Company narrows guidance and extends financial outlooks
NEW ORLEANS, Nov. 2, 2022 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported third quarter 2022 earnings per share of $2.74 on an as-reported basis and $2.84 on an adjusted basis (non-GAAP).
"We continued to make meaningful progress in the third quarter, executing our strategy across regulatory, financial, and operational paths to create sustainable value for all our stakeholders," said Drew Marsh, Entergy chief executive officer. "We expect to deliver strong results for 2022 driven by the growth of our regulated operations. We remain laser focused on affordability and reliability for our customers, while advancing initiatives that support their growth, resilience, and clean energy goals."
Business highlights included the following:
- Entergy narrowed its 2022 adjusted EPS guidance range to $6.25 to $6.45.
- The APSC approved Driver Solar, a 250 MW solar facility that will support US Steel.
- The LPSC approved four solar projects totaling 475 MW.
- The LPSC approved Entergy's Geaux Green option, a new asset-based green tariff.
- E-LA completed its longest underground distribution project in Southeast Louisiana, adding to upgrades that have increased the resilience of the electric system.
- E-LA completed a 230kV Mississippi River transmission crossing, with key towers upgraded to withstand winds of up to 175 mph.
- E-TX and an affiliate of New Fortress Energy Inc. signed an MOU to collaborate on the development of renewable energy and hydrogen infrastructure in Southeast Texas.
- The CCNO approved $206 million securitization recovery for E-NO's Hurricane Ida costs and replenishment of the company's storm escrow.
- Entergy's Board of Directors declared a quarterly dividend of $1.07 per share, a six percent increase.
- Entergy was named as one of the nation's top utilities in economic development by Site Selection magazine for the 15th consecutive year.
Consolidated earnings (GAAP and non-GAAP measures) | ||||||
Third quarter and year-to-date 2022 vs. 2021 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of adjustments) | ||||||
Third quarter | Year-to-date | |||||
2022 | 2021 | Change | 2022 | 2021 | Change | |
(After-tax, $ in millions) | ||||||
As-reported earnings | 561 | 531 | 30 | 997 | 860 | 137 |
Less adjustments | (19) | 37 | (56) | (216) | (201) | (15) |
Adjusted earnings (non-GAAP) | 580 | 494 | 85 | 1,213 | 1,061 | 152 |
Estimated weather impact | 21 | (9) | 29 | 86 | (1) | 87 |
(After-tax, per share in $) | ||||||
As-reported earnings | 2.74 | 2.63 | 0.11 | 4.88 | 4.26 | 0.62 |
Less adjustments | (0.10) | 0.18 | (0.28) | (1.06) | (1.00) | (0.06) |
Adjusted earnings (non-GAAP) | 2.84 | 2.45 | 0.39 | 5.94 | 5.26 | 0.68 |
Estimated weather impact | 0.10 | (0.04) | 0.14 | 0.42 | - | 0.42 |
Calculations may differ due to rounding |
For third quarter 2022, the company reported earnings of $561 million, or $2.74 per share, on an as-reported basis, and earnings of $580 million, or $2.84 per share, on an adjusted basis. This compared to third quarter 2021 earnings of $531 million, or $2.63 per share, on an as-reported basis, and earnings of $494 million, or $2.45 per share, on an adjusted basis.
Summary discussions by business are below. Additional details, including information on OCF by business, are provided in Appendix A. An analysis of quarterly and year-to-date variances by business is provided in Appendix B.
Utility
For third quarter 2022, the Utility business reported earnings attributable to Entergy Corporation of $672 million, or $3.29 per share, on both an as-reported and adjusted basis. This compared to third quarter 2021 earnings of $570 million, or $2.82 per share, on an as-reported basis and $559 million, or $2.77 per share, on an adjusted basis. Drivers for the change in quarterly earnings included:
- the net effect of regulatory actions across the operating companies;
- higher retail sales volume, including the effects of weather; and
- higher income from affiliate preferred investments (offset at P&O and largely earnings neutral at the consolidated level).
The drivers were partially offset by:
- higher operating expenses including other O&M and depreciation expense, and
- higher interest expense.
On a per share basis, third quarter 2022 results reflected higher diluted average number of common shares outstanding.
Appendix C contains additional details on Utility operating and financial measures.
Parent & Other
For third quarter 2022, Parent & Other reported a loss attributable to Entergy Corporation of $(92 million), or (45) cents per share, on both an as-reported and an adjusted basis. This compared to a third quarter 2021 loss of $(65 million), or (32) cents per share, on both an as-reported and an adjusted basis. The primary driver for the quarter was the impact from affiliate preferred investments (offset at Utility and largely earnings neutral at the consolidated level).
On a per share basis, third quarter 2022 results reflected higher diluted average number of common shares outstanding.
Entergy Wholesale Commodities
For third quarter 2022, EWC reported a loss attributable to Entergy Corporation of $(19 million), or (10) cents per share, on an as-reported basis. This compared to third quarter 2021 earnings of $26 million, or 13 cents per share, on an as-reported basis. The primary drivers for the quarter were:
- the shutdown of Palisades in May 2022 and other items associated with the wind-down of EWC, and
- income taxes.
On a per share basis, third quarter 2022 results reflected higher diluted average number of common shares outstanding.
Appendix D contains additional details on EWC operating and financial measures, including reconciliation for non-GAAP EWC adjusted EBITDA.
Entergy narrowed its 2022 adjusted EPS guidance to a range of $6.25 to $6.45. See webcast presentation for additional details.
The company has provided 2022 earnings guidance with regard to the non-GAAP measure of Entergy adjusted EPS. This measure excludes from the corresponding GAAP financial measure the effect of adjustments as described below under "Non-GAAP financial measures." The company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot predict and quantify with a reasonable degree of confidence all of the adjustments that may occur during the period. One adjustment is the exclusion of EWC earnings from Entergy adjusted EPS. We currently estimate that the contribution of EWC to Entergy's as-reported EPS will be approximately 25 cents in 2022.
A teleconference will be held at 10:00 a.m. Central Time on Wednesday, November 2, 2022, to discuss Entergy's quarterly earnings announcement and the company's financial performance. The teleconference and a replay of the teleconference may be accessed by visiting Entergy's website at www.entergy.com; for participants who would like to participate via telephone, please register at https://register.vevent.com/register/BIa229a822b57a4806a2dade35096b07b8 to receive the dial-in number along with a unique PIN that is required to access the call (the registration link can also be found on Entergy's website). The webcast presentation is also being posted to Entergy's website concurrent with this news release.
Entergy Corporation, a Fortune 500 company headquartered in New Orleans, powers life for 3 million customers through its operating companies across Arkansas, Louisiana, Mississippi, and Texas. Entergy is creating a cleaner, more resilient energy future for everyone with our diverse power generation portfolio, including increasingly carbon-free energy sources. With roots in the Gulf South region for more than a century, Entergy is a recognized leader in corporate citizenship, delivering more than $100 million in economic benefits to local communities through philanthropy and advocacy efforts annually over the last several years. Our approximately 12,000 employees are dedicated to powering life today and for future generations.
Entergy Corporation's common stock is listed on the New York Stock Exchange and NYSE Chicago under the symbol "ETR".
Details regarding Entergy's results of operations, regulatory proceedings, and other matters are available in this earnings release, a copy of which will be filed with the SEC, and the webcast presentation. Both documents are available on Entergy's Investor Relations website at www.entergy.com/investor_relations.
Entergy maintains a web page as part of its Investor Relations website, entitled Regulatory and Other Information, which provides investors with key updates 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 F.
This news release contains non-GAAP financial measures, which are generally numerical measures of a company's performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Entergy has provided quantitative reconciliations within this news release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Entergy reports earnings using the non-GAAP measure of Entergy adjusted earnings, which excludes the effect of certain "adjustments," including the removal of the Entergy Wholesale Commodities segment in light of the company's exit from the merchant power business. Adjustments are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as the results of the EWC segment, significant tax items, and other items such as certain costs, expenses, or other specified items. In addition to reporting GAAP consolidated earnings on a per share basis, Entergy reports its adjusted earnings on a per share basis. These per share measures represent the applicable earnings amount divided by the diluted average number of common shares outstanding for the period.
Management uses the non-GAAP financial measures of adjusted earnings and adjusted earnings per share for, among other things, financial planning and analysis; reporting financial results to the board of directors, employees, stockholders, analysts, and investors; and internal evaluation of financial performance. Entergy believes that these non-GAAP financial measures provide useful information to investors in evaluating the ongoing results of Entergy's business, comparing period to period results, and comparing Entergy's financial performance to the financial performance of other companies in the utility sector.
Other non-GAAP measures, including adjusted EBITDA; adjusted ROE; adjusted ROE, excluding affiliate preferred; gross liquidity; net liquidity; net liquidity, including storm escrows; debt to capital, excluding securitization debt; net debt to net capital, excluding securitization debt; parent debt to total debt, excluding securitization debt; FFO to debt, excluding securitization debt; and FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC, are measures Entergy uses internally for management and board discussions and to gauge the overall strength of its business. Entergy believes the above data provides useful information to investors in evaluating Entergy's ongoing financial results and flexibility, and assists investors in comparing Entergy's credit and liquidity to the credit and liquidity of others in the utility sector. In addition, ROE is included on both an adjusted and an as-reported basis. Metrics defined as "adjusted" (other than EWC's adjusted EBITDA) exclude the effect of adjustments as defined above. EWC's adjusted EBITDA represents EWC's earnings before interest, taxes, and depreciation and amortization, and also excludes decommissioning expense.
These non-GAAP financial measures reflect an additional way of viewing aspects of Entergy's operations that, when viewed with Entergy's GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting Entergy's business. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. Investors are strongly encouraged to review Entergy's consolidated financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Although certain of these measures are intended to assist investors in comparing Entergy's performance to other companies in the utility sector, non-GAAP financial measures are not standardized; therefore, it might not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
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 2022 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 fund values or earnings or in the timing or cost of decommissioning Entergy's nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with executing on business strategies, including strategic transactions that Entergy or its subsidiaries may undertake and the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) impacts from terrorist attacks, geopolitical conflicts, cybersecurity threats, data security breaches, or other attempts to disrupt Entergy's business or operations, and/or other catastrophic events; (i) the direct and indirect impacts of the COVID-19 pandemic on Entergy and its customers; and (j) 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.
Appendices
A: Consolidated results and adjustments
B: Earnings variance analysis
C: Utility operating and financial measures
D: EWC operating and financial measures
E: Consolidated financial measures
F: Definitions and abbreviations and acronyms
G: Other GAAP to Non-GAAP reconciliations
Financial statements
Consolidating balance sheets
Consolidating income statements
Consolidated cash flow statements
Appendix A-1 provides a comparative summary of consolidated earnings, including a reconciliation of as-reported earnings (GAAP) to adjusted earnings (non-GAAP).
Appendix A-1: Consolidated earnings - reconciliation of GAAP to non-GAAP measures Third quarter and year-to-date 2022 vs. 2021 (See Appendix A-2 and Appendix A-3 for details on adjustments) | ||||||
Third quarter | Year-to-date | |||||
2022 | 2021 | Change | 2022 | 2021 | Change | |
(After-tax, $ in millions) | ||||||
As-reported earnings (loss) | ||||||
Utility | 672 | 570 | 102 | 1,166 | 1,253 | (87) |
Parent & Other | (92) | (65) | (28) | (244) | (181) | (63) |
EWC | (19) | 26 | (45) | 75 | (212) | 287 |
Consolidated | 561 | 531 | 30 | 997 | 860 | 137 |
Less adjustments | ||||||
Utility | - | 11 | (11) | (291) | 11 | (302) |
Parent & Other | - | - | - | - | - | - |
EWC | (19) | 26 | (45) | 75 | (212) | 287 |
Consolidated | (19) | 37 | (56) | (216) | (201) | (15) |
Adjusted earnings (loss) (non-GAAP) | ||||||
Utility | 672 | 559 | 113 | 1,457 | 1,242 | 215 |
Parent & Other | (92) | (65) | (28) | (244) | (181) | (63) |
EWC | - | - | - | - | - | - |
Consolidated | 580 | 494 | 85 | 1,213 | 1,061 | 152 |
Estimated weather impact | 21 | (9) | 29 | 86 | (1) | 87 |
Diluted average number of common shares outstanding (in millions) | 205 | 202 | 3 | 204 | 202 | 3 |
(After-tax, per share in $) (a) | ||||||
As-reported earnings (loss) | ||||||
Utility | 3.29 | 2.82 | 0.47 | 5.70 | 6.21 | (0.51) |
Parent & Other | (0.45) | (0.32) | (0.13) | (1.19) | (0.90) | (0.29) |
EWC | (0.10) | 0.13 | (0.23) | 0.37 | (1.05) | 1.42 |
Consolidated | 2.74 | 2.63 | 0.11 | 4.88 | 4.26 | 0.62 |
Less adjustments | ||||||
Utility | - | 0.05 | (0.05) | (1.43) | 0.05 | (1.48) |
Parent & Other | - | - | - | - | - | - |
EWC | (0.10) | 0.13 | (0.23) | 0.37 | (1.05) | 1.42 |
Consolidated | (0.10) | 0.18 | (0.28) | (1.06) | (1.00) | (0.06) |
Adjusted earnings (loss) (non-GAAP) | ||||||
Utility | 3.29 | 2.77 | 0.52 | 7.13 | 6.16 | 0.97 |
Parent & Other | (0.45) | (0.32) | (0.13) | (1.19) | (0.90) | (0.29) |
EWC | - | - | - | - | - | - |
Consolidated | 2.84 | 2.45 | 0.39 | 5.94 | 5.26 | 0.68 |
Estimated weather impact | 0.10 | (0.04) | 0.14 | 0.42 | - | 0.42 |
Calculations may differ due to rounding | |
(a) | Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period. |
See Appendix B for detailed earnings variance analysis.
Appendix A-2 and Appendix A-3 detail adjustments by business. Adjustments are included in as-reported earnings consistent with GAAP but are excluded from adjusted earnings. As a result, adjusted earnings is considered a non-GAAP measure.
Appendix A-2: Adjustments by driver (shown as positive/(negative) impact on earnings or EPS) | ||||||
Third quarter and year-to-date 2022 vs. 2021 | ||||||
Third quarter | Year-to-date | |||||
2022 | 2021 | Change | 2022 | 2021 | Change | |
(Pre-tax except for income taxes, preferred dividend requirements, and totals; $ in millions) | ||||||
Utility | ||||||
E-LA and E-TX true-up for prior year's portion of the equity component of carrying costs for 2020 storms | - | - | - | 41 | - | 41 |
E-LA contribution to the LURC related to securitization | - | - | - | (32) | - | (32) |
E-LA customer-sharing of securitization benefits | - | - | - | (224) | - | (224) |
SERI litigation settlement regulatory charge | - | - | - | (551) | - | (551) |
Gain on sale | - | 15 | (15) | - | 15 | (15) |
Income tax effect on Utility adjustment above | - | (4) | 4 | 192 | (4) | 196 |
E-LA tax benefit resulting from securitization | - | - | - | 283 | - | 283 |
Total Utility | - | 11 | (11) | (291) | 11 | (302) |
EWC | ||||||
Income before income taxes | - | 35 | (35) | 123 | (258) | 381 |
Income taxes | (18) | (9) | (9) | (46) | 47 | (94) |
Preferred dividend requirements | (1) | (1) | - | (2) | (2) | - |
Total EWC | (19) | 26 | (45) | 75 | (212) | 287 |
Total adjustments | (19) | 37 | (56) | (216) | (201) | (15) |
(After-tax, per share in $) (b) | ||||||
Utility | ||||||
E-LA and E-TX true-up for prior year's portion of the equity component of carrying costs for 2020 storms | - | - | - | 0.17 | - | 0.17 |
E-LA contribution to the LURC related to securitization | - | - | - | (0.15) | - | (0.15) |
E-LA customer-sharing of securitization benefits | - | - | - | (0.81) | - | (0.81) |
SERI litigation settlement regulatory charge | - | - | - | (2.02) | - | (2.02) |
E-LA tax benefit resulting from securitization | - | - | - | 1.38 | - | 1.38 |
Gain on sale | - | 0.05 | (0.05) | - | 0.05 | (0.05) |
Total Utility | - | 0.05 | (0.05) | (1.43) | 0.05 | (1.48) |
EWC | ||||||
Total EWC | (0.10) | 0.13 | (0.23) | 0.37 | (1.05) | 1.42 |
Total adjustments | (0.10) | 0.18 | (0.28) | (1.06) | (1.00) | (0.06) |
Calculations may differ due to rounding | |
(b) | Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period. |
Appendix A-3: Total adjustments by income statement line item (shown as positive/(negative) impact on earnings) | ||||||
Third quarter and year-to-date 2022 vs. 2021 | ||||||
(Pre-tax except for income taxes, preferred dividend requirements, and totals; $ in millions) | ||||||
Third quarter | Year-to-date | |||||
2022 | 2021 | Change | 2022 | 2021 | Change | |
Utility | ||||||
Operating revenues | - | - | - | 46 | - | 46 |
Other regulatory charges (credits)–net | - | - | - | (775) | - | (775) |
Other income (deductions)–other | - | - | - | (37) | - | (37) |
Other O&M | - | 15 | (15) | - | 15 | (15) |
Income taxes | - | (4) | 4 | 474 | (4) | 478 |
Total Utility | - | 11 | (11) | (291) | 11 | (302) |
EWC | ||||||
Operating revenues | 62 | 162 | (100) | 301 | 559 | (258) |
Fuel and fuel-related expenses | (30) | (24) | (5) | (81) | (63) | (18) |
Purchased power | (24) | (22) | (2) | (64) | (58) | (6) |
Nuclear refueling outage expense | - | (11) | 11 | (18) | (34) | 15 |
Other O&M | (10) | (51) | 41 | (94) | (233) | 140 |
Asset write-off and impairments | - | - | - | 163 | (345) | 509 |
Decommissioning expense | - | (14) | 13 | (28) | (106) | 78 |
Taxes other than income taxes | (1) | (2) | 1 | (13) | (15) | 1 |
Depreciation/amortization exp. | (1) | (9) | 7 | (13) | (36) | 23 |
Other income (deductions)–other | 6 | 9 | (3) | (26) | 84 | (109) |
Interest exp. and other charges | (2) | (3) | 1 | (5) | (11) | 6 |
Income taxes | (18) | (9) | (9) | (46) | 47 | (94) |
Preferred dividend requirements | (1) | (1) | - | (2) | (2) | - |
Total EWC | (19) | 26 | (45) | 75 | (212) | 287 |
Total adjustments | (19) | 37 | (56) | (216) | (201) | (15) |
Calculations may differ due to rounding |
Appendix A-4 provides a comparative summary of OCF by business.
Appendix A-4: Consolidated operating cash flow | ||||||
Third quarter and year-to-date 2022 vs. 2021 | ||||||
($ in millions) | ||||||
Third quarter | Year-to-date | |||||
2022 | 2021 | Change | 2022 | 2021 | Change | |
Utility | 1,086 | 1,289 | (203) | 1,942 | 2,226 | (284) |
Parent & Other | (36) | (68) | 32 | (155) | (154) | (1) |
EWC | (56) | 43 | (100) | 22 | (62) | 84 |
Consolidated | 993 | 1,264 | (271) | 1,809 | 2,011 | (202) |
Calculations may differ due to rounding |
OCF decreased quarter-over-quarter due to several drivers, including higher Utility fuel and purchased power payments, the wind-down of EWC, higher Utility other O&M spending, and higher Utility refueling outage spending. These decreases were partially offset by higher Utility customer receipts and lower pension contributions.
Appendix B-1 and Appendix B-2 provide details of current quarter and year-to-date 2022 versus 2021 as-reported and adjusted earnings per share variances for Utility, Parent & Other, and EWC.
Appendix B-1: As-reported and adjusted earnings per share variance analysis (c), (d), (e) | ||||||||||
Third quarter 2022 vs. 2021 | ||||||||||
(After-tax, per share in $) | ||||||||||
Utility | Parent & Other | EWC | Consolidated | |||||||
As- | Adjusted | As- | Adjusted | As- reported | As- reported | Adjusted | ||||
2021 earnings (loss) | 2.82 | 2.77 | (0.32) | (0.32) | 0.13 | 2.63 | 2.45 | |||
Operating revenue less: Fuel, fuel-related expenses and gas purchased for resale, Purchased power, and Regulatory charges (credits)–net | 1.33 | 1.33 | (f) | - | - | (0.42) | (g) | 0.91 | 1.33 | |
Nuclear refueling outage expense | (0.03) | (0.03) | - | - | 0.04 | 0.01 | (0.03) | |||
Other O&M | (0.49) | (0.44) | (h) | (0.01) | (0.01) | 0.16 | (i) | (0.34) | (0.45) | |
Asset write-offs and impairments | - | - | - | - | - | - | - | |||
Decommissioning expense | (0.01) | (0.01) | - | - | 0.05 | (j) | 0.04 | (0.01) | ||
Taxes other than income taxes | (0.03) | (0.03) | - | - | - | (0.03) | (0.03) | |||
Depreciation/amortization exp. | (0.15) | (0.15) | (k) | - | - | 0.03 | (0.12) | (0.15) | ||
Other income (deductions)-other | (0.10) | (0.10) | (l) | (0.12) | (0.12) | (m) | (0.01) | (0.23) | (0.22) | |
Interest expense | (0.05) | (0.05) | (n) | (0.01) | (0.01) | - | (0.06) | (0.06) | ||
Income taxes–other | 0.04 | 0.04 | - | - | (0.08) | (o) | (0.04) | 0.04 | ||
Share effect | (0.04) | (0.04) | 0.01 | 0.01 | - | (0.03) | (0.03) | |||
2022 earnings (loss) | 3.29 | 3.29 | (0.45) | (0.45) | (0.10) | 2.74 | 2.84 | |||
Appendix B-2: As-reported and adjusted earnings variance analysis (c), (d), (e) | ||||||||||
Year-to-date 2022 vs. 2021 | ||||||||||
(After-tax, per share in $) | ||||||||||
Utility | Parent & Other | EWC | Consolidated | |||||||
As- | Adjusted | As- | Adjusted | As- Reported | As- Reported | Adjusted | ||||
2021 earnings (loss) | 6.21 | 6.16 | (0.90) | (0.90) | (1.05) | 4.26 | 5.26 | |||
Operating revenue less: Fuel, fuel-related expenses and gas purchased for resale, Purchased power, and Regulatory charges (credits)–net | (0.12) | 2.51 | (f) | - | - | (1.10) | (g) | (1.22) | 2.51 | |
Nuclear refueling outage expense | (0.02) | (0.02) | - | - | 0.06 | (p) | 0.04 | (0.02) | ||
Other O&M | (0.71) | (0.66) | (h) | (0.03) | (0.03) | 0.55 | (i) | (0.19) | (0.69) | |
Asset write-offs and impairments | - | - | - | - | 1.99 | (q) | 1.99 | - | ||
Decommissioning expense | (0.03) | (0.03) | - | - | 0.31 | (j) | 0.28 | (0.03) | ||
Taxes other than income taxes | (0.18) | (0.18) | (r) | - | - | 0.01 | (0.17) | (0.18) | ||
Depreciation/amortization exp. | (0.38) | (0.38) | (k) | - | - | 0.09 | (s) | (0.29) | (0.38) | |
Other income (deductions)–other | (0.28) | (0.10) | (l) | (0.18) | (0.18) | (m) | (0.43) | (t) | (0.89) | (0.28) |
Interest exp. and other charges | (0.15) | (0.15) | (n) | (0.07) | (0.07) | (u) | 0.02 | (0.20) | (0.22) | |
Income taxes–other | 1.44 | 0.06 | (v) | (0.03) | (0.03) | (0.07) | (o) | 1.34 | 0.03 | |
Share effect | (0.08) | (0.08) | (w) | 0.02 | 0.02 | (0.01) | (0.07) | (0.06) | ||
2022 earnings (loss) | 5.70 | 7.13 | (1.19) | (1.19) | 0.37 | 4.88 | 5.94 | |||
Calculations may differ due to rounding | |
(c) | Utility operating revenue / regulatory charges and Utility income taxes-other exclude the following for the return of unprotected excess ADIT to customers (net effect is neutral to earnings) ($ in millions): |
3Q22 | 3Q21 | YTD22 | YTD21 |
16 | 17 | 50 | 72 |
(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): |
3Q22 | 3Q21 | YTD22 | YTD21 |
10 | - | 12 | - |
(e) | EPS effect is calculated by multiplying the pre-tax variance by the estimated income tax rate that is expected to apply and dividing by diluted average number of common shares outstanding for the prior period; income taxes–other represents income tax differences other than the tax effect of individual line items. |
(f) | The third quarter and year-to-date variances reflected favorable volume, including the effects of weather. Variances also reflect regulatory actions including E-AR's FRP; E-LA's FRP, including riders; E-MS's FRP; E-NO's FRP; and E-TX's TCRF and DCRF. The variances also included third quarter 2022 and third quarter 2021 regulatory credits at |
(g) | The third quarter and year-to-date earnings decreases were due largely to the shutdown of Palisades in May 2022. The year-to-date variance also reflected the shutdown of Indian Point 3 in April 2021. |
(h) | The third quarter and year-to-date earnings decreases from higher Utility other O&M were due primarily to higher power delivery expenses, including higher vegetation management costs, higher nuclear generation expenses, higher compensation and benefits costs, higher bad debt expense, higher energy efficiency costs, and higher customer service center support costs. Also contributing was a $15M pre-tax gain on sale recorded in third quarter 2021 (considered an adjustment and excluded from adjusted earnings). The year-to-date variance also included higher legal expenses and an increase in loss provisions, partially offset by higher nuclear insurance refunds. |
(i) | The third quarter and year-to-date earnings increases from lower EWC other O&M were due largely to the shutdown of Palisades in May 2022. The year-to-date variance was also due to the shutdown of Indian Point 3 in April 2021. |
(j) | The third quarter and year-to-date earnings increases from lower EWC decommissioning expense were due primarily to the sale of Palisades in June 2022. The year-to-date variance also reflected the sale of Indian Point in May 2021. |
(k) | The third quarter and year-to-date earnings decreases from higher Utility depreciation expense were due primarily to higher plant in service. |
(l) | The third quarter and year-to-date earnings decreases from lower Utility other income (deductions) were largely due to changes in decommissioning trust fund returns (based on regulatory treatment, decommissioning-related variances are largely earnings neutral). This was partially offset by higher intercompany dividend income related to the affiliate preferred investments (offset in P&O). The year-to-date variance also reflected two items that were recorded in second quarter 2022 as a result of E-LA securitization: a $32 million reduction to interest and investment income (loss) was recorded to account for LURC's 1% beneficial interest in the trust established as part of the 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 relating to prior years was considered an adjustment and excluded from adjusted earnings). The year-to-date variance was partially offset by the recognition of carrying costs primarily related to Hurricane Ida and deferred fuel balances. |
(m) | The third quarter and year-to-date earnings decreases from Parent & Other other income (deductions) was due largely to the effects of affiliate preferred investments (offset in Utility). |
(n) | The third quarter and year-to-date earnings decreases from higher Utility interest expense was due primarily to higher debt balances. |
(o) | The third quarter and year-to-date earnings decreases from EWC income taxes were due largely to the accrual of an uncertain tax position as a result of a state tax audit in third quarter 2022. |
(p) | The year-to-date earnings increase from lower EWC nuclear refueling outage expense was due to the shutdown of Indian Point 3 in April 2021 and Palisades in May 2022. |
(q) | The year-to-date earnings increase from lower EWC asset write-offs and impairments was due largely to two items. In second quarter 2022, a $166 million gain ($130 million after-tax) was recorded as a result of the sale of Palisades. In second quarter 2021, a $340 million loss ($268 million after-tax) was recorded as a result of the sale of Indian Point. |
(r) | The year-to-date earnings decrease from higher Utility taxes other than income taxes was due to increases in ad valorem, franchise, and employment taxes. |
(s) | The year-to-date earnings increase from lower EWC depreciation expense was due primarily to the shutdown of Indian Point 3 in April 2021 and Palisades in May 2022. |
(t) | The year-to-date earnings decrease from lower EWC other income (deductions) was due largely to the absence of earnings from nuclear decommissioning trust funds that were transferred in the sale of Indian Point in May 2021 and the performance of Palisades decommissioning trust investments, partially offset by lower non-service pension costs. |
(u) | The year-to-date earnings decrease from higher Parent & Other interest expense was due primarily to higher interest rates and intercompany guarantee activity. |
(v) | The year-to-date earnings increase from Utility income taxes was due largely to a second quarter 2022 $283 million income tax benefit related to securitization financing of Hurricane Laura, Hurricane Delta, Hurricane Zeta, Winter Storm Uri, and a portion of Hurricane Ida (this item was considered an adjustment and excluded from adjusted earnings). Various smaller income tax items also contributed. |
(w) | The year-to-date earnings per share impacts from share effect were due to shares sold under the company's ATM program. |
Utility as-reported operating revenue less fuel, fuel-related | ||
3Q | YTD | |
Volume/weather | 0.34 | 0.80 |
Retail electric price | 0.41 | 0.98 |
2Q21 reg. credit for E-MS lookback / true up | - | (0.07) |
3Q22 reg. credit for E-MS lookback / true up | 0.08 | 0.08 |
3Q21 MSS-4 ROE reserve adj. | (0.02) | (0.07) |
E-LA TRAM true-up and tax deferral | 0.04 | 0.04 |
E-TX MCPS relate back | 0.02 | 0.02 |
2Q22 increase in provision for potential refunds in SERI complaints | - | (2.02) |
2Q22 provision for customer sharing of securitization benefits | - | (0.81) |
2Q22 reg. provisions for true-up of E-LA and E-TX equity carrying costs on 2020 storms | - | 0.26 |
1Q22 reg. provisions for true-up of E-LA and E-TX cost of debt from 2020 storms | - | 0.07 |
1Q21 reversal of reg. provision for | - | (0.16) |
Reg. provisions for decommissioning items | 0.25 | 0.47 |
Grand Gulf recovery | 0.08 | 0.16 |
Other | 0.13 | 0.13 |
Total | 1.33 | (0.12) |
Appendix C provides a comparative summary of Utility operating and financial measures.
Appendix C: Utility operating and financial measures | ||||||||||||||||||||
Third quarter and year-to-date 2022 vs. 2021 | ||||||||||||||||||||
Third quarter | Year-to-date | |||||||||||||||||||
2022 | 2021 | % | % Weather | 2022 | 2021 | % | % Weather | |||||||||||||
GWh sold | ||||||||||||||||||||
Residential | 11,272 | 10,545 | 6.9 | 3.9 | 29,218 | 27,695 | 5.5 | 0.5 | ||||||||||||
Commercial | 8,223 | 7,649 | 7.5 | 5.8 | 21,697 | 20,490 | 5.9 | 5.3 | ||||||||||||
Governmental | 702 | 648 | 8.3 | 9.4 | 1,928 | 1,845 | 4.4 | 4.5 | ||||||||||||
Industrial | 13,926 | 13,020 | 7.0 | 7.0 | 39,903 | 37,399 | 6.7 | 6.7 | ||||||||||||
Total retail sales | 34,123 | 31,862 | 7.1 | 5.7 | 92,746 | 87,429 | 6.1 | 4.3 | ||||||||||||
Wholesale | 4,809 | 4,350 | 10.6 | 12,371 | 13,365 | (7.4) | ||||||||||||||
Total sales | 38,932 | 36,212 | 7.5 | 105,117 | 100,794 | 4.3 | ||||||||||||||
Number of electric retail customers | ||||||||||||||||||||
Residential | 2,561,441 | 2,548,865 | 0.5 | |||||||||||||||||
Commercial | 366,351 | 365,364 | 0.3 | |||||||||||||||||
Governmental | 18,055 | 17,922 | 0.7 | |||||||||||||||||
Industrial | 50,721 | 50,579 | 0.3 | |||||||||||||||||
Total retail customers | 2,996,568 | 2,982,730 | 0.5 | |||||||||||||||||
Other O&M and refueling outage expense per MWh | $20.95 | $18.67 | 12.2 | $21.23 | $20.19 | 5.2 | ||||||||||||||
Calculations may differ due to rounding | |
(x) | 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, retail sales volume increased across all customer classes, largely due to prior year Hurricane Ida impacts. The increase in industrial usage was due to an increase in demand from new and expansion projects, primarily in the chemicals, petroleum refining, and transportation industries, and an increase in demand from small industrial and cogeneration customers.
Appendix D-1 provides a comparative summary of EWC operating and financial measures.
Appendix D-1: EWC operating and financial measures Third quarter and year-to-date 2022 vs. 2021 | ||||||
Third quarter | Year-to-date | |||||
2022 | 2021 | % Change | 2022 | 2021 | % Change | |
Owned capacity (MW) (y) | 394 | 1,205 | (67) | 394 | 1,205 | (67) |
GWh billed | 577 | 2,166 | (73) | 4,172 | 9,265 | (55) |
EWC Nuclear Fleet | ||||||
Capacity factor | - | 97 % | (100) | 93 % | 97 % | (4) |
GWh billed | - | 1,702 | (100) | 2,741 | 8,046 | (66) |
Production cost per MWh | - | $28.91 | (100) | $26.93 | $23.32 | 15 |
Average energy/capacity revenue per MWh | - | $69.35 | (100) | $49.00 | $54.79 | (11) |
Calculations may differ due to rounding | |
(y) | 2022 excludes the Palisades plant (811 MW) which was shut down on 5/20/22. |
Appendix D-2 provides a comparative summary of EWC adjusted EBITDA (non-GAAP).
Appendix D-2: EWC adjusted EBITDA - reconciliation of GAAP to Non-GAAP measures | ||||||
Third quarter and year-to-date 2022 vs. 2021 | ||||||
($ in millions) | Third quarter | Year-to-date | ||||
2022 | 2021 | Change | 2022 | 2021 | Change | |
Net income (loss) | (19) | 26 | (45) | 77 | (210) | 287 |
Add back: interest expense | 2 | 3 | (1) | 5 | 11 | (6) |
Add back: income taxes | 18 | 9 | 9 | 46 | (47) | 94 |
Add back: depreciation and amortization | 1 | 9 | (7) | 13 | 36 | (23) |
Subtract: interest and investment income | 3 | 3 | - | (38) | 100 | (139) |
Add back: decommissioning expense | - | 14 | (13) | 28 | 106 | (78) |
Adjusted EBITDA (non-GAAP) | - | 57 | (58) | 207 | (205) | 412 |
Calculations may differ due to rounding |
Appendix E provides comparative financial measures. Financial measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP financial measures.
Appendix E: GAAP and non-GAAP financial measures | |||
Third quarter 2022 vs. 2021 (See Appendix G for reconciliation of GAAP to non-GAAP financial measures) | |||
For 12 months ending September 30 | 2022 | 2021 | Change |
GAAP measure | |||
As-reported ROE | 10.8 % | 11.3 % | (0.5) % |
Non-GAAP measure | |||
Adjusted ROE | 11.7 % | 10.9 % | 0.8 % |
As of September 30 ($ in millions, except where noted) | 2022 | 2021 | Change |
GAAP measures | |||
Cash and cash equivalents | 1,003 | 1,000 | 3 |
Available revolver capacity | 4,191 | 3,925 | 266 |
Commercial paper | 1,386 | 1,006 | 380 |
Total debt | 27,677 | 25,695 | 1,982 |
Securitization debt | 311 | 90 | 221 |
Debt to capital | 69 % | 69 % | - |
Off-balance sheet liabilities: | |||
Debt of joint ventures – Entergy's share | - | 9 | (9) |
Total off-balance sheet liabilities | - | 9 | (9) |
Storm escrows | 325 | 33 | 291 |
Non-GAAP measures ($ in millions, except where noted) | |||
Debt to capital, excluding securitization debt | 69 % | 69 % | - |
Net debt to net capital, excluding securitization debt | 68 % | 68 % | - |
Gross liquidity | 5,195 | 4,925 | 270 |
Net liquidity | 3,809 | 3,919 | (110) |
Net liquidity, including storm escrow balances | 4,133 | 3,952 | 181 |
Parent debt to total debt, excluding securitization debt | 20.3 % | 23.4 % | (3.1) % |
FFO to debt, excluding securitization debt | 12.2 % | 9.7 % | 2.6 % |
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with the exit of EWC | 12.6 % | 10.6 % | 2.0 % |
Calculations may differ due to rounding |
Appendix F-1 provides definitions of certain operating measures, as well as GAAP and non-GAAP financial measures.
Appendix F-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 |
EWC operating and financial measures | |
Adjusted EBITDA (non-GAAP) | Earnings before interest, income taxes, and depreciation and amortization, and excluding decommissioning expense |
Capacity factor | Normalized percentage of the period that the nuclear plants generate power |
GWh billed | Total number of GWh billed to customers and financially-settled instruments |
Owned capacity (MW) | Installed capacity owned by EWC |
Production cost per MWh | Fuel and other O&M expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation) |
Financial measures – GAAP | |
As-reported ROE | 12-months rolling net income attributable to Entergy Corp. divided by avg. common equity |
Debt of joint ventures – Entergy's share | Entergy's share of debt issued by business joint ventures at EWC |
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, and finance leases on the balance sheet |
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 the results of the EWC segment, 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, 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 excl. securitization debt |
FFO to debt, excl. securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with the exit of EWC | 12-months rolling FFO excluding return of unprotected excess ADIT and severance and retention payments associated with the exit of EWC 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, incl. amounts drawn on credit revolver and commercial paper facilities, as a percent of consolidated total debt, excl. securitization debt |
Appendix F-2 explains abbreviations and acronyms used in the quarterly earnings materials.
Appendix F-2: Abbreviations and acronyms | |||
ADIT | Accumulated deferred income taxes | IPEC or | Indian Point Energy Center (nuclear) |
AFUDC | Allowance for funds used during construction | Indian Point | (sold 5/28/21) |
AFUDC – borrowed funds | Allowance for borrowed funds used during construction | IRAR | Interim rate adjustment rider |
ALJ | Administrative law judge | ISES 2 | Unit 2 of Independence Steam Electric Station (coal) |
AMI | Advanced metering infrastructure | LMP | Locational marginal price |
APSC | Arkansas Public Service Commission | LNG | Liquified natural gas |
ARO | Asset retirement obligation | LPSC | Louisiana Public Service Commission |
ATM | At the market equity issuance program | LTM | Last twelve months |
bbl | Barrels | LURC | Louisiana Utility Restoration Corporation |
Bcf/D | Billion cubic feet per day | MISO | Midcontinent Independent System Operator, Inc. |
bps | Basis points | MMBtu | Million British thermal units |
CAMT | Corporate alternative minimum tax | Moody's | Moody's Investor Service |
CCCT | Combined cycle combustion turbine | MPSC | Mississippi Public Service Commission |
CCGT | Combined cycle gas turbine | MTEP | MISO Transmission Expansion Plan |
CCNO | Council of the City of New Orleans | NBP | National Balancing Point |
CFO | Cash from operations | NDT | Nuclear decommissioning trust |
COD | Commercial operation date | Nelson 6 | Unit 6 of Roy S. Nelson plant (coal) |
DCRF | Distribution cost recovery factor | NRC | U.S. Nuclear Regulatory Commission |
DOE | U.S. Department of Energy | NYSE | New York Stock Exchange |
DSM | Demand side management | OCAPS | Orange County Advanced Power Station |
E-AR | Entergy Arkansas, LLC | OCF | Net cash flow provided by operating activities |
E-LA | Entergy Louisiana, LLC | OpCo | Utility operating company |
E-MS | Entergy Mississippi, LLC | OPEB | Other post-employment benefits |
E-NO | Entergy New Orleans, LLC | Other O&M | Other non-fuel operation and maintenance expense |
E-TX | Entergy Texas, Inc. | P&O | Parent & Other |
EBITDA | Earnings before interest, income taxes, and depreciation and amortization | Palisades | Palisades Power Plant (nuclear) (shut down May 2022, sold June 2022) |
EPC | Engineering, procurement, and construction | PMR | Performance Management Rider |
EPS | Earnings per share | PPA | Power purchase agreement or purchased power agreement |
ETR | Entergy Corporation | PCT | Production tax credit |
EWC | Entergy Wholesale Commodities | PUCT | Public Utility Commission of Texas |
FERC | Federal Energy Regulatory Commission | RFP | Request for proposals |
FFO | Funds from operations | ROE | Return on equity |
FIN 48 | FASB Interpretation No.48, "Accounting for Uncertainty in Income Taxes" | RS Cogen | RS Cogen facility (CCGT cogeneration) (sold 10/31/22) |
FRP | Formula rate plan | RSP | Rate Stabilization Plan (E-LA Gas) |
GAAP | U.S. generally accepted accounting principles | S&P | Standard & Poor's |
GCRR | Generation Cost Recovery Rider | SEC | U.S. Securities and Exchange Commission |
Grand Gulf or GGNS | Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by SERI | SERI | System Energy Resources, Inc. |
HLBV | Hypothetical liquidation at book value | TCRF | Transmission cost recovery factor |
IIRR-G | Infrastructure investment recovery rider – gas | TRAM | Tax reform adjustment mechanism |
Indian Point 3 or IP3 | Indian Point Energy Center Unit 3 (nuclear) (shut down April 2021, sold May 2021) | UPSA | Unit Power Sales Agreement |
WACC | Weighted-average cost of capital | ||
Appendix G-1, Appendix G-2, and Appendix G-3 provide reconciliations of various non-GAAP financial measures disclosed in this news release to their most comparable GAAP measure.
Appendix G-1: Reconciliation of GAAP to non-GAAP financial measures – ROE | |||
(LTM $ in millions except where noted) | Third quarter | ||
2022 | 2021 | ||
As-reported net income (loss) attributable to Entergy Corporation | (A) | 1,256 | 1,248 |
Adjustments | (B) | (112) | 45 |
Adjusted earnings (non-GAAP) | (A-B) | 1,368 | 1,202 |
Average common equity (average of beginning and ending balances) | (C) | 11,674 | 11,012 |
As-reported ROE | (A/C) | 10.8 % | 11.3 % |
Adjusted ROE (non-GAAP) | [(A-B)/C] | 11.7 % | 10.9 % |
Calculations may differ due to rounding |
Appendix G-2: Reconciliation of GAAP to non-GAAP financial measures – debt ratios excluding securitization debt; gross liquidity; net liquidity; net liquidity, including storm escrows | |||
($ in millions except where noted) | Third quarter | ||
2022 | 2021 | ||
Total debt | (A) | 27,677 | 25,695 |
Less securitization debt | (B) | 311 | 90 |
Total debt, excluding securitization debt | (C) | 27,366 | 25,606 |
Less cash and cash equivalents | (D) | 1,003 | 1,000 |
Net debt, excluding securitization debt | (E) | 26,362 | 24,605 |
Commercial paper | (F) | 1,386 | 1,006 |
Total capitalization | (G) | 40,091 | 37,202 |
Less securitization debt | (B) | 311 | 90 |
Total capitalization, excluding securitization debt | (H) | 39,780 | 37,112 |
Less cash and cash equivalents | (D) | 1,003 | 1,000 |
Net capital, excluding securitization debt | (I) | 38,776 | 36,112 |
Debt to capital | (A/G) | 69 % | 69 % |
Debt to capital, excluding securitization debt (non-GAAP) | (C/H) | 69 % | 69 % |
Net debt to net capital, excluding securitization debt (non-GAAP) | (E/I) | 68 % | 68 % |
Available revolver capacity | (J) | 4,191 | 3,925 |
Storm escrows | (K) | 325 | 33 |
Gross liquidity (non-GAAP) | (D+J) | 5,195 | 4,925 |
Net liquidity (non-GAAP) | (D+J-F) | 3,809 | 3,919 |
Net liquidity, including storm escrows (non-GAAP) | (D+J-F+K) | 4,133 | 3,952 |
Entergy Corporation notes: | |||
Due July 2022 | - | 650 | |
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 | 4,700 |
Revolver draw | (M) | 150 | 325 |
Unamortized debt issuance costs and discounts | (N) | (44) | (51) |
Total parent debt | (F+L+M+N) | 5,542 | 5,981 |
Parent debt to total debt, excluding securitization debt (non-GAAP) | [(F+L+M+N)/C] | 20.3 % | 23.4 % |
Calculations may differ due to rounding |
Appendix G-3: Reconciliation of GAAP to non-GAAP financial measures – FFO to debt, excluding securitization debt; FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with the exit of EWC | |||
($ in millions except where noted) | Third quarter | ||
2022 | 2021 | ||
Total debt | (A) | 27,677 | 25,695 |
Less securitization debt | (B) | 311 | 90 |
Total debt, excluding securitization debt | (C) | 27,366 | 25,606 |
Net cash flow provided by operating activities, LTM | (D) | 2,099 | 2,331 |
AFUDC – borrowed funds, LTM | (E) | (28) | (34) |
Working capital items in net cash flow provided by operating activities, LTM: | |||
Receivables | (208) | (183) | |
Fuel inventory | (9) | 20 | |
Accounts payable | (153) | 326 | |
Taxes accrued | 49 | 20 | |
Interest accrued | (2) | 26 | |
Deferred fuel costs | (931) | (358) | |
Other working capital accounts | (84) | (124) | |
Securitization regulatory charges, LTM | 67 | 98 | |
Total | (F) | (1,271) | (175) |
FFO, LTM (non-GAAP) | (G)=(D+E-F) | 3,342 | 2,472 |
FFO to debt, excluding securitization debt (non-GAAP) | (G/C) | 12.2 % | 9.7 % |
Estimated return of unprotected excess ADIT, LTM | (H) | 68 | 85 |
Severance and retention payments associated with exit of EWC, LTM pre-tax | (I) | 40 | 158 |
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with the exit of EWC (non-GAAP) | [(G+H+I)/(C)] | 12.6 % | 10.6 % |
Calculations may differ due to rounding |
SOURCE Entergy Corporation
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