Company affirms guidance and outlooks
NEW
ORLEANS, April 24, 2024 /PRNewswire/ -- Entergy
Corporation (NYSE: ETR) reported first quarter 2024 earnings per
share of 35 cents on an as-reported
basis and $1.08 on an adjusted
(non-GAAP) basis.
"We made very important regulatory progress in recent weeks that
will deliver meaningful value for customers and provide certainty
for all stakeholders," said Drew
Marsh, Entergy Chair and Chief Executive Officer. "We remain
squarely on track with clear line of sight to achieve our
commitments in 2024 and beyond."
Business highlights included the following:
- SERI reached an agreement in principle with the CCNO to resolve
all of the CCNO's complaints against SERI; the settlement is
subject to FERC approval.
- The LPSC approved the first phase of E-LA's resilience and grid
hardening plan of $1.9 billion as
well as a timely recovery mechanism for that investment.
- E-NO received CCNO approval for a resilience investment that
includes a microgrid that will be co-funded by the DOE as part of a
successful GRIP application.
- Grand Gulf completed its 24th refueling outage in
March with a 28-day duration, the plant's shortest since 2007.
- E-NO filed an updated Phase 1 resilience and grid hardening
plan.
- E-LA submitted a filing to the LPSC requesting approval to
construct Bayou Power Station, a
112-megawatt floating natural gas power station.
- E-MS filed its annual formula rate plan.
- S&P Global Ratings revised its outlook to positive and
affirmed all ratings for SERI following SERI's recent agreement in
principle with the CCNO.
- Entergy was named as an Outstanding National Key Accounts
Customer Engagement 2023 Award winner by The Edison Electric
Institute.
|
Consolidated earnings
(GAAP and non-GAAP measures)
|
|
First quarter 2024 vs.
2023 (See Appendix A for reconciliation of GAAP to non-GAAP
measures and description of adjustments)
|
|
First
quarter
|
|
2024
|
2023
|
Change
|
|
(After-tax, $ in
millions)
|
|
|
|
|
As-reported
earnings
|
75
|
311
|
(236)
|
|
Less
adjustments
|
(155)
|
69
|
(223)
|
|
Adjusted earnings
(non-GAAP)
|
230
|
242
|
(12)
|
|
Estimated
weather impact
|
(26)
|
(47)
|
21
|
|
|
|
|
|
(After-tax, per share
in $)
|
|
|
|
|
As-reported
earnings
|
0.35
|
1.47
|
(1.11)
|
|
Less
adjustments
|
(0.72)
|
0.32
|
(1.05)
|
|
Adjusted earnings
(non-GAAP)
|
1.08
|
1.14
|
(0.07)
|
|
Estimated
weather impact
|
(0.12)
|
(0.22)
|
0.10
|
|
|
|
|
|
|
Calculations may differ
due to rounding
|
|
Consolidated results
For first quarter 2024, the company reported earnings of
$75 million, or 35 cents per share, on an as-reported basis, and
earnings of $230 million, or
$1.08 per share, on an adjusted
basis. This compared to first quarter 2023 earnings of $311 million, or $1.47 per share, on an as-reported basis, and
earnings of $242 million, or
$1.14 per share, on 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 segment results
Utility
For first quarter 2024, the Utility business reported earnings
attributable to Entergy Corporation of $195
million, or 91 cents per share, on an as-reported
basis, and earnings of $350 million,
or $1.64 per share, on an
adjusted basis. This compared to first quarter 2023 earnings of
$397 million, or $1.87 per share, on an as-reported basis and
$329 million, or $1.55 per share, on an adjusted basis. Several
drivers contributed to the quarter's results.
First quarter 2024 results included the write off of a
$132 million ($97 million after tax) regulatory asset at
Entergy Arkansas related to the opportunity sales proceeding
(considered an adjustment and excluded from adjusted earnings).
First quarter 2024 results also included a regulatory charge of
$(79 million) ($(57 million) after tax) recorded by Entergy New
Orleans to reflect the company's agreement to share additional
income tax benefits from the 2016–2018 IRS audit resolution with
customers (considered an adjustment and excluded from adjusted
earnings).
In first quarter 2023, as a result of E-LA receiving
securitization proceeds for storm cost recovery, the company
recorded the following (considered adjustments and excluded from
adjusted earnings):
- a $129 million reduction in
income tax expense,
- $31 million of carrying costs on
storm expenditures not previously recorded,
- a $(15 million) reduction in
other income to account for LURC's 1 percent beneficial interest in
a trust established as part of the securitization, and
- a $(103 million) ($(76 million) after tax) regulatory provision to
share the benefits from securitization with customers.
Other drivers for the quarter included higher operating expenses
including other O&M and depreciation expense.
These drivers were partially offset by:
- the net effect of regulatory actions across the operating
companies,
- higher other income (deductions) primarily from affiliate
preferred investments (largely offset at P&O) and lower
non-service pension costs, and
- higher retail sales volume including the effects of
weather.
Appendix C contains additional details on Utility operating and
financial measures.
Parent & Other
For first quarter 2024, Parent & Other reported a loss
attributable to Entergy Corporation of $(120
million), or (56) cents per
share, on an as-reported and an adjusted basis. This compared to a
first quarter 2023 loss of $(86
million), or (41) cents per
share, on an as-reported and an adjusted basis.
The primary driver for the quarter-over-quarter decline was
other income (deductions) due primarily to dividends associated
with affiliate preferred investments (largely offset at
Utility).
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 Wednesday, April 24, 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 www.entergy.com 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 www.entergy.com and by telephone. The telephone replay will
be available through May 2, 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 www.entergy.com/investors.
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 consolidated
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; gross liquidity; net liquidity; net
liquidity, including storm escrows; debt to capital, excluding
securitization debt; net debt to net capital, excluding
securitization debt; parent debt to total debt, excluding
securitization debt; and FFO to debt, excluding securitization
debt, 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. In addition, ROE is included on both an adjusted and an
as-reported basis. 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.
First 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
First quarter 2024 vs.
2023 (See Appendix A-2 and
Appendix A-3 for details on adjustments)
|
|
First
quarter
|
|
2024
|
2023
|
Change
|
|
(After-tax, $ in
millions)
|
|
|
|
|
As-reported earnings
(loss)
|
|
|
|
|
Utility
|
195
|
397
|
(202)
|
|
Parent &
Other
|
(120)
|
(86)
|
(34)
|
|
Consolidated
|
75
|
311
|
(236)
|
|
|
|
|
|
Less
adjustments
|
|
|
|
|
Utility
|
(155)
|
69
|
(223)
|
|
Parent &
Other
|
-
|
-
|
-
|
|
Consolidated
|
(155)
|
69
|
(223)
|
|
|
|
|
|
Adjusted earnings
(loss) (non-GAAP)
|
|
|
|
|
Utility
|
350
|
329
|
21
|
|
Parent &
Other
|
(120)
|
(86)
|
(34)
|
|
Consolidated
|
230
|
242
|
(12)
|
|
Estimated weather
impact
|
(26)
|
(47)
|
21
|
|
|
|
|
|
Diluted average number
of common shares outstanding (in millions)
|
214
|
212
|
2
|
|
|
|
|
|
(After-tax, per share
in $) (a)
|
|
|
|
|
As-reported earnings
(loss)
|
|
|
|
|
Utility
|
0.91
|
1.87
|
(0.96)
|
|
Parent &
Other
|
(0.56)
|
(0.41)
|
(0.15)
|
|
Consolidated
|
0.35
|
1.47
|
(1.11)
|
|
|
|
|
|
Less
adjustments
|
|
|
|
|
Utility
|
(0.72)
|
0.32
|
(1.05)
|
|
Parent &
Other
|
-
|
-
|
-
|
|
Consolidated
|
(0.72)
|
0.32
|
(1.05)
|
|
|
|
|
|
Adjusted earnings
(loss) (non-GAAP)
|
|
|
|
|
Utility
|
1.64
|
1.55
|
0.09
|
|
Parent &
Other
|
(0.56)
|
(0.41)
|
(0.15)
|
|
Consolidated
|
1.08
|
1.14
|
(0.07)
|
|
Estimated weather
impact
|
(0.12)
|
(0.22)
|
0.10
|
|
|
|
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)
|
|
First quarter 2024 vs.
2023
|
|
First
quarter
|
|
2024
|
2023
|
Change
|
|
(Pre-tax except for
income taxes and totals; $ in millions)
|
|
|
|
|
Utility
|
|
|
|
|
E-AR write-off of a
regulatory asset related to the opportunity sales
proceeding
|
(132)
|
-
|
(132)
|
|
E-NO increase in
customer sharing of tax benefits as a result of the 2016–2018 IRS
audit resolution
|
(79)
|
-
|
(79)
|
|
Impacts from storm
cost approval and securitization, including customer sharing
(excluding income tax item below)
|
-
|
(87)
|
87
|
|
Income tax effect on
Utility adjustments above
|
56
|
27
|
29
|
|
E-LA income tax
benefit resulting from securitization
|
-
|
129
|
(129)
|
|
Total
Utility
|
(155)
|
69
|
(223)
|
|
|
|
|
|
Total
adjustments
|
(155)
|
69
|
(223)
|
|
|
|
|
|
(After-tax, per share
in $) (b)
|
|
|
|
|
Utility
|
|
|
|
|
E-AR write-off of a
regulatory asset related to the opportunity sales
proceeding
|
(0.46)
|
-
|
(0.46)
|
|
E-NO increase in
customer sharing of tax benefits as a result of the 2016–2018 IRS
audit resolution
|
(0.27)
|
-
|
(0.27)
|
|
Impacts from storm
cost approval and securitization, including customer
sharing
|
-
|
0.32
|
(0.32)
|
|
Total
Utility
|
(0.72)
|
0.32
|
(1.05)
|
|
|
|
|
|
Total
adjustments
|
(0.72)
|
0.32
|
(1.05)
|
|
|
|
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)
|
|
First quarter 2024 vs.
2023
|
|
(Pre-tax except for
income taxes, and totals; $ in millions)
|
|
First
quarter
|
|
2024
|
2023
|
Change
|
|
Utility
|
|
|
|
|
Operating
revenues
|
-
|
31
|
(31)
|
|
Asset write-offs
and impairments
|
(132)
|
-
|
(132)
|
|
Other regulatory
charges (credits)–net
|
(79)
|
(103)
|
25
|
|
Other income
(deductions)
|
-
|
(15)
|
15
|
|
Income
taxes
|
56
|
156
|
(101)
|
|
Total
Utility
|
(155)
|
69
|
(223)
|
|
|
|
|
|
Total
adjustments
|
(155)
|
69
|
(223)
|
|
|
|
|
|
|
Calculations may differ
due to rounding
|
|
Appendix A-4 provides a comparative summary of OCF by
business.
|
Appendix A-4:
Consolidated operating cash flow
|
|
First quarter 2024 vs.
2023
|
|
($ in
millions)
|
|
First
quarter
|
|
2024
|
2023
|
Change
|
|
Utility
|
515
|
978
|
(463)
|
|
Parent &
Other
|
6
|
(18)
|
24
|
|
Consolidated
|
521
|
960
|
(439)
|
|
|
|
|
|
|
Calculations may differ
due to rounding
|
|
OCF decreased for the quarter due primarily to lower receipts
from Utility customers, including deferred fuel collection in 2023,
and the timing of payments made to vendors.
B: Earnings variance analysis
Appendix B provides details of current quarter 2024 versus 2023
as-reported and adjusted earnings per share variances for Utility
and Parent & Other.
|
Appendix
B:
As-reported and adjusted earnings per share variance
analysis (c), (d),
(e)
|
|
First quarter 2024 vs.
2023
|
|
(After-tax, per share
in $)
|
|
Utility
|
|
Parent &
Other
|
|
Consolidated
|
|
As-
reported
|
Adjusted
|
|
As-
reported
|
Adjusted
|
|
As-
reported
|
Adjusted
|
|
2023 earnings
(loss)
|
1.87
|
1.55
|
|
(0.41)
|
(0.41)
|
|
1.47
|
1.14
|
|
Operating revenue
less:
fuel, fuel-related expenses and gas purchased
for resale; purchased power; and other
regulatory charges (credits)–net
|
0.01
|
0.06
|
(f)
|
(0.01)
|
(0.01)
|
|
-
|
0.05
|
|
Nuclear refueling
outage expense
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
|
Other
O&M
|
(0.21)
|
(0.21)
|
(g)
|
0.02
|
0.02
|
|
(0.19)
|
(0.19)
|
|
Asset write-offs and
impairments
|
(0.46)
|
-
|
(h)
|
-
|
-
|
|
(0.46)
|
-
|
|
Decommissioning
expense
|
(0.01)
|
(0.01)
|
|
-
|
-
|
|
(0.01)
|
(0.01)
|
|
Taxes other than income
taxes
|
(0.03)
|
(0.03)
|
|
-
|
-
|
|
(0.02)
|
(0.02)
|
|
Depreciation/amortization exp.
|
(0.16)
|
(0.16)
|
(i)
|
-
|
-
|
|
(0.16)
|
(0.16)
|
|
Other income
(deductions)
|
0.53
|
0.46
|
(j)
|
(0.12)
|
(0.12)
|
(k)
|
0.41
|
0.34
|
|
Interest
expense
|
(0.03)
|
(0.03)
|
|
(0.04)
|
(0.04)
|
|
(0.08)
|
(0.08)
|
|
Income taxes –
other
|
(0.58)
|
0.03
|
(l)
|
(0.01)
|
(0.01)
|
|
(0.59)
|
0.02
|
|
Preferred dividend
requirements and
noncontrolling interests
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
|
Share effect
|
(0.01)
|
(0.01)
|
|
-
|
-
|
|
(0.01)
|
(0.01)
|
|
2024 earnings
(loss)
|
0.91
|
1.64
|
|
(0.56)
|
(0.56)
|
|
0.35
|
1.08
|
|
|
|
|
|
|
|
|
|
|
|
Calculations may differ
due to rounding
|
|
|
(c)
|
Utility operating revenue and
Utility income taxes – other exclude the following for the
amortization of unprotected excess ADIT affecting customers' bills
(net effect is neutral to earnings) ($ in millions):
|
|
1Q24
|
1Q23
|
|
Utility operating
revenue
|
8
|
(3)
|
|
Utility income taxes –
other
|
(8)
|
3
|
|
(d)
|
Utility regulatory charges (credits)–net
and Utility preferred dividend requirements and noncontrolling
interest exclude the following for the effects of HLBV
accounting and the approved deferral (net effect is neutral to
earnings) ($ millions):
|
|
1Q24
|
1Q23
|
|
Utility regulatory
charges (credits)–net
|
(3)
|
(3)
|
|
Utility preferred
dividend requirements and noncontrolling interest
|
3
|
3
|
|
(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)
|
|
1Q
|
|
Electric volume /
weather
|
0.07
|
|
Retail electric
price
|
0.26
|
|
1Q24 E-NO provision for
increased income tax sharing
|
(0.27)
|
|
1Q23 E-LA provision for
customer sharing of securitization benefits
|
0.36
|
|
1Q23 E-LA true-up of
carrying charges on storm costs
|
(0.14)
|
|
Reg. provisions for
decommissioning items
|
(0.30)
|
|
Other
|
0.04
|
|
Total
|
0.01
|
|
|
|
|
(f)
|
The first quarter
increase reflected items resulting from E-LA's securitization
in first quarter 2023 including a $103 million ($76 million after
tax) regulatory provision for customer sharing and a $31 million
($31 million after tax) true-up of carrying charges on storm costs
(both were considered adjustments and excluded from adjusted
earnings). The increase also reflected regulatory actions,
including E-AR's FRP, E-LA's FRP (including riders), E-MS's FRP,
and E-TX's base rate and relate back increases. Retail sales
volume, including the effects of weather, was also a driver
for the quarter. The variance 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). The increase was
partially offset by a first quarter 2024 regulatory charge for $(79
million) ($(57 million) after tax) recorded by E-NO to reflect the
company's agreement to share additional income tax benefits from
the 2016–2018 IRS audit resolution with customers (considered an
adjustment and excluded from adjusted earnings).
|
|
(g)
|
The first quarter
earnings decrease from higher Utility other O&M
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; higher power delivery expenses
including the acceleration of vegetation management and incident
readiness and response spending; an increase in contract costs
related to operational performance, customer service, and
organizational health initiatives; and higher power generation
expenses due primarily to planned outages at non-nuclear
plants.
|
|
(h)
|
The first quarter
as-reported earnings decrease from higher Utility asset
write-offs and impairments was due to the 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 first quarter
earnings decrease from higher
Utility depreciation/amortization expense was due
primarily to higher plant in service, an increase in depreciation
rates for E-TX effective June 2023, and the recognition of
depreciation expense from E-TX's 2022 base rate case relate
back. The decrease was partially offset by lower depreciation
rates for SERI effective June 2023.
|
|
(j)
|
The first quarter
increase from higher Utility other income (deductions)
was due largely to changes in nuclear decommissioning trust
returns, including portfolio rebalancing in first quarter 2024
(based on regulatory treatment, decommissioning-related variances
are offset in other line items and are largely earnings neutral);
higher intercompany dividend income from affiliated preferred
membership interests related to storm cost securitizations (largely
offset at P&O); and a decrease in non-service pension costs.
The increase also reflected 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 March 2023 storm cost securitization (considered an
adjustment and excluded from adjusted earnings).
|
|
(k)
|
The first quarter
earnings decrease from Parent & Other other income
(deductions) was due largely to
intercompany dividends associated with affiliate preferred
membership interests resulting from E-LA's securitizations (largely
offset at Utility).
|
|
(l)
|
The first quarter
as-reported earnings decrease from Utility income taxes –
other was due largely 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).
|
|
|
C: Utility operating and financial measures
Appendix C provides a comparison of Utility operating and financial
measures.
|
Appendix C: Utility
operating and financial measures
|
|
First quarter 2024 vs.
2023
|
|
First
quarter
|
|
2024
|
2023
|
% Change
|
% Weather
adjusted (m)
|
|
GWh sold
|
|
|
|
|
|
Residential
|
7,758
|
7,276
|
6.6
|
1.4
|
|
Commercial
|
6,223
|
6,248
|
(0.4)
|
(1.2)
|
|
Governmental
|
572
|
577
|
(0.9)
|
0.6
|
|
Industrial
|
12,661
|
12,740
|
(0.6)
|
(0.6)
|
|
Total retail
sales
|
27,214
|
26,841
|
1.4
|
(0.1)
|
|
Wholesale
|
3,958
|
4,502
|
(12.1)
|
|
|
Total sales
|
31,172
|
31,343
|
(0.5)
|
|
|
|
|
|
|
|
Number of electric
retail customers
|
|
|
|
|
|
Residential
|
2,585,994
|
2,565,292
|
0.8
|
|
|
Commercial
|
369,918
|
367,738
|
0.6
|
|
|
Governmental
|
18,136
|
18,094
|
0.2
|
|
|
Industrial
|
43,849
|
44,784
|
(2.1)
|
|
|
Total retail
customers
|
3,017,897
|
2,995,908
|
0.7
|
|
|
|
|
|
|
|
Other O&M and
nuclear refueling outage exp. per MWh
|
$23.06
|
$20.96
|
10.0
|
|
|
|
|
|
|
|
|
|
Calculations may differ
due to rounding
|
|
(m)
|
The effects of weather
were estimated using heating degree days and cooling degree days
for the period from certain locations within each jurisdiction and
comparing to "normal" weather based on 20-year historical data. The
models used to estimate weather are updated periodically and are
subject to change.
|
|
|
For the quarter, on a weather-adjusted basis, retail sales were
essentially flat. Residential sales were 1.4 percent higher and
commercial sales decreased (1.2) percent. Industrial sales
decreased (0.6) percent largely due to lower sales to cogen
customers.
D: Consolidated financial measures
Appendix D provides
comparative financial measures. Financial measures in this table
include those calculated and presented in accordance with GAAP, as
well as those that are considered non-GAAP financial measures.
|
Appendix D: GAAP and
non-GAAP financial measures
|
|
First quarter 2024 vs.
2023 (See Appendix F for reconciliation of GAAP to non-GAAP
financial measures)
|
|
|
|
For 12 months ending
March 31
|
2024
|
2023
|
Change
|
|
GAAP measure
|
|
|
|
|
As-reported
ROE
|
15.4 %
|
9.2 %
|
6.6 %
|
|
|
|
|
|
Non-GAAP financial
measure
|
|
|
|
|
Adjusted
ROE
|
10.4 %
|
10.4 %
|
(0.1) %
|
|
|
|
|
|
As of March 31 ($ in
millions, except where noted)
|
2024
|
2023
|
Change
|
|
GAAP
measures
|
|
|
|
|
Cash and
cash equivalents
|
1,295
|
1,971
|
(676)
|
|
Available
revolver capacity
|
4,245
|
4,191
|
54
|
|
Commercial
paper
|
1,914
|
866
|
1,048
|
|
Total
debt
|
28,493
|
27,658
|
835
|
|
Securitization debt
|
263
|
293
|
(30)
|
|
Debt to
capital
|
65.8 %
|
67.4 %
|
(1.7) %
|
|
Storm
escrows
|
328
|
406
|
(78)
|
|
|
|
|
|
Non-GAAP financial
measures ($ in millions, except where noted)
|
|
|
|
|
Debt to capital,
excluding securitization debt
|
65.6 %
|
67.2 %
|
(1.7) %
|
|
Net debt to net
capital, excluding securitization debt
|
64.5 %
|
65.5 %
|
(1.0) %
|
|
Gross
liquidity
|
5,540
|
6,161
|
(621)
|
|
Net
liquidity
|
3,626
|
5,295
|
(1,669)
|
|
Net liquidity,
including storm escrows
|
3,955
|
5,702
|
(1,747)
|
|
Parent debt to
total debt, excluding securitization debt
|
21.0 %
|
18.4 %
|
2.6 %
|
|
FFO to debt,
excluding securitization debt
|
13.2 %
|
11.4 %
|
1.7 %
|
|
|
|
|
|
|
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
|
12-months rolling 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 EPS
|
As-reported EPS
excluding adjustments
|
|
Adjusted ROE
|
12-months rolling
adjusted net income attributable to Entergy Corp. divided by avg.
common equity
|
|
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
|
|
Debt to capital,
excluding securitization debt
|
Total debt divided by
total capitalization, excluding securitization debt
|
|
FFO
|
OCF less 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), and securitization
regulatory charges
|
|
FFO to debt, excluding
securitization debt
|
12-months rolling FFO
as a percentage of end of period total debt excluding
securitization debt
|
|
Gross
liquidity
|
Sum of cash and
available revolver capacity
|
|
Net debt to net
capital, excl. securitization debt
|
Total debt less cash
and cash equivalents divided by total capitalization less cash and
cash equivalents, excluding securitization debt
|
|
Net
liquidity
|
Sum of cash and
available revolver capacity less commercial paper
borrowing
|
|
Net liquidity,
including storm escrows
|
Sum of cash, available
revolver capacity, and escrow accounts available for certain storm
expenses, less commercial paper borrowing
|
|
Parent debt to total
debt, excl. securitization debt
|
Entergy Corp. debt,
including amounts drawn on credit revolver and commercial paper
facilities, as a percent of consolidated total debt, excluding
securitization debt
|
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
ALJ
AMI
ANO
APSC
ATM
bbl
Bcf/d
bps
CAGR
CCGT
CCN
CCNO
CFO
COD
CWIP
DCRF
DOE
DRM
E-AR
E-LA
E-MS
E-NO
E-TX
EEI
EPS
ESG
ETR
FERC
Fifth
Circuit
FFO
FIN 48
FRP
GAAP
GRIP
GCRR
|
Accumulated deferred
income taxes
Allowance for borrowed
funds used during
construction
Allowance for equity
funds used during
construction
Administrative law
judge
Advanced metering
infrastructure
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 gas
turbine
Certificate for
convenience and necessity
Council of the City of
New Orleans
Cash from
operations
Commercial operation
date
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
U.S. Fifth Circuit
Court of Appeals
Funds from
operations
FASB Interpretation
No.48, "Accounting for
Uncertainty in Income Taxes"
Formula rate
plan
U.S. generally accepted
accounting principles
Grid Resilience and
Innovation Partnerships
(DOE grant program)
Generation Cost
Recovery Rider
|
Grand Gulf or
GGNS
HLBV
IPEC
IRS
LDC
LNG
LPSC
LTM
LURC
MISO
MMBtu
Moody's
MPSC
MTEP
NBP
NDT
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
|
Unit 1 of Grand Gulf
Nuclear Station (nuclear),
90% owned or leased by SERI
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
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
|
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)
|
|
First
quarter
|
|
|
2024
|
2023
|
|
As-reported net income
(loss) attributable to Entergy Corporation
|
(A)
|
2,121
|
1,138
|
|
Adjustments
|
(B)
|
695
|
(155)
|
|
|
|
|
|
Adjusted earnings
(non-GAAP)
|
(A-B)
|
1,426
|
1,293
|
|
|
|
|
|
Average common equity
(average of beginning and ending balances)
|
(C)
|
13,758
|
12,384
|
|
|
|
|
|
As-reported
ROE
|
(A/C)
|
15.4 %
|
9.2 %
|
|
Adjusted ROE
(non-GAAP)
|
[(A-B)/C]
|
10.4 %
|
10.4 %
|
|
|
|
|
|
|
Calculations may differ
due to rounding
|
|
Appendix F-2:
Reconciliation of GAAP to non-GAAP financial measures – debt ratios
excluding securitization debt; gross liquidity; net liquidity; net
liquidity, including storm escrows
|
|
($ in millions except
where noted)
|
|
First
quarter
|
|
|
2024
|
2023
|
|
Total debt
|
(A)
|
28,493
|
27,658
|
|
Less securitization
debt
|
(B)
|
263
|
293
|
|
Total debt, excluding
securitization debt
|
(C)
|
28,230
|
27,365
|
|
Less cash and cash
equivalents
|
(D)
|
1,295
|
1,971
|
|
Net debt, excluding
securitization debt
|
(E)
|
26,935
|
25,395
|
|
|
|
|
|
Commercial
paper
|
(F)
|
1,914
|
866
|
|
|
|
|
|
Total
capitalization
|
(G)
|
43,287
|
41,044
|
|
Less securitization
debt
|
(B)
|
263
|
293
|
|
Total capitalization,
excluding securitization debt
|
(H)
|
43,024
|
40,751
|
|
Less cash and cash
equivalents
|
(D)
|
1,295
|
1,971
|
|
Net capital, excluding
securitization debt
|
(I)
|
41,729
|
38,781
|
|
|
|
|
|
Debt to
capital
|
(A/G)
|
65.8 %
|
67.4 %
|
|
Debt to capital,
excluding securitization debt (non-GAAP)
|
(C/H)
|
65.6 %
|
67.2 %
|
|
Net debt to net
capital, excluding securitization debt (non-GAAP)
|
(E/I)
|
64.5 %
|
65.5 %
|
|
|
|
|
|
Available revolver
capacity
|
(J)
|
4,245
|
4,191
|
|
|
|
|
|
Storm
escrows
|
(K)
|
328
|
406
|
|
|
|
|
|
Gross liquidity
(non-GAAP)
|
(D+J)
|
5,540
|
6,161
|
|
Net liquidity
(non-GAAP)
|
(D+J-F)
|
3,626
|
5,295
|
|
Net liquidity,
including storm escrows (non-GAAP)
|
(D+J-F+K)
|
3,955
|
5,702
|
|
|
|
|
|
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
|
|
Total Entergy
Corporation notes
|
(L)
|
4,050
|
4,050
|
|
Revolver
draw
|
(M)
|
-
|
150
|
|
Unamortized debt
issuance costs and discounts
|
(N)
|
(36)
|
(41)
|
|
Total parent
debt
|
(F+L+M+N)
|
5,928
|
5,024
|
|
Parent debt to total
debt, excluding securitization debt (non-GAAP)
|
[(F+L+M+N)/C]
|
21.0 %
|
18.4 %
|
|
|
|
|
|
|
Calculations may differ
due to rounding
|
|
Appendix F-3:
Reconciliation of GAAP to non-GAAP financial measures – FFO to
debt, excluding securitization debt
|
|
($ in millions except
where noted)
|
|
First
quarter
|
|
|
2024
|
2023
|
|
Total debt
|
(A)
|
28,493
|
27,658
|
|
Less securitization
debt
|
(B)
|
263
|
293
|
|
Total debt, excluding
securitization debt
|
(C)
|
28,230
|
27,365
|
|
|
|
|
|
Net cash flow provided
by operating activities, LTM
|
(D)
|
3,856
|
3,007
|
|
|
|
|
|
AFUDC – borrowed
funds, LTM
|
(E)
|
(41)
|
(31)
|
|
|
|
|
|
Working capital items
in net cash flow provided by operating activities, LTM:
|
|
|
|
|
Receivables
|
|
(63)
|
(8)
|
|
Fuel
inventory
|
|
(10)
|
(37)
|
|
Accounts
payable
|
|
(83)
|
(159)
|
|
Taxes
accrued
|
|
13
|
17
|
|
Interest
accrued
|
|
18
|
2
|
|
Deferred fuel
costs
|
|
409
|
108
|
|
Other working capital
accounts
|
|
(215)
|
(130)
|
|
Securitization
regulatory charges, LTM
|
|
28
|
55
|
|
Total
|
(F)
|
98
|
(152)
|
|
|
|
|
|
FFO, LTM
(non-GAAP)
|
(G)=(D+E-F)
|
3,718
|
3,127
|
|
|
|
|
|
FFO to debt, excluding
securitization debt (non-GAAP)
|
(G/C)
|
13.2 %
|
11.4 %
|
|
|
|
|
|
|
|
|
|
|
Calculations may differ
due to rounding
|
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SOURCE Entergy Corporation
