Exhibit 99.2
[Logo of Entergy] Entergy
639 Loyola Avenue
New Orleans, LA 70113
Date: July 31, 2001 NEWS
RELEASE
For Immediately
Release:
Contact: Yolanda Pollard (News Media)
(504) 576-4238
ypollar@entergy.com
Nancy Morovich (Investor Relations)
(504) 576-5506
(888) 925-8406 (pager)
nmorovi@entergy.com
Entergy Reports Strong Second Quarter
New Orleans, La. - Entergy Corporation (NYSE:ETR)
today announced that second quarter 2001 consolidated
earnings were up over the same period a year ago,
despite milder weather in 2001. The 2001 increase was
driven by improved results in Entergy's competitive
nuclear and trading businesses, which are not subject
to state and local regulation.
Earnings per share from Entergy's operations,
which include the competitive businesses, set a second
quarter record for the company. On an operational
basis, Entergy's earnings were $238.9 million, or $1.06
per share, in second quarter 2001, when compared with
$223.9 million, or 98 cents per share, in the year-
earlier period. Entergy experienced unusually hot
weather in the second quarter of 2000 which accounted
for 10 cents of the earnings for that period.
"The successful execution of our strategy and
strong performance of our businesses have delivered 13
consecutive quarters of record earnings," said J. Wayne
Leonard, Entergy's chief executive officer. "We've yet
to realize all the upside potential in these
businesses, and we will capture every available
opportunity to create tangible value for our
shareholders. Key achievements of the second quarter
include the following:
- Axia Energy, the trading arm of our Entergy-Koch
venture, made a strong contribution to earnings in its first
full quarter of operations.
- Our competitive nuclear business contributed solid
earnings, in spite of scheduled refueling outages at two of
those plants, and set plant records for quick completion of
those outages with no recordable safety incidents.
- Entergy also set industry records for refueling outages
at two nuclear plants serving our utility business, and the
Nuclear Regulatory Commission approved a 20-year extension
on the license for one of those plants, Unit 1 at Arkansas
Nuclear One.
- The utility continued to improve reliability, with
reliability complaints down 33 percent in second quarter
2001 compared to the same period a year ago. And for the
twelve months ended June this year, average outage frequency
and average outage duration decreased 6 percent and 7
percent, respectively, over the same period in 2000."
Utility Operations
In the second quarter of 2001, as reported and
operational utility earnings were $168.5 million, or 74
cents per share, compared with $178.4 million, or 78
cents per share, for the same period in 2000. There were
no special items included at the utility in either
quarter.
The slight decrease in earnings was due primarily to
milder weather in the second quarter of 2001, compared
with second quarter 2000, when much warmer than normal
weather contributed 10 cents to earnings per share. In
addition, higher fuel prices and sluggish economic
conditions reduced usage and revenues particularly in
the industrial sector. The impact of reduced revenues
was partially offset by lower operation and maintenance
expenses in 2001.
Competitive Non-Regulated Businesses
Earnings per share from Entergy's competitive
businesses increased by 107 percent over those reported
a year ago, when a one-time gain in second quarter 2000
is excluded. On an as reported basis, the competitive
businesses earned $63.3 million, or 29 cents per share,
in second quarter 2001, compared with $44.6 million, or
20 cents per share, earned in the same period of 2000.
Second quarter 2000 earnings included a 6 cents per
share gain recorded at Entergy Wholesale Operations on
the sale of the Freestone project.
Entergy Nuclear earned $33.1 million, or 15 cents
per share, compared to $12.1 million, or 5 cents per
share, in second quarter 2000. The increased earnings
were due primarily to the addition of Indian Point 3
and FitzPatrick nuclear units acquired in late 2000 and
lower operating expenses during second quarter 2001 due
to refueling outages and the timing of other operation
and maintenance expense. The significant increase in
earnings was achieved in spite of scheduled refueling
outages completed during second quarter 2001 at the
Pilgrim Nuclear Station and Indian Point 3 resulting in
each unit being out of service for nearly one-third of
the quarter. These outages were completed in 28 days at
Pilgrim and 26 days at Indian Point 3, which were
record refueling outage times for both units.
Entergy-Koch completed its first full quarter of
operations and contributed $43.5 million, or 20 cents,
to earnings per share. This compares to $5.4 million or
3 cents per share, contributed by Entergy Power
Marketing Corp. in second quarter 2000. Axia Energy,
Entergy-Koch's trading and marketing subsidiary,
contributed the majority of the quarter's earnings.
Entergy Wholesale Operations recorded a loss of
$13.3 million, or 6 cents per share, in second quarter
2001 on an operational basis as compared with earnings
of $13.8 million, or 6 cents per share, in second
quarter 2000. Earnings per share were positively
impacted in 2000 by the receipt of liquidated damages on
the Saltend project in the United Kingdom. The impact of
unfavorable market conditions in the U.K. during second
quarter 2001 was partially offset by a gain of 3 cents
per share on the sale of DeSoto, a development site in
Florida.
Parent & Other
Parent & Other earnings were 3 cents per share in
second quarter 2001, as compared with 6 cents per share
in second quarter 2000. The decrease in second quarter
2001 was due primarily to lower investment income as a
result of a combination of reduced investment balances
and investment yields.
Outlook
"Through the first half of 2001 our financial
results remain very solid, fortified in particular by
the performance of our nuclear and trading businesses,"
said C. John Wilder, Entergy's chief financial officer.
"These businesses have yielded a substantial year-over-
year increase in their operational contribution and the
utility continues to provide strong earnings and cash
flow. We enter the second half of the year highly
confident of our opportunities for the remainder of
2001 and beyond. We are reaffirming our current
guidance for 2001 at $3.00 to $3.20 per share and $3.30
to $3.50 for the year 2002, exclusive of the impact of
weather in both periods."
Entergy Corporation, with annual revenues of more
than $10 billion, is a major global energy company
engaged in power production, distribution operations,
and related diversified services, with more than 13,800
employees. Entergy owns, manages, or invests in power
plants generating more than 30,000 megawatts of
electricity domestically and internationally, and
delivers electricity to about 2.6 million customers in
portions of Arkansas, Louisiana, Mississippi, and
Texas. Through Entergy-Koch, L.P., it is also a leading
provider of wholesale energy marketing and trading
services.
-30-
Entergy's online address is www.entergy.com
The following constitutes a "Safe Harbor" statement under
the Private Securities Litigation Reform Act of 1995:
Investors are cautioned that forward-looking statements
contained herein with respect to the revenues, earnings,
performance, strategies, prospects and other aspects of the
business of Entergy Corporation, Entergy Arkansas, Inc.,
Entergy Gulf States, Inc., Entergy Louisiana, Inc., Entergy
Mississippi, Inc., Entergy New Orleans, Inc., and System
Energy Resources, Inc. and their affiliated companies may
involve risks and uncertainties. A number of factors could
cause actual results or outcomes to differ materially from
those indicated by such forward-looking statements. These
factors include, but are not limited to, risks and
uncertainties relating to: the effects of weather, the
performance of generating units and transmission systems,
the possession of nuclear materials, fuel and purchased
power prices and availability, the effects of regulatory
decisions and changes in law, litigation, capital spending
requirements, the onset of competition, including the
ability to recover net regulatory assets and other potential
stranded costs, the effects of recent developments in the
California electricity market on the utility industry
nationally, advances in technology, changes in accounting
standards, corporate restructuring and changes in capital
structure, the success of new business ventures, changes in
the markets for electricity and other energy-related
commodities, changes in interest rates and in financial and
foreign currency markets generally, the economic climate and
growth in Entergy's service territories, changes in
corporate strategies, and other factors.
ENTERGY CORPORATION
Earnings at a glance
Second Quarter 2001 2000 %
Operating Revenues $2,495.28 $2,137.79 16.7
As Reported Earnings $ 238.91 $ 237.19 0.7
As Reported Earnings per $ 1.06 $ 1.04 1.9
diluted share*
Operational Earnings per $ 1.06 $ 0.98 8.2
diluted share
*Includes Special Items (EPS):
EWO - Gain on sale of $ - $ 0.06
Freestone Project --------- ---------
Total $ - $ 0.06
========= =========
Year to Date 2001 2000 %
Operating Revenues $5,147.70 $3,949.28 30.3
As Reported Earnings $ 393.06 $ 336.05 17.0
As Reported Earnings per $ 1.75 $ 1.45 20.7
diluted share*
Operational Earnings per $ 1.81 $ 1.46 24.0
diluted share
*Includes Special Items (EPS):
Merger expenses $(0.06) -
EWO - Gain on sale of
Freestone Project - $ 0.06
Regulatory & reserve - (0.07)
adjustments
------ ------
Total $(0.06) $(0.01)
====== ======
Note - dollars in millions except per share amounts, which are actual.
Entergy Corporation
Consolidated Income Statement
Three Months Ended June 30
(in thousands)
2001 2000 % Inc/(Dec)
(unaudited)
Operating Revenues:
Domestic electric $1,990,838 $1,664,688 19.6
Natural gas 30,548 28,396 7.6
Competitive businesses 473,890 444,704 6.6
---------- ----------
Total 2,495,276 2,137,788 16.7
---------- ----------
Operating Expenses:
Operation and maintenance:
Fuel, fuel-related expenses,
and gas purchased for resale 1,025,619 464,436 120.8
Purchased power 245,895 502,521 (51.1)
Nuclear refueling outage expenses 23,077 16,629 38.8
Other operation and maintenance 448,610 450,223 (0.4)
Decommissioning 8,903 6,169 44.3
Taxes other than income taxes 89,662 83,540 7.3
Depreciation and amortization 183,372 178,749 2.6
Other regulatory charges (credits) - net 8,389 (5,900) (242.2)
Amortization of rate deferrals 4,699 7,883 (40.4)
---------- ----------
Total 2,038,226 1,704,250 19.6
---------- ----------
Operating Income 457,050 433,538 5.4
---------- ----------
Other Income (Deductions):
Allowance for equity funds used during
construction 6,644 8,041 (17.4)
Gain (loss) on sales of assets - net 11,759 21,057 (44.2)
Equity in earnings of unconsolidated equity affiliates 70,780 - -
Miscellaneous - net 46,527 73,651 (36.8)
---------- ----------
Total 135,710 102,749 32.1
---------- ----------
Interest and Other Charges:
Interest on long-term debt 130,732 118,462 10.4
Other interest - net 51,386 23,369 119.9
Dividends on preferred securities of subsidiaries 4,709 4,709 -
Allowance for borrowed funds used during
construction (5,492) (5,889) (6.7)
---------- ----------
Total 181,335 140,651 28.9
---------- ----------
Income Before Income Taxes 411,425 395,636 4.0
Income Taxes 165,842 149,863 10.7
---------- ----------
Consolidated Net Income 245,583 245,773 (0.1)
Preferred dividend requirements of subsidiaries and other 6,677 8,581 (22.2)
---------- ----------
Earnings Applicable to Common Stock $238,906 $237,192 0.7
========== ==========
Earnings Per Average Common Share:
Basic $1.08 $1.04 3.8
Diluted $1.06 $1.04 1.9
Average Number of Common Shares Outstanding:
Basic 221,113,598 228,097,385
Diluted 225,706,421 228,152,627
Entergy Corporation
Consolidated Income Statement
Six Months Ended June 30
(in thousands)
2001 2000 % Inc/(Dec)
(unaudited)
Operating Revenues:
Domestic electric $3,863,383 $3,017,570 28.0
Natural gas 140,931 74,292 89.7
Competitive businesses 1,143,388 857,418 33.4
---------- ----------
Total 5,147,702 3,949,280 30.3
---------- ----------
Operating Expenses:
Operation and maintenance:
Fuel, fuel-related expenses,
and gas purchased for resale 2,151,481 962,190 123.6
Purchased power 609,774 872,064 (30.1)
Nuclear refueling outage expenses 40,283 35,186 14.5
Other operation and maintenance 919,069 827,634 11.0
Decommissioning 17,804 17,106 4.1
Taxes other than income taxes 192,125 163,158 17.8
Depreciation and amortization 386,448 357,025 8.2
Other regulatory charges (credits) - net 3,546 (20,506) (117.3)
Amortization of rate deferrals 9,153 15,279 (40.1)
---------- ----------
Total 4,329,683 3,229,136 34.1
---------- ----------
Operating Income 818,019 720,144 13.6
---------- ----------
Other Income (Deductions):
Allowance for equity funds used during
construction 11,587 15,735 (26.4)
Gain (loss) on sales of assets - net 12,348 21,574 (42.8)
Equity in earnings of unconsolidated equity affiliates 95,543 - -
Miscellaneous - net 102,220 102,633 (0.4)
---------- ----------
Total 221,698 139,942 58.4
---------- ----------
Interest and Other Charges:
Interest on long-term debt 259,703 232,121 11.9
Other interest - net 99,300 43,652 127.5
Dividends on preferred securities of subsidiaries 9,419 9,419 -
Allowance for borrowed funds used during
construction (9,431) (11,977) (21.3)
---------- ----------
Total 358,991 273,215 31.4
---------- ----------
Income Before Income Taxes 680,726 586,871 16.0
Income Taxes 274,272 232,688 17.9
---------- ----------
Consolidated Net Income 406,454 354,183 14.8
Preferred dividend requirements of subsidiaries and other 13,393 18,131 (26.1)
---------- ----------
Earnings Applicable to Common Stock $393,061 $336,052 17.0
========== ==========
Earnings Per Average Common Share:
Basic $1.78 $1.45 22.8
Diluted $1.75 $1.45 20.7
Average Number of Common Shares Outstanding:
Basic 220,518,674 232,352,915
Diluted 224,749,374 232,382,112
Entergy Corporation
Consolidated Income Statement
Twelve Months Ended June 30
(in thousands)
2001 2000 % Inc/(Dec)
(unaudited)
Operating Revenues:
Domestic electric $8,065,500 $6,437,280 25.3
Natural gas 232,511 124,766 86.4
Steam products - 286 (100.0)
Competitive businesses 2,916,560 2,203,849 32.3
----------- ----------
Total 11,214,571 8,766,181 27.9
----------- ----------
Operating Expenses:
Operation and maintenance:
Fuel, fuel-related expenses,
and gas purchased for resale 3,835,126 2,155,987 77.9
Purchased power 2,400,591 2,263,923 6.0
Nuclear refueling outage expenses 75,609 74,422 1.6
Other operation and maintenance 1,992,748 1,750,073 13.9
Decommissioning 40,182 39,662 1.3
Taxes other than income taxes 399,310 336,320 18.7
Depreciation and amortization 775,549 694,358 11.7
Other regulatory charges (credits) - net 27,733 4,898 466.2
Amortization of rate deferrals 24,265 42,126 (42.4)
----------- ----------
Total 9,571,113 7,361,769 30.0
----------- ----------
Operating Income 1,643,458 1,404,412 17.0
----------- ----------
Other Income (Deductions):
Allowance for equity funds used during
construction 27,873 32,268 (13.6)
Gain (loss) on sales of assets - net (17,192) 32,199 (153.4)
Equity in earnings of unconsolidated equity affiliates 95,545 - -
Miscellaneous - net 172,809 197,040 (12.3)
----------- ----------
Total 279,035 261,507 6.7
----------- ----------
Interest and Other Charges:
Interest on long-term debt 504,654 466,302 8.2
Other interest - net 136,877 80,640 69.7
Dividends on preferred securities of subsidiaries 18,838 18,838 0.0
Allowance for borrowed funds used during
construction (21,567) (24,157) (10.7)
----------- ----------
Total 638,802 541,623 17.9
----------- ----------
Income Before Income Taxes 1,283,691 1,124,296 14.2
Income Taxes 520,505 457,752 13.7
----------- ----------
Consolidated Net Income 763,186 666,544 14.5
Preferred dividend requirements of subsidiaries and other 26,883 39,993 (32.8)
----------- ----------
Earnings Applicable to Common Stock $736,303 $626,551 17.5
=========== ==========
Earnings Per Average Common Share:
Basic $3.34 $2.63 27.0
Diluted $3.28 $2.63 24.7
Average Number of Common Shares Outstanding:
Basic 220,696,148 238,003,322
Diluted 224,508,672 238,343,449
Entergy Corporation
U.S. Utility Electric Energy Sales & Customers
Three Months Ended June
2001 2000 %
(Millions of kwh)
Electric Energy Sales:
Residential 6,733 6,857 (1.8)
Commercial 5,908 5,880 0.5
Governmental 630 635 (0.8)
Industrial 10,710 11,021 (2.8)
------- -------
Total to Ultimate Customers 23,981 24,393 (1.7)
Wholesale 2,182 2,523 (13.5)
------- -------
Total Sales 26,163 26,916 (2.8)
======= =======
Six Months Ended June
2001 2000 %
(Millions of kwh)
Electric Energy Sales:
Residential 14,269 13,369 6.7
Commercial 11,482 11,160 2.9
Governmental 1,245 1,222 1.9
Industrial 21,022 21,638 (2.8)
------- -------
Total to Ultimate Customers 48,018 47,389 1.3
Wholesale 4,631 4,795 (3.4)
------- -------
Total Sales 52,649 52,184 0.9
======= =======
Twelve Months Ended June
2001 2000 %
(Millions of kwh)
Electric Energy Sales:
Residential 32,898 30,733 7.0
Commercial 24,980 24,025 4.0
Governmental 2,627 2,573 2.1
Industrial 43,339 44,145 (1.8)
------- -------
Total to Ultimate Customers 103,844 101,476 2.3
Wholesale 9,835 10,205 (3.6)
------- -------
Total Sales 113,679 111,681 1.8
======= =======
June
2001 2000 %
Electric Customers (Year to date average):
Residential 2,215,321 2,199,803 0.7
Commercial 294,675 287,125 2.6
Governmental 14,614 14,257 2.5
Industrial 39,538 40,477 (2.3)
--------- ---------
Total to Ultimate Customers 2,564,148 2,541,662 0.9
Wholesale 39 40 (2.5)
--------- ---------
Total Customers 2,564,187 2,541,702 0.9
========= =========