[Letterhead of Entergy Corporation]
Exhibit 99.4
NEWS RELEASE
Date: July 26, 2000
For Release: Immediate
Contact: Yolanda Pollard (News Media)
504-576-4190
[email protected]
Renae Conley (Investor Relations)
504-576-4947
[email protected]
ENTERGY REPORTS RECORD SECOND QUARTER EARNINGS
New Orleans - Entergy Corporation (NYSE:ETR) today
reported record second quarter 2000 consolidated earnings
that were 28 percent higher than earnings in same period of
1999. Earnings per share from operations also set a second
quarter record for the global energy company - following a
record first quarter - and were up 36 percent over
operational earnings in the second quarter of 1999.
Entergy's second quarter 2000 earnings were $237.2
million, or $1.04 per share, compared with earnings of
$199.8 million, or 81 cents per share, in second quarter
1999. On an operational basis, Entergy's earnings were
$223.8 million, or 98 cents per share, in second quarter
2000, compared with $177.2 million, or 72 cents per share,
in the year-earlier period. Both Entergy's regulated
utility and its competitive businesses contributed to higher
earnings. Hotter-than-normal weather, which boosted sales
of electricity in both 1999 and 2000, accounted for 2 cents
of the increase.
"With two consecutive record-setting quarters, we are
well on our way to a year of outstanding execution and
earnings," said J. Wayne Leonard, Entergy's chief executive
officer. "The core utility business continues to contribute
solid earnings, while the competitive businesses are
producing strong earnings growth. In the second quarter, we
laid the groundwork for sustained earnings growth from our
competitive businesses. Key events announced in the second
quarter included an energy commodity venture with Koch
Industries, a joint venture with The Shaw Group to construct
electric power plants, and a memorandum of understanding
with Framatome Technologies to assist U.S. nuclear plant
operators in securing renewal of their operating licenses."
Utility Operations
For second quarter 2000, U.S. utility operations
reported earnings of $178.4 million, or 78 cents per share,
compared with $164.9 million, or 67 cents per share, in
second quarter 1999. Hot weather had a slightly more
favorable impact on earnings in second quarter 2000,
contributing 10 cents per share, compared with 8 cents in
the second quarter of 1999. Other factors in the increase
in earnings per share were sales growth and the impact of
Entergy's share repurchase program, which reduced the total
number of shares outstanding between the 1999 and 2000
periods. These factors were partially offset by increased
operating and maintenance expense in generating plants and
distribution facilities where the company took steps to
enhance reliability in preparation for peak summer demand.
For the second quarter of 2000, total retail sales were
24.4 million kilowatt hours (kWh), compared with 24.0
million kWh for the same period in 1999.
"Entergy employees are providing better service every
day to our customers," added Leonard. "In the second
quarter, we achieved continued improvement in reliability
demonstrating how our commitment to add more people on the
front lines and to upgrade the electric and gas delivery
systems is now paying off for customers. We expanded the
capacity and output of our generating plants to help ensure
that we can meet the demands of our customers during the
summer heat. And we continued on track to achieve the
safest year ever in terms of lost-time accidents."
Competitive Businesses
In second quarter 2000, Entergy's competitive
businesses earned $44.6 million, or 20 cents per share,
before adjusting for the effect of special items.
Operational earnings for the quarter totaled $31.3 million,
or 14 cents per share, compared with $22.4 million, or 9
cents per share, in second quarter 1999. This increase was
driven by two factors that were not present in the second
quarter of 1999. First, the Pilgrim Nuclear Station in
Plymouth, Massachusetts - which was acquired in July 1999 -
had an excellent operating quarter. Second, Entergy
received $52 million in liquidated damages from Raytheon,
the construction contractor on the Saltend project, as a
result of the construction delay at the Saltend generating
plant, which Entergy Wholesale Operations (EWO) is
developing in the United Kingdom. Of this amount, $32
million was recorded as a contribution to earnings as if the
plant had been operating on its original completion schedule
of January 2000.
The only special item reflected in second quarter
results this quarter is associated with the competitive
businesses, where Entergy recorded a gain of 6 cents per
share on the sale of the Freestone generating plant that EWO
was developing in Texas.
Year-over-year improvement in both operational and as-
reported earnings per share for the quarter reflects the
fact that Entergy has fewer shares outstanding this year as
a result of the share repurchase program initiated in July
1999.
Share Repurchase Program
During second quarter 2000, 8.8 million shares were
repurchased under Entergy's share repurchase program at a
total cost of $233 million. Since the program was
initiated, through June 30, 2000, $618 million of the $750
million authorized by the Board has been used to repurchase
24.1 million shares of Entergy common stock. The program is
expected to continue until the Board-authorized amount is
fully spent. The specific timing of the completion of the
program will depend on market conditions.
Outlook
"Financial results were very strong in the second
quarter," said C. John Wilder, Entergy's chief financial
officer. "Solid performance at the utility drove earnings
growth well beyond the impact of favorable weather, while
the competitive businesses contributed over 14 % percent of
total operational earnings. Based on the strong first half
of the year, we have increased our 2000 earnings target to
$2.55 to $2.65 per share up from $2.35 to $2.45 - an 8 %
percent increase, and 18 to 22 % percent above 1999
operational results." Wilder added, "We are confident that
2000 will be a record year in meeting our operational and
financial objectives, and that it will provide a solid
foundation for continued earnings growth, consistent with
our long-term guidance of 8 to 10 percent."
Entergy is a major global energy company with power
production, distribution operations and related diversified
services. Entergy owns, manages, or invests in power plants
generating nearly 30,000 megawatts of electricity
domestically and internationally, and delivers electricity
to about 2.5 million customers in portions of Arkansas,
Louisiana, Mississippi and Texas. It is also a leading
provider of wholesale energy marketing and trading services.
-30-
Entergy Corporation's on-line address is http://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 in the foregoing release with respect to the
revenues, earnings, performance, strategies, prospects and
other aspects of the business of Entergy Corporation 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 prices and
availability, the effects of regulatory decisions and
changes in law, litigation, capital spending requirements,
the onset of competition, advances in technology, changes in
accounting standards, corporate restructuring and changes in
capital structure, movements in the markets for electricity
and other energy-related commodities, changes in interest
rates and in financial and foreign currency markets
generally, changes in corporate strategies, and other
factors.
<PAGE>
ENTERGY CORPORATION
Earnings at a glance
Second Quarter 2000 1999 %
Operating Revenues $2,137.79 $2,316.40 (7.7)
Earnings $237.19 $199.78 18.7
Earnings per share* $1.04 $0.81 28.4
*Includes Special Items (EPS) :
Gain on sale of Freestone Project $ 0.06 -
Change in unbilled revenue estimate - 0.13
SERI refund adjustments - (0.08)
Regulatory & reserve adjustments - (0.06)
Foreign tax benefits - 0.07
Gain on sale of Hyperion - 0.03
------ -----
Total $ 0.06 $0.09
------ -----
Year to Date 2000 1999 %
Operating Revenues $3,949.28 $3,956.33 (0.02)
Earnings $336.05 $261.96 28.3
Earnings per share* $1.45 $1.06 36.8
*Includes Special Items (EPS) :
Gain on sale of Freestone Project $ 0.06 -
Change in unbilled revenue estimate - $ 0.13
SERI refund adjustments - (0.08)
Regulatory & reserve adjustments (0.07) (0.06)
Foreign tax benefits - 0.10
Gain on sale of Hyperion - 0.03
CitiPower purchase price adjustment - 0.02
EPG write-off of start-up costs per new
accounting standard - (0.01)
------ -----
Total $(0.01) $0.13
------ -----
Note - dollars in millions except per share amounts, which are actual.
<PAGE>
<TABLE>
<CAPTION>
Entergy Corporation
Consolidated Income Statement
Three Months Ended June 30
(in thousands)
2000 1999 % Inc/(Dec)
(unaudited)
<S> <C> <C> <C>
Operating Revenues:
Domestic electric $1,664,688 $1,613,136 3.2
Natural gas 28,396 22,149 28.2
Steam products - 7,254 -
Competitive businesses 444,704 673,865 (34.0)
---------- ----------
Total 2,137,788 2,316,404 (7.7)
---------- ----------
Operating Expenses:
Operation and maintenance:
Fuel, fuel-related expenses,
and gas purchased for resale 464,436 490,871 (5.4)
Purchased power 502,521 676,827 (25.8)
Nuclear refueling outage expenses 16,629 17,135 (3.0)
Other operation and maintenance 450,223 410,707 9.6
Decommissioning 6,169 10,758 (42.7)
Taxes other than income taxes 83,540 83,053 0.6
Depreciation and amortization 178,749 176,707 1.2
Other regulatory charges (credits) - net (5,900) (2,372) 148.7
Amortization of rate deferrals 7,883 88,767 (91.1)
---------- ----------
Total 1,704,250 1,952,453 (12.7)
---------- ----------
Operating Income 433,538 363,951 19.1
---------- ----------
Other Income (Deductions):
Allowance for equity funds used during
construction 8,041 7,348 9.4
Gain on sales of assets - net 21,057 40,718 (48.3)
Miscellaneous - net 73,651 40,064 83.8
---------- ----------
Total 102,749 88,130 16.6
---------- ----------
Interest and Other Charges:
Interest on long-term debt 118,462 120,164 (1.4)
Other interest - net 23,369 36,942 (36.7)
Dividends on preferred securities of subsidiaries 4,709 4,710 -
Allowance for borrowed funds used during
construction (5,889) (5,926) (0.6)
---------- ----------
Total 140,651 155,890 (9.8)
---------- ----------
Income Before Income Taxes 395,636 296,191 33.6
Income Taxes 149,863 86,433 73.4
---------- ----------
Consolidated Net Income 245,773 209,758 17.2
Preferred dividend requirements of subsidiaries and other 8,581 9,981 (14.0)
---------- ----------
Earnings Applicable to Common Stock $237,192 $199,777 18.7
========== ==========
Earnings Per Average Common Share $1.04 $0.81 28.4
Average Number of Common Shares Outstanding 228,097,385 246,795,710
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Entergy Corporation
Consolidated Income Statement
Six Months Ended June 30
(in thousands)
2000 1999 % Inc/(Dec)
(unaudited)
<S> <C> <C> <C>
Operating Revenues:
Domestic electric $3,017,570 $2,851,719 5.8
Natural gas 74,292 59,880 24.1
Steam products - 15,550 (100.0)
Competitive businesses 857,418 1,029,177 (16.7)
---------- ----------
Total 3,949,280 3,956,326 (0.2)
---------- ----------
Operating Expenses:
Operation and maintenance:
Fuel, fuel-related expenses,
and gas purchased for resale 962,190 893,844 7.6
Purchased power 872,064 1,050,626 (17.0)
Nuclear refueling outage expenses 35,186 36,820 (4.4)
Other operation and maintenance 827,634 778,338 6.3
Decommissioning 17,106 23,432 (27.0)
Taxes other than income taxes 163,158 166,121 (1.8)
Depreciation and amortization 357,025 361,549 (1.3)
Other regulatory charges (credits) - net (20,506) (18,970) 8.1
Amortization of rate deferrals 15,279 97,180 (84.3)
---------- ----------
Total 3,229,136 3,388,940 (4.7)
---------- ----------
Operating Income 720,144 567,386 26.9
---------- ----------
Other Income (Deductions):
Allowance for equity funds used during
construction 15,735 12,759 23.3
Gain on sales of assets - net 21,574 61,301 (64.8)
Miscellaneous - net 102,633 60,016 71.0
---------- ----------
Total 139,942 134,076 4.4
---------- ----------
Interest and Other Charges:
Interest on long-term debt 232,121 242,695 (4.4)
Other interest - net 43,652 45,483 (4.0)
Dividends on preferred securities of subsidiaries 9,419 9,419 0.0
Allowance for borrowed funds used during
construction (11,977) (10,405) 15.1
---------- ----------
Total 273,215 287,192 (4.9)
---------- ----------
Income Before Income Taxes 586,871 414,270 41.7
Income Taxes 232,688 131,606 76.8
---------- ----------
Consolidated Net Income 354,183 282,664 25.3
Preferred dividend requirements of subsidiaries and other 18,131 20,706 (12.4)
---------- ----------
Earnings Applicable to Common Stock $336,052 $261,958 28.3
========== ==========
Earnings Per Average Common Share $1.45 $1.06 36.8
Average Number of Common Shares Outstanding 232,352,915 246,688,052
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Entergy Corporation
Consolidated Income Statement
Twelve Months Ended June 30
(in thousands)
2000 1999 % Inc/(Dec)
(unaudited)
<S> <C> <C> <C>
Operating Revenues:
Domestic electric $6,437,280 $6,165,632 4.4
Natural gas 124,766 100,622 24.0
Steam products 286 38,192 (99.3)
Competitive businesses 2,203,849 4,324,746 (49.0)
---------- ----------
Total 8,766,181 10,629,192 (17.5)
---------- ----------
Operating Expenses:
Operation and maintenance:
Fuel, fuel-related expenses,
and gas purchased for resale 2,155,987 1,923,055 12.1
Purchased power 2,263,923 4,049,132 (44.1)
Nuclear refueling outage expenses 74,422 77,016 (3.4)
Other operation and maintenance 1,750,073 1,772,185 (1.2)
Decommissioning 39,662 46,233 (14.2)
Taxes other than income taxes 336,320 342,162 (1.7)
Depreciation and amortization 694,358 826,130 (16.0)
Other regulatory charges (credits) - net 4,898 75,949 (93.6)
Amortization of rate deferrals 42,126 186,306 (77.4)
---------- ----------
Total 7,361,769 9,298,168 (20.8)
---------- ----------
Operating Income 1,404,412 1,331,024 5.5
---------- ----------
Other Income (Deductions):
Allowance for equity funds used during
construction 32,268 19,601 64.6
Gain on sales of assets - net 32,199 323,121 (90.0)
Miscellaneous - net 197,040 98,974 99.1
---------- ----------
Total 261,507 441,696 (40.8)
---------- ----------
Interest and Other Charges:
Interest on long-term debt 466,302 595,410 (21.7)
Other interest - net 80,640 86,375 (6.6)
Dividends on preferred securities of subsidiaries 18,838 31,919 (41.0)
Allowance for borrowed funds used during
construction (24,157) (16,604) 45.5
---------- ----------
Total 541,623 697,100 (22.3)
---------- ----------
Income Before Income Taxes 1,124,296 1,075,620 4.5
Income Taxes 457,752 283,360 61.5
---------- ----------
Consolidated Net Income 666,544 792,260 (15.9)
Preferred dividend requirements of subsidiaries and other 39,993 43,786 (8.7)
---------- ----------
Earnings Applicable to Common Stock $626,551 $748,474 (16.3)
========== ==========
Earnings Per Average Common Share $2.63 $3.03 (13.2)
Average Number of Common Shares Outstanding 238,003,322 246,644,571
</TABLE>
<PAGE>
Entergy Corporation
U.S. Utility Electric Energy Sales & Customers
Three Months Ended June
2000 1999 %
(Millions of kWh)
Electric Energy Sales:
Residential 6,857 6,850 0.1
Commercial 5,880 5,741 2.4
Governmental 635 623 1.8
Industrial 11,021 10,827 1.8
------- -------
Total to Ultimate Customers 24,393 24,041 1.5
Wholesale 2,523 2,095 20.4
------- -------
Total Sales 26,916 26,136 3.0
======= =======
Six Months Ended June
2000 1999 %
(Millions of kWh)
Electric Energy Sales:
Residential 13,369 13,267 0.8
Commercial 11,160 10,910 2.3
Governmental 1,222 1,212 0.8
Industrial 21,638 21,043 2.8
------- -------
Total to Ultimate Customers 47,389 46,432 2.1
Wholesale 4,795 4,304 11.4
------- -------
Total Sales 52,184 50,736 2.9
======= =======
Twelve Months Ended June
2000 1999 %
(Millions of kWh)
Electric Energy Sales:
Residential 30,733 31,265 (1.7)
Commercial 24,025 23,762 1.1
Governmental 2,573 2,574 (0.1)
Industrial 44,145 43,230 2.1
-------- --------
Total to Ultimate Customers 101,476 100,831 0.6
Wholesale 10,205 10,916 (6.5)
-------- --------
Total Sales 111,681 111,747 (0.1)
======== ========
June
2000 1999 %
Electric Customers (Year to date average):
Residential 2,199,803 2,172,952 1.2
Commercial 287,125 279,819 2.6
Governmental 14,257 13,907 2.5
Industrial 40,477 40,316 0.4
---------- ----------
Total to Ultimate Customers 2,541,661 2,506,994 1.4
Wholesale 40 42 (4.7)
---------- ----------
Total Customers 2,541,701 2,507,036 1.4
========== ==========
