10-KPeriod: FY2009

ENTERGY CORP /DE/ Annual Report, Year Ended Dec 31, 2009

Filed February 26, 2010For Securities:ETR

Summary

Entergy Corporation (ETR) reported its 2009 annual results, highlighting a strategic plan to spin off its Non-Utility Nuclear business into a new publicly traded company, Enexus Energy Corporation. This separation aims to streamline Entergy's operations, focusing primarily on its Utility segment, which serves over 2.7 million electric customers across Arkansas, Louisiana, Mississippi, and Texas. The company also noted significant capital expenditure plans for 2010-2012, including investments in generation and transmission infrastructure to support its portfolio transformation strategy and comply with environmental regulations. Despite facing economic headwinds affecting industrial customer usage, Entergy's Utility segment demonstrated resilience, supported by rate increases and storm cost recovery mechanisms. The Non-Utility Nuclear segment's performance was impacted by higher refueling outage days in 2009 compared to 2008, leading to a slight decrease in net revenue. The company also detailed its ongoing efforts to navigate regulatory proceedings related to the spin-off across multiple states, with particular attention on developments in Vermont and New York. Entergy's financial position remained stable, with a net debt to net capital ratio of 53.5% as of December 31, 2009, and a $3.5 billion revolving credit facility providing ample liquidity.

Financial Highlights

49 data points
Beta

Revenue

$10.75B

Net Income

$1.25B

11.6% Net Margin

EPS (Diluted)

$3.15

Total Assets

$37.56B

Cash & Equivalents

$1.71B

Free Cash Flow

$2.93B

Financial Statements
Beta
Revenue$10.75B
Operating Expenses$8.46B
Operating Income$2.28B
Interest Expense$603.68M
Net Income$1.25B
EPS (Basic)$3.19
EPS (Diluted)$3.15
Shares Outstanding (Basic)385.54M
Shares Outstanding (Diluted)391.68M

Key Highlights

  • 1Entergy plans to spin off its Non-Utility Nuclear business into a new entity, Enexus Energy Corporation.
  • 2The Utility segment, serving 2.7 million customers across four states, remains Entergy's primary focus.
  • 3Capital expenditures for 2010-2012 are projected to support generation, transmission, and environmental compliance.
  • 4The company is navigating complex regulatory proceedings for the Non-Utility Nuclear spin-off in multiple states.
  • 5Entergy ended 2009 with $1.71 billion in cash and cash equivalents.
  • 6The company's consolidated net income for 2009 was $1.25 billion, a slight increase from $1.24 billion in 2008.

Frequently Asked Questions

Entergy's main strategic initiative is the planned tax-free spin-off of its Non-Utility Nuclear business into a new, separate, publicly-traded company named Enexus Energy Corporation. This move aims to allow Entergy to focus primarily on its Utility business.

The Utility segment demonstrated resilience despite economic challenges. While industrial customer usage decreased, this was partially offset by rate increases and the recovery of storm costs. The segment's net revenue increased slightly, and it contributed significantly to the company's overall financial performance.

Entergy plans significant capital investments for 2010 through 2012, totaling over $6 billion. These expenditures are allocated across maintenance capital and capital commitments, focusing on modernizing its generation portfolio, transmission improvements, and environmental compliance, such as installing scrubbers at the White Bluff coal plant.

Entergy faces significant regulatory hurdles for the spin-off across multiple states. Key challenges include obtaining necessary approvals, addressing concerns about the amount of debt to be incurred by Enexus, potential impacts on ratepayers, and specific issues raised by regulators in Vermont (tritium levels, piping issues) and New York (excessive debt leverage, financial stability).

As of December 31, 2009, Entergy Corporation had $1.71 billion in cash and cash equivalents. The company maintained a consolidated debt-to-capital ratio of 57.3% and had $906 million in available capacity under its $3.5 billion revolving credit facility, indicating a stable liquidity position.