Entergy reports first quarter earnings
Company affirms guidance and outlooks
NEW ORLEANS, April 24, 2024 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported first quarter 2024 earnings per share of 35 cents on an as-reported basis and $1.08 on an adjusted (non-GAAP) basis.
"We made very important regulatory progress in recent weeks that will deliver meaningful value for customers and provide certainty for all stakeholders," said Drew Marsh, Entergy Chair and Chief Executive Officer. "We remain squarely on track with clear line of sight to achieve our commitments in 2024 and beyond."
Business highlights included the following:
-- SERI reached an agreement in principle with the CCNO to resolve all of
the CCNO's complaints against SERI; the settlement is subject to FERC
approval.
-- The LPSC approved the first phase of E-LA's resilience and grid
hardening plan of $1.9 billion as well as a timely recovery mechanism
for that investment.
-- E-NO received CCNO approval for a resilience investment that includes a
microgrid that will be co-funded by the DOE as part of a successful GRIP
application.
-- Grand Gulf completed its 24(th) refueling outage in March with a 28-day
duration, the plant's shortest since 2007.
-- E-NO filed an updated Phase 1 resilience and grid hardening plan.
-- E-LA submitted a filing to the LPSC requesting approval to construct
Bayou Power Station, a 112-megawatt floating natural gas power station.
-- E-MS filed its annual formula rate plan.
-- S&P Global Ratings revised its outlook to positive and affirmed all
ratings for SERI following SERI's recent agreement in principle with the
CCNO.
-- Entergy was named as an Outstanding National Key Accounts Customer
Engagement 2023 Award winner by The Edison Electric Institute.
Consolidated earnings (GAAP and non-GAAP measures)
First quarter 2024 vs. 2023
(
See Appendix A for reconciliation of GAAP to non-GAAP measures and description of adjustments)
First quarter
2024 2023
Change
(After-tax, $ in millions)
As-reported earnings 75 311 (236)
Less adjustments (155) 69 (223)
Adjusted earnings (non-GAAP) 230 242 (12)
Estimated weather impact (26) (47) 21
(After-tax, per share in $)
As-reported earnings 0.35 1.47 (1.11)
Less adjustments (0.72) 0.32 (1.05)
Adjusted earnings (non-GAAP) 1.08 1.14 (0.07)
Estimated weather impact (0.12) (0.22) 0.10
Calculations may differ due to rounding
Consolidated results
For first quarter 2024, the company reported earnings of $75 million, or 35 cents per share, on an as-reported basis, and earnings of $230 million, or $1.08 per share, on an adjusted basis. This compared to first quarter 2023 earnings of $311 million, or $1.47 per share, on an as-reported basis, and earnings of $242 million, or $1.14 per share, on an adjusted basis.
Summary discussions by business follow. Additional details, including information on OCF by business, are provided in Appendix A. An analysis of variances by business is provided in Appendix B.
Business segment results
Utility
For first quarter 2024, the Utility business reported earnings attributable to Entergy Corporation of $195 million, or 91 cents per share, on an as-reported basis, and earnings of $350 million, or $1.64 per share, on an adjusted basis. This compared to first quarter 2023 earnings of $397 million, or $1.87 per share, on an as-reported basis and $329 million, or $1.55 per share, on an adjusted basis. Several drivers contributed to the quarter's results.
First quarter 2024 results included the write off of a $132 million ($97 million after tax) regulatory asset at Entergy Arkansas related to the opportunity sales proceeding (considered an adjustment and excluded from adjusted earnings).
First quarter 2024 results also included a regulatory charge of $(79 million) ($(57 million) after tax) recorded by Entergy New Orleans to reflect the company's agreement to share additional income tax benefits from the 2016-2018 IRS audit resolution with customers (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) regulatory provision to share
the benefits from securitization with customers.
Other drivers for the quarter included higher operating expenses including other O&M and depreciation expense.
These drivers were partially offset by:
-- the net effect of regulatory actions across the operating companies,
-- higher other income (deductions) primarily from affiliate preferred
investments (largely offset at P&O) and lower non-service pension costs,
and
-- higher retail sales volume including the effects of weather.
Appendix C contains additional details on Utility operating and financial measures.
Parent & Other
For first quarter 2024, Parent & Other reported a loss attributable to Entergy Corporation of $(120 million), or (56) cents per share, on an as-reported and an adjusted basis. This compared to a first quarter 2023 loss of $(86 million), or (41) cents per share, on an as-reported and an adjusted basis.
The primary driver for the quarter-over-quarter decline was other income (deductions) due primarily to dividends associated with affiliate preferred investments (largely offset at Utility).
Earnings per share guidance
Entergy affirmed its 2024 adjusted EPS guidance range of $7.05 to $7.35. See webcast presentation for additional details.
The company has provided 2024 earnings guidance with regard to the non-GAAP measure of adjusted earnings per share. This measure excludes from the corresponding GAAP financial measure the effect of adjustments as described below under "Non-GAAP financial measures." The company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot predict and quantify with a reasonable degree of confidence all of the adjustments that may occur during the period. Potential adjustments include the exclusion of regulatory charges related to outstanding regulatory complaints and significant income tax items.
Earnings teleconference
A teleconference will be held at 10:00 a.m. Central Time on Wednesday, April 24, 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 May 2, 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.
First quarter 2024 earnings release appendices and financial statements
Appendices
A: Consolidated results and adjustments
B: Earnings variance analysis
C: Utility operating and financial measures
D: Consolidated financial measures
E: Definitions and abbreviations and acronyms
F: Other GAAP to non-GAAP reconciliations
Financial statements
Consolidating balance sheets
Consolidating income statements
Consolidated cash flow statements
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
First quarter 2024 vs. 2023
(See Appendix A-2 and Appendix A-3 for details on adjustments)
First quarter
2024 2023 Change
(After-tax, $ in millions)
As-reported earnings (loss)
Utility 195 397 (202)
Parent & Other (120) (86) (34)
Consolidated 75 311 (236)
Less adjustments
Utility (155) 69 (223)
Parent & Other -
Consolidated (155) 69 (223)
Adjusted earnings (loss) (non-GAAP)
Utility 350 329 21
Parent & Other (120) (86) (34)
Consolidated 230 242 (12)
Estimated weather impact (26) (47) 21
Diluted average number of common shares outstanding (in millions) 214 212 2
(After-tax, per share in $)
(a)
As-reported earnings (loss)
Utility 0.91 1.87 (0.96)
Parent & Other (0.56) (0.41) (0.15)
Consolidated 0.35 1.47 (1.11)
Less adjustments
Utility (0.72) 0.32 (1.05)
Parent & Other -
Consolidated (0.72) 0.32 (1.05)
Adjusted earnings (loss) (non-GAAP)
Utility 1.64 1.55 0.09
Parent & Other (0.56) (0.41) (0.15)
Consolidated 1.08 1.14 (0.07)
Estimated weather impact (0.12) (0.22) 0.10
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)
First quarter 2024 vs. 2023
First quarter
2024 2023 Change
(Pre-tax except for income taxes and totals; $ in millions)
Utility
E-AR write-off of a regulatory asset related to the opportunity sales proceeding (132) (132)
E-NO increase in customer sharing of tax benefits as a result of the 2016-2018 IRS audit resolution (79) (79)
Impacts from storm cost approval and securitization, including customer sharing (excluding income tax item below) - (87) 87
Income tax effect on Utility adjustments above 56 27 29
E-LA income tax benefit resulting from securitization - 129 (129)
Total Utility (155) 69 (223)
Total adjustments (155) 69 (223)
(After-tax, per share in $)
(b)
Utility
E-AR write-off of a regulatory asset related to the opportunity sales proceeding (0.46) (0.46)
E-NO increase in customer sharing of tax benefits as a result of the 2016-2018 IRS audit resolution (0.27) (0.27)
Impacts from storm cost approval and securitization, including customer sharing - 0.32 (0.32)
Total Utility (0.72) 0.32 (1.05)
Total adjustments (0.72) 0.32 (1.05)
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)
First quarter 2024 vs. 2023
(Pre-tax except for income taxes, and totals; $ in millions)
First quarter
2024 2023 Change
Utility
Operating revenues - 31 (31)
Asset write-offs and impairments (132) (132)
Other regulatory charges (credits)
-net (79) (103) 25
Other income (deductions) - (15) 15
Income taxes 56 156 (101)
Total Utility (155) 69 (223)
Total adjustments (155) 69 (223)
Calculations may differ due to rounding
Appendix A-4 provides a comparative summary of OCF by business.
Appendix A-4: Consolidated operating cash flow
First quarter 2024 vs. 2023
($ in millions)
First quarter
2024 2023 Change
Utility 515 978 (463)
Parent & Other 6 (18) 24
Consolidated 521 960 (439)
Calculations may differ due to rounding
OCF decreased for the quarter due primarily to lower receipts from Utility customers, including deferred fuel collection in 2023, and the timing of payments made to vendors.
B: Earnings variance analysis
Appendix B provides details of current quarter 2024 versus 2023 as-reported and adjusted earnings per share variances for Utility and Parent & Other.
Appendix
B
: As-reported and adjusted earnings per share variance analysis
(c)
,
(d)
,
(e)
First quarter 2024 vs. 2023
(After-tax, per share in $)
Utility Parent & Other Consolidated
As- Adjusted As- Adjusted As- Adjusted
reported reported reported
2023 earnings (loss) 1.87 1.55 (0.41) (0.41) 1.47 1.14
Operating revenue less: 0.01 0.06 (f) (0.01) (0.01) 0.05
fuel, fuel-related expenses and gas purchased
for resale; purchased power; and other
regulatory charges (credits)-net
Nuclear refueling outage expense -
Other O&M (0.21) (0.21) (g) 0.02 0.02 (0.19) (0.19)
Asset write-offs and impairments (0.46) (h) (0.46)
Decommissioning expense (0.01) (0.01) (0.01) (0.01)
Taxes other than income taxes (0.03) (0.03) (0.02) (0.02)
Depreciation/amortization exp. (0.16) (0.16) (i) (0.16) (0.16)
Other income (deductions) 0.53 0.46 (j) (0.12) (0.12) (k) 0.41 0.34
Interest expense (0.03) (0.03) (0.04) (0.04) (0.08) (0.08)
Income taxes - other (0.58) 0.03 (l) (0.01) (0.01) (0.59) 0.02
Preferred dividend requirements and -
noncontrolling interests
Share effect (0.01) (0.01) (0.01) (0.01)
2024 earnings (loss) 0.91 1.64 (0.56) (0.56) 0.35 1.08
Calculations may differ due to rounding
(c) Utility operating revenue and Utility income taxes - other exclude the following for the amortization of unprotected excess ADIT
affecting customers' bills (net effect is neutral to earnings) ($ in millions):
1Q24 1Q23
Utility operating revenue 8 (3)
Utility income taxes - other (8) 3
(d) Utility regulatory charges (credits)-net 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):
1Q24 1Q23
Utility regulatory charges (credits)-net (3) (3)
Utility preferred dividend requirements and noncontrolling interest 3 3
(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.
Utility as-reported operating revenue less fuel, fuel-related expenses and gas purchased for resale; purchased power;
and other regulatory charges (credits)-net variance analysis
2024 vs. 2023 ($ EPS)
1Q
Electric volume / weather 0.07
Retail electric price 0.26
1Q24 E-NO provision for increased income tax sharing (0.27)
1Q23 E-LA provision for customer sharing of securitization benefits 0.36
1Q23 E-LA true-up of carrying charges on storm costs (0.14)
Reg. provisions for decommissioning items (0.30)
Other 0.04
Total 0.01
(f) The first quarter increase reflected items resulting from E-LA's securitization in first quarter 2023 including a $103 million ($76
million after tax) regulatory provision for customer sharing and a $31 million ($31 million after tax) true-up of carrying charges on
storm costs (both were considered adjustments and excluded from adjusted earnings). The increase also reflected regulatory actions,
including E-AR's FRP, E-LA's FRP (including riders), E-MS's FRP, and E-TX's base rate and relate back increases. Retail sales
volume, including the effects of weather, was also a driver for the quarter. The variance also reflected a change in regulatory
provisions for decommissioning items (based on regulatory treatment, decommissioning-related variances are offset in other lines items
and are largely earnings neutral). The increase was partially offset by a first quarter 2024 regulatory charge for $(79 million) ($(57
million) after tax) recorded by E-NO to reflect the company's agreement to share additional income tax benefits from the 2016-2018 IRS
audit resolution with customers (considered an adjustment and excluded from adjusted earnings).
(g) The first quarter earnings decrease from higher Utility other O&M reflected higher compensation and benefits costs due primarily to
higher healthcare claims activity; the recognition of an E-AR DOE judgment in first quarter 2023; higher power delivery expenses
including the acceleration of vegetation management and incident readiness and response spending; an increase in contract costs related
to operational performance, customer service, and organizational health initiatives; and higher power generation expenses due primarily
to planned outages at non-nuclear plants.
(h) The first quarter as-reported earnings decrease from higher Utility asset write-offs and impairments was due to the write off of an E-
AR regulatory asset totaling $(132 million) ($(97 million) after tax) related to the opportunity sales proceeding (considered an
adjustment and excluded from adjusted earnings).
(i) The first quarter earnings decrease from higher Utility depreciation/amortization expense was due primarily to higher plant in service,
an increase in depreciation rates for E-TX effective June 2023, and the recognition of depreciation expense from E-TX's 2022 base
rate case relate back. The decrease was partially offset by lower depreciation rates for SERI effective June 2023.
(j) The first quarter increase from higher Utility other income (deductions) was due largely to changes in nuclear decommissioning trust
returns, including portfolio rebalancing in first quarter 2024 (based on regulatory treatment, decommissioning-related variances are
offset in other line items and are largely earnings neutral); higher intercompany dividend income from affiliated preferred membership
interests related to storm cost securitizations (largely offset at P&O); and a decrease in non-service pension costs. The increase
also reflected a $(15 million) ($(15 million) after tax) charge recorded in first quarter 2023 to account for LURC's 1% beneficial
interest in the storm trust established as part of E-LA's March 2023 storm cost securitization (considered an adjustment and excluded
from adjusted earnings).
(k) The first quarter earnings decrease from Parent & Other other income (deductions) was due largely to intercompany dividends associated
with affiliate preferred membership interests resulting from E-LA's securitizations (largely offset at Utility).
(l) The first quarter as-reported earnings decrease from Utility income taxes - other was due largely to a $129 million income tax benefit
recorded in first quarter 2023 related to storm cost securitization financing (considered an adjustment and excluded from adjusted
earnings).
C: Utility operating and financial measures
Appendix C provides a comparison of Utility operating and financial measures.
Appendix C: Utility operating and financial measures
First quarter 2024 vs. 2023
First quarter
2024 2023 % Change % Weather
adjusted
(m)
GWh sold
Residential 7,758 7,276 6.6 1.4
Commercial 6,223 6,248 (0.4) (1.2)
Governmental 572 577 (0.9) 0.6
Industrial 12,661 12,740 (0.6) (0.6)
Total retail sales 27,214 26,841 1.4 (0.1)
Wholesale 3,958 4,502 (12.1)
Total sales 31,172 31,343 (0.5)
Number of electric retail customers
Residential 2,585,994 2,565,292 0.8
Commercial 369,918 367,738 0.6
Governmental 18,136 18,094 0.2
Industrial 43,849 44,784 (2.1)
Total retail customers 3,017,897 2,995,908 0.7
Other O&M and nuclear refueling outage exp. per MWh $23.06 $20.96 10.0
Calculations may differ due to rounding
(m) The effects of weather were estimated using heating degree days and cooling degree days for the period from certain locations within
each jurisdiction and comparing to "normal" weather based on 20-year historical data. The models used to estimate weather are updated
periodically and are subject to change.
For the quarter, on a weather-adjusted basis, retail sales were essentially flat. Residential sales were 1.4 percent higher and commercial sales decreased (1.2) percent. Industrial sales decreased (0.6) percent largely due to lower sales to cogen customers.
D: Consolidated financial measures
Appendix D provides comparative financial measures. Financial measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP financial measures.
Appendix D: GAAP and non-GAAP financial measures
First quarter 2024 vs. 2023
(
See Appendix F for reconciliation of GAAP to non-GAAP financial measures)
For 12 months ending March 31 2024 2023 Change
GAAP measure
As-reported ROE 15.4 % 9.2 % 6.6 %
Non-GAAP financial measure
Adjusted ROE 10.4 % 10.4 % (0.1) %
As of March 31 ($ in millions, except where noted) 2024 2023 Change
GAAP measures
Cash and
cash equivalents 1,295 1,971 (676)
Available revolver
capacity 4,245 4,191 54
Commercial paper 1,914 866 1,048
Total debt 28,493 27,658 835
Securitization
debt 263 293 (30)
Debt to capital 65.8 % 67.4 % (1.7) %
Storm escrows 328 406 (78)
Non-GAAP financial measures ($ in millions, except where noted)
Debt to capital, excluding securitization debt 65.6 % 67.2 % (1.7) %
Net debt to net capital, excluding securitization debt 64.5 % 65.5 % (1.0) %
Gross liquidity 5,540 6,161 (621)
Net liquidity 3,626 5,295 (1,669)
Net liquidity, including storm escrows 3,955 5,702 (1,747)
Parent debt to total debt, excluding securitization debt 21.0 % 18.4 % 2.6 %
FFO to debt, excluding securitization debt 13.2 % 11.4 % 1.7 %
Calculations may differ due to rounding
E: Definitions and abbreviations and acronyms
Appendix E-1 provides definitions of certain operating measures, as well as GAAP and non-GAAP financial measures.
Appendix E-1: Definitions
Utility operating and financial measures
GWh sold
Total number of GWh sold to retail and wholesale customers
Number of electric retail customers
Average number of electric customers over the period
Other O&M and refueling outage expense per MWh Other operation and maintenance expense plus nuclear refueling outage expense per MWh of total
sales
Financial measures - GAAP
As-reported ROE 12-months rolling net income attributable to Entergy Corp. divided by avg. common equity
Debt to capital
Total debt divided by total capitalization
Available revolver capacity
Amount of undrawn capacity remaining on corporate and subsidiary revolvers
Securitization debt Debt on the balance sheet associated with securitization bonds that is secured by certain future
customer collections
Total debt
Sum of short-term and long-term debt, notes payable, and commercial paper
Financial measures - non-GAAP
Adjusted EPS
As-reported EPS excluding adjustments
Adjusted ROE 12-months rolling adjusted net income attributable to Entergy Corp. divided by avg. common equity
Adjustments Unusual or non-recurring items or events or other items or events that management believes do not
reflect the ongoing business of Entergy, such as significant tax items, and other items such as
certain costs, expenses, or other specified items
Debt to capital, excluding securitization debt
Total debt divided by total capitalization, excluding securitization debt
FFO OCF less AFUDC-borrowed funds, working capital items in OCF (receivables, fuel inventory,
accounts payable, taxes accrued, interest accrued, deferred fuel costs, and other working capital
accounts), and securitization regulatory charges
FFO to debt, excluding securitization debt 12-months rolling FFO as a percentage of end of period total debt excluding securitization debt
Gross liquidity
Sum of cash and available revolver capacity
Net debt to net capital, excl. securitization debt Total debt less cash and cash equivalents divided by total capitalization less cash and cash
equivalents, excluding securitization debt
Net liquidity
Sum of cash and available revolver capacity less commercial paper borrowing
Net liquidity, including storm escrows Sum of cash, available revolver capacity, and escrow accounts available for certain storm
expenses, less commercial paper borrowing
Parent debt to total debt, excl. securitization debt Entergy Corp. debt, including amounts drawn on credit revolver and commercial paper facilities, as
a percent of consolidated total debt, excluding securitization debt
Appendix E-2 explains abbreviations and acronyms used in the quarterly earnings materials.
Appendix E-2: Abbreviations and acronyms
ADIT Accumulated deferred income taxes Grand Gulf Unit 1 of Grand Gulf Nuclear Station
or (nuclear),
GGNS 90% owned or leased by SERI
AFUDC - Allowance for borrowed funds used
during
borrowed funds construction HLBV Hypothetical liquidation at book value
AFUDC - equity Allowance for equity funds used during IPEC Indian Point Energy Center (nuclear)
construction (sold 5/28/21)
Administrative law judge
Internal Revenue Service
ALJ IRS
Advanced metering infrastructure
Local distribution company
AMI LDC
Arkansas Nuclear One (nuclear)
Liquified natural gas
ANO LNG
Arkansas Public Service Commission Louisiana Public Service Commission
APSC LPSC
At the market equity issuance program
Last twelve months
ATM LTM
Barrels Louisiana Utility Restoration
Corporation
bbl LURC
Billion cubic feet per day Midcontinent Independent System
Operator, Inc.
Bcf/d MISO
Basis points Million British thermal units
bps MMBtu
Compound annual growth rate
Moody's Investor Service
CAGR Moody's
Combined cycle gas turbine Mississippi Public Service Commission
CCGT MPSC
Certificate for convenience and
necessity MISO Transmission Expansion Plan
CCN MTEP
Council of the City of New Orleans
National Balancing Point
CCNO NBP
Cash from operations Nuclear decommissioning trust
CFO NDT
Commercial operation date
New York Stock Exchange
COD NYSE
Construction work in process
Operations and maintenance
CWIP O&M
Distribution cost recovery factor Net cash flow provided by operating
activities
DCRF OCF
U.S. Department of Energy
Utility operating company
DOE OpCo
Distribution Recovery Mechanism (rider
within Other post-employment benefits
DRM E-LA's FRP) OPEB
Other non-fuel operation and
maintenance
Entergy Arkansas, LLC Other O&M expense
E-AR
Entergy Louisiana, LLC
Parent & Other
E-LA
Entergy Mississippi, LLC P&O
Performance Management Rider
E-MS
Entergy New Orleans, LLC PMR Power purchase agreement or purchased
power
agreement
E-NO
Entergy Texas, Inc. PPA
Public Utility Commission of Texas
E-TX
Edison Electric Institute
Request for proposals
EEI
Earnings per share PUCT
Return on equity
EPS Environmental, social, and governance RFP
Rate Stabilization Plan (E-LA Gas)
ESG
Entergy Corporation ROE
Standard & Poor's
ETR Federal Energy Regulatory Commission RSP
U.S. Securities and Exchange Commission
FERC U.S. Fifth Circuit Court of Appeals S&P
System Energy Resources, Inc.
Fifth Circuit
Funds from operations SEC
Tax Cuts and Jobs Act of 2017
FFO FASB Interpretation No.48, "Accounting
for SERI
Uncertainty in Income Taxes" Transmission cost recovery factor
FIN 48 TCJA
Formula rate plan Tax reform adjustment mechanism
TCRF
U.S. generally accepted accounting Transmission Recovery Mechanism (rider
principles within
FRP TRAM E-LA's FRP)
Grid Resilience and Innovation
Partnerships
GAAP (DOE grant program) TRM
Unit Power Sales Agreement
GRIP Generation Cost Recovery Rider Weighted-average cost of capital
UPSA
GCRR WACC
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) First quarter
2024 2023
As-reported net income (loss) attributable to Entergy Corporation (A) 2,121 1,138
Adjustments (B) 695 (155)
Adjusted earnings (non-GAAP) (A-B) 1,426 1,293
Average common equity (average of beginning and ending balances) (C) 13,758 12,384
As-reported ROE (A/C) 15.4 % 9.2 %
Adjusted ROE (non-GAAP) [(A-
B)/C] 10.4 % 10.4 %
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) First quarter
2024 2023
Total debt
(A) 28,493 27,658
Less securitization debt
(B) 263 293
Total debt, excluding securitization debt
(C) 28,230 27,365
Less cash and cash equivalents
(D) 1,295 1,971
Net debt, excluding securitization debt
(E) 26,935 25,395
Commercial paper
(F) 1,914 866
Total capitalization
(G) 43,287 41,044
Less securitization debt
(B) 263 293
Total capitalization, excluding securitization debt
(H) 43,024 40,751
Less cash and cash equivalents
(D) 1,295 1,971
Net capital, excluding securitization debt
(I) 41,729 38,781
Debt to capital
(A/G) 65.8 % 67.4 %
Debt to capital, excluding securitization debt (non-GAAP)
(C/H) 65.6 % 67.2 %
Net debt to net capital, excluding securitization debt (non-GAAP)
(E/I) 64.5 % 65.5 %
Available revolver capacity
(J) 4,245 4,191
Storm escrows
(K) 328 406
Gross liquidity (non-GAAP)
(D+J) 5,540 6,161
Net liquidity (non-GAAP)
(D+J-F) 3,626 5,295
Net liquidity, including storm escrows (non-GAAP)
(D+J-F+K) 3,955 5,702
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) (36) (41)
Total parent debt
(F+L+M+N) 5,928 5,024
Parent debt to total debt, excluding securitization debt (non-GAAP) [(F+L+M+N)/C] 21.0 % 18.4 %
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) First quarter
2024 2023
Total debt (A) 28,493 27,658
Less securitization debt (B) 263 293
Total debt, excluding securitization debt (C) 28,230 27,365
Net cash flow provided by operating activities, LTM (D) 3,856 3,007
AFUDC - borrowed funds, LTM (E) (41) (31)
Working capital items in net cash flow provided by operating activities, LTM:
Receivables (63) (8)
Fuel inventory (10) (37)
Accounts payable (83) (159)
Taxes accrued 13 17
Interest accrued 18 2
Deferred fuel costs 409 108
Other working capital accounts (215) (130)
Securitization regulatory charges, LTM 28 55
Total (F) 98 (152)
FFO, LTM (non-GAAP) (G)=(D+E-
F) 3,718 3,127
FFO to debt, excluding securitization debt (non-GAAP) (G/C) 13.2 % 11.4 %
Calculations may differ due to rounding
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SOURCE Entergy Corporation
