Attached files
| file | filename |
|---|---|
| 8-K - 8-K - ENTERGY LOUISIANA, LLC | a07215.htm |
| EX-99.1 - EXHIBIT 99.1 - ENTERGY LOUISIANA, LLC | egslstandalone3q10q.htm |
Exhibit 99.2
UNAUDITED PRO FORMA FINANCIAL INFORMATION
On October 1, 2015, the public utility businesses of Entergy Louisiana and Entergy Gulf States Louisiana were combined into a single public utility. As part of the steps to effectuate the combination, Entergy Louisiana and Entergy Gulf States Louisiana redeemed or repurchased all of their respective outstanding preferred membership interests.
The unaudited pro forma financial information combines the historical financial statements of Entergy Louisiana and Entergy Gulf States Louisiana to illustrate the effect of the proposed business combination. The combination will be accounted for as a transaction between entities under common control. The pro forma combined financial information should be read in conjunction with the Entergy Louisiana and Entergy Gulf States Louisiana historical financial statements and the related notes thereto. The unaudited pro forma combined financial statements presented below have been derived from the unaudited interim financial statements as of and for the nine months ended September 30, 2015. The unaudited historical interim financial statements have been prepared on a basis consistent with the audited financial statements and, in the opinion of management, include all adjustments (including normal recurring accruals) necessary for a fair presentation of such data. The results for the interim periods are not necessarily indicative of results for a full year.
The unaudited pro forma condensed combined income statements have been prepared as if the combination had occurred on January 1, 2015. The unaudited pro forma condensed combined balance sheet has been prepared as if the combination had occurred on September 30, 2015. The unaudited pro forma adjustments reflect items that are directly attributable to the combination, are factually supportable, and, for the condensed combined income statements, are expected to have a continuing effect on the combined Entergy Louisiana utility business.
The unaudited pro forma financial information is for illustrative and informational purposes only and is not intended to represent, or be indicative of, what the combined Entergy Louisiana utility business’s results of operations or financial position would have been had the combination occurred on the dates indicated. The unaudited pro forma financial information also should not be considered representative of the combined Entergy Louisiana utility business’s future financial position or results of operations.
The Entergy Louisiana Combined Utility Business | ||||||||||||||||
Unaudited Pro Forma Condensed Combined Balance Sheet | ||||||||||||||||
September 30, 2015 | ||||||||||||||||
(In Thousands) | ||||||||||||||||
Entergy Louisiana, LLC | Entergy Gulf States Louisiana, LLC | Combination and Pro Forma Adjustments | The Entergy Louisiana Combined Utility Business Pro Forma (3) | |||||||||||||
ASSETS | ||||||||||||||||
Cash and cash equivalents | $240,939 | $22,779 | $— | $263,718 | ||||||||||||
Other current assets | 604,710 | 483,325 | (47,715 | ) | (2) | 1,040,320 | ||||||||||
Investment in affiliate preferred membership interests | 1,034,695 | 355,906 | — | 1,390,601 | ||||||||||||
Decommissioning trust funds | 376,448 | 624,116 | — | 1,000,564 | ||||||||||||
Total property, plant, and equipment | 10,532,636 | 8,269,977 | — | 18,802,613 | ||||||||||||
Less - accumulated depreciation and amortization | 4,058,990 | 4,259,586 | — | 8,318,576 | ||||||||||||
Property, plant, and equipment - net | 6,473,646 | 4,010,391 | — | 10,484,037 | ||||||||||||
Regulatory assets | 1,247,035 | 660,604 | — | 1,907,639 | ||||||||||||
Other assets | 270,724 | 319,523 | — | 590,247 | ||||||||||||
TOTAL ASSETS | $10,248,197 | $6,476,644 | ($47,715 | ) | $16,677,126 | |||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||
Current liabilities | $612,817 | $510,560 | ($47,715 | ) | (2) | $1,075,662 | ||||||||||
Accumulated deferred income taxes and long-term taxes accrued | 1,484,567 | 1,434,969 | — | 2,919,536 | ||||||||||||
Long-term debt | 3,299,254 | 1,625,809 | — | 4,925,063 | ||||||||||||
Other non-current liabilities | 1,874,109 | 1,328,385 | — | 3,202,494 | ||||||||||||
Equity | 2,977,450 | 1,576,921 | — | 4,554,371 | ||||||||||||
TOTAL LIABILITIES AND EQUITY | $10,248,197 | $6,476,644 | ($47,715 | ) | $16,677,126 | |||||||||||
See notes to the unaudited pro forma financial information. | ||||||||||||||||
The Entergy Louisiana Combined Utility Business | ||||||||||||||||
Unaudited Pro Forma Condensed Combined Income Statement | ||||||||||||||||
For the Nine Months Ended September 30, 2015 | ||||||||||||||||
(In Thousands) | ||||||||||||||||
Entergy Louisiana, LLC | Entergy Gulf States Louisiana, LLC | Combination and Pro Forma Adjustments | The Entergy Louisiana Combined Utility Business Pro Forma (3) | |||||||||||||
OPERATING REVENUES | ||||||||||||||||
Operating Revenues | $2,117,657 | $1,508,593 | ($183,978 | ) | (2) | $3,442,272 | ||||||||||
OPERATING EXPENSES | ||||||||||||||||
Operation and Maintenance: | ||||||||||||||||
Fuel and fuel-related expenses | 453,627 | 193,504 | — | 647,131 | ||||||||||||
Purchased power | 536,553 | 549,382 | (183,978 | ) | (2) | 901,957 | ||||||||||
Nuclear refueling outage expenses | 18,469 | 15,718 | — | 34,187 | ||||||||||||
Other operation and maintenance | 399,141 | 301,270 | — | 700,411 | ||||||||||||
Decommissioning | 19,319 | 13,046 | — | 32,365 | ||||||||||||
Taxes other than income taxes | 62,309 | 65,895 | — | 128,204 | ||||||||||||
Depreciation and amortization | 209,713 | 117,475 | — | 327,188 | ||||||||||||
Other regulatory charges (credits) - net | (6,711 | ) | 6,260 | — | (451 | ) | ||||||||||
TOTAL | 1,692,420 | 1,262,550 | (183,978 | ) | 2,770,992 | |||||||||||
OPERATING INCOME | 425,237 | 246,043 | — | 671,280 | ||||||||||||
OTHER INCOME | ||||||||||||||||
Allowance for equity funds used during construction | 9,625 | 5,569 | — | 15,194 | ||||||||||||
Interest and investment income | 77,637 | 34,792 | — | 112,429 | ||||||||||||
Miscellaneous - net | (2,200 | ) | (5,564 | ) | — | (7,764 | ) | |||||||||
TOTAL | 85,062 | 34,797 | — | 119,859 | ||||||||||||
INTEREST EXPENSE | ||||||||||||||||
Interest expense | 129,172 | 65,529 | — | 194,701 | ||||||||||||
Allowance for equity funds used during construction | (5,230 | ) | (3,297 | ) | — | (8,527 | ) | |||||||||
TOTAL | 123,942 | 62,232 | — | 186,174 | ||||||||||||
INCOME BEFORE INCOME TAXES | 386,357 | 218,608 | — | 604,965 | ||||||||||||
Income taxes | 120,075 | 62,660 | — | 182,735 | ||||||||||||
NET INCOME | 266,282 | 155,948 | — | 422,230 | ||||||||||||
Preferred distribution requirements | 5,155 | 582 | (5,737 | ) | (1) | — | ||||||||||
EARNINGS APPLICABLE TO COMMON EQUITY | $261,127 | $155,366 | $5,737 | $422,230 | ||||||||||||
See notes to the unaudited pro forma financial information. | ||||||||||||||||
Notes to Unaudited Pro Forma Financial Information
(1) Reflects the redemption or repurchase in September 2015 by Entergy Louisiana and Entergy Gulf States Louisiana of all of their outstanding preferred membership interests along with the payment of accrued distributions.
(2) Reflects the elimination of intercompany balances and power purchases between Entergy Louisiana and Entergy Gulf States Louisiana.
(3) Reflects the total of the “Entergy Louisiana, LLC,” the “Entergy Gulf States Louisiana, LLC,” and the “Combination and Pro Forma Adjustments” columns.