Exhibit 99.1
For further information:
Nancy Morovich, VP, Investor Relations
Phone 504/576-5506, Fax 504/576-2897
INVESTOR NEWS nmorovi@entergy.com
June 14, 2002
ENTERGY AFFIRMS 2002 EARNINGS GUIDANCE;
ANNOUNCES 2003 EARNINGS GUIDANCE OF $3.75-$3.95
NEW ORLEANS - Entergy Corporation announced today that it expects
2003 operational earnings in the range of $3.75 to $3.95 per share.
Entergy also affirmed that it expects 2002 operational earnings per
share to be in the range of $3.40 to $3.60 consistent with its first
quarter 2002 earnings release. The company's guidance on 2003 earnings
represents 10 percent growth over the midpoint of 2002 guidance, and
is at the high end of Entergy's long-term commitment of 8 to 10
percent average annual earnings growth.
"The guidance reflects continued strength at our core utility business
as well as double-digit growth in the unregulated businesses," said C.
John Wilder, Entergy's chief financial officer. "Despite challenges in
the economic environment, we expect to maintain solid earnings growth
through 2003. Our current estimate for 2003 operational earnings
guidance reflects 10 percent growth over 2002 and about 15 percent
growth since 1998. Our plan calls for achieving this growth while
maintaining our commitment to financial strength."
Entergy's 2003 earnings guidance is detailed in Table 1 included
herein, and uses the company's current estimate for 2002 operational
earnings as its base. Key assumptions reflected in the 2003 earnings
ranges estimated in the table are as follows:
- - Entergy expects approximately 70 percent of 2003 earnings to
continue to come from the regulated utility business. Earnings
guidance is based on existing rate plans and fuel recovery mechanisms.
The incremental increase expected in 2003 is the result of normal
economic growth with an associated one percent incremental impact on
demand, the elimination of the transition to competition account in
Entergy Arkansas, and modest rate increases at Entergy Mississippi and
Entergy New Orleans.
- - Entergy Nuclear is expected to contribute more than 20 percent of
earnings. With a recent contract on the output of the Pilgrim plant,
100 percent of all megawatt hours to be generated by Entergy Nuclear's
assets in 2003 are sold under unit-contingent power purchase
agreements at prices ranging from $29.93 to $42.00 per megawatt-hour.
The increase in nuclear earnings is expected to be provided by: a full-
year's contribution at Vermont Yankee, operating cost improvements
across the fleet, offset by increased outage amortization expense. The
capacity factor assumption for the overall fleet is 93 to 95 percent,
and spring 2003 refueling outages are assumed at Indian Point 3 and
Pilgrim.
- - Energy Commodity Services' guidance is based on a full year's
contribution from Entergy-Koch at a 50 percent sharing of income,
consistent with Entergy's ownership share, with modest improvements in
both trading and gas transportation businesses. Guidance reflects the
impact of restructuring at Entergy Wholesale Operations announced
earlier in the year. The restructured unit, Entergy Asset Management,
will be an operator of approximately 1,800 MW of non-nuclear capacity,
including the addition of the Harrison County plant due to begin
operations in second quarter 2003, as well as a full year of
operations at the Riverside (RS Cogen) and Crete facilities.
- - Parent & Other's guidance improves through lower net interest
expense, due to increased levels of investment balances, and the
implementation of Entergy's retail business in Texas.
- -------------------------------------------------------------------------------
Table 1: 2003 Earnings Per Share Guidance
- -------------------------------------------------------------------------------
(Per share in U.S. $)
2002 2003
Guidance Range Changes in 2003 Guidance Range
Range of
Impact
Utility including Rate base increase 0.05
weather
Normal sales growth 0.10
-----
2.50 2.55 Total 0.15 2.65 2.70
Entergy Nuclear Increased production 0.09
including the effect
of a full year of
Vermont Yankee
operations
Lower PPA price (0.04)
Increased outage (0.08)
amortization expense
Lower production cost / 0.08
Other
-----
0.80 0.85 Total 0.05 0.85 0.90
Energy Commodity
Services Commodity trading growth 0.02
Pipeline growth 0.01
Reduced overhead / EAM 0.07
restructuring
-----
0.25 0.30 Total 0.10 0.35 0.40
Parent & Other Net interestincome / 0.03
(expense)
Reduced corporate expense / 0.02
Retail earnings / Other
-----
(0.15) (0.10) Total 0.05 (0.10) (0.05)
- ------------------------------------------------------------------------------
Total 3.40 3.60 0.35 3.75 3.95
- ------------------------------------------------------------------------------
Entergy's common stock is listed on the New York, Chicago, and Pacific
exchanges under the symbol "ETR".
Additional investor information can be accessed on-line at
www.entergy.com/earnings
Webcast Details
Entergy will host an analyst conference beginning at 7:30 a.m. CDST,
Friday, June 14, 2002. The event can be accessed via Entergy's web
site at www.entergy.com/webcasts. A replay will also be available
following the event.
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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 or its 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, and the availability of capital, the onset of
competition, 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, including the use of financial and
derivative instruments and volatility of changes in market prices,
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, actions of
rating agencies, and other factors.