8-K
ENTERGY LOUISIANA, LLC (ELC)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date earliest event reported) February 16, 2023
| Commission<br><br>File Number | Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, Telephone Number, and IRS Employer Identification No. | Commission<br><br>File Number | Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, Telephone Number, and IRS Employer Identification No. |
|---|---|---|---|
| 1-11299 | ENTERGY CORPORATION | 1-35747 | ENTERGY NEW ORLEANS, LLC |
| (a Delaware corporation)<br><br>639 Loyola Avenue<br><br>New Orleans, Louisiana 70113<br><br>Telephone (504) 576-4000 | (a Texas limited liability company)<br><br>1600 Perdido Street<br><br>New Orleans, Louisiana 70112<br><br>Telephone (504) 670-3700 | ||
| 72-1229752 | 82-2212934 | ||
| 1-10764 | ENTERGY ARKANSAS, LLC | 1-34360 | ENTERGY TEXAS, INC. |
| (a Texas limited liability company)<br><br>425 West Capitol Avenue<br><br>Little Rock, Arkansas 72201<br><br>Telephone (501) 377-4000 | (a Texas corporation)<br><br>2107 Research Forest Drive<br><br>The Woodlands, Texas 77380<br><br>Telephone (409) 981-2000 | ||
| 83-1918668 | 61-1435798 | ||
| 1-32718 | ENTERGY LOUISIANA, LLC | 1-09067 | SYSTEM ENERGY RESOURCES, INC. |
| (a Texas limited liability company)<br><br>4809 Jefferson Highway<br><br>Jefferson, Louisiana 70121<br><br>Telephone (504) 576-4000 | (an Arkansas corporation)<br><br>1340 Echelon Parkway<br><br>Jackson, Mississippi 39213<br><br>Telephone (601) 368-5000 | ||
| 47-4469646 | 72-0752777 | ||
| 1-31508 | ENTERGY MISSISSIPPI, LLC | ||
| (a Texas limited liability company)<br><br>308 East Pearl Street<br><br>Jackson, Mississippi 39201<br><br>Telephone (601) 368-5000 | |||
| 83-1950019 |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Registrant | Title of Class | Trading<br>Symbol | Name of Each Exchange<br>on Which Registered |
|---|---|---|---|
| Entergy Corporation | Common Stock, $0.01 Par Value | ETR | New York Stock Exchange |
| Common Stock, $0.01 Par Value | ETR | NYSE Chicago, Inc. | |
| Entergy Arkansas, LLC | Mortgage Bonds, 4.875% Series due September 2066 | EAI | New York Stock Exchange |
| Entergy Louisiana, LLC | Mortgage Bonds, 4.875% Series due September 2066 | ELC | New York Stock Exchange |
| Entergy Mississippi, LLC | Mortgage Bonds, 4.90% Series due October 2066 | EMP | New York Stock Exchange |
| Entergy New Orleans, LLC | Mortgage Bonds, 5.0% Series due December 2052 | ENJ | New York Stock Exchange |
| Mortgage Bonds, 5.50% Series due April 2066 | ENO | New York Stock Exchange | |
| Entergy Texas, Inc. | 5.375% Series A Preferred Stock, Cumulative, No Par Value (Liquidation Value $25 Per Share) | ETI/PR | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition
On February 16, 2023, Entergy Corporation (the “Company”) issued a press release, which is attached as Exhibit 99.1 hereto and incorporated herein by reference, announcing its results of operations and financial condition for the fourth quarter 2022 (the “Earnings Release”). The information in Exhibit 99.1 is being furnished, not filed, pursuant to this Item 2.02.
Item 7.01. Regulation FD Disclosure
On February 16, 2023, the Company issued the Earnings Release, which is attached as Exhibit 99.1 hereto and incorporated herein by reference, announcing its results of operations and financial condition for the fourth quarter 2022. The information in Exhibit 99.1 is being furnished, not filed, pursuant to this Item 7.01.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
| Exhibit No. | Description |
|---|---|
| 99.1 | Release, dated February 16, 2023, issued by Entergy Corporation |
| 104 | Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Entergy Corporation
Entergy Arkansas, LLC
Entergy Louisiana, LLC
Entergy Mississippi, LLC
Entergy New Orleans, LLC
Entergy Texas, Inc.
System Energy Resources, Inc.
By: /s/ Reginald T. Jackson Reginald T. Jackson Senior Vice President and Chief Accounting Officer
Dated: February16, 2023
Document
NEWS RELEASE
FOR IMMEDIATE RELEASE
February 16, 2023
Entergy reports 2022 financial results, initiates 2023 earnings guidance
Results in top half of guidance range for 7th consecutive year
NEW ORLEANS – Entergy Corporation (NYSE: ETR) reported fourth quarter 2022 earnings per share of 51 cents on an as-reported and adjusted basis (non-GAAP). For the full year, the company reported 2022 earnings per share of $5.37 on an as-reported basis and $6.42 on an adjusted basis.
“We finished 2022 strong and delivered meaningful outcomes for our key stakeholders,” said Drew Marsh, Entergy chairman and chief executive officer. “We have laid out a clear path that will deliver exceptional customer value including clean energy and resilience.”
Business highlights included the following:
•The PUCT approved E-TX’s request to construct Orange County Advanced Power Station.
•E-LA filed its Entergy Future Ready resilience plan with the LPSC seeking approval for the first five years of the ten-year accelerated resilience and hardening plan.
•The LPSC approved E-LA’s Hurricane Ida storm recovery and securitization financing.
•E-AR and the U.S. General Services Administration signed the federal government’s first MOU with a utility to provide regionally-sourced nuclear and renewable energy.
•River Bend Station began its 22nd refueling outage after a 675-day continuous run, the longest in the plant’s history.
•The APSC approved E-AR’s annual FRP.
•EEI awarded Entergy its Emergency Response Award for its mutual assistance efforts in supporting Hurricane Ian restoration.
•Entergy was named to a Dow Jones Sustainability Index for the 21st consecutive year.
•Newsweek named Entergy as one of America’s most responsible companies and one of America’s greatest workplaces for diversity.
| Table of contents | Page |
|---|---|
| News release<br><br>Appendices<br><br>A: Consolidated results and adjustments<br><br>B: Earnings variance analysis<br><br>C: Utility operating and financial measures<br><br>D: EWC operating and financial measures<br><br>E: Consolidated financial measures<br><br>F: Definitions and abbreviations and acronyms<br><br>G: Other GAAP to non-GAAP reconciliations<br><br>Financial statements | 1<br>7<br>8<br>12<br>15<br>16<br>17<br>18<br>20<br>22 |
Entergy reports 2022 financial results
February 16, 2023
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| Consolidated earnings (GAAP and non-GAAP measures) | |||||
|---|---|---|---|---|---|
| Fourth quarter and full year 2022 vs. 2021 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of adjustments) | |||||
| Full year | |||||
| 2021 | Change | 2022 | 2021 | Change | |
| (After-tax, in millions) | |||||
| As-reported earnings | 259 | (152) | 1,103 | 1,118 | (15) |
| Less adjustments | 104 | (105) | (217) | (97) | (120) |
| Adjusted earnings (non-GAAP) | 155 | (48) | 1,320 | 1,215 | 105 |
| Estimated weather impact | (21) | 20 | 86 | (21) | 107 |
| (After-tax, per share in ) | |||||
| As-reported earnings | 1.28 | (0.77) | 5.37 | 5.54 | (0.17) |
| Less adjustments | 0.52 | (0.52) | (1.05) | (0.48) | (0.57) |
| Adjusted earnings (non-GAAP) | 0.76 | (0.25) | 6.42 | 6.02 | 0.40 |
| Estimated weather impact | (0.10) | 0.10 | 0.42 | (0.11) | 0.53 |
All values are in US Dollars.
Calculations may differ due to rounding
Consolidated results
For fourth quarter 2022, the company reported earnings of $106 million, or 51 cents per share, on an as-reported basis, and earnings of $107 million, or 51 cents per share, on an adjusted basis. This compared to fourth quarter 2021 earnings of $259 million, or $1.28 per share, on an as-reported basis, and earnings of $155 million, or 76 cents per share, on an adjusted basis.
For full year 2022, the company reported earnings of $1,103 million, or $5.37 per share, on an as-reported basis, and earnings of $1,320 million, or $6.42 per share, on an adjusted basis. This compared to 2021 earnings of $1,118 million, or $5.54 per share, on an as-reported basis, and earnings of $1,215 million, or $6.02 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 quarterly and full year variances by business is provided in Appendix B.
Business segment results
Utility
For full year 2022, the Utility business reported earnings attributable to Entergy Corporation of $1,407 million, or $6.84 per share, on an as-reported basis, and earnings of $1,686 million, or $8.20 per share, on an adjusted basis. This compared to full year 2021 earnings of $1,490 million, or $7.38 per share, on an as-reported basis, and earnings of $1,464 million, or $7.25 per share, on an adjusted basis. There were several drivers for the year’s results.
2022 results include a regulatory charge of $(551 million) ($(413 million) after tax) that SERI recorded to increase a regulatory liability to reflect the effects of a partial settlement agreement and offer of settlement related to pending proceedings before the FERC (this item was considered an adjustment and excluded from adjusted earnings).
Also in 2022, as a result of receiving approvals for storm cost recovery and issuance of securitized debt at E-LA and E-TX, the companies recorded the following:
•carrying costs on storm expenditures not previously recorded (the equity portion of carrying costs related to prior years was considered an adjustment and excluded from adjusted earnings),
•a reduction in other income to account for LURC’s 1 percent beneficial interest in the trust established as part of E-LA’s securitization (considered an adjustment and excluded from adjusted earnings),
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February 16, 2023
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•a reduction in income tax expense as a result of securitization (considered an adjustment and excluded from adjusted earnings), and
•amounts reserved to share benefits of securitization with customers (considered an adjustment and excluded from adjusted earnings).
Other drivers for the year included:
•the net effect of regulatory actions across the operating companies;
•higher retail sales volume including the impacts of weather;
•various regulatory provisions;
•higher operating expenses including other O&M, depreciation expense, and taxes other than income taxes;
•higher income from intercompany preferred investments (offset at P&O and largely earnings neutral for the consolidated result);
•higher interest expense; and
•higher effective income tax rate.
On a per share basis, 2022 results reflected higher diluted average number of common shares outstanding.
Appendix C contains additional details on Utility operating and financial measures.
Parent & Other
For full year 2022, Parent & Other reported a loss attributable to Entergy Corporation of $(366 million), or $(1.78) per share, on an as-reported and an adjusted basis. This compared to a full year 2021 loss of $(249 million), or $(1.23) per share, on an as-reported basis, and a loss of $(248 million), or $(1.23) per share, on an adjusted basis.
Drivers for the full year included higher interest on intercompany preferred investments (offset at Utility and largely earnings neutral for the consolidated result), an increase in charitable contributions, and higher interest expense.
On a per share basis, 2022 results reflected higher diluted average number of common shares outstanding.
Entergy Wholesale Commodities
For full year 2022, EWC reported earnings attributable to Entergy Corporation of $63 million, or 31 cents per share, on an as-reported basis. This compared to full year 2021 loss attributable to Entergy Corporation of $(123 million), or (61) cents per share, on an as-reported basis. The primary drivers for the year were due to the shutdown and sale of EWC’s nuclear plants.
Specific variances included lower asset write-offs and impairments, and lower operating expenses including other O&M, decommissioning expense, depreciation expense, and nuclear refueling outage expense. These drivers were partially offset by lower revenue, lower earnings on NDTs, and income tax items.
Appendix D contains additional details on EWC operating and financial measures, including reconciliation for non-GAAP EWC adjusted EBITDA.
Earnings per share guidance
Entergy initiated its 2023 adjusted EPS guidance range of $6.55 to $6.85. See webcast presentation for additional details.
The company has provided 2023 earnings guidance with regard to the non-GAAP measure of Entergy adjusted EPS. 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
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February 16, 2023
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during the period. Potential adjustments include the exclusion of regulatory charges related to outstanding regulatory complaints and significant income tax positions.
Earnings teleconference
A teleconference will be held at 10:00 a.m. Central Time on Thursday, February 16, 2023, to discuss Entergy’s quarterly earnings announcement and the company’s financial performance. The teleconference and a replay of the teleconference may be accessed by visiting Entergy’s website at www.entergy.com. For participants who would like to participate via telephone, please register at https://register.vevent.com/register/BI859dfe14dbd944c695a4ea640f532291 to receive the dial-in number along with a unique PIN that is required to access the call (the registration link can also be found on Entergy’s website). The webcast presentation is also being posted to Entergy’s website concurrent with this news release.
Entergy Corporation, a Fortune 500 company headquartered in New Orleans, powers life for 3 million customers through its operating companies across Arkansas, Louisiana, Mississippi, and Texas. Entergy is creating a cleaner, more resilient energy future for everyone with our diverse power generation portfolio, including increasingly carbon-free energy sources. With roots in the Gulf South region for more than a century, Entergy is a recognized leader in corporate citizenship, delivering more than $100 million in economic benefits to local communities through philanthropy and advocacy efforts annually over the last several years. Our approximately 12,000 employees are dedicated to powering life today and for future generations.
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 F.
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.” In 2022, that included the removal of the Entergy Wholesale Commodities segment in light of the company’s exit from the merchant power business. Beginning in 2023, as a result of the successful exit from the merchant power business, Entergy Wholesale Commodities will no longer be a reportable segment and any remaining financial activity from that business will no longer be adjusted in its entirety from Entergy’s results (individual items could be considered for adjustment if they meet the criteria). 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 the results of the EWC segment, 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
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February 16, 2023
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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 EBITDA; 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; FFO to debt, excluding securitization debt; and FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC, 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” (other than EWC’s adjusted EBITDA) exclude the effect of adjustments as defined above. EWC’s adjusted EBITDA represents EWC’s earnings before interest, taxes, and depreciation and amortization, and also excludes decommissioning expense.
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 2023 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
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February 16, 2023
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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 fund 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) impacts from terrorist attacks, geopolitical conflicts, cybersecurity threats, data security breaches, or other attempts to disrupt Entergy’s business or operations, and/or other catastrophic events; (i) the direct and indirect impacts of the COVID-19 pandemic on Entergy and its customers; and (j) 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.
| Media inquiries:<br><br>Neal Kirby<br><br>504-576-4238<br><br>nkirby@entergy.com | Investor relations inquiries:<br><br>Bill Abler<br><br>281-297-5436<br><br>wabler@entergy.com |
|---|
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Fourth quarter 2022 earnings release appendices and financial statements
Appendices
A: Consolidated results and adjustments
B: Earnings variance analysis
C: Utility operating and financial measures
D: EWC operating and financial measures
E: Consolidated financial measures
F: Definitions and abbreviations and acronyms
G: 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 measuresFourth quarter and full year 2022 vs. 2021 (See Appendix A-2 and Appendix A-3 for details on adjustments) | |||||
|---|---|---|---|---|---|
| Full year | |||||
| 2021 | Change | 2022 | 2021 | Change | |
| (After-tax, in millions) | |||||
| As-reported earnings (loss) | |||||
| Utility | 238 | 3 | 1,407 | 1,490 | (84) |
| Parent & Other | (68) | (54) | (366) | (249) | (117) |
| EWC | 89 | (101) | 63 | (123) | 186 |
| Consolidated | 259 | (152) | 1,103 | 1,118 | (15) |
| Less adjustments | |||||
| Utility | 16 | (4) | (280) | 27 | (306) |
| Parent & Other | (1) | 1 | - | (1) | 1 |
| EWC | 89 | (101) | 63 | (123) | 186 |
| Consolidated | 104 | (105) | (217) | (97) | (120) |
| Adjusted earnings (loss) (non-GAAP) | |||||
| Utility | 222 | 7 | 1,686 | 1,464 | 223 |
| Parent & Other | (67) | (55) | (366) | (248) | (118) |
| EWC | - | - | - | - | - |
| Consolidated | 155 | (48) | 1,320 | 1,215 | 105 |
| Estimated weather impact | (21) | 20 | 86 | (21) | 107 |
| Diluted average number of common shares outstanding (in millions) | 203 | 6 | 206 | 202 | 4 |
| (After-tax, per share in ) (a) | |||||
| As-reported earnings (loss) | |||||
| Utility | 1.17 | (0.02) | 6.84 | 7.38 | (0.54) |
| Parent & Other | (0.33) | (0.25) | (1.78) | (1.23) | (0.55) |
| EWC | 0.44 | (0.50) | 0.31 | (0.61) | 0.92 |
| Consolidated | 1.28 | (0.77) | 5.37 | 5.54 | (0.17) |
| Less adjustments | |||||
| Utility | 0.08 | (0.02) | (1.36) | 0.13 | (1.49) |
| Parent & Other | - | - | - | - | - |
| EWC | 0.44 | (0.50) | 0.31 | (0.61) | 0.92 |
| Consolidated | 0.52 | (0.52) | (1.05) | (0.48) | (0.57) |
| Adjusted earnings (loss) (non-GAAP) | |||||
| Utility | 1.09 | - | 8.20 | 7.25 | 0.95 |
| Parent & Other | (0.33) | (0.25) | (1.78) | (1.23) | (0.55) |
| EWC | - | - | - | - | - |
| Consolidated | 0.76 | (0.25) | 6.42 | 6.02 | 0.40 |
| Estimated weather impact | (0.10) | 0.10 | 0.42 | (0.11) | 0.53 |
All values are in US Dollars.
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) | |||||
|---|---|---|---|---|---|
| Fourth quarter and full year 2022 vs. 2021 | |||||
| Full year | |||||
| 2021 | Change | 2022 | 2021 | Change | |
| (Pre-tax except for income taxes, preferred dividend requirements, and totals; in millions) | |||||
| Utility | |||||
| E-LA and E-TX true-up for the equity component of carrying costs for 2020 storms (prior year portion) | - | - | 41 | - | 41 |
| E-LA contribution to the LURC related to securitization | - | - | (32) | - | (32) |
| E-LA customer-sharing of securitization benefit | - | - | (224) | - | (224) |
| SERI litigation settlement regulatory charge | - | - | (551) | - | (551) |
| SERI depreciation adjustment | - | 33 | 33 | - | 33 |
| Gain on sale | - | - | - | 15 | (15) |
| Income tax effect on Utility adjustments above | - | (8) | 183 | (4) | 187 |
| E-LA tax benefit resulting from securitization | - | - | 283 | - | 283 |
| SERI sale-leaseback reg. liability / DTA turnaround | - | (13) | (13) | - | (13) |
| Income tax valuation allowance | (8) | 8 | - | (8) | 8 |
| Provision for uncertain tax position | (5) | 5 | - | (5) | 5 |
| State corporate income tax rate change | 29 | (29) | - | 29 | (29) |
| Total Utility | 16 | (4) | (280) | 27 | (306) |
| Parent & Other | |||||
| State corporate income tax rate change | (1) | 1 | - | (1) | 1 |
| Total Parent & Other | (1) | 1 | - | (1) | 1 |
| EWC | |||||
| Income before income taxes | 112 | (115) | 119 | (146) | 265 |
| Income taxes | (22) | 14 | (54) | 25 | (80) |
| Preferred dividend requirements | (1) | - | (2) | (2) | - |
| Total EWC | 89 | (101) | 63 | (123) | 186 |
| Total adjustments | 104 | (105) | (217) | (97) | (120) |
| (After-tax, per share in ) (b) | |||||
| Utility | |||||
| E-LA and E-TX true-up for the equity component of carrying costs for 2020 storms (prior year portion) | - | - | 0.17 | - | 0.17 |
| E-LA contribution to the LURC related to securitization | - | - | (0.15) | - | (0.15) |
| E-LA customer-sharing of securitization benefit | - | - | (0.81) | - | (0.81) |
| E-LA tax benefit resulting from securitization | - | - | 1.38 | - | 1.38 |
| SERI litigation settlement regulatory charge | - | - | (2.01) | - | (2.01) |
| SERI depreciation adjustment | - | 0.12 | 0.12 | - | 0.12 |
| Gain on sale | - | - | - | 0.05 | (0.05) |
| SERI sale-leaseback reg. liability / DTA turnaround | - | (0.06) | (0.06) | - | (0.06) |
| Income tax valuation allowance | (0.04) | 0.04 | - | (0.04) | 0.04 |
| Provision for uncertain tax position | (0.02) | 0.02 | - | (0.02) | 0.02 |
| State corporate income tax rate change | 0.14 | (0.14) | - | 0.14 | (0.14) |
| Total Utility | 0.08 | (0.02) | (1.36) | 0.13 | (1.49) |
| Parent & Other | |||||
| State corporate income tax rate change | - | - | - | - | - |
| Total Parent & Other | - | - | - | - | - |
| EWC | |||||
| Total EWC | 0.44 | (0.50) | 0.31 | (0.61) | 0.92 |
| Total adjustments | 0.52 | (0.52) | (1.05) | (0.48) | (0.57) |
All values are in US Dollars.
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: Total adjustments by income statement line item (shown as positive/(negative) impact on earnings) | |||||
|---|---|---|---|---|---|
| Fourth quarter and full year 2022 vs. 2021 | |||||
| (Pre-tax except for income taxes, preferred dividend requirements, and totals; in millions) | |||||
| Full year | |||||
| 2021 | Change | 2022 | 2021 | Change | |
| Utility | |||||
| Operating revenues | - | - | 46 | - | 46 |
| Depreciation/amortization exp. | - | 33 | 33 | - | 33 |
| Regulatory charges (credits)–net | - | - | (775) | - | (775) |
| Other income (deductions)–other | - | - | (37) | - | (37) |
| Other O&M | - | - | - | 15 | (15) |
| Income taxes | 16 | (37) | 453 | 12 | 441 |
| Total Utility | 16 | (4) | (280) | 27 | (306) |
| Parent & Other | |||||
| Income taxes | (1) | 1 | - | (1) | 1 |
| Total Parent & Other | (1) | 1 | - | (1) | 1 |
| EWC | |||||
| Operating revenues | 139 | (96) | 343 | 698 | (355) |
| Fuel and fuel-related expenses | (20) | 2 | (98) | (83) | (16) |
| Purchased power | (15) | (4) | (83) | (73) | (11) |
| Nuclear refueling outage expense | (11) | 11 | (18) | (45) | 26 |
| Other O&M | (53) | 44 | (103) | (287) | 184 |
| Asset write-offs and impairments | 82 | (81) | 163 | (264) | 427 |
| Decommissioning expense | (14) | 14 | (28) | (120) | 92 |
| Taxes other than income taxes | (3) | - | (16) | (17) | 1 |
| Depreciation/amortization exp. | (9) | 7 | (14) | (44) | 30 |
| Other income (deductions)–other | 18 | (10) | (18) | 101 | (119) |
| Interest exp. and other charges | (2) | (1) | (8) | (13) | 6 |
| Income taxes | (22) | 14 | (54) | 25 | (80) |
| Preferred dividend requirements | (1) | - | (2) | (2) | - |
| Total EWC | 89 | (101) | 63 | (123) | 186 |
| Total adjustments | 104 | (105) | (217) | (97) | (120) |
All values are in US Dollars.
Calculations may differ due to rounding
Appendix A-4 provides a comparative summary of OCF by business.
| Appendix A-4: Consolidated operating cash flow | |||||
|---|---|---|---|---|---|
| Fourth quarter and full year 2022 vs. 2021 | |||||
| ( in millions) | |||||
| Full year | |||||
| 2021 | Change | 2022 | 2021 | Change | |
| Utility | 420 | 669 | 3,031 | 2,646 | 385 |
| Parent & Other | (84) | (126) | (365) | (238) | (127) |
| EWC | (46) | (57) | (81) | (108) | 27 |
| Consolidated | 290 | 486 | 2,585 | 2,301 | 285 |
All values are in US Dollars.
Calculations may differ due to rounding
OCF increased quarter-over-quarter due primarily to:
•higher receipts from Utility customers,
•lower non-capital storm restoration spending,
•receipt of E-NO’s storm securitization proceeds, and
•lower income tax payments (variances from income tax payments differ by business).
The increase was partially offset by:
•higher pension contributions,
•higher fuel and purchased power payments at the Utility,
•higher other O&M at the Utility, and
•the shutdown of EWC nuclear plants.
Cash flow from affiliate preferred investment dividend activity contributed to the Utility and Parent & Other variances but was neutral for the consolidated result.
OCF increased year-over-year due primarily to:
•higher receipts from Utility customers,
•lower non-capital storm restoration spending,
•receipt of E-NO’s storm securitization proceeds, and
•lower income tax payments (variances from income tax payments differ by business).
The increase was partially offset by:
•higher fuel and purchased power payments at the Utility,
•higher other O&M at the Utility,
•higher pension contributions, and
•the shutdown of EWC nuclear plants.
Cash flow from affiliate preferred investment dividend activity contributed to the Utility and Parent & Other variances but was neutral for the consolidated result.
B: Earnings variance analysis
Appendix B-1 and Appendix B-2 provide details of current quarter and full year 2022 versus 2021 as-reported and adjusted earnings per share variances for Utility, Parent & Other, and EWC.
| Appendix B-1: As-reported and adjusted earnings per share variance analysis (c), (d), (e) | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Fourth quarter 2022 vs. 2021 | |||||||||
| (After-tax, per share in ) | |||||||||
| Parent & Other | EWC | Consolidated | |||||||
| Adjusted | As-reported | Adjusted | As-<br><br>reported | As-<br><br>reported | Adjusted | ||||
| 2021 earnings (loss) | 1.09 | (0.33) | (0.33) | 0.44 | 1.28 | 0.76 | |||
| Operating revenue less: Fuel, fuel-related expenses and gas purchased for resale, Purchased power, and Regulatory charges (credits)–net | 1.02 | (f) | - | - | (0.39) | (g) | 0.63 | 1.02 | |
| Nuclear refueling outage expense | (0.02) | - | - | 0.04 | 0.02 | (0.02) | |||
| Other O&M | (0.18) | (h) | (0.01) | (0.01) | 0.17 | (i) | (0.02) | (0.19) | |
| Asset write-offs and impairments | - | - | - | (0.32) | (j) | (0.32) | - | ||
| Decommissioning expense | (0.01) | - | - | 0.05 | (k) | 0.04 | (0.01) | ||
| Taxes other than income taxes | (0.09) | (l) | - | - | - | (0.09) | (0.09) | ||
| Depreciation/amortization exp. | (0.14) | (m) | - | - | 0.03 | 0.01 | (0.14) | ||
| Other income (deductions)–other | (0.27) | (n) | (0.25) | (0.25) | (o) | (0.03) | (0.55) | (0.52) | |
| Interest exp. and other charges | (0.06) | (p) | (0.02) | (0.02) | - | (0.08) | (0.08) | ||
| Income taxes–other | (0.21) | (q) | 0.01 | 0.01 | (0.05) | (r) | (0.39) | (0.20) | |
| Share effect | (0.04) | 0.02 | 0.02 | - | (0.02) | (0.02) | |||
| 2022 earnings (loss) | 1.09 | (0.58) | (0.58) | (0.06) | 0.51 | 0.51 |
All values are in US Dollars.
h
Calculations may differ due to rounding
| Appendix B-2: As-reported and adjusted earnings variance analysis (c), (d), (e) | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Full year 2022 vs. 2021 | |||||||||
| (After-tax, per share in ) | |||||||||
| Parent & Other | EWC | Consolidated | |||||||
| Adjusted | As-reported | Adjusted | As-<br><br>reported | As-<br><br>reported | Adjusted | ||||
| 2021 earnings (loss) | 7.25 | (1.23) | (1.23) | (0.61) | 5.54 | 6.02 | |||
| Operating revenue less: Fuel, fuel-related expenses and gas purchased for resale, Purchased power, and Regulatory charges (credits)–net | 3.52 | (f) | - | - | (1.49) | (g) | (0.59) | 3.52 | |
| Nuclear refueling outage expense | (0.04) | - | - | 0.11 | (s) | 0.07 | (0.04) | ||
| Other O&M | (0.84) | (h) | (0.04) | (0.04) | 0.71 | (i) | (0.22) | (0.88) | |
| Asset write-offs and impairments | - | - | - | 1.67 | (j) | 1.67 | - | ||
| Decommissioning expense | (0.04) | - | - | 0.36 | (k) | 0.32 | (0.04) | ||
| Taxes other than income taxes | (0.27) | (l) | - | - | - | (0.27) | (0.27) | ||
| Depreciation/amortization exp. | (0.52) | (m) | 0.01 | 0.01 | 0.11 | (t) | (0.28) | (0.51) | |
| Other income (deductions)–other | (0.36) | (n) | (0.43) | (0.43) | (o) | (0.46) | (u) | (1.43) | (0.79) |
| Interest exp. and other charges | (0.21) | (p) | (0.10) | (0.10) | (v) | 0.02 | (0.29) | (0.31) | |
| Income taxes–other | (0.16) | (q) | (0.02) | (0.02) | (0.11) | (r) | 0.95 | (0.18) | |
| Preferred dividend and noncontrolling interest | (0.01) | - | - | - | (0.01) | (0.01) | |||
| Share effect | (0.12) | (w) | 0.03 | 0.03 | - | (0.09) | (0.09) | ||
| 2022 earnings (loss) | 8.20 | (1.78) | (1.78) | 0.31 | 5.37 | 6.42 |
All values are in US Dollars.
Calculations may differ due to rounding
(c)Utility operating revenue / regulatory charges (credits) and Utility income taxes-other exclude the following for the return of unprotected excess ADIT to customers (net effect is neutral to earnings) ($ in millions):
| 4Q22 | 4Q21 | YTD22 | YTD21 | |
|---|---|---|---|---|
| Utility operating revenue / regulatory charges (credits) | 5 | (16) | (45) | (88) |
| Utility income taxes-other | (5) | 16 | 45 | 88 |
(d)Utility regulatory charges (credits) 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):
| 4Q22 | 4Q21 | YTD22 | YTD21 | |
|---|---|---|---|---|
| Utility regulatory charges (credits) | 14 | 18 | 26 | 18 |
| Utility preferred dividend requirements and noncontrolling interest | (14) | (18) | (26) | (18) |
(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 tax effect of individual line items.
| Utility as-reported operating revenue less fuel, fuel-related expenses and gas purchased for resale; purchased power; and regulatory charges (credits)-net variance analysis2022 vs. 2021 ( EPS) | |
|---|---|
| FY | |
| Electric volume / weather | 1.02 |
| Retail electric price | 1.30 |
| 1Q21 reversal of reg. provision for E-AR’s FRP 2019 netting adj. | (0.16) |
| 1Q22 reg. provisions for true-up of E-LA and E-TX cost of debt from 2020 storms | 0.07 |
| 2Q22 increase in provision for potential refunds in SERI complaints | (2.01) |
| 2Q22 provision for customer sharing of E-LA securitization benefits | (0.81) |
| 2Q22 reg. provisions for true-up of E-LA and E-TX equity carrying costs on 2020 storms | 0.26 |
| 3Q21 MSS-4 ROE reserve adjustment | (0.07) |
| Reg. provision for decommissioning items | 0.75 |
| Retail gas distribution volume | 0.08 |
| Grand Gulf recovery | 0.25 |
| Other | 0.22 |
| Total | 0.90 |
All values are in US Dollars.
(f)The fourth quarter and full year earnings increases were driven by regulatory actions including E-AR’s FRP; E-LA’s FRP (including riders); E-MS’s FRP and various riders; E-NO’s FRP; and E-TX’s TCRF and DCRF. The increases also reflected higher volume, including the effects of weather. Other drivers included: changes in regulatory provisions for decommissioning items (the difference between expense and trust earnings plus costs collected in revenue, largely earnings neutral), higher Grand Gulf revenue, and higher volume for the natural gas distribution business. The full year variance also reflected various regulatory provisions and regulatory reserves (detailed in the table to the right), including the second quarter 2022 $551 million ($413 million after-tax) regulatory charge recorded by SERI to reflect the effects of a partial settlement agreement and offer of settlement related to proceedings pending before the FERC (this item was considered an adjustment and excluded from adjusted earnings), E-LA’s $224 million ($165 million after-tax) regulatory provision for sharing the benefits of E-LA’s securitization with customers (considered an adjustment and excluded from adjusted earnings), the regulatory provision for the true-up of E-LA and E-TX cost of debt from 2020 storms, and $59 million in revenues ($54 million after-tax) for the equity component of carrying charges on those storm costs ($46 million ($42 million after-tax) associated with prior years was considered an adjustment and excluded from adjusted earnings).
(g)The fourth quarter and full year earnings decreases included lower revenues from the shutdown of Palisades in May 2022. The full year decrease also reflected the shutdown of Indian Point 3 in April 2021, as well as lower realized wholesale energy price and volume.
(h)The fourth quarter and full year earnings decreases from higher Utility other O&M were primarily due to higher power delivery expenses, including vegetation management, reliability, and safety and training costs; higher nuclear generation spending due to higher scope of work and higher labor costs; an increase in non-nuclear generation expenses primarily due to higher costs associated with materials and supplies; higher customer service center support costs; higher bad debt expense; and higher energy efficiency expenses. Also contributing to the full year decrease was a $15 million pretax gain on the sale of an asset in the third quarter 2021 (considered an adjustment and excluded from adjusted earnings).
(i)The fourth quarter and full year earnings increases from lower EWC other O&M were due to the shutdown of Palisades in May 2022. The full year increase also reflected the shutdown of Indian Point 3 in April 2021 and lower severance and retention costs.
(j)The fourth quarter earnings decrease from higher EWC asset write-offs and impairments was due primarily to a gain from the settlement of spent fuel litigation at Indian Point recorded in fourth quarter 2021. The full year earnings increase from
lower EWC asset write-offs and impairments also reflected the $340 million ($268 million net-of-tax) loss from the sale of Indian Point in May 2021 and a $165 million ($129 million net-of-tax) gain from the sale of Palisades in June 2022.
(k)The fourth quarter and full year earnings increases from lower EWC decommissioning expense were due to the sale of Palisades in June 2022. The full year increase also reflected the sale of Indian Point in May 2021.
(l)The fourth quarter and full year earnings decreases from higher Utility taxes other than income taxes were due to higher ad valorem taxes and franchise taxes. The full year decrease also reflected higher employment taxes.
(m)The fourth quarter and full year earnings decreases from higher Utility depreciation/amortization expense were due primarily to higher plant in service and updated depreciation rates for Grand Gulf, effective March 1, 2022. This was partially offset by an adjustment to SERI’s depreciation expense that resulted from FERC’s December 2022 order on the sale-leaseback complaint (considered an adjustment and excluded from adjusted earnings).
(n)The fourth quarter and full year earnings decreases from lower Utility other income (deductions)–other included differences in NDT returns (based on regulatory treatment, decommissioning-related variances are largely earnings neutral, as described in footnote f), partially offset by higher intercompany dividend income related to the new intercompany investment in preferred stock resulting from E-LA’s securitization compared to the previous affiliate preferred investment that was liquidated (largely offset in P&O). The full year decrease also reflected two items recorded in second quarter 2022 as a result of E-LA securitization: a $32 million reduction to interest and investment income (loss) was recorded to account for LURC’s 1% beneficial interest in the trust established as part of the securitization (considered an adjustment and excluded from adjusted earnings), and an adjustment to AFUDC-equity for the approved equity component of carrying costs on 2020 storms not previously recorded (the portion relating to prior years was considered an adjustment and excluded from adjusted earnings). Recognition of carrying charges on storm restoration costs also contributed to the full year decrease.
(o)The fourth quarter and full year earnings decreases from lower Parent & Other other income (deductions)–other were due to the timing of charitable contributions and higher interest related to the intercompany investment in preferred stock resulting from E-LA’s securitization compared to the previous affiliate preferred investment that was liquidated (largely offset in Utility).
(p)The fourth quarter and full year earnings decrease from higher Utility interest expense and other charges was due primarily to higher debt balances.
(q)The fourth quarter earnings decrease from Utility income taxes-other reflected several items. In fourth quarter 2021, the company recorded: a $29 million decrease in income tax expense as result of the enactment of Louisiana and Arkansas corporate income tax rate changes, an $8 million valuation allowance as a result of incurring storm restoration costs which impaired the realizability of certain net operating loss carryovers, and a $5 million provision for an uncertain tax position associated with state tax matters (the portion of these three items that related to prior years was considered an adjustment and excluded from adjusted earnings). In fourth quarter 2022, a $13 million increase in income tax expense was recorded as a result of FERC’s sale-leaseback order (this item was considered an adjustment and excluded from adjusted earnings). Additionally, amortization of protected excess ADIT was higher in fourth quarter 2021 as a result of storm damage, and other miscellaneous adjustments of $(6 million) were recorded in fourth quarter 2022 compared to $10 million in fourth quarter 2021. The full year as-reported earnings increase also reflected a second quarter 2022 $283 million income tax benefit related to securitization financing (this item was considered an adjustment and excluded from adjusted earnings).
(r)The fourth quarter and full year earnings decreases from EWC income taxes-other were due to a fourth quarter 2022 $9 million valuation allowance recorded on certain charitable contribution carryforwards. The full year decrease also reflected an accrual of an uncertain tax position as a result of a state tax audit in the third quarter 2022.
(s)The full year earnings increase from lower EWC nuclear refueling outage expense was due to the shutdown of Palisades in May 2022.
(t)The full year earnings increase from lower EWC depreciation/amortization expense was due to the shutdown of Indian Point 3 in April 2021 and Palisades in May 2022.
(u)The full year earnings decrease from lower EWC other income (deductions)–other was due largely to the absence of earnings from NDTs that were transferred in the sale of Indian Point and the performance of Palisades NDTs.
(v)The full year earnings decrease from higher Parent & Other interest expense and other charges was due primarily to higher interest rates and lower intercompany guarantee activity.
(w)The full year earnings per share impacts from share effect were due to settlement of equity forward sales in November 2022 under the company’s ATM program.
C: Utility operating and financial measures
Appendix C provides comparative summaries of Utility operating and financial measures.
| Appendix C: Utility operating and financial measures | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fourth quarter and full year 2022 vs. 2021 | ||||||||||||
| Fourth quarter | Full year | |||||||||||
| 2022 | 2021 | %<br>Change | % Weather adjusted (x) | 2021 | % Weather adjusted (x) | |||||||
| GWh sold | ||||||||||||
| Residential | 7,916 | 7,535 | 5.1 | (2.6) | 37,134 | 35,230 | 5.4 | (0.2) | ||||
| Commercial | 6,284 | 6,310 | (0.4) | 2.4 | 27,982 | 26,800 | 4.4 | 4.6 | ||||
| Governmental | 583 | 581 | 0.3 | 0.9 | 2,512 | 2,426 | 3.5 | 3.6 | ||||
| Industrial | 12,599 | 12,468 | 1.1 | 1.1 | 52,501 | 49,866 | 5.3 | 5.3 | ||||
| Total retail sales | 27,382 | 26,894 | 1.8 | 0.3 | 120,129 | 114,322 | 5.1 | 3.4 | ||||
| Wholesale | 3,597 | 3,291 | 9.3 | 15,968 | 16,656 | (4.1) | ||||||
| Total sales | 30,979 | 30,185 | 2.6 | 136,097 | 130,978 | 3.9 | ||||||
| Number of electric retail customers | ||||||||||||
| Residential | 2,564,646 | 2,546,759 | 0.7 | |||||||||
| Commercial | 371,407 | 368,631 | 0.8 | |||||||||
| Governmental | 18,304 | 18,202 | 0.6 | |||||||||
| Industrial | 47,711 | 50,814 | (6.1) | |||||||||
| Total retail customers | 3,002,068 | 2,984,406 | 0.6 | |||||||||
| Other O&M and refueling outage expense per MWh | $26.01 | $24.85 | 4.7 | 22.32 | 21.26 | 5.0 |
All values are in US Dollars.
Calculations may differ due to rounding
(x)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.
On a weather-adjusted basis for fourth quarter 2022, retail sales increased 0.3 percent. Residential sales were (2.6) percent lower and commercial sales increased 2.4 percent. Industrial sales increased 1.1 percent due to continued growth from new/expansion customers and lower sales in 2021 as a result of Hurricane Ida, partially offset by facility shutdowns and outages.
On a weather-adjusted basis for full year 2022, retail sales increased 3.4 percent. Residential sales were (0.2) percent lower and commercial sales increased 4.6 percent. Industrial sales volume increased 5.3 percent reflecting an increase in demand from new/expansion projects (primarily in the chemicals, transportation, and paper industries), higher demand from cogeneration customers, and lower sales in 2021 as a result of Hurricane Ida.
D: EWC operating and financial measures
Appendix D-1 provides a comparative summary of EWC operating and financial measures.
| Appendix D-1: EWC operating and financial measures | ||||||
|---|---|---|---|---|---|---|
| Fourth quarter and full year 2022 vs. 2021 | ||||||
| Fourth quarter | Full year | |||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | |
| Owned capacity (MW) (y) | 181 | 1,205 | (85.0) | 181 | 1,205 | (85.0) |
| GWh billed | 398 | 2,065 | (80.7) | 4,570 | 11,328 | (59.7) |
| EWC nuclear fleet | ||||||
| Capacity factor | - | 100% | n/a | 93% | 97% | (4.1) |
| GWh billed | - | 1,790 | n/a | 2,741 | 9,836 | (72.1) |
| Production cost per MWh | - | $28.76 | n/a | $26.93 | $24.31 | 10.8 |
| Average energy/capacity revenue per MWh | - | $54.15 | n/a | $49.00 | $54.67 | (10.4) |
Calculations may differ due to rounding
(y)2022 excludes the Palisades plant (811 MW), which was shut down on 5/20/22, and the RS Cogen power plant (213 MW), which was sold on 10/31/22.
Appendix D-2 provides a comparative summary of EWC adjusted EBITDA (non-GAAP).
| Appendix D-2: EWC adjusted EBITDA - reconciliation of GAAP to non-GAAP measures | ||||||
|---|---|---|---|---|---|---|
| Fourth quarter and full year 2022 vs. 2021 | ||||||
| ($ in millions) | Fourth quarter | Full year | ||||
| 2022 | 2021 | Change | 2022 | 2021 | Change | |
| Net income (loss) | (12) | 90 | (101) | 65 | (121) | 186 |
| Add back: interest expense | 3 | 2 | 1 | 8 | 13 | (6) |
| Add back: income taxes | 8 | 22 | (14) | 54 | (25) | 80 |
| Add back: depreciation and amortization | 1 | 9 | (7) | 14 | 44 | (30) |
| Subtract: interest and investment income | 4 | 18 | (14) | (34) | 119 | (153) |
| Add back: decommissioning expense | - | 14 | (14) | 28 | 120 | (92) |
| Adjusted EBITDA (non-GAAP) | (3) | 118 | (121) | 204 | (87) | 291 |
Calculations may differ due to rounding
E: Consolidated financial measures
Appendix E 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 E: GAAP and non-GAAP financial measures | ||
|---|---|---|
| Full year 2022 vs. 2021 (See Appendix G for reconciliation of GAAP to non-GAAP financial measures) | ||
| For 12 months ending December 31 | 2021 | Change |
| GAAP measure | ||
| As-reported ROE | 9.9% | (0.9)% |
| Non-GAAP financial measure | ||
| Adjusted ROE | 10.8% | (0.01)% |
| As of December 31 ( in millions, except where noted) | 2021 | Change |
| GAAP measures | ||
| Cash and cash equivalents | 443 | (218) |
| Available revolver capacity | 3,985 | 256 |
| Commercial paper | 1,201 | (374) |
| Total debt | 27,154 | (326) |
| Securitization debt | 84 | 209 |
| Debt to capital | 69.5% | (2.6)% |
| Off-balance sheet liabilities: | ||
| Debt of joint ventures – Entergy’s share | 7 | (7) |
| Storm escrows | 33 | 369 |
| Non-GAAP financial measures ( in millions, except where noted) | ||
| Debt to capital, excluding securitization debt | 69.4% | (2.8)% |
| Net debt to net capital, excluding securitization debt | 69.1% | (2.6)% |
| Gross liquidity | 4,428 | 37 |
| Net liquidity | 3,227 | 411 |
| Net liquidity, including storm escrows | 3,260 | 780 |
| Parent debt to total debt, excluding securitization debt | 22.2% | (3.4)% |
| FFO to debt, excluding securitization debt | 9.4% | 3.0% |
| FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with the exit of EWC | 10.1% | 2.6% |
All values are in US Dollars.
Calculations may differ due to rounding
F: Definitions and abbreviations and acronyms
Appendix F-1 provides definitions of certain operating measures, as well as GAAP and non-GAAP financial measures.
| Appendix F-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 |
| EWC operating and financial measures | |
| Adjusted EBITDA (non-GAAP) | Earnings before interest, income taxes, and depreciation and amortization, and excluding decommissioning expense |
| Capacity factor | Normalized percentage of the period that the nuclear plants generate power |
| GWh billed | Total number of GWh billed to customers and financially-settled instruments |
| Owned capacity (MW) | Installed capacity owned by EWC |
| Production cost per MWh | Fuel and other O&M expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation) |
| Financial measures – GAAP | |
| As-reported ROE | 12-months rolling net income attributable to Entergy Corp. divided by avg. common equity |
| Debt of joint ventures – Entergy’s share | Entergy’s share of debt issued by business joint ventures at EWC |
| 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, and finance leases on the balance sheet |
| 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 the results of the EWC segment, significant regulatory charges, significant income 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, 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 excl. securitization debt |
| FFO to debt, excl. securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with the exit of EWC | 12-months rolling FFO excluding return of unprotected excess ADIT and severance and retention payments associated with the exit of EWC 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, incl. amounts drawn on credit revolver and commercial paper facilities, as a percent of consolidated total debt, excl. securitization debt |
Appendix F-2 explains abbreviations and acronyms used in the quarterly earnings materials.
| Appendix F-2: Abbreviations and acronyms | |||
|---|---|---|---|
| ADIT<br><br>AFUDC<br><br>AFUDC – borrowed funds<br><br>AGA<br><br>ALJ<br><br>AMI<br><br>APSC<br><br>ATM<br><br>bbl<br><br>Bcf/D<br><br>bps<br><br>CAGR<br><br>CCGT<br><br>CCNO<br><br>CFO<br><br>COD<br><br>DCRF<br><br>DTA<br><br>E-AR<br><br>E-LA<br><br>E-MS<br><br>E-NO<br><br>E-TX<br><br>EBITDA<br><br>EEI<br><br>EPS<br><br>ESG<br><br>ETR<br><br>EWC<br><br>FERC<br><br>FFO<br><br>FIN 48<br><br>FRP<br><br>GAAP<br><br>GCRR<br><br>Grand Gulf or GGNS<br><br>HLBV<br><br>IIRR-G | Accumulated deferred income taxes<br><br>Allowance for funds used during construction<br><br>Allowance for borrowed funds used during construction<br><br>American Gas Association<br><br>Administrative law judge<br><br>Advanced metering infrastructure<br><br>Arkansas Public Service Commission<br><br>At the market equity issuance program<br><br>Barrels<br><br>Billion cubic feet per day<br><br>Basis points<br><br>Compound annual growth rate<br><br>Combined cycle gas turbine<br><br>Council of the City of New Orleans<br><br>Cash from operations<br><br>Commercial operation date<br><br>Distribution cost recovery factor<br><br>Deferred tax asset<br><br>Entergy Arkansas, LLC<br><br>Entergy Louisiana, LLC<br><br>Entergy Mississippi, LLC<br><br>Entergy New Orleans, LLC<br><br>Entergy Texas, Inc.<br><br>Earnings before interest, income taxes, and depreciation and amortization<br><br>Edison Electric Institute<br><br>Earnings per share<br><br>Environmental, social, and governance<br><br>Entergy Corporation<br><br>Entergy Wholesale Commodities<br><br>Federal Energy Regulatory Commission<br><br>Funds from operations<br><br>FASB Interpretation No.48, “Accounting for Uncertainty in Income Taxes”<br><br>Formula rate plan<br><br>U.S. generally accepted accounting principles<br><br>Generation Cost Recovery Rider<br><br>Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by SERI<br><br>Hypothetical liquidation at book value<br><br>Infrastructure investment recovery rider – gas | Indian Point 3 <br>or IP3<br><br>IPEC or <br>Indian Point<br><br>LNG<br><br>LPSC<br><br>LTM<br><br>LURC<br><br>MISO<br><br>MMBtu<br><br>Moody’s<br><br>MOU<br><br>MPSC<br><br>MTEP<br><br>NBP<br><br>NDT<br><br>NYSE<br><br>OCAPS<br><br>OCF<br><br>OpCo<br><br>OPEB<br><br>Other O&M<br><br>P&O<br><br>Palisades<br><br>PMR<br><br>PPA<br><br>PUCT<br><br>RFP<br><br>ROE<br><br>RS Cogen<br><br>RSP<br><br>S&P<br><br>SEC<br><br>SERI<br><br>TCRF<br><br>TRAM<br><br>UPSA<br><br>WACC | Indian Point Energy Center Unit 3 (nuclear)<br>(shut down April 2021, sold May 2021)<br><br>Indian Point Energy Center (nuclear)<br>(sold 5/28/21)<br><br>Liquified natural gas<br><br>Louisiana Public Service Commission<br><br>Last twelve months<br><br>Louisiana Utility Restoration Corporation<br><br>Midcontinent Independent System Operator, Inc.<br><br>Million British thermal units<br><br>Moody’s Investor Service<br><br>Memorandum of understanding<br><br>Mississippi Public Service Commission<br><br>MISO Transmission Expansion Plan<br><br>National Balancing Point<br><br>Nuclear decommissioning trust<br><br>New York Stock Exchange<br><br>Orange County Advanced Power Station<br><br>Net cash flow provided by operating activities<br><br>Utility operating company<br><br>Other post-employment benefits<br><br>Other non-fuel operation and maintenance expense<br><br>Parent & Other<br><br>Palisades Power Plant (nuclear) (shut down May 2022, sold June 2022)<br><br>Performance Management Rider<br><br>Power purchase agreement or purchased power agreement<br><br>Public Utility Commission of Texas<br><br>Request for proposals<br><br>Return on equity<br><br>RS Cogen facility (CCGT cogeneration) (sold 10/31/22)<br><br>Rate Stabilization Plan (E-LA Gas)<br><br>Standard & Poor’s<br><br>U.S. Securities and Exchange Commission<br><br>System Energy Resources, Inc.<br><br>Transmission cost recovery factor<br><br>Tax reform adjustment mechanism<br><br>Unit Power Sales Agreement<br><br>Weighted-average cost of capital |
G: Other GAAP to non-GAAP reconciliations
Appendix G-1, Appendix G-2, and Appendix G-3 provide reconciliations of various non-GAAP financial measures disclosed in this news release to their most comparable GAAP measure.
| Appendix G-1: Reconciliation of GAAP to non-GAAP financial measures – ROE | ||
|---|---|---|
| (LTM in millions except where noted) | Fourth quarter | |
| 2022 | 2021 | |
| As-reported net income (loss) attributable to Entergy Corporation | 1,103 | 1,118 |
| Adjustments | (217) | (97) |
| Adjusted earnings (non-GAAP) | 1,320 | 1,215 |
| Average common equity (average of beginning and ending balances) | 12,302 | 11,282 |
| As-reported ROE | 9.0% | 9.9% |
| Adjusted ROE (non-GAAP) | 10.7% | 10.8% |
All values are in US Dollars.
Calculations may differ due to rounding
| Appendix G-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) | Fourth quarter | |
| 2022 | 2021 | |
| Total debt | 26,829 | 27,154 |
| Less securitization debt | 293 | 84 |
| Total debt, excluding securitization debt | 26,536 | 27,071 |
| Less cash and cash equivalents | 224 | 443 |
| Net debt, excluding securitization debt | 26,312 | 26,628 |
| Commercial paper | 828 | 1,201 |
| Total capitalization | 40,113 | 39,079 |
| Less securitization debt | 293 | 84 |
| Total capitalization, excluding securitization debt | 39,820 | 38,995 |
| Less cash and cash equivalents | 224 | 443 |
| Net capital, excluding securitization debt | 39,596 | 38,553 |
| Debt to capital | 66.9% | 69.5% |
| Debt to capital, excluding securitization debt (non-GAAP) | 66.6% | 69.4% |
| Net debt to net capital, excluding securitization debt (non-GAAP) | 66.5% | 69.1% |
| Available revolver capacity | 4,241 | 3,985 |
| Storm escrows | 402 | 33 |
| Gross liquidity (non-GAAP) | 4,465 | 4,428 |
| Net liquidity (non-GAAP) | 3,638 | 3,227 |
| Net liquidity, including storm escrows (non-GAAP) | 4,040 | 3,260 |
| Entergy Corporation notes: | ||
| Due July 2022 | - | 650 |
| 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 | 4,050 | 4,700 |
| Revolver draw | 150 | 165 |
| Unamortized debt issuance costs and discounts | (43) | (49) |
| Total parent debt | 4,985 | 6,017 |
| Parent debt to total debt, excluding securitization debt (non-GAAP) | 18.8% | 22.2% |
All values are in US Dollars. Calculations may differ due to rounding
| Appendix G-3: Reconciliation of GAAP to non-GAAP financial measures – FFO to debt, excluding securitization debt; FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with the exit of EWC | ||
|---|---|---|
| ( in millions except where noted) | Fourth Quarter | |
| 2022 | 2021 | |
| Total debt | 26,829 | 27,154 |
| Less securitization debt | 293 | 84 |
| Total debt, excluding securitization debt | 26,536 | 27,071 |
| Net cash flow provided by operating activities, LTM | 2,585 | 2,301 |
| AFUDC – borrowed funds, LTM | (28) | (29) |
| Working capital items in net cash flow provided by operating activities, LTM: | ||
| Receivables | (157) | (85) |
| Fuel inventory | 7 | 18 |
| Accounts payable | (102) | 270 |
| Taxes accrued | 4 | (21) |
| Interest accrued | 4 | (11) |
| Deferred fuel costs | (394) | (466) |
| Other working capital accounts | (157) | (54) |
| Securitization regulatory charges, LTM | 62 | 83 |
| Total | (733) | (266) |
| FFO, LTM (non-GAAP) | 3,290 | 2,538 |
| FFO to debt, excluding securitization debt (non-GAAP) | 12.4% | 9.4% |
| Estimated return of unprotected excess ADIT, LTM | 56 | 87 |
| Severance and retention payments associated with exit of EWC, LTM pre-tax | 40 | 120 |
| FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with the exit of EWC (non-GAAP) | 12.8% | 10.1% |
All values are in US Dollars.
Calculations may differ due to rounding
Financial Statements
| Entergy Corporation | ||||||||
|---|---|---|---|---|---|---|---|---|
| Consolidating Balance Sheet | ||||||||
| December 31, 2022 | ||||||||
| (Dollars in thousands) | ||||||||
| (Unaudited) | ||||||||
| Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents: | ||||||||
| Cash | $ | 101,049 | $ | 1,758 | $ | 12,483 | $ | 115,290 |
| Temporary cash investments | 47,186 | 912 | 60,776 | 108,874 | ||||
| Total cash and cash equivalents | 148,235 | 2,670 | 73,259 | 224,164 | ||||
| Notes receivable | — | (75,000) | 75,000 | — | ||||
| Accounts receivable: | ||||||||
| Customer | 788,552 | — | — | 788,552 | ||||
| Allowance for doubtful accounts | (30,856) | — | — | (30,856) | ||||
| Associated companies | 7,991 | (9,407) | 1,416 | — | ||||
| Other | 223,752 | 4 | 17,946 | 241,702 | ||||
| Accrued unbilled revenues | 495,859 | — | — | 495,859 | ||||
| Total accounts receivable | 1,485,298 | (9,403) | 19,362 | 1,495,257 | ||||
| Deferred fuel costs | 710,401 | — | — | 710,401 | ||||
| Fuel inventory - at average cost | 141,174 | — | 6,458 | 147,632 | ||||
| Materials and supplies - at average cost | 1,179,344 | — | 3,964 | 1,183,308 | ||||
| Deferred nuclear refueling outage costs | 143,653 | — | — | 143,653 | ||||
| Prepayments and other | 190,942 | (8,673) | 8,342 | 190,611 | ||||
| TOTAL | 3,999,047 | (90,406) | 186,385 | 4,095,026 | ||||
| OTHER PROPERTY AND INVESTMENTS | ||||||||
| Investment in affiliates | 3,176,229 | (3,176,315) | 86 | — | ||||
| Decommissioning trust funds | 4,121,864 | — | — | 4,121,864 | ||||
| Non-utility property - at cost (less accumulated depreciation) | 357,763 | (16) | 8,658 | 366,405 | ||||
| Storm reserve escrow account | 401,955 | — | — | 401,955 | ||||
| Other | 42,154 | 51,497 | 8,608 | 102,259 | ||||
| TOTAL | 8,099,965 | (3,124,834) | 17,352 | 4,992,483 | ||||
| PROPERTY, PLANT, AND EQUIPMENT | ||||||||
| Electric | 64,435,141 | 5,313 | 206,457 | 64,646,911 | ||||
| Natural gas | 691,970 | — | — | 691,970 | ||||
| Construction work in progress | 1,843,160 | 352 | 659 | 1,844,171 | ||||
| Nuclear fuel | 582,119 | — | — | 582,119 | ||||
| TOTAL PROPERTY, PLANT, AND EQUIPMENT | 67,552,390 | 5,665 | 207,116 | 67,765,171 | ||||
| Less - accumulated depreciation and amortization | 25,137,429 | 200 | 150,418 | 25,288,047 | ||||
| PROPERTY, PLANT, AND EQUIPMENT - NET | 42,414,961 | 5,465 | 56,698 | 42,477,124 | ||||
| DEFERRED DEBITS AND OTHER ASSETS | ||||||||
| Regulatory assets: | ||||||||
| Other regulatory assets | 6,036,397 | — | — | 6,036,397 | ||||
| Deferred fuel costs | 241,085 | — | — | 241,085 | ||||
| Goodwill | 374,099 | — | 3,073 | 377,172 | ||||
| Accumulated deferred income taxes | 81,315 | 358 | 2,427 | 84,100 | ||||
| Other | 152,374 | 10,903 | 128,527 | 291,804 | ||||
| TOTAL | 6,885,270 | 11,261 | 134,027 | 7,030,558 | ||||
| TOTAL ASSETS | $ | 61,399,243 | $ | (3,198,514) | $ | 394,462 | $ | 58,595,191 |
| *Totals may not foot due to rounding. | ||||||||
| Entergy Corporation | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | |
| Consolidating Balance Sheet | ||||||||
| December 31, 2022 | ||||||||
| (Dollars in thousands) | ||||||||
| (Unaudited) | ||||||||
| Parent & Other | Entergy Wholesale Commodities | Consolidated | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Currently maturing long-term debt | 2,170,037 | $ | — | $ | 139,000 | $ | 2,309,037 | |
| Notes payable and commercial paper: | ||||||||
| Other | 827,621 | — | 827,621 | |||||
| Account payable: | ||||||||
| Associated companies | (39,329) | (3,352) | — | |||||
| Other | 83 | 7,776 | 1,777,590 | |||||
| Customer deposits | — | — | 424,723 | |||||
| Taxes accrued | 2,887 | 13,960 | 424,091 | |||||
| Interest accrued | 12,927 | 377 | 195,264 | |||||
| Pension and other postretirement liabilities | — | 15,497 | 104,845 | |||||
| Sale-leaseback/depreciation regulatory liability | — | — | 103,497 | |||||
| Other | 1,915 | 4,881 | 202,779 | |||||
| TOTAL | 806,104 | 178,139 | 6,369,447 | |||||
| NON-CURRENT LIABILITIES | ||||||||
| Accumulated deferred income taxes and taxes accrued | (638,476) | (466,674) | 4,818,837 | |||||
| Accumulated deferred investment tax credits | — | — | 211,220 | |||||
| Regulatory liability for income taxes - net | — | — | 1,258,276 | |||||
| Other regulatory liabilities | — | — | 2,324,590 | |||||
| Decommissioning and retirement cost liabilities | — | 615 | 4,271,531 | |||||
| Accumulated provisions | — | 291 | 531,201 | |||||
| Pension and other postretirement liabilities | — | 166,537 | 1,213,555 | |||||
| Long-term debt | 4,157,166 | — | 23,623,512 | |||||
| Other | (459,639) | 44,144 | 688,720 | |||||
| TOTAL | 3,059,051 | (255,087) | 38,941,442 | |||||
| Subsidiaries' preferred stock without sinking fund | — | 24,249 | 219,410 | |||||
| EQUITY | ||||||||
| Preferred stock, no par value, authorized 1,000,000 shares; | ||||||||
| issued shares in 2022 - none | — | — | — | |||||
| Common stock, .01 par value, authorized 499,000,000 shares; | ||||||||
| issued 279,653,929 shares in 2022 | (2,657,052) | 201,101 | 2,797 | |||||
| Paid-in capital | (1,619,515) | 5,557,901 | 7,632,895 | |||||
| Retained earnings | 2,075,642 | (5,078,562) | 10,502,041 | |||||
| Accumulated other comprehensive loss | — | (233,279) | (191,754) | |||||
| Less - treasury stock, at cost (68,477,429 shares in 2022) | 4,858,994 | — | 4,978,994 | |||||
| TOTAL COMMON SHAREHOLDERS' EQUITY | (7,059,919) | 447,161 | 12,966,985 | |||||
| Subsidiaries' preferred stock without sinking fund | ||||||||
| and noncontrolling interests | (3,750) | — | 97,907 | |||||
| TOTAL | (7,063,669) | 447,161 | 13,064,892 | |||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 61,399,243 | $ | (3,198,514) | $ | 394,462 | $ | 58,595,191 | |
| *Totals may not foot due to rounding. |
All values are in US Dollars.
| Entergy Corporation | ||||||||
|---|---|---|---|---|---|---|---|---|
| Consolidating Balance Sheet | ||||||||
| December 31, 2021 | ||||||||
| (Dollars in thousands) | ||||||||
| (Unaudited) | ||||||||
| Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents: | ||||||||
| Cash | $ | 40,303 | $ | 3,144 | $ | 1,497 | $ | 44,944 |
| Temporary cash investments | 270,947 | 8,126 | 118,542 | 397,615 | ||||
| Total cash and cash equivalents | 311,250 | 11,270 | 120,039 | 442,559 | ||||
| Notes receivable | — | (84,000) | 84,000 | — | ||||
| Accounts receivable: | ||||||||
| Customer | 747,423 | — | 39,443 | 786,866 | ||||
| Allowance for doubtful accounts | (68,608) | — | — | (68,608) | ||||
| Associated companies | 12,448 | (13,069) | 621 | — | ||||
| Other | 137,817 | 345 | 93,681 | 231,843 | ||||
| Accrued unbilled revenues | 420,255 | — | — | 420,255 | ||||
| Total accounts receivable | 1,249,335 | (12,724) | 133,745 | 1,370,356 | ||||
| Deferred fuel costs | 324,394 | — | — | 324,394 | ||||
| Fuel inventory - at average cost | 149,817 | — | 4,758 | 154,575 | ||||
| Materials and supplies - at average cost | 1,022,137 | — | 19,378 | 1,041,515 | ||||
| Deferred nuclear refueling outage costs | 115,024 | — | 18,398 | 133,422 | ||||
| Prepayments and other | 162,559 | (16,251) | 10,466 | 156,774 | ||||
| TOTAL | 3,334,516 | (101,705) | 390,784 | 3,623,595 | ||||
| OTHER PROPERTY AND INVESTMENTS | ||||||||
| Investment in affiliates | 1,482,963 | (1,483,049) | 22,090 | 22,004 | ||||
| Decommissioning trust funds | 4,938,194 | — | 575,822 | 5,514,016 | ||||
| Non-utility property - at cost (less accumulated depreciation) | 344,427 | (14) | 13,163 | 357,576 | ||||
| Storm reserve escrow | 33,186 | — | — | 33,186 | ||||
| Other | 48,932 | 46,339 | 8,994 | 104,265 | ||||
| TOTAL | 6,847,702 | (1,436,724) | 620,069 | 6,031,047 | ||||
| PROPERTY, PLANT, AND EQUIPMENT | ||||||||
| Electric | 63,775,441 | 10,869 | 476,940 | 64,263,250 | ||||
| Natural gas | 658,989 | — | — | 658,989 | ||||
| Construction work in progress | 1,510,840 | 257 | 869 | 1,511,966 | ||||
| Nuclear fuel | 562,910 | — | 14,096 | 577,006 | ||||
| TOTAL PROPERTY, PLANT, AND EQUIPMENT | 66,508,180 | 11,126 | 491,905 | 67,011,211 | ||||
| Less - accumulated depreciation and amortization | 24,346,483 | 5,968 | 414,600 | 24,767,051 | ||||
| PROPERTY, PLANT, AND EQUIPMENT - NET | 42,161,697 | 5,158 | 77,305 | 42,244,160 | ||||
| DEFERRED DEBITS AND OTHER ASSETS | ||||||||
| Regulatory assets: | ||||||||
| Other regulatory assets | 6,613,256 | — | — | 6,613,256 | ||||
| Deferred fuel costs | 240,953 | — | — | 240,953 | ||||
| Goodwill | 374,099 | — | 3,073 | 377,172 | ||||
| Accumulated deferred income taxes | 47,641 | 59 | 6,486 | 54,186 | ||||
| Other | 113,761 | 11,154 | 144,958 | 269,873 | ||||
| TOTAL | 7,389,710 | 11,213 | 154,517 | 7,555,440 | ||||
| TOTAL ASSETS | $ | 59,733,625 | $ | (1,522,058) | $ | 1,242,675 | $ | 59,454,242 |
| *Totals may not foot due to rounding. | ||||||||
| Entergy Corporation | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | |
| Consolidating Balance Sheet | ||||||||
| December 31, 2021 | ||||||||
| (Dollars in thousands) | ||||||||
| (Unaudited) | ||||||||
| Parent & Other | Entergy Wholesale Commodities | Consolidated | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Currently maturing long-term debt | 250,329 | $ | 650,000 | $ | 139,000 | $ | 1,039,329 | |
| Notes payable and commercial paper: | ||||||||
| Other | 1,201,177 | — | 1,201,177 | |||||
| Account payable: | ||||||||
| Associated companies | (41,588) | 3,420 | — | |||||
| Other | 77 | 65,636 | 2,610,132 | |||||
| Customer deposits | — | — | 395,184 | |||||
| Taxes accrued | 3,680 | (1,801) | 419,828 | |||||
| Interest accrued | 24,506 | 496 | 191,151 | |||||
| Deferred fuel costs | — | — | 7,607 | |||||
| Pension and other postretirement liabilities | — | 12,808 | 68,336 | |||||
| Current portion of unprotected excess accumulated | ||||||||
| deferred income taxes | — | — | 53,385 | |||||
| Other | 1,893 | 12,247 | 204,613 | |||||
| TOTAL | 1,839,745 | 231,806 | 6,190,742 | |||||
| NON-CURRENT LIABILITIES | ||||||||
| Accumulated deferred income taxes and taxes accrued | (477,484) | (552,815) | 4,706,797 | |||||
| Accumulated deferred investment tax credits | — | — | 211,975 | |||||
| Regulatory liability for income taxes - net | — | — | 1,255,692 | |||||
| Other regulatory liabilities | — | — | 2,643,845 | |||||
| Decommissioning and retirement cost liabilities | — | 683,006 | 4,757,084 | |||||
| Accumulated provisions | — | 299 | 157,122 | |||||
| Pension and other postretirement liabilities | — | 347,677 | 1,949,325 | |||||
| Long-term debt | 4,166,005 | — | 24,841,572 | |||||
| Other | (453,928) | 61,898 | 815,284 | |||||
| TOTAL | 3,234,593 | 540,065 | 41,338,696 | |||||
| Subsidiaries' preferred stock without sinking fund | — | 24,249 | 219,410 | |||||
| EQUITY | ||||||||
| Preferred stock, no par value, authorized 1,000,000 shares; | ||||||||
| issued shares in 2021 - none | — | — | — | |||||
| Common stock, .01 par value, authorized 499,000,000 shares; | ||||||||
| issued 271,965,510 shares in 2021 | (2,522,131) | 201,103 | 2,720 | |||||
| Paid-in capital | 1,314,411 | 969,031 | 6,766,239 | |||||
| Retained earnings | (465,227) | (443,453) | 10,240,552 | |||||
| Accumulated other comprehensive loss | — | (280,126) | (332,528) | |||||
| Less - treasury stock, at cost (69,312,326 shares in 2021) | 4,919,699 | — | 5,039,699 | |||||
| TOTAL COMMON SHAREHOLDERS' EQUITY | (6,592,646) | 446,555 | 11,637,284 | |||||
| Subsidiaries' preferred stock without sinking fund | ||||||||
| and noncontrolling interest | (3,750) | — | 68,110 | |||||
| TOTAL | (6,596,396) | 446,555 | 11,705,394 | |||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 59,733,625 | $ | (1,522,058) | $ | 1,242,675 | $ | 59,454,242 | |
| *Totals may not foot due to rounding. |
All values are in US Dollars.
| Entergy Corporation | ||||
|---|---|---|---|---|
| Consolidating Income Statement | ||||
| Three Months Ended December 31, 2022 | ||||
| (Dollars in thousands) | ||||
| (Unaudited) | ||||
| Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |
| OPERATING REVENUES | ||||
| Electric | ||||
| Natural gas | 67,003 | — | — | 67,003 |
| Competitive businesses | — | — | 42,741 | 42,741 |
| Total | 3,229,762 | (3) | 42,741 | 3,272,500 |
| OPERATING EXPENSES | ||||
| Operating and Maintenance: | ||||
| Fuel, fuel related expenses, and gas purchased for resale | 1,029,183 | (3) | 17,976 | 1,047,156 |
| Purchased power | 286,626 | 3 | 19,597 | 306,226 |
| Nuclear refueling outage expenses | 36,407 | — | — | 36,407 |
| Other operation and maintenance | 769,526 | 9,877 | 9,384 | 788,787 |
| Decommissioning | 49,893 | — | 12 | 49,905 |
| Taxes other than income taxes | 188,081 | (125) | 3,134 | 191,090 |
| Depreciation and amortization | 422,474 | 234 | 1,296 | 424,004 |
| Other regulatory charges (credits) - net | (19,952) | — | — | (19,952) |
| Total | 2,762,238 | 9,986 | 51,399 | 2,823,623 |
| OPERATING INCOME | 467,524 | (9,989) | (8,658) | 448,877 |
| OTHER INCOME (DEDUCTIONS) | ||||
| Allowance for equity funds used during construction | 23,147 | — | — | 23,147 |
| Interest and investment income | 93,341 | (54,675) | 3,754 | 42,420 |
| Miscellaneous - net | (75,758) | (38,583) | 3,994 | (110,347) |
| Total | 40,730 | (93,258) | 7,748 | (44,780) |
| INTEREST EXPENSE | ||||
| Interest expense | 201,658 | 41,201 | 2,644 | 245,503 |
| Allowance for borrowed funds used during construction | (9,114) | — | — | (9,114) |
| Total | 192,544 | 41,201 | 2,644 | 236,389 |
| INCOME BEFORE INCOME TAXES | 315,710 | (144,448) | (3,554) | 167,708 |
| Income taxes | 83,994 | (22,063) | 8,125 | 70,056 |
| CONSOLIDATED NET INCOME | 231,716 | (122,385) | (11,679) | 97,652 |
| Preferred dividend requirements of subsidiaries and noncontrolling interests | (9,321) | (48) | 547 | (8,822) |
| NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION | ||||
| EARNINGS PER AVERAGE COMMON SHARE: | ||||
| BASIC | 1.16 | (0.59) | (0.06) | 0.51 |
| DILUTED | 1.15 | (0.58) | (0.06) | 0.51 |
| AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||
| BASIC | 207,984,460 | |||
| DILUTED | 209,104,938 | |||
| *Totals may not foot due to rounding. |
All values are in US Dollars.
| Entergy Corporation | ||||
|---|---|---|---|---|
| Consolidating Income Statement | ||||
| Three Months Ended December 31, 2021 | ||||
| (Dollars in thousands) | ||||
| (Unaudited) | ||||
| Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |
| OPERATING REVENUES | ||||
| Electric | ||||
| Natural gas | 49,190 | — | — | 49,190 |
| Competitive businesses | — | 21 | 139,014 | 139,035 |
| Total | 2,583,433 | 9 | 139,014 | 2,722,456 |
| OPERATING EXPENSES | ||||
| Operating and Maintenance: | ||||
| Fuel, fuel related expenses, and gas purchased for resale | 573,387 | (1) | 19,694 | 593,080 |
| Purchased power | 313,051 | 1 | 15,187 | 328,239 |
| Nuclear refueling outage expenses | 30,585 | — | 11,304 | 41,889 |
| Other operation and maintenance | 719,476 | 7,322 | 53,324 | 780,122 |
| Asset write-offs, impairments, and related charges (credits) | — | — | (81,601) | (81,601) |
| Decommissioning | 47,461 | — | 13,745 | 61,206 |
| Taxes other than income taxes | 162,975 | (305) | 2,660 | 165,330 |
| Depreciation and amortization | 417,062 | 697 | 8,718 | 426,477 |
| Other regulatory charges (credits) - net | 66,164 | — | — | 66,164 |
| Total | 2,330,161 | 7,714 | 43,031 | 2,380,906 |
| OPERATING INCOME | 253,272 | (7,705) | 95,983 | 341,550 |
| OTHER INCOME (DEDUCTIONS) | ||||
| Allowance for equity funds used during construction | 21,844 | — | — | 21,844 |
| Interest and investment income | 155,241 | (32,740) | 18,208 | 140,709 |
| Miscellaneous - net | (58,138) | (2,476) | (594) | (61,208) |
| Total | 118,947 | (35,216) | 17,614 | 101,345 |
| INTEREST EXPENSE | ||||
| Interest expense | 183,953 | 35,011 | 1,909 | 220,873 |
| Allowance for borrowed funds used during construction | (8,930) | — | — | (8,930) |
| Total | 175,023 | 35,011 | 1,909 | 211,943 |
| INCOME BEFORE INCOME TAXES | 197,196 | (77,932) | 111,688 | 230,952 |
| Income taxes | (26,357) | (9,994) | 21,917 | (14,434) |
| CONSOLIDATED NET INCOME | 223,553 | (67,938) | 89,771 | 245,386 |
| Preferred dividend requirements of subsidiaries and noncontrolling interest | (14,031) | (28) | 547 | (13,512) |
| NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION | ||||
| EARNINGS PER AVERAGE COMMON SHARE: | ||||
| BASIC | 1.18 | (0.34) | 0.44 | 1.28 |
| DILUTED | 1.17 | (0.33) | 0.44 | 1.28 |
| AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||
| BASIC | 201,491,204 | |||
| DILUTED | 202,798,269 | |||
| *Totals may not foot due to rounding. |
All values are in US Dollars.
| Entergy Corporation | ||||
|---|---|---|---|---|
| Consolidating Income Statement | ||||
| Year to Date Ended December 31, 2022 | ||||
| (Dollars in thousands) | ||||
| (Unaudited) | ||||
| Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |
| OPERATING REVENUES | ||||
| Electric | ||||
| Natural gas | 233,920 | — | — | 233,920 |
| Competitive businesses | — | 11 | 343,461 | 343,472 |
| Total | 13,420,804 | (28) | 343,461 | 13,764,237 |
| OPERATING EXPENSES | ||||
| Operating and Maintenance: | ||||
| Fuel, fuel related expenses, and gas purchased for resale | 3,634,394 | (28) | 98,485 | 3,732,851 |
| Purchased power | 1,478,121 | 28 | 83,395 | 1,561,544 |
| Nuclear refueling outage expenses | 137,618 | — | 18,414 | 156,032 |
| Other operation and maintenance | 2,899,759 | 35,677 | 103,023 | 3,038,459 |
| Asset write-offs, impairments, and related charges (credits) | — | — | (163,464) | (163,464) |
| Decommissioning | 195,831 | — | 28,245 | 224,076 |
| Taxes other than income taxes | 716,560 | 738 | 16,240 | 733,538 |
| Depreciation and amortization | 1,745,822 | 883 | 14,318 | 1,761,023 |
| Other regulatory charges (credits) - net | 669,403 | — | — | 669,403 |
| Total | 11,477,508 | 37,298 | 198,656 | 11,713,462 |
| OPERATING INCOME | 1,943,296 | (37,326) | 144,805 | 2,050,775 |
| OTHER INCOME (DEDUCTIONS) | ||||
| Allowance for equity funds used during construction | 72,832 | — | — | 72,832 |
| Interest and investment income (loss) | 145,968 | (187,152) | (34,397) | (75,581) |
| Miscellaneous - net | (47,604) | (46,618) | 16,593 | (77,629) |
| Total | 171,196 | (233,770) | (17,804) | (80,378) |
| INTEREST EXPENSE | ||||
| Interest expense | 777,998 | 154,348 | 7,714 | 940,060 |
| Allowance for borrowed funds used during construction | (27,823) | — | — | (27,823) |
| Total | 750,175 | 154,348 | 7,714 | 912,237 |
| INCOME BEFORE INCOME TAXES | 1,364,317 | (425,444) | 119,287 | 1,058,160 |
| Income taxes | (34,263) | (59,180) | 54,465 | (38,978) |
| CONSOLIDATED NET INCOME | 1,398,580 | (366,264) | 64,822 | 1,097,138 |
| Preferred dividend requirements of subsidiaries and noncontrolling interests | (8,025) | (191) | 2,188 | (6,028) |
| NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION | ||||
| EARNINGS PER AVERAGE COMMON SHARE: | ||||
| BASIC | 6.88 | (1.79) | 0.31 | 5.40 |
| DILUTED | 6.84 | (1.78) | 0.31 | 5.37 |
| AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||
| BASIC | 204,450,354 | |||
| DILUTED | 205,547,578 | |||
| *Totals may not foot due to rounding. |
All values are in US Dollars.
| Entergy Corporation | ||||
|---|---|---|---|---|
| Consolidating Income Statement | ||||
| Year to Date Ended December 31, 2021 | ||||
| (Dollars in thousands) | ||||
| (Unaudited) | ||||
| Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |
| OPERATING REVENUES | ||||
| Electric | ||||
| Natural gas | 170,610 | — | — | 170,610 |
| Competitive businesses | — | 127 | 698,164 | 698,291 |
| Total | 11,044,674 | 58 | 698,164 | 11,742,896 |
| OPERATING EXPENSES | ||||
| Operating and Maintenance: | ||||
| Fuel, fuel related expenses, and gas purchased for resale | 2,375,456 | (29) | 82,669 | 2,458,096 |
| Purchased power | 1,198,755 | 29 | 72,893 | 1,271,677 |
| Nuclear refueling outage expenses | 127,758 | — | 44,878 | 172,636 |
| Other operation and maintenance | 2,657,025 | 25,068 | 286,528 | 2,968,621 |
| Asset write-offs, impairments and related charges | — | — | 263,625 | 263,625 |
| Decommissioning | 186,238 | — | 120,173 | 306,411 |
| Taxes other than income taxes | 642,604 | 493 | 17,193 | 660,290 |
| Depreciation and amortization | 1,637,151 | 2,706 | 44,429 | 1,684,286 |
| Other regulatory charges (credits) - net | 111,628 | — | — | 111,628 |
| Total | 8,936,615 | 28,267 | 932,388 | 9,897,270 |
| OPERATING INCOME | 2,108,059 | (28,209) | (234,224) | 1,845,626 |
| OTHER INCOME (DEDUCTIONS) | ||||
| Allowance for equity funds used during construction | 70,473 | — | — | 70,473 |
| Interest and investment income | 442,817 | (130,948) | 118,597 | 430,466 |
| Miscellaneous - net | (176,649) | (8,020) | (17,109) | (201,778) |
| Total | 336,641 | (138,968) | 101,488 | 299,161 |
| INTEREST EXPENSE | ||||
| Interest expense | 721,022 | 129,356 | 13,334 | 863,712 |
| Allowance for borrowed funds used during construction | (29,018) | — | — | (29,018) |
| Total | 692,004 | 129,356 | 13,334 | 834,694 |
| INCOME BEFORE INCOME TAXES | 1,752,696 | (296,533) | (146,070) | 1,310,093 |
| Income taxes | 264,209 | (47,454) | (25,381) | 191,374 |
| CONSOLIDATED NET INCOME | 1,488,487 | (249,079) | (120,689) | 1,118,719 |
| Preferred dividend requirements of subsidiaries and noncontrolling interest | (1,933) | (28) | 2,188 | 227 |
| NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION | ||||
| EARNINGS PER AVERAGE COMMON SHARE: | ||||
| BASIC | 7.42 | (1.24) | (0.61) | 5.57 |
| DILUTED | 7.38 | (1.23) | (0.61) | 5.54 |
| AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||
| BASIC | 200,941,511 | |||
| DILUTED | 201,873,024 | |||
| *Totals may not foot due to rounding. |
All values are in US Dollars.
| Entergy Corporation | ||||||
|---|---|---|---|---|---|---|
| Consolidated Cash Flow Statement | ||||||
| Three Months Ended December 31, 2022 vs. 2021 | ||||||
| (Dollars in thousands) | ||||||
| (Unaudited) | ||||||
| 2022 | 2021 | Variance | ||||
| OPERATING ACTIVITIES | ||||||
| Consolidated net income | $ | 97,652 | $ | 245,386 | $ | (147,734) |
| Adjustments to reconcile consolidated net income to net cash | ||||||
| flow provided by operating activities: | ||||||
| Depreciation, amortization, and decommissioning, including nuclear fuel amortization | 522,615 | 546,621 | (24,006) | |||
| Deferred income taxes, investment tax credits, and non-current taxes accrued | 29,518 | (31,474) | 60,992 | |||
| Asset write-offs, impairments, and related charges (credits) | — | (81,601) | 81,601 | |||
| Changes in working capital: | ||||||
| Receivables | 211,505 | 160,453 | 51,052 | |||
| Fuel inventory | (12,490) | (28,592) | 16,102 | |||
| Accounts payable | (42,226) | (92,732) | 50,506 | |||
| Taxes accrued | (85,291) | (40,794) | (44,497) | |||
| Interest accrued | (34,248) | (39,953) | 5,705 | |||
| Deferred fuel costs | 427,640 | (109,217) | 536,857 | |||
| Other working capital accounts | (32,558) | 40,908 | (73,466) | |||
| Changes in provisions for estimated losses | 76,237 | (13,136) | 89,373 | |||
| Changes in other regulatory assets | (10,269) | 94,465 | (104,734) | |||
| Changes in other regulatory liabilities | (150,244) | (73,670) | (76,574) | |||
| Effects of securitization on regulatory asset | 95,920 | — | 95,920 | |||
| Changes in pension and other postretirement liabilities | (441,120) | (475,139) | 34,019 | |||
| Other | 123,408 | 188,205 | (64,797) | |||
| Net cash flow provided by operating activities | 776,049 | 289,730 | 486,319 | |||
| INVESTING ACTIVITIES | ||||||
| Construction/capital expenditures | (1,212,005) | (2,161,664) | 949,659 | |||
| Allowance for equity funds used during construction | 23,147 | 21,844 | 1,303 | |||
| Nuclear fuel purchases | (97,994) | (38,906) | (59,088) | |||
| Payment for purchase of assets | — | (131,770) | 131,770 | |||
| Net proceeds from sale of assets | 5,887 | — | 5,887 | |||
| Changes in securitization account | 14,290 | (193) | 14,483 | |||
| Payments to storm reserve escrow account | (202,455) | (2) | (202,453) | |||
| Receipts from storm reserve escrow account | 125,001 | — | 125,001 | |||
| Decrease (increase) in other investments | 29,910 | (1,896) | 31,806 | |||
| Proceeds from nuclear decommissioning trust fund sales | 259,382 | 1,078,487 | (819,105) | |||
| Investment in nuclear decommissioning trust funds | (286,093) | (1,083,201) | 797,108 | |||
| Net cash flow used in investing activities | (1,340,930) | (2,317,301) | 976,371 | |||
| FINANCING ACTIVITIES | ||||||
| Proceeds from the issuance of: | ||||||
| Long-term debt | 703,142 | 2,039,275 | (1,336,133) | |||
| Treasury stock | 240 | 364 | (124) | |||
| Common stock | 852,555 | 173,959 | 678,596 | |||
| Retirement of long-term debt | (997,261) | (781,036) | (216,225) | |||
| Changes in credit borrowings and commercial paper - net | (559,011) | 194,856 | (753,867) | |||
| Capital contributions from noncontrolling interests | 15,107 | 51,202 | (36,095) | |||
| Other | 1,102 | (955) | 2,057 | |||
| Dividends paid: | ||||||
| Common stock | (225,740) | (202,991) | (22,749) | |||
| Preferred stock | (4,580) | (4,580) | — | |||
| Net cash flow provided by (used in) financing activities | (214,446) | 1,470,094 | (1,684,540) | |||
| Net decrease in cash and cash equivalents | (779,327) | (557,477) | (221,850) | |||
| Cash and cash equivalents at beginning of period | 1,003,491 | 1,000,036 | 3,455 | |||
| Cash and cash equivalents at end of period | $ | 224,164 | $ | 442,559 | $ | (218,395) |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||
| Cash paid during the period for: | ||||||
| Interest - net of amount capitalized | $ | 270,673 | $ | 252,647 | $ | 18,026 |
| Income taxes | $ | 35,766 | $ | 68,923 | $ | (33,157) |
| Entergy Corporation | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| Consolidated Cash Flow Statement | ||||||
| Year to Date December 31, 2022 vs. 2021 | ||||||
| (Dollars in thousands) | ||||||
| (Unaudited) | ||||||
| 2022 | 2021 | Variance | ||||
| OPERATING ACTIVITIES | ||||||
| Consolidated net income | $ | 1,097,138 | $ | 1,118,719 | $ | (21,581) |
| Adjustments to reconcile consolidated net income to net cash | ||||||
| flow provided by operating activities: | ||||||
| Depreciation, amortization, and decommissioning, including nuclear fuel amortization | 2,190,371 | 2,242,944 | (52,573) | |||
| Deferred income taxes, investment tax credits, and non-current taxes accrued | (47,154) | 248,719 | (295,873) | |||
| Asset write-offs, impairments, and related charges (credits) | (163,464) | 263,599 | (427,063) | |||
| Changes in working capital: | ||||||
| Receivables | (157,267) | (84,629) | (72,638) | |||
| Fuel inventory | 6,943 | 18,359 | (11,416) | |||
| Accounts payable | (102,013) | 269,797 | (371,810) | |||
| Taxes accrued | 4,263 | (21,183) | 25,446 | |||
| Interest accrued | 4,113 | (10,640) | 14,753 | |||
| Deferred fuel costs | (393,746) | (466,050) | 72,304 | |||
| Other working capital accounts | (157,235) | (53,883) | (103,352) | |||
| Changes in provisions for estimated losses | 374,079 | (85,713) | 459,792 | |||
| Changes in other regulatory assets | 576,859 | (536,707) | 1,113,566 | |||
| Changes in other regulatory liabilities | (266,559) | 43,631 | (310,190) | |||
| Effects of securitization on regulatory asset | (941,035) | — | (941,035) | |||
| Changes in pension and other postretirement liabilities | (699,261) | (897,167) | 197,906 | |||
| Other | 1,259,458 | 250,917 | 1,008,541 | |||
| Net cash flow provided by operating activities | 2,585,490 | 2,300,713 | 284,777 | |||
| INVESTING ACTIVITIES | ||||||
| Construction/capital expenditures | (5,065,126) | (6,087,296) | 1,022,170 | |||
| Allowance for equity funds used during construction | 72,832 | 70,473 | 2,359 | |||
| Nuclear fuel purchases | (223,613) | (166,512) | (57,101) | |||
| Payment for purchase of assets | (106,193) | (168,304) | 62,111 | |||
| Net proceeds (payments) from sale of assets | (1,195) | 17,421 | (18,616) | |||
| Litigation proceeds from settlement agreement | 9,829 | — | 9,829 | |||
| Changes in securitization account | 15,514 | 13,669 | 1,845 | |||
| Payments to storm reserve escrow account | (1,494,048) | (25) | (1,494,023) | |||
| Receipts from storm reserve escrow account | 1,125,279 | 83,105 | 1,042,174 | |||
| Decrease (increase) in other investments | (3,328) | 2,343 | (5,671) | |||
| Litigation proceeds for reimbursement of spent nuclear fuel storage costs | 32,367 | 49,236 | (16,869) | |||
| Proceeds from nuclear decommissioning trust fund sales | 1,636,686 | 5,553,629 | (3,916,943) | |||
| Investment in nuclear decommissioning trust funds | (1,708,901) | (5,547,015) | 3,838,114 | |||
| Net cash flow used in investing activities | (5,709,897) | (6,179,276) | 469,379 | |||
| FINANCING ACTIVITIES | ||||||
| Proceeds from the issuance of: | ||||||
| Long-term debt | 6,019,835 | 8,308,427 | (2,288,592) | |||
| Treasury stock | 32,042 | 5,977 | 26,065 | |||
| Common stock | 852,555 | 200,776 | 651,779 | |||
| Retirement of long-term debt | (5,995,903) | (4,827,827) | (1,168,076) | |||
| Changes in credit borrowings and commercial paper - net | (373,556) | (426,312) | 52,756 | |||
| Capital contributions from noncontrolling interests | 24,702 | 51,202 | (26,500) | |||
| Proceeds from trust related to securitization | 3,163,572 | — | 3,163,572 | |||
| Other | 42,761 | 43,221 | (460) | |||
| Dividends paid: | ||||||
| Common stock | (841,677) | (775,122) | (66,555) | |||
| Preferred stock | (18,319) | (18,319) | — | |||
| Net cash flow provided by financing activities | 2,906,012 | 2,562,023 | 343,989 | |||
| Net decrease in cash and cash equivalents | (218,395) | (1,316,540) | 1,098,145 | |||
| Cash and cash equivalents at beginning of period | 442,559 | 1,759,099 | (1,316,540) | |||
| Cash and cash equivalents at end of period | $ | 224,164 | $ | 442,559 | $ | (218,395) |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||
| Cash paid during the period for: | ||||||
| Interest - net of amount capitalized | $ | 901,884 | $ | 843,228 | $ | 58,656 |
| Income taxes | $ | 28,354 | $ | 98,377 | $ | (70,023) |
31