Company affirms guidance and outlooks
"We made very important regulatory progress in recent weeks that will deliver meaningful value for customers and provide certainty for all stakeholders," said
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
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
First quarter 2024 results included the write off of a
First quarter 2024 results also included a regulatory charge of
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
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
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
Entergy is a Fortune 500 company that powers life for 3 million customers through our operating companies in
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
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,
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 |
(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 |
(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 $) |
||||||||
|
|
Utility |
|
Parent & Other |
|
Consolidated |
|||
|
|
As- reported |
Adjusted |
|
As- reported |
Adjusted |
|
As- reported |
Adjusted |
|
2023 earnings (loss) |
1.87 |
1.55 |
|
(0.41) |
(0.41) |
|
1.47 |
1.14 |
|
Operating revenue less: |
0.01 |
0.06 |
(f) |
(0.01) |
(0.01) |
|
- |
0.05 |
|
Nuclear refueling outage expense |
- |
- |
|
- |
- |
|
- |
- |
|
Other O&M |
(0.21) |
(0.21) |
(g) |
0.02 |
0.02 |
|
(0.19) |
(0.19) |
|
Asset write-offs and impairments |
(0.46) |
- |
(h) |
- |
- |
|
(0.46) |
- |
|
Decommissioning expense |
(0.01) |
(0.01) |
|
- |
- |
|
(0.01) |
(0.01) |
|
Taxes other than income taxes |
(0.03) |
(0.03) |
|
- |
- |
|
(0.02) |
(0.02) |
|
Depreciation/amortization exp. |
(0.16) |
(0.16) |
(i) |
- |
- |
|
(0.16) |
(0.16) |
|
Other income (deductions) |
0.53 |
0.46 |
(j) |
(0.12) |
(0.12) |
(k) |
0.41 |
0.34 |
|
Interest expense |
(0.03) |
(0.03) |
|
(0.04) |
(0.04) |
|
(0.08) |
(0.08) |
|
Income taxes – other |
(0.58) |
0.03 |
(l) |
(0.01) |
(0.01) |
|
(0.59) |
0.02 |
|
Preferred dividend requirements and |
- |
- |
|
- |
- |
|
- |
- |
|
Share effect |
(0.01) |
(0.01) |
|
- |
- |
|
(0.01) |
(0.01) |
|
2024 earnings (loss) |
0.91 |
1.64 |
|
(0.56) |
(0.56) |
|
0.35 |
1.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculations may differ due to rounding |
|
|
|
(c) |
Utility operatingrevenue and Utility income taxes – other exclude the following for the amortization of unprotected excess ADIT affecting customers' bills (net effect is neutral to earnings) ($ 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 |
|
(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 |
|
(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 |
|
(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 |
|
(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 |
|
|
|
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 |
|
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 |
|
|
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 |
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 |
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 |
|
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 |
|
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 |
|
Appendix E-2 explains abbreviations and acronyms used in the quarterly earnings materials.
|
Appendix E-2: Abbreviations and acronyms |
|||
|
ADIT
AFUDC –
AFUDC – equity ALJ AMI ANO APSC ATM bbl Bcf/d bps CAGR CCGT CCN CCNO CFO COD CWIP DCRF
DRM E-AR E-LA E-MS E-NO E-TX EEI EPS ESG ETR
Fifth Circuit FFO
FIN 48 FRP GAAP
GRIP GCRR |
Accumulated deferred income taxes
Allowance for borrowed funds used during
Allowance for equity funds used during Administrative law judge Advanced metering infrastructure Arkansas Nuclear One (nuclear)
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
Cash from operations Commercial operation date Construction work in process Distribution cost recovery factor
Distribution Recovery Mechanism (rider within
Earnings per share Environmental, social, and governance
Funds from operations
FASB Interpretation No.48, "Accounting for Formula rate plan
Grid Resilience and Innovation Partnerships Generation Cost Recovery Rider |
Grand Gulf or HLBV
IPEC
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
SERI TCJA TCRF TRAM
TRM UPSA WACC |
Unit 1 of Hypothetical liquidation at book value
Indian Point Energy Center (nuclear)
Local distribution company Liquified natural gas
Last twelve months
Million British thermal units Moody's Investor Service
MISO Transmission Expansion Plan
Nuclear decommissioning trust
Operations and maintenance Net cash flow provided by operating activities Utility operating company Other post-employment benefits
Other non-fuel operation and maintenance Parent & Other Performance Management Rider
Power purchase agreement or purchased power
Request for proposals Return on equity
Rate Stabilization Plan (
Tax Cuts and Jobs Act of 2017 Transmission cost recovery factor Tax reform adjustment mechanism
Transmission Recovery Mechanism (rider within 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 |
(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 |
( |
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 |
|
|
|
|
|
|
|
|
|
|
|
Due |
|
800 |
800 |
|
Due |
|
750 |
750 |
|
Due |
|
650 |
650 |
|
Due |
|
600 |
600 |
|
Due |
|
650 |
650 |
|
Due |
|
600 |
600 |
|
|
(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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