NV Energy Reports Third Quarter Earnings

Nov 02, 2011, 07:00 ET from NV Energy, Inc.

LAS VEGAS, Nov. 2, 2011 /PRNewswire/ -- NV Energy, Inc. (NYSE: NVE) today announced financial results for the three months and nine months ended September 30, 2011.

(Logo:  http://photos.prnewswire.com/prnh/20100825/LA55163LOGO)

NV Energy, Inc.

Consolidated Results

Periods Ended September 30

Net Income

EPS

($ in millions)

(diluted)

2011

2010

2011

2010

Three Months

$

173.5

$

177.5

$

0.73

$

0.75

Nine Months

$

188.7

$

212.8

$

0.80

$

0.90

"As expected, the completion of the new Harry Allen combined cycle plant was a key factor affecting our third quarter results," said Michael Yackira, president and chief executive officer of NV Energy, Inc.  "Harry Allen concludes our major investments in new efficient generation over the past five years. I am pleased that our continuing efforts to control spending helped mitigate the additional costs of this new plant."

The 2010 amounts in the table above incorporate an $8.0 million (pre-tax) accrual for the September 2010 termination of a long term service agreement(1). In the third quarter of 2011, after reaching a settlement with the vendor, NV Energy reversed the accrued termination costs.  The reversal benefitted results for the three and nine months ended September 30, 2011 by $8.0 million (pre-tax).

Results for the nine months ended September 30, 2011 were adversely affected by $8.6 million of pre-tax adjustments in connection with energy efficiency implementation rates as previously disclosed.

Results for both periods ended September 30, 2010 reflect the results of NV Energy's California operations, which were sold effective January 1, 2011. Results for the nine months ended September 30, 2010 also reflect a $7.6 million pre-tax gain on a May 2010 asset sale as previously disclosed.

(1) A revision to the September 30, 2010 SEC Form 10-Q as disclosed in the SEC Form 10-K for the fiscal year ended December 31, 2010.

Webcast Scheduled for 7 a.m. PDT today, Wednesday, November 2, 2011

Senior management of NV Energy will review the company's third quarter 2011 financial results and other matters during a conference call and live webcast today, Wednesday, November 2, 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 remain on the company's website 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, 219843.

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.

This press release may contain forward-looking statements regarding the future performance of NV Energy, Inc. and its subsidiaries, Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy, within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from current expectations. These risks and uncertainties include, but are not limited to, NV Energy Inc.'s ability to maintain access to the capital markets, NV Energy Inc.'s ability to receive dividends from its subsidiaries, the financial performance of NV Energy Inc.'s subsidiaries, particularly Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy, and the discretion of NV Energy Inc.'s Board of Directors with respect to the payment of future dividends based on its periodic review of factors that ordinarily affect dividend policy, such as current and prospective financial condition, earnings and liquidity, prospective business conditions, regulatory factors, and dividend restrictions in NV Energy Inc.'s and its subsidiaries' financing agreements. For Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy, these risks and uncertainties include, but are not limited to, future economic conditions both nationally and regionally, changes in the rate of industrial, commercial and residential growth in their service territories, their ability to procure sufficient renewable energy sources in each compliance year to satisfy the Nevada Renewable Energy Portfolio Standard, changes in environmental laws and regulations, construction risks, their ability to maintain access to the capital markets for general corporate purposes and to finance construction projects, employee workforce factors, unseasonable weather, drought, threat of wildfire and other natural phenomena, explosions, fires, accidents, mechanical breakdowns that may occur while operating and maintaining an electric and natural gas system,  their ability to purchase sufficient fuel, natural gas and power to meet their power demands and natural gas demands for Sierra Pacific Power Company d/b/a NV Energy, financial market conditions, and unfavorable rulings in their pending and future regulatory filings. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of NV Energy, Inc., Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy are contained in their quarterly reports on Form 10-Q for the quarters ended March 31, 2011 and June 30, 2011, and Annual Reports on Form 10-K for the year ended December 31, 2010, each filed with the Securities and Exchange Commission. NV Energy Inc., Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy undertake no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.  

NV ENERGY, INC.

CONSOLIDATED INCOME STATEMENTS

(Dollars in Thousands, Except Per Share Amounts)

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2011

2010

2011

2010

OPERATING REVENUES

$

1,017,796

$

1,128,039

$

2,333,710

$

2,625,211

OPERATING EXPENSES:

Fuel for power generation

216,779

247,233

519,920

650,514

Purchased power

223,348

249,854

518,672

522,538

Gas purchased for resale

10,137

10,823

87,753

101,536

Deferred energy

(33,620)

34,055

(43,678)

106,554

Other operating expenses

127,645

112,741

331,166

320,755

Maintenance

11,369

31,126

73,317

85,715

Depreciation and amortization

93,737

83,423

266,445

249,067

Taxes other than income

15,205

15,420

46,134

47,532

Total Operating Expenses

664,600

784,675

1,799,729

2,084,211

OPERATING INCOME

353,196

343,364

533,981

541,000

OTHER INCOME (EXPENSE):

Interest expense (net of AFUDC-debt: $1,326, $6,485,

$10,371 and $17,349)

(80,496)

(80,789)

(238,718)

(241,625)

Interest expense on regulatory items

(4,316)

(3,685)

(12,140)

(8,753)

AFUDC-equity

1,690

7,824

12,854

20,915

Other income

4,645

9,246

14,942

30,524

Other expense

(9,857)

(4,313)

(23,600)

(17,038)

Total Other Income (Expense)

(88,334)

(71,717)

(246,662)

(215,977)

Income Before Income Tax Expense

264,862

271,647

287,319

325,023

Income tax expense

91,400

94,101

98,639

112,252

NET INCOME

$

173,462

$

177,546

$

188,680

$

212,771

Amount per share basic and diluted

Net income per share - basic

$

0.74

$

0.76

$

0.80

$

0.91

Net income per share - diluted

0.73

0.75

0.80

0.90

Weighted Average Shares of Common Stock Outstanding - basic

235,990,373

235,117,058

235,796,321

234,991,208

Weighted Average Shares of Common Stock Outstanding - diluted

237,901,330

236,477,187

237,320,796

236,136,725

Dividends Declared Per Share of Common Stock                              

$

0.12

$

0.11

$

0.36

$

0.33

NV ENERGY, INC.

CONSOLIDATED OPERATING STATISTICS AND FINANCIAL HIGHLIGHTS

(unaudited)

ELECTRIC SALES - MWh's

(in thousands)

Three Months Ended September 30,

Nine Months Ended September 30,

Change from

Change from

2011

2010

Prior Year

2011

2010

Prior Year

Residential

4,322

4,409

(2.0)%

8,694

9,007

(3.5)%

Commercial

2,141

2,192

(2.3)%

5,472

5,616

(2.6)%

Industrial

2,713

2,799

(3.1)%

7,680

7,707

(0.4)%

TOTAL RETAIL

9,176

9,400

(2.4)%

21,846

22,330

(2.2)%

Other

65

67

(3.0)%

178

181

(1.7)%

TOTAL

9,241

9,467

(2.4)%

22,024

22,511

(2.2)%

ELECTRIC SALES - MWh's (EXCLUDING CALIFORNIA)*

(in thousands)

Three Months Ended September 30,

Nine Months Ended September 30,

Average

Average

Change from

Change in

Change from

Change in

2011

2010

Prior Year

Customers

2011

2010

Prior Year

Customers

Residential

4,322

4,354

(0.7)%

0.9%

8,694

8,801

(1.2)%

0.9%

Commercial

2,141

2,153

(0.6)%

0.5%

5,472

5,499

(0.5)%

0.6%

Industrial

2,713

2,775

(2.2)%

(3.0)%

7,680

7,621

0.8%

(1.7)%

TOTAL RETAIL

9,176

9,282

(1.1)%

21,846

21,921

(0.3)%

Other

65

67

(3.0)%

178

181

(1.7)%

TOTAL

9,241

9,349

(1.2)%

0.8%

22,024

22,102

(0.4)%

0.8%

* Represents results for 2011 and 2010 excluding amounts related to the California operations which were sold on January 1, 2011.

GAS SALES - Dth

(in thousands)

Three Months Ended September 30,

Nine Months Ended September 30,

Change from

Change from

2011

2010

Prior Year

2011

2010

Prior Year

TOTAL RETAIL

1,187

1,272

(6.7)%

10,593

10,108

4.8%

ELECTRIC SOURCES - MWh's

(in thousands)

Three Months Ended September 30,

Nine Months Ended September 30,

Change from

Change from

2011

2010

Prior Year

2011

2010

Prior Year

Generated

6,180

6,263

(1.3)%

14,477

15,693

(7.7)%

Purchased

3,577

3,571

0.2%

9,081

7,854

15.6%

TOTAL

9,757

9,834

23,558

23,547

DEGREE DAYS

Three Months Ended September 30,

Nine Months Ended September 30,

Change from

Change from

2011

2010

Prior Year

2011

2010

Prior Year

SOUTH

Heating

-

-

N/A

1,131

1,170

(3.3)%

Cooling

2,312

2,412

(4.1)%

3,329

3,418

(2.6)%

NORTH

Heating

3

39

(92.3)%

3,201

3,023

5.9%

Cooling

848

767

10.6%

960

904

6.2%

CAPITAL STRUCTURE

(dollars in thousands)

September 30, 2011

September 30, 2010

Current maturities of long-term debt

$

136,139

1.6%

$

356,538

3.9%

Long-term debt

5,038,232

58.3%

5,313,407

58.8%

Total debt

$

5,174,371

59.9%

$

5,669,945

62.8%

Total shareholders' equity

3,465,689

40.1%

3,363,314

37.2%

Total capitalization (including current maturities of long-term debt)

$

8,640,060

100.0%

$

9,033,259

100.0%

AVAILABLE LIQUIDITY AS OF SEPTEMBER 30, 2011

(dollars in millions )

NVE

NPC

SPPC

Cash and Cash Equivalents

$

32.9

$

34.8

$

66.3

Balance available on Revolving Credit Facilities

N/A

548.0

237.5

Less reduction for hedging transactions

N/A

(1.7)

(0.5)

$

32.9

$

581.1

$

303.3

NEVADA POWER COMPANY

CONSOLIDATED INCOME STATEMENTS

(Dollars in Thousands)

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2011

2010

2011

2010

OPERATING REVENUES

$

798,914

$

870,950

$

1,662,880

$

1,836,144

OPERATING EXPENSES:

Fuel for power generation

162,976

181,100

378,790

469,282

Purchased power

181,733

216,309

399,707

412,276

Deferred energy

(10,354)

22,296

(1,274)

81,719

Other operating expenses

88,455

73,762

215,491

203,773

Maintenance

3,460

23,707

45,122

58,945

Depreciation and amortization

67,212

56,575

186,798

169,330

Taxes other than income

9,105

9,038

28,209

28,857

Total Operating Expenses

502,587

582,787

1,252,843

1,424,182

OPERATING INCOME

296,327

288,163

410,037

411,962

OTHER INCOME (EXPENSE):

Interest expense (net of AFUDC-debt: $842,

$5,787, $8,962 and $15,763)

(55,267)

(54,144)

(163,036)

(161,496)

Interest expense on regulatory items

(2,478)

(1,157)

(5,911)

(1,965)

AFUDC-equity

1,026

6,795

10,979

18,555

Other income

2,990

3,842

9,298

9,084

Other expense

(7,324)

(3,034)

(15,235)

(9,338)

Total Other Income (Expense)

(61,053)

(47,698)

(163,905)

(145,160)

Income Before Income Tax Expense

235,274

240,465

246,132

266,802

Income tax expense

80,666

81,537

84,481

90,416

NET INCOME

$

154,608

$

158,928

$

161,651

$

176,386

NEVADA POWER COMPANY

CONSOLIDATED OPERATING STATISTICS AND FINANCIAL HIGHLIGHTS

(unaudited)

ELECTRIC SALES - MWh's

(in thousands)

Three Months Ended September 30,

Nine Months Ended September 30,

Average

Average

Change from

Change in

Change from

Change in

2011

2010

Prior Year

Customers

2011

2010

Prior Year

Customers

Residential

3,711

3,758

(1.3)%

1.1%

7,021

7,162

(2.0)%

1.1%

Commercial

1,319

1,327

(0.6)%

0.7%

3,307

3,322

(0.5)%

0.5%

Industrial

2,070

2,123

(2.5)%

(2.9) %

5,793

5,771

0.4%

(1.7)%

TOTAL RETAIL

7,100

7,208

(1.5)%

16,121

16,255

(0.8)%

Other

61

63

(3.2)%

166

169

(1.8)%

TOTAL

7,161

7,271

(1.5)%

1.0%

16,287

16,424

(0.8)%

1.0%

ELECTRIC SOURCES - MWh's

(in thousands)

Three Months Ended September 30,

Nine Months Ended September 30,

Change from

Change from

2011

2010

Prior Year

2011

2010

Prior Year

Generated

4,879

4,738

3.0%

11,138

11,868

(6.2)%

Purchased

2,520

2,804

(10.1) %

5,821

5,211

11.7%

TOTAL

7,399

7,542

16,959

17,079

DEGREE DAYS

Three Months Ended September 30,

Nine Months Ended September 30,

Change from

Change from

2011

2010

Prior Year

2011

2010

Prior Year

Heating

-

-

N/A

1,131

1,170

(3.3)%

Cooling

2,312

2,412

(4.1)%

3,329

3,418

(2.6)%

CAPITAL STRUCTURE

(dollars in thousands)

September 30, 2011

September 30, 2010

Current maturities of long-term debt

$

136,139

2.1%

$

356,538

5.3%

Long-term debt

3,352,044

52.4%

3,546,724

53.2%

Total debt

$

3,488,183

54.5%

$

3,903,262

58.5%

Total shareholders' equity

2,913,311

45.5%

2,764,475

41.5%

Total capitalization (including current maturities of long-term debt)

$

6,401,494

100.0%

$

6,667,737

100.0%

SIERRA PACIFIC POWER COMPANY

CONSOLIDATED INCOME STATEMENTS

(Dollars in Thousands)

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2011

2010

2011

2010

OPERATING REVENUES:

Electric

$

202,263

$

237,798

$

545,462

$

649,337

Gas

16,615

19,286

125,357

139,711

Total Operating Revenues

218,878

257,084

670,819

789,048

OPERATING EXPENSES:

Fuel for power generation

53,803

66,133

141,130

181,232

Purchased power

41,615

33,545

118,965

110,262

Gas purchased for resale

10,137

10,823

87,753

101,536

Deferral of energy - electric - net

(22,095)

9,964

(45,924)

17,189

Deferral of energy - gas - net

(1,171)

1,795

3,520

7,646

Other operating expenses

38,529

38,004

113,432

114,371

Maintenance

7,909

7,419

28,195

26,770

Depreciation and amortization

26,525

26,848

79,647

79,737

Taxes other than income

6,052

6,330

17,675

18,494

Total Operating Expenses

161,304

200,861

544,393

657,237

OPERATING INCOME

57,574

56,223

126,426

131,811

OTHER INCOME (EXPENSE):

Interest expense (net of AFUDC-debt: $484,

$698, $1,409 and $1,586)

(16,861)

(16,983)

(50,581)

(51,141)

Interest expense on regulatory items

(1,838)

(2,528)

(6,229)

(6,788)

AFUDC-equity

664

1,029

1,875

2,360

Other income

1,448

2,379

4,677

14,276

Other expense

(2,255)

(1,285)

(7,403)

(7,555)

Total Other Income (Expense)

(18,842)

(17,388)

(57,661)

(48,848)

Income Before Income Tax Expense

38,732

38,835

68,765

82,963

Income tax expense

13,396

14,373

23,341

30,066

NET INCOME

$

25,336

$

24,462

$

45,424

$

52,897

SIERRA PACIFIC POWER COMPANY

CONSOLIDATED OPERATING STATISTICS AND FINANCIAL HIGHLIGHTS

(unaudited)

ELECTRIC SALES - MWh's

(in thousands)

Three Months Ended September 30,

Nine Months Ended September 30,

Change from

Change from

2011

2010

Prior Year

2011

2010

Prior Year

Residential

611

651

(6.1)%

1,673

1,845

(9.3)%

Commercial

822

865

(5.0)%

2,165

2,294

(5.6)%

Industrial

643

676

(4.9)%

1,887

1,936

(2.5)%

TOTAL RETAIL

2,076

2,192

(5.3)%

5,725

6,075

(5.8)%

Other

4

4

N/A

12

12

-%

TOTAL

2,080

2,196

(5.3)%

5,737

6,087

(5.7)%

ELECTRIC SALES - MWh's (EXCLUDING CALIFORNIA)*

(in thousands)

Three Months Ended September 30,

Nine Months Ended September 30,

Average

Average

Change from

Change in

Change from

Change in

2011

2010

Prior Year

Customers

2011

2010

Prior Year

Customers

Residential

611

596

2.5%

0.3%

1,673

1,639

2.1%

0.3%

Commercial

822

826

(0.5)%

0.1%

2,165

2,177

(0.6)%

0.8%

Industrial

643

652

(1.4)%

(4.2)%

1,887

1,850

2.0%

(1.8)%

TOTAL RETAIL

2,076

2,074

0.1%

5,725

5,666

1.0%

Other

4

4

N/A

12

12

-%

TOTAL

2,080

2,078

0.1%

0.2%

5,737

5,678

1.0%

0.4%

*

Represents results for 2011 and 2010 excluding amounts related to the California operations which were sold on January 1, 2011.

GAS SALES - Dth

(in thousands)

Three Months Ended September 30,

Nine Months Ended September 30,

Change from

Change from

2011

2010

Prior Year

2011

2010

Prior Year

TOTAL RETAIL

1,187

1,272

(6.7)%

10,593

10,108

4.8%

ELECTRIC SOURCES - MWh's

(in thousands)

Three Months Ended September 30,

Nine Months Ended September 30,

Change from

Change from

2011

2010

Prior Year

2011

2010

Prior Year

Generated

1,301

1,525

(14.7)%

3,339

3,825

(12.7)%

Purchased

1,057

767

37.8%

3,260

2,643

23.3%

TOTAL

2,358

2,292

6,599

6,468

DEGREE DAYS

Three Months Ended September 30,

Nine Months Ended September 30,

Change from

Change from

2011

2010

Prior Year

2011

2010

Prior Year

Heating

3

39

(92.3)%

3,201

3,023

5.9%

Cooling

848

767

10.6%

960

904

6.2%

CAPITAL STRUCTURE

(dollars in thousands)

September 30, 2011

September 30, 2010

Long-term debt

$

1,179,688

55.1%

$

1,281,138

55.8%

Total debt

$

1,179,688

55.1%

$

1,281,138

55.8%

Total shareholders' equity

961,386

44.9%

1,014,181

44.2%

Total capitalization (including current maturities of long-term debt)

$

2,141,074

100.0%

$

2,295,319

100.0%

Gross margin is presented by Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy in order to provide information that management believes aids the reader in determining how profitable the electric and gas business is at the most fundamental level. Gross margin, which is a "non-GAAP financial measure" as defined in accordance with SEC rules, provides a measure of income available to support the other operating expenses of the business and is utilized by management in its analysis of its business.

Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy believe presenting gross margin allows the reader to assess the impact of regulatory treatment and their overall regulatory environment on a consistent basis. Gross margin, as a percentage of revenue, is primarily impacted by the fluctuations in electric and natural gas supply costs versus the fixed rates collected from customers. While these fluctuating costs impact gross margin as a percentage of revenue, they only impact gross margin amounts if the costs cannot be passed through to customers. Gross margin, which Nevada Power Company and Sierra Pacific Power Company both d/b/a NV Energy calculate as operating revenues less energy costs, provides a measure of income available to support the other operating expenses. Gross margin changes are based primarily on general base rate adjustments (which are required to be filed by statute every three years). Reconciliations between GAAP operating income and gross margin are provided in tables herein. These non-GAAP measures should not be considered as substitutes for the GAAP measures.

NV Energy, Inc.  

Consolidated Gross Margin  

(dollars in thousands)  

Three Months Ended September 30,

Nine Months Ended September 30,

Change from

Change from

2011

2010

Prior Year %

2011

2010

Prior Year %

Operating Revenues:

$

1,017,796

$

1,128,039

(9.8)%

$

2,333,710

$

2,625,211

(11.1)%

Energy Costs:

Fuel for power generation

216,779

247,233

(12.3)%

519,920

650,514

(20.1)%

Purchased power

223,348

249,854

(10.6)%

518,672

522,538

(0.7)%

Gas purchased for resale

10,137

10,823

(6.3)%

87,753

101,536

(13.6)%

Deferred energy

(33,620)

34,055

(43,678)

106,554

$

416,644

$

541,965

(23.1)%

$

1,082,667

$

1,381,142

(21.6)%

Gross Margin

$

601,152

$

586,074

2.6%

$

1,251,043

$

1,244,069

0.6%

Other operating expenses

127,645

112,741

331,166

320,755

Maintenance

11,369

31,126

73,317

85,715

Depreciation and amortization

93,737

83,423

266,445

249,067

Taxes other than income

15,205

15,420

46,134

47,532

Operating Income

$

353,196

$

343,364

2.9%

$

533,981

$

541,000

(1.3)%

Nevada Power Company  

Gross Margin  

(dollars in thousands)  

Three Months Ended September 30,

Nine Months Ended September 30,

Change from

Change from

2011

2010

Prior Year %

2011

2010

Prior Year %

Operating Revenues:

$

798,914

$

870,950

(8.3)%

$

1,662,880

$

1,836,144

(9.4)%

Energy Costs:

Fuel for power generation

162,976

181,100

(10.0)%

378,790

469,282

(19.3)%

Purchased power

181,733

216,309

(16.0)%

399,707

412,276

(3.0)%

Deferred energy

(10,354)

22,296

(146.4)%

(1,274)

81,719

(101.6)%

$

334,355

$

419,705

(20.3)%

$

777,223

$

963,277

(19.3)%

Gross Margin

$

464,559

$

451,245

3.0%

$

885,657

$

872,867

1.5%

Other operating expenses

88,455

73,762

215,491

203,773

Maintenance

3,460

23,707

45,122

58,945

Depreciation and amortization

67,212

56,575

186,798

169,330

Taxes other than income

9,105

9,038

28,209

28,857

Operating Income

$

296,327

$

288,163

2.8%

$

410,037

$

411,962

(0.5)%