Entergy Corporation (NYSE:ETR) Q3 2017 Earnings Conference Call Transcript
Oct 24, 2017 • 11:00 am ET
Good day, ladies and gentlemen, and welcome to the Entergy Corporation's Third Quarter 2017 Earnings Release and Teleconference.
(Operator Instructions) As a reminder, today's program is being recorded.
And now, I'd like to introduce your host for today's program, David Borde, VP, IR. Please go ahead.
Good morning and thank you for joining us. We will begin today with comments from Entergy's Chairman and CEO, Leo Denault and then Drew Marsh, our CFO, will review results. In an effort to accommodate everyone who has questions we request that each person ask no more than one question and one follow up. And just a reminder, with EEI only days away, today's call is scheduled for 40 minutes.
(Forward-Looking Cautionary Statements)
Management will also discuss non-GAAP financial information. Reconciliations to the applicable GAAP measures are included in today's press release and slide presentation, both of which can be found on the Investor Relations section of our website.
Now, I will turn the call over to Leo.
Thank you, David, and good morning. Today, we are reporting a strong third quarter with operational earnings per share of $2.35 and Utility, Parent & Other adjusted earnings per share of $2.15. We now expect to finish the year in the top half of our Utility, Parent & Other adjusted earnings guidance range.
Furthermore, we continue to execute on our strategy to achieve steady predictable growth at the Utility, while managing risk and an orderly exit of our Merchant Power Business. As shown on Slide 3, with three quarters behind us, we've successfully completed most of the key deliverables that we set for 2017.
The significant accomplishments we've made over the past several years position us well to achieve our financial outlooks in the coming years, which support our long-term dividend growth aspiration. As a result, today, we are affirming our 2017 guidance and our longer-term outlooks for Utility, Parent & Other.
With the EEI conference days away, we are keeping today's call focused on quarterly results as well as progress updates on our key deliverables. We will defer questions on long-term strategy to EEI, where I will be giving a formal business update presentation.
Now moving on to developments for our business since our last earnings call; first, in Entergy Arkansas' formula rate plan proceeding, we reached an unopposed settlement agreement with the Attorney General and the other members of the joint ratepayer advocates. If approved, the settlement would resolve all challenges to the prudence of the nuclear costs included in the 2017 and 2018 test year filings.
We also agreed to a process to review the costs associated with ANO's stator incident and placement in Column 4 by the NRC. As a reminder, these costs were not part of the 2017 and 2018 test year FRPs. The settlement agreement was included in a procedural filing with the Arkansas Public Service Commission last week.
We are still engaging with all parties, with the goal of reaching a comprehensive settlement of the FRP that may be presented