10-QPeriod: Q3 FY2009

ENTERGY CORP /DE/ Quarterly Report for Q3 Ended Sep 30, 2009

Filed November 6, 2009For Securities:ETR

Summary

Entergy Corporation, in its filing for the third quarter of 2009, demonstrated a mixed financial performance across its various subsidiaries. While Entergy Arkansas saw an increase in net income year-over-year for the third quarter, it experienced a decrease for the nine-month period, primarily due to higher operating expenses and interest costs, despite an increase in net revenue. Other subsidiaries, like Entergy Gulf States Louisiana and Entergy Louisiana, reported decreases in net income for both periods, largely driven by lower net revenues and higher operating expenses, including storm restoration costs from earlier hurricanes. In terms of operational highlights, Entergy Texas successfully navigated the recovery from Hurricane Ike, with securitization of storm costs and a significant insurance settlement. System Energy Resources, primarily focused on the Grand Gulf nuclear plant, showed relatively stable net income. The company's disclosures emphasized ongoing efforts in regulatory filings, capital investments, and management of environmental compliance, with no material changes in internal controls reported. Overall, the quarter presented a complex operational and financial landscape, with varying impacts from regulatory changes, weather events, and cost management strategies across the Entergy system.

Financial Statements
Beta
Operating Expenses$2.14B
Operating Income$800.30M
Interest Expense$130.13M
Net Income$460.17M
EPS (Basic)$1.18
EPS (Diluted)$1.16
Shares Outstanding (Basic)386.85M
Shares Outstanding (Diluted)391.75M

Key Highlights

  • 1Entergy Arkansas reported an increase in net income for Q3 2009 compared to Q3 2008, primarily due to higher net revenue, partially offset by increased operating and outage expenses.
  • 2Entergy Gulf States Louisiana and Entergy Louisiana experienced a decrease in net income for both the three and nine months ended September 30, 2009, compared to the prior year, attributed to lower net revenue and higher operating costs.
  • 3Entergy Texas successfully securitized $545.9 million in storm restoration costs related to Hurricane Ike and received $75.5 million in insurance proceeds.
  • 4System Energy Resources' net income remained relatively flat for the third quarter, with a slight increase for the nine-month period, reflecting stable operations related to its ownership interest in the Grand Gulf nuclear plant.
  • 5The company's various subsidiaries are actively engaged in regulatory proceedings, including rate case filings and the pursuit of cost recovery mechanisms for storm restoration and capital investments.
  • 6No changes that materially affected, or were reasonably likely to materially affect, internal control over financial reporting were identified during the quarter.
  • 7Entergy Corporation completed its $1.5 billion and $500 million share repurchase programs during the quarter, and authorized an additional $750 million program.

Frequently Asked Questions

Entergy Arkansas' net income increased primarily due to higher net revenue, which was partially offset by higher depreciation and amortization expenses, higher other operation and maintenance expenses, and higher nuclear refueling outage expenses.

Entergy Texas managed the financial impact of Hurricane Ike through the securitization of $545.9 million in storm restoration costs via senior secured transition bonds and received $75.5 million in insurance proceeds. These actions are expected to reduce the company's debt.

Entergy Arkansas filed for a general change in rates requesting a $223.2 million base rate increase. Entergy New Orleans settled its rate case, resulting in a net reduction in electric revenue requirement and a new three-year formula rate plan. Entergy Texas received PUCT approval for the securitization of Hurricane Ike storm costs and filed for a refund of fuel cost recovery over-collections.

No, Entergy management, including the CEOs and CFOs of its subsidiaries, evaluated changes in internal control over financial reporting and concluded that there were no such changes that materially affected, or were reasonably likely to materially affect, internal control over financial reporting.