Entergy New Orleans, LLC 8-K, filed Aug 1, 2024
Entergy New Orleans, LLC (ENJ)
8-K
2024-08-01
For: 2024-08-01
View Original
Added on
April 11, 2026
About this 8-K
Entergy New Orleans, LLC filed this 8-K on August 1, 2024.
Items reported
- Item 2.02: Financial results
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
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 of earliest event reported) August 1, 2024
Commission File Number | Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, Telephone Number, and IRS Employer Identification No. | Commission File Number | Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, Telephone Number, and IRS Employer Identification No. | |||||||||||
(a Telephone ( | (a Telephone ( | |||||||||||||
(a Telephone ( | (a Telephone ( | |||||||||||||
(a Telephone ( | (an Telephone ( | |||||||||||||
(a Telephone ( | ||||||||||||||
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.):
Securities registered pursuant to Section 12(b) of the Act:
| Registrant | Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||||
| Entergy Corporation | |||||||||||
| NYSE Chicago, Inc. | |||||||||||
| Entergy Arkansas, LLC | |||||||||||
| Entergy Louisiana, LLC | |||||||||||
| Entergy Mississippi, LLC | |||||||||||
| Entergy New Orleans, LLC | |||||||||||
| Entergy Texas, Inc. | |||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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 August 1, 2024, 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 second quarter 2024 (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 August 1, 2024, 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 second quarter 2024. 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 | |||||
| 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: August 1, 2024 | |||||
NEWS RELEASE
FOR IMMEDIATE RELEASE
August 1, 2024
Entergy reports second quarter earnings
Important settlements reached; guidance and outlooks affirmed
NEW ORLEANS – Entergy Corporation (NYSE: ETR) reported second quarter 2024 earnings per share of 23 cents on an as-reported basis and $1.92 on an adjusted (non-GAAP) basis.
“We successfully executed on key operational, customer, and regulatory fronts,” said Drew Marsh, Entergy Chair and Chief Executive Officer. “Having achieved several important milestones, we have paved the way to capture the robust growth in front of us and unlock exceptional value for all of our stakeholders.”
Business highlights included the following:
•E-LA reached an agreement in principle with the LPSC Staff and other parties to (1) extend and modify the formula rate plan, (2) establish the base FRP rate change for the 2023 test year, and (3) provide customer credits, including increasing customer sharing of tax benefits, to resolve several open matters; the agreement is subject to LPSC approval.
•SERI reached an agreement in principle with the LPSC Staff that substantially resolves the major litigation at SERI; the agreement is subject to LPSC and FERC approval.
•The MPSC approved E-MS’s FRP settlement.
•E-TX filed for a CCN to construct two hydrogen-capable power stations: the Legend Power Station, a 754-megawatt carbon-capture-enabled CCCT facility, and the Lone Star Power Station, a 453-megawatt CT facility.
•E-TX filed for a CCN for two owned solar facilities totaling 311 megawatts.
•E-TX submitted a DCRF filing to recover distribution investment since the rate case test year.
•The LPSC approved an enhanced renewable RFP process for up to 3 gigawatts of renewable resources.
•Entergy and NextEra Energy Resources, LLC announced a joint development agreement that will accelerate the development of up to 4.5 gigawatts of new, utility-owned solar generation and energy storage projects.
•E-TX filed Phase I of its Future Ready Resiliency Plan, which includes $335 million of investment to be completed over 3 years.
•E-AR and E-NO each submitted their annual FRP filings.
•Entergy was named to The Civic 50, a Points of Light initiative honoring the 50 most community-minded companies in the U.S.
Table of contents | Page | ||||
News release Appendices A: Consolidated results and adjustments B: Earnings variance analysis C: Utility operating and financial measures D: Consolidated financial measures E: Definitions and abbreviations and acronyms F: Other GAAP to non-GAAP reconciliations Financial statements | 1 7 8 11 14 15 16 18 20 | ||||
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Consolidated earnings (GAAP and non-GAAP measures) | ||||||||||||||||||||
Second quarter and year-to-date 2024 vs. 2023 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of adjustments) | ||||||||||||||||||||
| Second quarter | Year-to-date | |||||||||||||||||||
| 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||
(After-tax, $ in millions) | ||||||||||||||||||||
As-reported earnings | 49 | 391 | (342) | 124 | 702 | (578) | ||||||||||||||
Less adjustments | (362) | - | (362) | (517) | 69 | (586) | ||||||||||||||
Adjusted earnings (non-GAAP) | 411 | 391 | 20 | 641 | 634 | 8 | ||||||||||||||
Estimated weather impact | 56 | 15 | 41 | 30 | (32) | 62 | ||||||||||||||
(After-tax, per share in $) | ||||||||||||||||||||
As-reported earnings | 0.23 | 1.84 | (1.62) | 0.58 | 3.31 | (2.73) | ||||||||||||||
Less adjustments | (1.69) | - | (1.69) | (2.41) | 0.32 | (2.74) | ||||||||||||||
Adjusted earnings (non-GAAP) | 1.92 | 1.84 | 0.07 | 2.99 | 2.99 | 0.01 | ||||||||||||||
Estimated weather impact | 0.26 | 0.07 | 0.19 | 0.14 | (0.15) | 0.29 | ||||||||||||||
Calculations may differ due to rounding
Consolidated results
For second quarter 2024, the company reported earnings of $49 million, or 23 cents per share, on an as-reported basis, and earnings of $411 million, or $1.92 per share, on an adjusted basis. This compared to second quarter 2023 earnings of $391 million, or $1.84 per share, on an as-reported and an adjusted basis.
Summary discussions by business follow. Additional details, including information on OCF by business, are provided in Appendix A. An analysis of variances by business is provided in Appendix B.
Business results
Utility
For second quarter 2024, the Utility business reported earnings attributable to Entergy Corporation of $441 million, or $2.06 per share, on an as-reported basis and $553 million, or $2.58 per share, on an adjusted basis. This compared to second quarter 2023 earnings of $514 million, or $2.42 per share, on an as-reported and an adjusted basis.
Second quarter 2024 results included expenses totaling $(151 million) ($(112 million) after tax) recorded as a result of Entergy Louisiana’s agreement in principle with the LPSC Staff and other parties. The settlement, if approved, will extend and modify the formula rate plan; establish the base FRP rate change for the 2023 test year; and provide $184 million of customer rate credits, including increasing customer sharing of income tax benefits resulting from the 2016-2018 IRS audit resolution (a reserve of $38 million was previously established), to resolve several open matters, including all formula rate plans prior to the 2023 test year (considered an adjustment and excluded from adjusted earnings).
Other drivers for the quarter included:
•higher retail sales volume including the effects of weather,
•the net effect of regulatory actions across the operating companies, and
•lower non-service pension costs included in other income (deductions).
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August 1, 2024
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These drivers were partially offset by:
•higher operating expenses including other O&M and depreciation, and
•higher interest expense.
On a per share basis, second quarter 2024 results reflected higher diluted average number of common shares outstanding.
Appendix C contains additional details on Utility operating and financial measures.
Parent & Other
For second quarter 2024, Parent & Other reported a loss attributable to Entergy Corporation of $(392 million), or $(1.83) per share, on an as-reported basis, and a loss of $(142 million), or (66) cents per share, on an adjusted basis. This compared to a second quarter 2023 loss of $(123 million), or (58) cents per share, on an as-reported and an adjusted basis.
The quarter-over-quarter as-reported decline was primarily due to a $(317 million) ($(250 million) after tax) settlement charge recognized as a result of a group annuity contract purchased in May 2024 to settle certain pension liabilities, also referred to as the pension lift out (considered an adjustment and excluded from adjusted earnings).
Higher interest expense was also a driver for the quarter.
On a per share basis, second quarter 2024 results reflected higher diluted average number of common shares outstanding.
Earnings per share guidance
Entergy affirmed its 2024 adjusted EPS guidance range of $7.05 to $7.35. See webcast presentation for additional details.
The company has provided 2024 earnings guidance with regard to the non-GAAP measure of adjusted earnings per share. This measure excludes from the corresponding GAAP financial measure the effect of adjustments as described below under “Non-GAAP financial measures.” The company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot predict and quantify with a reasonable degree of confidence all of the adjustments that may occur during the period. Potential adjustments include the exclusion of regulatory charges related to outstanding regulatory complaints and significant income tax items.
Earnings teleconference
A teleconference will be held at 10:00 a.m. Central Time on Thursday, August 1, 2024, to discuss Entergy’s quarterly earnings announcement and the company’s financial performance. The teleconference may be accessed by visiting Entergy’s website at
investors.entergy.com/investors/events-and-presentations or by dialing 888-440-4149, conference ID 9024832, no more than 15 minutes prior to the start of the call. The webcast presentation is also being posted to Entergy’s website concurrent with this news release. A replay of the teleconference will be available on Entergy’s website at investors.entergy.com/investors/events-and-presentations and by telephone. The telephone replay will be available through August 8, 2024, by dialing 800-770-2030, conference ID 9024832.
investors.entergy.com/investors/events-and-presentations or by dialing 888-440-4149, conference ID 9024832, no more than 15 minutes prior to the start of the call. The webcast presentation is also being posted to Entergy’s website concurrent with this news release. A replay of the teleconference will be available on Entergy’s website at investors.entergy.com/investors/events-and-presentations and by telephone. The telephone replay will be available through August 8, 2024, by dialing 800-770-2030, conference ID 9024832.
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August 1, 2024
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Entergy is a Fortune 500 company that powers life for 3 million customers through our operating companies in Arkansas, Louisiana, Mississippi, and Texas. We’re investing in the reliability and resilience of the energy system while helping our region transition to cleaner, more efficient energy solutions. With roots in our communities for more than 100 years, Entergy is a nationally recognized leader in sustainability and corporate citizenship. Since 2018, we have delivered more than $100 million in economic benefits each year to local communities through philanthropy, volunteerism, and advocacy. Entergy is headquartered in New Orleans, Louisiana, and has approximately 12,000 employees.
Entergy Corporation’s common stock is listed on the New York Stock Exchange and NYSE Chicago under the symbol “ETR”.
Details regarding Entergy’s results of operations, regulatory proceedings, and other matters are available in this earnings release, a copy of which will be filed with the SEC, and the webcast presentation. Both documents are available on Entergy’s Investor Relations website at investors.entergy.com/investors/events-and-presentations.
Entergy maintains a web page as part of its Investor Relations website, entitled Regulatory and other information, which provides investors with key updates on certain regulatory proceedings and important milestones on the execution of its strategy. While some of this information may be considered material information, investors should not rely exclusively on this page for all relevant company information.
For definitions of certain operating measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the earnings release materials, see Appendix E.
Non-GAAP financial measures
This news release contains non-GAAP financial measures, which are generally numerical measures of a company’s performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Entergy has provided quantitative reconciliations within this news release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Entergy reports earnings using the non-GAAP measure of Entergy adjusted earnings, which excludes the effect of certain “adjustments.” Adjustments are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as significant tax items, and other items such as certain costs, expenses, or other specified items. In addition to reporting GAAP earnings on a per share basis, Entergy reports its adjusted earnings on a per share basis. These per share measures represent the applicable earnings amount divided by the diluted average number of common shares outstanding for the period.
Management uses the non-GAAP financial measures of adjusted earnings and adjusted earnings per share for, among other things, financial planning and analysis; reporting financial results to the board of directors, employees, stockholders, analysts, and investors; and internal evaluation of financial performance. Entergy believes that these non-GAAP financial measures provide useful information to investors in evaluating the ongoing results of Entergy’s business, comparing period to period results, and comparing Entergy’s financial performance to the financial performance of other companies in the utility sector.
Other non-GAAP measures, including adjusted ROE; adjusted ROE, excluding affiliate preferred; FFO to adjusted debt; gross liquidity; net liquidity; adjusted Parent debt to total adjusted debt; adjusted debt to adjusted capitalization; and adjusted net debt to adjusted net capitalization are measures Entergy uses internally for management and board discussions and to gauge the overall strength of its
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August 1, 2024
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business. Entergy believes the above data provides useful information to investors in evaluating Entergy’s ongoing financial results and flexibility and assists investors in comparing Entergy’s credit and liquidity to the credit and liquidity of others in the utility sector. Metrics defined as “adjusted” exclude the effect of adjustments as defined above.
These non-GAAP financial measures reflect an additional way of viewing aspects of Entergy’s operations that, when viewed with Entergy’s GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting Entergy’s business. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. Investors are strongly encouraged to review Entergy’s consolidated financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Although certain of these measures are intended to assist investors in comparing Entergy’s performance to other companies in the utility sector, non-GAAP financial measures are not standardized; therefore, it might not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.
Cautionary note regarding forward-looking statements
In this news release, and from time to time, Entergy Corporation makes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, among other things, statements regarding Entergy’s 2024 earnings guidance; current financial and operational outlooks; industrial load growth outlooks; statements regarding its climate transition and resilience plans, goals, beliefs, or expectations; and other statements of Entergy’s plans, beliefs, or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Forward-looking statements are subject to a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy’s most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q, and Entergy’s other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans, and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent or on the timeline anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with (1) realizing the benefits of its resilience plan, including impacts of the frequency and intensity of future storms and storm paths, as well as the pace of project completion and (2) efforts to remediate the effects of major storms and recover related restoration costs; (d) risks associated with operating nuclear facilities, including plant relicensing, operating, and regulatory costs and risks; (e) changes in decommissioning trust values or earnings or in the timing or cost of decommissioning Entergy’s nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with executing on business strategies, including strategic transactions that Entergy or its subsidiaries may undertake and the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) direct and indirect impacts to Entergy or its customers from pandemics, terrorist attacks, geopolitical conflicts, cybersecurity threats, data security breaches, or other attempts to disrupt Entergy’s business or operations, and/or other catastrophic events; and (i) effects on Entergy or its customers of (1) changes in federal, state, or local
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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.
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Media inquiries: Neal Kirby 504-576-4238 nkirby@entergy.com | Investor relations inquiries: Bill Abler 281-297-5436 wabler@entergy.com | ||||
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Second quarter 2024 earnings release appendices and financial statements
Appendices
A: Consolidated results and adjustments
B: Earnings variance analysis
C: Utility operating and financial measures
D: Consolidated financial measures
E: Definitions and abbreviations and acronyms
F: Other GAAP to non-GAAP reconciliations
Financial statements
Consolidating balance sheets
Consolidating income statements
Consolidated cash flow statements
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A: Consolidated results and adjustments
Appendix A-1 provides a comparative summary of consolidated earnings, including a reconciliation of as-reported earnings (GAAP) to adjusted earnings (non-GAAP).
Appendix A-1: Consolidated earnings - reconciliation of GAAP to non-GAAP measures Second quarter and year-to-date 2024 vs. 2023 (See Appendix A-2 and Appendix A-3 for details on adjustments) | ||||||||||||||||||||
| Second quarter | Year-to-date | |||||||||||||||||||
| 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||
| (After-tax, $ in millions) | ||||||||||||||||||||
| As-reported earnings (loss) | ||||||||||||||||||||
| Utility | 441 | 514 | (73) | 636 | 912 | (275) | ||||||||||||||
| Parent & Other | (392) | (123) | (269) | (512) | (209) | (303) | ||||||||||||||
| Consolidated | 49 | 391 | (342) | 124 | 702 | (578) | ||||||||||||||
| Less adjustments | ||||||||||||||||||||
| Utility | (112) | - | (112) | (267) | 69 | (336) | ||||||||||||||
| Parent & Other | (250) | - | (250) | (250) | - | (250) | ||||||||||||||
| Consolidated | (362) | - | (362) | (517) | 69 | (586) | ||||||||||||||
| Adjusted earnings (loss) (non-GAAP) | ||||||||||||||||||||
| Utility | 553 | 514 | 39 | 903 | 843 | 60 | ||||||||||||||
| Parent & Other | (142) | (123) | (19) | (262) | (209) | (52) | ||||||||||||||
| Consolidated | 411 | 391 | 20 | 641 | 634 | 8 | ||||||||||||||
| Estimated weather impact | 56 | 15 | 41 | 30 | (32) | 62 | ||||||||||||||
| Diluted average number of common shares outstanding (in millions) | 214 | 212 | 2 | 214 | 212 | 2 | ||||||||||||||
(After-tax, per share in $) (a) | ||||||||||||||||||||
| As-reported earnings (loss) | ||||||||||||||||||||
| Utility | 2.06 | 2.42 | (0.37) | 2.97 | 4.30 | (1.33) | ||||||||||||||
| Parent & Other | (1.83) | (0.58) | (1.25) | (2.39) | (0.99) | (1.40) | ||||||||||||||
| Consolidated | 0.23 | 1.84 | (1.62) | 0.58 | 3.31 | (2.73) | ||||||||||||||
| Less adjustments | ||||||||||||||||||||
| Utility | (0.52) | - | (0.52) | (1.25) | 0.32 | (1.57) | ||||||||||||||
| Parent & Other | (1.17) | - | (1.17) | (1.17) | - | (1.17) | ||||||||||||||
| Consolidated | (1.69) | - | (1.69) | (2.41) | 0.32 | (2.74) | ||||||||||||||
| Adjusted earnings (loss) (non-GAAP) | ||||||||||||||||||||
| Utility | 2.58 | 2.42 | 0.16 | 4.22 | 3.97 | 0.24 | ||||||||||||||
| Parent & Other | (0.66) | (0.58) | (0.08) | (1.22) | (0.99) | (0.24) | ||||||||||||||
| Consolidated | 1.92 | 1.84 | 0.07 | 2.99 | 2.99 | 0.01 | ||||||||||||||
| Estimated weather impact | 0.26 | 0.07 | 0.19 | 0.14 | (0.15) | 0.29 | ||||||||||||||
Calculations may differ due to rounding
(a) Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period.
See Appendix B for detailed earnings variance analysis.
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Appendix A-2 and Appendix A-3 detail adjustments by business. Adjustments are included in as-reported earnings consistent with GAAP but are excluded from adjusted earnings. As a result, adjusted earnings is considered a non-GAAP measure.
Appendix A-2: Adjustments by driver (shown as positive/(negative) impact on earnings or EPS) | ||||||||||||||||||||
| Second quarter and year-to-date 2024 vs. 2023 | ||||||||||||||||||||
| Second quarter | Year-to-date | |||||||||||||||||||
| 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||
| (Pre-tax except for income taxes and totals; $ in millions) | ||||||||||||||||||||
| Utility | ||||||||||||||||||||
2Q24 E-LA global agreement to resolve its FRP extension filing and other retail matters | (151) | - | (151) | (151) | - | (151) | ||||||||||||||
1Q24 E-AR write-off of a regulatory asset related to the opportunity sales proceeding | - | - | - | (132) | - | (132) | ||||||||||||||
1Q24 E-NO increase in customer sharing of tax benefits as a result of the 2016–2018 IRS audit resolution | - | - | - | (79) | - | (79) | ||||||||||||||
1Q23 impacts from E-LA storm cost approval and securitization, including customer sharing (excluding income tax item below) | - | - | - | - | (87) | 87 | ||||||||||||||
Income tax effect on Utility adjustments above | 39 | - | 39 | 95 | 27 | 68 | ||||||||||||||
1Q23 E-LA income tax benefit resulting from securitization | - | - | - | - | 129 | (129) | ||||||||||||||
| Total Utility | (112) | - | (112) | (267) | 69 | (336) | ||||||||||||||
| Parent & Other | ||||||||||||||||||||
2Q24 pension lift out | (317) | - | (317) | (317) | - | (317) | ||||||||||||||
Income tax effect on Parent & Other adjustment above | 67 | - | 67 | 67 | - | 67 | ||||||||||||||
| Total Parent & Other | (250) | - | (250) | (250) | - | (250) | ||||||||||||||
| Total adjustments | (362) | - | (362) | (517) | 69 | (586) | ||||||||||||||
(After-tax, per share in $) (b) | ||||||||||||||||||||
| Utility | ||||||||||||||||||||
2Q24 E-LA global agreement to resolve its FRP extension filing and other retail matters | (0.52) | - | (0.52) | (0.52) | - | (0.52) | ||||||||||||||
1Q24 E-AR write-off of a regulatory asset related to the opportunity sales proceeding | - | - | - | (0.45) | - | (0.45) | ||||||||||||||
1Q24 E-NO increase in customer sharing of tax benefits as a result of the 2016–2018 IRS audit resolution | - | - | - | (0.27) | - | (0.27) | ||||||||||||||
1Q23 impacts from E-LA storm cost approval and securitization, including customer sharing | - | - | - | - | 0.32 | (0.32) | ||||||||||||||
Total Utility | (0.52) | - | (0.52) | (1.25) | 0.32 | (1.57) | ||||||||||||||
| Parent & Other | ||||||||||||||||||||
2Q24 pension lift out | (1.17) | - | (1.17) | (1.17) | - | (1.17) | ||||||||||||||
| Total Parent & Other | (1.17) | - | (1.17) | (1.17) | - | (1.17) | ||||||||||||||
| Total adjustments | (1.69) | - | (1.69) | (2.41) | 0.32 | (2.74) | ||||||||||||||
Calculations may differ due to rounding
(b) Per share amounts are calculated by multiplying the corresponding earnings (loss) by the estimated income tax rate that is expected to apply and dividing by the diluted average number of common shares outstanding for the period.
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| Appendix A-3: Adjustments by income statement line item (shown as positive/ (negative) impact on earnings) | ||||||||||||||||||||
| Second quarter and year-to-date 2024 vs. 2023 | ||||||||||||||||||||
| (Pre-tax except for income taxes and totals; $ in millions) | ||||||||||||||||||||
| Second quarter | Year-to-date | |||||||||||||||||||
| 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||
| Utility | ||||||||||||||||||||
| Operating revenues | - | - | - | - | 31 | (31) | ||||||||||||||
| Other O&M | (1) | - | (1) | (1) | - | (1) | ||||||||||||||
| Asset write-offs, impairments, and related charges | - | - | - | (132) | - | (132) | ||||||||||||||
| Other regulatory charges (credits) – net | (150) | - | (150) | (229) | (103) | (125) | ||||||||||||||
| Other income (deductions) – other | - | - | - | - | (15) | 15 | ||||||||||||||
| Income taxes | 39 | - | 39 | 95 | 156 | (61) | ||||||||||||||
| Total Utility | (112) | - | (112) | (267) | 69 | (336) | ||||||||||||||
| Parent & Other | ||||||||||||||||||||
| Other income (deductions) – other | (317) | - | (317) | (317) | - | (317) | ||||||||||||||
| Income taxes | 67 | - | 67 | 67 | - | 67 | ||||||||||||||
| Total Parent & Other | (250) | - | (250) | (250) | - | (250) | ||||||||||||||
| Total adjustments | (362) | - | (362) | (517) | 69 | (586) | ||||||||||||||
Calculations may differ due to rounding
Appendix A-4 provides a comparative summary of OCF by business.
| Appendix A-4: Consolidated operating cash flow | ||||||||||||||||||||
| Second quarter and year-to-date 2024 vs. 2023 | ||||||||||||||||||||
| ($ in millions) | ||||||||||||||||||||
| Second quarter | Year-to-date | |||||||||||||||||||
| 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||
| Utility | 1,111 | 936 | 174 | 1,626 | 1,915 | (289) | ||||||||||||||
| Parent & Other | (85) | (70) | (15) | (79) | (88) | 9 | ||||||||||||||
| Consolidated | 1,025 | 866 | 159 | 1,546 | 1,826 | (280) | ||||||||||||||
Calculations may differ due to rounding
OCF increased for the quarter primarily due to the timing of payments to vendors and higher customer receipts.
10
B: Earnings variance analysis
Appendix B-1 and Appendix B-2 provide details of current quarter and year-to-date 2024 versus 2023 as-reported and adjusted earnings per share variances for Utility and Parent & Other.
Appendix B-1: As-reported and adjusted earnings per share variance analysis (c), (d), (e) | ||||||||||||||||||||||||||
| Second quarter 2024 vs. 2023 | ||||||||||||||||||||||||||
| (After-tax, per share in $) | ||||||||||||||||||||||||||
| Utility | Parent & Other | Consolidated | ||||||||||||||||||||||||
As- reported | Adjusted | As- reported | Adjusted | As- reported | Adjusted | |||||||||||||||||||||
| 2023 earnings (loss) | 2.42 | 2.42 | (0.58) | (0.58) | 1.84 | 1.84 | ||||||||||||||||||||
Operating revenue less: fuel, fuel-related expenses and gas purchased for resale; purchased power; and other regulatory charges (credits) – net | (0.16) | 0.36 | (f) | (0.02) | (0.02) | (0.19) | 0.33 | |||||||||||||||||||
Nuclear refueling outage expenses | (0.01) | (0.01) | - | - | (0.01) | (0.01) | ||||||||||||||||||||
Other O&M | (0.15) | (0.14) | (g) | - | - | (0.15) | (0.14) | |||||||||||||||||||
Asset write-offs, impairments, and related charges | - | - | - | - | - | - | ||||||||||||||||||||
Decommissioning | (0.01) | (0.01) | - | - | (0.01) | (0.01) | ||||||||||||||||||||
Taxes other than income taxes | (0.01) | (0.01) | - | - | (0.01) | (0.01) | ||||||||||||||||||||
Depreciation and amortization | (0.13) | (0.13) | (h) | - | - | (0.13) | (0.13) | |||||||||||||||||||
Other income (deductions) | 0.18 | 0.18 | (i) | (1.17) | 0.01 | (j) | (0.99) | 0.19 | ||||||||||||||||||
Interest expense | (0.07) | (0.07) | (k) | (0.07) | (0.07) | (l) | (0.14) | (0.14) | ||||||||||||||||||
Income taxes – other | 0.03 | 0.03 | (0.01) | (0.01) | 0.02 | 0.02 | ||||||||||||||||||||
Preferred dividend requirements and noncontrolling interests | - | - | - | - | - | - | ||||||||||||||||||||
Share effect | (0.02) | (0.03) | 0.02 | 0.01 | - | (0.02) | ||||||||||||||||||||
2024 earnings (loss) | 2.06 | 2.58 | (1.83) | (0.66) | 0.23 | 1.92 | ||||||||||||||||||||
h
Calculations may differ due to rounding
11
Appendix B-2: As-reported and adjusted earnings per share variance analysis (c), (d), (e) | ||||||||||||||||||||||||||
| Year-to-date 2024 vs. 2023 | ||||||||||||||||||||||||||
| (After-tax, per share in $) | ||||||||||||||||||||||||||
| Utility | Parent & Other | Consolidated | ||||||||||||||||||||||||
As- reported | Adjusted | As- reported | Adjusted | As- reported | Adjusted | |||||||||||||||||||||
2023 earnings (loss) | 4.30 | 3.97 | (0.99) | (0.99) | 3.31 | 2.99 | ||||||||||||||||||||
Operating revenue less: fuel, fuel-related expenses and gas purchased for resale; purchased power; and other regulatory charges (credits) – net | (0.16) | 0.42 | (f) | (0.03) | (0.03) | (0.19) | 0.39 | |||||||||||||||||||
Nuclear refueling outage expenses | (0.02) | (0.02) | - | - | (0.02) | (0.02) | ||||||||||||||||||||
Other O&M | (0.36) | (0.36) | (g) | 0.02 | 0.02 | (0.34) | (0.34) | |||||||||||||||||||
Asset write-offs, impairments, and related charges | (0.46) | - | (m) | - | - | (0.46) | - | |||||||||||||||||||
Decommissioning | (0.02) | (0.02) | - | - | (0.02) | (0.02) | ||||||||||||||||||||
Taxes other than income taxes | (0.04) | (0.04) | - | - | (0.04) | (0.04) | ||||||||||||||||||||
Depreciation and amortization | (0.29) | (0.29) | (h) | - | - | (0.29) | (0.29) | |||||||||||||||||||
Other income (deductions) | 0.71 | 0.64 | (i) | (1.29) | (0.11) | (j) | (0.58) | 0.53 | ||||||||||||||||||
Interest expense | (0.11) | (0.11) | (k) | (0.11) | (0.11) | (l) | (0.22) | (0.22) | ||||||||||||||||||
Income taxes – other | (0.55) | 0.05 | (n) | (0.02) | (0.02) | (0.57) | 0.04 | |||||||||||||||||||
Preferred dividend requirements and noncontrolling interests | - | - | - | - | - | - | ||||||||||||||||||||
Share effect | (0.03) | (0.04) | 0.02 | 0.01 | (0.01) | (0.03) | ||||||||||||||||||||
2024 earnings (loss) | 2.97 | 4.22 | (2.39) | (1.22) | 0.58 | 2.99 | ||||||||||||||||||||
Calculations may differ due to rounding
12
(c) Utility operating revenue and Utility income taxes – other excluded the following for the amortization of unprotected excess ADIT affecting customers’ bills (net effect is neutral to earnings) ($ in millions):
2Q24 | 2Q23 | YTD24 | YTD23 | |||||||||||
Utility operating revenue | 8 | 5 | 16 | 3 | ||||||||||
Utility income taxes – other | (8) | (5) | (16) | (3) | ||||||||||
(d) Utility regulatory charges (credits) – net and Utility preferred dividend requirements and noncontrolling interests excluded the following for the effects of HLBV accounting and the approved deferral (net effect is neutral to earnings) ($ millions):
2Q24 | 2Q23 | YTD24 | YTD23 | |||||||||||
Utility regulatory charges (credits) – net | (2) | (5) | (5) | (8) | ||||||||||
Utility preferred dividend requirements and noncontrolling interests | 2 | 5 | 5 | 8 | ||||||||||
(e) EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply and dividing by diluted average number of common shares outstanding for the prior period. Income taxes – other represents income tax differences other than the income tax effect of individual line items. Share effect captures the per share impact from the change in diluted average number of common shares outstanding.
(f) The second quarter and year-to-date as-reported decreases included the effects of recording a $(150 million) ($(111 million) after tax) regulatory charge as a result of E-LA reaching an agreement in principle with the LPSC staff and other parties; the terms include $184 million of customer rate credits, including increasing customer sharing of income tax benefits resulting from the 2016-2018 IRS audit resolution (a reserve of $38 million was previously established), to resolve several open matters including all formula rate plans prior to the 2023 test year (considered an adjustment and excluded from adjusted earnings). The year-to-date as-reported decrease also reflected a first quarter 2024 regulatory charge for $(79 million) ($(57 million) after tax) recorded by E-NO to provide for sharing additional income tax benefits from the 2016–2018 IRS audit resolution with customers (considered an adjustment and excluded from adjusted earnings). The year-to-date as-reported decrease was partially offset by the net effect of items recorded in first quarter 2023 which resulted from E-LA’s securitization including $103 million ($76 million after tax) for a regulatory provision for customer sharing and $(31 million) ($(31 million) after tax) for a true-up of carrying charges on storm costs (both were considered adjustments and excluded from adjusted earnings). The second quarter and year-to-date variances also included the effects of higher retail sales volume, including the effects of weather; and regulatory actions including E-AR’s FRP, E-LA’s FRP (including riders), E-MS’s FRP, and E-TX’s base rate case. The variances also reflected a change in regulatory provisions for decommissioning items (based on regulatory treatment, decommissioning-related variances are offset in other lines items and are largely earnings neutral), and a wholesale contract termination (the sales from this agreement are now included in retail sales).
Utility as-reported operating revenue less fuel, fuel-related expenses and gas purchased for resale; purchased power; and other regulatory charges (credits) – net variance analysis 2024 vs. 2023 ($ EPS) | ||||||||
| 2Q | YTD | |||||||
Electric volume / weather | 0.28 | 0.35 | ||||||
Retail electric price | 0.23 | 0.49 | ||||||
2Q24 E-LA global agreement to resolve its FRP extension filing and other retail matters | (0.52) | (0.52) | ||||||
2Q24 E-MS 2024 FRP rate implementation | 0.03 | 0.03 | ||||||
1Q24 E-NO provision for increased income tax sharing | - | (0.27) | ||||||
1Q23 impacts from E-LA storm cost approval and securitization, including customer sharing | - | 0.22 | ||||||
E-LA wholesale contract termination | (0.04) | (0.06) | ||||||
Reg. provisions for decommissioning items | (0.10) | (0.41) | ||||||
Other, including Grand Gulf recovery | (0.04) | 0.01 | ||||||
Total | (0.16) | (0.16) | ||||||
(g) The second quarter and year-to-date earnings decreases from higher Utility other O&M were driven by an increase in contract costs related to operational performance, customer service, and organizational health initiatives; higher energy efficiency costs primarily due to the timing of recovery from customers; a second quarter 2023 gain on the partial sale of a service center as part of an eminent domain proceeding; and higher MISO transmission costs. The year-to-date decrease also reflected higher compensation and benefits costs due primarily to higher healthcare claims activity; the recognition of an E-AR DOE judgment in first quarter 2023; and higher nuclear generation expenses, primarily due to a higher scope of work performed in 2024 as compared to 2023, including during plant outages.
13
(h) The second quarter and year-to-date earnings decreases from higher Utility depreciation and amortization were primarily due to higher plant in service, the recognition of depreciation from E-TX’s 2022 base rate case relate back, and an increase in depreciation rates for E-TX effective June 2023. The decrease was partially offset by lower depreciation rates for SERI effective June 2023.
(i) The second quarter and year-to-date earnings increases from higher Utility other income (deductions) were largely due to changes in nuclear decommissioning trust returns, including portfolio rebalancing in 2024 (based on regulatory treatment, decommissioning-related variances are offset in other line items and are largely earnings neutral). Lower non-service pension costs also contributed to the increase. The year-to-date increase also reflected higher intercompany dividend income from affiliate preferred membership interests related to 2023 storm cost securitizations (largely offset in P&O), and a $15 million ($15 million after tax) charge recorded in the first quarter 2023 to account for LURC’s 1% beneficial interest in the storm trust established as part of E-LA’s 2023 storm cost securitization (considered an adjustment and excluded from adjusted earnings).
(j) The second quarter and year-to-date as-reported earnings decreases from Parent & Other other income (deductions) were due to a $(317 million) ($(250 million) after tax) one-time non-cash pension settlement charge associated with the purchase of a group annuity contract to settle certain pension liabilities (considered an adjustment and excluded from adjusted earnings). The year-to-date decrease also reflected higher intercompany dividends associated with affiliate preferred membership interests resulting from E-LA’s securitizations (largely offset at Utility).
(k) The second quarter and year-to-date earnings decreases from higher Utility interest expense were primarily due to higher interest rates as well as higher debt balances.
(l) The second quarter and year-to-date earnings decreases from higher Parent & Other interest expense were primarily due to higher commercial paper balances and the issuance of $1.2 billion of junior subordinated debentures in May 2024.
(m) The year-to-date as-reported earnings decrease from higher Utility asset write-offs, impairments, and related charges was due to the first quarter 2024 write-off of an E-AR regulatory asset totaling $(132 million) ($(97 million) after tax) related to the opportunity sales proceeding (considered an adjustment and excluded from adjusted earnings).
(n) The year-to-date as-reported earnings decrease from Utility income taxes – other was largely due to a $129 million income tax benefit recorded in first quarter 2023 related to storm cost securitization financing (considered an adjustment and excluded from adjusted earnings). The year-to-date variance also reflected several individually insignificant items.
14
C: Utility operating and financial measures
Appendix C provides a comparison of Utility operating and financial measures.
| Appendix C: Utility operating and financial measures | ||||||||||||||||||||||||||
| Second quarter and year-to-date 2024 vs. 2023 | ||||||||||||||||||||||||||
| Second quarter | Year-to-date | |||||||||||||||||||||||||
| 2024 | 2023 | % Change | % Weather adjusted (o) | 2024 | 2023 | % Change | % Weather adjusted (o) | |||||||||||||||||||
| GWh sold | ||||||||||||||||||||||||||
Residential | 9,557 | 9,027 | 5.9 | 0.3 | 17,315 | 16,303 | 6.2 | 0.8 | ||||||||||||||||||
Commercial | 7,236 | 6,969 | 3.8 | 2.0 | 13,460 | 13,217 | 1.8 | 0.4 | ||||||||||||||||||
Governmental | 626 | 608 | 3.0 | 1.9 | 1,198 | 1,185 | 1.1 | 1.3 | ||||||||||||||||||
Industrial | 13,973 | 13,301 | 5.1 | 5.1 | 26,633 | 26,041 | 2.3 | 2.3 | ||||||||||||||||||
Total retail sales | 31,392 | 29,905 | 5.0 | 2.9 | 58,606 | 56,746 | 3.3 | 1.4 | ||||||||||||||||||
Wholesale | 3,052 | 3,171 | (3.8) | 7,010 | 7,674 | (8.7) | ||||||||||||||||||||
Total sales | 34,444 | 33,076 | 4.1 | 65,616 | 64,420 | 1.9 | ||||||||||||||||||||
| Number of electric retail customers | ||||||||||||||||||||||||||
Residential | 2,592,846 | 2,571,543 | 0.8 | |||||||||||||||||||||||
Commercial | 370,219 | 368,731 | 0.4 | |||||||||||||||||||||||
Governmental | 18,042 | 18,146 | (0.6) | |||||||||||||||||||||||
Industrial | 42,294 | 43,359 | (2.5) | |||||||||||||||||||||||
Total retail customers | 3,023,401 | 3,001,779 | 0.7 | |||||||||||||||||||||||
| Other O&M and nuclear refueling outage exp. per MWh | 20.99 | 20.53 | 2.2 | $21.98 | $20.74 | 6.0 | ||||||||||||||||||||
Calculations may differ due to rounding
(o) The effects of weather were estimated using heating degree days and cooling degree days for the period from certain locations within each jurisdiction and comparing to “normal” weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change.
For the quarter, on a weather-adjusted basis, retail sales increased 2.9 percent, with increases across all customer classes. Industrial sales was the biggest contributor with 5.1 percent growth mainly due to higher sales to large industrial customers primarily in the petroleum refining industry.
15
D: Consolidated financial measures
Appendix D provides comparative financial measures. Financial measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP financial measures.
Appendix D: GAAP and non-GAAP financial measures | |||||||||||
Second quarter 2024 vs. 2023 (See Appendix F for reconciliation of GAAP to non-GAAP financial measures) | |||||||||||
For 12 months ending June 30 | 2024 | 2023 | Change | ||||||||
GAAP measure | |||||||||||
As-reported ROE | 12.8% | 11.0% | 1.8% | ||||||||
Non-GAAP financial measure | |||||||||||
Adjusted ROE | 10.4% | 10.6% | (0.2)% | ||||||||
As of June 30 ($ in millions, except where noted) | 2024 | 2023 | Change | ||||||||
GAAP measures | |||||||||||
Cash and cash equivalents | 1,355 | 1,194 | 161 | ||||||||
Available revolver capacity | 4,345 | 4,216 | 129 | ||||||||
Commercial paper | 932 | 1,108 | (176) | ||||||||
Total debt | 28,846 | 27,362 | 1,484 | ||||||||
Junior subordinated debentures | 1,200 | - | 1,200 | ||||||||
Securitization debt | 249 | 278 | (29) | ||||||||
Debt to capital | 66% | 67% | (1)% | ||||||||
| Storm escrows | 333 | 411 | (78) | ||||||||
Non-GAAP financial measures ($ in millions, except where noted) | |||||||||||
Adjusted debt to adjusted capitalization | 64% | 67% | (2)% | ||||||||
Adjusted net debt to adjusted net capitalization | 63% | 66% | (2)% | ||||||||
Gross liquidity | 5,700 | 5,410 | 290 | ||||||||
Net liquidity | 5,915 | 4,761 | 1,154 | ||||||||
Adjusted parent debt to total adjusted debt | 20% | 19% | 0% | ||||||||
FFO to adjusted debt | 13.8% | 11.7% | 2.1% | ||||||||
Calculations may differ due to rounding
16
E: Definitions and abbreviations and acronyms
Appendix E-1 provides definitions of certain operating measures, as well as GAAP and non-GAAP financial measures.
| Appendix E-1: Definitions | |||||
| Utility operating and financial measures | |||||
GWh sold | Total number of GWh sold to retail and wholesale customers | ||||
Number of electric retail customers | Average number of electric customers over the period | ||||
Other O&M and refueling outage expense per MWh | Other operation and maintenance expense plus nuclear refueling outage expense per MWh of total sales | ||||
| Financial measures – GAAP | |||||
As-reported ROE | Last twelve months net income attributable to Entergy Corp. divided by avg. common equity | ||||
Debt to capital | Total debt divided by total capitalization | ||||
Available revolver capacity | Amount of undrawn capacity remaining on corporate and subsidiary revolvers | ||||
Securitization debt | Debt on the balance sheet associated with securitization bonds that is secured by certain future customer collections | ||||
Total debt | Sum of short-term and long-term debt, notes payable, and commercial paper | ||||
| Financial measures – non-GAAP | |||||
Adjusted capitalization | Capitalization excluding securitization debt | ||||
Adjusted debt | Debt excluding securitization debt and 50% of junior subordinated debentures | ||||
Adjusted debt to adjusted capitalization | Adjusted debt divided by adjusted capitalization | ||||
Adjusted EPS | As-reported earnings minus adjustments, divided by the diluted average number of common shares outstanding | ||||
Adjusted net capitalization | Adjusted capitalization minus cash and cash equivalents | ||||
Adjusted net debt | Adjusted debt minus cash and cash equivalents | ||||
Adjusted net debt to adjusted net capitalization | Adjusted net debt, divided by adjusted net capitalization | ||||
Adjusted Parent debt | Entergy Corp. debt, including amounts drawn on credit revolver and commercial paper facilities, minus 50% of junior subordinated debentures | ||||
Adjusted Parent debt to total adjusted debt | Adjusted Parent debt divided by total adjusted debt | ||||
Adjusted ROE | Last twelve months adjusted earnings divided by average common equity | ||||
Adjusted ROE excluding affiliate preferred | Last twelve months adjusted earnings, excluding dividend income from affiliate preferred as well as the after-tax cost of debt financing for preferred investment, divided by average common equity adjusted to exclude the estimated equity associated with the affiliate preferred investment | ||||
Adjustments | Unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as significant tax items, and other items such as certain costs, expenses, or other specified items | ||||
FFO | OCF minus AFUDC-borrowed funds, working capital items in OCF (receivables, fuel inventory, accounts payable, taxes accrued, interest accrued, deferred fuel costs, and other working capital accounts), 50% of interest on junior subordinated debentures, and securitization regulatory charges | ||||
FFO to adjusted debt | Last twelve months FFO divided by end of period adjusted debt | ||||
| Gross liquidity | Sum of cash and available revolver capacity | ||||
Net liquidity | Sum of cash, available revolver capacity, escrow accounts available for certain storm expenses, and equity sold forward but not yet settled minus commercial paper borrowing | ||||
17
Appendix E-2 explains abbreviations and acronyms used in the quarterly earnings materials.
| Appendix E-2: Abbreviations and acronyms | |||||||||||
A&G ADIT AFUDC – borrowed funds AMS ANO APSC ATM bbl Bcf/d bps CAGR CCCT CCGT CCN CCNO CCS CFO COD CWIP DCRF DOE DRM E-AR E-LA E-MS E-NO E-TX EEI EPS ESG ETR FERC FFO FRP GAAP GRIP GCRR Grand Gulf or GGNS | Administrative and general expenses Accumulated deferred income taxes Allowance for borrowed funds used during construction Advanced metering system Arkansas Nuclear One (nuclear) Arkansas Public Service Commission At the market equity issuance program Barrels Billion cubic feet per day Basis points Compound annual growth rate Combined cycle combustion turbine Combined cycle gas turbine Certificate for convenience and necessity Council of the City of New Orleans Carbon capture and sequestration Cash from operations Commercial operation date Combustion turbine Construction work in process Distribution cost recovery factor U.S. Department of Energy Distribution Recovery Mechanism (rider within E-LA’s FRP) Entergy Arkansas, LLC Entergy Louisiana, LLC Entergy Mississippi, LLC Entergy New Orleans, LLC Entergy Texas, Inc. Edison Electric Institute Earnings per share Environmental, social, and governance Entergy Corporation Federal Energy Regulatory Commission Funds from operations Formula rate plan U.S. generally accepted accounting principles Grid Resilience and Innovation Partnerships (DOE grant program) Generation Cost Recovery Rider Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by SERI | HLBV IPEC IRS LDC LNG LPSC LTM LURC MISO MMBtu Moody’s MPSC MTEP NBP NDT NGL NYSE O&M OCF OpCo OPEB Other O&M P&O PMR PPA PUCT RFP ROE RSP S&P SEC SERI TCJA TCRF TRAM TRM UPSA WACC WTI | Hypothetical liquidation at book value Indian Point Energy Center (nuclear) (sold 5/28/21) Internal Revenue Service Local distribution company Liquified natural gas Louisiana Public Service Commission Last twelve months Louisiana Utility Restoration Corporation Midcontinent Independent System Operator, Inc. Million British thermal units Moody’s Investor Service Mississippi Public Service Commission MISO Transmission Expansion Plan National Balancing Point Nuclear decommissioning trust Natural gas liquid New York Stock Exchange Operations and maintenance Net cash flow provided by operating activities Utility operating company Other post-employment benefits Other non-fuel operation and maintenance expense Parent & Other Performance Management Rider Power purchase agreement or purchased power agreement Public Utility Commission of Texas Request for proposals Return on equity Rate Stabilization Plan (E-LA Gas) Standard & Poor’s U.S. Securities and Exchange Commission System Energy Resources, Inc. Tax Cuts and Jobs Act of 2017 Transmission cost recovery factor Tax reform adjustment mechanism Transmission Recovery Mechanism (rider within E-LA’s FRP) Unit Power Sales Agreement Weighted-average cost of capital West Texas Intermediate | ||||||||
18
F: Other GAAP to non-GAAP reconciliations
Appendix F-1, Appendix F-2, and Appendix F-3 provide reconciliations of various non-GAAP financial measures disclosed in this news release to their most comparable GAAP measure.
Appendix F-1: Reconciliation of GAAP to non-GAAP financial measures – ROE | |||||||||||
| (LTM $ in millions except where noted) | Second quarter | ||||||||||
| 2024 | 2023 | ||||||||||
As-reported net income attributable to Entergy Corporation | (A) | 1,779 | 1,369 | ||||||||
| Adjustments | (B) | 333 | 49 | ||||||||
| Adjusted earnings (non-GAAP) | (C)=(A-B) | 1,446 | 1,320 | ||||||||
| Average common equity (average of beginning and ending balances) | (D) | 13,902 | 12,474 | ||||||||
| As-reported ROE | (A/D) | 12.8% | 11.0% | ||||||||
| Adjusted ROE (non-GAAP) | (C/D) | 10.4% | 10.6% | ||||||||
Calculations may differ due to rounding
| Appendix F-2: Reconciliation of GAAP to non-GAAP financial measures – FFO to adjusted debt | |||||||||||
($ in millions except where noted) | Second quarter | ||||||||||
| 2024 | 2023 | ||||||||||
Total debt | (A) | 28,846 | 27,362 | ||||||||
Securitization debt | (B) | 249 | 278 | ||||||||
50% junior subordinated debentures | (C) | 600 | - | ||||||||
Adjusted debt (non-GAAP) | (D)=(A-B-C) | 27,997 | 27,084 | ||||||||
Net cash flow provided by operating activities, LTM | (E) | 4,015 | 3,595 | ||||||||
AFUDC – borrowed funds, LTM | (F) | (42) | (37) | ||||||||
50% of the interest expense associated with junior subordinated debentures, LTM | (G) | (5) | - | ||||||||
Working capital items in net cash flow provided by operating activities, LTM: | |||||||||||
Receivables | (151) | 132 | |||||||||
Fuel inventory | 17 | (53) | |||||||||
Accounts payable | (17) | (413) | |||||||||
Taxes accrued | 52 | (20) | |||||||||
Interest accrued | 36 | 23 | |||||||||
Deferred fuel costs | 331 | 837 | |||||||||
Other working capital accounts | (182) | (169) | |||||||||
| Securitization regulatory charges, LTM | 30 | 40 | |||||||||
Total | (H) | 115 | 377 | ||||||||
FFO, LTM (non-GAAP) | (I)=(E+F-G-H) | 3,862 | 3,182 | ||||||||
FFO to adjusted debt (non-GAAP) | (I/D) | 13.8% | 11.7% | ||||||||
Calculations may differ due to rounding
19
Appendix F-3: Reconciliation of GAAP to non-GAAP financial measures – adjusted debt ratios; gross liquidity; and net liquidity | |||||||||||
| ($ in millions except where noted) | Second quarter | ||||||||||
| 2024 | 2023 | ||||||||||
| Total debt | (A) | 28,846 | 27,362 | ||||||||
| Securitization debt | (B) | 249 | 278 | ||||||||
| 50% junior subordinated debentures | (C) | 600 | - | ||||||||
Adjusted debt (non-GAAP) | (D)=(A-B-C) | 27,997 | 27,084 | ||||||||
| Cash and cash equivalents | (E) | 1,355 | 1,194 | ||||||||
| Adjusted net debt (non-GAAP) | (F)=(D-E) | 26,642 | 25,889 | ||||||||
| Commercial paper | (G) | 932 | 1,108 | ||||||||
| Total capitalization | (H) | 43,747 | 40,949 | ||||||||
| Securitization debt | (B) | 249 | 278 | ||||||||
| Adjusted capitalization (non-GAAP) | (I)=(H-B) | 43,498 | 40,671 | ||||||||
| Cash and cash equivalents | (E) | 1,355 | 1,194 | ||||||||
| Adjusted net capitalization (non-GAAP) | (J)=(I-E) | 42,143 | 39,477 | ||||||||
| Total debt to total capitalization | (A/H) | 66% | 67% | ||||||||
| Adjusted debt to adjusted capitalization (non-GAAP) | (D/I) | 64% | 67% | ||||||||
| Adjusted net debt to adjusted net capitalization (non-GAAP) | (F/J) | 63% | 66% | ||||||||
| Available revolver capacity | (K) | 4,345 | 4,216 | ||||||||
| Storm escrows | (L) | 333 | 411 | ||||||||
Equity sold forward, not yet settled (p) | (M) | 815 | 48 | ||||||||
| Gross liquidity (non-GAAP) | (N)=(E+K) | 5,700 | 5,410 | ||||||||
| Net liquidity (non-GAAP) | (N-G+L+M) | 5,915 | 4,761 | ||||||||
| Entergy Corporation notes: | |||||||||||
| Due September 2025 | 800 | 800 | |||||||||
| Due September 2026 | 750 | 750 | |||||||||
| Due June 2028 | 650 | 650 | |||||||||
| Due June 2030 | 600 | 600 | |||||||||
| Due June 2031 | 650 | 650 | |||||||||
| Due June 2050 | 600 | 600 | |||||||||
| Junior subordinated debentures due December 2054 | 1,200 | - | |||||||||
| Total Parent long-term debt | (O) | 5,250 | 4,050 | ||||||||
| Revolver draw | (P) | - | 150 | ||||||||
| Unamortized debt issuance costs and discounts | (Q) | (48) | (40) | ||||||||
| Total parent debt | (R)=(G+O+P+Q) | 6,134 | 5,268 | ||||||||
| Adjusted Parent debt (non-GAAP) | (S)=(R-C) | 5,534 | 5,268 | ||||||||
| Adjusted parent debt to total adjusted debt (non-GAAP) | (S/D) | 20% | 19% | ||||||||
Calculations may differ due to rounding
(p) Reflects adjustments, including for common dividends between issuance and settlement.
20
Financial Statements
| Entergy Corporation | ||||||||||||||||||||
| Consolidating Balance Sheet | ||||||||||||||||||||
| June 30, 2024 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Utility | Parent & Other | Consolidated | ||||||||||||||||||
| ASSETS | ||||||||||||||||||||
| CURRENT ASSETS | ||||||||||||||||||||
| Cash and cash equivalents: | ||||||||||||||||||||
| Cash | $ | 77,788 | $ | 5,062 | $ | 82,850 | ||||||||||||||
| Temporary cash investments | 1,138,324 | 133,990 | 1,272,314 | |||||||||||||||||
| Total cash and cash equivalents | 1,216,112 | 139,052 | 1,355,164 | |||||||||||||||||
| Accounts receivable: | ||||||||||||||||||||
| Customer | 777,791 | — | 777,791 | |||||||||||||||||
| Allowance for doubtful accounts | (16,642) | — | (16,642) | |||||||||||||||||
| Associated companies | 4,480 | (4,480) | — | |||||||||||||||||
| Other | 221,663 | 5,412 | 227,075 | |||||||||||||||||
| Accrued unbilled revenues | 592,785 | — | 592,785 | |||||||||||||||||
| Total accounts receivable | 1,580,077 | 932 | 1,581,009 | |||||||||||||||||
| Deferred fuel costs | 78,434 | — | 78,434 | |||||||||||||||||
| Fuel inventory - at average cost | 167,783 | 6,692 | 174,475 | |||||||||||||||||
| Materials and supplies - at average cost | 1,572,023 | 4,436 | 1,576,459 | |||||||||||||||||
| Deferred nuclear refueling outage costs | 134,500 | — | 134,500 | |||||||||||||||||
| Prepayments and other | 407,115 | (160,059) | 247,056 | |||||||||||||||||
| TOTAL | 5,156,044 | (8,947) | 5,147,097 | |||||||||||||||||
| OTHER PROPERTY AND INVESTMENTS | ||||||||||||||||||||
| Investment in affiliates | 4,393,852 | (4,393,852) | — | |||||||||||||||||
| Decommissioning trust funds | 5,265,003 | — | 5,265,003 | |||||||||||||||||
| Non-utility property - at cost (less accumulated depreciation) | 411,105 | 6,448 | 417,553 | |||||||||||||||||
| Storm reserve escrow account | 332,801 | — | 332,801 | |||||||||||||||||
| Other | 38,907 | 33,013 | 71,920 | |||||||||||||||||
| TOTAL | 10,441,668 | (4,354,391) | 6,087,277 | |||||||||||||||||
| PROPERTY, PLANT, AND EQUIPMENT | ||||||||||||||||||||
| Electric | 68,040,063 | 201,848 | 68,241,911 | |||||||||||||||||
| Natural gas | 732,677 | — | 732,677 | |||||||||||||||||
| Construction work in progress | 2,681,194 | 1,179 | 2,682,373 | |||||||||||||||||
| Nuclear fuel | 682,247 | — | 682,247 | |||||||||||||||||
| TOTAL PROPERTY, PLANT, AND EQUIPMENT | 72,136,181 | 203,027 | 72,339,208 | |||||||||||||||||
| Less - accumulated depreciation and amortization | 27,026,376 | 145,172 | 27,171,548 | |||||||||||||||||
| PROPERTY, PLANT, AND EQUIPMENT - NET | 45,109,805 | 57,855 | 45,167,660 | |||||||||||||||||
| DEFERRED DEBITS AND OTHER ASSETS | ||||||||||||||||||||
| Regulatory assets: | ||||||||||||||||||||
| Other regulatory assets | 5,408,682 | — | 5,408,682 | |||||||||||||||||
| Deferred fuel costs | 172,201 | — | 172,201 | |||||||||||||||||
| Goodwill | 374,099 | — | 374,099 | |||||||||||||||||
| Accumulated deferred income taxes | 13,879 | 2,631 | 16,510 | |||||||||||||||||
| Other | 269,590 | 123,181 | 392,771 | |||||||||||||||||
| TOTAL | 6,238,451 | 125,812 | 6,364,263 | |||||||||||||||||
| TOTAL ASSETS | $ | 66,945,968 | $ | (4,179,671) | $ | 62,766,297 | ||||||||||||||
| *Totals may not foot due to rounding. | ||||||||||||||||||||
21
| Entergy Corporation | ||||||||||||||||||||
| Consolidating Balance Sheet | ||||||||||||||||||||
| June 30, 2024 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Utility | Parent & Other | Consolidated | ||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
| CURRENT LIABILITIES | ||||||||||||||||||||
| Currently maturing long-term debt | $ | 1,378,072 | $ | 139,000 | $ | 1,517,072 | ||||||||||||||
| Notes payable and commercial paper: | ||||||||||||||||||||
| Associated companies | 26,428 | (26,428) | — | |||||||||||||||||
| Other | — | 932,351 | 932,351 | |||||||||||||||||
| Accounts payable: | ||||||||||||||||||||
| Associated companies | 38,031 | (38,031) | — | |||||||||||||||||
| Other | 1,309,001 | 5,660 | 1,314,661 | |||||||||||||||||
| Customer deposits | 462,222 | — | 462,222 | |||||||||||||||||
| Taxes accrued | 369,798 | 80,961 | 450,759 | |||||||||||||||||
| Interest accrued | 215,900 | 21,857 | 237,757 | |||||||||||||||||
| Deferred fuel costs | 262,348 | — | 262,348 | |||||||||||||||||
| Pension and other postretirement liabilities | 42,643 | 13,878 | 56,521 | |||||||||||||||||
| Other | 245,928 | 7,561 | 253,489 | |||||||||||||||||
| TOTAL | 4,350,371 | 1,136,809 | 5,487,180 | |||||||||||||||||
| NON-CURRENT LIABILITIES | ||||||||||||||||||||
| Accumulated deferred income taxes and taxes accrued | 6,055,267 | (1,733,496) | 4,321,771 | |||||||||||||||||
| Accumulated deferred investment tax credits | 199,745 | — | 199,745 | |||||||||||||||||
| Regulatory liability for income taxes - net | 1,042,248 | — | 1,042,248 | |||||||||||||||||
| Other regulatory liabilities | 3,488,314 | — | 3,488,314 | |||||||||||||||||
| Decommissioning and asset retirement cost liabilities | 4,680,510 | 3,392 | 4,683,902 | |||||||||||||||||
| Accumulated provisions | 466,934 | 266 | 467,200 | |||||||||||||||||
| Pension and other postretirement liabilities | 463,997 | 55,864 | 519,861 | |||||||||||||||||
| Long-term debt | 21,099,034 | 5,202,058 | 26,301,092 | |||||||||||||||||
| Other | 1,758,881 | (404,962) | 1,353,919 | |||||||||||||||||
| TOTAL | 39,254,930 | 3,123,122 | 42,378,052 | |||||||||||||||||
| Subsidiaries' preferred stock without sinking fund | 195,161 | 24,249 | 219,410 | |||||||||||||||||
| EQUITY | ||||||||||||||||||||
| Preferred stock, no par value, authorized 1,000,000 shares; | ||||||||||||||||||||
| issued shares in 2024 - none | — | — | — | |||||||||||||||||
| Common stock, $.01 par value, authorized 499,000,000 shares; | ||||||||||||||||||||
| issued 280,975,348 shares in 2024 | 2,438,748 | (2,435,938) | 2,810 | |||||||||||||||||
| Paid-in capital | 5,204,843 | 2,581,078 | 7,785,921 | |||||||||||||||||
| Retained earnings | 15,444,185 | (3,861,853) | 11,582,332 | |||||||||||||||||
| Accumulated other comprehensive income | 60,054 | 20,307 | 80,361 | |||||||||||||||||
| Less - treasury stock, at cost (67,166,752 shares in 2024) | 120,000 | 4,763,695 | 4,883,695 | |||||||||||||||||
| TOTAL SHAREHOLDERS' EQUITY | 23,027,830 | (8,460,101) | 14,567,729 | |||||||||||||||||
| Subsidiaries' preferred stock without sinking fund | ||||||||||||||||||||
| and noncontrolling interests | 117,676 | (3,750) | 113,926 | |||||||||||||||||
| TOTAL | 23,145,506 | (8,463,851) | 14,681,655 | |||||||||||||||||
| TOTAL LIABILITIES AND EQUITY | $ | 66,945,968 | $ | (4,179,671) | $ | 62,766,297 | ||||||||||||||
| *Totals may not foot due to rounding. | ||||||||||||||||||||
22
| Entergy Corporation | ||||||||||||||||||||
| Consolidating Balance Sheet | ||||||||||||||||||||
| December 31, 2023 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Utility | Parent & Other | Consolidated | ||||||||||||||||||
| ASSETS | ||||||||||||||||||||
| CURRENT ASSETS | ||||||||||||||||||||
| Cash and cash equivalents: | ||||||||||||||||||||
| Cash | $ | 63,000 | $ | 8,609 | $ | 71,609 | ||||||||||||||
| Temporary cash investments | 37,434 | 23,505 | 60,939 | |||||||||||||||||
| Total cash and cash equivalents | 100,434 | 32,114 | 132,548 | |||||||||||||||||
| Accounts receivable: | ||||||||||||||||||||
| Customer | 699,411 | — | 699,411 | |||||||||||||||||
| Allowance for doubtful accounts | (25,905) | — | (25,905) | |||||||||||||||||
| Associated companies | (21,282) | 21,282 | — | |||||||||||||||||
| Other | 215,265 | 10,069 | 225,334 | |||||||||||||||||
| Accrued unbilled revenues | 494,615 | — | 494,615 | |||||||||||||||||
| Total accounts receivable | 1,362,104 | 31,351 | 1,393,455 | |||||||||||||||||
| Deferred fuel costs | 169,967 | — | 169,967 | |||||||||||||||||
| Fuel inventory - at average cost | 185,653 | 7,146 | 192,799 | |||||||||||||||||
| Materials and supplies - at average cost | 1,414,613 | 4,356 | 1,418,969 | |||||||||||||||||
| Deferred nuclear refueling outage costs | 140,115 | — | 140,115 | |||||||||||||||||
| Prepayments and other | 210,563 | 2,453 | 213,016 | |||||||||||||||||
| TOTAL | 3,583,449 | 77,420 | 3,660,869 | |||||||||||||||||
| OTHER PROPERTY AND INVESTMENTS | ||||||||||||||||||||
| Investment in affiliates | 4,509,294 | (4,509,294) | — | |||||||||||||||||
| Decommissioning trust funds | 4,863,710 | — | 4,863,710 | |||||||||||||||||
| Non-utility property - at cost (less accumulated depreciation) | 410,845 | 7,701 | 418,546 | |||||||||||||||||
| Storm reserve escrow account | 323,206 | — | 323,206 | |||||||||||||||||
| Other | 38,513 | 30,981 | 69,494 | |||||||||||||||||
| TOTAL | 10,145,568 | (4,470,612) | 5,674,956 | |||||||||||||||||
| PROPERTY, PLANT, AND EQUIPMENT | ||||||||||||||||||||
| Electric | 66,638,517 | 211,957 | 66,850,474 | |||||||||||||||||
| Natural gas | 717,503 | — | 717,503 | |||||||||||||||||
| Construction work in progress | 2,108,760 | 943 | 2,109,703 | |||||||||||||||||
| Nuclear fuel | 707,852 | — | 707,852 | |||||||||||||||||
| TOTAL PROPERTY, PLANT, AND EQUIPMENT | 70,172,632 | 212,900 | 70,385,532 | |||||||||||||||||
| Less - accumulated depreciation and amortization | 26,395,786 | 155,417 | 26,551,203 | |||||||||||||||||
| PROPERTY, PLANT, AND EQUIPMENT - NET | 43,776,846 | 57,483 | 43,834,329 | |||||||||||||||||
| DEFERRED DEBITS AND OTHER ASSETS | ||||||||||||||||||||
| Regulatory assets: | ||||||||||||||||||||
| Other regulatory assets | 5,669,404 | — | 5,669,404 | |||||||||||||||||
| Deferred fuel costs | 172,201 | — | 172,201 | |||||||||||||||||
| Goodwill | 374,099 | — | 374,099 | |||||||||||||||||
| Accumulated deferred income taxes | 14,010 | 2,357 | 16,367 | |||||||||||||||||
| Other | 151,461 | 149,710 | 301,171 | |||||||||||||||||
| TOTAL | 6,381,175 | 152,067 | 6,533,242 | |||||||||||||||||
| TOTAL ASSETS | $ | 63,887,038 | $ | (4,183,642) | $ | 59,703,396 | ||||||||||||||
| *Totals may not foot due to rounding. | ||||||||||||||||||||
23
| Entergy Corporation | ||||||||||||||||||||
| Consolidating Balance Sheet | ||||||||||||||||||||
| December 31, 2023 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Utility | Parent & Other | Consolidated | ||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
| CURRENT LIABILITIES | ||||||||||||||||||||
| Currently maturing long-term debt | $ | 1,960,057 | $ | 139,000 | $ | 2,099,057 | ||||||||||||||
| Notes payable and commercial paper: | ||||||||||||||||||||
| Other | — | 1,138,171 | 1,138,171 | |||||||||||||||||
| Accounts payable: | ||||||||||||||||||||
| Associated companies | 66,835 | (66,835) | — | |||||||||||||||||
| Other | 1,558,713 | 8,032 | 1,566,745 | |||||||||||||||||
| Customer deposits | 446,146 | — | 446,146 | |||||||||||||||||
| Taxes accrued | 431,146 | 3,067 | 434,213 | |||||||||||||||||
| Interest accrued | 201,336 | 12,861 | 214,197 | |||||||||||||||||
| Deferred fuel costs | 218,927 | — | 218,927 | |||||||||||||||||
| Pension and other postretirement liabilities | 45,144 | 14,364 | 59,508 | |||||||||||||||||
| Other | 213,809 | 5,719 | 219,528 | |||||||||||||||||
| TOTAL | 5,142,113 | 1,254,379 | 6,396,492 | |||||||||||||||||
| NON-CURRENT LIABILITIES | ||||||||||||||||||||
| Accumulated deferred income taxes and taxes accrued | 5,843,746 | (1,597,764) | 4,245,982 | |||||||||||||||||
| Accumulated deferred investment tax credits | 205,973 | — | 205,973 | |||||||||||||||||
| Regulatory liability for income taxes - net | 1,033,242 | — | 1,033,242 | |||||||||||||||||
| Other regulatory liabilities | 3,116,926 | — | 3,116,926 | |||||||||||||||||
| Decommissioning and asset retirement cost liabilities | 4,505,119 | 663 | 4,505,782 | |||||||||||||||||
| Accumulated provisions | 462,296 | 274 | 462,570 | |||||||||||||||||
| Pension and other postretirement liabilities | 546,897 | 101,516 | 648,413 | |||||||||||||||||
| Long-term debt | 18,995,944 | 4,012,895 | 23,008,839 | |||||||||||||||||
| Other | 1,528,284 | (411,623) | 1,116,661 | |||||||||||||||||
| TOTAL | 36,238,427 | 2,105,961 | 38,344,388 | |||||||||||||||||
| Subsidiaries' preferred stock without sinking fund | 195,161 | 24,249 | 219,410 | |||||||||||||||||
| EQUITY | ||||||||||||||||||||
| Preferred stock, no par value, authorized 1,000,000 shares; | ||||||||||||||||||||
| issued shares in 2023 - none | — | — | — | |||||||||||||||||
| Common stock, $.01 par value, authorized 499,000,000 shares; | ||||||||||||||||||||
| issued 280,975,348 shares in 2023 | 2,458,748 | (2,455,938) | 2,810 | |||||||||||||||||
| Paid-in capital | 5,198,873 | 2,596,538 | 7,795,411 | |||||||||||||||||
| Retained earnings | 14,585,015 | (2,644,631) | 11,940,384 | |||||||||||||||||
| Accumulated other comprehensive loss | 64,492 | (226,952) | (162,460) | |||||||||||||||||
| Less - treasury stock, at cost (68,162,778 shares in 2023) | 120,000 | 4,833,498 | 4,953,498 | |||||||||||||||||
| TOTAL SHAREHOLDERS' EQUITY | 22,187,128 | (7,564,481) | 14,622,647 | |||||||||||||||||
| Subsidiaries' preferred stock without sinking fund | ||||||||||||||||||||
| and noncontrolling interests | 124,209 | (3,750) | 120,459 | |||||||||||||||||
| TOTAL | 22,311,337 | (7,568,231) | 14,743,106 | |||||||||||||||||
| TOTAL LIABILITIES AND EQUITY | $ | 63,887,038 | $ | (4,183,642) | $ | 59,703,396 | ||||||||||||||
| *Totals may not foot due to rounding. | ||||||||||||||||||||
24
| Entergy Corporation | ||||||||||||||||||||
| Consolidating Income Statement | ||||||||||||||||||||
| Three Months Ended June 30, 2024 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Utility | Parent & Other | Consolidated | ||||||||||||||||||
| OPERATING REVENUES | ||||||||||||||||||||
| Electric | $ | 2,906,047 | $ | — | $ | 2,906,047 | ||||||||||||||
| Natural gas | 35,357 | — | 35,357 | |||||||||||||||||
| Other | — | 12,216 | 12,216 | |||||||||||||||||
| Total | 2,941,404 | 12,216 | 2,953,620 | |||||||||||||||||
| OPERATING EXPENSES | ||||||||||||||||||||
| Operating and Maintenance: | ||||||||||||||||||||
| Fuel, fuel related expenses, and gas purchased for resale | 514,223 | 8,327 | 522,550 | |||||||||||||||||
| Purchased power | 193,010 | 7,695 | 200,705 | |||||||||||||||||
| Nuclear refueling outage expenses | 38,277 | — | 38,277 | |||||||||||||||||
| Other operation and maintenance | 685,990 | 15,785 | 701,775 | |||||||||||||||||
| Decommissioning | 54,180 | 13 | 54,193 | |||||||||||||||||
| Taxes other than income taxes | 186,713 | 807 | 187,520 | |||||||||||||||||
| Depreciation and amortization | 503,782 | 1,581 | 505,363 | |||||||||||||||||
| Other regulatory charges (credits) - net | 125,607 | — | 125,607 | |||||||||||||||||
| Total | 2,301,782 | 34,208 | 2,335,990 | |||||||||||||||||
| OPERATING INCOME | 639,622 | (21,992) | 617,630 | |||||||||||||||||
| OTHER INCOME (DEDUCTIONS) | ||||||||||||||||||||
| Allowance for equity funds used during construction | 29,275 | — | 29,275 | |||||||||||||||||
| Interest and investment income | 141,249 | (70,662) | 70,587 | |||||||||||||||||
| Miscellaneous - net | (28,299) | (314,250) | (342,549) | |||||||||||||||||
| Total | 142,225 | (384,912) | (242,687) | |||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||
| Interest expense | 237,197 | 64,066 | 301,263 | |||||||||||||||||
| Allowance for borrowed funds used during construction | (11,686) | — | (11,686) | |||||||||||||||||
| Total | 225,511 | 64,066 | 289,577 | |||||||||||||||||
| INCOME BEFORE INCOME TAXES | 556,336 | (470,970) | 85,366 | |||||||||||||||||
| Income taxes | 113,017 | (79,383) | 33,634 | |||||||||||||||||
| CONSOLIDATED NET INCOME | 443,319 | (391,587) | 51,732 | |||||||||||||||||
| Preferred dividend requirements of subsidiaries and noncontrolling interests | 2,311 | 499 | 2,810 | |||||||||||||||||
| NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION | $ | 441,008 | $ | (392,086) | $ | 48,922 | ||||||||||||||
| EARNINGS PER AVERAGE COMMON SHARE: | ||||||||||||||||||||
| BASIC | $2.06 | ($1.84) | $0.23 | |||||||||||||||||
| DILUTED | $2.06 | ($1.83) | $0.23 | |||||||||||||||||
| AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||||||||||||||
| BASIC | 213,617,110 | |||||||||||||||||||
| DILUTED | 214,376,721 | |||||||||||||||||||
| *Totals may not foot due to rounding. | ||||||||||||||||||||
25
| Entergy Corporation | ||||||||||||||||||||
| Consolidating Income Statement | ||||||||||||||||||||
| Three Months Ended June 30, 2023 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Utility | Parent & Other | Consolidated | ||||||||||||||||||
| OPERATING REVENUES | ||||||||||||||||||||
| Electric | $ | 2,785,244 | $ | — | $ | 2,785,244 | ||||||||||||||
| Natural gas | 33,503 | — | 33,503 | |||||||||||||||||
| Other | — | 27,279 | 27,279 | |||||||||||||||||
| Total | 2,818,747 | 27,279 | 2,846,026 | |||||||||||||||||
| OPERATING EXPENSES | ||||||||||||||||||||
| Operating and Maintenance: | ||||||||||||||||||||
| Fuel, fuel related expenses, and gas purchased for resale | 574,500 | 9,217 | 583,717 | |||||||||||||||||
| Purchased power | 191,209 | 15,327 | 206,536 | |||||||||||||||||
| Nuclear refueling outage expenses | 34,785 | — | 34,785 | |||||||||||||||||
| Other operation and maintenance | 644,148 | 15,746 | 659,894 | |||||||||||||||||
| Decommissioning | 51,140 | 12 | 51,152 | |||||||||||||||||
| Taxes other than income taxes | 182,788 | 790 | 183,578 | |||||||||||||||||
| Depreciation and amortization | 467,381 | 1,557 | 468,938 | |||||||||||||||||
| Other regulatory charges (credits) - net | (98,501) | — | (98,501) | |||||||||||||||||
| Total | 2,047,450 | 42,649 | 2,090,099 | |||||||||||||||||
| OPERATING INCOME | 771,297 | (15,370) | 755,927 | |||||||||||||||||
| OTHER INCOME (DEDUCTIONS) | ||||||||||||||||||||
| Allowance for equity funds used during construction | 24,867 | — | 24,867 | |||||||||||||||||
| Interest and investment income | 123,743 | (78,315) | 45,428 | |||||||||||||||||
| Miscellaneous - net | (56,386) | 7,842 | (48,544) | |||||||||||||||||
| Total | 92,224 | (70,473) | 21,751 | |||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||
| Interest expense | 215,015 | 46,334 | 261,349 | |||||||||||||||||
| Allowance for borrowed funds used during construction | (10,481) | — | (10,481) | |||||||||||||||||
| Total | 204,534 | 46,334 | 250,868 | |||||||||||||||||
| INCOME BEFORE INCOME TAXES | 658,987 | (132,177) | 526,810 | |||||||||||||||||
| Income taxes | 144,489 | (9,693) | 134,796 | |||||||||||||||||
| CONSOLIDATED NET INCOME | 514,498 | (122,484) | 392,014 | |||||||||||||||||
| Preferred dividend requirements of subsidiaries and noncontrolling interests | 271 | 499 | 770 | |||||||||||||||||
| NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION | $ | 514,227 | $ | (122,983) | $ | 391,244 | ||||||||||||||
| EARNINGS PER AVERAGE COMMON SHARE: | ||||||||||||||||||||
| BASIC | $2.43 | ($0.58) | $1.85 | |||||||||||||||||
| DILUTED | $2.42 | ($0.58) | $1.84 | |||||||||||||||||
| AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||||||||||||||
| BASIC | 211,449,211 | |||||||||||||||||||
| DILUTED | 212,201,529 | |||||||||||||||||||
| *Totals may not foot due to rounding. | ||||||||||||||||||||
26
| Entergy Corporation | ||||||||||||||||||||
| Consolidating Income Statement | ||||||||||||||||||||
| Six Months Ended June 30, 2024 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Utility | Parent & Other | Consolidated | ||||||||||||||||||
| OPERATING REVENUES | ||||||||||||||||||||
| Electric | $ | 5,612,553 | $ | — | $ | 5,612,553 | ||||||||||||||
| Natural gas | 101,024 | — | 101,024 | |||||||||||||||||
| Other | — | 34,671 | 34,671 | |||||||||||||||||
| Total | 5,713,577 | 34,671 | 5,748,248 | |||||||||||||||||
| OPERATING EXPENSES | ||||||||||||||||||||
| Operating and Maintenance: | ||||||||||||||||||||
| Fuel, fuel related expenses, and gas purchased for resale | 1,118,627 | 20,539 | 1,139,166 | |||||||||||||||||
| Purchased power | 412,204 | 16,643 | 428,847 | |||||||||||||||||
| Nuclear refueling outage expenses | 76,540 | — | 76,540 | |||||||||||||||||
| Other operation and maintenance | 1,366,705 | 22,101 | 1,388,806 | |||||||||||||||||
| Asset write-offs, impairments and related charges | 131,775 | — | 131,775 | |||||||||||||||||
| Decommissioning | 107,549 | 25 | 107,574 | |||||||||||||||||
| Taxes other than income taxes | 378,495 | 1,454 | 379,949 | |||||||||||||||||
| Depreciation and amortization | 1,001,903 | 3,121 | 1,005,024 | |||||||||||||||||
| Other regulatory charges (credits) - net | 234,954 | — | 234,954 | |||||||||||||||||
| Total | 4,828,752 | 63,883 | 4,892,635 | |||||||||||||||||
| OPERATING INCOME | 884,825 | (29,212) | 855,613 | |||||||||||||||||
| OTHER INCOME (DEDUCTIONS) | ||||||||||||||||||||
| Allowance for equity funds used during construction | 56,070 | — | 56,070 | |||||||||||||||||
| Interest and investment income | 366,499 | (145,216) | 221,283 | |||||||||||||||||
| Miscellaneous - net | (82,871) | (310,423) | (393,294) | |||||||||||||||||
| Total | 339,698 | (455,639) | (115,941) | |||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||
| Interest expense | 459,888 | 119,118 | 579,006 | |||||||||||||||||
| Allowance for borrowed funds used during construction | (22,229) | — | (22,229) | |||||||||||||||||
| Total | 437,659 | 119,118 | 556,777 | |||||||||||||||||
| INCOME BEFORE INCOME TAXES | 786,864 | (603,969) | 182,895 | |||||||||||||||||
| Income taxes | 147,565 | (92,938) | 54,627 | |||||||||||||||||
| CONSOLIDATED NET INCOME | 639,299 | (511,031) | 128,268 | |||||||||||||||||
| Preferred dividend requirements of subsidiaries and noncontrolling interests | 3,067 | 998 | 4,065 | |||||||||||||||||
| NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION | $ | 636,232 | $ | (512,029) | $ | 124,203 | ||||||||||||||
| EARNINGS PER AVERAGE COMMON SHARE: | ||||||||||||||||||||
| BASIC | $2.98 | ($2.40) | $0.58 | |||||||||||||||||
| DILUTED | $2.97 | ($2.39) | $0.58 | |||||||||||||||||
| AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||||||||||||||
| BASIC | 213,380,414 | |||||||||||||||||||
| DILUTED | 214,155,768 | |||||||||||||||||||
| *Totals may not foot due to rounding. | ||||||||||||||||||||
27
| Entergy Corporation | ||||||||||||||||||||
| Consolidating Income Statement | ||||||||||||||||||||
| Six Months Ended June 30, 2023 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Utility | Parent & Other | Consolidated | ||||||||||||||||||
| OPERATING REVENUES | ||||||||||||||||||||
| Electric | $ | 5,668,654 | $ | — | $ | 5,668,654 | ||||||||||||||
| Natural gas | 98,084 | — | 98,084 | |||||||||||||||||
| Other | — | 60,347 | 60,347 | |||||||||||||||||
| Total | 5,766,738 | 60,347 | 5,827,085 | |||||||||||||||||
| OPERATING EXPENSES | ||||||||||||||||||||
| Operating and Maintenance: | ||||||||||||||||||||
| Fuel, fuel related expenses, and gas purchased for resale | 1,462,949 | 19,151 | 1,482,100 | |||||||||||||||||
| Purchased power | 410,176 | 34,647 | 444,823 | |||||||||||||||||
| Nuclear refueling outage expenses | 72,018 | — | 72,018 | |||||||||||||||||
| Other operation and maintenance | 1,263,942 | 27,479 | 1,291,421 | |||||||||||||||||
| Decommissioning | 101,621 | 23 | 101,644 | |||||||||||||||||
| Taxes other than income taxes | 367,200 | 1,815 | 369,015 | |||||||||||||||||
| Depreciation and amortization | 919,756 | 3,099 | 922,855 | |||||||||||||||||
| Other regulatory charges (credits) - net | (74,827) | — | (74,827) | |||||||||||||||||
| Total | 4,522,835 | 86,214 | 4,609,049 | |||||||||||||||||
| OPERATING INCOME | 1,243,903 | (25,867) | 1,218,036 | |||||||||||||||||
| OTHER INCOME (DEDUCTIONS) | ||||||||||||||||||||
| Allowance for equity funds used during construction | 48,013 | — | 48,013 | |||||||||||||||||
| Interest and investment income | 223,510 | (129,823) | 93,687 | |||||||||||||||||
| Miscellaneous - net | (117,630) | 14,633 | (102,997) | |||||||||||||||||
| Total | 153,893 | (115,190) | 38,703 | |||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||
| Interest expense | 426,841 | 89,837 | 516,678 | |||||||||||||||||
| Allowance for borrowed funds used during construction | (20,072) | — | (20,072) | |||||||||||||||||
| Total | 406,769 | 89,837 | 496,606 | |||||||||||||||||
| INCOME BEFORE INCOME TAXES | 991,027 | (230,894) | 760,133 | |||||||||||||||||
| Income taxes | 78,363 | (22,542) | 55,821 | |||||||||||||||||
| CONSOLIDATED NET INCOME | 912,664 | (208,352) | 704,312 | |||||||||||||||||
| Preferred dividend requirements of subsidiaries and noncontrolling interests | 1,135 | 998 | 2,133 | |||||||||||||||||
| NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION | $ | 911,529 | $ | (209,350) | $ | 702,179 | ||||||||||||||
| EARNINGS PER AVERAGE COMMON SHARE: | ||||||||||||||||||||
| BASIC | $4.31 | ($0.99) | $3.32 | |||||||||||||||||
| DILUTED | $4.30 | ($0.99) | $3.31 | |||||||||||||||||
| AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||||||||||||||
| BASIC | 211,400,230 | |||||||||||||||||||
| DILUTED | 212,173,254 | |||||||||||||||||||
| *Totals may not foot due to rounding. | ||||||||||||||||||||
28
| Entergy Corporation | ||||||||||||||||||||
| Consolidating Income Statement | ||||||||||||||||||||
| Twelve Months Ended June 30, 2024 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Utility | Parent & Other | Consolidated | ||||||||||||||||||
| OPERATING REVENUES | ||||||||||||||||||||
| Electric | $ | 11,786,355 | $ | — | $ | 11,786,355 | ||||||||||||||
| Natural gas | 183,429 | — | 183,429 | |||||||||||||||||
| Other | — | 98,791 | 98,791 | |||||||||||||||||
| Total | 11,969,784 | 98,791 | 12,068,575 | |||||||||||||||||
| OPERATING EXPENSES | ||||||||||||||||||||
| Operating and Maintenance: | ||||||||||||||||||||
| Fuel, fuel related expenses, and gas purchased for resale | 2,411,471 | 47,175 | 2,458,646 | |||||||||||||||||
| Purchased power | 906,212 | 45,848 | 952,060 | |||||||||||||||||
| Nuclear refueling outage expenses | 154,668 | — | 154,668 | |||||||||||||||||
| Other operation and maintenance | 2,940,820 | 54,779 | 2,995,599 | |||||||||||||||||
| Asset write-offs, impairments, and related charges (credits) | 211,737 | (37,283) | 174,454 | |||||||||||||||||
| Decommissioning | 212,554 | 49 | 212,603 | |||||||||||||||||
| Taxes other than income taxes | 763,806 | 2,702 | 766,508 | |||||||||||||||||
| Depreciation and amortization | 1,920,775 | 6,397 | 1,927,172 | |||||||||||||||||
| Other regulatory charges (credits) - net | 171,313 | — | 171,313 | |||||||||||||||||
| Total | 9,693,356 | 119,667 | 9,813,023 | |||||||||||||||||
| OPERATING INCOME | 2,276,428 | (20,876) | 2,255,552 | |||||||||||||||||
| OTHER INCOME (DEDUCTIONS) | ||||||||||||||||||||
| Allowance for equity funds used during construction | 106,549 | — | 106,549 | |||||||||||||||||
| Interest and investment income | 586,741 | (296,419) | 290,322 | |||||||||||||||||
| Miscellaneous - net | (190,291) | (301,018) | (491,309) | |||||||||||||||||
| Total | 502,999 | (597,437) | (94,438) | |||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||
| Interest expense | 889,448 | 219,044 | 1,108,492 | |||||||||||||||||
| Allowance for borrowed funds used during construction | (41,915) | — | (41,915) | |||||||||||||||||
| Total | 847,533 | 219,044 | 1,066,577 | |||||||||||||||||
| INCOME BEFORE INCOME TAXES | 1,931,894 | (837,357) | 1,094,537 | |||||||||||||||||
| Income taxes | (305,645) | (386,084) | (691,729) | |||||||||||||||||
| CONSOLIDATED NET INCOME | 2,237,539 | (451,273) | 1,786,266 | |||||||||||||||||
| Preferred dividend requirements of subsidiaries and noncontrolling interests | 5,709 | 1,996 | 7,705 | |||||||||||||||||
| NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION | $ | 2,231,830 | $ | (453,269) | $ | 1,778,561 | ||||||||||||||
| EARNINGS PER AVERAGE COMMON SHARE: | ||||||||||||||||||||
| BASIC | $10.50 | ($2.13) | $8.37 | |||||||||||||||||
| DILUTED | $10.46 | ($2.12) | $8.34 | |||||||||||||||||
| AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||||||||||||||
| BASIC | 212,554,149 | |||||||||||||||||||
| DILUTED | 213,373,159 | |||||||||||||||||||
| *Totals may not foot due to rounding. | ||||||||||||||||||||
29
| Entergy Corporation | ||||||||||||||||||||
| Consolidating Income Statement | ||||||||||||||||||||
| Twelve Months Ended June 30, 2023 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Utility | Parent & Other | Consolidated | ||||||||||||||||||
| OPERATING REVENUES | ||||||||||||||||||||
| Electric | $ | 12,941,481 | $ | (13) | $ | 12,941,468 | ||||||||||||||
| Natural gas | 211,635 | — | 211,635 | |||||||||||||||||
| Other | — | 165,097 | 165,097 | |||||||||||||||||
| Total | 13,153,116 | 165,084 | 13,318,200 | |||||||||||||||||
| OPERATING EXPENSES | ||||||||||||||||||||
| Operating and Maintenance: | ||||||||||||||||||||
| Fuel, fuel related expenses, and gas purchased for resale | 3,829,341 | 66,726 | 3,896,067 | |||||||||||||||||
| Purchased power | 1,087,390 | 78,726 | 1,166,116 | |||||||||||||||||
| Nuclear refueling outage expenses | 148,132 | — | 148,132 | |||||||||||||||||
| Other operation and maintenance | 2,809,439 | 63,911 | 2,873,350 | |||||||||||||||||
| Asset write-offs, impairments, and related charges (credits) | — | (143) | (143) | |||||||||||||||||
| Decommissioning | 200,768 | 46 | 200,814 | |||||||||||||||||
| Taxes other than income taxes | 744,280 | 5,882 | 750,162 | |||||||||||||||||
| Depreciation and amortization | 1,793,784 | 6,363 | 1,800,147 | |||||||||||||||||
| Other regulatory charges (credits) - net | (138,062) | — | (138,062) | |||||||||||||||||
| Total | 10,475,072 | 221,511 | 10,696,583 | |||||||||||||||||
| OPERATING INCOME | 2,678,044 | (56,427) | 2,621,617 | |||||||||||||||||
| OTHER INCOME (DEDUCTIONS) | ||||||||||||||||||||
| Allowance for equity funds used during construction | 91,405 | — | 91,405 | |||||||||||||||||
| Interest and investment loss | 372,659 | (233,585) | 139,074 | |||||||||||||||||
| Miscellaneous - net | (203,675) | (20,132) | (223,807) | |||||||||||||||||
| Total | 260,389 | (253,717) | 6,672 | |||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||
| Interest expense | 823,494 | 174,009 | 997,503 | |||||||||||||||||
| Allowance for borrowed funds used during construction | (37,048) | — | (37,048) | |||||||||||||||||
| Total | 786,446 | 174,009 | 960,455 | |||||||||||||||||
| INCOME BEFORE INCOME TAXES | 2,151,987 | (484,153) | 1,667,834 | |||||||||||||||||
| Income taxes | 340,445 | (30,457) | 309,988 | |||||||||||||||||
| CONSOLIDATED NET INCOME | 1,811,542 | (453,696) | 1,357,846 | |||||||||||||||||
| Preferred dividend requirements of subsidiaries and noncontrolling interests | (13,392) | 1,996 | (11,396) | |||||||||||||||||
| NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION | $ | 1,824,934 | $ | (455,692) | $ | 1,369,242 | ||||||||||||||
| EARNINGS PER AVERAGE COMMON SHARE: | ||||||||||||||||||||
| BASIC | $8.68 | ($2.17) | $6.51 | |||||||||||||||||
| DILUTED | $8.64 | ($2.16) | $6.48 | |||||||||||||||||
| AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||||||||||||||||
| BASIC | 210,206,563 | |||||||||||||||||||
| DILUTED | 211,182,463 | |||||||||||||||||||
| *Totals may not foot due to rounding. | ||||||||||||||||||||
30
| Entergy Corporation | ||||||||||||||||||||
| Consolidated Cash Flow Statement | ||||||||||||||||||||
| Three Months Ended June 30, 2024 vs. 2023 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| 2024 | 2023 | Variance | ||||||||||||||||||
| OPERATING ACTIVITIES | ||||||||||||||||||||
| Consolidated net income | $ | 51,732 | $ | 392,014 | $ | (340,282) | ||||||||||||||
| Adjustments to reconcile consolidated net income to net cash | ||||||||||||||||||||
| flow provided by operating activities: | ||||||||||||||||||||
| Depreciation, amortization, and decommissioning, including nuclear fuel amortization | 606,080 | 563,619 | 42,461 | |||||||||||||||||
| Deferred income taxes, investment tax credits, and non-current taxes accrued | 36,654 | 141,746 | (105,092) | |||||||||||||||||
| Pension settlement charge | 316,738 | — | 316,738 | |||||||||||||||||
| Changes in working capital: | ||||||||||||||||||||
| Receivables | (295,475) | (207,274) | (88,201) | |||||||||||||||||
| Fuel inventory | 12,937 | (14,009) | 26,946 | |||||||||||||||||
| Accounts payable | 137,864 | 72,143 | 65,721 | |||||||||||||||||
| Taxes accrued | 80,631 | 41,637 | 38,994 | |||||||||||||||||
| Interest accrued | (6,055) | (23,820) | 17,765 | |||||||||||||||||
| Deferred fuel costs | 42,268 | 121,012 | (78,744) | |||||||||||||||||
| Other working capital accounts | (46,962) | (80,767) | 33,805 | |||||||||||||||||
| Changes in provisions for estimated losses | (4,653) | (16,589) | 11,936 | |||||||||||||||||
| Changes in regulatory assets | 23,624 | (151,506) | 175,130 | |||||||||||||||||
| Changes in other regulatory liabilities | 174,807 | 171,373 | 3,434 | |||||||||||||||||
| Changes in pension and other postretirement funded status | (55,196) | (64,291) | 9,095 | |||||||||||||||||
| Other | (49,630) | (78,859) | 29,229 | |||||||||||||||||
| Net cash flow provided by operating activities | 1,025,364 | 866,429 | 158,935 | |||||||||||||||||
| INVESTING ACTIVITIES | ||||||||||||||||||||
| Construction/capital expenditures | (1,163,127) | (1,135,808) | (27,319) | |||||||||||||||||
| Allowance for equity funds used during construction | 29,275 | 24,867 | 4,408 | |||||||||||||||||
| Nuclear fuel purchases | (28,168) | (43,889) | 15,721 | |||||||||||||||||
| Payment for purchase of assets | — | (30,433) | 30,433 | |||||||||||||||||
| Proceeds from sale of assets | — | 11,000 | (11,000) | |||||||||||||||||
| Insurance proceeds received for property damages | — | 6,184 | (6,184) | |||||||||||||||||
| Changes in securitization account | 12,910 | 11,707 | 1,203 | |||||||||||||||||
| Payments to storm reserve escrow accounts | (4,326) | (4,884) | 558 | |||||||||||||||||
| Decrease (increase) in other investments | (8,127) | 3,724 | (11,851) | |||||||||||||||||
| Litigation proceeds for reimbursement of spent nuclear fuel storage costs | — | 17,933 | (17,933) | |||||||||||||||||
| Proceeds from nuclear decommissioning trust fund sales | 711,745 | 231,775 | 479,970 | |||||||||||||||||
| Investment in nuclear decommissioning trust funds | (728,802) | (254,016) | (474,786) | |||||||||||||||||
| Net cash flow used in investing activities | (1,178,620) | (1,161,840) | (16,780) | |||||||||||||||||
| FINANCING ACTIVITIES | ||||||||||||||||||||
| Proceeds from the issuance of: | ||||||||||||||||||||
| Long-term debt | 2,861,928 | 875,364 | 1,986,564 | |||||||||||||||||
| Treasury stock | 39,223 | 61 | 39,162 | |||||||||||||||||
| Retirement of long-term debt | (1,544,163) | (1,439,243) | (104,920) | |||||||||||||||||
| Changes in commercial paper - net | (981,153) | 242,770 | (1,223,923) | |||||||||||||||||
| Capital contributions from noncontrolling interests | — | 25,708 | (25,708) | |||||||||||||||||
| Other | 83,601 | 45,408 | 38,193 | |||||||||||||||||
| Dividends paid: | ||||||||||||||||||||
| Common stock | (241,296) | (226,248) | (15,048) | |||||||||||||||||
| Preferred stock | (4,579) | (4,579) | — | |||||||||||||||||
| Net cash flow provided by (used in) financing activities | 213,561 | (480,759) | 694,320 | |||||||||||||||||
| Net increase (decrease) in cash and cash equivalents | 60,305 | (776,170) | 836,475 | |||||||||||||||||
| Cash and cash equivalents at beginning of period | 1,294,859 | 1,970,512 | (675,653) | |||||||||||||||||
| Cash and cash equivalents at end of period | $ | 1,355,164 | $ | 1,194,342 | $ | 160,822 | ||||||||||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||||||||||
| Cash paid during the period for: | ||||||||||||||||||||
| Interest - net of amount capitalized | $ | 294,811 | $ | 275,119 | $ | 19,692 | ||||||||||||||
| Income taxes | $ | 8,138 | $ | 36,583 | $ | (28,445) | ||||||||||||||
| Noncash investing activities: | ||||||||||||||||||||
| Accrued construction expenditures | $ | 28,417 | $ | 107,254 | $ | (78,837) | ||||||||||||||
31
| Entergy Corporation | ||||||||||||||||||||
| Consolidated Cash Flow Statement | ||||||||||||||||||||
| Six Months Ended June 30, 2024 vs. 2023 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| 2024 | 2023 | Variance | ||||||||||||||||||
| OPERATING ACTIVITIES | ||||||||||||||||||||
| Consolidated net income | $ | 128,268 | $ | 704,312 | $ | (576,044) | ||||||||||||||
| Adjustments to reconcile consolidated net income to net cash | ||||||||||||||||||||
| flow provided by operating activities: | ||||||||||||||||||||
| Depreciation, amortization, and decommissioning, including nuclear fuel amortization | 1,206,492 | 1,116,843 | 89,649 | |||||||||||||||||
| Deferred income taxes, investment tax credits, and non-current taxes accrued | 15,998 | 43,502 | (27,504) | |||||||||||||||||
| Asset write-offs, impairments and related charges | 131,775 | — | 131,775 | |||||||||||||||||
| Pension settlement charge | 316,738 | — | 316,738 | |||||||||||||||||
| Changes in working capital: | ||||||||||||||||||||
| Receivables | (187,554) | 65,259 | (252,813) | |||||||||||||||||
| Fuel inventory | 18,324 | (43,493) | 61,817 | |||||||||||||||||
| Accounts payable | (149,554) | (267,820) | 118,266 | |||||||||||||||||
| Taxes accrued | 16,546 | (25,080) | 41,626 | |||||||||||||||||
| Interest accrued | 23,560 | 6,807 | 16,753 | |||||||||||||||||
| Deferred fuel costs | 134,953 | 563,610 | (428,657) | |||||||||||||||||
| Other working capital accounts | (120,277) | (148,738) | 28,461 | |||||||||||||||||
| Changes in provisions for estimated losses | 4,630 | (16,564) | 21,194 | |||||||||||||||||
| Changes in regulatory assets | 260,722 | 391,188 | (130,466) | |||||||||||||||||
| Changes in other regulatory liabilities | 380,394 | 308,058 | 72,336 | |||||||||||||||||
| Effect of securitization on regulatory asset | — | (491,150) | 491,150 | |||||||||||||||||
| Changes in pension and other postretirement funded status | (131,539) | (128,379) | (3,160) | |||||||||||||||||
| Other | (503,020) | (252,383) | (250,637) | |||||||||||||||||
| Net cash flow provided by operating activities | 1,546,456 | 1,825,972 | (279,516) | |||||||||||||||||
| INVESTING ACTIVITIES | ||||||||||||||||||||
| Construction/capital expenditures | (2,124,279) | (2,311,465) | 187,186 | |||||||||||||||||
| Allowance for equity funds used during construction | 56,070 | 48,013 | 8,057 | |||||||||||||||||
| Nuclear fuel purchases | (161,483) | (134,698) | (26,785) | |||||||||||||||||
| Payment for purchase of plant and assets | (172,614) | (30,433) | (142,181) | |||||||||||||||||
| Proceeds from sale of assets | — | 11,000 | (11,000) | |||||||||||||||||
| Insurance proceeds received for property damages | — | 6,184 | (6,184) | |||||||||||||||||
| Changes in securitization account | 3,976 | 7,803 | (3,827) | |||||||||||||||||
| Payments to storm reserve escrow accounts | (9,595) | (9,080) | (515) | |||||||||||||||||
| Decrease (increase) in other investments | (9,689) | 262 | (9,951) | |||||||||||||||||
| Litigation proceeds for reimbursement of spent nuclear fuel storage costs | — | 17,933 | (17,933) | |||||||||||||||||
| Proceeds from nuclear decommissioning trust fund sales | 1,201,162 | 435,903 | 765,259 | |||||||||||||||||
| Investment in nuclear decommissioning trust funds | (1,250,039) | (486,853) | (763,186) | |||||||||||||||||
| Net cash flow used in investing activities | (2,466,491) | (2,445,431) | (21,060) | |||||||||||||||||
| FINANCING ACTIVITIES | ||||||||||||||||||||
| Proceeds from the issuance of: | ||||||||||||||||||||
| Long-term debt | 5,068,266 | 2,489,886 | 2,578,380 | |||||||||||||||||
| Treasury stock | 45,982 | 4,078 | 41,904 | |||||||||||||||||
| Retirement of long-term debt | (2,379,903) | (2,273,773) | (106,130) | |||||||||||||||||
| Changes in commercial paper - net | (205,820) | 280,765 | (486,585) | |||||||||||||||||
| Capital contributions from noncontrolling interest | — | 25,708 | (25,708) | |||||||||||||||||
| Proceeds received by storm trusts related to securitization | — | 1,457,676 | (1,457,676) | |||||||||||||||||
| Other | 105,540 | 66,898 | 38,642 | |||||||||||||||||
| Dividends paid: | ||||||||||||||||||||
| Common stock | (482,255) | (452,442) | (29,813) | |||||||||||||||||
| Preferred stock | (9,159) | (9,159) | — | |||||||||||||||||
| Net cash flow provided by financing activities | 2,142,651 | 1,589,637 | 553,014 | |||||||||||||||||
| Net increase in cash and cash equivalents | 1,222,616 | 970,178 | 252,438 | |||||||||||||||||
| Cash and cash equivalents at beginning of period | 132,548 | 224,164 | (91,616) | |||||||||||||||||
| Cash and cash equivalents at end of period | $ | 1,355,164 | $ | 1,194,342 | $ | 160,822 | ||||||||||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||||||||||
| Cash paid during the period for: | ||||||||||||||||||||
| Interest - net of amount capitalized | $ | 532,742 | $ | 490,201 | $ | 42,541 | ||||||||||||||
| Income taxes | $ | 7,822 | $ | 31,231 | $ | (23,409) | ||||||||||||||
| Noncash investing activities: | ||||||||||||||||||||
| Accrued construction expenditures | $ | 537,463 | $ | 535,714 | $ | 1,749 | ||||||||||||||
32
| Entergy Corporation | ||||||||||||||||||||
| Consolidated Cash Flow Statement | ||||||||||||||||||||
| Twelve Months Ended June 30, 2024 vs. 2023 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| 2024 | 2023 | Variance | ||||||||||||||||||
| OPERATING ACTIVITIES | ||||||||||||||||||||
| Consolidated net income | $ | 1,786,266 | $ | 1,357,846 | $ | 428,420 | ||||||||||||||
| Adjustments to reconcile consolidated net income to net cash | ||||||||||||||||||||
| flow provided by operating activities: | ||||||||||||||||||||
| Depreciation, amortization, and decommissioning, including nuclear fuel amortization | 2,334,128 | 2,193,260 | 140,868 | |||||||||||||||||
| Deferred income taxes, investment tax credits, and non-current taxes accrued | (735,326) | 270,487 | (1,005,813) | |||||||||||||||||
| Asset write-offs, impairments and related charges (credits) | 174,454 | (143) | 174,597 | |||||||||||||||||
| Pension settlement charge | 316,738 | — | 316,738 | |||||||||||||||||
| Changes in working capital: | ||||||||||||||||||||
| Receivables | (151,012) | 132,491 | (283,503) | |||||||||||||||||
| Fuel inventory | 16,651 | (52,931) | 69,582 | |||||||||||||||||
| Accounts payable | (16,782) | (412,748) | 395,966 | |||||||||||||||||
| Taxes accrued | 51,748 | (20,397) | 72,145 | |||||||||||||||||
| Interest accrued | 35,686 | 22,867 | 12,819 | |||||||||||||||||
| Deferred fuel costs | 330,704 | 837,111 | (506,407) | |||||||||||||||||
| Other working capital accounts | (181,577) | (169,120) | (12,457) | |||||||||||||||||
| Changes in provisions for estimated losses | (47,437) | 61,528 | (108,965) | |||||||||||||||||
| Changes in regulatory assets | 305,411 | 243,820 | 61,591 | |||||||||||||||||
| Changes in other regulatory liabilities | 536,141 | 25,711 | 510,430 | |||||||||||||||||
| Effect of securitization on regulatory asset | — | (395,230) | 395,230 | |||||||||||||||||
| Changes in pension and other postretirement funded status | (613,639) | (659,958) | 46,319 | |||||||||||||||||
| Other | (127,341) | 160,905 | (288,246) | |||||||||||||||||
| Net cash flow provided by operating activities | 4,014,813 | 3,595,499 | 419,314 | |||||||||||||||||
| INVESTING ACTIVITIES | ||||||||||||||||||||
| Construction/capital expenditures | (4,253,466) | (4,655,995) | 402,529 | |||||||||||||||||
| Allowance for equity funds used during construction | 106,549 | 91,405 | 15,144 | |||||||||||||||||
| Nuclear fuel purchases | (297,758) | (243,468) | (54,290) | |||||||||||||||||
| Payment for purchase of plant and assets | (177,276) | (31,477) | (145,799) | |||||||||||||||||
| Proceeds from sale of assets | — | 16,887 | (16,887) | |||||||||||||||||
| Insurance proceeds received for property damages | 13,309 | 6,184 | 7,125 | |||||||||||||||||
| Changes in securitization account | 1,666 | 22,980 | (21,314) | |||||||||||||||||
| Payments to storm reserve escrow accounts | (20,295) | (212,814) | 192,519 | |||||||||||||||||
| Receipts from storm reserve escrow accounts | 98,529 | 125,061 | (26,532) | |||||||||||||||||
| Decrease (increase) in other investments | (26,684) | 32,991 | (59,675) | |||||||||||||||||
| Litigation proceeds for reimbursement of spent nuclear fuel storage costs | 5,722 | 17,933 | (12,211) | |||||||||||||||||
| Proceeds from nuclear decommissioning trust fund sales | 1,847,981 | 973,086 | 874,895 | |||||||||||||||||
| Investment in nuclear decommissioning trust funds | (1,948,316) | (1,074,119) | (874,197) | |||||||||||||||||
| Net cash flow used in investing activities | (4,650,039) | (4,931,346) | 281,307 | |||||||||||||||||
| FINANCING ACTIVITIES | ||||||||||||||||||||
| Proceeds from the issuance of: | ||||||||||||||||||||
| Long-term debt | 6,851,677 | 4,658,660 | 2,193,017 | |||||||||||||||||
| Treasury stock | 51,727 | 9,168 | 42,559 | |||||||||||||||||
| Common stock | 130,649 | 852,555 | (721,906) | |||||||||||||||||
| Retirement of long-term debt | (5,241,883) | (3,976,253) | (1,265,630) | |||||||||||||||||
| Changes in commercial paper - net | (176,035) | (289,485) | 113,450 | |||||||||||||||||
| Capital contributions from noncontrolling interest | — | 40,815 | (40,815) | |||||||||||||||||
| Proceeds received by storm trusts related to securitization | — | 1,457,676 | (1,457,676) | |||||||||||||||||
| Other | 146,238 | 99,136 | 47,102 | |||||||||||||||||
| Dividends paid: | ||||||||||||||||||||
| Common stock | (948,006) | (883,653) | (64,353) | |||||||||||||||||
| Preferred stock | (18,319) | (18,319) | — | |||||||||||||||||
| Net cash flow provided by financing activities | 796,048 | 1,950,300 | (1,154,252) | |||||||||||||||||
| Net increase in cash and cash equivalents | 160,822 | 614,453 | (453,631) | |||||||||||||||||
| Cash and cash equivalents at beginning of period | 1,194,342 | 579,889 | 614,453 | |||||||||||||||||
| Cash and cash equivalents at end of period | $ | 1,355,164 | $ | 1,194,342 | $ | 160,822 | ||||||||||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||||||||||
| Cash paid during the period for: | ||||||||||||||||||||
| Interest - net of amount capitalized | $ | 1,029,793 | $ | 937,419 | $ | 92,374 | ||||||||||||||
| Income taxes | $ | 19,412 | $ | 67,070 | $ | (47,658) | ||||||||||||||
| Noncash investing activities: | ||||||||||||||||||||
| Accrued construction expenditures | $ | 537,463 | $ | 535,714 | $ | 1,749 | ||||||||||||||
33