Entergy Sees 2010 EPS Of $6.15-$6.95/Share Post Nuclear Spin-Off
DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- Entergy Corp. (ETR) late Friday said it expects 2010
reported earnings per share of $6.15 to $6.95, assuming a spin-off of its five
nuclear plants into a new company takes place as planned.
The New Orleans-based power company - the second-biggest nuclear-power
generator in the country after Exelon Corp. (EXC) - has aimed to create the
nation's first stand-alone nuclear power company for nearly two years. The deal
was stymied by the global credit freeze as Entergy needs to access billions of
dollars in new debt to create the company, to be called Enexus Energy Corp. A
return of activity in the market for below-investment-grade debt prompted
Entergy to focus again on regulatory approvals needed for the spin-off. In late
August, New York regulators said they will rule on the plan in January or later,
falling short of the company's requested timetable.
"We continue to take the actions necessary to complete the planned non-utility
nuclear spin-off," said J. Wayne Leonard, Entergy's chairman and chief
executive, in a press release.
Entergy Friday said the reported-earnings guidance it initiated includes a 25
cent charge associated with the spin-off and the formation of a nuclear-services
joint venture, and, not counting this, operational earnings are expected to come
in at $6.40 to $7.20 a share. The guidance doesn't include a special item for
expenses incurred starting last year and seen continuing into 2010 for services
connected with the planned spin-off.
Entergy also said its board had approved an additional $750 million share-
buyback program, following on the initial $500 million buyback authorized in the
third quarter.
The company also said it expects capital expenditures of $7.1 billion from
2010 through 2012, with $2.7 billion going for maintenance.
On Oct. 22, Entergy said its third-quarter earnings fell 3% to $455.2 million,
or $2.32 a share, as a boost in its nuclear-generation business helped offset
higher expenses and the impact of a sluggish economy.
-Mark Long, Dow Jones Newswires; (212) 416-2145; mark.long@dowjones.com
(END) Dow Jones Newswires
11-01-091534ET
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