Entergy Provides Preliminary Fourth Quarter Earnings Guidance

Wed Jan 23, 2013 7:00am EST

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NEW ORLEANS,  Jan. 23, 2013  /PRNewswire/ -- Entergy Corporation (NYSE: ETR)
today indicated that it expects fourth quarter 2012 as-reported earnings of
approximately  $1.65  per share and operational earnings of approximately  $1.71
 per share. Results for fourth quarter 2011 were  $0.87  per share on an
as-reported basis and  $0.94  per share on an operational basis. Entergy also
affirmed previously issued operational earnings guidance for 2013.

(Logo:  http://photos.prnewswire.com/prnh/20120913/MM74349LOGO)  

As-reported results are prepared in accordance with generally accepted
accounting principles (GAAP) and are comprised of operational earnings
(described below) and special items. The special items in the fourth quarter of
2011 and 2012 were due to expenses arising out of the proposed spin-off and
merger of Entergy's electric transmission business with ITC Holdings Corp.

The increase in fourth quarter 2012 earnings was driven by higher results at
Utility and Parent & Other, which was partially offset by lower earnings at
Entergy Wholesale Commodities. As indicated below, income tax is cited as a
quarter-over-quarter variance explanation in each of the disclosure segments. On
an overall company basis, the most significant item quarter-over-quarter was a
settlement with the Internal Revenue Service completed at the end of 2012. In
conjunction with the terms of the IRS settlement of the 2004 - 2005 audit, a net
earnings benefit of approximately  $155 million  was recorded in the fourth
quarter of 2012.  

Results in both the current and prior year periods reflected adjustments within
the EWC and Parent & Other segments to improve the alignment of certain
intercompany items and income tax activity. These adjustments had no effect on
consolidated results.

Utility

The increase in Utility fourth quarter 2012 operational earnings reflected lower
income tax expense, including the effect of the IRS settlement noted above.
Higher net revenue also contributed to the Utility earnings improvement, driven
by volume and price. Both periods had roughly similar negative weather effects.
On a weather-adjusted basis, retail sales were higher, driven by growth in the
residential and commercial segments. Partially offsetting these items was an
increase in depreciation expense.

Entergy Wholesale Commodities

The quarter-over-quarter decrease in earnings at Entergy Wholesale Commodities
was due to lower net revenue and increases in income tax and decommissioning
expenses. EWC net revenue declined due to lower pricing for the nuclear fleet.
Higher decommissioning expense was incurred this quarter versus the prior year
due to the benefit from an adjustment to the decommissioning liability recorded
in the fourth quarter of 2011 (associated with an updated decommissioning
study).

Parent & Other

At Parent & Other, operational results improved during the quarter due to a
decrease in income tax expense on Parent & Other activities that was partially
offset by higher interest expense.

Earnings Guidance

Entergy affirmed its previously issued 2013 operational earnings guidance to be
in the range of  $4.60 to $5.40  per share. Entergy noted it currently expects
to be in the lower half of the operational guidance range due to updated pension
and post-retirement cost estimates, which included an approximate 75 basis point
decrease in the discount rate assumption. As-reported earnings guidance for 2013
does not reflect potential future expenses for the proposed spin-merge of the
transmission business with ITC. The as-reported guidance range will be updated
throughout the year as these transaction-related expenses are incurred.

Entergy will report fourth quarter earnings results before the market opens on 
Friday, Feb. 8, 2013, and host a teleconference at  10 a.m. CT  that day to
discuss the earnings announcement. The teleconference may be accessed by dialing
(719) 457-2080, confirmation code 6847131, no more than 15 minutes prior to the
start of the call. The call and presentation slides can also be accessed via
Entergy's website at  www.entergy.com. A replay of the teleconference will be
available for seven days thereafter by dialing (719) 457-0820, confirmation code
6847131.

Entergy Corporation, which celebrates its 100th birthday this year, is an
integrated energy company engaged primarily in electric power production and
retail distribution operations. Entergy owns and operates power plants with
approximately 30,000 megawatts of electric generating capacity, including more
than 10,000 megawatts of nuclear power, making it one of the nation's leading
nuclear generators. Entergy delivers electricity to 2.8 million utility
customers in  Arkansas,  Louisiana,  Mississippi  and  Texas. Entergy has annual
revenues of more than  $11 billion  and approximately 15,000 employees.

Additional investor information can be accessed online at  
www.entergy.com/investor_relations

In this news release, and from time to time, Entergy makes certain
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Except to the extent required by the federal
securities laws, Entergy undertakes no obligation to publicly update or revise
any forward-looking statements, whether as a result of new information, future
events, or otherwise.

Forward-looking statements involve a number of risks and uncertainties. There
are factors that could cause actual results to differ materially from those
expressed or implied in the forward-looking statements, including (a) those
factors discussed in: (i) Entergy's Form 10-K for the year ended  December 31,
2011, (ii)  Entergy's Form 10-Q for the quarters ended  March 31, 2012,  June
30, 2012  and  September 30, 2012  and (iii) Entergy's other reports and filings
made under the Securities Exchange Act of 1934; (b) uncertainties associated
with rate proceedings, formula rate plans and other cost recovery mechanisms;
(c) uncertainties associated with efforts to remediate the effects of major
storms and recover related restoration costs; (d) nuclear plant relicensing,
operating and regulatory risks, including any changes resulting from the nuclear
crisis in Japan following its catastrophic earthquake and tsunami; (e)
legislative and regulatory actions and risks and uncertainties associated with
claims or litigation by or against Entergy and its subsidiaries; (f) conditions
in commodity and capital markets during the periods covered by the
forward-looking statements, in addition to other factors described elsewhere in
this release and subsequent securities filings and (g) risks inherent in the
proposed spin-off and subsequent merger of Entergy's electric transmission
business with a subsidiary of ITC Holdings Corp. Entergy cannot provide any
assurances that the spin-off and merger transaction will be completed and cannot
give any assurance as to the terms on which such transaction will be
consummated. The spin-off and merger transaction is subject to certain
conditions precedent, including regulatory approvals and approval by ITC
Holdings Corp. shareholders.  

SOURCE  Entergy Corporation


Michael Burns, (Media), +1-504-576-4238, mburns@entergy.com, or Paula Waters,
(Investor Relations), +1-504-576-4380, pwater1@entergy.com

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