS holders	—		(5)		—

Loss on indexed debt securities	—		—		60
Gain on ZENS-Related Securities	49		—		—
Balance as of December 31, 2020	871		15		953

Accretion of debt component of ZENS	—		17		—
2% interest paid	—		(17)		—

Distribution to ZENS holders	—		(5)		—

Gain on indexed debt securities	—		—		(50)
Loss on ZENS-Related Securities	(51)		—		—
Balance as of December 31, 2021	$	820	$	10	$	903

Gain (Loss) on Securities

Gains and losses on equity securities, net of transaction costs, are recorded as Gain (Loss) on Equity Securities in CenterPoint Energy’s Statements of Consolidated Income.


	Gains (Losses) on Equity Securities
	Year Ended December 31,
	2021		2020		2019
			(in millions)
AT&T Common	$	(43)	$	(105)	$	108
Charter Common	(8)		154		174
Energy Transfer Common Units	(124)		—		—
Energy Transfer Series G Preferred Units	2		—		—
Other	1		—		—
	$	(172)	$	49	$	282

Debt Securities, Trading, and Equity Securities, FV-NI

CenterPoint Energy and its subsidiaries hold shares of certain securities detailed in the table below, which are classified as trading securities. Shares of AT&T Common and Charter Common are expected to be held to facilitate CenterPoint Energy’s ability to meet its obligation under the ZENS.


	Shares Held at December 31,		Carrying Value at December 31,
	2021	2020	2021		2020
			(in millions)
AT&T Common	10,212,945	10,212,945	$	251	$	294
Charter Common	872,503	872,503	569		577
Energy Transfer Common Units	50,999,768	—	420		—
Energy Transfer Series G Preferred Units	192,390	—	196		—
Other			3		—
			$	1,439	$	871