Entergy reports 2023 financial results, initiates 2024 guidance
Results in top half of guidance range for 8(th) consecutive year
NEW ORLEANS, Feb. 22, 2024 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported fourth quarter 2023 earnings per share of $4.64 on an as-reported basis and 52 cents on an adjusted (non-GAAP) basis. For the full year, the company reported 2023 earnings per share of $11.10 on an as-reported basis and $6.77 on an adjusted basis.
"2023 was a year of successful execution to support our customers," said Drew Marsh, Entergy Chair and Chief Executive Officer. "We delivered meaningful outcomes that included our best forced outage rates in a decade, a system that withstood record summer demand, as well as timely delivery of new service and clean energy options to support our rapidly growing customer base."
Business highlights included the following:
-- Mississippi approved legislation to bring Amazon Web Services' $10
billion data center complexes to the state.
-- The LPSC approved two solar facilities that will add approximately 225
megawatts of renewable capacity for E-LA.
-- The APSC approved E-AR's annual FRP.
-- The CCNO issued its order on E-NO's Hurricane Ida restoration costs,
determining that all costs were prudent.
-- Entergy was named to a Dow Jones Sustainability Index for the 22(nd)
consecutive year.
-- Newsweek named Entergy as one of America's most responsible companies.
Consolidated earnings (GAAP and non-GAAP measures)
Fourth quarter and full year 2023 vs. 2022
(
See Appendix A for reconciliation of GAAP to non-GAAP measures and description
of adjustments)
Fourth quarter
Full year
---
2023 2022 Change 2023 2022 Change
(After-tax, $ in millions)
As-reported earnings 988 106 881 2,357 1,103 1,253
Less adjustments 877 (1) 877 919 (217) 1,136
Adjusted earnings (non-GAAP) 111 107 4 1,438 1,320 118
Estimated weather impact (12) (1) (12) 91 86 5
(After-tax, per share in $)
As-reported earnings 4.64 0.51 4.13 11.10 5.37 5.73
Less adjustments 4.12 4.12 4.33 (1.05) 5.38
Adjusted earnings (non-GAAP) 0.52 0.51 0.01 6.77 6.42 0.35
Estimated weather impact (0.06) (0.05) 0.43 0.42 0.01
Calculations may differ due to
rounding
Consolidated results
For fourth quarter 2023, the company reported earnings of $988 million, or $4.64 per share, on an as-reported basis, and earnings of $111 million, or 52 cents per share, on an adjusted basis. This compared to fourth quarter 2022 earnings of $106 million, or 51 cents per share, on an as-reported basis, and earnings of $107 million, or 51 cents per share, on an adjusted basis.
For full year 2023, the company reported earnings of $2,357 million, or $11.10 per share, on an as-reported basis, and earnings of $1,438 million, or $6.77 per share, on an adjusted basis. This compared to 2022 earnings of $1,103 million, or $5.37 per share, on an as-reported basis, and earnings of $1,320 million, or $6.42 per share, on an adjusted basis.
Summary discussions for the full year results by business follow. Additional details, including information on OCF by business, are provided in Appendix A. An analysis of variances by business is provided in Appendix B.
Business segment results
Utility
For full year 2023, the Utility business reported earnings attributable to Entergy Corporation of $2,507 million, or $11.81 per share, on an as-reported basis, and earnings of $1,896 million, or $8.93 per share, on an adjusted basis. This compared to full year 2022 earnings of $1,407 million, or $6.84 per share, on an as-reported basis, and earnings of $1,686 million, or $8.20 per share, on an adjusted basis. Several drivers contributed to the year-over-year change.
In fourth quarter 2023, as a result of the 2016-2018 IRS audit resolution, the company recorded a $568 million income tax benefit as well as a $(98 million) ($(72 million) after tax) regulatory provision to share the benefits with customers (considered an adjustment and excluded from adjusted earnings).
Also in fourth quarter 2023, the company recorded the reversal of a $106 million regulatory liability associated with Hurricane Isaac securitization, initially recorded in 2017 as a result of the Tax Cuts and Jobs Act (considered an adjustment and excluded from adjusted earnings).
In third quarter 2023 as a result of E-AR's offer to forgo its opportunity to seek recovery of costs resulting from the March 2013 ANO stator incident, E-AR recorded a write-off of replacement power costs and undepreciated property, plant, and equipment totaling $(78 million) ($(59 million) after tax) (considered an adjustment and excluded from adjusted earnings).
In first quarter 2023, as a result of E-LA receiving securitization proceeds for storm cost recovery, the company recorded the following (considered adjustments and excluded from adjusted earnings):
-- a $129 million reduction in income tax expense,
-- $31 million of carrying costs on storm expenditures not previously
recorded,
-- a $(15 million) reduction in other income to account for LURC's 1
percent beneficial interest in a trust established as part of the
securitization, and
-- a $(103 million) ($(76 million) after tax) reserve to share the benefits
from securitization with customers.
In second quarter 2022, results included a regulatory charge of $(551 million) ($(413 million) after tax) that SERI recorded to increase a regulatory liability to reflect the effects of a partial settlement agreement and offer of settlement related to pending proceedings before the FERC (considered an adjustment and excluded from adjusted earnings).
Also in second quarter 2022, as a result of receiving approvals for storm cost recovery and issuance of securitized debt at E-LA and E-TX, the companies recorded the following:
-- $59 million ($54 million after tax) carrying costs on storm expenditures
not previously recorded (the equity portion of carrying costs related to
prior years was considered an adjustment and excluded from adjusted
earnings),
-- a $(32 million) reduction in other income to account for LURC's 1
percent beneficial interest in a trust established as part of E-LA's
securitization (considered an adjustment and excluded from adjusted
earnings),
-- a $283 million reduction in income tax expense (considered an adjustment
and excluded from adjusted earnings), and
-- $(224 million) ($(165 million) after tax) reserve to share the benefits
from securitization with customers (considered an adjustment and
excluded from adjusted earnings).
Other drivers for the year included:
-- the net effect of regulatory actions across the operating companies,
-- higher other income (deductions) primarily from affiliate preferred
investments (offset at P&O and largely earnings neutral at the
consolidated level) and higher allowance for equity funds used during
construction, and
-- lower other O&M.
The drivers were partially offset by:
-- higher operating expenses including depreciation expense, taxes other
than income taxes, nuclear refueling outage expense, and decommissioning
expense;
-- various regulatory charges (credits); and
-- higher interest expense.
On a per share basis, 2023 results reflected higher diluted average number of common shares outstanding.
Appendix C contains additional details on Utility operating and financial measures.
Parent & Other
For full year 2023, Parent & Other reported a loss attributable to Entergy Corporation of $(151 million), or (71) cents per share, on an as-reported basis, and a loss of $(458 million) or $(2.16) per share on an adjusted basis. This compared to a full year 2022 loss of $(303 million), or $(1.48) per share, on an as-reported basis, and a loss of $(366 million), or $(1.78) per share on an adjusted basis.
In 2022, the wind down of EWC was completed and that business is no longer a reportable segment. Starting in 2023, the remaining activity from EWC is included in Parent & Other. For comparability, EWC 2022 results are also included in Parent & Other. For the full year 2022, EWC reported earnings of $63 million, or 31 cents per share, on an as-reported basis, which included revenue and operating expenses from Palisades until the plant was shut down in May 2022, and decommissioning expense and earnings on the decommissioning trust until the plant was sold in June 2022. EWC's 2022 results also included a gain of $166 million ($130 million after tax) that resulted from the sale of Palisades and an accrual for an uncertain tax position that resulted from a state tax audit.
Other drivers for the full year Parent & Other variance included:
-- a reduction in income tax expense in fourth quarter 2023 as a result of
the 2016-2018 IRS audit resolution (considered an adjustment and
excluded from adjusted earnings);
-- the effects of the third quarter 2023 DOE spent fuel litigation
settlement on asset write-offs and impairments (considered an adjustment
and excluded from adjusted earnings);
-- lower other income (deductions) due primarily to higher dividends
associated with affiliate preferred investments (offset at Utility and
largely earnings neutral at the consolidated level), partially offset by
the timing of charitable contributions and higher non-service pension
income;
-- higher interest expense due primarily to higher short-term borrowing
rates; and
-- higher other O&M for non-nuclear generation assets (previously included
in EWC segment, partially offset by revenue from those assets).
On a per share basis, 2023 results reflected higher diluted average number of common shares outstanding.
Earnings per share guidance
Entergy initiated its 2024 adjusted EPS guidance range of $7.05 to $7.35. See webcast presentation for additional details.
The company has provided 2024 earnings guidance with regard to the non-GAAP measure of adjusted earnings per share. This measure excludes from the corresponding GAAP financial measure the effect of adjustments as described below under "Non-GAAP financial measures." The company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot predict and quantify with a reasonable degree of confidence all of the adjustments that may occur during the period. Potential adjustments include the exclusion of regulatory charges related to outstanding regulatory complaints and significant income tax items.
Earnings teleconference
A teleconference will be held at 10:00 a.m. Central Time on Thursday, February 22, 2024, to discuss Entergy's quarterly earnings announcement and the company's financial performance. The teleconference may be accessed by visiting Entergy's website at www.entergy.com or by dialing
888-440-4149, conference ID 9024832, no more than 15 minutes prior to the start of the call. The webcast presentation is also being posted to Entergy's website concurrent with this news release. A replay of the teleconference will be available on Entergy's website at www.entergy.com and by telephone. The telephone replay will be available through February 29, 2024, by dialing 800-770-2030, conference ID 9024832.
Entergy is a Fortune 500 company that powers life for 3 million customers through our operating companies in Arkansas, Louisiana, Mississippi, and Texas. We're investing in the reliability and resilience of the energy system while helping our region transition to cleaner, more efficient energy solutions. With roots in our communities for more than 100 years, Entergy is a nationally recognized leader in sustainability and corporate citizenship. Since 2018, we have delivered more than $100 million in economic benefits each year to local communities through philanthropy, volunteerism, and advocacy. Entergy is headquartered in New Orleans, Louisiana, and has approximately 12,000 employees.
Entergy Corporation's common stock is listed on the New York Stock Exchange and NYSE Chicago under the symbol "ETR".
Details regarding Entergy's results of operations, regulatory proceedings, and other matters are available in this earnings release, a copy of which will be filed with the SEC, and the webcast presentation. Both documents are available on Entergy's Investor Relations website at www.entergy.com/investors.
Entergy maintains a web page as part of its Investor Relations website, entitled Regulatory and other information, which provides investors with key updates on certain regulatory proceedings and important milestones on the execution of its strategy. While some of this information may be considered material information, investors should not rely exclusively on this page for all relevant company information.
For definitions of certain operating measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the earnings release materials, see Appendix E.
Non-GAAP financial measures
This news release contains non-GAAP financial measures, which are generally numerical measures of a company's performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Entergy has provided quantitative reconciliations within this news release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Entergy reports earnings using the non-GAAP measure of Entergy adjusted earnings, which excludes the effect of certain "adjustments." Adjustments are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as significant tax items, and other items such as certain costs, expenses, or other specified items. In addition to reporting GAAP consolidated earnings on a per share basis, Entergy reports its adjusted earnings on a per share basis. These per share measures represent the applicable earnings amount divided by the diluted average number of common shares outstanding for the period.
Management uses the non-GAAP financial measures of adjusted earnings and adjusted earnings per share for, among other things, financial planning and analysis; reporting financial results to the board of directors, employees, stockholders, analysts, and investors; and internal evaluation of financial performance. Entergy believes that these non-GAAP financial measures provide useful information to investors in evaluating the ongoing results of Entergy's business, comparing period to period results, and comparing Entergy's financial performance to the financial performance of other companies in the utility sector.
Other non-GAAP measures, including adjusted ROE; adjusted ROE, excluding affiliate preferred; gross liquidity; net liquidity; net liquidity, including storm escrows; debt to capital, excluding securitization debt; net debt to net capital, excluding securitization debt; parent debt to total debt, excluding securitization debt; and FFO to debt, excluding securitization debt, are measures Entergy uses internally for management and board discussions and to gauge the overall strength of its business. Entergy believes the above data provides useful information to investors in evaluating Entergy's ongoing financial results and flexibility and assists investors in comparing Entergy's credit and liquidity to the credit and liquidity of others in the utility sector. In addition, ROE is included on both an adjusted and an as-reported basis. Metrics defined as "adjusted" exclude the effect of adjustments as defined above.
These non-GAAP financial measures reflect an additional way of viewing aspects of Entergy's operations that, when viewed with Entergy's GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting Entergy's business. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. Investors are strongly encouraged to review Entergy's consolidated financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Although certain of these measures are intended to assist investors in comparing Entergy's performance to other companies in the utility sector, non-GAAP financial measures are not standardized; therefore, it might not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
Cautionary note regarding forward-looking statements
In this news release, and from time to time, Entergy Corporation makes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, among other things, statements regarding Entergy's 2024 earnings guidance; current financial and operational outlooks; industrial load growth outlooks; statements regarding its climate transition and resilience plans, goals, beliefs, or expectations; and other statements of Entergy's plans, beliefs, or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Forward-looking statements are subject to a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy's most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q, and Entergy's other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans, and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent or on the timeline anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with (1) realizing the benefits of its resilience plan, including impacts of the frequency and intensity of future storms and storm paths, as well as the pace of project completion and (2) efforts to remediate the effects of major storms and recover related restoration costs; (d) risks associated with operating nuclear facilities, including plant relicensing, operating, and regulatory costs and risks; (e) changes in decommissioning trust values or earnings or in the timing or cost of decommissioning Entergy's nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with executing on business strategies, including strategic transactions that Entergy or its subsidiaries may undertake and the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) direct and indirect impacts to Entergy or its customers from pandemics, terrorist attacks, geopolitical conflicts, cybersecurity threats, data security breaches, or other attempts to disrupt Entergy's business or operations, and/or other catastrophic events; and (i) effects on Entergy or its customers of (1) changes in federal, state, or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental, or energy policies; (2) the effects of changes in commodity markets, capital markets, or economic conditions; and (3) the effects of technological change, including the costs, pace of development, and commercialization of new and emerging technologies.
###
Fourth quarter 2023 earnings release appendices and financial statements
Appendices
A: Consolidated results and adjustments
B: Earnings variance analysis
C: Utility operating and financial measures
D: Consolidated financial measures
E: Definitions and abbreviations and acronyms
F: Other GAAP to non-GAAP reconciliations
Financial statements
Consolidating balance sheets
Consolidating income statements
Consolidated cash flow statements
A: Consolidated results and adjustments
Appendix A-1 provides a comparative summary of consolidated earnings, including a reconciliation of as-reported earnings (GAAP) to adjusted earnings (non-GAAP).
Appendix
A
-1: Consolidated earnings - reconciliation of GAAP to non-GAAP measures
Fourth quarter and full year 2023 vs. 2022
(
See Appendix A-2 and Appendix A-3 for details on adjustments)
Fourth quarter Full year
---
2023 2022 Change 2023 2022 Change
(After-tax, $ in millions)
As-reported earnings (loss)
Utility 844 241 603 2,507 1,407 1,101
Parent & Other
2022 EWC - (12) 12 63 (63)
All other 144 (122) 266 (151) (366) 215
Total Parent & Other 144 (135) 278 (151) (303) 153
Consolidated 988 106 881 2,357 1,103 1,253
Less adjustments
Utility 602 12 590 611 (280) 891
Parent & Other
2022 EWC - (12) 12 63 (63)
All other 275 275 307 307
Total Parent & Other 275 (12) 287 307 63 245
Consolidated 877 (1) 877 919 (217) 1,136
Adjusted earnings (loss) (non-GAAP)
Utility 242 229 13 1,896 1,686 209
Parent & Other
2022 EWC -
All other (132) (122) (9) (458) (366) (92)
Total Parent & Other (132) (122) (9) (458) (366) (92)
Consolidated 111 107 4 1,438 1,320 118
Estimated weather impact (12) (1) (12) 91 86 5
Diluted average number of common shares outstanding (in millions) 213 209 4 212 206 7
(After-tax, per share in $)
(a)
As-reported earnings (loss)
Utility 3.96 1.15 2.81 11.81 6.84 4.96
Parent & Other
2022 EWC - (0.06) 0.06 0.31 (0.31)
All other 0.67 (0.58) 1.26 (0.71) (1.78) 1.07
Total Parent & Other 0.67 (0.64) 1.32 (0.71) (1.48) 0.77
Consolidated 4.64 0.51 4.13 11.10 5.37 5.73
Less adjustments
Utility 2.82 0.06 2.77 2.88 (1.36) 4.24
Parent & Other
2022 EWC - (0.06) 0.06 0.31 (0.31)
All other 1.29 1.29 1.45 1.45
Total Parent & Other 1.29 (0.06) 1.35 1.45 0.31 1.14
Consolidated 4.12 4.12 4.33 (1.05) 5.38
Adjusted earnings (loss) (non-GAAP)
Utility 1.14 1.09 0.05 8.93 8.20 0.72
Parent & Other
2022 EWC -
All other (0.62) (0.58) (0.04) (2.16) (1.78) (0.38)
Total Parent & Other (0.62) (0.58) (0.04) (2.16) (1.78) (0.38)
Consolidated 0.52 0.51 0.01 6.77 6.42 0.35
Estimated weather impact (0.06) (0.05) 0.43 0.42 0.01
Calculations may differ due to rounding
(a) Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common
shares outstanding for the period.
See Appendix B for detailed earnings variance analysis.
Appendix A-2 and Appendix A-3 detail adjustments by business. Adjustments are included in as-reported earnings consistent with GAAP but are excluded from adjusted earnings. As a result, adjusted earnings is considered a non-GAAP measure.
Appendix A-2: Adjustments by driver (shown as positive/(negative) impact on earnings or EPS)
Fourth quarter and full year 2023 vs. 2022
Fourth quarter Full year
---
2023 2022 Change 2023 2022 Change
(Pre-tax except for income taxes and totals; $ in millions)
Utility
Customer sharing of tax benefits as a result of the 2016-2018 IRS (98) (98) (98) (98)
audit resolution
E-AR write-off of assets related to the ANO stator incident - (78) (78)
Impacts from storm cost approvals and securitizations, including - (87) (215) 128
customer sharing (excluding income tax items below)
SERI regulatory charge resulting from partial settlement and offer of - (551) 551
settlement for pending litigation
Impacts from FERC's December 2022 SERI order on the - 20 (20) 20 (20)
sale-leaseback complaint
Income tax effect on Utility adjustments above 26 (8) 35 73 183 (110)
2016-2018 IRS audit resolution 568 568 568 568
E-LA reversal of regulatory liability associated with Hurricane Isaac 106 106 106 106
securitization, initially recorded in 2017 as a result of the TCJA
E-LA income tax benefit resulting from securitization - 129 283 (154)
Total Utility 602 12 590 611 (280) 891
Parent & Other
2022 EWC
Income before income taxes - (4) 4 119 (119)
Income taxes - (8) 8 (54) 54
Preferred dividend requirement - (1) 1 (2) 2
Total 2022 EWC - (12) 12 63 (63)
All Other
2016-2018 IRS audit resolution 275 275 275 275
DOE spent nuclear fuel litigation settlement (IPEC) - 40 40
Income tax effect on adjustments above - (9) (9)
Total Parent & Other 275 (12) 288 307 63 245
Total adjustments 877 (1) 877 919 (217) 1,136
(After-tax, per share in $)
(b)
Utility
Customer sharing of tax benefits as a result of the 2016-2018 IRS (0.34) (0.34) (0.34) (0.34)
audit resolution
E-AR write-off of assets related to the ANO stator incident - (0.28) (0.28)
Impacts from storm cost approvals and securitizations, including - (0.29) (0.79) 0.51
customer sharing (excluding income tax items below)
SERI regulatory charge resulting from partial settlement and offer of - (2.01) 2.01
settlement for pending litigation
Impacts from FERC's December 2022 SERI order on the - 0.06 (0.06) 0.06 (0.06)
sale-leaseback complaint
2016-2018 IRS audit resolution 2.67 2.67 2.67 2.67
E-LA reversal of regulatory liability associated with Hurricane Isaac 0.50 0.50 0.50 0.50
securitization, initially recorded in 2017 as a result of the TCJA
E-LA income tax benefit resulting from securitization - 0.61 1.38 (0.77)
Total Utility 2.82 0.06 2.77 2.88 (1.36) 4.24
Parent & Other
Total 2022 EWC - (0.06) 0.06 0.31 (0.31)
2016-2018 IRS audit resolution 1.29 1.29 1.30 1.30
DOE spent nuclear fuel litigation settlement (IPEC) - 0.15 0.15
Total Parent & Other 1.29 (0.06) 1.35 1.45 0.31 1.14
Total adjustments 4.12 4.12 4.33 (1.05) 5.38
Calculations may differ due to rounding
(b) Per share amounts are calculated by multiplying the corresponding earnings (loss) by the estimated income tax rate that is expected to apply and dividing by the diluted average
number of common shares outstanding for the period.
Appendix A-3: Adjustments by income statement line item (shown as positive/(negative) impact on earnings)
Fourth quarter and full year 2023 vs. 2022
(Pre-tax except for income taxes, preferred dividend requirements, and totals; $ in millions)
Fourth quarter Full year
---
2023 2022 Change 2023 2022 Change
Utility
Operating revenues - 31 46 (16)
Asset write-offs and impairments - (78) (78)
Other regulatory charges (credits)
-net (98) (98) (174) (775) 601
Other income (deductions) - (15) (37) 22
Depreciation and amortization - 33 (33) 33 (33)
Income taxes 700 (21) 721 848 453 395
Total Utility 602 12 590 611 (280) 891
Parent & Other
2022 EWC
Operating revenues - 43 (43) 343 (343)
Fuel and fuel-related expenses - (18) 18 (98) 98
Purchased power - (20) 20 (83) 83
Nuclear refueling outage expenses - (18) 18
Other O&M - (10) 10 (103) 103
Asset write-offs and impairments - 163 (163)
Decommissioning - (28) 28
Taxes other than income taxes - (3) 3 (16) 16
Depreciation and amortization - (1) 1 (14) 14
Other income (deductions) - 8 (8) (18) 18
Interest expense - (3) 3 (8) 8
Income taxes - (8) 8 (54) 54
Preferred dividend requirements - (1) 1 (2) 2
Total 2022 EWC - (12) 12 63 (63)
All Other
Asset write-offs and impairments - 40 40
Income taxes 275 275 267 267
Total Parent & Other 275 (12) 287 307 63 245
Total adjustments 877 (1) 877 919 (217) 1,136
Calculations may differ due to
rounding
Appendix A-4 provides a comparative summary of OCF by business.
Appendix A-4: Consolidated operating cash flow
Fourth quarter and full year 2023 vs. 2022
($ in millions)
Fourth quarter Full year
---
2023 2022 Change 2023 2022 Change
Utility 1,576 1,089 487 4,878 3,031 1,847
Parent & Other
2022 EWC - (103) 103 (81) 81
All other (513) (210) (303) (584) (365) (219)
Total
Parent &
Other (513) (313) (200) (584) (446) (138)
Consolidated 1,063 776 287 4,294 2,585 1,709
Calculations may differ due to
rounding
OCF increased year-over-year due primarily to lower fuel and purchased power payments at the Utility, higher non-capital storm restoration spending in 2022, lower pension contributions, and higher interest received due primarily to shorter-term financing interest earnings at E-LA and interest on storm reserve escrow accounts. The increase was partially offset by lower receipts from Utility customers (primarily lower fuel revenue), receipt of E-NO's storm securitization proceeds in 2022, higher interest paid, and the wind down of EWC.
Affiliate preferred dividend payments contributed to the Utility and Parent & Other variances but was neutral at the consolidated level.
Intercompany income tax payments contributed to the Utility and Parent & Other variances but was not a material driver for the consolidated result.
B: Earnings variance analysis
Appendix B-1 and Appendix B-2 provide details of current quarter and full year 2023 versus 2022 as-reported and adjusted earnings per share variances for Utility and Parent & Other.
Appendix
B
-1: As-reported and adjusted earnings per share variance analysis
(c)
,
(d)
,
(e)
Fourth quarter 2023 vs. 2022
(After-tax, per share in $)
Parent & Other
Utility 2022 EWC
(f) All other Consolidated
As- Adjusted As- As- Adjusted As- Adjusted
reported reported reported reported
2022 earnings (loss) 1.15 1.09 (0.06) (0.58) (0.58) 0.51 0.51
Operating revenue less: (0.24) 0.11 (g) (0.02) 0.01 0.01 (0.24) 0.12
fuel, fuel-related expenses and
gas purchased for resale;
purchased power; and other
regulatory charges (credits)-net
Nuclear refueling outage expense (0.01) (0.01) (0.01) (0.01)
Other O&M (0.22) (0.22) (h) 0.04 (0.05) (0.05) (i) (0.24) (0.27)
Asset write-offs and impairments (0.01) (0.01) (0.01) (0.01) (0.02) (0.02)
Decommissioning expense (0.01) (0.01) (0.01) (0.01)
Taxes other than income taxes - 0.01 0.01
Depreciation/amortization exp. (0.21) (0.09) (j) (0.01) (0.01) (0.21) (0.10)
Other income (deductions) 0.20 0.20 (k) (0.03) 0.05 0.05 (l) 0.22 0.25
Interest expense (0.04) (0.04) 0.01 (0.03) (0.03) (0.07) (0.08)
Income taxes - other 3.41 0.13 (m) 0.04 1.32 (n) 4.78 0.14
Share effect (0.07) (0.02) (o) (0.01) 0.01 (0.09) (0.01)
2023 earnings (loss) 3.96 1.14 0.67 (0.62) 4.64 0.52
Calculations may differ due to
rounding
Appendix B-2: As-reported and adjusted earnings per share variance analysis
(c)
,
(d)
,
(e)
Full year 2023 vs. 2022
(After-tax, per share in $)
Parent & Other
Utility 2022 EWC
(f) All other Consolidated
As- Adjusted As- As- Adjusted As- Adjusted
reported reported reported reported
2022 earnings (loss) 6.84 8.20 0.31 (1.78) (1.78) 5.37 6.42
Operating revenue less: 2.89 0.85 (g) (0.62) 0.06 0.06 (p) 2.33 0.91
fuel, fuel-related expenses and
gas purchased for resale;
purchased power; and other
regulatory charges (credits)-net
Nuclear refueling outage expense (0.05) (0.05) (q) 0.07 0.03 (0.05)
Other O&M 0.22 0.22 (r) 0.40 (0.09) (0.09) (i) 0.53 0.13
Asset write-offs and impairments (0.29) (0.01) (s) (0.63) 0.14 (0.01) (t) (0.78) (0.02)
Decommissioning expense (0.04) (0.04) 0.11 0.07 (0.04)
Taxes other than income taxes (0.13) (0.13) (u) 0.06 (0.01) (0.01) (0.08) (0.14)
Depreciation/amortization exp. (0.34) (0.22) (j) 0.06 (0.02) (0.02) (0.30) (0.24)
Other income (deductions) 0.70 0.59 (k) 0.07 (0.20) (0.20) (v) 0.56 0.38
Interest expense (0.24) (0.24) (w) 0.03 (0.14) (0.14) (x) (0.35) (0.38)
Income taxes - other 2.63 0.04 (m) 0.14 1.32 (0.02) (n) 4.09 0.02
Preferred dividend requirements - 0.01 (0.01) (0.01) (0.01)
and noncontrolling interests
Share effect (0.39) (0.30) (o) 0.02 0.07 (o) (0.37) (0.23)
2023 earnings (loss) 11.81 8.93 (0.71) (2.16) 11.10 6.77
Calculations may differ due to
rounding
(c) Utility operating revenue and Utility income taxes -other exclude the following for the amortization of unprotected excess ADIT affecting customers' bills
(net effect is neutral to earnings) ($ in millions):
4Q23 4Q22 FY23 FY22
Utility operating revenue 5 5 13 (45)
Utility income taxes - other (5) (5) (13) 45
(d) Utility regulatory charges (credits) and Utility preferred dividend requirements and noncontrolling interest exclude the following for the effects of HLBV accounting and the approved
deferral (net effect is neutral to earnings) ($ millions):
4Q23 4Q22 FY23 FY22
Utility regulatory charges (credits) 4 14 14 26
Utility preferred dividend requirements and (4) (14) (14) (26)
noncontrolling interest
(e) EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply and dividing by diluted average number of common shares outstanding for the prior
period. Income taxes - other represents income tax differences other than the income tax effect of individual line items. Share effect captures the per share impact from the change in diluted average
number of common shares outstanding.
(f) In 2022, the wind down of EWC was completed and that business is no longer a reportable segment. Starting in 2023, the remaining activity from EWC is included in Parent & Other "All other." EWC 2022
results were largely attributable to Palisades nuclear plant, which was shut down and sold in second quarter 2022. Financial results in 2022 included revenue and operating expenses from Palisades until
the plant was shut down in May 2022, and decommissioning expense and earnings on the decommissioning trust until the plant was sold in June 2022. Second quarter 2022 results also included a gain of $166
million ($130 million after tax) that resulted from the sale of Palisades. Third quarter 2022 results included an accrual for an uncertain tax position that resulted from a state tax audit.
Utility as-reported operating revenue less fuel, fuel-related expenses
and gas purchased for resale; purchased power; and
other regulatory charges (credits)-net variance analysis
2023 vs. 2022 ($ EPS)
4Q FY
Electric volume / weather (0.06) 0.02
Retail electric price 0.20 1.14
4Q23 E-LA and E-NO customer sharing of IRS audit resolution (0.34) (0.35)
3Q23 E-TX adjustments to regulatory provisions - 0.11
3Q23 E-TX base rate case relate-back (0.01) (0.04)
3Q23 SERI depreciation rate settlement (largely offset by a - (0.15)
retroactive reduction in depreciation expense)
1Q23 E-LA provision for customer sharing of securitization - (0.37)
benefits
1Q23 E-LA true-up of carrying charges on storm costs - 0.15
3Q22 reg. credit for E-MS 2021 FRP lookback true-up - (0.05)
3Q22 reg. credit for retroactive portion of E-MS 2022 FRP rate - (0.03)
change
2Q22 increase in provision for potential refunds in SERI - 2.01
complaints
2Q22 E-LA provision for customer sharing of securitization - 0.81
benefits
2Q22 reg. provisions for true-up of E-LA and E-TX equity - (0.26)
carrying costs on 2020 storms
2Q22 / 1Q22 reg. provisions for true-up of E-LA and E-TX cost - (0.07)
of debt from 2020 storms
Reg. provisions for decommissioning items (0.01) (0.02)
Grand Gulf recovery (0.02) (0.09)
Other - 0.08
Total (0.24) 2.89
(g) The fourth quarter and full year variances reflect regulatory actions including E-AR's FRP, E-LA's FRP (including riders), E-MS's FRP, various E-MS riders, E-NO's FRP, and E-TX's base rate increase.
In fourth quarter 2023, E-LA and E-NO recorded a regulatory provision for customer sharing of income tax benefits as a result of the 2016-2018 IRS audit resolution (considered an adjustment and excluded
from adjusted earnings). The effects of weather on retail volume were also a driver for the quarter. The full year variance also reflected various regulatory provisions (detailed in the table to the
right), including customer sharing and other items related to securitization and storm cost recovery (the majority of which were considered adjustments and excluded from adjusted earnings).
(h) The fourth quarter earnings decrease from higher Utility other O&M reflected an increase in contract costs related to operational performance, customer service, and organizational health initiatives and
higher power delivery expenses due primarily to an increase in vegetation management. The decrease was partially offset by lower MISO costs, a portion of which was the result of MISO changing its
ancillary generator services market rules (largely offset by lower ancillary generator revenues), and lower benefits costs.
(i) The fourth quarter and full year earnings decreases from higher Parent & Other other O&M were due primarily to the business activity that was previously reported within EWC and is now included in Parent &
Other in 2023.
(j) The fourth quarter and full year earnings decreases from higher Utility depreciation/amortization expense were due to higher plant in service, updated depreciation rates for E-TX, and a fourth quarter
2022 adjustment to SERI's depreciation expense that resulted from FERC's December 2022 order on the sale-leaseback complaint (considered an adjustment and excluded from adjusted earnings). This was
partially offset by the approval of lower depreciation rates at SERI retroactive to March 2022 (largely offset by a regulatory provision to refund the excess depreciation previously collected from
customers).
(k) The fourth quarter and full year earnings increases from higher Utility other income (deductions) were due largely to higher intercompany dividend income from affiliated preferred membership interests
related to storm cost securitizations (largely offset in P&O). The full year earnings increase also reflected a few additional drivers. AFUDC-equity increased due to higher construction work in progress.
In second quarter 2022, two items were recorded as a result of E-LA securitization: a $32 million charge to account for LURC's 1% beneficial interest in a trust established as part of E-LA's 2022
securitization (considered an adjustment and excluded from adjusted earnings), and an adjustment to AFUDC-equity for the approved equity component of carrying costs on 2020 storms not previously recorded
(the portion related to prior years was considered an adjustment and excluded from adjusted earnings). Additionally, the full year increase included changes in nuclear decommissioning trust returns (based
on regulatory treatment, decommissioning-related variances are largely earnings neutral). The full year increase was partially offset by storm restoration carrying costs recorded in first quarter and
second quarter 2022, a $(15 million) ($(15 million) after tax) charge recorded in first quarter 2023 to account for LURC's 1% beneficial interest in a trust established as part of E-LA's 2023 storm cost
securitization (considered an adjustment and excluded from adjusted earnings), and lower carrying costs on deferred fuel balances.
(l) The fourth quarter earnings increase from higher Parent & Other other income (deductions) was due to the timing of charitable contributions and income recorded on legacy EWC pension plans. The increase was
partially offset by changes in intercompany dividends associated with affiliate preferred membership interests resulting from E-LA's securitizations (largely offset at Utility).
(m) The fourth quarter and full year earnings increases from Utility income taxes - other reflected several items. In the fourth quarter 2023, a $568 million income tax benefit was recorded as a result of the
resolution of the 2016-2018 IRS audit (considered an adjustment and excluded from adjusted earnings). Also in fourth quarter 2023, E-LA recorded the reversal of a $106 million regulatory liability
associated with the Hurricane Ida securitization, originally recorded in 2017 as a result of the TCJA (considered an adjustment and excluded from adjusted earnings). In the fourth quarter 2022, a $(13
million) increase in income tax expense was recorded as a result of FERC's sale-leaseback order (considered an adjustment and excluded from adjusted earnings). Additional true-ups totaling $18 million
were recorded in the fourth quarter 2023 compared to $(6 million) in fourth quarter 2022. The full year increase also reflected two additional drivers: a $129 million income tax benefit recorded in first
quarter 2023 related to storm cost securitization financing and a $283 million income tax benefit recorded in second quarter 2022 related to securitization financing (both items were considered
adjustments and excluded from adjusted earnings).
(n) The fourth quarter and full year as-reported earnings increases from Parent & Other income taxes - other was due largely to a $275 million income tax benefit resulting from the resolution of the
2016-2018 IRS audit (considered an adjustment and excluded from adjusted earnings).
(o) The fourth quarter and full year earnings per share impacts from share effect were due to settlement of equity forward sales in November 2022, November 2023, and December 2023 under the company's ATM
program.
(p) The full year earnings increase from Parent & Other operating revenue less fuel, fuel related expenses and gas purchased for resale was due to business activity that was previously reported within EWC and
is now included in Parent & Other in 2023.
(q)
The full year earnings decrease from higher Utility nuclear refueling outage expense was due primarily to higher amortization of ANO 1 refueling outage costs.
(r) The full year earnings increase from lower Utility other O&M reflected lower compensation and benefits costs; lower MISO costs, a portion of which was the result of MISO changing its ancillary generator
services market rules (largely offset by lower ancillary generator revenues); lower non-nuclear generation expenses due primarily to a reduced scope of work; lower customer service center support costs;
lower nuclear generation expenses due primarily to a reduced scope of work and lower labor costs; and the recognition of a DOE award for spent fuel litigation. The increase was partially offset by higher
contract costs related to operational performance, customer service, and organizational health initiatives; higher power delivery expenses due primarily to an increase in vegetation management; and higher
insurance expenses due primarily to lower nuclear insurance refunds in 2023.
(s) The full year as-reported earnings decrease from higher Utility asset write-offs and impairments was due to a third quarter 2023 E-AR write-off totaling $(78 million) ($(59 million) after tax) related
to the 2013 ANO stator incident (considered an adjustment and excluded from adjusted earnings).
(t) The full year as-reported earnings increase from lower Parent & Other asset write-offs and impairments was due to recording a spent fuel litigation settlement related to IPEC in third quarter 2023
(considered an adjustment and excluded from adjusted earnings).
(u)
The full year earnings decrease from higher Utility taxes other than income taxes was due to higher ad valorem taxes.
(v) The full year earnings decrease from lower Parent & Other other income (deductions) was due primarily to changes in dividends from affiliate preferred membership resulting from E-LA's securitizations
(largely offset in Utility), partially offset by the timing of charitable contributions, and higher non-service pension income.
(w)
The full year earnings decrease from higher Utility interest expense was due primarily to higher interest rates as well as higher debt balances.
(x) The full year earnings decrease from higher Parent & Other interest expense was due primarily to higher interest rates on commercial paper and revolver facilities as well as higher commercial paper
balances, partially offset by lower long-term debt balances.
C: Utility operating and financial measures
Appendix C provides a comparison of Utility operating and financial measures.
Appendix C: Utility operating and financial measures
Fourth quarter and full year 2023 vs. 2022
Fourth quarter
Full year
---
2023 2022 % Weather 2023 2022
% % % Weather
Change adjusted Change adjusted
(y) (y)
GWh sold
Residential 7,409 7,916 (6.4) (2.4) 36,372 37,134 (2.1) (0.6)
Commercial 6,355 6,284 1.1 0.5 28,221 27,982 0.9 (0.6)
Governmental 572 583 (1.9) (2.0) 2,458 2,512 (2.1) (2.9)
Industrial 12,984 12,599 3.1 3.1 52,807 52,501 0.6 0.6
Total retail sales 27,320 27,382 (0.2) 0.8 119,858 120,129 (0.2) (0.1)
Wholesale 3,599 3,597 0.1 15,189 15,968 (4.9)
Total sales 30,919 30,979 (0.2) 135,047 136,097 (0.8)
Number of electric retail
customers
Residential 2,581,555 2,564,646 0.7
Commercial 368,665 371,407 (0.7)
Governmental 17,999 18,304 (1.7)
Industrial 46,060 47,711 (3.5)
Total retail customers 3,014,279 3,002,068 0.4
Other O&M and nuclear $28.13 $26.01 8.2 $22.13 $22.32 (0.9)
refueling outage exp. per MWh
Calculations may differ due to rounding
(y) The effects of weather were estimated using heating degree days and cooling degree days for the period from certain locations within each jurisdiction and comparing to "normal" weather based on 20-year
historical data. The models used to estimate weather are updated periodically and are subject to change.
For the full year, excluding the effects of weather, retail sales were essentially flat. Residential and commercial sales each declined (0.6) percent. Industrial sales increased 0.6 percent due to an increase in demand from new/expansion customers, mainly in the primary metals, industrial gases, and petrochemicals industries and higher sales to small industrial customers. The industrial sales increase was partially offset by lower sales to cogen customers.
D: Consolidated financial measures
Appendix D provides comparative financial measures. Financial measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP financial measures.
Appendix D: GAAP and non-GAAP financial measures
Full year 2023 vs. 2022
(
See Appendix F for reconciliation of GAAP to non-GAAP financial measures)
For 12 months ending December 31 2023 2022 Change
GAAP measure
As-reported ROE 17.1 % 9.0 % 8.1 %
Non-GAAP financial measure
Adjusted ROE 10.4 % 10.7 % (0.3) %
As of December 31 ($ in millions, except where noted) 2023 2022 Change
GAAP measures
Cash and
cash equivalents 133 224 (91)
Available revolver
capacity 4,346 4,241 105
Commercial paper 1,138 828 310
Total debt 26,335 26,829 (494)
Securitization
debt 263 293 (30)
Debt to capital 63.8 % 66.9 % (3.1) %
Storm escrows 323 402 (79)
Non-GAAP financial measures ($ in millions, except where noted)
Debt to capital, excluding securitization debt 63.5 % 66.6 % (3.1) %
Net debt to net capital, excluding securitization debt 63.4 % 66.5 % (3.0) %
Gross liquidity 4,478 4,465 13
Net liquidity 3,340 3,638 (298)
Net liquidity, including storm escrows 3,663 4,040 (377)
Parent debt to total debt, excluding securitization debt 19.8 % 18.8 % 1.0 %
FFO to debt, excluding securitization debt 14.3 % 12.4 % 1.9 %
Calculations may differ due to
rounding
E: Definitions and abbreviations and acronyms
Appendix E-1 provides definitions of certain operating measures, as well as GAAP and non-GAAP financial measures.
Appendix E-1: Definitions
Utility operating and financial measures
GWh sold
Total number of GWh sold to retail and wholesale customers
Number of electric retail
Average number of electric customers over the period
customers
Other O&M and refueling
Other operation and maintenance expense plus nuclear refueling outage expense per MWh of total sales
outage expense per MWh
Financial measures - GAAP
As-reported ROE
12-months rolling net income attributable to Entergy Corp. divided by avg. common equity
Debt to capital
Total debt divided by total capitalization
Available revolver capacity
Amount of undrawn capacity remaining on corporate and subsidiary revolvers
Securitization debt
Debt on the balance sheet associated with securitization bonds that is secured by certain future customer collections
Total debt
Sum of short-term and long-term debt, notes payable, and commercial paper
Financial measures - non-GAAP
Adjusted EPS
As-reported EPS excluding adjustments
Adjusted ROE
12-months rolling adjusted net income attributable to Entergy Corp. divided by avg. common equity
Adjustments Unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as significant tax items, and other
items such as certain costs, expenses, or other specified items. In 2022, the results of the EWC segment were considered an adjustment in light of the company's exit from the merchant
nuclear power business.
Debt to capital, excluding
Total debt divided by total capitalization, excluding securitization debt
securitization debt
FFO OCF less AFUDC-borrowed funds, working capital items in OCF (receivables, fuel inventory, accounts payable, taxes accrued, interest accrued, deferred fuel costs, and other working
capital accounts), and securitization regulatory charges
FFO to debt, excluding
12-months rolling FFO as a percentage of end of period total debt excluding securitization debt
securitization debt
Gross liquidity
Sum of cash and available revolver capacity
Net debt to net capital, excl.
Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt
securitization debt
Net liquidity
Sum of cash and available revolver capacity less commercial paper borrowing
Net liquidity, including storm
Sum of cash, available revolver capacity, and escrow accounts available for certain storm expenses, less commercial paper borrowing
escrows
Parent debt to total debt, excl.
Entergy Corp. debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of consolidated total debt, excluding securitization debt
securitization debt
Appendix E-2 explains abbreviations and acronyms used in the quarterly earnings materials.
Appendix E-2: Abbreviations and acronyms
ADIT
Accumulated deferred income taxes HLBV Hypothetical liquidation at book value
AFUDC Allowance for funds used during construction IPEC Indian Point Energy Center (nuclear)
(sold 5/28/21)
AFUDC - Allowance for borrowed funds used during
construction IRS Internal Revenue Service
borrowed funds
AFUDC - equity Allowance for equity funds used during
construction LDC Local distribution company
ALJ
Administrative law judge LNG Liquified natural gas
AMI
Advanced metering infrastructure LPSC Louisiana Public Service Commission
ANO
Arkansas Nuclear One (nuclear) LTM Last twelve months
APSC Arkansas Public Service Commission LURC Louisiana Utility Restoration
Corporation
ATM At the market equity issuance program MISO Midcontinent Independent System
Operator, Inc.
bbl
Barrels MMBtu Million British thermal units
Bcf/D
Billion cubic feet per day Moody's Moody's Investor Service
bps
Basis points MPSC Mississippi Public Service Commission
CAGR
Compound annual growth rate MTEP MISO Transmission Expansion Plan
CCGT
Combined cycle gas turbine NBP National Balancing Point
CCN Certificate for convenience and necessity NYSE New York Stock Exchange
CCNO Council of the City of New Orleans O&M Operations and maintenance
CFO
Cash from operations OCAPS Orange County Advanced Power Station
COD
Commercial operation date OCF Net cash flow provided by operating
activities
DCRF
Distribution cost recovery factor OpCo Utility operating company
DOE
U.S. Department of Energy OPEB Other post-employment benefits
DRM Distribution Recovery Mechanism (rider Other Other non-fuel operation and
within O&M maintenance
E-LA's FRP) expense
E-AR
Entergy Arkansas, LLC P&O
Parent & Other
E-LA
Entergy Louisiana, LLC Palisades Palisades Power Plant (nuclear) (shut
down May
2022, sold June 2022)
E-MS
Entergy Mississippi, LLC PMR Performance Management Rider
E-NO
Entergy New Orleans, LLC PPA Power purchase agreement or purchased
power
agreement
E-TX
Entergy Texas, Inc. PUCT Public Utility Commission of Texas
EEI
Edison Electric Institute RFP
Request for proposals
EPS
Earnings per share ROE
Return on equity
ESG Environmental, social, and governance RSP Rate Stabilization Plan (E-LA Gas)
ETR
Entergy Corporation S&P
Standard & Poor's
EWC
Entergy Wholesale Commodities SEC U.S. Securities and Exchange Commission
FERC Federal Energy Regulatory Commission SERI System Energy Resources, Inc.
Fifth Circuit U.S. Fifth Circuit Court of Appeals TCJA Tax Cuts and Jobs Act of 2017
FFO
Funds from operations TCRF Transmission cost recovery factor
FIN 48 FASB Interpretation No.48, "Accounting for TRAM Tax reform adjustment mechanism
Uncertainty in Income Taxes"
FRP
Formula rate plan TRM Transmission Recovery Mechanism (rider
within
E-LA's FRP)
GAAP U.S. generally accepted accounting
principles UPSA
Unit Power Sales Agreement
GRIP Grid Resilience and innovative Partnership WACC Weighted-average cost of capital
(DOE grant program)
GCRR
Generation Cost Recovery Rider
Grand Gulf or Unit 1 of Grand Gulf Nuclear Station
(nuclear),
GGNS 90% owned or leased by SERI
F: Other GAAP to non-GAAP reconciliations
Appendix F-1, Appendix F-2, and Appendix F-3 provide reconciliations of various non-GAAP financial measures disclosed in this news release to their most comparable GAAP measure.
Appendix F-1: Reconciliation of GAAP to non-GAAP financial measures - ROE
(LTM $ in millions except where noted) Fourth quarter
2023 2022
As-reported net income (loss) attributable to Entergy Corporation (A) 2,357 1,103
Adjustments (B) 919 (217)
Adjusted earnings (non-GAAP) (A-B) 1,438 1,320
Average common equity (average of beginning and ending balances) (C) 13,795 12,302
As-reported ROE (A/C) 17.1 % 9.0 %
Adjusted ROE (non-GAAP) [(A-
B)/C] 10.4 % 10.7 %
Calculations may differ due to
rounding
Appendix F-2: Reconciliation of GAAP to non-GAAP financial measures - debt ratios excluding securitization debt; gross
liquidity; net liquidity; net liquidity, including storm escrows
($ in millions except where noted) Fourth quarter
2023 2022
Total debt
(A) 26,335 26,829
Less securitization debt
(B) 263 293
Total debt, excluding securitization debt
(C) 26,072 26,536
Less cash and cash equivalents
(D) 133 224
Net debt, excluding securitization debt
(E) 25,939 26,312
Commercial paper
(F) 1,138 828
Total capitalization
(G) 41,297 40,113
Less securitization debt
(B) 263 293
Total capitalization, excluding securitization debt
(H) 41,034 39,820
Less cash and cash equivalents
(D) 133 224
Net capital, excluding securitization debt
(I) 40,901 39,596
Debt to capital (A/G) 63.8 % 66.9 %
Debt to capital, excluding securitization debt (non-GAAP) (C/H) 63.5 % 66.6 %
Net debt to net capital, excluding securitization debt (non-GAAP) (E/I) 63.4 % 66.5 %
Available revolver capacity
(J) 4,346 4,241
Storm escrows
(K) 323 402
Gross liquidity (non-GAAP) (D+J) 4,478 4,465
Net liquidity (non-GAAP) (D+J-F) 3,340 3,638
Net liquidity, including storm escrows (non-GAAP) (D+J-F+K) 3,663 4,040
Entergy Corporation notes:
Due September 2025 800 800
Due September 2026 750 750
Due June 2028 650 650
Due June 2030 600 600
Due June 2031 650 650
Due June 2050 600 600
Total Entergy Corporation notes
(L) 4,050 4,050
Revolver draw
(M) 150
Unamortized debt issuance costs and discounts
(N) (37) (43)
Total parent debt (F+L+M+N) 5,151 4,985
Parent debt to total debt, excluding securitization debt (non-GAAP) [(F+L+M+N)/C] 19.8 % 18.8 %
Calculations may differ due to
rounding
Appendix F-3: Reconciliation of GAAP to non-GAAP financial measures - FFO to debt, excluding securitization debt
($ in millions except where noted) Fourth quarter
2023 2022
Total debt (A) 26,335 26,829
Less securitization debt (B) 263 293
Total debt, excluding securitization debt (C) 26,072 26,536
Net cash flow provided by operating activities, LTM (D) 4,294 2,585
AFUDC - borrowed funds, LTM (E) (40) (28)
Working capital items in net cash flow provided by operating
activities, LTM:
Receivables 102 (157)
Fuel inventory (45) 7
Accounts payable (135) (102)
Taxes accrued 10 4
Interest accrued 19 4
Deferred fuel costs 759 (394)
Other working capital accounts (210) (157)
Securitization regulatory charges, LTM 31 62
Total (F) 531 (733)
FFO, LTM (non-GAAP) (G)=(D+E-F) 3,724 3,290
FFO to debt, excluding securitization debt (non-GAAP) (G/C) 14.3 % 12.4 %
Calculations may differ due to
rounding
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SOURCE Entergy Corporation
