Company narrows guidance range and updates
longer-term outlooks
NEW
ORLEANS, Oct. 31, 2024 /PRNewswire/ -- Entergy
Corporation (NYSE: ETR) reported third quarter 2024 earnings per
share of $2.99 on both an as-reported
and an adjusted (non-GAAP) basis.
"We achieved outstanding results across operational, regulatory,
resilience, and growth dimensions," said Drew Marsh, Entergy Chair and Chief Executive
Officer. "These outcomes are the result of strong execution and
leveraging a stakeholder engagement model that starts with the
customer and ensures value is created for all stakeholders."
Business highlights included the following:
- Entergy narrowed its 2024 adjusted EPS guidance range to
$7.15 to $7.35 (pre-split) and updated longer-term
outlooks.
- E-LA filed for approval of significant new transmission and
generation investment to support a new large customer.
- E-MS announced plans to build its first new natural gas power
station in 50 years.
- E-AR's 100-megawatt Walnut Bend Solar was placed in
service.
- E-AR closed on West Memphis Solar and Driver Solar.
- E-LA issued an RFP using its new streamlined process to acquire
3 gigawatts of solar resources.
- The LPSC approved several items for E-LA including its FRP
renewal, the gas LDC sale, the settlement with SERI to resolve all
complaints against SERI (subject to FERC approval), and an
agreement to divest E-LA's share of Grand Gulf energy and capacity
to E-MS.
- Filings submitted to the MPSC and FERC to divest E-LA's share
of Grand Gulf energy and capacity to E-MS.
- The CCNO approved $100 million of
E-NO's resilience plan for investment over the next two years.
- The PUCT approved an E-TX DCRF filing.
- Entergy's Board of Directors declared a quarterly dividend of
$1.20 per share, a six percent
increase.
- Entergy's Board of Directors approved a two-for-one stock split
of Entergy's common stock, effective with trading starting
December 13, 2024.
- Entergy was named as one of the nation's top utilities in
economic development by Site Selection magazine for the
17th consecutive year.
|
Consolidated earnings
(GAAP and non-GAAP measures)
|
|
Third quarter and
year-to-date 2024 vs. 2023 (See Appendix A for reconciliation of
GAAP to non-GAAP measures and description of
adjustments)
|
|
Third
quarter
|
Year-to-date
|
|
2024
|
2023
|
Change
|
2024
|
2023
|
Change
|
|
(After-tax, $ in
millions)
|
|
|
|
|
|
|
|
As-reported
earnings
|
645
|
667
|
(22)
|
769
|
1,369
|
(600)
|
|
Less
adjustments
|
-
|
(27)
|
27
|
(517)
|
42
|
(559)
|
|
Adjusted earnings
(non-GAAP)
|
645
|
694
|
(49)
|
1,286
|
1,327
|
(41)
|
|
Estimated weather
impact
|
41
|
135
|
(94)
|
70
|
103
|
(33)
|
|
|
|
|
|
|
|
|
(After-tax, per share
in $)
|
|
|
|
|
|
|
|
As-reported
earnings
|
2.99
|
3.14
|
(0.15)
|
3.58
|
6.45
|
(2.87)
|
|
Less
adjustments
|
-
|
(0.13)
|
0.13
|
(2.41)
|
0.20
|
(2.61)
|
|
Adjusted earnings
(non-GAAP)
|
2.99
|
3.27
|
(0.28)
|
5.99
|
6.25
|
(0.26)
|
|
Estimated weather
impact
|
0.19
|
0.64
|
(0.45)
|
0.33
|
0.48
|
(0.16)
|
|
|
|
|
|
|
|
|
|
Calculations may differ
due to rounding
|
Consolidated results
For third quarter 2024, the company reported earnings of
$645 million, or $2.99 per share, on an as-reported basis and an
adjusted basis. This compared to third quarter 2023 earnings of
$667 million, or $3.14 per share, on an as-reported basis and
$694 million, or $3.27 per share, on an adjusted basis.
Summary discussions of results by business follow. Additional
details, including information on OCF by business, are provided in
Appendix A. A more detailed analysis of variances by business is
provided in Appendix B.
Business results
Utility
For third quarter 2024, the Utility business reported earnings
attributable to Entergy Corporation of $787
million, or $3.65 per share,
on an as-reported basis and an adjusted basis. This compared to
third quarter 2023 earnings of $752
million, or $3.54 per share,
on an as-reported basis and $810
million, or $3.82 per share,
on an adjusted basis. There were several drivers for the third
quarter as-reported increase.
In third quarter 2023, as a result of Entergy Arkansas' offer to
forgo its opportunity to seek recovery of costs resulting from the
March 2013 ANO stator incident,
Entergy Arkansas recorded a write-off totaling $(78 million) ($(59
million) after tax). The write-off was considered an
adjustment and excluded from adjusted earnings.
Other drivers for the increase included:
- the net effect of regulatory actions across the operating
companies,
- higher other income (deductions) primarily due to a decrease in
non-service pension costs, and
- lower other O&M.
These drivers were partially offset by:
- the effects of weather on retail volume,
- higher depreciation expense, and
- higher interest expense.
On a per share basis, third quarter 2024 results reflected
higher diluted average number of common shares outstanding due to
the settlement of equity forwards in fourth quarter 2023 under the
company's ATM program, option exercises under the company's
stock-based compensation plans, and the dilutive effect from
unsettled equity forwards under the company's ATM program as a
result of an increase in the stock price.
Appendix C contains additional details on Utility operating and
financial measures.
Parent & Other
For third quarter 2024, Parent & Other reported a loss
attributable to Entergy Corporation of
$(142 million), or (66) cents per share, on an as-reported basis and
an adjusted basis. This compared to a third quarter 2023 loss of
$(85 million), or (40) cents per share, on an as-reported basis,
and a loss of $(117 million), or
(55) cents per share, on an adjusted
basis.
Drivers for the third quarter variances included:
- the effects of the third quarter 2023 DOE spent fuel litigation
settlement related to IPEC on asset write-offs and impairments
(considered an adjustment and excluded from adjusted
earnings),
- lower other income (deductions) due to lower non-service
pension income and changes in legal provisions, and
- higher interest expense.
On a per share basis, third quarter 2024 results reflected
higher diluted average number of common shares outstanding (see
drivers in Utility section).
Earnings per share guidance
Entergy announced a two-for-one forward stock split of Entergy's
issued common stock. Each record holder of common stock as of the
close of market on December 5, 2024,
will receive one additional share of common stock for each
then-held share, to be distributed after market close on
December 12, 2024. Trading is
expected to commence on a split-adjusted basis at market open on
December 13, 2024.
Entergy narrowed its 2024 adjusted EPS guidance to a range of
$7.15 to $7.35 (pre-split). See webcast presentation for
additional details.
The company has provided 2024 earnings guidance with regard to
the non-GAAP measure of adjusted earnings per share. This measure
excludes from the corresponding GAAP financial measure the effect
of adjustments as described below under "Non-GAAP financial
measures." The company has not provided a reconciliation of such
non-GAAP guidance to guidance presented on a GAAP basis because it
cannot predict and quantify with a reasonable degree of confidence
all of the adjustments that may occur during the period. Potential
adjustments include the exclusion of regulatory charges related to
outstanding regulatory complaints and significant income tax
items.
Earnings teleconference
A teleconference will be held at 10:00
a.m. Central Time on Thursday, October 31, 2024, to discuss
Entergy's quarterly earnings announcement and the company's
financial performance. The teleconference may be accessed by
visiting Entergy's website at
investors.entergy.com/investors/events-and-presentations or by
dialing 888-440-4149, conference ID 9024832, no more than 15
minutes prior to the start of the call. The webcast presentation is
also being posted to Entergy's website concurrent with this news
release. A replay of the teleconference will be available on
Entergy's website at
investors.entergy.com/investors/events-and-presentations and by
telephone. The telephone replay will be available through
November 7, 2024, by dialing
800-770-2030, conference ID 9024832.
Entergy is a Fortune 500 company that powers life for 3 million
customers through our operating companies in Arkansas, Louisiana, Mississippi, and Texas. We're investing in the reliability,
resilience and growth of the energy system while helping our region
transition to cleaner, more efficient energy solutions. With roots
in our communities for more than 100 years, Entergy is a nationally
recognized leader in sustainability and corporate citizenship.
Since 2018, we have delivered more than $100
million in economic benefits each year to local communities
through philanthropy, volunteerism, and advocacy. Entergy is
headquartered in New Orleans,
Louisiana, and has approximately 12,000 employees.
Entergy Corporation's common stock is listed on the New York
Stock Exchange and NYSE Chicago under the symbol "ETR".
Details regarding Entergy's results of operations, regulatory
proceedings, and other matters are available in this earnings
release, a copy of which will be filed with the SEC, and the
webcast presentation. Both documents are available on Entergy's
Investor Relations website at
investors.entergy.com/investors/events-and-presentations.
Entergy maintains a web page as part of its Investor Relations
website entitled Regulatory and other information, which
provides investors with key updates on certain regulatory
proceedings and important milestones on the execution of its
strategy. While some of this information may be considered material
information, investors should not rely exclusively on this page for
all relevant company information.
For definitions of certain operating measures, as well as GAAP
and non-GAAP financial measures and abbreviations and acronyms used
in the earnings release materials, see Appendix E.
Non-GAAP financial measures
This news release contains non-GAAP financial measures, which
are generally numerical measures of a company's performance,
financial position, or cash flows that either exclude or include
amounts that are not normally excluded or included in the most
directly comparable measure calculated and presented in accordance
with GAAP. Entergy has provided quantitative reconciliations within
this news release of the non-GAAP financial measures to the most
directly comparable GAAP financial measures.
Entergy reports earnings using the non-GAAP measure of Entergy
adjusted earnings, which excludes the effect of certain
"adjustments." Adjustments are unusual or non-recurring items or
events or other items or events that management believes do not
reflect the ongoing business of Entergy, such as significant tax
items, and other items such as certain costs, expenses, or other
specified items. In addition to reporting GAAP earnings on a per
share basis, Entergy reports its adjusted earnings on a per share
basis. These per share measures represent the applicable earnings
amount divided by the diluted average number of common shares
outstanding for the period.
Management uses the non-GAAP financial measures of adjusted
earnings and adjusted earnings per share for, among other things,
financial planning and analysis; reporting financial results to the
board of directors, employees, stockholders, analysts, and
investors; and internal evaluation of financial performance.
Entergy believes that these non-GAAP financial measures provide
useful information to investors in evaluating the ongoing results
of Entergy's business, comparing period to period results, and
comparing Entergy's financial performance to the financial
performance of other companies in the utility sector.
Other non-GAAP measures, including adjusted ROE; adjusted ROE,
excluding affiliate preferred; FFO to adjusted debt; gross
liquidity; net liquidity; adjusted Parent debt to total adjusted
debt; adjusted debt to adjusted capitalization; and adjusted net
debt to adjusted net capitalization are measures Entergy uses
internally for management and board discussions and to gauge the
overall strength of its business. Entergy believes the above data
provides useful information to investors in evaluating Entergy's
ongoing financial results and flexibility and assists investors in
comparing Entergy's credit and liquidity to the credit and
liquidity of others in the utility sector. These metrics are
defined in Appendix E.
These non-GAAP financial measures reflect an additional way of
viewing aspects of Entergy's operations that, when viewed with
Entergy's GAAP results and the accompanying reconciliations to
corresponding GAAP financial measures, provide a more complete
understanding of factors and trends affecting Entergy's business.
These non-GAAP financial measures should not be used to the
exclusion of GAAP financial measures. Investors are strongly
encouraged to review Entergy's consolidated financial statements
and publicly filed reports in their entirety and not to rely on any
single financial measure. Although certain of these measures are
intended to assist investors in comparing Entergy's performance to
other companies in the utility sector, non-GAAP financial measures
are not standardized; therefore, it might not be possible to
compare these financial measures with other companies' non-GAAP
financial measures having the same or similar names.
Cautionary note regarding forward-looking
statements
In this news release, and from time to time, Entergy Corporation
makes certain "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements include, among other things, statements
regarding Entergy's 2024 earnings guidance; financial and
operational outlooks; industrial load growth outlooks; statements
regarding its climate transition and resilience plans, goals,
beliefs, or expectations; and other statements of Entergy's plans,
beliefs, or expectations included in this news release. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which apply only as of the date of this news release.
Except to the extent required by the federal securities laws,
Entergy undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise.
Forward-looking statements are subject to a number of risks,
uncertainties, and other factors that could cause actual results to
differ materially from those expressed or implied in such
forward-looking statements, including (a) those factors discussed
elsewhere in this news release and in Entergy's most recent Annual
Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q,
and Entergy's other reports and filings made under the Securities
Exchange Act of 1934; (b) uncertainties associated with (1) rate
proceedings, formula rate plans, and other cost recovery
mechanisms, including the risk that costs may not be recoverable to
the extent or on the timeline anticipated by the utilities and (2)
implementation of the ratemaking effects of changes in law; (c)
uncertainties associated with (1) realizing the benefits of its
resilience plan, including impacts of the frequency and intensity
of future storms and storm paths, as well as the pace of project
completion and (2) efforts to remediate the effects of major storms
and recover related restoration costs; (d) risks associated with
operating nuclear facilities, including plant relicensing,
operating, and regulatory costs and risks; (e) changes in
decommissioning trust values or earnings or in the timing or cost
of decommissioning Entergy's nuclear plant sites; (f) legislative
and regulatory actions and risks and uncertainties associated with
claims or litigation by or against Entergy and its subsidiaries;
(g) risks and uncertainties associated with executing on business
strategies, including (1) strategic transactions that Entergy or
its subsidiaries may undertake and the risk that any such
transaction may not be completed as and when expected and the risk
that the anticipated benefits of the transaction may not be
realized, and (2) Entergy's ability to meet the rapidly growing
demand for electricity, including from hyperscale data center and
other large customers, and to manage the impacts of such growth on
customers and Entergy's business; (h) direct and indirect impacts
to Entergy or its customers from pandemics, terrorist attacks,
geopolitical conflicts, cybersecurity threats, data security
breaches, or other attempts to disrupt Entergy's business or
operations, and/or other catastrophic events; and (i) effects on
Entergy or its customers of (1) changes in federal, state, or local
laws and regulations and other governmental actions or policies,
including changes in monetary, fiscal, tax, environmental, or
energy policies; (2) changes in commodity markets, capital markets,
or economic conditions; and (3) technological change, including the
costs, pace of development, and commercialization of new and
emerging technologies.
Third quarter 2024 earnings release appendices
and financial statements
Appendices
A: Consolidated results and adjustments
B: Earnings variance analysis
C: Utility operating and financial measures
D: Consolidated financial measures
E: Definitions and abbreviations and acronyms
F: Other GAAP to non-GAAP reconciliations
Financial statements
Consolidating balance sheets
Consolidating income statements
Consolidated cash flow statements
A: Consolidated results and adjustments
Appendix A-1
provides a comparative summary of consolidated earnings, including
a reconciliation of as-reported earnings (GAAP) to adjusted
earnings (non-GAAP).
|
Appendix A-1:
Consolidated earnings - reconciliation of GAAP to non-GAAP
measures
Third quarter and
year-to-date 2024 vs. 2023 (See Appendix A-2 and Appendix A-3 for
details on adjustments)
|
|
Third
quarter
|
Year-to-date
|
|
2024
|
2023
|
Change
|
2024
|
2023
|
Change
|
|
(After-tax, $ in
millions)
|
|
|
|
|
|
|
|
As-reported earnings
(loss)
|
|
|
|
|
|
|
|
Utility
|
787
|
752
|
35
|
1,423
|
1,663
|
(240)
|
|
Parent &
Other
|
(142)
|
(85)
|
(57)
|
(654)
|
(294)
|
(359)
|
|
Consolidated
|
645
|
667
|
(22)
|
769
|
1,369
|
(600)
|
|
|
|
|
|
|
|
|
Less
adjustments
|
|
|
|
|
|
|
|
Utility
|
-
|
(59)
|
59
|
(267)
|
10
|
(277)
|
|
Parent &
Other
|
-
|
32
|
(32)
|
(250)
|
32
|
(282)
|
|
Consolidated
|
-
|
(27)
|
27
|
(517)
|
42
|
(559)
|
|
|
|
|
|
|
|
|
Adjusted earnings
(loss) (non-GAAP)
|
|
|
|
|
|
|
|
Utility
|
787
|
810
|
(24)
|
1,690
|
1,653
|
36
|
|
Parent &
Other
|
(142)
|
(117)
|
(25)
|
(403)
|
(326)
|
(77)
|
|
Consolidated
|
645
|
694
|
(49)
|
1,286
|
1,327
|
(41)
|
|
Estimated weather
impact
|
41
|
135
|
(94)
|
70
|
103
|
(33)
|
|
|
|
|
|
|
|
|
Diluted average number
of common shares outstanding (in millions)
|
216
|
212
|
3
|
215
|
212
|
3
|
|
|
|
|
|
|
|
|
(After-tax, per share
in $) (a)
|
|
|
|
|
|
|
|
As-reported earnings
(loss)
|
|
|
|
|
|
|
|
Utility
|
3.65
|
3.54
|
0.11
|
6.63
|
7.84
|
(1.21)
|
|
Parent &
Other
|
(0.66)
|
(0.40)
|
(0.26)
|
(3.04)
|
(1.39)
|
(1.66)
|
|
Consolidated
|
2.99
|
3.14
|
(0.15)
|
3.58
|
6.45
|
(2.87)
|
|
|
|
|
|
|
|
|
Less
adjustments
|
|
|
|
|
|
|
|
Utility
|
-
|
(0.28)
|
0.28
|
(1.24)
|
0.05
|
(1.29)
|
|
Parent &
Other
|
-
|
0.15
|
(0.15)
|
(1.17)
|
0.15
|
(1.32)
|
|
Consolidated
|
-
|
(0.13)
|
0.13
|
(2.41)
|
0.20
|
(2.61)
|
|
|
|
|
|
|
|
|
Adjusted earnings
(loss) (non-GAAP)
|
|
|
|
|
|
|
|
Utility
|
3.65
|
3.82
|
(0.17)
|
7.87
|
7.79
|
0.08
|
|
Parent &
Other
|
(0.66)
|
(0.55)
|
(0.11)
|
(1.88)
|
(1.54)
|
(0.34)
|
|
Consolidated
|
2.99
|
3.27
|
(0.28)
|
5.99
|
6.25
|
(0.26)
|
|
Estimated weather
impact
|
0.19
|
0.64
|
(0.45)
|
0.33
|
0.48
|
(0.16)
|
|
|
Calculations may differ
due to rounding
|
|
(a)
|
Per share amounts are
calculated by dividing the corresponding earnings (loss) by the
diluted average number of common shares outstanding for the
period.
|
See Appendix B for detailed earnings variance analysis.
Appendix A-2 and Appendix A-3 detail adjustments by business.
Adjustments are included in as-reported earnings consistent with
GAAP but are excluded from adjusted earnings. As a result, adjusted
earnings is considered a non-GAAP measure.
|
Appendix A-2:
Adjustments by driver (shown as positive/(negative) impact on
earnings or EPS)
|
|
Third quarter and
year-to-date 2024 vs. 2023
|
|
Third
quarter
|
Year-to-date
|
|
2024
|
2023
|
Change
|
2024
|
2023
|
Change
|
|
(Pre-tax except for
income taxes and totals; $ in millions)
|
|
|
|
|
|
|
|
Utility
|
|
|
|
|
|
|
|
2Q24 E-LA global
agreement to resolve its FRP extension filing
and other retail matters
|
-
|
-
|
-
|
(151)
|
-
|
(151)
|
|
1Q24 E-AR write-off of
a regulatory asset related to the
opportunity sales proceeding
|
-
|
-
|
-
|
(132)
|
-
|
(132)
|
|
1Q24 E-NO increase in
customer sharing of income tax benefits
as a result of the 2016–2018 IRS audit resolution
|
-
|
-
|
-
|
(79)
|
-
|
(79)
|
|
3Q23 E-AR write-off of
assets related to the ANO stator incident
|
-
|
(78)
|
78
|
-
|
(78)
|
78
|
|
1Q23 impacts from E-LA
storm cost approval and securitization,
including customer sharing (excluding income tax item
below)
|
-
|
-
|
-
|
-
|
(87)
|
87
|
|
Income tax effect on
Utility adjustments above
|
-
|
20
|
(20)
|
95
|
47
|
48
|
|
1Q23 E-LA income tax
benefit resulting from securitization
|
-
|
-
|
-
|
-
|
129
|
(129)
|
|
Total
Utility
|
-
|
(59)
|
59
|
(267)
|
10
|
(277)
|
|
|
|
|
|
|
|
|
Parent &
Other
|
|
|
|
|
|
|
|
2Q24 pension lift
out
|
-
|
-
|
-
|
(317)
|
-
|
(317)
|
|
3Q23 DOE spent nuclear
fuel litigation settlement (IPEC)
|
-
|
40
|
(40)
|
-
|
40
|
(40)
|
|
Income tax effect on
Parent & Other adjustments above
|
-
|
(9)
|
9
|
67
|
(9)
|
75
|
|
Total Parent &
Other
|
-
|
32
|
(32)
|
(250)
|
32
|
(282)
|
|
|
|
|
|
|
|
|
Total
adjustments
|
-
|
(27)
|
27
|
(517)
|
42
|
(559)
|
|
|
|
|
|
|
|
|
(After-tax, per share
in $) (b)
|
|
|
|
|
|
|
|
Utility
|
|
|
|
|
|
|
|
2Q24 E-LA global
agreement to resolve its FRP extension filing
and other retail matters
|
-
|
-
|
-
|
(0.52)
|
-
|
(0.52)
|
|
1Q24 E-AR write-off of
a regulatory asset related to the
opportunity sales proceeding
|
-
|
-
|
-
|
(0.45)
|
-
|
(0.45)
|
|
1Q24 E-NO increase in
customer sharing of income tax benefits
as a result of the 2016–2018 IRS audit resolution
|
-
|
-
|
-
|
(0.27)
|
-
|
(0.27)
|
|
3Q23 E-AR write-off of
assets related to the ANO stator incident
|
-
|
(0.28)
|
0.28
|
-
|
(0.28)
|
0.28
|
|
1Q23 impacts from E-LA
storm cost approval and securitization,
including customer sharing
|
-
|
-
|
-
|
-
|
0.32
|
(0.32)
|
|
Total
Utility
|
-
|
(0.28)
|
0.28
|
(1.24)
|
0.05
|
(1.29)
|
|
|
|
|
|
|
|
|
Parent &
Other
|
|
|
|
|
|
|
|
2Q24 pension lift
out
|
-
|
-
|
-
|
(1.17)
|
-
|
(1.17)
|
|
3Q23 DOE spent nuclear
fuel litigation settlement (IPEC)
|
-
|
0.15
|
(0.15)
|
-
|
0.15
|
(0.15)
|
|
Total Parent &
Other
|
-
|
0.15
|
(0.15)
|
(1.17)
|
0.15
|
(1.32)
|
|
|
|
|
|
|
|
|
Total
adjustments
|
-
|
(0.13)
|
0.13
|
(2.41)
|
0.20
|
(2.61)
|
|
|
|
|
|
|
|
|
|
Calculations may differ
due to rounding
|
|
(b)
|
Per share amounts are
calculated by multiplying the corresponding earnings (loss) by the
estimated income tax rate that is expected to apply and dividing by
the diluted average number of common shares outstanding for the
period.
|
|
Appendix A-3:
Adjustments by income statement line item (shown as positive/
(negative) impact on earnings)
|
|
Third quarter and
year-to-date 2024 vs. 2023
|
|
(Pre-tax except for
income taxes and totals; $ in millions)
|
|
Third
quarter
|
Year-to-date
|
|
2024
|
2023
|
Change
|
2024
|
2023
|
Change
|
|
Utility
|
|
|
|
|
|
|
|
Operating
revenues
|
-
|
-
|
-
|
-
|
31
|
(31)
|
|
Other
O&M
|
-
|
-
|
-
|
(1)
|
-
|
(1)
|
|
Asset write-offs,
impairments, and related charges
|
-
|
(78)
|
78
|
(132)
|
(78)
|
(53)
|
|
Other regulatory
charges (credits) – net
|
-
|
-
|
-
|
(229)
|
(103)
|
(125)
|
|
Other income
(deductions)
|
-
|
-
|
-
|
-
|
(15)
|
15
|
|
Income taxes
|
-
|
20
|
(20)
|
95
|
176
|
(81)
|
|
Total
Utility
|
-
|
(59)
|
59
|
(267)
|
10
|
(277)
|
|
|
|
|
|
|
|
|
Parent &
Other
|
|
|
|
|
|
|
|
Asset write-offs,
impairments, and related charges
|
-
|
40
|
(40)
|
-
|
40
|
(40)
|
|
Other income
(deductions)
|
-
|
-
|
-
|
(317)
|
-
|
(317)
|
|
Income taxes
|
-
|
(9)
|
9
|
67
|
(9)
|
75
|
|
Total Parent &
Other
|
-
|
32
|
(32)
|
(250)
|
32
|
(282)
|
|
|
|
|
|
|
|
|
Total
adjustments
|
-
|
(27)
|
27
|
(517)
|
42
|
(559)
|
|
|
|
|
|
|
|
|
|
Calculations may differ
due to rounding
|
Appendix A-4 provides a comparative summary of OCF by
business.
|
Appendix A-4:
Consolidated operating cash flow
|
|
Third quarter and
year-to-date 2024 vs. 2023
|
|
($ in
millions)
|
|
|
|
|
Third
quarter
|
Year-to-date
|
|
2024
|
2023
|
Change
|
2024
|
2023
|
Change
|
|
Utility
|
1,600
|
1,387
|
213
|
3,225
|
3,301
|
(76)
|
|
Parent &
Other
|
(37)
|
18
|
(55)
|
(117)
|
(70)
|
(47)
|
|
Consolidated
|
1,562
|
1,405
|
157
|
3,109
|
3,231
|
(122)
|
|
|
|
|
|
|
|
|
|
Calculations may differ
due to rounding
|
OCF increased for the quarter primarily due to lower Utility
fuel and purchased power payments, timing of pension contributions,
and higher Utility customer receipts. The increases were partially
offset by higher interest payments and a DOE award received in
third quarter 2023.
B: Earnings variance analysis
Appendix B-1 and Appendix B-2 provide details of current quarter
and year-to-date 2024 versus 2023 as-reported and adjusted earnings
per share variances for Utility and Parent & Other.
|
Appendix B-1:
As-reported and adjusted earnings per share variance analysis (c),
(d), (e)
|
|
Third quarter 2024 vs.
2023
|
|
(After-tax, per share
in $)
|
|
Utility
|
|
Parent &
Other
|
|
Consolidated
|
|
As-
reported
|
Adjusted
|
|
As-
reported
|
Adjusted
|
|
As-
reported
|
Adjusted
|
|
2023 earnings
(loss)
|
3.54
|
3.82
|
|
(0.40)
|
(0.55)
|
|
3.14
|
3.27
|
|
Operating revenue
less:
fuel, fuel-related expenses and gas purchased
for resale; purchased power; and other
regulatory charges (credits) – net
|
(0.09)
|
(0.09)
|
(f)
|
(0.02)
|
(0.02)
|
|
(0.11)
|
(0.11)
|
|
Nuclear refueling
outage expenses
|
0.01
|
0.01
|
|
-
|
-
|
|
0.01
|
0.01
|
|
Other
O&M
|
0.10
|
0.10
|
(g)
|
-
|
-
|
|
0.10
|
0.10
|
|
Asset write-offs,
impairments, and related charges
|
0.28
|
-
|
(h)
|
(0.15)
|
-
|
(i)
|
0.13
|
-
|
|
Decommissioning
|
(0.01)
|
(0.01)
|
|
-
|
-
|
|
(0.01)
|
(0.01)
|
|
Taxes other than income
taxes
|
0.02
|
0.02
|
|
-
|
-
|
|
0.02
|
0.02
|
|
Depreciation and
amortization
|
(0.21)
|
(0.21)
|
(j)
|
-
|
-
|
|
(0.21)
|
(0.21)
|
|
Other income
(deductions)
|
0.15
|
0.15
|
(k)
|
(0.07)
|
(0.07)
|
(l)
|
0.07
|
0.07
|
|
Interest
expense
|
(0.08)
|
(0.08)
|
(m)
|
(0.06)
|
(0.06)
|
(n)
|
(0.14)
|
(0.14)
|
|
Income taxes –
other
|
(0.01)
|
(0.01)
|
|
0.04
|
0.04
|
|
0.03
|
0.03
|
|
Preferred dividend
requirements and
noncontrolling interests
|
0.01
|
0.01
|
|
-
|
-
|
|
0.01
|
0.01
|
|
Share effect
|
(0.06)
|
(0.06)
|
(o)
|
0.01
|
0.01
|
|
(0.05)
|
(0.05)
|
|
2024 earnings
(loss)
|
3.65
|
3.65
|
|
(0.66)
|
(0.66)
|
|
2.99
|
2.99
|
|
|
|
|
|
|
|
|
|
|
|
Calculations may differ
due to rounding
|
|
Appendix B-2:
As-reported and adjusted earnings per share variance analysis (c),
(d), (e)
|
|
Year-to-date 2024 vs.
2023
|
|
(After-tax, per share
in $)
|
|
Utility
|
|
Parent &
Other
|
|
Consolidated
|
|
As-
reported
|
Adjusted
|
|
As-
reported
|
Adjusted
|
|
As-
reported
|
Adjusted
|
|
2023 earnings
(loss)
|
7.84
|
7.79
|
|
(1.39)
|
(1.54)
|
|
6.45
|
6.25
|
|
Operating revenue
less:
fuel, fuel-related expenses and gas purchased
for resale; purchased power; and other
regulatory charges (credits) – net
|
(0.25)
|
0.33
|
(f)
|
(0.05)
|
(0.05)
|
(p)
|
(0.30)
|
0.28
|
|
Nuclear refueling
outage expenses
|
(0.01)
|
(0.01)
|
|
-
|
-
|
|
(0.01)
|
(0.01)
|
|
Other
O&M
|
(0.26)
|
(0.25)
|
(g)
|
0.02
|
0.02
|
|
(0.24)
|
(0.24)
|
|
Asset write-offs,
impairments, and related charges
|
(0.18)
|
-
|
(h)
|
(0.15)
|
-
|
(i)
|
(0.33)
|
-
|
|
Decommissioning
|
(0.03)
|
(0.03)
|
|
-
|
-
|
|
(0.03)
|
(0.03)
|
|
Taxes other than income
taxes
|
(0.02)
|
(0.02)
|
|
-
|
-
|
|
(0.02)
|
(0.02)
|
|
Depreciation and
amortization
|
(0.49)
|
(0.49)
|
(j)
|
-
|
-
|
|
(0.49)
|
(0.49)
|
|
Other income
(deductions)
|
0.85
|
0.78
|
(k)
|
(1.36)
|
(0.18)
|
(l)
|
(0.51)
|
0.60
|
|
Interest
expense
|
(0.19)
|
(0.19)
|
(m)
|
(0.17)
|
(0.17)
|
(n)
|
(0.36)
|
(0.36)
|
|
Income taxes –
other
|
(0.56)
|
0.05
|
(q)
|
0.02
|
0.02
|
|
(0.54)
|
0.07
|
|
Preferred dividend
requirements and
noncontrolling interests
|
0.01
|
0.01
|
|
-
|
-
|
|
0.01
|
0.01
|
|
Share effect
|
(0.08)
|
(0.09)
|
(o)
|
0.04
|
0.02
|
|
(0.04)
|
(0.07)
|
|
2024 earnings
(loss)
|
6.63
|
7.87
|
|
(3.04)
|
(1.88)
|
|
3.58
|
5.99
|
|
|
|
|
|
|
|
|
|
|
|
Calculations may differ
due to rounding
|
|
(c)
|
Utility
operating revenue and Utility income taxes –
other excluded the following for the amortization of
unprotected excess ADIT (net effect was neutral to earnings) ($ in
millions):
|
|
3Q24
|
3Q23
|
YTD24
|
YTD23
|
|
Utility operating
revenue
|
6
|
5
|
22
|
8
|
|
Utility income taxes –
other
|
(6)
|
(5)
|
(22)
|
(8)
|
|
(d)
|
Utility regulatory
charges (credits) – net and Utility preferred dividend
requirements and noncontrolling interests excluded the
following for the effects of HLBV accounting and the approved
deferral (net effect was neutral to earnings) ($
millions):
|
|
3Q24
|
3Q23
|
YTD24
|
YTD23
|
|
Utility regulatory
charges (credits) – net
|
(3)
|
(3)
|
(9)
|
(10)
|
|
Utility preferred
dividend requirements and
noncontrolling interests
|
3
|
3
|
9
|
10
|
|
(e)
|
EPS effect is
calculated by multiplying the pre-tax amount by the estimated
income tax rate that is expected to apply and dividing by diluted
average number of common shares outstanding for the prior period.
Income taxes – other represents income tax differences other
than the income tax effect of individual line items. Share effect
captures the per share impact from the change in diluted average
number of common shares outstanding.
|
|
Utility as-reported
operating revenue less fuel, fuel-related expenses
and gas purchased for resale; purchased power;
and other regulatory
charges (credits) – net variance analysis
2024 vs. 2023 ($
EPS)
|
|
3Q
|
YTD
|
|
Electric volume /
weather
|
(0.41)
|
(0.06)
|
|
Retail electric
price
|
0.32
|
0.79
|
|
2Q24 E-LA global
agreement to resolve its FRP
extension filing and other retail matters
|
-
|
(0.52)
|
|
2Q24 E-MS 2024 FRP
relate-back
|
-
|
0.03
|
|
1Q24 E-NO provision for
increased income tax sharing
|
-
|
(0.27)
|
|
3Q23 E-TX adjustments
to regulatory provisions
|
(0.11)
|
(0.11)
|
|
3Q23 E-TX base rate
case relate-back
|
0.03
|
0.03
|
|
3Q23 SERI depreciation
rate settlement
|
0.14
|
0.14
|
|
1Q23 impacts from E-LA
storm cost approval and
securitization, including customer sharing
|
-
|
0.22
|
|
E-LA wholesale contract
termination
|
(0.03)
|
(0.09)
|
|
Reg. provisions for
decommissioning items
|
(0.03)
|
(0.44)
|
|
Other, including Grand
Gulf recovery
|
-
|
0.03
|
|
Total
|
(0.09)
|
(0.25)
|
|
(f)
|
The third quarter and
year-to-date variances included several drivers. The third quarter
variances included the effects of weather on retail volume, which
was partially offset by a wholesale contract termination (the sales
from this agreement are now included in retail sales). The
variances also reflected regulatory actions including E-AR's FRP,
E-LA's FRP (including riders), and E-MS's FRP. Additionally, the
variances included the net effect of the third quarter 2023
adjustments to regulatory provisions at E-TX, changes in regulatory
provisions for decommissioning items (based on regulatory
treatment, decommissioning-related variances were offset in other
line items and were largely earnings neutral), and a third quarter
2023 regulatory provision recorded at SERI for the refund of excess
depreciation previously collected from customers as a result of
FERC approving lower depreciation rates retroactive to March 2022
(largely offset by a retroactive reduction in depreciation
expense). The year-to-date as-reported variance also reflected
several items that were considered adjustments and excluded from
adjusted earnings. (1) A regulatory charge of $(150 million) ($(111
million) after tax) was recorded in second quarter 2024 as a result
of E-LA reaching an agreement in principle to provide $184 million
of customer credits, including for increasing customer sharing of
income tax benefits resulting from the 2016-2018 IRS audit
resolution (a reserve of $38 million was previously established) to
resolve several open matters. (2) A regulatory charge for $(79
million) ($(57 million) after tax) was recorded in first quarter
2024 by E-NO to provide for sharing additional income tax benefits
from the 2016–2018 IRS audit resolution with customers. (3) E-LA
recorded items in first quarter 2023 which resulted from its
securitization including $(103 million) ($(76 million) after tax)
for a regulatory provision for customer sharing and $31 million
($31 million after tax) for a true-up of carrying charges on storm
costs. The year-to-date variances also included the effects of
E-TX's base rate case relate-back portion in retail electric
price.
|
|
(g)
|
The third quarter
earnings increase from lower Utility other O&M was
largely due to a decrease in power delivery expenses primarily due
to the timing of vegetation maintenance costs and lower
compensation and benefits costs. The year-to-date earnings decrease
from higher Utility other O&M was primarily due to
higher contract costs related to operational performance, customer
service, and organizational health initiatives; higher energy
efficiency costs; the recognition of an E-AR DOE award judgment in
the third quarter 2023; higher bad debt expense; higher MISO
transmission costs; higher non-nuclear generation expenses
primarily due to the scope of work performed in 2024 compared to
2023; and a gain recorded in second quarter 2023 on the partial
sale of a service center as part of an eminent domain proceeding.
The year-to-date earnings decrease was partially offset by lower
power delivery expenses due to the timing of vegetation maintenance
costs.
|
|
(h)
|
The third quarter
as-reported earnings increase from lower Utility asset
write-offs and impairments was primarily due to a $(78 million)
($(59 million) after-tax) E-AR write-off in third quarter 2023,
which resulted from E-AR's agreement to forgo its opportunity to
seek recovery of costs associated with the ANO Stator incident in
2013 (considered an adjustment and excluded from adjusted
earnings). The year-to-date as-reported earnings decrease from
higher Utility asset write-offs and impairments also
reflected the first quarter 2024 write-off of an E-AR regulatory
asset totaling $(132 million) ($(97 million) after tax) related to
the opportunity sales proceeding (considered an adjustment and
excluded from adjusted earnings).
|
|
(i)
|
The third quarter and
year-to-date as-reported earnings decreases from Parent & Other
asset write-offs and impairments were due to recording a
spent fuel litigation settlement related to IPEC in third quarter
2023 (considered an adjustment and excluded from adjusted
earnings).
|
|
(j)
|
The third quarter and
year-to-date earnings decreases from higher Utility depreciation
and amortization were primarily due to a reduction in
depreciation expense in third quarter 2023 resulting from FERC
approval of lower depreciation rates at SERI retroactive to March
2022 (largely offset by a regulatory provision to refund the excess
depreciation previously collected from customers) and higher plant
in service. The year-to-date decrease also reflected the
recognition of depreciation expense from E-TX's 2022 base rate case
relate-back effective January 2024 and an increase in depreciation
rates for E-TX effective June 2023. The year-to-date decrease was
partially offset by lower depreciation rates for SERI effective
June 2023.
|
|
(k)
|
The third quarter and
year-to-date earnings increases from higher Utility other income
(deductions) were largely due to a decrease in non-service
pension costs and changes in nuclear decommissioning trust returns,
including portfolio rebalancing in 2024 (based on regulatory
treatment, decommissioning-related variances are offset in other
line items and were largely earnings neutral). Higher AFUDC–equity
due to higher construction work in progress also contributed to the
increase. The year-to-date increase also reflected higher
intercompany dividend income from affiliate preferred membership
interests related to 2023 storm cost securitizations (largely
offset at P&O), and a $(15 million) ($(15 million) after tax)
charge recorded in first quarter 2023 to account for LURC's 1%
beneficial interest in the storm trust established as part of
E-LA's 2023 storm cost securitization (considered an adjustment and
excluded from adjusted earnings).
|
|
(l)
|
The third quarter and
year-to-date as-reported earnings decreases from lower Parent &
Other other income (deductions) were partly due to changes
in legal provisions and lower non-service pension income. The
year-to-date decrease also reflected a second quarter 2024 $(317
million) ($(250 million) after tax) one-time non-cash pension
settlement charge associated with the purchase of a group annuity
contract to settle certain pension liabilities (considered an
adjustment and excluded from adjusted earnings) as well as higher
intercompany dividends associated with affiliate preferred
membership interests resulting from E-LA's securitizations (largely
offset at Utility).
|
|
(m)
|
The third quarter and
year-to-date earnings decreases from higher Utility interest
expense were primarily due to higher interest rates as well as
higher debt balances.
|
|
(n)
|
The third quarter and
year-to-date earnings decreases from higher Parent & Other
interest expense were primarily due to the issuance of $1.2
billion of junior subordinated debentures in May 2024. The
year-to-date decrease also reflected higher interest on commercial
paper borrowings.
|
|
(o)
|
The third quarter and
year-to-date earnings per share impacts from share effect
reflected higher shares outstanding due to the settlement of equity
forwards in fourth quarter 2023 under the company's ATM program,
option exercises under the company's stock-based compensation
plans, and the dilutive effect of unsettled equity forwards under
the company's ATM program as a result of an increase in the stock
price.
|
|
(p)
|
The year-to-date
earnings decrease from lower P&O net revenue was
primarily due to lower capacity revenues resulting from the first
quarter 2024 termination of a municipal requirements
contract.
|
|
(q)
|
The year-to-date
as-reported earnings decrease from Utility income taxes –
other was largely due to a $129 million income tax benefit
recorded in first quarter 2023 related to storm cost securitization
financing (considered an adjustment and excluded from adjusted
earnings). Excluding this item, there were several individually
insignificant items that partially offset the as-reported
decrease.
|
C: Utility operating and financial measures
Appendix C provides a comparison of Utility operating and financial
measures.
|
Appendix C: Utility
operating and financial measures
|
|
Third quarter and
year-to-date 2024 vs. 2023
|
|
Third
quarter
|
Year-to-date
|
|
2024
|
2023
|
% Change
|
% Weather
adjusted (r)
|
2024
|
2023
|
% Change
|
% Weather
adjusted (r)
|
|
GWh sold
|
|
|
|
|
|
|
|
|
|
Residential
|
11,519
|
12,661
|
(9.0)
|
1.3
|
28,499
|
28,963
|
(1.6)
|
(0.2)
|
|
Commercial
|
8,394
|
8,648
|
(2.9)
|
2.0
|
21,797
|
21,865
|
(0.3)
|
0.7
|
|
Governmental
|
684
|
700
|
(2.3)
|
(0.3)
|
1,883
|
1,887
|
(0.2)
|
0.8
|
|
Industrial
|
15,150
|
13,781
|
9.9
|
9.9
|
42,174
|
39,823
|
5.9
|
5.9
|
|
Total retail
sales
|
35,747
|
35,790
|
(0.1)
|
5.0
|
94,353
|
92,538
|
2.0
|
2.7
|
|
Wholesale
|
3,727
|
3,916
|
(4.8)
|
|
10,737
|
11,589
|
(7.4)
|
|
|
Total sales
|
39,474
|
39,706
|
(0.6)
|
|
105,090
|
104,127
|
0.9
|
|
|
|
|
|
|
|
|
|
|
|
Number of electric
retail customers
|
|
|
|
|
|
|
|
|
|
Residential
|
|
|
|
|
2,601,894
|
2,581,652
|
0.8
|
|
|
Commercial
|
|
|
|
|
371,579
|
370,966
|
0.2
|
|
|
Governmental
|
|
|
|
|
18,015
|
18,008
|
-
|
|
|
Industrial
|
|
|
|
|
49,550
|
50,380
|
(1.6)
|
|
|
Total retail
customers
|
|
|
|
|
3,041,038
|
3,021,006
|
0.7
|
|
|
|
|
|
|
|
|
|
|
|
Other O&M and
nuclear refueling outage exp. per MWh
|
$19.01
|
$19.70
|
(3.5)
|
|
$20.87
|
$20.34
|
2.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculations may differ
due to rounding
|
|
(r)
|
The effects of weather
were estimated using heating degree days and cooling degree days
for the period from certain locations within each jurisdiction and
comparing to "normal" weather based on 20-year historical data. The
models used to estimate weather are updated periodically and are
subject to change.
|
For the quarter, on a weather-adjusted basis, retail sales
increased 5.0 percent. Industrial sales increased 9.9 percent
mainly due to higher sales to large industrial customers primarily
in the petroleum refining industry. Residential sales were 1.3
percent higher and commercial sales increased 2.0 percent.
D: Consolidated financial measures
Appendix D provides
comparative financial measures. Financial measures in this table
include those calculated and presented in accordance with GAAP, as
well as those that are considered non-GAAP financial measures.
|
Appendix D: GAAP and
non-GAAP financial measures
|
|
Third quarter 2024 vs.
2023 (See Appendix F for reconciliation of GAAP to non-GAAP
financial measures)
|
|
|
|
For 12 months ending
September 30
|
2024
|
2023
|
Change
|
|
GAAP measure
|
|
|
|
|
As-reported
ROE
|
12.2 %
|
11.4 %
|
0.8 %
|
|
|
|
|
|
Non-GAAP financial
measure
|
|
|
|
|
Adjusted ROE
|
9.7 %
|
11.1 %
|
(1.4) %
|
|
|
|
|
|
As of September 30 ($
in millions, except where noted)
|
2024
|
2023
|
Change
|
|
GAAP
measures
|
|
|
|
|
Cash and cash
equivalents
|
1,412
|
1,520
|
(108)
|
|
Available revolver
capacity
|
4,345
|
4,346
|
(1)
|
|
Commercial
paper
|
1,122
|
1,351
|
(229)
|
|
Total debt
|
29,100
|
27,619
|
1,481
|
|
Junior subordinated
debentures
|
1,200
|
-
|
1,200
|
|
Securitization
debt
|
249
|
278
|
(29)
|
|
Debt to
capital
|
65 %
|
66 %
|
(1) %
|
|
Storm
escrows
|
336
|
416
|
(80)
|
|
|
|
|
|
Non-GAAP financial
measures ($ in millions, except where noted)
|
|
|
|
|
Adjusted debt to
adjusted capitalization
|
64 %
|
66 %
|
(2) %
|
|
Adjusted net debt to
adjusted net capitalization
|
63 %
|
65 %
|
(2) %
|
|
Gross
liquidity
|
5,757
|
5,865
|
(108)
|
|
Net
liquidity
|
6,361
|
4,978
|
1,383
|
|
Adjusted parent debt to
total adjusted debt
|
20 %
|
20 %
|
1 %
|
|
FFO to adjusted
debt
|
13.5 %
|
12.4 %
|
1.1 %
|
|
|
|
|
|
|
Calculations may differ
due to rounding
|
E: Definitions and abbreviations and acronyms
Appendix
E-1 provides definitions of certain operating measures, as well as
GAAP and non-GAAP financial measures.
|
Appendix E-1:
Definitions
|
|
Utility operating
and financial measures
|
|
GWh sold
|
Total number of GWh
sold to retail and wholesale customers
|
|
Number of electric
retail
customers
|
Average number of
electric customers over the period
|
|
Other O&M and
refueling
outage expense per MWh
|
Other operation and
maintenance expense plus nuclear refueling outage expense per MWh
of total sales
|
|
Financial measures –
GAAP
|
|
As-reported
ROE
|
Last twelve months net
income attributable to Entergy Corp. divided by avg. common
equity
|
|
Debt to
capital
|
Total debt divided by
total capitalization
|
|
Available revolver
capacity
|
Amount of undrawn
capacity remaining on corporate and subsidiary revolvers
|
|
Securitization
debt
|
Debt on the balance
sheet associated with securitization bonds that is secured by
certain future customer collections
|
|
Total debt
|
Sum of short-term and
long-term debt, notes payable, and commercial paper
|
|
Financial measures –
non-GAAP
|
|
Adjusted
capitalization
|
Capitalization
excluding securitization debt
|
|
Adjusted
debt
|
Debt excluding
securitization debt and 50% of junior subordinated
debentures
|
|
Adjusted debt to
adjusted
capitalization
|
Adjusted debt divided
by adjusted capitalization
|
|
Adjusted EPS
|
As-reported earnings
minus adjustments, divided by the diluted average number of common
shares outstanding
|
|
Adjusted net
capitalization
|
Adjusted capitalization
minus cash and cash equivalents
|
|
Adjusted net
debt
|
Adjusted debt minus
cash and cash equivalents
|
|
Adjusted net debt to
adjusted
net capitalization
|
Adjusted net debt
divided by adjusted net capitalization
|
|
Adjusted Parent
debt
|
Entergy Corp. debt,
including amounts drawn on credit revolver and commercial paper
facilities, minus 50% of junior subordinated debentures
|
|
Adjusted Parent debt to
total
adjusted debt
|
Adjusted Parent debt
divided by consolidated adjusted debt
|
|
Adjusted ROE
|
Last twelve months
adjusted earnings divided by average common equity
|
|
Adjusted ROE
excluding
affiliate preferred
|
Last twelve months
adjusted earnings, excluding dividend income from affiliate
preferred as well as the after-tax cost of debt financing for
preferred investment, divided by average common equity adjusted to
exclude the estimated equity associated with the affiliate
preferred investment
|
|
Adjustments
|
Unusual or
non-recurring items or events or other items or events that
management believes do not reflect the ongoing business of Entergy,
such as significant tax items, and other items such as certain
costs, expenses, or other specified items
|
|
FFO
|
OCF minus
AFUDC-borrowed funds, working capital items in OCF (receivables,
fuel inventory, accounts payable, taxes accrued, interest accrued,
deferred fuel costs, and other working capital accounts), 50% of
interest on junior subordinated debentures, and securitization
regulatory charges
|
|
FFO to adjusted
debt
|
Last twelve months FFO
divided by end of period adjusted debt
|
|
Gross
liquidity
|
Sum of cash and cash
equivalents plus available revolver capacity
|
|
Net
liquidity
|
Sum of cash and cash
equivalents, available revolver capacity, escrow accounts available
for certain storm expenses, and equity sold forward but not yet
settled minus commercial paper borrowing
|
Appendix E-2 explains abbreviations and acronyms used in the
quarterly earnings materials.
|
Appendix E-2:
Abbreviations and acronyms
|
|
ADIT
AFUDC –
borrowed funds
AFUDC – equity
AMS
ANO
APSC
ATM
bbl
Bcf/d
bps
CAGR
CCCT
CCGT
CCN
CCNO
CCS
CFO
COD
CT
DCRF
DOE
DRM
E-AR
E-LA
E-MS
E-NO
E-TX
EEI
EPS
ESG
ETR
FERC
FFO
FRP
GAAP
GRIP
GCRR
Grand Gulf or
GGNS
HLBV
|
Accumulated deferred
income taxes
Allowance for borrowed
funds used during
construction
Allowance for equity
funds used during
construction
Advanced metering
system
Arkansas Nuclear One
(nuclear)
Arkansas Public Service
Commission
At the market equity
issuance program
Barrels
Billion cubic feet per
day
Basis points
Compound annual growth
rate
Combined cycle
combustion turbine
Combined cycle gas
turbine
Certificate for
convenience and necessity
Council of the City of
New Orleans
Carbon capture and
sequestration
Cash from
operations
Commercial operation
date
Combustion
turbine
Distribution cost
recovery factor
U.S. Department of
Energy
Distribution Recovery
Mechanism (rider within
E-LA's FRP)
Entergy Arkansas,
LLC
Entergy Louisiana,
LLC
Entergy Mississippi,
LLC
Entergy New Orleans,
LLC
Entergy Texas,
Inc.
Edison Electric
Institute
Earnings per
share
Environmental, social,
and governance
Entergy
Corporation
Federal Energy
Regulatory Commission
Funds from
operations
Formula rate
plan
U.S. generally accepted
accounting principles
Grid Resilience and
Innovation Partnerships
(DOE grant program)
Generation Cost
Recovery Rider
Unit 1 of Grand Gulf
Nuclear Station (nuclear),
90% owned or leased by SERI
Hypothetical
liquidation at book value
|
IPEC
IRS
LCPS
LDC
LNG
LPSC
LTM
LURC
MISO
MMBtu
Moody's
MPSC
MTEP
NBP
NDT
NGL
NYSE
O&M
OCAPS
OCF
OpCo
OPEB
Other O&M
P&O
PMR
PPA
PUCT
RECs
RFP
ROE
RPCR
RSP
S&P
SEC
SERI
TCRF
TRAM
TRM
UPSA
WACC
WTI
|
Indian Point Energy
Center (nuclear)
(sold 5/28/21)
Internal Revenue
Service
Lake Charles Power
Station
Local distribution
company
Liquified natural
gas
Louisiana Public
Service Commission
Last twelve
months
Louisiana Utility
Restoration Corporation
Midcontinent
Independent System Operator, Inc.
Million British thermal
units
Moody's
Ratings
Mississippi Public
Service Commission
MISO Transmission
Expansion Plan
National Balancing
Point
Nuclear decommissioning
trust
Natural gas
liquid
New York Stock
Exchange
Operations and
maintenance
Orange County Advanced
Power Station (CCCT)
Net cash flow provided
by operating activities
Utility operating
company
Other post-employment
benefits
Other non-fuel
operation and maintenance expense
Parent &
Other
Performance Management
Rider
Power purchase
agreement or purchased power agreement
Public Utility
Commission of Texas
Renewable Energy
Certificates
Request for
proposals
Return on
equity
Resilience plan cost
recovery rider
Rate Stabilization Plan
(E-LA gas)
Standard &
Poor's
U.S. Securities and
Exchange Commission
System Energy
Resources, Inc.
Transmission cost
recovery factor
Tax reform adjustment
mechanism
Transmission Recovery
Mechanism (rider within E-LA's FRP)
Unit Power Sales
Agreement
Weighted-average cost
of capital
West Texas
Intermediate
|
F: Other GAAP to non-GAAP reconciliations
Appendix
F-1, Appendix F-2, and Appendix F-3 provide reconciliations of
various non-GAAP financial measures disclosed in this news release
to their most comparable GAAP measure.
|
Appendix F-1:
Reconciliation of GAAP to non-GAAP financial measures –
ROE
|
|
(LTM $ in millions
except where noted)
|
|
Third
quarter
|
|
|
2024
|
2023
|
|
As-reported net income
attributable to Entergy Corporation
|
(A)
|
1,757
|
1,475
|
|
Adjustments
|
(B)
|
360
|
41
|
|
|
|
|
|
Adjusted earnings
(non-GAAP)
|
(C)=(A-B)
|
1,397
|
1,434
|
|
|
|
|
|
Average common equity
(average of beginning and ending balances)
|
(D)
|
14,362
|
12,894
|
|
|
|
|
|
As-reported
ROE
|
(A/D)
|
12.2 %
|
11.4 %
|
|
Adjusted ROE
(non-GAAP)
|
(C/D)
|
9.7 %
|
11.1 %
|
|
|
|
|
|
|
Calculations may differ
due to rounding
|
|
Appendix F-2:
Reconciliation of GAAP to non-GAAP financial measures – FFO to
adjusted debt
|
|
($ in millions except
where noted)
|
|
Third
quarter
|
|
|
2024
|
2023
|
|
Total debt
|
(A)
|
29,100
|
27,619
|
|
Securitization
debt
|
(B)
|
249
|
278
|
|
50% junior subordinated
debentures
|
(C)
|
600
|
-
|
|
Adjusted debt
(non-GAAP)
|
(D)=(A-B-C)
|
28,251
|
27,341
|
|
|
|
|
|
Net cash flow provided
by operating activities, LTM
|
(E)
|
4,172
|
4,007
|
|
|
|
|
|
AFUDC – borrowed funds,
LTM
|
(F)
|
46
|
39
|
|
|
|
|
|
50% of the interest
expense associated with junior subordinated debentures,
LTM
|
(G)
|
(15)
|
-
|
|
|
|
|
|
Working capital items
in net cash flow provided by operating activities, LTM:
|
|
|
|
|
Receivables
|
|
46
|
(6)
|
|
Fuel
inventory
|
|
26
|
(47)
|
|
Accounts
payable
|
|
32
|
(346)
|
|
Taxes
accrued
|
|
39
|
23
|
|
Interest
accrued
|
|
11
|
32
|
|
Deferred fuel
costs
|
|
347
|
1,048
|
|
Other working capital
accounts
|
|
(198)
|
(170)
|
|
Securitization
regulatory charges, LTM
|
|
24
|
32
|
|
Total
|
(H)
|
328
|
566
|
|
|
|
|
|
FFO, LTM
(non-GAAP)
|
(I)=(E-F-G-H)
|
3,814
|
3,402
|
|
|
|
|
|
FFO to adjusted debt
(non-GAAP)
|
(I/D)
|
13.5 %
|
12.4 %
|
|
|
|
|
|
|
|
|
|
|
Calculations may differ
due to rounding
|
|
Appendix F-3:
Reconciliation of GAAP to non-GAAP financial measures – adjusted
debt ratios; gross liquidity; and net liquidity
|
|
($ in millions except
where noted)
|
|
Third
quarter
|
|
|
2024
|
2023
|
|
Total debt
|
(A)
|
29,100
|
27,619
|
|
Securitization
debt
|
(B)
|
249
|
278
|
|
50% junior subordinated
debentures
|
(C)
|
600
|
-
|
|
Adjusted debt
(non-GAAP)
|
(D)=(A-B-C)
|
28,251
|
27,341
|
|
Cash and cash
equivalents
|
(E)
|
1,412
|
1,520
|
|
Adjusted net debt
(non-GAAP)
|
(F)=(D-E)
|
26,839
|
25,821
|
|
|
|
|
|
Commercial
paper
|
(G)
|
1,122
|
1,351
|
|
|
|
|
|
Total
capitalization
|
(H)
|
44,461
|
41,657
|
|
Securitization
debt
|
(B)
|
249
|
278
|
|
Adjusted capitalization
(non-GAAP)
|
(I)=(H-B)
|
44,212
|
41,379
|
|
Cash and cash
equivalents
|
(E)
|
1,412
|
1,520
|
|
Adjusted net
capitalization (non-GAAP)
|
(J)=(I-E)
|
42,800
|
39,859
|
|
|
|
|
|
Total debt to total
capitalization
|
(A/H)
|
65 %
|
66 %
|
|
Adjusted debt to
adjusted capitalization (non-GAAP)
|
(D/I)
|
64 %
|
66 %
|
|
Adjusted net debt to
adjusted net capitalization (non-GAAP)
|
(F/J)
|
63 %
|
65 %
|
|
|
|
|
|
Available revolver
capacity
|
(K)
|
4,345
|
4,346
|
|
|
|
|
|
Storm
escrows
|
(L)
|
336
|
416
|
|
Equity sold forward,
not yet settled (s)
|
(M)
|
1,390
|
48
|
|
|
|
|
|
Gross liquidity
(non-GAAP)
|
(N)=(E+K)
|
5,757
|
5,865
|
|
Net liquidity
(non-GAAP)
|
(N-G+L+M)
|
6,361
|
4,978
|
|
|
|
|
|
Entergy Corporation
notes:
|
|
|
|
|
Due September
2025
|
|
800
|
800
|
|
Due September
2026
|
|
750
|
750
|
|
Due June
2028
|
|
650
|
650
|
|
Due June
2030
|
|
600
|
600
|
|
Due June
2031
|
|
650
|
650
|
|
Due June
2050
|
|
600
|
600
|
|
Junior subordinated
debentures due December 2054
|
|
1,200
|
-
|
|
Total Parent long-term
debt
|
(O)
|
5,250
|
4,050
|
|
Revolver
draw
|
(P)
|
-
|
-
|
|
Unamortized debt
issuance costs and discounts
|
(Q)
|
(47)
|
(39)
|
|
Total parent
debt
|
(R)=(G+O+P+Q)
|
6,326
|
5,363
|
|
|
|
|
|
Adjusted Parent debt
(non-GAAP)
|
(S)=(R-C)
|
5,726
|
5,363
|
|
|
|
|
|
Adjusted parent debt to
total adjusted debt (non-GAAP)
|
(S/D)
|
20 %
|
20 %
|
|
|
|
|
|
|
Calculations may differ
due to rounding
|
|
(s)
|
Reflects adjustments,
including for common dividends between issuance and
settlement.
|
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SOURCE Entergy Corporation