Entergy reports third quarter earnings
Company narrows guidance range and extends financial outlooks
NEW ORLEANS, Nov. 1, 2023 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported third quarter 2023 earnings per share of $3.14 on an as-reported basis, and $3.27 on an adjusted (non-GAAP) basis.
"The commitment and effort given by our employees were exceptional, and our plants and grid all performed well to deliver reliable service to our customers during this summer's extreme heat," said Drew Marsh, Entergy Chairman and Chief Executive Officer. "The quarter's results keep us firmly on track to achieve our commitments, and we made important regulatory progress including settlements that reduce risk and uncertainty going forward."
Business highlights included the following:
- Entergy narrowed its 2023 adjusted EPS guidance range to $6.65 to $6.85.
- SERI reached a settlement in principle with the APSC to resolve all of the APSC's complaints against SERI; the settlement is subject to FERC approval.
- Entergy announced agreement to sell its gas distribution business for approximately $484 million.
- E-LA and Lotte Chemical USA Corporation signed a memorandum of understanding aimed at meeting Lotte's sustainability goals.
- The CCNO approved E-NO's request to extend its FRP through the 2026 filing year.
- FERC issued its order on rehearing for the sale leaseback renewal and uncertain tax positions case.
- The PUCT approved E-TX's base rate case settlement.
- E-AR committed to resolve recovery of costs associated with the March 2013 ANO stator incident.
- E-LA filed a proposal which includes modifying extending its current FRP for three years.
- Entergy's Board of Directors declared a quarterly dividend of $1.13 per share, a six percent increase.
- Entergy was named as one of the nation's top utilities in economic development by Site Selection magazine for the 16th consecutive year.
Table of contents Page |
News release 1 A: Consolidated results and adjustments 8 B: Earnings variance analysis 11 C: Utility operating and financial measures 14 D: Consolidated financial measures 15 E: Definitions and abbreviations and acronyms 16 F: Other GAAP to non-GAAP reconciliations 18 Financial statements 20 |
Consolidated earnings (GAAP and non-GAAP measures) | ||||||
Third quarter and year-to-date 2023 vs. 2022 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of adjustments) | ||||||
Third quarter | Year-to-date | |||||
2023 | 2022 | Change | 2023 | 2022 | Change | |
(After-tax, $ in millions) | ||||||
As-reported earnings | 667 | 561 | 106 | 1,369 | 997 | 372 |
Less adjustments | (27) | (19) | (8) | 42 | (216) | 258 |
Adjusted earnings (non-GAAP) | 694 | 580 | 114 | 1,327 | 1,213 | 114 |
Estimated weather impact | 135 | 21 | 115 | 103 | 86 | 17 |
(After-tax, per share in $) | ||||||
As-reported earnings | 3.14 | 2.74 | 0.40 | 6.45 | 4.88 | 1.57 |
Less adjustments | (0.13) | (0.10) | (0.03) | 0.20 | (1.06) | 1.26 |
Adjusted earnings (non-GAAP) | 3.27 | 2.84 | 0.43 | 6.25 | 5.94 | 0.32 |
Estimated weather impact | 0.64 | 0.10 | 0.54 | 0.48 | 0.42 | 0.06 |
Calculations may differ due to rounding |
Consolidated results
For third quarter 2023, the company reported earnings of $667 million, or $3.14 per share, on an as-reported basis and earnings of $694 million, or $3.27 per share, on an adjusted basis. This compared to third quarter 2022 earnings of $561 million, or $2.74 per share, on an as-reported basis and earnings of $580 million, or $2.84 per share, on an adjusted basis.
Summary discussions by business follow. Additional details, including information on OCF by business, are provided in Appendix A. An analysis of variances by business is provided in Appendix B.
Business segment results
Utility
For third quarter 2023, the Utility business reported earnings attributable to Entergy Corporation of $752 million, or $3.54 per share, on an as-reported basis and $810 million, or $3.82 per share, on an adjusted basis. This compared to third quarter 2022 earnings of $672 million, or $3.29 per share, on both an as-reported and adjusted basis.
Drivers for the increase in quarterly earnings included:
- the effects of weather on retail volume,
- the net effect of regulatory actions across the operating companies,
- lower other O&M, and
- higher other income (deductions) from affiliate preferred investments (offset at P&O and largely earnings neutral at the consolidated level).
The drivers were partially offset by an Entergy Arkansas write-off in third quarter 2023 totaling $(78 million) ($(59 million) after tax), including $(69 million) for replacement power costs included in deferred fuel and $(10 million) for undepreciated property, plant, and equipment. The write-off was recorded to reflect Entergy Arkansas' offer to forgo its opportunity to seek recovery of costs resulting from the March 2013 ANO stator incident. The write-off was considered an adjustment and excluded from adjusted earnings.
Depreciation expense on new assets and higher interest expense also provided partial offsets.
On a per share basis, third quarter 2023 results reflected higher diluted average number of common shares outstanding.
Appendix C contains additional details on Utility operating and financial measures.
Parent & Other
For third quarter 2023, Parent & Other reported a loss attributable to Entergy Corporation of $(85 million), or (40) cents per share, on an as-reported basis and a loss of $(117 million), or (55) cents per share, on an adjusted basis. This compared to third quarter 2022 loss of $(112 million), or (55) cents per share, on an as-reported basis and a loss of $(92 million), or (45) cents per share, on an adjusted basis.
In 2022, the wind down of EWC was completed and that business is no longer a reportable segment. Starting in 2023, the remaining activity from EWC is included in Parent & Other. For comparability, EWC's 2022 results are also included in Parent & Other.
In third quarter 2022, EWC reported a loss of $(19 million), or (10) cents per share, on an as-reported basis, largely driven by the accrual of an uncertain tax position as a result of a state tax audit.
Other drivers for the quarterly Parent & Other variance included:
- the effects of the third quarter 2023 DOE spent fuel litigation settlement on asset write-offs and impairments (considered an adjustment and excluded from adjusted earnings),
- higher dividends on intercompany preferred investments (offset at Utility and largely earnings neutral for consolidated results),
- higher interest expense, and
- higher non-service pension income.
On a per share basis, third quarter 2023 results reflected higher diluted average number of common shares outstanding.
Earnings per share guidance
Entergy narrowed its 2023 adjusted EPS guidance to a range of $6.65 to $6.85. See webcast presentation for additional details.
The company has provided 2023 earnings guidance with regard to the non-GAAP measure of adjusted earnings per share. This measure excludes from the corresponding GAAP financial measure the effect of adjustments as described below under "Non-GAAP financial measures." The company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot predict and quantify with a reasonable degree of confidence all of the adjustments that may occur during the period. Potential adjustments include the exclusion of regulatory charges related to outstanding regulatory complaints and significant income tax items.
Earnings teleconference
A teleconference will be held at 10:00 a.m. Central Time on Wednesday, November 1, 2023, to discuss Entergy's quarterly earnings announcement and the company's financial performance. The teleconference may be accessed by visiting Entergy's website at www.entergy.com or by dialing 888-440-4149, conference ID 9024832, no more than 15 minutes prior to the start of the call. The webcast presentation is also being posted to Entergy's website concurrent with this news release. A replay of the teleconference will be available on Entergy's website at www.entergy.com and by telephone. The telephone replay will be available through November 8, 2023, by dialing 800-770-2030, conference ID 9024832.
Entergy is a Fortune 500 company that powers life for 3 million customers through our operating companies in Arkansas, Louisiana, Mississippi, and Texas. We're investing in the reliability and resilience of the energy system while helping our region transition to cleaner, more efficient energy solutions. With roots in our communities for more than 100 years, Entergy is a nationally recognized leader in sustainability and corporate citizenship. Since 2018, we have delivered more than $100 million in economic benefits each year to local communities through philanthropy, volunteerism, and advocacy. Entergy is headquartered in New Orleans, Louisiana, and has approximately 12,000 employees.
Entergy Corporation's common stock is listed on the New York Stock Exchange and NYSE Chicago under the symbol "ETR".
Details regarding Entergy's results of operations, regulatory proceedings, and other matters are available in this earnings release, a copy of which will be filed with the SEC, and the webcast presentation. Both documents are available on Entergy's Investor Relations website at www.entergy.com/investors.
Entergy maintains a web page as part of its Investor Relations website, entitled Regulatory and other information, which provides investors with key updates on certain regulatory proceedings and important milestones on the execution of its strategy. While some of this information may be considered material information, investors should not rely exclusively on this page for all relevant company information.
For definitions of certain operating measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the earnings release materials, see Appendix E.
Non-GAAP financial measures
This news release contains non-GAAP financial measures, which are generally numerical measures of a company's performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Entergy has provided quantitative reconciliations within this news release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Entergy reports earnings using the non-GAAP measure of Entergy adjusted earnings, which excludes the effect of certain "adjustments." Adjustments are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as significant tax items, and other items such as certain costs, expenses, or other specified items. In addition to reporting GAAP consolidated earnings on a per share basis, Entergy reports its adjusted earnings on a per share basis. These per share measures represent the applicable earnings amount divided by the diluted average number of common shares outstanding for the period.
Management uses the non-GAAP financial measures of adjusted earnings and adjusted earnings per share for, among other things, financial planning and analysis; reporting financial results to the board of directors, employees, stockholders, analysts, and investors; and internal evaluation of financial performance. Entergy believes that these non-GAAP financial measures provide useful information to investors in evaluating the ongoing results of Entergy's business, comparing period to period results, and comparing Entergy's financial performance to the financial performance of other companies in the utility sector.
Other non-GAAP measures, including adjusted ROE; adjusted ROE, excluding affiliate preferred; gross liquidity; net liquidity; net liquidity, including storm escrows; debt to capital, excluding securitization debt; net debt to net capital, excluding securitization debt; parent debt to total debt, excluding securitization debt; and FFO to debt, excluding securitization debt, are measures Entergy uses internally for management and board discussions and to gauge the overall strength of its business. Entergy believes the above data provides useful information to investors in evaluating Entergy's ongoing financial results and flexibility and assists investors in comparing Entergy's credit and liquidity to the credit and liquidity of others in the utility sector. In addition, ROE is included on both an adjusted and an as-reported basis. Metrics defined as "adjusted" exclude the effect of adjustments as defined above.
These non-GAAP financial measures reflect an additional way of viewing aspects of Entergy's operations that, when viewed with Entergy's GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting Entergy's business. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. Investors are strongly encouraged to review Entergy's consolidated financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Although certain of these measures are intended to assist investors in comparing Entergy's performance to other companies in the utility sector, non-GAAP financial measures are not standardized; therefore, it might not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
Cautionary note regarding forward-looking statements
In this news release, and from time to time, Entergy Corporation makes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, among other things, statements regarding Entergy's 2023 earnings guidance; current financial and operational outlooks; industrial load growth outlooks; statements regarding its climate transition and resilience plans, goals, beliefs, or expectations; and other statements of Entergy's plans, beliefs, or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Forward-looking statements are subject to a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy's most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q, and Entergy's other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans, and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent or on the timeline anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with (1) realizing the benefits of its resilience plan, including impacts of the frequency and intensity of future storms and storm paths, as well as the pace of project completion and (2) efforts to remediate the effects of major storms and recover related restoration costs; (d) risks associated with operating nuclear facilities, including plant relicensing, operating, and regulatory costs and risks; (e) changes in decommissioning trust values or earnings or in the timing or cost of decommissioning Entergy's nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with executing on business strategies, including strategic transactions that Entergy or its subsidiaries may undertake and the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) direct and indirect impacts to Entergy or its customers from pandemics, terrorist attacks, geopolitical conflicts, cybersecurity threats, data security breaches, or other attempts to disrupt Entergy's business or operations, and/or other catastrophic events; and (i) effects on Entergy or its customers of (1) changes in federal, state, or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental, or energy policies; (2) the effects of changes in commodity markets, capital markets, or economic conditions; and (3) the effects of technological change, including the costs, pace of development, and commercialization of new and emerging technologies.
Third quarter 2023 earnings release appendices and financial statements
Appendices
A: Consolidated results and adjustments
B: Earnings variance analysis
C: Utility operating and financial measures
D: Consolidated financial measures
E: Definitions and abbreviations and acronyms
F: Other GAAP to non-GAAP reconciliations
Financial statements
Consolidating balance sheets
Consolidating income statements
Consolidated cash flow statements
A: Consolidated results and adjustments
Appendix A-1 provides a comparative summary of consolidated earnings, including a reconciliation of as-reported earnings (GAAP) to adjusted earnings (non-GAAP).
Appendix A-1: Consolidated earnings - reconciliation of GAAP to non-GAAP measures Third quarter and year-to-date 2023 vs. 2022 (See Appendix A-2 and Appendix A-3 for details on adjustments) | ||||||
Third quarter | Year-to-date | |||||
2023 | 2022 | Change | 2023 | 2022 | Change | |
(After-tax, $ in millions) | ||||||
As-reported earnings (loss) | ||||||
Utility | 752 | 672 | 79 | 1,663 | 1,166 | 498 |
Parent & Other | ||||||
2022 EWC | - | (19) | 19 | - | 75 | (75) |
All other | (85) | (92) | 8 | (294) | (244) | (50) |
Total Parent & Other | (85) | (112) | 27 | (294) | (169) | (125) |
Consolidated | 667 | 561 | 106 | 1,369 | 997 | 372 |
Less adjustments | ||||||
Utility | (59) | - | (59) | 10 | (291) | 301 |
Parent & Other | ||||||
2022 EWC | - | (19) | 19 | - | 75 | (75) |
All other | 32 | - | 32 | 32 | - | 32 |
Total Parent & Other | 32 | (19) | 51 | 32 | 75 | (43) |
Consolidated | (27) | (19) | (8) | 42 | (216) | 258 |
Adjusted earnings (loss) (non-GAAP) | ||||||
Utility | 810 | 672 | 138 | 1,653 | 1,457 | 196 |
Parent & Other | ||||||
2022 EWC | - | - | - | - | - | - |
All other | (117) | (92) | (24) | (326) | (244) | (82) |
Total Parent & Other | (117) | (92) | (24) | (326) | (244) | (82) |
Consolidated | 694 | 580 | 114 | 1,327 | 1,213 | 114 |
Estimated weather impact | 135 | 21 | 115 | 103 | 86 | 17 |
Diluted average number of common shares outstanding (in millions) | 212 | 205 | 8 | 212 | 204 | 8 |
(After-tax, per share in $) (a) | ||||||
As-reported earnings (loss) | ||||||
Utility | 3.54 | 3.29 | 0.25 | 7.84 | 5.70 | 2.13 |
Parent & Other | ||||||
2022 EWC | - | (0.10) | 0.10 | - | 0.37 | (0.37) |
All other | (0.40) | (0.45) | 0.05 | (1.39) | (1.19) | (0.19) |
Total Parent & Other | (0.40) | (0.55) | 0.15 | (1.39) | (0.83) | (0.56) |
Consolidated | 3.14 | 2.74 | 0.40 | 6.45 | 4.88 | 1.57 |
Less adjustments | ||||||
Utility | (0.28) | - | (0.28) | 0.05 | (1.43) | 1.47 |
Parent & Other | ||||||
2022 EWC | - | (0.10) | 0.10 | - | 0.37 | (0.37) |
All other | 0.15 | - | 0.15 | 0.15 | - | 0.15 |
Total Parent & Other | 0.15 | (0.10) | 0.25 | 0.15 | 0.37 | (0.22) |
Consolidated | (0.13) | (0.10) | (0.03) | 0.20 | (1.06) | 1.26 |
Adjusted earnings (loss) (non-GAAP) | ||||||
Utility | 3.82 | 3.29 | 0.53 | 7.79 | 7.13 | 0.66 |
Parent & Other | ||||||
2022 EWC | - | - | - | - | - | - |
All other | (0.55) | (0.45) | (0.10) | (1.54) | (1.19) | (0.34) |
Total Parent & Other | (0.55) | (0.45) | (0.10) | (1.54) | (1.19) | (0.34) |
Consolidated | 3.27 | 2.84 | 0.43 | 6.25 | 5.94 | 0.32 |
Estimated weather impact | 0.64 | 0.10 | 0.54 | 0.48 | 0.42 | 0.06 |
Calculations may differ due to rounding | |
(a) | Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period. |
See Appendix B for detailed earnings variance analysis.
Appendix A-2 and Appendix A-3 detail adjustments by business. Adjustments are included in as-reported earnings consistent with GAAP but are excluded from adjusted earnings. As a result, adjusted earnings is considered a non-GAAP measure.
Appendix A-2: Adjustments by driver (shown as positive/(negative) impact on earnings or EPS) | ||||||
Third quarter and year-to-date 2023 vs. 2022 | ||||||
Third quarter | Year-to-date | |||||
2023 | 2022 | Change | 2023 | 2022 | Change | |
(Pre-tax except for income taxes and totals; $ in millions) | ||||||
Utility | ||||||
E-AR write-off of assets related to the ANO stator incident | (78) | - | (78) | (78) | - | (78) |
E-LA and E-TX true-up for carrying costs on storm expenditures | - | - | - | 31 | 41 | (10) |
E-LA contribution to the LURC related to securitization | - | - | - | (15) | (32) | 17 |
E-LA customer-sharing of securitization benefit | - | - | - | (103) | (224) | 121 |
SERI regulatory charge resulting from partial settlement and offer of settlement for pending litigation | - | - | - | - | (551) | 551 |
Income tax effect on Utility adjustments above | 20 | - | 20 | 47 | 192 | (145) |
E-LA income tax benefit resulting from securitization | - | - | - | 129 | 283 | (154) |
Total Utility | (59) | - | (59) | 10 | (291) | 301 |
Parent & Other | ||||||
2022 EWC | ||||||
Income before income taxes | - | - | - | - | 123 | (123) |
Income taxes | - | (18) | 18 | - | (46) | 46 |
Preferred dividend requirement | - | (1) | 1 | - | (2) | 2 |
Total 2022 EWC | - | (19) | 19 | - | 75 | (75) |
All Other | ||||||
DOE spent nuclear fuel litigation settlement – IPEC | 40 | - | 40 | 40 | - | 40 |
Income tax effect on adjustments above | (9) | - | (9) | (9) | - | (9) |
Total Parent & Other | 32 | (19) | 51 | 32 | 75 | (43) |
Total adjustments | (27) | (19) | (8) | 42 | (216) | 258 |
(After-tax, per share in $) (b) | ||||||
Utility | ||||||
E-AR write-off of assets related to the ANO stator incident | (0.28) | - | (0.28) | (0.28) | - | (0.28) |
E-LA and E-TX true-up for carrying costs on storm expenditures | - | - | - | 0.14 | 0.17 | (0.03) |
E-LA contribution to the LURC related to securitization | - | - | - | (0.07) | (0.15) | 0.09 |
E-LA customer-sharing of securitization benefit | - | - | - | (0.36) | (0.81) | 0.45 |
SERI regulatory charge resulting from partial settlement and offer of settlement for pending litigation | - | - | - | - | (2.02) | 2.02 |
E-LA income tax benefit resulting from securitization | - | - | - | 0.61 | 1.38 | (0.77) |
Total Utility | (0.28) | - | (0.28) | 0.05 | (1.43) | 1.48 |
Parent & Other | ||||||
Total 2022 EWC | - | (0.10) | 0.10 | - | 0.37 | (0.37) |
DOE spent nuclear fuel litigation settlement – IPEC | 0.15 | - | 0.15 | 0.15 | - | 0.15 |
Total Parent & Other | 0.15 | (0.10) | 0.25 | 0.15 | 0.37 | (0.22) |
Total adjustments | (0.13) | (0.10) | (0.03) | 0.20 | (1.06) | 1.26 |
Calculations may differ due to rounding | |
(b) | Per share amounts are calculated by multiplying the corresponding earnings (loss) by the estimated income tax rate that is expected to apply and dividing by the diluted average number of common shares outstanding for the period. |
Appendix A-3: Adjustments by income statement line item (shown as positive/(negative) impact on earnings) | ||||||
Third quarter and year-to-date 2023 vs. 2022 | ||||||
(Pre-tax except for income taxes, preferred dividend requirements, and totals; $ in millions) | ||||||
Third quarter | Year-to-date | |||||
2023 | 2022 | Change | 2023 | 2022 | Change | |
Utility | ||||||
Operating revenues | - | - | - | 31 | 46 | (16) |
Asset write-offs and impairments | (78) | - | (78) | (78) | - | (78) |
Other regulatory charges (credits)–net | - | - | - | (103) | (775) | 672 |
Other income (deductions) | - | - | - | (15) | (37) | 22 |
Income taxes | 20 | - | 20 | 176 | 474 | (299) |
Total Utility | (59) | - | (59) | 10 | (291) | 301 |
Parent & Other | ||||||
2022 EWC | ||||||
Operating revenues | - | 62 | (62) | - | 301 | (301) |
Fuel and fuel-related expenses | - | (30) | 30 | - | (81) | 81 |
Purchased power | - | (24) | 24 | - | (64) | 64 |
Nuclear refueling outage expenses | - | - | - | - | (18) | 18 |
Other O&M | - | (10) | 10 | - | (94) | 94 |
Asset write-offs and impairments | - | - | - | - | 163 | (163) |
Decommissioning | - | - | - | - | (28) | 28 |
Taxes other than income taxes | - | (1) | 1 | - | (13) | 13 |
Depreciation and amortization | - | (1) | 1 | - | (13) | 13 |
Other income (deductions) | - | 6 | (6) | - | (26) | 26 |
Interest expense | - | (2) | 2 | - | (5) | 5 |
Income taxes | - | (18) | 18 | - | (46) | 46 |
Preferred dividend requirements | - | (1) | 1 | - | (2) | 2 |
Total 2022 EWC | - | (19) | 19 | - | 75 | (75) |
All Other | ||||||
Asset write-offs and impairments | 40 | - | 40 | 40 | - | 40 |
Income taxes | (9) | - | (9) | (9) | - | (9) |
Total Parent & Other | 32 | (19) | 51 | 32 | 75 | (43) |
Total adjustments | (27) | (19) | (8) | 42 | (216) | 258 |
Calculations may differ due to rounding |
Appendix A-4 provides a comparative summary of OCF by business.
Appendix A-4: Consolidated operating cash flow | ||||||
Third quarter and year-to-date 2023 vs. 2022 | ||||||
($ in millions) | ||||||
Third quarter | Year-to-date | |||||
2023 | 2022 | Change | 2023 | 2022 | Change | |
Utility | 1,387 | 1,086 | 301 | 3,301 | 1,942 | 1,360 |
Parent & Other | ||||||
2022 EWC | - | (56) | 56 | - | 22 | (22) |
All other | 18 | (36) | 54 | (70) | (155) | 84 |
Total Parent & Other | 18 | (93) | 111 | (70) | (132) | 62 |
Consolidated | 1,405 | 993 | 412 | 3,231 | 1,809 | 1,422 |
Calculations may differ due to rounding |
OCF increased for the quarter due primarily to lower Utility fuel and purchased power payments, lower other O&M spending, and 2022 EWC severance and retention payments; the increases were partially offset by Utility customer receipts (primarily higher fuel revenue) and higher pension contributions.
B: Earnings variance analysis
Appendix B-1 and Appendix B-2 provide details of current quarter and year-to-date 2023 versus 2022 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) | ||||||||||
Third quarter 2023 vs. 2022 | ||||||||||
(After-tax, per share in $) | ||||||||||
Parent & Other | ||||||||||
Utility | 2022 EWC (f) | All other | Consolidated | |||||||
As- reported | Adjusted | As- reported | As- reported | Adjusted | As- reported | Adjusted | ||||
2022 earnings (loss) | 3.29 | 3.29 | (0.10) | (0.45) | (0.45) | 2.74 | 2.84 | |||
Operating revenue less: | 0.57 | 0.57 | (g) | (0.03) | 0.02 | 0.02 | 0.56 | 0.59 | ||
Other O&M | 0.12 | 0.12 | (h) | 0.04 | - | - | 0.15 | 0.11 | ||
Asset write-offs and impairments | (0.29) | - | (i) | - | 0.16 | - | (j) | (0.13) | - | |
Decommissioning expense | (0.01) | (0.01) | - | - | - | (0.01) | (0.01) | |||
Taxes other than income taxes | (0.03) | (0.03) | - | - | - | (0.03) | (0.03) | |||
Depreciation/amortization exp. | 0.05 | 0.05 | (k) | 0.01 | - | - | 0.05 | 0.04 | ||
Other income (deductions) | 0.08 | 0.08 | (l) | (0.02) | (0.06) | (0.06) | (m) | (0.01) | 0.02 | |
Interest expense | (0.07) | (0.07) | (n) | 0.01 | (0.05) | (0.05) | (o) | (0.10) | (0.11) | |
Income taxes–other | (0.03) | (0.03) | 0.09 | (0.02) | (0.02) | 0.04 | (0.05) | |||
Share effect | (0.13) | (0.14) | (p) | - | 0.01 | 0.02 | (0.12) | (0.12) | ||
2023 earnings (loss) | 3.54 | 3.82 | - | (0.40) | (0.55) | 3.14 | 3.27 | |||
Calculations may differ due to rounding |
Appendix B-2: As-reported and adjusted earnings per share variance analysis (c), (d), (e) | ||||||||||
Year-to-date 2023 vs. 2022 | ||||||||||
(After-tax, per share in $) | ||||||||||
Parent & Other | ||||||||||
Utility | 2022 EWC (f) | All other | Consolidated | |||||||
As- reported | Adjusted | As- reported | As- reported | Adjusted | As- reported | Adjusted | ||||
2022 earnings (loss) | 5.70 | 7.13 | 0.37 | (1.19) | (1.19) | 4.88 | 5.94 | |||
Operating revenue less: | 3.15 | 0.75 | (g) | (0.60) | 0.04 | 0.04 | 2.59 | 0.79 | ||
Nuclear refueling outage expense | (0.04) | (0.04) | 0.07 | - | - | 0.04 | (0.04) | |||
Other O&M | 0.45 | 0.45 | (h) | 0.36 | (0.04) | (0.04) | 0.77 | 0.41 | ||
Asset write-offs and impairments | (0.29) | - | (i) | (0.63) | 0.16 | - | (j) | (0.76) | - | |
Decommissioning expense | (0.03) | (0.03) | 0.11 | - | - | 0.08 | (0.03) | |||
Taxes other than income taxes | (0.13) | (0.13) | (q) | 0.05 | (0.01) | (0.01) | (0.09) | (0.14) | ||
Depreciation/amortization exp. | (0.13) | (0.13) | (k) | 0.05 | (0.02) | (0.02) | (0.09) | (0.14) | ||
Other income (deductions) | 0.50 | 0.39 | (l) | 0.10 | (0.25) | (0.25) | (m) | 0.35 | 0.14 | |
Interest expense | (0.20) | (0.20) | (n) | 0.02 | (0.10) | (0.10) | (o) | (0.28) | (0.30) | |
Income taxes–other | (0.86) | (0.10) | (r) | 0.10 | (0.02) | (0.02) | (0.78) | (0.12) | ||
Preferred dividend requirements and noncontrolling interest | - | - | 0.01 | (0.01) | (0.01) | - | (0.01) | |||
Share effect | (0.30) | (0.30) | (p) | - | 0.05 | 0.06 | (p) | (0.25) | (0.24) | |
2023 earnings (loss) | 7.84 | 7.79 | - | (1.39) | (1.54) | 6.45 | 6.25 | |||
Calculations may differ due to rounding |
(c) Utility operating revenue and Utility income taxes-other exclude the following for the amortization of unprotected excess | ||||
3Q23 | 3Q22 | YTD23 | YTD22 | |
Utility operating revenue | 5 | (16) | 8 | (50) |
Utility income taxes-other | (5) | 16 | (8) | 50 |
(d) Utility regulatory charges (credits) and Utility preferred dividend requirements and noncontrolling interest exclude the | ||||
3Q23 | 3Q22 | YTD23 | YTD22 | |
Utility regulatory charges (credits) | 3 | 10 | 10 | 12 |
Utility preferred dividend requirements and noncontrolling interest | (3) | (10) | (10) | (12) |
(e) | EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply and dividing by diluted average number of common shares outstanding for the prior period. Income taxes–other represents income tax differences other than the tax effect of individual line items. Share effect captures the impact from the change in diluted average number of common shares outstanding. |
(f) | In 2022, the wind down of EWC was completed and that business is no longer a reportable segment. Starting in 2023, the remaining activity from EWC is included in Parent & Other "All other." EWC 2022 results were largely attributable to Palisades nuclear plant, which was shut down and sold in second quarter 2022. Financial results in 2022 included revenue and operating expenses from Palisades until the plant was shut down in May 2022, and decommissioning expense and earnings on the decommissioning trust until the plant was sold in June 2022. Second quarter 2022 results also included a gain of $166 million ($130 million after tax) as a result of the sale of Palisades. Third quarter 2022 results included the accrual of an uncertain tax position as a result of a state tax audit. |
Utility as-reported operating revenue less fuel, fuel-related expenses 2023 vs. 2022 ($ EPS) | ||
3Q | YTD | |
Electric volume / weather | 0.52 | 0.08 |
Retail electric price | 0.28 | 0.94 |
3Q23 E-TX adjustments to regulatory provisions | 0.11 | 0.11 |
3Q23 E-TX base rate case relate-back | (0.03) | (0.03) |
3Q23 SERI depreciation rate settlement | (0.15) | (0.15) |
3Q22 reg. credit for E-MS 2021 FRP lookback in excess of previous provision | (0.05) | (0.05) |
3Q22 reg. credit for E-MS 2022 FRP rate change retroactive to 4/1/2022 | (0.03) | (0.03) |
2Q22 increase in provision for potential refunds in SERI complaints | - | 2.02 |
2Q22 provision for customer sharing of securitization benefits | - | 0.81 |
2Q22 reg. provisions for true-up of E-LA and | - | (0.26) |
2022 reg. provisions for true-up of E-LA and | - | (0.07) |
1Q23 provision for customer sharing of securitization benefits | - | (0.37) |
1Q23 E-LA true-up of carrying charges on storm costs | - | 0.15 |
Reg. provisions for decommissioning items | 0.03 | (0.02) |
Grand Gulf recovery | (0.08) | (0.07) |
Other | (0.03) | 0.09 |
Total | 0.57 | 3.15 |
(g) | The third quarter and year-to-date increases included the effects of weather on retail volume. Variances also reflect regulatory actions including E-AR's FRP, E-LA's FRP (including riders), E-MS's FRP, E-NO's FRP, and E-TX's base rate increase. In third quarter 2022, E-MS recorded regulatory credits for the true up of the 2021 FRP lookback as well as the retroactive portion of its FRP rate change. In third quarter 2023, E-TX recorded adjustments to existing regulatory provisions and a new regulatory provision for the relate-back portion of its base rate case. In third quarter 2023, SERI recorded a regulatory provision to refund excess depreciation collected from customers as a result of FERC approving lower depreciation rates retroactive to March 2022 (largely offset by a retroactive reduction in depreciation expense). The variances also reflected a change in regulatory provisions for decommissioning items (the difference between expense and trust earnings plus costs collected in revenue, largely earnings neutral). The year-to-date variance included several second quarter 2022 items: SERI recorded a $551 million ($413 million after-tax) regulatory charge to reflect the effects of a partial settlement agreement and offer of settlement related to pending proceedings before the FERC (this item was considered an adjustment and excluded from adjusted earnings); a regulatory provision for the true-up of E-LA and E-TX cost of debt from 2020 storms was recorded, as well as $59 million in revenues ($54 million after-tax) for the equity component of carrying charges on those storm costs ($46 million ($42 million after tax) associated with prior years was considered an adjustment and excluded from adjusted earnings); and E-LA recorded a $224 million ($165 million after-tax) regulatory provision for sharing the benefits of E-LA's securitization with customers (considered an adjustment and excluded from adjusted earnings). The year-to-date variance also reflected items resulting from securitization approvals: in the first quarter 2023, E-LA recorded a regulatory provision for $103 million ($76 million after tax) for sharing the benefits of E-LA's securitization with customers and $31 million for the true-up of carrying charges on storm costs (both were considered adjustments and excluded from adjusted earnings). |
(h) | The third quarter and year-to-date earnings increases from lower Utility other O&M included lower nuclear generation expenses primarily due to a lower scope of work, and lower MISO costs as a result of MISO changing its ancillary generator services market structure (largely offset by lower ancillary generator revenues). The increases also reflected lower compensation and benefits costs including lower pension and other postretirement benefits service costs and healthcare claims. The year-to-date increase also reflected higher prescription drug rebates in 2023, lower non-nuclear generation expenses primarily due to a lower scope of work, the recognition of a DOE award for spent fuel litigation, and a gain on sale of an asset, partially offset by lower nuclear insurance refunds. |
(i) | The third quarter and year-to-date as-reported earnings decreases from higher asset write-offs and impairments were due to a third quarter 2023 E-AR write-off totaling $78 million ($59 million after tax) for a $69 million regulatory asset for deferred fuel and a $10 million undepreciated balance in capital costs, which resulted from the ANO stator incident in 2013 (considered an adjustment and excluded from adjusted earnings). |
(j) | The third quarter and year-to-date as-reported earnings increases from Parent & Other asset write-offs and impairments were due to recording a spent fuel litigation settlement related to IPEC in third quarter 2023 (considered an adjustment and excluded from adjusted earnings). |
(k) | The third quarter earnings increase from lower Utility depreciation/amortization expense was due to a reduction in depreciation expense resulting from FERC approval of lower depreciation rates at SERI retroactive to March 2022 (largely offset by a regulatory provision to refund the excess depreciation collected from customers). The increase was partially offset by higher plant in service and updated depreciation rates for E-TX. The year-to-date earnings decrease reflected the same drivers. |
(l) | The third quarter and year-to-date earnings increases from higher Utility other income (deductions) were due to higher intercompany dividend income from affiliated preferred membership interests related to storm cost securitizations (largely offset in P&O). The increases were partially offset by lower carrying costs on deferred fuel balances, an increase in non-service pension settlement costs, and lower donations. The third quarter increase was partially offset by changes in nuclear decommissioning trust returns (based on regulatory treatment, decommissioning-related variances are largely earnings neutral). The year-to-date earnings increase also reflected an increase in allowance for equity funds used during construction due to higher construction work in progress in 2023, partially offset by lower storm restoration carrying costs. Additionally, a $32 million charge recorded in second quarter 2022 to account for LURC's 1% beneficial interest in the trust established as part of E-LA's 2022 securitization as compared to a $15 million dollar charge recorded in first quarter 2023 to account for LURC's 1% beneficial interest in the trust established as part of E-LA's 2023 securitization (both items were considered an adjustment and excluded from adjusted earnings) contributed to the increase. |
(m) | The third quarter and year-to-date earnings decreases from lower Parent & Other other income (deductions) were due to changes in the new intercompany investment in preferred stock resulting from E-LA's securitizations (largely offset in Utility), partially offset by higher non-service pension income. |
(n) | The third quarter and year-to-date earnings decreases from higher Utility interest expense were due primarily to higher debt balances as well as a higher weighted-average interest rate. |
(o) | The third quarter and year-to-date earnings decreases from higher Parent & Other interest expense were due primarily to higher interest rates on commercial paper. The year-to-date decrease was partially offset by lower long-term debt balances. |
(p) | The third quarter and year-to-date earnings per share impacts from share effect were due to settlement of equity forward sales in November 2022 under the company's ATM program. |
(q) | The year-to-date earnings decrease from higher Utility taxes other than income taxes was due to higher ad valorem and franchise taxes. |
(r) | The year-to-date earnings decrease from Utility income taxes-other was due largely to a second quarter 2022 $283 million income tax benefit related to securitization financing (this item was considered an adjustment and excluded from adjusted earnings). Other miscellaneous income tax items also contributed to the year-to-date decrease, partially offset by a $129 million income tax benefit recorded in first quarter 2023 related to storm cost securitization financing (this item was considered an adjustment and excluded from adjusted earnings). |
C: Utility operating and financial measures
Appendix C provides a comparison of Utility operating and financial measures.
Appendix C: Utility operating and financial measures | ||||||||
Third quarter and year-to-date 2023 vs. 2022 | ||||||||
Third quarter | Year-to-date | |||||||
2023 | 2022 | % Change | % Weather | 2023 | 2022 | % Change | % Weather | |
GWh sold | ||||||||
Residential | 12,661 | 11,272 | 12.3 | (1.1) | 28,963 | 29,218 | (0.9) | (0.1) |
Commercial | 8,648 | 8,223 | 5.2 | (1.1) | 21,865 | 21,697 | 0.8 | (1.0) |
Governmental | 700 | 702 | (0.3) | (3.2) | 1,887 | 1,928 | (2.1) | (3.2) |
Industrial | 13,781 | 13,926 | (1.0) | (1.0) | 39,823 | 39,903 | (0.2) | (0.2) |
Total retail sales | 35,790 | 34,123 | 4.9 | (1.1) | 92,538 | 92,746 | (0.2) | (0.4) |
Wholesale | 3,916 | 4,809 | (18.6) | 11,589 | 12,371 | (6.3) | ||
Total sales | 39,706 | 38,932 | 2.0 | 104,127 | 105,117 | (0.9) | ||
Number of electric retail customers | ||||||||
Residential | 2,581,652 | 2,561,441 | 0.8 | |||||
Commercial | 370,966 | 366,351 | 1.3 | |||||
Governmental | 18,008 | 18,055 | (0.3) | |||||
Industrial | 50,380 | 50,721 | (0.7) | |||||
Total retail customers | 3,021,006 | 2,996,568 | 0.8 | |||||
Other O&M and nuclear refueling outage exp. per MWh | $19.70 | $20.95 | (6.0) | $20.34 | $21.23 | (4.2) | ||
Calculations may differ due to rounding | |
(s) | The effects of weather were estimated using heating degree days and cooling degree days for the period from certain locations within each jurisdiction and comparing to "normal" weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change. |
For the quarter, excluding the effects of weather, retail sales decreased (1.1) percent. Residential and commercial sales were each (1.1) percent lower. Industrial sales decreased (1.0) percent due largely to lower sales to cogen customers and lower sales to existing large industrial customers primarily in the petrochemicals, pulp and paper, and agricultural chemicals industries; the decreases were partially offset by higher sales to new and expansion customers mainly in the primary metals, industrial gases, and petrochemicals industries and higher sales to small industrial customers.
D: Consolidated financial measures
Appendix D provides comparative financial measures. Financial measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP financial measures.
Appendix D: GAAP and non-GAAP financial measures | |||
Third quarter 2023 vs. 2022 (See Appendix F for reconciliation of GAAP to non-GAAP financial measures) | |||
For 12 months ending September 30 | 2023 | 2022 | Change |
GAAP measure | |||
As-reported ROE | 11.4 % | 10.8 % | 0.6 % |
Non-GAAP financial measure | |||
Adjusted ROE | 11.1 % | 11.7 % | (0.6) % |
As of September 30 ($ in millions, except where noted) | 2023 | 2022 | Change |
GAAP measures | |||
Cash and cash equivalents | 1,520 | 1,003 | 517 |
Available revolver capacity | 4,346 | 4,191 | 154 |
Commercial paper | 1,351 | 1,386 | (35) |
Total debt | 27,619 | 27,677 | (58) |
Securitization debt | 278 | 311 | (33) |
Debt to capital | 66.3 % | 69.0 % | (2.7) % |
Storm escrows | 416 | 325 | 91 |
Non-GAAP financial measures ($ in millions, except where noted) | |||
Debt to capital, excluding securitization debt | 66.1 % | 68.8 % | (2.7) % |
Net debt to net capital, excluding securitization debt | 64.8 % | 68.0 % | (3.2) % |
Gross liquidity | 5,865 | 5,195 | 670 |
Net liquidity | 4,514 | 3,809 | 705 |
Net liquidity, including storm escrows | 4,930 | 4,133 | 797 |
Parent debt to total debt, excluding securitization debt | 19.6 % | 20.3 % | (0.7) % |
FFO to debt, excluding securitization debt | 12.4 % | 12.2 % | 0.2 % |
Calculations may differ due to rounding |
E: Definitions and abbreviations and acronyms
Appendix E-1 provides definitions of certain operating measures, as well as GAAP and non-GAAP financial measures.
Appendix E-1: Definitions | |
Utility operating and financial measures | |
GWh sold | Total number of GWh sold to retail and wholesale customers |
Number of electric retail customers | Average number of electric customers over the period |
Other O&M and refueling outage expense per MWh | Other operation and maintenance expense plus nuclear refueling outage expense per MWh of total sales |
Financial measures – GAAP | |
As-reported ROE | 12-months rolling net income attributable to Entergy Corp. divided by avg. common equity |
Debt to capital | Total debt divided by total capitalization |
Available revolver capacity | Amount of undrawn capacity remaining on corporate and subsidiary revolvers |
Securitization debt | Debt on the balance sheet associated with securitization bonds that is secured by certain future customer collections |
Total debt | Sum of short-term and long-term debt, notes payable, and commercial paper |
Financial measures – non-GAAP | |
Adjusted EPS | As-reported EPS excluding adjustments |
Adjusted ROE | 12-months rolling adjusted net income attributable to Entergy Corp. divided by avg. common equity |
Adjustments | Unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as significant tax items, and other items such as certain costs, expenses, or other specified items. In 2022, the results of the EWC segment were considered an adjustment in light of the company's exit from the merchant nuclear power business. |
Debt to capital, excluding securitization debt | Total debt divided by total capitalization, excluding securitization debt |
FFO | OCF less AFUDC-borrowed funds, working capital items in OCF (receivables, fuel inventory, accounts payable, taxes accrued, interest accrued, deferred fuel costs, and other working capital accounts), and securitization regulatory charges |
FFO to debt, excluding securitization debt | 12-months rolling FFO as a percentage of end of period total debt excluding securitization debt |
Gross liquidity | Sum of cash and available revolver capacity |
Net debt to net capital, excl. securitization debt | Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt |
Net liquidity | Sum of cash and available revolver capacity less commercial paper borrowing |
Net liquidity, including storm escrows | Sum of cash, available revolver capacity, and escrow accounts available for certain storm expenses, less commercial paper borrowing |
Parent debt to total debt, excl. securitization debt | Entergy Corp. debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of consolidated total debt, excluding securitization debt |
Appendix E-2 explains abbreviations and acronyms used in the quarterly earnings materials.
Appendix E-2: Abbreviations and acronyms | |||
ADIT AFUDC AFUDC – ALJ AMI ANO APSC ATM bbl Bcf/D bps CAGR CCGT CCN CCNO CFO COD DCRF DOE DTA E-AR E-LA E-MS E-NO E-TX EEI EPS ESG ETR EWC FERC FFO FIN 48
FRP GAAP GCRR Grand Gulf or GGNS | Accumulated deferred income taxes Allowance for funds used during construction Allowance for borrowed funds used during Administrative law judge Advanced metering infrastructure Arkansas Nuclear One (nuclear) Arkansas Public Service Commission At the market equity issuance program Barrels Billion cubic feet per day Basis points Compound annual growth rate Combined cycle gas turbine Certificate for convenience and necessity Council of the City of New Orleans Cash from operations Commercial operation date Distribution cost recovery factor U.S. Department of Energy Deferred tax asset 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 Entergy Wholesale Commodities Federal Energy Regulatory Commission Funds from operations FASB Interpretation No.48, "Accounting for Formula rate plan U.S. generally accepted accounting principles Generation Cost Recovery Rider Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by SERI | HLBV IPEC LNG LPSC LTM LURC MISO MMBtu Moody's MOU MPSC MTEP NBP NDT NYSE O&M OCAPS OCF OpCo OPEB Other O&M P&O Palisades
PMR PPA PUCT RFP ROE RSP S&P SEC SERI TCRF TRAM UPSA WACC
| Hypothetical liquidation at book value Indian Point Energy Center (nuclear) 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 Memorandum of understanding Mississippi Public Service Commission MISO Transmission Expansion Plan National Balancing Point Nuclear decommissioning trust New York Stock Exchange Operations and maintenance Orange County Advanced Power Station Net cash flow provided by operating activities Utility operating company Other post-employment benefits Other non-fuel operation and maintenance expense Parent & Other Palisades Power Plant (nuclear) (shut down May 2022, sold June 2022) 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. Transmission cost recovery factor Tax reform adjustment mechanism Unit Power Sales Agreement Weighted-average cost of capital |
F: Other GAAP to non-GAAP reconciliations
Appendix F-1, Appendix F-2, and Appendix F-3 provide reconciliations of various non-GAAP financial measures disclosed in this news release to their most comparable GAAP measure.
Appendix F-1: Reconciliation of GAAP to non-GAAP financial measures – ROE | |||
(LTM $ in millions except where noted) | Third quarter | ||
2023 | 2022 | ||
As-reported net income (loss) attributable to Entergy Corporation | (A) | 1,475 | 1,256 |
Adjustments | (B) | 41 | (112) |
Adjusted earnings (non-GAAP) | (A-B) | 1,434 | 1,368 |
Average common equity (average of beginning and ending balances) | (C) | 12,894 | 11,674 |
As-reported ROE | (A/C) | 11.4 % | 10.8 % |
Adjusted ROE (non-GAAP) | [(A-B)/C] | 11.1 % | 11.7 % |
Calculations may differ due to rounding |
Appendix F-2: Reconciliation of GAAP to non-GAAP financial measures – debt ratios excluding securitization debt; gross | |||
($ in millions except where noted) | Third quarter | ||
2023 | 2022 | ||
Total debt | (A) | 27,619 | 27,677 |
Less securitization debt | (B) | 278 | 311 |
Total debt, excluding securitization debt | (C) | 27,341 | 27,366 |
Less cash and cash equivalents | (D) | 1,520 | 1,003 |
Net debt, excluding securitization debt | (E) | 25,821 | 26,362 |
Commercial paper | (F) | 1,351 | 1,386 |
Total capitalization | (G) | 41,657 | 40,091 |
Less securitization debt | (B) | 278 | 311 |
Total capitalization, excluding securitization debt | (H) | 41,379 | 39,780 |
Less cash and cash equivalents | (D) | 1,520 | 1,003 |
Net capital, excluding securitization debt | (I) | 39,859 | 38,776 |
Debt to capital | (A/G) | 66.3 % | 69.0 % |
Debt to capital, excluding securitization debt (non-GAAP) | (C/H) | 66.1 % | 68.8 % |
Net debt to net capital, excluding securitization debt (non-GAAP) | (E/I) | 64.8 % | 68.0 % |
Available revolver capacity | (J) | 4,346 | 4,191 |
Storm escrows | (K) | 416 | 325 |
Gross liquidity (non-GAAP) | (D+J) | 5,865 | 5,195 |
Net liquidity (non-GAAP) | (D+J-F) | 4,514 | 3,809 |
Net liquidity, including storm escrows (non-GAAP) | (D+J-F+K) | 4,930 | 4,133 |
Entergy Corporation notes: | |||
Due September 2025 | 800 | 800 | |
Due September 2026 | 750 | 750 | |
Due June 2028 | 650 | 650 | |
Due June 2030 | 600 | 600 | |
Due June 2031 | 650 | 650 | |
Due June 2050 | 600 | 600 | |
Total Entergy Corporation notes | (L) | 4,050 | 4,050 |
Revolver draw | (M) | - | 150 |
Unamortized debt issuance costs and discounts | (N) | (39) | (44) |
Total parent debt | (F+L+M+N) | 5,363 | 5,542 |
Parent debt to total debt, excluding securitization debt (non-GAAP) | [(F+L+M+N)/C] | 19.6 % | 20.3 % |
Calculations may differ due to rounding |
Appendix F-3: Reconciliation of GAAP to non-GAAP financial measures – FFO to debt, excluding securitization debt | |||
($ in millions except where noted) | Third quarter | ||
2023 | 2022 | ||
Total debt | (A) | 27,619 | 27,677 |
Less securitization debt | (B) | 278 | 311 |
Total debt, excluding securitization debt | (C) | 27,341 | 27,366 |
Net cash flow provided by operating activities, LTM | (D)
| 4,007 | 2,099 |
AFUDC – borrowed funds, LTM | (E) | (39) | (28) |
Working capital items in net cash flow provided by operating activities, LTM: | |||
Receivables | (6) | (208) | |
Fuel inventory | (47) | (9) | |
Accounts payable | (346) | (153) | |
Taxes accrued | 23 | 49 | |
Interest accrued | 32 | (2) | |
Deferred fuel costs | 1,048 | (931) | |
Other working capital accounts | (170) | (84) | |
Securitization regulatory charges, LTM | 32 | 67 | |
Total | (F) | 566 | (1,271) |
FFO, LTM (non-GAAP) | (G)=(D+E-F) | 3,402 | 3,342 |
FFO to debt, excluding securitization debt (non-GAAP) | (G/C) | 12.4 % | 12.2 % |
Calculations may differ due to rounding |
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SOURCE Entergy Corporation
