NV Energy Reports First Quarter Earnings, Increases Dividend 31% and Initiates Earnings Guidance

LAS VEGAS, May 8, 2012 /PRNewswire/ -- NV Energy, Inc. (NYSE: NVE) today announced financial results for the three months ended March 31, 2012.

NV Energy, Inc.

Consolidated Results

Three Months Ended March 31,

Net Income


($ in millions)














"Results for the first quarter met our expectations," said Michael Yackira, NV Energy president and chief executive officer. "Earnings increased despite mild weather, largely due to higher income associated with our investment in the Harry Allen generating station. Operating and maintenance expenses were virtually unchanged, reflecting the continued success of our cost control efforts."

Dividend Increase and Earnings Guidance

The Company also announced that its board of directors has declared a cash dividend of $0.17 per share, payable June 20, 2012 to shareholders of record on June 5, 2012. The company paid a quarterly dividend of $0.13 per share in March 2012. Assuming continuation of the $0.17 quarterly payment for the remainder of this year, total dividends for 2012 would be $0.64 per share, a 31 percent increase compared to the $0.49 paid in 2011.

"The dividend increase we announce today demonstrates our confidence that NV Energy is entering a period of more stable earnings and sustained free cash flow," said Mr. Yackira. "In 2012, we expect to earn between $1.15 and $1.25 per share, resulting in a dividend payout ratio of approximately 50 percent.

"Our policy will be to target a dividend payout ratio in the range of 55 to 65 percent. Given our current expectations for earnings and cash flow, this should allow us to increase dividends by about 10 percent annually for the next few years. Thereafter, our policy will be to grow dividends in line with sustainable earnings growth," Mr. Yackira said. "Earnings and free cash flow should be sufficient to achieve our target payout ratio while reducing debt, strengthening our capital structure and considering potential new investments."

With the increase announced today, NV Energy has more than doubled its dividend since reinstating it in July 2007 at $0.08 per share. During this period the company also:

  • successfully completed a major generation expansion plan,
  • reduced reliance on purchased power,
  • increased its commitment to renewable energy,
  • expanded customer energy efficiency and conservation programs, and
  • began installing smart meters system-wide.

Key factors expected to drive financial results in 2012 and beyond are shown in the "First Quarter 2012: Financial Results" presentation posted on www.nvenergy.com this morning. 

Management's earnings expectations assume normal weather and other drivers listed in the presentation.  The declaration of future dividends is at the discretion of the Board of Directors and is subject to numerous factors that ordinarily affect dividend policy, including the results of NV Energy operations and its financial position as well as general economic and business conditions.

Webcast Scheduled for 7 a.m. PDT today, Tuesday, May 8, 2012

Senior management of NV Energy will review the company's first quarter 2012 financial results and other matters during a conference call and live webcast today, Tuesday, May 8, at 7 a.m. Pacific Daylight Time.

The webcast will be accessible on the NV Energy website at: www.nvenergy.com.

A taped replay will be available on the company's website and by telephone for approximately 30 days.  To listen to the replay by telephone, call (800) 475-6701. International callers should dial (320) 365-3844. Use the conference call access code, 244930.

May 16 Investor Meeting and Webcast

NV Energy's senior management will host a meeting with the financial community on Wednesday, May 16, 2012 in New York.  The presentation will be accessible to the public via webcast on www.nvenergy.com.   

Headquartered in Las Vegas, NV Energy, Inc. is a holding company whose principal subsidiaries, Nevada Power Company and Sierra Pacific Power Company, are doing business as NV Energy. Serving a combined 45,592 square-mile service territory, NV Energy provides a wide range of energy services and products to approximately 2.4 million citizens of Nevada and nearly 40 million tourists annually.