Important settlements reached; guidance and
outlooks affirmed
NEW
ORLEANS, Aug. 1, 2024 /PRNewswire/ -- Entergy
Corporation (NYSE: ETR) reported second quarter 2024 earnings per
share of 23 cents on an as-reported
basis and $1.92 on an adjusted
(non-GAAP) basis.
"We successfully executed on key operational, customer, and
regulatory fronts," said Drew Marsh,
Entergy Chair and Chief Executive Officer. "Having achieved several
important milestones, we have paved the way to capture the robust
growth in front of us and unlock exceptional value for all of our
stakeholders."
Business highlights included the following:
- E-LA reached an agreement in principle with the LPSC Staff and
other parties to (1) extend and modify the formula rate plan, (2)
establish the base FRP rate change for the 2023 test year, and (3)
provide customer credits, including increasing customer sharing of
tax benefits, to resolve several open matters; the agreement is
subject to LPSC approval.
- SERI reached an agreement in principle with the LPSC Staff that
substantially resolves the major litigation at SERI; the agreement
is subject to LPSC and FERC approval.
- The MPSC approved E-MS's FRP settlement.
- E-TX filed for a CCN to construct two hydrogen-capable power
stations: the Legend Power Station, a 754-megawatt
carbon-capture-enabled CCCT facility, and the Lone Star Power
Station, a
453-megawatt CT facility.
- E-TX filed for a CCN for two owned solar facilities totaling
311 megawatts.
- E-TX submitted a DCRF filing to recover distribution investment
since the rate case test year.
- The LPSC approved an enhanced renewable RFP process for up to 3
gigawatts of renewable resources.
- Entergy and NextEra Energy Resources, LLC announced a joint
development agreement that will accelerate the development of up to
4.5 gigawatts of new, utility-owned solar generation and energy
storage projects.
- E-TX filed Phase I of its Future Ready Resiliency Plan, which
includes $335 million of investment
to be completed over 3 years.
- E-AR and E-NO each submitted their annual FRP filings.
- Entergy was named to The Civic 50, a Points of Light initiative
honoring the 50 most community-minded companies in the U.S.
|
Consolidated earnings
(GAAP and non-GAAP measures)
|
|
Second quarter and
year-to-date 2024 vs. 2023 (See Appendix A for reconciliation of
GAAP to non-GAAP measures and description of
adjustments)
|
|
Second
quarter
|
Year-to-date
|
|
2024
|
2023
|
Change
|
2024
|
2023
|
Change
|
|
(After-tax, $ in
millions)
|
|
|
|
|
|
|
|
As-reported
earnings
|
49
|
391
|
(342)
|
124
|
702
|
(578)
|
|
Less
adjustments
|
(362)
|
-
|
(362)
|
(517)
|
69
|
(586)
|
|
Adjusted earnings
(non-GAAP)
|
411
|
391
|
20
|
641
|
634
|
8
|
|
Estimated
weather impact
|
56
|
15
|
41
|
30
|
(32)
|
62
|
|
|
|
|
|
|
|
|
(After-tax, per share
in $)
|
|
|
|
|
|
|
|
As-reported
earnings
|
0.23
|
1.84
|
(1.62)
|
0.58
|
3.31
|
(2.73)
|
|
Less
adjustments
|
(1.69)
|
-
|
(1.69)
|
(2.41)
|
0.32
|
(2.74)
|
|
Adjusted earnings
(non-GAAP)
|
1.92
|
1.84
|
0.07
|
2.99
|
2.99
|
0.01
|
|
Estimated
weather impact
|
0.26
|
0.07
|
0.19
|
0.14
|
(0.15)
|
0.29
|
|
|
|
|
|
|
|
|
Calculations may differ
due to rounding
|
Consolidated results
For second quarter 2024, the company reported earnings of
$49 million, or 23 cents per share, on an as-reported basis, and
earnings of $411 million, or
$1.92 per share, on an adjusted
basis. This compared to second quarter 2023 earnings of
$391 million, or $1.84 per share, on an as-reported and an
adjusted basis.
Summary discussions by business follow. Additional details,
including information on OCF by business, are provided in Appendix
A. An analysis of variances by business is provided in Appendix
B.
Business results
Utility
For second quarter 2024, the Utility business reported earnings
attributable to Entergy Corporation of $441
million, or $2.06 per
share, on an as-reported basis and $553
million, or $2.58 per
share, on an adjusted basis. This compared to second quarter 2023
earnings of $514 million, or
$2.42 per share, on an as-reported
and an adjusted basis.
Second quarter 2024 results included expenses totaling
$(151 million) ($(112 million) after tax) recorded as a result of
Entergy Louisiana's agreement in principle with the LPSC Staff and
other parties. The settlement, if approved, will extend and
modify the formula rate plan; establish the base FRP rate change
for the 2023 test year; and provide $184
million of customer rate credits, including 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, including all formula rate plans
prior to the 2023 test year (considered an adjustment and excluded
from adjusted earnings).
Other drivers for the quarter included:
- higher retail sales volume including the effects of
weather,
- the net effect of regulatory actions across the operating
companies, and
- lower non-service pension costs included in other income
(deductions).
These drivers were partially offset by:
- higher operating expenses including other O&M and
depreciation, and
- higher interest expense.
On a per share basis, second quarter 2024 results reflected
higher diluted average number of common shares outstanding.
Appendix C contains additional details on Utility operating and
financial measures.
Parent & Other
For second quarter 2024, Parent & Other reported a loss
attributable to Entergy Corporation of
$(392 million), or $(1.83) per share, on an as-reported basis, and a
loss of $(142 million), or
(66) cents per share, on an adjusted
basis. This compared to a second quarter 2023 loss of $(123 million), or (58) cents per share, on
an as-reported and an adjusted basis.
The quarter-over-quarter as-reported decline was primarily due
to a $(317 million) ($(250 million) after tax) settlement charge
recognized as a result of a group annuity contract purchased in
May 2024 to settle certain pension
liabilities, also referred to as the pension lift out (considered
an adjustment and excluded from adjusted earnings).
Higher interest expense was also a driver for the quarter.
On a per share basis, second quarter 2024 results reflected
higher diluted average number of common shares outstanding.
Earnings per share
guidance
Entergy affirmed its 2024 adjusted EPS guidance range of
$7.05 to $7.35. 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, August 1, 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
August 8, 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 and
resilience 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. Metrics defined as
"adjusted" exclude the effect of adjustments as defined
above.
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; current 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 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; (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) the effects of
changes in commodity markets, capital markets, or economic
conditions; and (3) the effects of technological change, including
the costs, pace of development, and commercialization of new and
emerging technologies.
Second 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
Second quarter and
year-to-date 2024 vs. 2023 (See Appendix A-2 and Appendix A-3 for
details on adjustments)
|
|
Second
quarter
|
Year-to-date
|
|
2024
|
2023
|
Change
|
2024
|
2023
|
Change
|
|
(After-tax, $ in
millions)
|
|
|
|
|
|
|
|
As-reported earnings
(loss)
|
|
|
|
|
|
|
|
Utility
|
441
|
514
|
(73)
|
636
|
912
|
(275)
|
|
Parent &
Other
|
(392)
|
(123)
|
(269)
|
(512)
|
(209)
|
(303)
|
|
Consolidated
|
49
|
391
|
(342)
|
124
|
702
|
(578)
|
|
|
|
|
|
|
|
|
Less
adjustments
|
|
|
|
|
|
|
|
Utility
|
(112)
|
-
|
(112)
|
(267)
|
69
|
(336)
|
|
Parent &
Other
|
(250)
|
-
|
(250)
|
(250)
|
-
|
(250)
|
|
Consolidated
|
(362)
|
-
|
(362)
|
(517)
|
69
|
(586)
|
|
|
|
|
|
|
|
|
Adjusted earnings
(loss) (non-GAAP)
|
|
|
|
|
|
|
|
Utility
|
553
|
514
|
39
|
903
|
843
|
60
|
|
Parent &
Other
|
(142)
|
(123)
|
(19)
|
(262)
|
(209)
|
(52)
|
|
Consolidated
|
411
|
391
|
20
|
641
|
634
|
8
|
|
Estimated weather
impact
|
56
|
15
|
41
|
30
|
(32)
|
62
|
|
|
|
|
|
|
|
|
Diluted average number
of common shares outstanding (in millions)
|
214
|
212
|
2
|
214
|
212
|
2
|
|
|
|
|
|
|
|
|
(After-tax, per share
in $) (a)
|
|
|
|
|
|
|
|
As-reported earnings
(loss)
|
|
|
|
|
|
|
|
Utility
|
2.06
|
2.42
|
(0.37)
|
2.97
|
4.30
|
(1.33)
|
|
Parent &
Other
|
(1.83)
|
(0.58)
|
(1.25)
|
(2.39)
|
(0.99)
|
(1.40)
|
|
Consolidated
|
0.23
|
1.84
|
(1.62)
|
0.58
|
3.31
|
(2.73)
|
|
|
|
|
|
|
|
|
Less
adjustments
|
|
|
|
|
|
|
|
Utility
|
(0.52)
|
-
|
(0.52)
|
(1.25)
|
0.32
|
(1.57)
|
|
Parent &
Other
|
(1.17)
|
-
|
(1.17)
|
(1.17)
|
-
|
(1.17)
|
|
Consolidated
|
(1.69)
|
-
|
(1.69)
|
(2.41)
|
0.32
|
(2.74)
|
|
|
|
|
|
|
|
|
Adjusted earnings
(loss) (non-GAAP)
|
|
|
|
|
|
|
|
Utility
|
2.58
|
2.42
|
0.16
|
4.22
|
3.97
|
0.24
|
|
Parent &
Other
|
(0.66)
|
(0.58)
|
(0.08)
|
(1.22)
|
(0.99)
|
(0.24)
|
|
Consolidated
|
1.92
|
1.84
|
0.07
|
2.99
|
2.99
|
0.01
|
|
Estimated weather
impact
|
0.26
|
0.07
|
0.19
|
0.14
|
(0.15)
|
0.29
|
|
|
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)
|
|
Second quarter and
year-to-date 2024 vs. 2023
|
|
Second
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)
|
(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 tax benefits as a result of the 2016–2018 IRS
audit resolution
|
-
|
-
|
-
|
(79)
|
-
|
(79)
|
|
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
|
39
|
-
|
39
|
95
|
27
|
68
|
|
1Q23 E-LA income tax
benefit resulting from securitization
|
-
|
-
|
-
|
-
|
129
|
(129)
|
|
Total
Utility
|
(112)
|
-
|
(112)
|
(267)
|
69
|
(336)
|
|
|
|
|
|
|
|
|
Parent &
Other
|
|
|
|
|
|
|
|
2Q24 pension lift
out
|
(317)
|
-
|
(317)
|
(317)
|
-
|
(317)
|
|
Income tax effect on
Parent & Other adjustment above
|
67
|
-
|
67
|
67
|
-
|
67
|
|
Total Parent &
Other
|
(250)
|
-
|
(250)
|
(250)
|
-
|
(250)
|
|
|
|
|
|
|
|
|
Total
adjustments
|
(362)
|
-
|
(362)
|
(517)
|
69
|
(586)
|
|
|
|
|
|
|
|
|
(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)
|
(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 tax benefits as a result of the 2016–2018 IRS
audit resolution
|
-
|
-
|
-
|
(0.27)
|
-
|
(0.27)
|
|
1Q23 impacts from E-LA
storm cost approval and securitization, including customer
sharing
|
-
|
-
|
-
|
-
|
0.32
|
(0.32)
|
|
Total
Utility
|
(0.52)
|
-
|
(0.52)
|
(1.25)
|
0.32
|
(1.57)
|
|
|
|
|
|
|
|
|
Parent &
Other
|
|
|
|
|
|
|
|
2Q24 pension lift
out
|
(1.17)
|
-
|
(1.17)
|
(1.17)
|
-
|
(1.17)
|
|
Total Parent &
Other
|
(1.17)
|
-
|
(1.17)
|
(1.17)
|
-
|
(1.17)
|
|
|
|
|
|
|
|
|
Total
adjustments
|
(1.69)
|
-
|
(1.69)
|
(2.41)
|
0.32
|
(2.74)
|
|
|
|
|
|
|
|
|
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)
|
|
Second quarter and
year-to-date 2024 vs. 2023
|
|
(Pre-tax except for
income taxes and totals; $ in millions)
|
|
Second
quarter
|
Year-to-date
|
|
2024
|
2023
|
Change
|
2024
|
2023
|
Change
|
|
Utility
|
|
|
|
|
|
|
|
Operating
revenues
|
-
|
-
|
-
|
-
|
31
|
(31)
|
|
Other
O&M
|
(1)
|
-
|
(1)
|
(1)
|
-
|
(1)
|
|
Asset write-offs,
impairments, and related charges
|
-
|
-
|
-
|
(132)
|
-
|
(132)
|
|
Other regulatory
charges (credits) – net
|
(150)
|
-
|
(150)
|
(229)
|
(103)
|
(125)
|
|
Other income
(deductions) – other
|
-
|
-
|
-
|
-
|
(15)
|
15
|
|
Income taxes
|
39
|
-
|
39
|
95
|
156
|
(61)
|
|
Total
Utility
|
(112)
|
-
|
(112)
|
(267)
|
69
|
(336)
|
|
|
|
|
|
|
|
|
Parent &
Other
|
|
|
|
|
|
|
|
Other income
(deductions) – other
|
(317)
|
-
|
(317)
|
(317)
|
-
|
(317)
|
|
Income taxes
|
67
|
-
|
67
|
67
|
-
|
67
|
|
Total Parent &
Other
|
(250)
|
-
|
(250)
|
(250)
|
-
|
(250)
|
|
|
|
|
|
|
|
|
Total
adjustments
|
(362)
|
-
|
(362)
|
(517)
|
69
|
(586)
|
|
|
|
|
|
|
|
|
Calculations may differ
due to rounding
|
Appendix A-4 provides a comparative summary of OCF by
business.
|
Appendix A-4:
Consolidated operating cash flow
|
|
Second quarter and
year-to-date 2024 vs. 2023
|
|
($ in
millions)
|
|
|
|
|
Second
quarter
|
Year-to-date
|
|
2024
|
2023
|
Change
|
2024
|
2023
|
Change
|
|
Utility
|
1,111
|
936
|
174
|
1,626
|
1,915
|
(289)
|
|
Parent &
Other
|
(85)
|
(70)
|
(15)
|
(79)
|
(88)
|
9
|
|
Consolidated
|
1,025
|
866
|
159
|
1,546
|
1,826
|
(280)
|
|
|
|
|
|
|
|
|
Calculations may differ
due to rounding
|
OCF increased for the quarter primarily due to the timing of
payments to vendors and higher customer receipts.
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)
|
|
Second 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)
|
2.42
|
2.42
|
|
(0.58)
|
(0.58)
|
|
1.84
|
1.84
|
|
Operating revenue
less:
fuel, fuel-related expenses and gas purchased for resale; purchased
power; and other regulatory charges (credits) – net
|
(0.16)
|
0.36
|
(f)
|
(0.02)
|
(0.02)
|
|
(0.19)
|
0.33
|
|
Nuclear refueling
outage expenses
|
(0.01)
|
(0.01)
|
|
-
|
-
|
|
(0.01)
|
(0.01)
|
|
Other
O&M
|
(0.15)
|
(0.14)
|
(g)
|
-
|
-
|
|
(0.15)
|
(0.14)
|
|
Asset write-offs,
impairments, and related charges
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
|
Decommissioning
|
(0.01)
|
(0.01)
|
|
-
|
-
|
|
(0.01)
|
(0.01)
|
|
Taxes other than income
taxes
|
(0.01)
|
(0.01)
|
|
-
|
-
|
|
(0.01)
|
(0.01)
|
|
Depreciation and
amortization
|
(0.13)
|
(0.13)
|
(h)
|
-
|
-
|
|
(0.13)
|
(0.13)
|
|
Other income
(deductions)
|
0.18
|
0.18
|
(i)
|
(1.17)
|
0.01
|
(j)
|
(0.99)
|
0.19
|
|
Interest
expense
|
(0.07)
|
(0.07)
|
(k)
|
(0.07)
|
(0.07)
|
(l)
|
(0.14)
|
(0.14)
|
|
Income taxes –
other
|
0.03
|
0.03
|
|
(0.01)
|
(0.01)
|
|
0.02
|
0.02
|
|
Preferred dividend
requirements and noncontrolling interests
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
|
Share effect
|
(0.02)
|
(0.03)
|
|
0.02
|
0.01
|
|
-
|
(0.02)
|
|
2024 earnings
(loss)
|
2.06
|
2.58
|
|
(1.83)
|
(0.66)
|
|
0.23
|
1.92
|
|
|
|
|
|
|
|
|
|
|
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 $)
|
|
Utility
|
|
Parent &
Other
|
|
Consolidated
|
|
As-
reported
|
Adjusted
|
|
As-
reported
|
Adjusted
|
|
As-
reported
|
Adjusted
|
|
2023 earnings
(loss)
|
4.30
|
3.97
|
|
(0.99)
|
(0.99)
|
|
3.31
|
2.99
|
|
Operating revenue
less:
fuel, fuel-related expenses and gas purchased for resale; purchased
power; and other regulatory charges (credits) – net
|
(0.16)
|
0.42
|
(f)
|
(0.03)
|
(0.03)
|
|
(0.19)
|
0.39
|
|
Nuclear refueling
outage expenses
|
(0.02)
|
(0.02)
|
|
-
|
-
|
|
(0.02)
|
(0.02)
|
|
Other
O&M
|
(0.36)
|
(0.36)
|
(g)
|
0.02
|
0.02
|
|
(0.34)
|
(0.34)
|
|
Asset write-offs,
impairments, and related charges
|
(0.46)
|
-
|
(m)
|
-
|
-
|
|
(0.46)
|
-
|
|
Decommissioning
|
(0.02)
|
(0.02)
|
|
-
|
-
|
|
(0.02)
|
(0.02)
|
|
Taxes other than income
taxes
|
(0.04)
|
(0.04)
|
|
-
|
-
|
|
(0.04)
|
(0.04)
|
|
Depreciation and
amortization
|
(0.29)
|
(0.29)
|
(h)
|
-
|
-
|
|
(0.29)
|
(0.29)
|
|
Other income
(deductions)
|
0.71
|
0.64
|
(i)
|
(1.29)
|
(0.11)
|
(j)
|
(0.58)
|
0.53
|
|
Interest
expense
|
(0.11)
|
(0.11)
|
(k)
|
(0.11)
|
(0.11)
|
(l)
|
(0.22)
|
(0.22)
|
|
Income taxes –
other
|
(0.55)
|
0.05
|
(n)
|
(0.02)
|
(0.02)
|
|
(0.57)
|
0.04
|
|
Preferred dividend
requirements and noncontrolling interests
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
|
Share effect
|
(0.03)
|
(0.04)
|
|
0.02
|
0.01
|
|
(0.01)
|
(0.03)
|
|
2024 earnings
(loss)
|
2.97
|
4.22
|
|
(2.39)
|
(1.22)
|
|
0.58
|
2.99
|
|
|
|
|
|
|
|
|
|
|
Calculations may differ
due to rounding
|
|
(c)
|
Utility operating revenue and
Utility income taxes – other excluded the following for the
amortization of unprotected excess ADIT affecting customers' bills
(net effect is neutral to earnings) ($ in millions):
|
|
2Q24
|
2Q23
|
YTD24
|
YTD23
|
|
Utility operating
revenue
|
8
|
5
|
16
|
3
|
|
Utility income taxes –
other
|
(8)
|
(5)
|
(16)
|
(3)
|
|
(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 is neutral
to earnings) ($ millions):
|
|
2Q24
|
2Q23
|
YTD24
|
YTD23
|
|
Utility regulatory
charges (credits) – net
|
(2)
|
(5)
|
(5)
|
(8)
|
|
Utility preferred
dividend requirements and noncontrolling interests
|
2
|
5
|
5
|
8
|
|
(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)
|
|
2Q
|
YTD
|
|
Electric volume /
weather
|
0.28
|
0.35
|
|
Retail electric
price
|
0.23
|
0.49
|
|
2Q24 E-LA global
agreement to resolve its FRP extension filing and other retail
matters
|
(0.52)
|
(0.52)
|
|
2Q24 E-MS 2024 FRP rate
implementation
|
0.03
|
0.03
|
|
1Q24 E-NO provision for
increased income tax sharing
|
-
|
(0.27)
|
|
1Q23 impacts from E-LA
storm cost approval and securitization, including customer
sharing
|
-
|
0.22
|
|
E-LA wholesale contract
termination
|
(0.04)
|
(0.06)
|
|
Reg. provisions for
decommissioning items
|
(0.10)
|
(0.41)
|
|
Other, including Grand
Gulf recovery
|
(0.04)
|
0.01
|
|
Total
|
(0.16)
|
(0.16)
|
|
(f)
|
The second quarter and
year-to-date as-reported decreases included the effects of
recording a $(150 million) ($(111 million) after tax) regulatory
charge as a result of E-LA reaching an agreement in principle
with the LPSC staff and other parties; the terms include $184
million of customer rate credits, including 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 including all formula
rate plans prior to the 2023 test year (considered an adjustment
and excluded from adjusted earnings). The year-to-date as-reported
decrease also reflected a first quarter 2024 regulatory charge for
$(79 million) ($(57 million) after tax) recorded by E-NO to provide
for sharing additional income tax benefits from the 2016–2018 IRS
audit resolution with customers (considered an adjustment and
excluded from adjusted earnings). The year-to-date
as-reported decrease was partially offset by the net effect of
items recorded in first quarter 2023 which resulted from E-LA's
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 (both were considered adjustments and excluded from adjusted
earnings). The second quarter and year-to-date variances also
included the effects of higher retail sales volume, including the
effects of weather; and regulatory actions including E-AR's FRP,
E-LA's FRP (including riders), E-MS's FRP, and E-TX's base rate
case. The variances also reflected a change in regulatory
provisions for decommissioning items (based on regulatory
treatment, decommissioning-related variances are offset in other
lines items and are largely earnings neutral), and a wholesale
contract termination (the sales from this agreement are now
included in retail sales).
|
|
(g)
|
The second quarter and
year-to-date earnings decreases from higher Utility other
O&M were driven by an increase in contract costs related to
operational performance, customer service, and organizational
health initiatives; higher energy efficiency costs primarily due to
the timing of recovery from customers; a second quarter 2023 gain
on the partial sale of a service center as part of an eminent
domain proceeding; and higher MISO transmission costs. The
year-to-date decrease also reflected higher compensation and
benefits costs due primarily to higher healthcare claims activity;
the recognition of an E-AR DOE judgment in first quarter 2023; and
higher nuclear generation expenses, primarily due to a higher scope
of work performed in 2024 as compared to 2023, including during
plant outages.
|
|
(h)
|
The second quarter and
year-to-date earnings decreases from higher
Utility depreciation and amortization were primarily
due to higher plant in service, the recognition of depreciation
from E-TX's 2022 base rate case relate back, and an increase in
depreciation rates for E-TX effective June 2023. The decrease
was partially offset by lower depreciation rates for SERI effective
June 2023.
|
|
(i)
|
The second quarter and
year-to-date earnings increases from higher Utility other
income (deductions) were largely due to 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 are largely earnings
neutral). Lower non-service pension costs 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 in P&O), and a $15 million ($15 million after tax)
charge recorded in the 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).
|
|
(j)
|
The second quarter and
year-to-date as-reported earnings decreases from Parent &
Other other income (deductions) were due to a
$(317 million) ($(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). The year-to-date
decrease also reflected higher intercompany dividends
associated with affiliate preferred membership interests resulting
from E-LA's securitizations (largely offset at
Utility).
|
|
(k)
|
The second 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.
|
|
(l)
|
The second quarter and
year-to-date earnings decreases from higher Parent &
Other interest expense were primarily due to higher
commercial paper balances and the issuance of $1.2 billion of
junior subordinated debentures in May 2024.
|
|
(m)
|
The year-to-date
as-reported earnings decrease from higher Utility asset
write-offs, impairments, and related charges was due to 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).
|
|
(n)
|
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). The year-to-date variance also reflected several
individually insignificant items.
|
C: Utility operating and financial measures
Appendix C provides a comparison of Utility operating and financial
measures.
|
Appendix C: Utility
operating and financial measures
|
|
Second quarter and
year-to-date 2024 vs. 2023
|
|
Second
quarter
|
Year-to-date
|
|
2024
|
2023
|
% Change
|
% Weather
adjusted (o)
|
2024
|
2023
|
% Change
|
% Weather
adjusted (o)
|
|
GWh sold
|
|
|
|
|
|
|
|
|
|
Residential
|
9,557
|
9,027
|
5.9
|
0.3
|
17,315
|
16,303
|
6.2
|
0.8
|
|
Commercial
|
7,236
|
6,969
|
3.8
|
2.0
|
13,460
|
13,217
|
1.8
|
0.4
|
|
Governmental
|
626
|
608
|
3.0
|
1.9
|
1,198
|
1,185
|
1.1
|
1.3
|
|
Industrial
|
13,973
|
13,301
|
5.1
|
5.1
|
26,633
|
26,041
|
2.3
|
2.3
|
|
Total retail
sales
|
31,392
|
29,905
|
5.0
|
2.9
|
58,606
|
56,746
|
3.3
|
1.4
|
|
Wholesale
|
3,052
|
3,171
|
(3.8)
|
|
7,010
|
7,674
|
(8.7)
|
|
|
Total sales
|
34,444
|
33,076
|
4.1
|
|
65,616
|
64,420
|
1.9
|
|
|
|
|
|
|
|
|
|
|
|
Number of electric
retail customers
|
|
|
|
|
|
|
|
|
|
Residential
|
|
|
|
|
2,592,846
|
2,571,543
|
0.8
|
|
|
Commercial
|
|
|
|
|
370,219
|
368,731
|
0.4
|
|
|
Governmental
|
|
|
|
|
18,042
|
18,146
|
(0.6)
|
|
|
Industrial
|
|
|
|
|
42,294
|
43,359
|
(2.5)
|
|
|
Total retail
customers
|
|
|
|
|
3,023,401
|
3,001,779
|
0.7
|
|
|
|
|
|
|
|
|
|
|
|
Other O&M and
nuclear refueling outage exp. per MWh
|
20.99
|
20.53
|
2.2
|
|
$21.98
|
$20.74
|
6.0
|
|
|
|
|
|
|
|
|
|
|
|
Calculations may differ
due to rounding
|
|
(o)
|
The effects of weather
were estimated using heating degree days and cooling degree days
for the period from certain locations within each jurisdiction and
comparing to "normal" weather based on 20-year historical data. The
models used to estimate weather are updated periodically and are
subject to change.
|
For the quarter, on a weather-adjusted basis, retail sales
increased 2.9 percent, with increases across all customer classes.
Industrial sales was the biggest contributor with 5.1 percent
growth mainly due to higher sales to large industrial customers
primarily in the petroleum refining industry.
D: Consolidated financial measures
Appendix D provides
comparative financial measures. Financial measures in this table
include those calculated and presented in accordance with GAAP, as
well as those that are considered non-GAAP financial measures.
|
Appendix D: GAAP and
non-GAAP financial measures
|
|
Second quarter 2024 vs.
2023 (See Appendix F for reconciliation of GAAP to non-GAAP
financial measures)
|
|
|
|
For 12 months ending
June 30
|
2024
|
2023
|
Change
|
|
GAAP measure
|
|
|
|
|
As-reported
ROE
|
12.8 %
|
11.0 %
|
1.8 %
|
|
|
|
|
|
Non-GAAP financial
measure
|
|
|
|
|
Adjusted ROE
|
10.4 %
|
10.6 %
|
(0.2) %
|
|
|
|
|
|
As of June 30 ($ in
millions, except where noted)
|
2024
|
2023
|
Change
|
|
GAAP
measures
|
|
|
|
|
Cash and
cash equivalents
|
1,355
|
1,194
|
161
|
|
Available revolver
capacity
|
4,345
|
4,216
|
129
|
|
Commercial
paper
|
932
|
1,108
|
(176)
|
|
Total debt
|
28,846
|
27,362
|
1,484
|
|
Junior subordinated
debentures
|
1,200
|
-
|
1,200
|
|
Securitization
debt
|
249
|
278
|
(29)
|
|
Debt to
capital
|
66 %
|
67 %
|
(1) %
|
|
Storm
escrows
|
333
|
411
|
(78)
|
|
|
|
|
|
Non-GAAP financial
measures ($ in millions, except where noted)
|
|
|
|
|
Adjusted debt to
adjusted capitalization
|
64 %
|
67 %
|
(2) %
|
|
Adjusted net debt to
adjusted net capitalization
|
63 %
|
66 %
|
(2) %
|
|
Gross
liquidity
|
5,700
|
5,410
|
290
|
|
Net
liquidity
|
5,915
|
4,761
|
1,154
|
|
Adjusted parent debt to
total adjusted debt
|
20 %
|
19 %
|
0 %
|
|
FFO to adjusted
debt
|
13.8 %
|
11.7 %
|
2.1 %
|
|
|
|
|
|
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 total 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
available revolver capacity
|
|
Net
liquidity
|
Sum of cash, 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
|
|
A&G
ADIT
AFUDC –
borrowed funds
AMS
ANO
APSC
ATM
bbl
Bcf/d
bps
CAGR
CCCT
CCGT
CCN
CCNO
CCS
CFO
COD
CWIP
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
|
Administrative and
general expenses
Accumulated deferred
income taxes
Allowance for borrowed
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
Construction work in
process
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
|
HLBV
IPEC
IRS
LDC
LNG
LPSC
LTM
LURC
MISO
MMBtu
Moody's
MPSC
MTEP
NBP
NDT
NGL
NYSE
O&M
OCF
OpCo
OPEB
Other O&M
P&O
PMR
PPA
PUCT
RFP
ROE
RSP
S&P
SEC
SERI
TCJA
TCRF
TRAM
TRM
UPSA
WACC
WTI
|
Hypothetical
liquidation at book value
Indian Point Energy
Center (nuclear)
(sold 5/28/21)
Internal Revenue
Service
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 Investor
Service
Mississippi Public
Service Commission
MISO Transmission
Expansion Plan
National Balancing
Point
Nuclear decommissioning
trust
Natural gas
liquid
New York Stock
Exchange
Operations and
maintenance
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
Request for
proposals
Return on
equity
Rate Stabilization Plan
(E-LA Gas)
Standard &
Poor's
U.S. Securities and
Exchange Commission
System Energy
Resources, Inc.
Tax Cuts and Jobs Act
of 2017
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)
|
|
Second
quarter
|
|
|
2024
|
2023
|
|
As-reported net income
attributable to Entergy Corporation
|
(A)
|
1,779
|
1,369
|
|
Adjustments
|
(B)
|
333
|
49
|
|
|
|
|
|
Adjusted earnings
(non-GAAP)
|
(C)=(A-B)
|
1,446
|
1,320
|
|
|
|
|
|
Average common equity
(average of beginning and ending balances)
|
(D)
|
13,902
|
12,474
|
|
|
|
|
|
As-reported
ROE
|
(A/D)
|
12.8 %
|
11.0 %
|
|
Adjusted ROE
(non-GAAP)
|
(C/D)
|
10.4 %
|
10.6 %
|
|
|
|
|
|
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)
|
|
Second
quarter
|
|
|
2024
|
2023
|
|
Total debt
|
(A)
|
28,846
|
27,362
|
|
Securitization
debt
|
(B)
|
249
|
278
|
|
50% junior subordinated
debentures
|
(C)
|
600
|
-
|
|
Adjusted debt
(non-GAAP)
|
(D)=(A-B-C)
|
27,997
|
27,084
|
|
|
|
|
|
Net cash flow provided
by operating activities, LTM
|
(E)
|
4,015
|
3,595
|
|
|
|
|
|
AFUDC – borrowed
funds, LTM
|
(F)
|
(42)
|
(37)
|
|
|
|
|
|
50% of the interest
expense associated with junior subordinated debentures,
LTM
|
(G)
|
(5)
|
-
|
|
|
|
|
|
Working capital items
in net cash flow provided by operating activities, LTM:
|
|
|
|
|
Receivables
|
|
(151)
|
132
|
|
Fuel
inventory
|
|
17
|
(53)
|
|
Accounts
payable
|
|
(17)
|
(413)
|
|
Taxes
accrued
|
|
52
|
(20)
|
|
Interest
accrued
|
|
36
|
23
|
|
Deferred fuel
costs
|
|
331
|
837
|
|
Other working capital
accounts
|
|
(182)
|
(169)
|
|
Securitization
regulatory charges, LTM
|
|
30
|
40
|
|
Total
|
(H)
|
115
|
377
|
|
|
|
|
|
FFO, LTM
(non-GAAP)
|
(I)=(E+F-G-H)
|
3,862
|
3,182
|
|
|
|
|
|
FFO to adjusted debt
(non-GAAP)
|
(I/D)
|
13.8 %
|
11.7 %
|
|
|
|
|
|
|
|
|
|
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)
|
|
Second
quarter
|
|
|
2024
|
2023
|
|
Total debt
|
(A)
|
28,846
|
27,362
|
|
Securitization
debt
|
(B)
|
249
|
278
|
|
50% junior subordinated
debentures
|
(C)
|
600
|
-
|
|
Adjusted debt
(non-GAAP)
|
(D)=(A-B-C)
|
27,997
|
27,084
|
|
Cash and cash
equivalents
|
(E)
|
1,355
|
1,194
|
|
Adjusted net debt
(non-GAAP)
|
(F)=(D-E)
|
26,642
|
25,889
|
|
|
|
|
|
Commercial
paper
|
(G)
|
932
|
1,108
|
|
|
|
|
|
Total
capitalization
|
(H)
|
43,747
|
40,949
|
|
Securitization
debt
|
(B)
|
249
|
278
|
|
Adjusted capitalization
(non-GAAP)
|
(I)=(H-B)
|
43,498
|
40,671
|
|
Cash and cash
equivalents
|
(E)
|
1,355
|
1,194
|
|
Adjusted net
capitalization (non-GAAP)
|
(J)=(I-E)
|
42,143
|
39,477
|
|
|
|
|
|
Total debt to total
capitalization
|
(A/H)
|
66 %
|
67 %
|
|
Adjusted debt to
adjusted capitalization (non-GAAP)
|
(D/I)
|
64 %
|
67 %
|
|
Adjusted net debt to
adjusted net capitalization (non-GAAP)
|
(F/J)
|
63 %
|
66 %
|
|
|
|
|
|
Available revolver
capacity
|
(K)
|
4,345
|
4,216
|
|
|
|
|
|
Storm
escrows
|
(L)
|
333
|
411
|
|
Equity sold forward,
not yet settled (p)
|
(M)
|
815
|
48
|
|
|
|
|
|
Gross liquidity
(non-GAAP)
|
(N)=(E+K)
|
5,700
|
5,410
|
|
Net liquidity
(non-GAAP)
|
(N-G+L+M)
|
5,915
|
4,761
|
|
|
|
|
|
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)
|
-
|
150
|
|
Unamortized debt
issuance costs and discounts
|
(Q)
|
(48)
|
(40)
|
|
Total parent
debt
|
(R)=(G+O+P+Q)
|
6,134
|
5,268
|
|
|
|
|
|
Adjusted Parent debt
(non-GAAP)
|
(S)=(R-C)
|
5,534
|
5,268
|
|
|
|
|
|
Adjusted parent debt to
total adjusted debt (non-GAAP)
|
(S/D)
|
20 %
|
19 %
|
|
|
|
|
|
Calculations may differ
due to rounding
|
|
(p)
|
Reflects adjustments,
including for common dividends between issuance and
settlement.
|
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SOURCE Entergy Corporation