Entergy Reports 2020 Financial Results, Initiates 2021 Earnings Guidance

NEW ORLEANS, Feb. 24, 2021 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported fourth quarter 2020 earnings per share of $1.93 on an as-reported basis and 71 cents on an adjusted basis (non-GAAP). For the full year, the company reported 2020 earnings per share of $6.90 on an as-reported basis and $5.66 on an adjusted basis.

"We are reporting strong results for another very successful year. Our adjusted earnings per share were in the top half of our guidance range as we exceeded our $100 million cost savings target for the year," said Entergy Chairman and Chief Executive Officer Leo Denault. "We've built a culture of resiliency, and we couldn't be prouder of our employees who successfully delivered on our commitments in the face of extraordinary challenges. Our strong 2020 results reinforce our confidence in our continued success in the future."

Business highlights included the following:

    --  Montgomery County Power Station was placed in service on January 1,
        2021, ahead of schedule.
    --  The 20 MW New Orleans Solar Station was placed in service.
    --  Entergy Louisiana completed the purchase of the Washington Parish Energy
        Center.
    --  The NRC approved the license transfer of Indian Point to Holtec.
    --  Edison Electric Institute awarded five emergency response awards to
        Entergy.
    --  Entergy was named to one of the Dow Jones Sustainability Indices for the
        19th consecutive year.
    --  Entergy raised its dividend for the sixth consecutive year.



       Consolidated Earnings (GAAP and Non-GAAP Measures)


        Fourth Quarter and Full Year 2020 vs. 2019 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of
         adjustments)

    ---

                                                           Fourth Quarter                       Full Year

                                                                        ---

                                           2020       2019            
            Change            2020       2019        
            Change

                                                                                                                                   ---


       (After-tax, $ in millions)


        As-reported
         earnings                           388        385                                3      1,388      1,241                       147


        Less adjustments                    246        248                              (1)       250        177                        73

                                                                                                                                   ---

        Adjusted
         earnings (non-
         GAAP)                              142        137                                4      1,138      1,064                        74


                     Estimated
                      weather in
                      billed sales         (22)        45                             (66)      (75)        46                     (120)





       (After-tax, per share in $)


        As-reported
         earnings                          1.93       1.92                             0.01       6.90       6.30                      0.60


        Less adjustments                   1.22       1.24                           (0.02)      1.24       0.90                      0.34

                                                                                                                                   ---

        Adjusted
         earnings (non-
         GAAP)                             0.71       0.68                             0.03       5.66       5.40                      0.26


                     Estimated
                      weather in
                      billed sales       (0.11)      0.22                           (0.33)    (0.37)      0.23                    (0.60)

               Calculations may differ due to
                rounding

Consolidated Results

For fourth quarter 2020, the company reported earnings of $388 million, or $1.93 per share, on an as-reported basis, and earnings of $142 million, or 71 cents per share, on an adjusted basis. This compared to fourth quarter 2019 earnings of $385 million, or $1.92 per share, on an as-reported basis, and earnings of $137 million, or 68 cents per share, on an adjusted basis.

For full year 2020, the company reported earnings of $1,388 million, or $6.90 per share, on an as-reported basis, and earnings of $1,138 million, or $5.66 per share, on an adjusted basis. This compared to 2019 earnings of $1,241 million, or $6.30 per share, on an as-reported basis, and earnings of $1,064 million, or $5.40 per share, on an adjusted basis.

Summary discussions of full year results by business are below. Additional details, including information on OCF by business, are provided in Appendix A. An analysis of quarterly and full year variances by business is provided in Appendix B.

Full Year Business Segment Results

Utility

For full year 2020, the Utility business reported earnings attributable to Entergy Corporation of $1,800 million, or $8.95 per share, on an as-reported basis, and earnings of $1,424 million, or $7.08 per share, on an adjusted basis. This compared to full year 2019 earnings of $1,411 million, or $7.16 per share, on an as-reported basis, and $1,369 million, or $6.95 per share, on an adjusted basis. Drivers for the full year included:

    --  net effect of regulatory actions across the operating companies;
    --  lower other O&M; and
    --  a lower effective income tax rate, net of customer sharing (some items
        considered adjustments and excluded from adjusted earnings).

These drivers were partially offset by:

    --  lower retail sales volume, including the effects of COVID-19, weather,
        and storms;
    --  higher depreciation and interest expenses;
    --  lower AFUDC due to completion of major construction projects; and
    --  regulatory provisions at E-AR and SERI (the provision at SERI was
        considered an adjustment and excluded from adjusted earnings).

On a per share basis, full year 2020 results reflected higher common shares outstanding.

Appendix C contains additional details on Utility financial and operating measures.

Parent & Other

For full year 2020, Parent & Other reported a loss attributable to Entergy Corporation of $(347 million), or $(1.73) per share, on an as-reported basis, and a loss of $(286 million), or $(1.42) per share, on an adjusted basis. This compared to a full year 2019 loss of $(316 million), or $(1.60) per share, on an as-reported basis, and a loss of $(305 million), or $(1.55) per share on an adjusted basis. A primary driver for the full year was income tax expense (some items considered adjustments and excluded from adjusted earnings). This was partially offset by the timing of a charitable contribution and interest expense.

On a per share basis, full year 2020 results reflected higher common shares outstanding.

Entergy Wholesale Commodities

For full year 2020, EWC reported a loss attributable to Entergy Corporation of
$(65 million), or (32) cents per share, on an as-reported basis. This compared to full year 2019 earnings attributable to Entergy Corporation of $147 million, or 74 cents per share, on an as-reported basis. Drivers for the year included:

    --  lower revenue primarily due to the shutdown of Indian Point 2 and
        Pilgrim;
    --  unfavorable income tax items in 2020 as compared to 2019; and
    --  lower gains on decommissioning trust funds.

These drivers were partially offset by:

    --  lower asset write-offs, impairments, and related charges as compared to
        a year ago; and
    --  lower operating expenses due to the shutdown of Indian Point 2 and
        Pilgrim.

On a per share basis, full year 2020 results reflected higher common shares outstanding.

Appendix D contains additional details on EWC financial and operating measures, including reconciliation for non-GAAP EWC adjusted EBITDA.

Earnings Per Share Guidance

Entergy initiated its 2021 adjusted EPS guidance range of $5.80 to $6.10. See webcast presentation for additional details.

The company has provided 2021 earnings guidance with regard to the non-GAAP measure of Entergy adjusted EPS. This measure excludes from the corresponding GAAP financial measure the effect of adjustments as described below under "Non-GAAP Financial Measures." The company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot predict and quantify with a reasonable degree of confidence all of the adjustments that may occur during the period. One such adjustment will be the exclusion of EWC earnings from Entergy adjusted EPS. We currently estimate that the contribution of EWC to Entergy's as-reported EPS will be approximately $(1.45) in 2021. These estimates are subject to substantial uncertainty due to, among other things, the potential effects of exiting the EWC business.

Earnings Teleconference

A teleconference will be held at 10:00 a.m. Central Time on Wednesday, February 24, 2021, 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 844-309-6569, conference ID 6726389, no more than 15 minutes prior to the start of the call. The webcast slide presentation is also posted to Entergy's website concurrent with this news release, which was issued before market open on the day of the call. 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 March 3, 2021, by dialing 855-859-2056, conference ID 6726389.

Entergy Corporation is an integrated energy company engaged in electric power production, transmission and retail distribution operations. Entergy delivers electricity to 3 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy owns and operates one of the cleanest large-scale U.S. power generating fleets with approximately 30,000 megawatts of electric generating capacity, including 8,000 megawatts of nuclear power. Headquartered in New Orleans, Louisiana, Entergy has annual revenues of $10 billion and 13,400 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/investor_relations.

Entergy maintains a web page as part of its Investor Relations website, entitled Regulatory and Other Information, which provides investors with key updates of certain regulatory proceedings and important milestones on the execution of its strategy. While some of this information may be considered material information, investors should not rely exclusively on this page for all relevant company information.

For definitions of certain operating measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the earnings release materials, see Appendix F.

Non-GAAP Financial Measures

This news release contains non-GAAP financial measures, which are generally numerical measures of a company's performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Entergy has provided quantitative reconciliations within this news release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

Entergy reports earnings using the non-GAAP measure of Entergy adjusted earnings, which excludes the effect of certain "adjustments," including the removal of the Entergy Wholesale Commodities segment in light of the company's decision to exit the merchant power business. Adjustments are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as the results of the EWC segment, significant tax items, and other items such as certain costs, expenses, or other specified items. In addition to reporting GAAP consolidated earnings on a per share basis, Entergy reports its adjusted earnings on a per share basis. These per share measures represent the applicable earnings amount divided by the diluted average number of common shares outstanding for the period.

Management uses the non-GAAP financial measures of adjusted earnings and adjusted earnings per share for, among other things, financial planning and analysis; reporting financial results to the board of directors, employees, stockholders, analysts, and investors; and internal evaluation of financial performance. Entergy believes that these non-GAAP financial measures provide useful information to investors in evaluating the ongoing results of Entergy's business, comparing period to period results, and comparing Entergy's financial performance to the financial performance of other companies in the utility sector.

Other non-GAAP measures, including adjusted EBITDA; adjusted ROE; adjusted ROE, excluding affiliate preferred; adjusted ROIC; gross liquidity; net liquidity; net liquidity, including storm escrows; debt to capital, excluding securitization debt; net debt to net capital, excluding securitization debt; parent debt to total debt, excluding securitization debt; FFO to debt, excluding securitization debt; and FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC, are measures Entergy uses internally for management and board discussions and to gauge the overall strength of its business. Entergy believes the above data provides useful information to investors in evaluating Entergy's ongoing financial results and flexibility, and assists investors in comparing Entergy's credit and liquidity to the credit and liquidity of others in the utility sector. In addition, other financial measures including net income (or earnings) adjusted for preferred dividends and tax-effected interest expense and FFO are included on both an adjusted and an as-reported basis. In each case, the metrics defined as "adjusted" (other than EWC's adjusted EBITDA) exclude the effect of adjustments as defined above. EWC's adjusted EBITDA represents EWC's earnings before interest, taxes, and depreciation and amortization, and also excludes decommissioning expense.

These non-GAAP financial measures reflect an additional way of viewing aspects of Entergy's operations that, when viewed with Entergy's GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting Entergy's business. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. Investors are strongly encouraged to review Entergy's consolidated financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Although certain of these measures are intended to assist investors in comparing Entergy's performance to other companies in the utility sector, non-GAAP financial measures are not standardized; therefore, it might not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.

Cautionary Note Regarding Forward-Looking Statements

In this news release, and from time to time, Entergy Corporation makes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, among other things, statements regarding Entergy's 2021 earnings guidance; its current financial and operational outlooks; 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 anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with 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 fund values or earnings or in the timing or cost of decommissioning Entergy's nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with executing on business strategies, including strategic transactions that Entergy or its subsidiaries may undertake and the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of 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; (i) the effects of changes in commodity markets, capital markets, or economic conditions; (j) impacts from a terrorist attack, cybersecurity threats, data security breaches, or other attempts to disrupt Entergy's business or operations, and/or other catastrophic events; (k) the direct and indirect impacts of the COVID-19 pandemic on Entergy and its customers; and (l) the effects of technological change, including the costs, pace of development and commercialization of new and emerging technologies.

Fourth Quarter 2020 Earnings Release Appendices and Financial Statements

Appendices

A: Consolidated Results and Adjustments
B: Earnings Variance Analysis
C: Utility Financial and Operating Measures
D: EWC Financial and Operating Measures
E: Consolidated Financial Measures
F: Definitions and Abbreviations and Acronyms
G: Other GAAP to Non-GAAP Reconciliations

Financial Statements

Consolidating Balance Sheets
Consolidating Income Statements
Consolidated Cash Flow Statements

A: Consolidated Results and Adjustments
Appendix A-1 provides a comparative summary of consolidated earnings, including a reconciliation of as-reported earnings (GAAP) to adjusted earnings (non-GAAP).



       Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures


       Fourth Quarter and Full Year 2020 vs. 2019 (See Appendix A-3 and Appendix A-4 for details on adjustments)

    ---

                                                                                    Fourth Quarter                          Full Year

                                                                                                 ---

                                                               2020       2019             
              Change            2020       2019  
       Change

                                                                                                                                              ---


       (After-tax, $ in millions)


                     As-reported earnings (loss)



       Utility                                                 584        271                                  313     1,800      1,411           389


        Parent & Other                                        (127)     (103)                                (24)    (347)     (316)         (31)



       EWC                                                    (69)       217                                (286)     (65)       147         (212)

                                                                                                                                              ---

        Consolidated                                            388        385                                    3     1,388      1,241           147





       
                Less adjustments



       Utility                                                 377         41                                  335       377         41           335


        Parent & Other                                         (61)      (11)                                (51)     (61)      (11)         (51)



       EWC                                                    (69)       217                                (286)     (65)       147         (212)

                                                                                                                                              ---

        Consolidated                                            246        248                                  (1)      250        177            73




                     Adjusted earnings (loss) (non-GAAP)



       Utility                                                 207        229                                 (22)    1,424      1,369            54


        Parent & Other                                         (66)      (92)                                  26     (286)     (305)           20



       EWC                                                                                                                                     -



        Consolidated                                            142        137                                    4     1,138      1,064            74


                     Estimated weather in
                      billed sales                             (22)        45                                 (66)     (75)        46         (120)




        Diluted average
         number of common
         shares outstanding
         (in millions)                                          201        201                                           201        197




        (After-tax, per share in $) (a)


                     As-reported earnings (loss)



       Utility                                                2.90       1.35                                 1.55      8.95       7.16          1.79


        Parent & Other                                       (0.63)    (0.51)                              (0.12)   (1.73)    (1.60)       (0.13)



       EWC                                                  (0.34)      1.08                               (1.42)   (0.32)      0.74        (1.06)


        Consolidated                                           1.93       1.92                                 0.01      6.90       6.30          0.60





       
                Less adjustments



       Utility                                                1.87       0.21                                 1.66      1.87       0.21          1.66


        Parent & Other                                       (0.31)    (0.05)                              (0.26)   (0.31)    (0.05)       (0.26)



       EWC                                                  (0.34)      1.08                               (1.42)   (0.32)      0.74        (1.06)

                                                                                                                                              ---

        Consolidated                                           1.22       1.24                               (0.02)     1.24       0.90          0.34




                     Adjusted earnings (loss) (non-GAAP)



       Utility                                                1.03       1.14                               (0.11)     7.08       6.95          0.13


        Parent & Other                                       (0.32)    (0.46)                                0.14    (1.42)    (1.55)         0.13



       EWC                                                                                                                                     -



        Consolidated                                           0.71       0.68                                 0.03      5.66       5.40          0.26


                     Estimated weather in
                      billed sales                           (0.11)      0.22                               (0.33)   (0.37)      0.23        (0.60)


              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 provides a comparative summary of OCF, by business.



       Appendix A-2: Consolidated Operating Cash Flow



       Fourth Quarter and Full Year 2020 vs. 2019

    ---


       ($ in millions)


                                                        Fourth Quarter                     Full Year

                                                                  ---

                                        2020       2019        
           Change          2020       2019 
     Change

                                                                                                          ---


       Utility                         (95)       677                        (772)  2,276      2,974      (698)


        Parent & Other                   508       (21)                         529     296      (237)       534



       EWC                             (93)        43                        (136)    118         80         37

                                                                                                          ---

        Consolidated                     320        699                        (379)  2,690      2,817      (127)

               Calculations may differ due to
                rounding

OCF decreased quarter-over-quarter due primarily to non-capital storm costs, lower collections due to COVID-19, unfavorable weather, and decreased collections for fuel and purchased power cost recovery at the Utility. Higher severance and retention payments and higher nuclear refueling outage spending at EWC also contributed. Lower pension funding partially offset the quarterly decrease.

OCF decreased year-over-year due primarily to non-capital storm costs, decreased collections for fuel and purchased power cost recovery, lower collections due to COVID-19, and unfavorable weather. The decrease was partially offset by a lower amount of unprotected excess ADIT returned to customers, lower severance and retention payments at EWC, lower pension funding, and higher DOE proceeds.

For both the quarter and the full year, intercompany income tax payments contributed to the line of business variances but were immaterial at the consolidated level.

Appendix A-3 and Appendix A-4 list 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-3: Adjustments by Driver (shown as positive/(negative) impact on earnings or EPS)



       Fourth Quarter and Full Year 2020 vs. 2019

    ---

                                                                            Fourth Quarter                          Full Year

                                                                                         ---

                                                       2020       2019             
              Change            2020       2019  
       Change

                                                                                                                                      ---



        (Pre-tax except for income taxes,
         preferred dividend

        requirements, and totals; $ in millions)



       
                Utility


        SERI regulatory
         liability for
         potential refund for
         rate base reduction
         retroactive to 2015                           (25)                                          (25)     (25)                   (25)


        Income tax effect on
         Utility adjustment
         above                                            6                                              6         6                       6


        2014 /2015 IRS
         settlement - E-LA
         business combination                           396                                            396       396                     396


        Reversal of income tax
         valuation allowance                                       41                                 (41)                 41          (41)



        Total Utility                                   377         41                                  335       377         41           335



       
                Parent & Other


        2014 /2015 IRS
         settlement - E-LA
         business combination                          (61)                                          (61)     (61)                   (61)


        Income tax valuation
         allowance for
         interest
         deductibility                                           (11)                                  11                (11)           11



        Total Parent & Other                           (61)      (11)                                (51)     (61)      (11)         (51)



       
                EWC


        Income before income
         taxes                                           30         31                                  (0)       42       (12)           55


        Income taxes                                   (99)       187                                (286)    (105)       161         (266)


        Preferred dividend
         requirements                                   (1)       (1)                                          (2)       (2)



       Total EWC                                      (69)       217                                (286)     (65)       147         (212)




        Total adjustments                               246        248                                  (1)      250        177            73




        (After-tax, per share in $) (b)



       
                Utility


        SERI regulatory
         liability for
         potential refund for
         rate base reduction
         retroactive to 2015                         (0.09)                                        (0.09)   (0.09)                 (0.09)


        2014 /2015 IRS
         settlement - E-LA
         business combination                          1.96                                           1.96      1.96                    1.96


        Reversal of income tax
         valuation allowance                                     0.21                               (0.21)               0.21        (0.21)



        Total Utility                                  1.87       0.21                                 1.66      1.87       0.21          1.66



       
                Parent & Other


        2014 /2015 IRS
         settlement - E-LA
         business combination                        (0.31)                                        (0.31)   (0.31)                 (0.31)


        Income tax valuation
         allowance for
         interest
         deductibility                                         (0.05)                                0.05              (0.05)         0.05



        Total Parent & Other                         (0.31)    (0.05)                              (0.26)   (0.31)    (0.05)       (0.26)



       
                EWC



       Total EWC                                    (0.34)      1.08                               (1.42)   (0.32)      0.74        (1.06)




        Total adjustments                              1.22       1.24                               (0.02)     1.24       0.90          0.34


              Calculations may differ due to rounding



              (b)                Per share amounts are calculated by
                                   dividing the corresponding
                                   earnings (loss) by the diluted
                                   average number of common shares
                                   outstanding for the period.



       Appendix A-4: Adjustments by Income Statement Line Item (shown as positive/(negative) impact on earnings)



       Fourth Quarter and Full Year 2020 vs. 2019

    ---


       (Pre-tax except for income taxes, preferred dividend requirements, and totals; $ in millions)


                                                                                       Fourth Quarter                         Full Year

                                                                                                 ---

                                                                  2020       2019             
              Change           2020       2019  
     Change

                                                                                                                                              ---


       
                Utility



       Other regulatory charges                                  (25)                                          (25)    (25)                 (25)



       Income taxes                                               402         41                                  361      402         41         361

                                                                                                                                              ---


         Total Utility                                            377         41                                  335      377         41         335



       
                Parent & Other



       Income taxes                                              (61)      (11)                                (51)    (61)      (11)       (51)

                                                                                                                                              ---


         Total Parent & Other                                    (61)      (11)                                (51)    (61)      (11)       (51)



       
                EWC



       Operating revenues                                         196        271                                 (75)     943      1,295       (352)



       Fuel and fuel-related expenses                            (16)      (22)                                   6     (67)      (98)         31



       Purchased power                                           (18)      (10)                                 (8)    (68)      (59)        (9)



       Nuclear refueling outage expense                          (11)      (12)                                   2     (45)      (49)          3



       Other O&M                                                (115)     (165)                                  50    (500)     (678)        178



       Asset write-off and impairments                           (10)       (2)                                 (9)    (27)     (290)        263



       Decommissioning expense                                   (53)      (49)                                 (3)   (205)     (237)         32



       Taxes other than income taxes                              (9)      (15)                                   6     (53)      (60)          7



       Depreciation/amortization exp.                            (21)      (34)                                  13    (102)     (148)         46



       Other income (deductions)-other                             92         74                                   18      189        340       (152)



       Interest exp. and other charges                            (5)       (5)                                        (22)      (29)          7



       Income taxes                                              (99)       187                                (286)   (105)       161       (266)



       Preferred dividend requirements                            (1)       (1)                                         (2)       (2)

                                                                                                                                              ---


       Total EWC                                                 (69)       217                                (286)    (65)       147       (212)





       Total adjustments                                          246        248                                  (1)     250        177          73

               Calculations may differ due to
                rounding

B: Earnings Variance Analysis
Appendix B-1 and Appendix B-2 provide details of current quarter and full year 2020 versus 2019 as-reported and adjusted earnings variance analysis for Utility, Parent & Other, and EWC.



     Appendix B-1: As-Reported and Adjusted Earnings Variance Analysis (c), (d)



     Fourth Quarter 2020 vs. 2019



     (After-tax, per share in $)


                                                             
              Utility                  Parent & Other                        
       EWC                  Consolidated


                                                               
              As-      
     Adjusted                   
             As-        
       Adjusted             
          As-                     
        As-           
     Adjusted
                                                                  Reported                                        Reported                                  
         Reported                 
       Reported



     2019 earnings (loss)                                                    1.35          1.14                              (0.51)           (0.46)                      1.08                          1.92               0.68



     Operating revenue less:                                               (0.20)       (0.11)  (e)                                                                   (0.31)     (f)               (0.51)            (0.11)


       Fuel, fuel-related expenses and


       gas purchased for resale,


       Purchased power, and


       Regulatory charges (credits)



     Nuclear refueling outage expense                                        0.02          0.02                                                                           0.01                          0.03               0.02



     Other O&M                                                             (0.10)       (0.10)  (g)                          0.01              0.01                       0.20      (h)                 0.11             (0.09)



     Asset write-offs and impairments                                           -                                                                                     (0.03)                       (0.03)



     Decommissioning expense                                               (0.01)       (0.01)                                                                        (0.01)                       (0.02)            (0.01)



     Taxes other than income taxes                                         (0.01)       (0.01)                                                                          0.02                          0.01             (0.01)



     Depreciation/amortization exp.                                        (0.15)       (0.15)  (i)                                                                     0.05      (j)               (0.10)            (0.15)



     Other income (deductions)-other                                         0.07          0.07   (k)                          0.09              0.09  (l)                  0.07      (m)                 0.23               0.16



     Interest exp. and other charges                                       (0.04)       (0.04)                               0.02              0.02                                                  (0.02)            (0.02)



     Income taxes-other                                                      1.98          0.23   (n)                        (0.24)             0.02  (o)                (1.42)     (p)                 0.32               0.25



     Preferred dividend requirements                                            -



     Share effect                                                          (0.01)       (0.01)                                                                                                     (0.01)            (0.01)




     2020 earnings (loss)                                                    2.90          1.03                              (0.63)           (0.32)                    (0.34)                         1.93               0.71



     Appendix B-2: As-Reported and Adjusted Earnings Variance Analysis (c), (d)



     Full Year 2020 vs. 2019



     (After-tax, per share in $)


                                                             
              Utility                  Parent & Other                        
       EWC                 Consolidated


                                                               
              As-      
     Adjusted                   
             As-        
       Adjusted            
          As-                    
        As-           Adjusted
                                                                  Reported                                        Reported                                 
         Reported                
       Reported



     2019 earnings (loss)                                                    7.16          6.95                              (1.60)           (1.55)                     0.74                         6.30           5.40



     Operating revenue less:                                                 0.31          0.40   (e)                                                                  (1.32)    (f)               (1.01)          0.40


       Fuel, fuel-related expenses and


       gas purchased for resale,


       Purchased power, and


       Regulatory charges (credits)



     Nuclear refueling outage expense                                        0.07          0.07   (q)                                                                    0.01                         0.08           0.07



     Other O&M                                                               0.30          0.30   (g)                          0.03              0.03                      0.71     (h)                 1.04           0.33



     Asset write-offs and impairments                                           -                                                                                      1.06     (r)                 1.06



     Decommissioning expense                                               (0.04)       (0.04)                                                                         0.12     (s)                 0.08         (0.04)



     Taxes other than income taxes                                         (0.06)       (0.06)  (t)                                                                    0.03                       (0.03)        (0.06)



     Depreciation/amortization exp.                                        (0.68)       (0.68)  (i)                                                                    0.19     (j)               (0.49)        (0.68)



     Other income (deductions)-other                                       (0.09)       (0.09)  (k)                          0.15              0.15   (l)              (0.61)    (m)               (0.55)          0.06



     Interest exp. and other charges                                       (0.22)       (0.22)  (u)                          0.03              0.03                      0.03                       (0.16)        (0.19)



     Income taxes-other                                                      2.40          0.65   (n)                        (0.37)           (0.11)  (o)              (1.29)    (p)                 0.74           0.54



     Preferred dividend requirements                                       (0.01)       (0.01)                                                                                                   (0.01)        (0.01)



     Share effect                                                          (0.19)       (0.19)  (v)                          0.03              0.03                      0.01                       (0.15)        (0.16)




     2020 earnings (loss)                                                    8.95          7.08                              (1.73)           (1.42)                   (0.32)                        6.90           5.66

      Calculations may differ due to rounding





     (c)                   Utility operating revenue /regulatory
                             charges, Utility other O&M, and Utility
                             income taxes-other exclude $13 million,
                 $- million, and $13 million respectively in fourth quarter 2020 and $52 million, $3 million, and $55 million respectively in fourth quarter 2019 for the return of unprotected excess ADIT to customers (net effect is neutral to earnings). On a full year basis, Utility operating revenue / regulatory charges, Utility other O&M, and Utility income taxes-other exclude
                                                                                                                                                                                                                       $74 million, $- million, and $74 million respectively in 2020 and $268 million, $6 million, and $274 million respectively in 2019 (net effect is neutral to earnings).



     (d)                   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.



     (e)                   The fourth quarter and full year earnings
                             variances were primarily driven by E-AR's
                             FRP; E-LA's FRP, including recovery of
                             LCPS; E-MS's FRP, vegetation rider, and
                             recovery of Choctaw; and E-TX's TCRF and
                             DCRF. The variance also reflected three
                             regulatory charges: first, a regulatory
                             provision for E-AR's FRP to account for
                             the December 2020 APSC order; second, a
                             regulatory liability for tax sharing with
                             E-LA customers (partially offsets the
                             hurricanes Katrina and Rita Act 55 income
                             tax item discussed in footnote n); and
                             third, a regulatory provision for a
                             potential refund to reflect lower rate
                             base retroactive to 2015 at SERI
                             (classified as an adjustment). The
                             variances also reflected lower volume/
                             weather, including the effects of COVID-
                             19 and hurricanes, as well as E-NO's rate
                             case. The full year variance also
                             reflected recovery of the J. Wayne Leonard
                             Power Station, a first quarter 2019
                             regulatory reserve at E-AR, and a
                             regulatory liability for tax sharing with
                             E-LA customers (partially offsets the
                             Hurricane Isaac Act 55 income tax item
                             discussed in footnote n).



     (f)                   The fourth quarter and full year earnings
                             decreases were due largely to lower
                             revenues from the shutdown of Indian Point
                             2 in April 2020. The full year variance
                             also reflected lower revenues from the
                             shutdown of Pilgrim in May 2019.



     (g)                   The fourth quarter earnings decrease from
                             higher Utility other O&M was due primarily
                             to higher non-nuclear generation expenses
                             related to timing and scope of outages and
                             plant costs for LCPS and Choctaw, and
                             higher transmission costs, partially offset
                             by lower compensation and benefits costs
                             and a write-off of scrubbers at White
                             Bluff in 2019. In addition to the items
                             mentioned above, the full year earnings
                             increase was due primarily to lower nuclear
                             generation expenses, lower contract costs
                             related to new customer initiatives, lower
                             non-nuclear generation expenses, higher
                             nuclear insurance refunds, and a decrease
                             in loss provisions. These were partially
                             offset by higher compensation and benefits
                             costs, primarily pension.



     (h)                   The fourth quarter and full year earnings
                             increases from lower EWC other O&M were
                             due largely to the shutdown of Indian
                             Point 2 in April 2020. The full year
                             variance also reflected the shutdown of
                             Pilgrim in May 2019, as well as a decrease
                             in severance and retention expense.



     (i)                   The fourth quarter and full year earnings
                             decreases from higher Utility depreciation
                             expense were due primarily to higher plant
                             in service, including LCPS and Choctaw.
                             The full year variance also reflected the
                             J. Wayne Leonard Power Station being
                             placed in service in second quarter 2019,
                             as well as higher depreciation rates at E-
                             MS.



     (j)                   The fourth quarter and full year earnings
                             increases from lower EWC depreciation
                             expense were due primarily to the shutdown
                             of Indian Point 2 in April 2020. The full
                             year variance also reflected the shutdown
                             of Pilgrim in May 2019.



     (k)                   The fourth quarter earnings increase from
                             higher Utility other income
                             (deductions)-other was due largely to
                             changes in decommissioning trust fund
                             returns (based on regulatory treatment,
                             decommissioning-related variances are
                             largely earnings neutral). The full year
                             earnings decrease from lower Utility other
                             income (deductions)-other was due
                             primarily to lower AFUDC as a result of
                             lower construction work in progress in
                             2020 and higher non-service pension and
                             OPEB costs, partially offset by changes in
                             decommissioning trust fund returns (based
                             on regulatory treatment, decommissioning-
                             related variances are largely earnings
                             neutral).



     (l)                   The fourth quarter and full year earnings
                             increase from Parent & Other other income
                             (deductions)-other was due primarily to
                             the timing of a charitable contribution
                             and intercompany interest.



     (m)                   The fourth quarter earnings increase from
                             higher EWC other income (deductions)-other
                             was due largely to performance of nuclear
                             decommissioning trust fund investments in
                             2020 as compared to 2019. The full year
                             earnings decrease was due largely to
                             performance of nuclear decommissioning
                             trust fund investments in 2020 as compared
                             to 2019, as well as the repayment of an
                             intercompany loan, partially offset by a
                             $16 million pension settlement charge in
                             third quarter 2019 related to the exit of
                             the EWC business.



     (n)                   The fourth quarter and full year earnings
                             increases from Utility income taxes-other
                             reflected two fourth quarter 2020 items
                             and one fourth quarter 2019 item. In
                             fourth quarter 2020, a settlement of the
                             2014 /2015 IRS audit resulted in a $396
                             million tax benefit (classified as an
                             adjustment), as well as a $31 million tax
                             benefit related to Act 55 financing of
                             Hurricanes Katrina and Rita costs (partly
                             offset by customer sharing, recorded as a
                             regulatory charge discussed in footnote
                             e). In fourth quarter 2019, a $41 million
                             income tax item was generated through the
                             reversal of a valuation allowance
                             generated as part of the 2018 internal
                             restructuring (classified as an
                             adjustment). The full year earnings
                             increase also reflected two first quarter
                             2020 items. First, a $55 million tax
                             benefit was recorded as a result of an IRS
                             settlement related to Act 55 financing of
                             Hurricane Isaac costs (partly offset by
                             customer sharing, recorded as a regulatory
                             charge discussed in footnote e); and
                             second, an annual tax accrual related to
                             stock-based compensation resulted in an
                             income tax benefit of $22 million, $20
                             million greater than first quarter 2019.
                             Additional annual true-ups totaling $19
                             million also contributed to the variance.



     (o)                   The fourth quarter and full year earnings
                             decreases from Parent & Other income
                             taxes-other reflected one fourth quarter
                             2020 item and one fourth quarter 2019
                             item. In fourth quarter 2020, a settlement
                             of the 2014 /2015 IRS audit resulted in
                             $61 million of tax expense (classified as
                             an adjustment). In fourth quarter 2019, a
                             valuation allowance recorded on the
                             expected interest limitation carryover
                             resulted in $11 million of tax expense
                             related to tax year 2018 (classified as an
                             adjustment) and approximately $11 million
                             of tax expense related to tax year 2019.
                             The full year variance also reflected $23
                             million of income tax expense recorded in
                             first quarter 2020 as a result of the IRS
                             settlement related to the Hurricane Isaac
                             Act 55 financing (discussed in footnote
                             n).



     (p)                   The fourth quarter and full year earnings
                             decreases from EWC income taxes-other
                             reflected one fourth quarter 2020 item and
                             three fourth quarter 2019 items. In fourth
                             quarter 2020, a settlement of the 2014 /
                             2015 IRS audit resulted in $104 million of
                             tax expense. In fourth quarter 2019,
                             first, a restructuring within the EWC
                             business resulted in a reduction in income
                             tax expense of $156 million. Second, a
                             donation to the State University of New
                             York triggered the recognition of an
                             associated tax deduction, resulting in a
                             decrease to tax expense of $19 million.
                             Third, an EWC subsidiary recognized a
                             reduction in tax expense of $18 million.
                             The full year earnings decrease was partly
                             offset by a first quarter 2019 accrual of
                             $29 million of tax expense, which resulted
                             from the sale of Vermont Yankee in January
                             2019.



     (q)                   The full year earnings increase from lower
                             Utility nuclear refueling outage expense
                             was due to decreased amortization of ANO
                             Unit 2 refueling outage costs.



     (r)                   The full year earnings increase from lower
                             EWC asset write-offs and impairments were
                             due primarily to a $191 million loss (pre-
                             tax) on the sale of Pilgrim in third
                             quarter 2019 and higher impairment charges
                             in first quarter 2019, largely refueling
                             outage costs at Indian Point 3.



     (s)                   The full year earnings increase from lower
                             EWC decommissioning expense was due to the
                             sale of Pilgrim in 2019.



     (t)                   The full year earnings decrease from higher
                             Utility taxes other than income taxes was
                             due primarily to an increase in ad valorem
                             taxes at E-LA and E-AR.



     (u)                   The full year earnings decrease from higher
                             Utility interest expense was due primarily
                             to higher debt balances at E-TX,
                 E-LA, E-AR, and E-MS.



     (v)                   The earnings per share impacts from share
                             effect were due to settlement of the
                             equity forward (8.4 million shares settled
                             in May 2019).


                        Utility as-reported operating revenue less fuel, fuel-
                                                related
            expenses and gas purchased for resale; purchased power;
              and regulatory charges (credits) variance analysis

                 
              
                2020 vs. 2019 ($ EPS)

                                      ---

                                            
              4Q         
              FY

                                                                               ---

        Volume/weather                                (0.07)                (0.61)


        Retail electric
         price                                          0.30                   1.39


        Reg. provision at E-
         AR in 4Q20                                   (0.16)                (0.16)


        Reg. provision at E-
         AR in 1Q19                                        -                  0.05


        Reg. provision at
         SERI (classified as
         an adjustment)                               (0.09)                (0.09)


        Reg. liability for
         tax sharing                                  (0.12)                (0.22)



       Other                                         (0.06)                (0.05)




       Total                                         (0.20)                  0.31

    ---


C: Utility Financial and Operating Measures
Appendix C-1 provides comparative summaries of Utility operating and financial measures.







       Appendix C-1: Utility Operating and Financial Measures



       Fourth Quarter and Full Year 2020 vs. 2019

    ---

                                                 
              
                Fourth Quarter   
              
               Full Year



                                                           2020              2019                                        
              % Weather        2020     2019
                                                                               %                                                                                %                
            % Weather
                                                                                                 Change                      Adjusted                              Change          Adjusted
                                                                                                                                (w)                                                   (w)



                                                 
              GWh billed


                                                 
              Residential                                     7,654           8,344         (8.3)       3.4   35,173        36,094       (2.6)           2.7


                                                 
              Commercial                                      6,359           6,991         (9.0)     (4.6)  26,466        28,755       (8.0)         (6.5)


                                                 
              Governmental                                      590             647         (8.8)     (7.9)   2,414         2,579       (6.4)         (6.3)


                                                 
              Industrial                                     11,461          11,974         (4.3)     (4.3)  47,117        48,483       (2.8)         (2.8)



                                                 
              Total retail sales                             26,064          27,956         (6.8)     (2.3) 111,170       115,911       (4.1)         (2.1)


                                                 
              Wholesale                                       2,549           3,201        (20.4)            13,658        13,210         3.4



                                                 
              Total sales                                    28,613          31,157         (8.2)           124,828       129,121       (3.3)




                                                            Number of electric retail customers


                                                 
              Residential                                 2,527,402       2,500,736           1.1


                                                 
              Commercial                                    361,054         359,395           0.5


                                                 
              Governmental                                   17,803          17,768           0.2


                                                 
              Industrial                                     47,305          45,320           4.4


                                                 
              Total retail customers                          2,953,564       2,923,219           1.0




                                                            Other O&M and refueling outage expense
                                                             per MWh                                       $25.34          $22.70          11.6             $20.96        $21.06       (0.5)

               Calculations may differ due to rounding



              (w)               The effects of weather were
                                  estimated using heating
                                  degree days and cooling
                                  degree days for the billing
                                  cycles from certain
                                  locations within each
                                  jurisdiction and comparing
                                  to "normal" weather based on
                                  20-year historical data. The
                                  models used to estimate
                                  weather are updated
                                  periodically and are subject
                                  to change.

On a weather-adjusted basis for fourth quarter 2020, billed retail sales decreased (2.3) percent, including the impacts from COVID-19 and hurricanes. Residential billed sales increased 3.4 percent and commercial billed sales decreased (4.6) percent. Industrial billed sales volume decreased (4.3) percent reflecting lower sales to existing small and large customers, partially offset by growth from new/expansion customers.

On a weather-adjusted basis for full year 2020, retail billed sales decreased (2.1) percent, including the impacts from COVID-19 and hurricanes. Residential billed sales increased 2.7 percent and commercial billed sales decreased (6.5). Industrial billed sales volume decreased (2.8) percent reflecting lower sales to existing large and small customers, partially offset by growth from new/expansion customers.

D: EWC Financial and Operating Measures
Appendix D-1 provides a comparative summary of EWC adjusted EBITDA (non-GAAP).



       Appendix D-1: EWC Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures



       Fourth Quarter and Full Year 2020 vs. 2019

    ---


       ($ in millions)                                            Fourth Quarter                       Full Year

                                                                                ---

                                              2020       2019             
              Change         2020       2019  
     Change

                                                                                                                        ---

        Net income (loss)                     (68)       218                                (286)  (63)       149       (212)


        Add back: interest expense               5          5                                         22         29         (7)


        Add back: income taxes                  99      (187)                                 286    105      (161)        266


        Add back: depreciation and
         amortization                           21         34                                 (13)   102        148        (46)


        Subtract: interest and
         investment income                     104         99                                    5    234        415       (180)


        Add back: decommissioning
         expense                                53         49                                    3    205        237        (32)

                                                                                                                        ---

        Adjusted EBITDA (non-GAAP)               5         20                                 (15)   137       (13)        150

               Calculations may differ due to
                rounding

Appendix D-2 provides a comparative summary of EWC operating and financial measures.



       Appendix D-2: EWC Operating and Financial Measures



       Fourth Quarter and Full Year 2020 vs. 2019

    ---

                                                                 Fourth Quarter                    Full Year

                                                                                ---

                                               2020         2019           
            % Change         2020      2019  
     % Change

                                                                                                                         ---

        Owned capacity (MW) (x)               2,246        3,274                            (31.4)  2,246     3,274       (31.4)



       GWh billed                            4,442        6,780                            (34.5) 20,581    28,088       (26.7)





       
                EWC Nuclear Fleet

    ---

        Capacity factor                         89%         99%                           (10.1)    93%      93%



       GWh billed                            4,081        6,326                            (35.5) 18,863    25,928       (27.2)


        Production cost per MWh              $19.87       $17.71                              12.2  $18.58    $18.29          1.6


        Average energy/
         capacity revenue per
         MWh                                 $49.71       $35.73                              39.1  $44.34    $43.88          1.0



       Refueling outage days


        Indian Point 3                                                                                        29



       Palisades                                20                                                   52

               Calculations may differ due to rounding


               (x)               2020 excludes IP2 (1,028MW),
                                  shut down April 30, 2020.

See the appendix in the webcast slide presentation for EWC hedging and price disclosures.

E: Consolidated Financial Measures
Appendix E provides comparative financial measures. Financial measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP financial measures.



       Appendix E: GAAP and Non-GAAP Financial Measures


        Fourth Quarter 2020 vs. 2019 (See Appendix G for reconciliation of GAAP to non-GAAP financial
         measures)

    ---



        For 12 months ending
         December 31                                               2020         2019       
              Change

                                                                                                         ---


       GAAP Measures



       As-reported ROIC                                           6.1%        6.3%                   (0.2)%



       As-reported ROE                                           13.1%       13.0%                     0.1%





       Non-GAAP Financial Measures



       Adjusted ROIC                                              5.3%        5.6%                   (0.3)%



       Adjusted ROE                                              10.8%       11.2%                   (0.4)%




        As of December 31 ($ in
         millions, except where
         noted)                                                    2020         2019    
              Change

                                                                                                         ---


       GAAP Measures


        Cash and cash equivalents                                 1,759          426                     1,333


        Available revolver capacity                               4,110        3,810                       300



       Commercial paper                                          1,627        1,947                     (319)



       Total debt                                               24,062       19,885                     4,177


        Securitization debt                                         175          298                     (123)



       Debt to capital                                           68.3%       65.5%                     2.8%



       Off-balance sheet liabilities:


          Debt of joint ventures -
           Entergy's share                                           17           54                      (37)

                                                                                                         ---

        Total off-balance sheet
         liabilities                                                 17           54                      (37)





       Storm escrows                                               116          412                     (295)




        Non-GAAP Financial Measures ($ in millions, except
         where noted)


        Debt to capital, excluding
         securitization debt                                      68.1%       65.1%                     3.0%


        Net debt to net capital,
         excluding securitization
         debt                                                     66.4%       64.6%                     1.8%



       Gross liquidity                                           5,869        4,236                     1,633



       Net liquidity                                             4,241        2,289                     1,952


        Net liquidity, including
         storm escrows                                            4,357        2,701                     1,657


        Parent debt to total debt,
         excluding securitization
         debt                                                     21.6%       21.6%


        FFO to debt, excluding
         securitization debt                                      10.3%       14.6%                   (4.2)%


        FFO to debt, excluding
         securitization debt, return
         of unprotected excess ADIT,
         and severance and retention
         payments associated with
         exit of EWC                                              10.9%       16.8%                   (6.0)%

               Calculations may differ due to
                rounding

F: Definitions and Abbreviations and Acronyms
Appendix F-1 provides definitions of certain operating measures, as well as GAAP and non-GAAP financial measures.

    Error occurred while generating ASCII Content for table

    Error occurred while generating ASCII Content for table

Appendix F-2 explains abbreviations and acronyms used in the quarterly earnings materials.



          Appendix F-2: Abbreviations and Acronyms

    ---

           ADIT                            Accumulated deferred income taxes  
      ISES 2           Unit 2 of Independence Steam Electric
                                                                                                   Station (coal)


           AFUDC                           Allowance for funds used during
                                            construction


           AFUDC -                         Allowance for borrowed funds used
                                            during construction
                    borrowed
            funds                                                             
      ISO            
     Independent system operator


           ALJ                  
              Administrative law judge           
      LCPS             Lake Charles Power Station (CCGT)


           AMI                             Advanced metering infrastructure   
      LPSC             Louisiana Public Service Commission


           ANO                             Units 1 and 2 of Arkansas Nuclear
                                            One owned by E-AR (nuclear)       
      LTM            
     Last twelve months


           APSC                            Arkansas Public Service Commission 
      MCPS             Montgomery County Power Station (CCGT)


           ARO                             Asset retirement obligation        
      MISO             Midcontinent Independent System Operator,
                                                                                                   Inc.


           bps                  
              Basis points                       
      Moody's        
     Moody's Investor Service


           CCGT                            Combined cycle gas turbine         
      MPSC             Mississippi Public Service Commission


           CCN                             Certificate of convenience and
                                            necessity                         
      MTEP             MISO Transmission Expansion Plan


           CCNO                            Council of the City of New Orleans 
      Nelson 6         Unit 6 of Roy S. Nelson plant (coal)


           Choctaw                         Choctaw County Generating Station
                                            (CCGT)                            
      NDT            
     Nuclear decommissioning trust


           COD                             Commercial operation date          
      NOPA             IRS Notice of Proposed Adjustment


           CT                              Simple cycle combustion turbine    
      NOPS           
     New Orleans Power Station


           CWIP                            Construction work in progress      
      NOSS           
     New Orleans Solar Station


           DCRF                            Distribution cost recovery factor  
      NRC              U.S. Nuclear Regulatory Commission


           DOE                             U.S. Department of Energy          
      NY PSC           New York Public Service Commission


           E-AR                 
              Entergy Arkansas, LLC              
      NYISO            New York Independent System Operator, Inc.


           E-LA                 
              Entergy Louisiana, LLC             
      NYSE           
     New York Stock Exchange


           E-MS                 
              Entergy Mississippi, LLC           
      OCF              Net cash flow provided by operating
                                                                                                   activities


           E-NO                 
              Entergy New Orleans, LLC           
      OCPS           
     Orange County Power Station


           E-TX                 
              Entergy Texas, Inc                 
      OpCo           
     Utility operating company


           EBITDA                          Earnings before interest, income
                                            taxes, and depreciation and
                                            amortization                      
      OPEB           
     Other post-employment benefits


           ENP                             Entergy Nuclear Palisades, LLC     
      Other O&M        Other non-fuel operation and maintenance
                                                                                                   expense


           EPS                  
              Earnings per share                 
      P&O            
     Parent & Other


           ETR                  
              Entergy Corporation                
      Palisades      
     Palisades Power Plant (nuclear)


           EWC                             Entergy Wholesale Commodities      
      Pilgrim          Pilgrim Nuclear Power Station (nuclear,
                                                                                                   sold August 26, 2019)


           FERC                            Federal Energy Regulatory
                                            Commission                        
      PMR            
     Performance Management Rider


           FFO                  
              Funds from operations              
      PPA              Power purchase agreement or purchased
                                                                                                   power agreement


           FIN 48                          FASB Interpretation No.48,
                                            "Accounting for Uncertainty in
                                            Income Taxes"                     
      PSC            
     Public service commission


           FRP                  
              Formula rate plan                  
      PUCT             Public Utility Commission of Texas


           GAAP                            U.S. generally accepted accounting
                                            principles                        
      RICE             Reciprocating internal combustion engine


           GCRR                            Generation Cost Recovery Rider     
      RFP            
     Request for proposals


           Grand Gulf                      Unit 1 of Grand Gulf Nuclear
            or GGNS                         Station (nuclear), 90% owned or
                                            leased by SERI                    
      ROE            
     Return on equity


           IIRR-G                          Infrastructure investment recovery
                                            rider -gas                        
      ROIC           
     Return on invested capital


           Indian                          Indian Point Energy Center Unit 1
            Point 1                         (nuclear) (shut down in 1974)     
      RS Cogen         RS Cogen facility (CCGT cogeneration)


           Indian                          Indian Point Energy Center Unit 2
            Point 2                         (nuclear)  (shut down April 30,
            or IP2                          2020)                              
      RSP              Rate Stabilization Plan (E-LA Gas)


           Indian                          Indian Point Energy Center Unit 3
            Point 3                         (nuclear)                         
      S&P            
     Standard & Poor's
    or IP3


           IPEC or                         Indian Point Energy Center
                                            (nuclear)                         
      SEC              U.S. Securities and Exchange Commission
    Indian
     Point


           IRP                  
              Integrated resource plan           
      SERI           
     System Energy Resources, Inc.


           IRS                  
              Internal Revenue Service           
      TCRF             Transmission cost recovery factor


                                                                              
      UPSA           
     Unit Power Sales Agreement


                                                                              
      Vermont Yankee   Vermont Yankee Nuclear Power Station
                                                                                                   (nuclear, sold January 11, 2019)


                                                                              
      WACC             Weighted-average cost of capital


                                                                              
      WPEC           
     Washington Parish Energy Center

G: Other GAAP to Non-GAAP Reconciliations
Appendix G-1, Appendix G-2, and Appendix G-3 provide reconciliations of various non-GAAP financial measures disclosed in this news release to their most comparable GAAP measure.


     Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures -
      ROIC, ROE


      (LTM
      $
      in
      millions
      except
      where
      noted)                                                                    Fourth Quarter



                                                              2020         2019



      As-
      reported
      net
      income
      (loss)
      attributable
      to
      Entergy
      Corporation                  
              (A)            1,388        1,241


      Preferred
      dividends                                                 18           17


      Tax-
      effected
      interest
      expense                                                  586          554



      As-
      reported                            preferred
      net                                 dividends
      income                              and
      (loss)                              tax-
      attributable                        effected
      to                                  interest
      Entergy                             expense
      Corporation
      adjusted
      for                                                    1,992        1,812




     Adjustments                   
              (C)              250          177

                                   
              (B)


      EWC
      preferred
      dividends
      and
      tax-
      effected
      interest
      expense
      included
      in
      adjustments                                               20           25




      Total
      adjustments,                        (non-
      excluding                           GAAP)
      EWC
      preferred
      dividends
      and
      tax-
      effected
      interest
      expense                                                  270          202

                                   
              (D)


      Adjusted
      earnings
      (non-
      GAAP)                       
              (A-C)           1,138        1,064


      Adjusted
      earnings,                           (non-
      excluding                           GAAP)
      preferred
      dividends
      and
      tax-

      effected
      interest
      expense                                                1,722        1,610

                                  
              (B-D)


      Average
      invested
      capital
      (average
      of
      beginning
      and
      ending
      balances)                    
              (E)           32,803       28,780




      Average
      common
      equity
      (average
      of
      beginning
      and
      ending
      balances)                    
              (F)           10,575        9,534




      As-
      reported
      ROIC                        
              (B/E)            6.1%        6.3%


      Adjusted
      ROIC
      (non-
      GAAP)                     
              [(B-D)/E]          5.3%        5.6%


      As-
      reported
      ROE                         
              (A/F)           13.1%       13.0%


      Adjusted
      ROE
      (non-
      GAAP)                     
              [(A-C)/F]         10.8%       11.2%

               Calculations may differ due to
                rounding


        Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures - Debt ratios excluding securitization
         debt; gross liquidity; net liquidity; net liquidity, including storm escrows

    ---

        ($ in millions except
         where noted)                                                                                    Fourth Quarter



                                                                                      2020         2019




       Total debt                                   
              (A)                 24,062       19,885


        Less securitization debt                     
              (B)                    175          298



        Total debt, excluding
         securitization debt                         
              (C)                 23,887       19,587


        Less cash and cash
         equivalents                                 
              (D)                  1,759          426



        Net debt, excluding
         securitization debt                         
              (E)                 22,128       19,161




        Commercial paper                             
              (F)                  1,627        1,947




        Total capitalization                         
              (G)                 35,243       30,363


        Less securitization debt                     
              (B)                    175          298



        Total capitalization,
         excluding securitization
         debt                                        
              (H)                 35,068       30,065


        Less cash and cash
         equivalents                                 
              (D)                  1,759          426



        Net capital, excluding
         securitization debt                         
              (I)                 33,309       29,639




        Debt to capital                             
              (A/G)                 68.3%       65.5%


        Debt to capital,
         excluding securitization
         debt (non-GAAP)                            
              (C/H)                 68.1%       65.1%


        Net debt to net capital,
         excluding securitization
         debt (non-GAAP)                            
              (E/I)                 66.4%       64.6%




        Available revolver
         capacity                                    
              (J)                  4,110        3,810





       Storm escrows                                
              (K)                    116          412




        Gross liquidity (non-
         GAAP)                                      
              (D+J)                 5,869        4,236


        Net liquidity (non-GAAP)                   
              (D+J-F)                4,241        2,289


        Net liquidity, including
         storm escrows (non-
         GAAP)                                    
              (D+J-F+K)               4,357        2,701




        Entergy Corporation
         notes:


        Due September 2020                                                                         450



       Due July 2022                                                                  650          650


        Due September 2025                                                             800


        Due September 2026                                                             750          750



       Due June 2030                                                                  600



       Due June 2050                                                                  600


        Total Entergy Corporation
         notes                                       
              (L)                  3,400        1,850



       Revolver draw                                
              (M)                    165          440


        Unamortized debt issuance
         costs and discounts                         
              (N)                   (38)         (8)



        Total parent debt                         
              (F+L+M+N)               5,154        4,229




        Parent debt to total
         debt, excluding
         securitization debt
         (non-GAAP)                             
              [(F+L+M+N)/C]             21.6%       21.6%

               Calculations may differ due to
                rounding


        Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures - FFO to debt, excluding
         securitization debt; FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and
         severance and retention payments associated with exit of EWC

    ---

        ($ in millions except                                                                      Fourth
         where noted)                                                                               Quarter



                                                                                2020         2019




       Total debt                               
              (A)               24,062       19,885


        Less securitization
         debt                                    
              (B)                  175          298



        Total debt, excluding
         securitization debt                     
              (C)               23,887       19,587




        Net cash flow provided
         by operating
         activities, LTM                         
              (D)                2,690        2,817






        AFUDC - borrowed funds,
         LTM                                     
              (E)                 (52)        (65)




        Working capital items
         in net cash flow
         provided by operating
         activities, LTM:



       Receivables                                                            (139)       (101)


        Fuel inventory                                                          (27)        (28)


        Accounts payable                                                         137         (72)


        Taxes accrued                                                            208         (21)


        Interest accrued                                                           8            1


        Other working capital
         accounts                                                              (143)         (3)


        Securitization
         regulatory charges,
         LTM                                                                     124          122




       Total                                    
              (F)                  168        (102)




        FFO, LTM (non-GAAP)                  
              (G)=(D+E-F)            2,470        2,854




        FFO to debt, excluding
         securitization debt
         (non-GAAP)                             
              (G/C)               10.3%       14.6%




        Estimated return of
         unprotected excess
         ADIT, LTM                               
              (H)                   70          301


        Severance and retention
         payments associated
         with exit of EWC, LTM
         pre-tax                                 
              (I)                   55          141




        FFO to debt, excluding
         securitization debt,
         return of unprotected
         excess ADIT, and
         severance and
         retention payments
         associated with exit
         of EWC (non-GAAP)                  
              [(G+H+I)/(C)]           10.9%       16.8%

               Calculations may differ due to
                rounding


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SOURCE Entergy Corporation