Entergy Corporation
Company Summary
Financial Data:
NYSE:ETR from Google FinanceTickers:
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ETR - New York Stock Exchange
Related Entities
- Entergy Arkansas, Inc.
- Entergy Gulf States Louisiana, L.L.C.
- Entergy Louisiana, LLC
- Entergy Mississippi, Inc.
- Entergy New Orleans
- Entergy Nuc Fitzpatrick LLC
- Entergy Nuclear Generation Co
- Entergy Nuclear Palisades LLC
- Entergy Nuclear Vermont Yankee
- Entergy RISE
- Entergy Services, Inc.
- Entergy Texas, Inc.
- System Energy Resources, Inc.
Recent news
- 11/1/2023 - Entergy Selling Gas... (subscriber access)
- 4/26/2023 - Entergy Texas Begins... (subscriber access)
- 4/26/2023 - Entergy Texas Signs... (subscriber access)
- 3/17/2023 - Entergy Files Request to... (subscriber access)
- 2/17/2023 - Entergy Arkansas Signs... (subscriber access)
Investor Presentations
- 4Q22 Earnings Presentation
- 1Q20 Earnings Presentation (subscriber access)
Company Transactions
Date: 12/31/2020
Type: Acquisition
NOTES:
Entergy Corp. has entered into a deal with Holtec International to sale the Pilgrim Nuclear Power Station and the Palisades Power Plant after their planned shutdowns and defuelings
Entergy Corp. has entered into a deal with Holtec International to sale the Pilgrim Nuclear Power Station and the Palisades Power Plant after their planned shutdowns and defuelings
REGIONS:
Northeast
Midwest
Date: 11/25/2020
Type: Acquisition
BUYERS:
Entergy Corporation
DETAILS:
VOLUMES: 360 MW
NOTES:
Entergy Louisiana has acquired the 361-MW Washington Parish Energy Center from Calpine Corporation. They signed a purchase and sale deal in 2017 with Calpine and the total plant cost was $261 million. The facility serves as a peaking facility in Louisiana.
Entergy Louisiana has acquired the 361-MW Washington Parish Energy Center from Calpine Corporation. They signed a purchase and sale deal in 2017 with Calpine and the total plant cost was $261 million. The facility serves as a peaking facility in Louisiana.
REGIONS:
Gulf Coast
Date: 1/11/2019
Type: Acquisition
BUYERS:
NorthStar Group Services Inc.
DETAILS:
NOTES:
Entergy Corporation sold its Entergy Nuclear Vermont to subsidiaries of NorthStar Group Services who intend to decommission the Vermont Yankee Nuclear Power Station site.
Entergy Corporation sold its Entergy Nuclear Vermont to subsidiaries of NorthStar Group Services who intend to decommission the Vermont Yankee Nuclear Power Station site.
Date: 3/15/2017
Type: Acquisition
REGIONS:
Northeast
News & Press Releases
Criterion News
- 11/1/2023 - Entergy Selling Gas... (subscriber access)
- 4/26/2023 - Entergy Texas Begins... (subscriber access)
- 4/26/2023 - Entergy Texas Signs... (subscriber access)
- 3/17/2023 - Entergy Files Request to... (subscriber access)
- 2/17/2023 - Entergy Arkansas Signs... (subscriber access)
- 2/17/2023 - Entergy Receives... (subscriber access)
- 2/17/2023 - Entergy Notes Plans to... (subscriber access)
- 2/17/2023 - Entergy Notes $690 of... (subscriber access)
- 2/17/2023 - Entergy Has 499,000... (subscriber access)
- 2/17/2023 - Entergy Notes Plans to... (subscriber access)
- 12/22/2022 - Entergy Files Proposal... (subscriber access)
- 11/15/2021 - Entergy Mississippi... (subscriber access)
- 9/22/2021 - Entergy Estimating... (subscriber access)
- 9/22/2021 - Entergy Prepares Package... (subscriber access)
- 9/3/2021 - Entergy Issues Timeline... (subscriber access)
- 9/1/2021 - Entergy Hurricane Ida... (subscriber access)
- 8/31/2021 - Entergy President Rod... (subscriber access)
- 8/30/2021 - Entergy Currently Facing... (subscriber access)
- 7/30/2021 - Entergy Seeking Approval... (subscriber access)
- 6/1/2021 - Entergy Closes on Sale... (subscriber access)
- 3/5/2021 - Entergy Facing... (subscriber access)
- 1/14/2021 - McDermott Brings Online... (subscriber access)
- 9/25/2020 - Entergy Sets Net-Zero... (subscriber access)
- 9/22/2020 - Entergy 9/22 Update on... (subscriber access)
- 9/18/2020 - Power Potentially... (subscriber access)
- 9/15/2020 - Cameron LNG Prompting... (subscriber access)
- 9/8/2020 - Westlake Chemical Issues... (subscriber access)
- 8/31/2020 - Entergy Reports... (subscriber access)
- 5/14/2020 - Entergy Expecting Indian... (subscriber access)
- 5/14/2020 - Entergy Issues 1Q20... (subscriber access)
Press Releases
- Entergy's sustainability strategy contributed to the global objectives of the United Nations Sustainable Development Goals, including Affordable and Clean Energy, Responsible Consumption and Production, Decent Work and Economic Growth, Climate Action, Life on Land, Clean Water and Sanitation and Partnerships for the Goals.
- The company provided power to 2.9 million customers at some of the lowest average retail electric rates in the country.
- Entergy helped communities attract more than 5,460 new jobs and nearly $18.2 billion in capital investment to its service territory in 2019. Through a five-year, $5 million workforce development initiative, Entergy has attracted 87 companies and helped create nearly 10,000 permanent new jobs across the region since 2016.
- With an estimated 25% of customers living at or below the poverty level, Entergy contributed more than $17 million in shareholder-funded grants to more than 2,000 local nonprofit organizations to help ensure vibrant communities. Company employees and retirees logged close to 115,000 hours of volunteer service, valued at $3.75 million.
- The company published a TCFD-aligned climate report and set a 2030 goal to reduce its carbon dioxide emissions rate by half the level it was in 2000.
- E-LA customers began to receive power from Capital Region Solar, the largest solar facility in Louisiana.
- E-AR selected Walnut Bend Solar from its renewable RFP, and E-TX selected Liberty County Solar and Umbriel Solar from its renewable RFP.
- The PUCT approved E-TX's DCRF filing.
- The CCNO approved a settlement agreement, resolving E-NO's rate case appeal and FRP delay.
- Palisades completed its final refueling outage.
- Entergy was named as one of the nation's top utilities in economic development by Site Selection magazine for the 13th consecutive year.
- lower sales volume, including the effects of COVID-19, Hurricane Laura, and weather; and
- higher depreciation and interest expenses.
- regulatory actions at E-AR, E-LA, E-MS, and E-TX; and
- lower other O&M.
- lower asset write-offs and impairments;
- higher gains on decommissioning trust funds;
- lower other O&M expense due to the shutdown of Indian Point 2; and
- lower depreciation expenses.
- Download the Entergy App at entergyapp.com. Customers can use the app to report outages or check on the status of power at their home or business.
- Entergy's View Outages website includes maps that show where outages are located and give information about restoration progress.
- Sign up for text messages by texting REG to 36778 and have your account number and ZIP code handy. The registration pattern is as follows including spaces: REG (account number) (ZIP code). Once registered, text OUT to 36778 to report an outage. You can also report an outage online as a guest.
- The Entergy Storm Center website has storm safety, preparation and restoration information that is updated throughout the day.
- Operation: Storm Ready Guide is a free downloadable guide that helps customers plan and prepare for weather emergencies.
- Ongoing integration of renewable energy resources, storage, and innovative applications of conventional generation into the company's long-term generation portfolio transformation. Also, continuing investment in existing zero-carbon nuclear power and in modern, efficient natural gas generating units, while retiring our coal and older, less efficient gas-powered units.
- Evaluating and enhancing the company's portfolio transformation with emerging technologies, such as distributed resources, alternative fuels likes renewable natural gas and green hydrogen, carbon capture and sequestration, and advanced nuclear.
- Collaborating with customers, key suppliers and industry partners to advance the technologies and strategies necessary to reduce carbon emissions.
- Continuing to engage with partners and gain experience enhancing natural systems such as wetlands and forests that absorb carbon.
- Working across and between sectors, such as transportation and industry, on beneficial electrification and net-emission reduction initiatives.
- more than 14,000 distribution poles,
- approximately 4,800 transformers,
- approximately 30,000 spans of distribution wire,
- more than 30,000 crossarms,
- approximately 1,900 transmission structures damaged or destroyed,
- more than 300 substations, and
- approximately 225 transmission lines.
- Download the Entergy App at entergyapp.com. Customers can use the app to report outages or check on the status of power at their home or business.
- Entergy's View Outages website includes maps that show where outages are located and give information about restoration progress.
- Sign up for text alerts by texting REG to 36778 and have your account number and ZIP code handy. The registration pattern is as follows including spaces: REG (account number) (ZIP code). Once registered, text OUT to 36778 to report an outage. You can also report an outage online as a guest.
- The Entergy Storm Center website has storm safety, preparation and restoration information that is updated throughout the day.
- Operation: Storm Ready Guide is a free downloadable guide that helps customers plan and prepare for weather emergencies.
- Western Region Phase 2 economic transmission project was completed.
- The New Orleans Power Station was placed in service.
- E-LA issued an RFP for up to 300 megawatts of new renewable resources.
- The MPSC approved E-MS's annual FRP filing.
- E-LA and E-AR each submitted their annual FRP filings.
- The PUCT finalized its generation rider rulemaking.
- In 2019, Entergy provided power to customers at the second-lowest average price in the U.S., according to an S&P Global Market Intelligence study.
- For the fifth consecutive year, Entergy was named to The Civic 50, a Points of Light initiative honoring the 50 most community-minded companies in the U.S.
- regulatory actions at E-AR, E-LA, E-MS, and E-TX; and
- lower non-nuclear generation expenses, including a delay in planned outages in 2020 as a result of the COVID-19 pandemic, as well as lower nuclear generation expenses.
- lower sales volume, including the effects of weather; and
- higher depreciation and interest expenses.
- gains on decommissioning trust funds;
- lower other O&M expense due to the shutdown of Pilgrim and Indian Point 2, as well as lower severance and retention expense; and
- lower decommissioning and depreciation expenses.
- Entergy affirms 2020 adjusted EPS guidance of $5.45 to $5.75.
- The Lake Charles Power Station was placed in service on budget and ahead of schedule.
- Entergy Texas issued an RFP for a 1,000MW to 1,200MW CCGT and Entergy Louisiana issued an RFP for 250MW of solar resources.
- Entergy Mississippi received approval for the Sunflower Solar project and Entergy Arkansas received approval for the Searcy Solar project.
- Entergy Mississippi made its annual formula rate plan filing.
- Entergy Texas filed for an increase in its distribution cost recovery factor.
- Indian Point Unit 2 was permanently shutdown.
- The Entergy Charitable Foundation established the COVID-19 Emergency Relief Fund.
- rate activity at E-AR, E-LA, E-MS, and E-TX;
- a first quarter 2019 reserve at E-AR;
- higher nuclear insurance refunds, as well as lower fossil and nuclear generation spending;
- a favorable book-to-tax permanent difference related to stock-based compensation; and
- an IRS settlement related to Hurricane Isaac Act 55 financing, net of customer sharing (largely offset by higher tax expense from this settlement at P&O).
- higher pension and benefits expenses;
- higher depreciation and interest expenses; and
- lower sales volume, including the net effect of billed and unbilled sales, and the effects of weather.
- losses on decommissioning trust funds; and
- lower revenue due to the shutdown of Pilgrim, as well as lower nuclear pricing.
- lower impairments as compared to a year ago;
- lower other O&M expense due to the shutdown of Pilgrim, as well as lower severance and retention expense;
- higher nuclear volume; and
- an income tax item related to the sale of Vermont Yankee recorded in first quarter 2019.
- A: Consolidated Results and Adjustments
- B: Earnings Variance Analysis
- C: Utility Financial and Operating Measures
- D: EWC Financial and Operating Measures
- E: Consolidated Financial Measures
- F: Definitions and Abbreviations and Acronyms
- G: Other GAAP to Non-GAAP Reconciliations
- With support from our regulators, we are temporarily suspending customer disconnects as we continue to monitor the situation.
- We are working with our network of community advocates to request a funding increase of the Low Income Home Energy Assistance Program to help alleviate financial hardships caused by COVID-19 on vulnerable households.
- We are developing bill payment solutions and tools to help customers pay their accumulated balances once the disconnect moratorium is lifted.
- Entergy initiated 2020 adjusted EPS guidance of $5.45 to $5.75 and affirmed 2021–2022 outlooks of $5.80 to $6.10 and $6.15 to $6.45, respectively.
- Entergy Mississippi acquired Choctaw County Generating Station, an 810-megawatt CCGT.
- Entergy Louisiana completed its Southwest Louisiana Improvement Project (transmission).
- The APSC approved Entergy Arkansas' FRP settlement.
- Chicot Solar Energy Center, the largest solar project in Arkansas, broke ground.
- Entergy was inducted in the Corporate Citizenship Hall of Fame by the U.S. Chamber of Commerce Foundation Corporate Citizenship Center.
- Entergy raised its dividend for the fifth consecutive year.
- rate activity at E-AR, E-LA, E-MS, and E-TX;
- regulatory charges and provisions in fourth quarter 2018; and
- a fourth quarter 2019 favorable income tax item (considered an adjustment and excluded from adjusted earnings).
- lower retail sales volume;
- higher operating expenses (primarily depreciation and other O&M);
- higher interest expense;
- a fourth quarter 2018 favorable income tax item, net of customer sharing (considered an adjustment and excluded from adjusted earnings); and
- a fourth quarter 2018 reversal of a tax reform accrual (considered an adjustment and excluded from adjusted earnings).
- rate activity at E-AR, E-LA, E-MS, and E-TX;
- regulatory charges and provisions in 2018; and
- a fourth quarter 2019 favorable income tax item (considered an adjustment and excluded from adjusted earnings).
- lower retail sales volume, including less favorable weather;
- higher operating expenses (primarily depreciation and other O&M);
- higher interest expense;
- second and fourth quarter 2018 favorable income tax items, net of customer sharing, (considered adjustments and excluded from adjusted earnings); and
- a fourth quarter 2018 reversal of a tax reform accrual (considered an adjustment and excluded from adjusted earnings).
- lower other income (deductions)–other due to the timing of a charitable contribution; and
- a fourth quarter 2019 income tax item related to a valuation allowance recorded on an interest expense deduction (the amount related to the 2018 tax year was considered an adjustment and excluded from adjusted earnings).
- higher gains on decommissioning trust funds;
- favorable income tax items recorded in fourth quarter 2019;
- lower asset write-offs, impairments and related charges as compared to a year ago; and
- lower severance and retention expense, as well as lower O&M expense due to the shutdown of Pilgrim.
- higher gains on decommissioning trust funds;
- lower asset write-offs, impairments and related charges as compared to a year ago;
- lower severance and retention expense, as well as lower O&M expense due to the shutdown of Pilgrim; and
- favorable income tax items in 2019 as compared to 2018.
- A: Consolidated Results and Adjustments
- B: Earnings Variance Analysis
- C: Utility Financial and Operating Measures
- D: EWC Financial and Operating Measures
- E: Consolidated Financial Measures
- F: Definitions and Abbreviations and Acronyms
- G: Other GAAP to Non-GAAP Reconciliations
- Entergy updated its 2019 adjusted EPS guidance range to $5.25 to $5.45, raising the midpoint 5 cents and narrowing the range.
- The MPSC approved Entergy Mississippi's acquisition of the Choctaw Generating Station.
- Entergy completed the sale of Pilgrim Nuclear Power Station.
- Construction began on Capital Region Solar, a 50 MW solar project, from which Entergy Louisiana will purchase the output.
- Entergy was named as one of the nation's top utilities in economic development by Site Selection magazine for the 12th consecutive year.
- Entergy was named to the 2019 Dow Jones Sustainability North America Index and received perfect scores in five areas, including climate strategy; this is the 18th consecutive year Entergy has appeared on the World or North America Index or both.
- rate activity at Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy Texas;
- higher sales volume, primarily in the unbilled period;
- third quarter 2018 regulatory charges to return benefits of the lower federal tax rate to customers; and
- lower nuclear generation O&M.
- higher depreciation expense;
- higher spending on information technology, loss reserves, initiatives to explore new customer products and services, as well as distribution operations; and
- lower other income largely due to lower gains on decommissioning trust funds.
- tax items recorded in third quarter 2018;
- lower revenue due to the shutdown of Pilgrim and lower capacity pricing;
- lower gains on decommissioning trust funds;
- higher asset write-offs, impairments and related charges as compared to a year ago; and
- higher refueling outage expenses at Palisades.
- A: Consolidated Results and Adjustments
- B: Earnings Variance Analysis
- C: Utility Financial and Operating Measures
- D: EWC Financial and Operating Measures
- E: Consolidated Financial Measures
- F: Definitions and Abbreviations and Acronyms
- G: Other GAAP to Non-GAAP Reconciliations
- Entergy's sustainability strategy helps attain the global objectives of the United Nations Sustainable Development Goals, including No Poverty, Affordable and Clean Energy, Decent Work and Economic Growth, Industry Innovation and Infrastructure, and Climate Action.
- The company provides power at some of the lowest average retail rates in the country.
- A $900 million investment in advanced metering systems will provide customers faster outage restoration, enhanced customer service, cost savings and more control over energy use.
- Entergy is nationally recognized as one of the Top 10 utilities for supporting economic growth.
- With an estimated 25% of customers living at or below the poverty level, Entergy's low-income customer assistance initiatives are helping drive economic self-sufficiency.
- The company contributed nearly $18 million in shareholder-funded grants to more than 2,000 local nonprofit organizations to ensure the communities we serve remain healthy and vibrant.
- Entergy is helping create jobs across the region through a five-year, $5 million workforce development initiative. Since its launching, 87 companies located within the company's service area and almost 10,000 permanent new jobs were created.
- Company employees and retirees donated nearly 112,000 volunteer hours helping others, generating more than $3.5 million in economic impact to local communities, helping earn Entergy national recognition as one of the top 50 most community-minded companies in the country.
- The company is acquiring, retaining and developing a workforce that reflects the diversity of its communities to meet today's business needs and to prepare for the workplace of tomorrow.
- The company is an industry leader in helping drive U.S. greenhouse gas emission reductions. Ranked fifth among the 20 largest privately- or investor-owned power producers in the United States, Entergy is the fourth lowest in carbon dioxide emissions.
- Entergy continues to raise the bar on environmental responsibility. Its new pledge is to reduce its utility carbon emission rate to 50% below year 2000 levels by 2030.
- The company also recently announced new clean generation resources to be added between 2022 and 2030, including approximately 3,500 to 4,000 of renewable potential.
- Entergy narrowed its 2019 adjusted EPS guidance to $5.15 to $5.45 and raised and narrowed its 2020 and 2021 adjusted EPS outlooks to $5.45 to $5.75 and $5.80 to $6.10, respectively.
- The St. Charles Power Station was placed in service on budget and ahead of schedule.
- Phase 1 of the Western Region economic transmission project was placed in service.
- The MPSC approved the settlement in Entergy Mississippi's annual FRP filing.
- Entergy Louisiana and Entergy Arkansas each submitted annual FRP filings.
- Pilgrim Nuclear Power Station permanently shut down on May 31, 2019.
- The Edison Electric Institute awarded its Emergency Assistance Award to Entergy.
- For the fourth consecutive year, Entergy Corporation was named to The Civic 50, a Points of Light initiative honoring the 50 most community-minded companies in the United States.
- rate activity at Entergy Arkansas, Entergy Louisiana, and Entergy Texas;
- second quarter 2018 regulatory charges to return benefits of the lower federal tax rate to customers; and
- higher other income largely due to higher AFUDC-equity funds.
- less favorable weather in second quarter 2019 compared to a year ago;
- lower sales volume in the unbilled period;
- higher spending on nuclear operations, information technology, and initiatives to explore new customer products and services; and
- higher depreciation expense.
- A: Consolidated Results and Adjustments
- B: Earnings Variance Analysis
- C: Utility Financial and Operating Measures
- D: EWC Financial and Operating Measures
- E: Consolidated Financial Measures
- F: Definitions and Abbreviations and Acronyms
- G: GAAP to Non-GAAP Reconciliations
- Build new sources of reliable, low-cost energy. Earlier this year, Entergy Texas broke ground on the Montgomery County Power Station. MCPS will provide 993 megawatts of reliable, low-cost energy to power Southeast Texas when placed in service in 2021. Additionally in March 2019, Entergy Texas issued a request for proposals for up to 200 MW of solar photovoltaic resources to be located in Texas.
- Enable future growth through transmission investment. Entergy Texas has also completed two major transmission projects that provide needed infrastructure to meet future demand. First, the China-Stowell transmission line was placed into service in May 2019. Additionally, Phase 1 of the Western Region Economic Project, a rebuild of the Newton Bulk to Leach line, was placed in service in May 2019.
- Modernize tools to serve customers. Entergy Texas is also deploying customer-centric solutions that will improve service for customers through the deployment of an advance meter system. Advanced meter deployment is well underway in Texas, with more than 35,000 meters already deployed.
- Entergy announced an agreement for post-shutdown sale of Indian Point Units 1, 2 and 3.
- Pilgrim returned to Column 1 in the NRC regulatory oversight program.
- Entergy Arkansas announced plans for a build-own-transfer of a 100 megawatt solar facility.
- Entergy Arkansas and Entergy Texas each issued requests for proposals for 200 megawatts of solar resources.
- Entergy Mississippi made its annual formula rate plan filing.
- Entergy was named for a fourth consecutive year to the list of America's Top Corporations for Women's Business Enterprise by the Women's Business Enterprise National Council.
- A: Consolidated Results and Adjustments
- B: Earnings Variance Analysis
- C: Utility Financial and Operating Measures
- D: EWC Financial and Operating Measures
- E: Consolidated Financial Measures
- F: Definitions and Abbreviations and Acronyms
- G: GAAP to Non-GAAP Reconciliations
- Historic Leadership and a New 2030 Goal – Entergy is building on its nearly 20-year history of environmental stewardship with its new goal of reducing by 2030 its emission intensity by half the level it was in 2000.
- Climate Strategy – Entergy has a long history of evaluation, disclosure and action related to climate change. The report outlines and describes the company's overall environmental and climate strategy.
- Partnerships for Decarbonization – The company is developing new ways to partner with customers to help them save money, use energy more efficiently and meet their sustainability and environmental goals.
- Scenario Analysis – A detailed analysis of several potential carbon abatement scenarios through 2030 is provided.
- Guiding Principles for Climate Policy – Entergy continues to believe that an economy-wide price on carbon is the most efficient and pragmatic path forward for federal climate policy.
- Investments in Clean Generation – The company is investing billions of dollars in capital over the next three years in modern, efficient natural gas and renewable generation assets while ensuring the long-term value of Entergy's nuclear power generation through technology upgrades and other improvements.
- Grid Modernization, Electrification and Energy Efficiency – Entergy is investing billions of dollars over the next five years in grid modernization and transmission and distribution infrastructure to improve resiliency and efficiency. The company is developing new ways to partner with customers to help reduce their own emissions by electrifying their energy needs and operations, reducing equipment operation and maintenance costs, and improving energy efficiency.
- Governance and Risk Management – Longstanding, robust governance structures and risk management processes effectively address climate risks and opportunities.
- Engagement and Transparency – Entergy is informing and engaging stakeholders on the company's current and ongoing efforts to manage climate risk and evaluate future opportunities.
- Continuous Improvement – With continued planning and stress-testing of potential investments, Entergy can lead the regional transition to a low-carbon economy.
- Entergy initiated 2019 guidance and 2020-2021 outlooks for its new ETR adjusted EPS measure.
- The APSC and PUCT issued orders approving settlements in E-AR's and E-TX's base rate proceedings.
- In January 2019, Entergy completed the sale of VY to NorthStar.
- Entergy and Holtec filed Pilgrim's license transfer application with the NRC.
- Entergy raised its dividend for the fourth consecutive year.
- The U.S. Chamber of Commerce Foundation named Entergy a finalist in its 2018 Corporate Citizenship Awards in the "Best Economic Empowerment Program" category.
- A fourth quarter 2017 revaluation of certain tax assets as a result of tax reform, net of adjustments for customer sharing, which decreased 2017 earnings by $181 million (considered a special item and excluded from operational earnings),
- In fourth quarter 2018, a $38 million reversal of a portion of the tax reform accrual recorded in 2017 (considered a special item and excluded from operational earnings),
- A fourth quarter 2018 favorable income tax item, net of a portion reserved for sharing with E-AR customers, which increased earnings by approximately $140 million,
- New base rate actions to recover investments that benefit customers and
- Non-fuel O&M expense decreased quarter-over-quarter.
- Regulatory provisions in 2018 that lowered earnings into the allowed ranges at E-AR and E-MS as required by their FRPs,
- A regulatory charge in 2018 for amounts due to E-TX customers for the benefit of the lower federal tax rate retroactive to January 2018 and
- Higher depreciation expense and taxes other than income taxes.
- A fourth quarter 2017 revaluation of certain tax assets, net of customer sharing, discussed above (considered a special item and excluded from operational earnings),
- A fourth quarter 2018 reversal of a tax reform accrual discussed above (considered a special item and excluded from operational earnings),
- Second and fourth quarter 2018 favorable income tax items, net of customer sharing,
- New base rate actions to recover investments that benefit customers and
- Higher retail sales, attributable to weather.
- Higher operating expenses (non-fuel O&M, taxes other than income taxes and depreciation expense) and
- 2018 regulatory provisions that lowered earnings into the allowed ranges at E-AR and E-MS as required by their FRPs.
- A: Consolidated Results and Special Items
- B: Earnings Variance Analysis
- C: Utility Financial and Operating Measures
- D: EWC Financial and Operating Measures
- E: Consolidated Financial Measures
- F: Definitions and Abbreviations and Acronyms
- G: GAAP to Non-GAAP Reconciliations
- Entergy raised its consolidated operational earnings guidance to $6.75–$7.25 per share.
- Entergy Mississippi entered into an agreement to acquire the 810 MW Choctaw Generating Station.
- Entergy Texas filed an unopposed settlement agreement with the PUCT in its 2018 rate case.
- Entergy Arkansas filed a partial settlement agreement in its FRP filing.
- Entergy New Orleans refiled its 2018 rate case with the CCNO.
- Entergy Louisiana signed a long-term agreement to provide power to the expanding Shintech Louisiana, LLC manufacturing complex in Iberville Parish.
- The NRC approved the license transfer of Vermont Yankee.
- Entergy was named to the 2018 Dow Jones Sustainability North America Index and received perfect scores in four areas, including climate strategy; this is the 17th consecutive year Entergy has appeared on the World or North America Index or both.
- A: Consolidated Results and Special Items
- B: Earnings Variance Analysis
- C: Utility Financial and Operating Measures
- D: EWC Financial and Operating Measures
- E: Consolidated Financial Measures
- F: Definitions and Abbreviations and Acronyms
- G: GAAP to Non-GAAP Reconciliations
- Entergy entered into purchase and sale agreements for EWC's Pilgrim and Palisades nuclear plants.
- The LPSC approved Entergy Louisiana's planned acquisition of Washington Parish Energy Center.
- ANO Units 1 and 2 returned to Column 1 of the NRC's reactor oversight process.
- Entergy Louisiana and Entergy Arkansas each submitted annual formula rate plan filings and Entergy New Orleans and Entergy Texas each filed base rate cases.
- In June, Entergy Corporation completed a $1.15 billion common stock offering with a forward component.
- For the third consecutive year, Entergy Corporation was named to The Civic 50, a Points of Light initiative honoring the 50 most community-minded companies in the nation.
- A: Consolidated Results and Special Items
- B: Earnings Variance Analysis
- C: Utility Financial and Operating Measures
- D: EWC Financial and Operating Measures
- E: Consolidated Financial Measures
- F: Definitions and Abbreviations and Acronyms
- G: GAAP to Non-GAAP Reconciliations
- Entergy New Orleans received approval for the New Orleans Power Station.
- The LPSC approved Entergy Louisiana's unopposed settlement for its formula rate plan.
- Entergy Mississippi made its annual formula rate plan filing.
- Entergy and parties filed a settlement memorandum of understanding with the Vermont PUC for the sale of Vermont Yankee.
- Indian Point 2 completed its final refueling and maintenance outage before retirement.
- Entergy was named for a third consecutive year by the Women's Business Enterprise National Council to the list of America's Top Corporations for Women's Business Enterprise, honoring corporations that have implemented world-class policies and programs to enable growth and reduce barriers for women-owned businesses.
- A: Consolidated Results and Special Items
- B: Earnings Variance Analysis
- C: Utility Financial and Operating Measures
- D: EWC Financial and Operating Measures
- E: Consolidated Financial Measures
- F: Definitions and Abbreviations and Acronyms
- G: GAAP to Non-GAAP Reconciliations
- An increase in its Support Agreement from $125 million to $140 million;
- The establishment of an interest-bearing escrow account that will initially be funded with $30 million and will, with additional contributions from NorthStar over time, grow to a minimum balance of $55 million. Withdrawals from this escrow account may be made only with approval from DPS and ANR;
- A $25 million NorthStar subcontractor guaranty available in the event and to the extent that all other forms of financial assurance are unavailable;
- A $30 million Pollution Legal Liability insurance product that will provide coverage for site restoration activities to address previously unknown or not fully characterized non-radiological environmental conditions identified at the VY Station site after the closing of the proposed transaction;
- A comprehensive reporting protocol that will provide appropriate state agencies with detailed information about the progress and financial status of the decommissioning project; and
- NorthStar has also agreed to engage in public process and transparency measures throughout the decommissioning process and will continue to work with stakeholders to ensure that the public remains informed about the progress at the Vermont Yankee site.
- Entergy will contribute to the Site Restoration Trust (SRT) (established as a result of the 2013 settlement agreement between Entergy and the State of Vermont) an amount sufficient to bring the balance of the SRT to $60 million. Given the current SRT balance, the contribution is expected to be approximately $30 million. At the same time, Entergy Corporation will terminate the existing $20 million parent guaranty supporting the trust; and
- Entergy has agreed to a potential contribution of $40 million of Department of Energy litigation proceeds expected in 2023 if, and only if, at that time certain decommissioning project milestones have not been met, if the cost to complete decommissioning and site restoration is expected to exceed the amount in the Nuclear Decommissioning Trust and the SRT, or if certain financial assurances have been called upon. If the conditions are met that require the contribution of the $40 million, those funds would be placed in an escrow account by NorthStar, but such funds could not be used unless all other forms of financial assurance (other than the $25 million NorthStar subcontractor guaranty) have been exhausted. NorthStar would remain liable to Entergy for the $40 million under the terms of the parties' commercial agreement.
- Release of the site to a radiological dose limit of 15 mrem/year from all pathways combined, with no more than 5 mrem/year from liquid effluents, with the understanding that NorthStar will attempt to attain a calculated annual 10mR TEDE All Pathways and 4mR TEDE Water residual radiation standard, unless NorthStar determines that the attainment of the latter standard would be cost prohibitive or technically infeasible because of site conditions;
- Completion of a comprehensive site investigation and any required corrective actions in accordance with ANR regulations and pursuant to a schedule developed in consultation with the Town of Vernon and approved by ANR;
- Compliance with the Vermont Radiological Health Rule intended to protect individual workers on the site and the general public outside of the Vermont Yankee property;
- Submission of plans (1) to perform groundwater sampling of non-radiological contamination, (2) to characterize below-grade structures that NorthStar proposes to leave in place, (3) for any use of concrete as fill at the site, and (4) for any use of off-site materials proposed to be used as fill on site, including a plan to characterize off-site materials;
- For applicable segments of the property, and upon approval of an institutional control plan by ANR, NorthStar will remediate the site to comply with environmental standards applicable to industrial sites. If NorthStar does not receive approval for an institutional control plan with respect to specific segments of the site, it shall remediate those segments to comply with standards applicable to residential sites;
- Removal of all above-ground structures at the site, other than the Independent Spent Fuel Storage Installation (ISFSI) and associated security facilities, the VELCO switchyard, the administrative office building known as the Plant Support Building, and the portion of the railroad spur that is able to be released for unrestricted use from the NRC-issued Vermont Yankee operating license; and
- Removal of all underground structures at the site — including, without limitation, building foundations, buried piping, and contained piping — to a depth of 4 feet below ground surface and to a greater depth wherever required to meet the site release standards described in the agreement. Asbestos-containing material shall be removed regardless of depth.
- Entergy initiated 2018 consolidated operational EPS guidance of $6.25 to $6.85 and Utility, Parent & Other adjusted EPS guidance of $4.50 to $4.90.
- The APSC issued an order approving E-AR's 2018 test year FRP settlement agreement.
- E-AR, E-TX and E-NO received approvals for AMI deployment.
- E-LA held its groundbreaking for the Lake Charles Power Station.
- NYISO concluded there will be no reliability issues resulting from IPEC retirement.
- Entergy raised its dividend for the third consecutive year.
- Center for Climate and Energy Solutions, of which Entergy is a member, ranked again in the top five environmental think tanks globally.
- A: Consolidated Results and Special Items
- B: Earnings Variance Analysis
- C: Utility Financial and Operating Measures
- D: EWC Financial and Operating Measures
- E: Consolidated Financial Measures
- F: Definitions and Abbreviations and Acronyms
- G: GAAP to Non-GAAP Reconciliations
- Entergy Arkansas reached an unopposed settlement with the Arkansas Attorney General and other intervenors on the recovery of nuclear costs in its 2017 and 2018 test year FRP filings. The settlement is subject to approval by the APSC.
- Entergy Arkansas and Entergy Texas filed settlement agreements for their AMI proceedings.
- Entergy Louisiana filed its application to extend and modify its annual formula rate plan.
- The PUCT approved Entergy Texas' DCRF settlement agreement.
- The utility companies successfully restored power to approximately 250,000 customers in the wake of Hurricane Harvey.
- Entergy plans to operate Palisades Power Plant until no later than May 31, 2022, under the existing power purchase agreement with Consumers Energy.
- Entergy was named to the 2017 Dow Jones Sustainability North America Index; this is the 16th consecutive year Entergy has appeared on the World or North America Index or both.
- A: Consolidated Results and Special Items
- B: Earnings Variance Analysis
- C: Utility Financial and Operating Measures
- D: EWC Financial and Operating Measures
- E: Consolidated Financial Measures
- F: Definitions and Abbreviations and Acronyms
- G: GAAP to Non-GAAP Reconciliations
- sophisticated property search options with advanced filtering capabilities and data exports;
- demographic and business data, Esri, which allows customers to view data by drive-time, radius, polygon, parish, region, state and more;
- simple property listing tools like full previews, enhanced multimedia management and a "quality score" summary to measure listing completeness; and
- additional new features like providing enhanced property details, creating and saving search alerts and the ability to create private listings.
- Customers. MCPS is a significant step forward for the region. The plant will provide a stable and secure supply of electricity for a growing region, resulting in estimated savings of $1.7 billion over 30 years for Entergy Texas' customers. The plant will produce immediate benefits to customers through lower energy costs. These fuel savings will pay off the cost of construction after less than 10 years of operation – a third of the plant's lifecycle.
- Communities. According to an economic impact study from TXP Inc., the construction of this facility will generate $1 billion in economic activity across Texas, comprised of $410 million direct investment in the local area, as well as generating $307 million in worker earnings and 7,000 total supported jobs (direct and indirect).
- Environment. MCPS will be built with the environment in mind, featuring state-of-the-art emissions control technology that will lower emissions compared to the existing fleet through the use of high-efficiency, combined-cycle natural gas turbines.
- Lower costs by reducing dependence on aging, less-efficient resources
- Improve reliability by locating the plant in the highly industrialized area
- Avoid some $600 million of transmission projects that would otherwise be needed to maintain reliability in the Lake Charles region
- Generate on average an estimated 1,200 direct and indirect jobs a year across the state
- Increase Louisiana business sales by more than $1.2 billion
- Grow household earnings by an estimated $420 million
- The sale of EWC's FitzPatrick plant to Exelon Generation was completed on March 31, 2017.
- The settlement on Indian Point is being implemented on the agreed-upon schedule.
- ELL signed a purchase and sale agreement for an approximately 360 megawatt gas-fired CT. Washington Parish Energy Center One, LLC, a subsidiary of Calpine Corporation, will construct the plant and ELL will purchase the plant once it is complete. The transaction is expected to close in 2021.
- EAI and ELL made primary selections from proposals offered in response to their RFPs for renewable resources.
- The PUCT issued a final order in our TCRF filing.
- Moody's upgraded Entergy Corporation's issuer rating to Baa2 from Baa3.
- Entergy was included in Corporate Responsibility Magazine's annual list of the 100 Best Corporate Citizens.
- A: Consolidated Results and Special Items
- B: Variance Analysis
- C: Utility Financial and Operational Measures
- D: EWC Financial and Operational Measures
- E: Consolidated Financial Measures
- F: Definitions, Abbreviations and Acronyms
- G: GAAP to Non-GAAP Reconciliations
- Entergy initiated 2017 consolidated operational EPS guidance of $4.75 to $5.35 and Utility, Parent & Other adjusted EPS guidance of $4.25 to $4.55.
- Entergy raised its dividend for the second consecutive year.
- The LPSC approved ELL's application to construct the St. Charles Power Station.
- ELL and EMI made filings requesting approval for AMI investment.
- Entergy made several announcements related to its wholesale strategy, including agreements which will result in the early closure of Indian Point Units 2 and 3 (in 2020 and 2021, respectively) and Palisades (in 2018).
- Moody's placed the ratings of Entergy Corporation under "review for upgrade" and S&P revised its outlook on Entergy to "positive" from "stable."
- For the 19th consecutive year, the Edison Electric Institute awarded Entergy's storm team with emergency response awards for recovery and/or assistance.
- A: Consolidated Results and Special Items
- B: Variance Analysis
- C: Utility Financial and Operational Measures
- D: EWC Financial and Operational Measures
- E: Consolidated Financial Performance Measures
- F: Definitions, Abbreviations and Acronyms
- G: GAAP to Non-GAAP Reconciliations
- Coastal Zone Management Act Consistency Certification from New York State;
- Water Quality Certificate and water discharge permits from New York State;
- Agreement by New York State and primary intervenor Riverkeeper to withdraw legal challenges to license renewal;
- Entergy will request that the NRC shorten the term of a renewed license for Indian Point from 2033 and 2035 for Units 2 and 3, respectively, to 2024 and 2025.
- Agreement by Entergy to provide $15 million as part of its continued commitment to community stakeholders and environmental stewardship; and
- Various inspections of Indian Point conducted by Entergy and New York State, supplemental to NRC inspections.
- AREVA, based in Paris with US decommissioning headquarters in Washington, DC, will be responsible for reactor vessel and internals segmentation and used nuclear fuel management support, including waste disposal transportation services. AREVA is a world leader in nuclear decommissioning services and used nuclear fuel management representing 10,000 employees worldwide and 600 US employees.
- Waste Control Specialists (WCS) will be responsible for waste management, packaging, transportation and disposal. Based in Dallas, WCS operates a radioactive waste disposal site in Andrews, Texas, that is the most comprehensive solution in the nation for low-level radioactive waste. WCS and partners AREVA and NAC International have submitted an application to the NRC to construct and operate a Consolidated Interim Storage Facility for spent fuel at its Andrews, Texas site.
- Burns & McDonnell, based in Kansas City, Mo., will provide engineering and regulatory support. Burns & McDonnell is a global full service engineering and environmental solutions firm with 5,500 employees worldwide.
- ETI filed for certification to construct the Montgomery County Power Station, an approximate 993 MW CCGT. This project was selected in ETI's RFP.
- Entergy reached an agreement to sell its EWC FitzPatrick nuclear power plant. The transaction is expected to close in second quarter 2017.
- EAI and ENOI made filings requesting approval of their advanced metering infrastructure investment.
- Standard & Poor's upgraded Entergy's system rating for Entergy and its Utility operating companies by one notch to BBB+.
- Entergy Corporation was named to the Dow Jones Sustainability North America Index, one of four U.S. electric utility companies designated a sustainability leader on the index.
- Appendix A: Consolidated Results and Special Items
- Appendix B: Variance Analysis
- Appendix C: Utility Financial and Operational Measures
- Appendix D: EWC Financial and Operational Measures
- Appendix E: Consolidated Financial Performance Measures
- Appendix F: Definitions, Abbreviations and Acronyms
- Appendix G: GAAP to Non-GAAP Reconciliations
- Entergy updated its consolidated operational EPS guidance range.
- Self-build resources were selected in ELL and ETI RFPs, as well as a PPA for ELL.
- EAI filed its first forward test year FRP.
- The PUCT approved ETI's TCRF.
- Moody's Investors Service upgraded EMI to positive outlook.
- Appendix A: Consolidated Results and Special Items
- Appendix B: Variance Analysis
- Appendix C: Utility Financial and Operational Measures
- Appendix D: EWC Financial and Operational Measures
- Appendix E: Consolidated Financial Performance Measures
- Appendix F: Definitions, Abbreviations and Acronyms
- Appendix G: GAAP to Non-GAAP Reconciliations
- Financial Statements
- Entergy Arkansas, Entergy Louisiana and Entergy New Orleans closed their acquisition of Union Power Station.
- ELL began construction on the Lake Charles Transmission Project, a $159 million project that will support continued reliable service to a rapidly growing area in our service territory.
- EAI finalized its 2015 rate case.
- Entergy Mississippi filed its annual formula rate plan with forward-looking features.
- Entergy announced it intends to refuel Pilgrim Nuclear Power Station in spring of 2017, then cease operations on May 31, 2019.
- Entergy was selected as a finalist for the 2016 Secretary of Defense Employer Support Freedom Award.
- The Environmental Protection Agency named ENOI a 2016 ENERGY STAR® Partner of the Year for its outstanding contributions in implementing energy-efficiency measures.
- Industrial sales increase of 6.2 percent,
- Governmental sales increase of 1.1 percent,
- Residential sales decrease of (0.6) percent, and
- Commercial sales decrease of (1.8) percent.
- Appendix A: Consolidated Results and Special Items
- Appendix B: Variance Analysis
- Appendix C: Utility Financial and Performance Measures
- Appendix D: EWC Performance Measures
- Appendix E: Consolidated Financial Performance Measures
- Appendix F: Definitions, Abbreviations and Acronyms
- Appendix G: GAAP to Non-GAAP Reconciliations
- Financial Statements
- 2016 operational EPS guidance range is $4.95 to $5.75 for Entergy consolidated; the range for Utility, Parent & Other Adjusted EPS is $4.20 to $4.50.
- Entergy Arkansas, Inc. filed an unopposed settlement agreement in its rate case.
- The sale of the Rhode Island State Energy Center power plant closed in December.
- Entergy announced the shutdown date for the James A. FitzPatrick Nuclear Power Plant is planned to be Jan. 27, 2017.
- Independent system operators' reliability studies found that FitzPatrick and the Pilgrim Nuclear Power Station (beyond June 1, 2019) are not required for their respective regions.
- For the 18th consecutive year, the Edison Electric Institute awarded Entergy's storm team with a national storm restoration award.
- Weather-adjusted residential sales increase of 1.6 percent,
- Commercial sales slight decrease of (0.1) percent on a weather-adjusted basis,
- Weather-adjusted governmental sales increase of 4.2 percent and
- Industrial sales increase of 0.6 percent.
- Appendix A: Consolidated Results and Special Items
- Appendix B: Variance Analysis
- Appendix C: Utility Financial and Performance Measures
- Appendix D: EWC Performance Measures
- Appendix E: Financial Performance Measures
- Appendix F: Definitions, Abbreviations and Acronyms
- Appendix G: GAAP to Non-GAAP Reconciliations
- Financial Statements
2/4/2021 - Entergy Corporation Names John Weiss as Vice President of Sustainability and Environmental Policy
Entergy Corporation Names John Weiss as Vice President of Sustainability and Environmental Policy
Source: PR Newswire
Orignial Article: https://contentapi.cision...
NEW ORLEANS, Feb. 4, 2021 /PRNewswire/ -- Entergy Corporation (NYSE: ETR), a national leader in sustainability and environmental stewardship, today named John Weiss as vice president of sustainability and environmental policy.
Weiss will begin his new role effective Feb. 8, and will report to Mike Twomey, Entergy's senior vice president of federal policy, regulatory and governmental affairs. He succeeds Chuck Barlow, who retired from the company last year.
"John's extensive experience on environmental, social and governance matters positions him well to advance Entergy's already strong value proposition of delivering long-term, sustainable results for all stakeholders," said Twomey. "John will be an important voice with our stakeholders as we work toward achieving our net-zero emissions by 2050 commitment and other important ESG targets."
Weiss brings seven years of sustainability integration and strategic leadership experience to the role. He comes to Entergy from the Boston-based sustainability nonprofit organization Ceres, where he served as senior director for the last two years and helped drive engagement with large energy and energy-related U.S. companies, focusing on sustainable business strategies, corporate governance and operational performance.
Prior to joining Ceres in 2013, Weiss spent more than 20 years as a consultant to clients in the public and private sectors on a broad range of environmental and energy-related issues. He also previously worked at Cambridge Energy Research Associates, where he developed and communicated strategic insights to global energy industry clients.
Weiss earned a bachelor's degree in geological sciences from Brown University and a Master of Science degree in technology and policy from the Massachusetts Institute of Technology.
Learn more about Entergy's longstanding commitment to sustainability and environmental stewardship by visiting entergy.com/sustainability.
About Entergy Corporation
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 8,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,600 employees.
entergy.com
facebook.com/Entergy
Twitter: @Entergy
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SOURCE Entergy Corporation
Article Date
2/4/2021Entergy Corporation Announces Quarterly Dividend Payment to Shareholders
Source: PR Newswire
Orignial Article: https://contentapi.cision...
NEW ORLEANS, Jan. 29, 2021 /PRNewswire/ -- The board of directors of Entergy Corporation (NYSE: ETR) has declared a quarterly dividend payment of $0.95 per share on the company's common stock. The dividend is payable March 1, 2021, to shareholders of record as of Feb. 12, 2021.
Entergy has paid a common stock dividend to shareholders continuously since 1988.
About Entergy Corporation
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 8,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,600 employees.
entergy.com
facebook.com/Entergy
Twitter: @Entergy
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SOURCE Entergy Corporation
Article Date
1/29/2021Montgomery County Power Station Achieves Commercial Operation
Source: PR Newswire
Orignial Article: https://contentapi.cision...
THE WOODLANDS, Texas, Jan. 12, 2021 /PRNewswire/ -- The state-of-the-art Montgomery County Power Station achieved commercial operation on Jan. 1, providing another source of reliable and clean energy to a growing southeast Texas.
"We are excited to announce that the Montgomery County Power Station achieved commercial operation and is serving customers well ahead of schedule," said Sallie Rainer, president and CEO of Entergy Texas, Inc. "The plant will not only meet our customers' needs today by improving reliability and resulting in substantial customer savings, but it also prepares our region for future growth."
The 993-megawatt power station utilizes new technology that provides a cleaner and more efficient source of power. Because of the plant's high efficiency, it is projected to result in significant savings to customers over its life. Construction on the facility in Willis began in 2018, and the plant officially reached commercial operation well ahead of its originally scheduled completion date. In total, construction of the plant resulted in approximately 1,000 onsite employees and created a significant economic impact on the local area, with millions spent with local vendors. Ongoing operations of the plant will employ 31 people.
"Thank you to the Public Utility Commission, state and local stakeholders, for their partnership and support to bring this modern and efficient plant to our region," said Rainer.
The completion of the Montgomery County Power Station is the latest step in Entergy Texas' plan to modernize infrastructure to better serve customers. Over the next three years, Entergy Texas is investing $2.1 billion in new generation, transmission and distribution upgrades to meet growing demand, replace aging infrastructure and improve service to customers across southeast Texas.
About Entergy Texas
Entergy Texas, Inc. provides electricity to approximately 461,000 customers in 27 counties. Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 8,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,600 employees.
entergytexas.com
Twitter: @EntergyTX
Facebook: Facebook.com/EntergyTX
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SOURCE Entergy Corporation
Article Date
1/12/2021Entergy and Holtec File Request to Transfer Palisades Nuclear Plant Post-Shutdown, Holtec to Complete Decommissioning Decades Sooner than Entergy
Source: PR Newswire
COVERT, Mich., Dec. 23, 2020 /PRNewswire/ -- Entergy Corporation and Holtec International, through their affiliates, jointly submitted a License Transfer Application today with the U.S. Nuclear Regulatory Commission requesting approval to transfer the NRC licenses for the Palisades Nuclear Plant to Holtec following its shutdown and permanent defueling in the spring of 2022.
"Holtec's plan to safely accelerate the Palisades decommissioning schedule by more than four decades provides the potential for site redevelopment much sooner than if Entergy continued to own the facility after shutdown," said Chris Bakken, Entergy Executive Vice President Nuclear Operations and Chief Nuclear Officer. "The completion of major decommissioning activities on an accelerated timeframe is important to the local community, which could benefit from economic opportunity at the site."
Holtec's filings detail its plan to complete the dismantling, decontamination, and remediation of Palisades to NRC standards by 2041, more than 40 years sooner than if Entergy continued to own the facility and selected the maximum 60-year NRC SAFSTOR option for decommissioning. As part of the agreement between the companies, Holtec will provide job opportunities for around 260 of Entergy's employees who currently work at Palisades. Entergy previously announced a plan to find a position within its company for qualified employees who are willing to relocate.
"This key regulatory filing sets in motion a new beginning for Palisades and the local community," said Holtec's President and Chief Executive Officer, Dr. Kris Singh. "As a proven leader in decommissioning, with a dynamic fleet of projects around the nation and the globe, Palisades' neighbors and stakeholders are assured a strong and steadfast commitment to safety, precision, and efficiency as our Holtec team decommissions this facility and brings a new economic future to the region."
The application also requests approval of the license transfer of Entergy's already-decommissioned Big Rock Point facility near Charlevoix, Mich., where only an Independent Spent Fuel Storage Installation remains.
Following NRC regulatory approval and transaction close, Holtec will assume ownership of the Palisades site, its Nuclear Decommissioning Trust fund, real property, and used nuclear fuel. It will also assume ownership of the Big Rock Point ISFSI property and used nuclear fuel.
In addition to today's License Transfer Application, Holtec submitted to the NRC a Post-Shutdown Decommissioning Activities Report and Decommissioning Cost Estimate, which describe Holtec's decommissioning plan, schedule, and cost estimate of planned decommissioning activities for Palisades. Holtec also submitted an exemption request to allow the use of the Palisades NDT for spent fuel management and site restoration activities.
Holtec's schedule calls for the movement of all spent nuclear fuel from the onsite spent fuel pool to dry cask storage on the Palisades ISFSI by 2025. After all spent fuel is safely moved to the ISFSI, major decommissioning work will commence in approximately 2035, allowing the NDT balance to grow.
If the transaction is completed, Palisades and Big Rock Point would join Holtec's growing fleet of decommissioning plants. The NRC previously approved License Transfer Applications for the shutdown Oyster Creek Nuclear Generating Station in New Jersey from Exelon Corporation to Holtec and for the shutdown Pilgrim Nuclear Power Station in Massachusetts from Entergy to Holtec, and the transfer of the Indian Point Energy Center from Entergy to Holtec following shutdown of its remaining unit (Indian Point Unit 3), which is scheduled for April 2021. In all cases, the NRC concluded that Holtec affiliate Holtec Decommissioning International met the regulatory, legal, technical, and financial requirements necessary to decommission those facilities.
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, Entergy's plans and expectations with respect to the Palisades Nuclear Plant, the proposed post-shutdown sale of the Palisades Nuclear Plant, and other statements of Entergy's plans, beliefs or expectations included in this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Forward-looking statements are subject to a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy's most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q, and Entergy's other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans, and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) risks associated with operating nuclear facilities, including plant relicensing, operating, and regulatory costs and risks; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning Entergy's nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with executing on business strategies, including strategic transactions that Entergy or its subsidiaries may undertake and the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state, or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental, or energy policies; (i) the effects of changes in commodity markets, capital markets, or economic conditions; (j) impacts from a terrorist attack, cybersecurity threats, data security breaches, or other attempts to disrupt Entergy's business or operations, and/or other catastrophic events; (k) the direct and indirect impacts of the COVID-19 pandemic on Entergy and its customers; and (l) the effects of technological change, including the costs, pace of development and commercialization of new and emerging technologies.
Background Information
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 8,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy has annual revenues of $11 billion and approximately 13,600 employees. Additional information is available at entergy.com.
Holtec International is a privately held energy technology company with operation centers in Florida, New Jersey, Ohio, and Pennsylvania in the U.S., and globally in Brazil, Dubai, India, South Africa, Spain, U.K., and Ukraine. Holtec's principal business concentration is in the nuclear power industry. Holtec has played a preeminent role since the 1980s by densifying wet storage in nuclear plants' spent fuel pools deferring the need for and expense of alternative measures by as much as two decades at over 110 reactor units in the U.S. and abroad. Dry storage and transport of nuclear fuel is another area in which Holtec is recognized as the foremost innovator and industry leader with a dominant market share and an active market presence in eighteen countries. Among the Company's pioneering endeavors are the world's first below-ground Consolidated Interim Storage Facility being developed in New Mexico and a 160-Megawatt walk away safe small modular reactor, SMR-160. The SMR-160 is developed to bring cost competitive carbon-free energy to all corners of the earth including water-challenged regions. Holtec is also a major supplier of special-purpose pressure vessels and critical-service heat exchange equipment such as air-cooled condensers, steam generators, feedwater heaters, and water-cooled condensers. Virtually all products produced by the Company are built in its three large manufacturing plants in the U.S. and one in India. Thanks to a solid record of consistent profitability and steady growth since its founding in 1986, Holtec has no history of any long-term debt and enjoys a platinum credit rating from the financial markets. Nearly 100 U.S. and international patents protect the Company's intellectual property from predation by its global competitors and lend predictable stability to its business base. To learn more about Holtec International, please visit www.holtecinternational.com.
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SOURCE Entergy Corporation
Article Date
12/23/2020Entergy Named a Top Sustainability Company for 19th Consecutive Year
Source: PR Newswire
NEW ORLEANS, Nov. 25, 2020 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) has been recognized among the top 20% of companies in North America demonstrating sustainable business practices as noted by S&P Dow Jones Indices in its 2020 Dow Jones Sustainability North America Index. Entergy is one of only four companies in the electric utility sector named to the list. The index recognizes outstanding transparency and performance against a highly detailed framework of long-term economic, environmental and social criteria. Entergy is the only company in the sector to be included on the index for 19 consecutive years.
"The need for sustainability leadership is more critical now than ever before," said Leo Denault, Entergy's chairman and CEO. "Sustainability directly influences our ability to thrive, even in a year wrought with challenges, and enables us to deliver the desired outcomes for our customers, employees, communities and owners. As Entergy continues to build the premier utility, we are proud to be recognized by DJSI for our longstanding commitment to creating sustainable value for all our stakeholders."
An award-winning national leader in sustainability and environmental stewardship for two decades, Entergy announced in September 2020 its new climate commitment of achieving net-zero carbon emissions by 2050. The company also recently announced a $1.4 billion capital plan to grow its renewable energy portfolio, adding more clean energy resources to its already industry-leading clean power generation portfolio.
The North America Index reflects the sustainability performance in 2019 of the top 20% of the 600 largest North American companies in the S&P Global Broad Market Index. DJSI names sustainability leaders based on an assessment of environmental, social and economic criteria, including a company's ESG strategy, risk and opportunity management and performance. Entergy earned perfect scores in the areas of Materiality, Policy Influence, Environmental Reporting, Climate Strategy, Water-Related Risks and Social Reporting. The company also achieved top decile rankings in Corporate Governance, Codes of Business Conduct, Information Security/Cybersecurity & System Availability, Environmental Policy & Management Systems and Talent Attraction & Retention.
Entergy's 2019 Integrated Report, "Building The Premier Utility," details the company's sustainability leadership, actions and aspirations for the future. Some of the highlights of Entergy's ESG leadership in 2019 include:
Learn more about Entergy's sustainability story here and about this year's Dow Jones Sustainability Index here.
About Entergy Corporation
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 8,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,600 employees.
entergy.com
facebook.com/Entergy
Twitter: @Entergy
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SOURCE Entergy Corporation
Article Date
11/25/2020Entergy Louisiana Acquires Washington Parish Energy Center
Source: PR Newswire
BATON ROUGE, La., Nov. 24, 2020 /PRNewswire/ -- Entergy Louisiana, LLC has completed the purchase of the Washington Parish Energy Center, an approximately 361-megawatt facility that will deliver a modern, cost-effective, low-carbon and reliable source of power to the company's grid.
Constructed by a subsidiary of Calpine Corporation, the natural gas-powered plant is located near Bogalusa and will operate as a peaking facility.
"We continue to seek opportunities to add to our clean-energy portfolio, and the Washington Parish Energy Center is another step in us meeting those goals," said Phillip May, Entergy Louisiana president and CEO. "The plant also helps ensure we continue to deliver reliable power to our customers at some of the lowest rates in the country."
On April 21, 2017, Entergy Louisiana and Calpine signed a plant purchase and sale agreement, which was unanimously approved by the Louisiana Public Service Commission. The total cost of the plant is approximately $261 million.
The unit will provide Entergy Louisiana with needed peaking and reserve generating capacity. The company currently depends upon older, less efficient natural gas-powered plants to help meet peak demand, but start-up times make them less effective as peaking resources. Modern combustion turbines like the two in Washington Parish are specifically designed to start and ramp up quickly to meet customers' immediate energy needs.
"We extend our thanks to Entergy Louisiana for being a valued partner during the development and construction of this facility," said Caleb Stephenson, Calpine executive vice president and co-head, commercial operations. "This project demonstrates Calpine's commitment to develop and deliver commercial solutions for our utility customers, and we look forward to working with Entergy again."
Entergy Louisiana, LLC provides electric service to more than 1 million customers and natural gas service to more than 93,000 customers in the greater Baton Rouge area. It has operations in southern, central and northern Louisiana. It is a subsidiary of Entergy Corporation, an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 8,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,600 employees.
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SOURCE Entergy Corporation
Article Date
11/24/2020License Transfer Request for Indian Point Approved by NRC
Source: PR Newswire
BUCHANAN, N.Y., Nov. 23, 2020 /PRNewswire/ -- The U.S. Nuclear Regulatory Commission today approved the application to transfer the licenses for Indian Point Energy Center's nuclear power plants Unit 1, Unit 2 and Unit 3, from Entergy Corporation (NYSE: ETR) subsidiaries to a Holtec International subsidiary for prompt decommissioning. The transfer of Indian Point to Holtec, currently targeted for May 2021, would occur following the satisfaction of all closing conditions, including the permanent shutdown and reactor defueling of Unit 3, which is the last operating power plant at Indian Point. Unit 3 will shut down by April 30, 2021.
Entergy and Holtec jointly filed a License Transfer Application with the NRC in November 2019, requesting approval for the transfer of Indian Point, along with its Nuclear Decommissioning Trusts (NDTs) and decommissioning liability, from current owner Entergy to Holtec.
"The NRC's approval of the Indian Point license transfer is a critical milestone as we move closer to completing the transaction," said Leo Denault, Entergy's Chairman and Chief Executive Officer. "The sale of Indian Point following its permanent shutdown will benefit the community by enabling the facility to be removed and the site remediated decades sooner than otherwise thought possible. Stakeholders in the community will benefit from a dismantling and decommissioning process that can begin promptly following shutdown next year."
In its decision, the NRC determined that Holtec possesses the required technical and financial qualifications to decommission Indian Point safely and in accordance with NRC requirements. Previously, the NRC approved two separate transfers of retired nuclear power plants to Holtec for prompt decommissioning; Holtec currently owns and is decommissioning the shutdown Oyster Creek nuclear power plant in New Jersey and the shutdown Pilgrim nuclear power plant in Massachusetts. Additionally, the NRC previously approved the license transfer of Vermont Yankee to NorthStar Group Services in support of Entergy's effort to divest of its merchant nuclear fleet to focus on its regulated and transformation strategies.
Holtec plans to begin the decommissioning process promptly upon taking ownership, and as part of the agreement between the companies, will initially provide job opportunities for approximately 300 of Entergy's current employees at Indian Point. Holtec also has agreed to honor the collective bargaining agreements that apply to current employees.
Separate from the NRC approval, Entergy and Holtec previously filed a petition with the New York Public Service Commission requesting a ruling disclaiming PSC jurisdiction or abstaining from review of the proposed transaction, or, in the alternative, an order approving the proposed transaction. That petition remains pending before the PSC.
Holtec's plan for decommissioning will result in the release for re-use of the vast majority of the site in the 2030s, with the exception of the Independent Spent Fuel Storage Installation and its security perimeter – the area where spent nuclear fuel is safely stored in dry casks until the U.S. Department of Energy transfers the spent fuel offsite. As part of its plan, Holtec expects to move all of the Indian Point spent nuclear fuel into dry casks within about three years following facility shutdown in 2021. Holtec has a pending application with the NRC for a Consolidated Interim Storage Facility in New Mexico, which could eventually store spent nuclear fuel from Indian Point and other U.S. nuclear power plants.
About Entergy
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 8,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,600 employees.
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SOURCE Entergy Corporation
Article Date
11/23/2020Entergy Corporation Adds Brian Ellis to Board of Directors
Source: PR Newswire
NEW ORLEANS, Nov. 2, 2020 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) today announced the appointment of Brian Ellis to its board of directors, effective Oct. 30, 2020. Ellis brings a strong business acumen coupled with nearly 30 years of legal, corporate governance and business leadership experience that will serve Entergy well as it continues to create sustainable value for its stakeholders.
"I'm pleased to have Brian Ellis join our board of directors," said Leo Denault, Entergy chairman and CEO. "Brian's experience setting and executing business and legal strategies for innovation-oriented companies makes him a valuable addition to the board. His contributions and insights as a business advisor will be instrumental in helping us build the premier utility."
This change will expand the size of Entergy's board to 11 directors.
Ellis, 54, is senior vice president and general counsel at Danaher Corporation, a global science and technology innovation company. In this role, Ellis leads all legal and compliance matters for the $17.9 billion company, including issues related to corporate governance, quality assurance and regulatory affairs, sustainability, intellectual property and risk management, as well as the company's environment, health and safety group.
Prior to Danaher, Ellis held the position of vice president and counsel at Medtronic, Inc., where he was the general counsel to the restorative therapies group. In previous roles, he served as chief compliance officer, and later general counsel, of monitoring solutions and services at GE Healthcare. Early in his career, Ellis was a litigation partner in private law firms and served as an Assistant United States Attorney for the Northern District of Illinois.
Brian Ellis holds a law degree from the University of Illinois and a bachelor's degree from Lake Forest College. He lives in Bethesda, Maryland.
About Entergy Corporation
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 8,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,600 employees.
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SOURCE Entergy Corporation
Article Date
11/2/2020Entergy Corporation Announces Increase in Quarterly Dividend
Source: PR Newswire
NEW ORLEANS, Oct. 30, 2020 /PRNewswire/ -- The board of directors of Entergy Corporation (NYSE: ETR) has declared a quarterly dividend payment on its common stock of $0.95, an increase of $0.02 per share. The dividend is payable Dec. 1, 2020, to shareholders of record as of Nov. 12, 2020.
Entergy has paid a common stock dividend to shareholders continuously since 1988.
About Entergy Corporation
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 8,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,600 employees.
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SOURCE Entergy Corporation
Article Date
10/30/202010/28/2020 - Entergy Reports Third Quarter Earnings
Entergy Reports Third Quarter Earnings
Source: PR Newswire
NEW ORLEANS, Oct. 28, 2020 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported third quarter 2020 earnings of $2.59 per share on an as-reported basis and $2.44 per share on an adjusted basis (non-GAAP).
"We delivered another strong quarter. With the confidence and clarity we have for the remainder of the year, we are narrowing our 2020 adjusted earnings per share guidance range, and we are affirming our longer-term outlooks," said Entergy Chairman and Chief Executive Officer Leo Denault. "This year has presented challenges for all of us and, at Entergy, we were well prepared. For the past several years, we've been building the culture, processes, and resources to successfully deliver on our commitments, even in the face of extraordinary times. It's what our stakeholders expect of us. Our strong results demonstrate the progress we've made."
Business highlights included the following:
Consolidated Earnings (GAAP and Non-GAAP Measures) | ||||||
Third Quarter and Year-to-Date 2020 vs. 2019 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of adjustments) | ||||||
Third Quarter | Year-to-Date | |||||
2020 | 2019 | Change | 2020 | 2019 | Change | |
(After-tax, $ in millions) | ||||||
As-reported earnings | 521 | 365 | 156 | 1,000 | 856 | 144 |
Less adjustments | 30 | (141) | 171 | 4 | (70) | 74 |
Adjusted earnings (non-GAAP) | 491 | 506 | (15) | 996 | 927 | 70 |
Estimated weather in billed sales | 1 | 13 | (12) | (53) | 1 | (54) |
(After-tax, per share in $) | ||||||
As-reported earnings | 2.59 | 1.82 | 0.77 | 4.98 | 4.38 | 0.60 |
Less adjustments | 0.15 | (0.70) | 0.85 | 0.02 | (0.36) | 0.38 |
Adjusted earnings (non-GAAP) | 2.44 | 2.52 | (0.08) | 4.96 | 4.74 | 0.22 |
Estimated weather in billed sales | 0.01 | 0.06 | (0.05) | (0.26) | 0.01 | (0.27) |
Calculations may differ due to rounding |
Consolidated Results
For third quarter 2020, the company reported earnings of $521 million, or $2.59 per share, on an as-reported basis, and earnings of $491 million, or $2.44 per share, on an adjusted basis. This compared to third quarter 2019 earnings of $365 million, or $1.82 per share, on an as-reported basis, and earnings of $506 million, or $2.52 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.
Business Segment Results
Utility
For third quarter 2020, the Utility business reported earnings attributable to Entergy Corporation of $552 million, or $2.74 per share, on both an as-reported and an adjusted basis. This compared to third quarter 2019 earnings of $578 million, or $2.88 per share, on both an
as-reported basis and an adjusted basis. Drivers for the quarter included:
These drivers were partially offset by:
Appendix C contains additional details on Utility financial and operating measures.
Parent & Other
For third quarter 2020, Parent & Other reported a loss attributable to Entergy Corporation of $(61 million), or (30) cents per share, on both an as-reported basis and an adjusted basis. This compared to a loss of $(72 million), or (36) cents per share, on both an as-reported and an adjusted basis in third quarter 2019.
Entergy Wholesale Commodities
For third quarter 2020, EWC reported earnings attributable to Entergy Corporation of
$30 million, or 15 cents per share, on an as-reported basis. This compared to a third quarter 2019 loss of $(141 million), or (70) cents per share, on an as-reported basis. Drivers for the quarter included:
These drivers were partially offset by lower revenue due to the shutdown of Indian Point 2.
Appendix D contains additional details on EWC financial and operating measures, including a reconciliation for non-GAAP EWC adjusted EBITDA.
Earnings Per Share Guidance
Entergy narrowed its 2020 adjusted EPS guidance to a range of $5.60 to $5.70 from $5.45 to $5.75. See webcast presentation slides for additional details.
The company has provided 2020 earnings guidance with regard to the non-GAAP measure of Entergy adjusted EPS. This measure excludes from the corresponding GAAP financial measure the effect of adjustments as described below under "Non-GAAP Financial Measures." The company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot predict and quantify with a reasonable degree of confidence all of the adjustments that may occur during the period. One such adjustment will be the exclusion of EWC earnings from Entergy adjusted EPS. We currently estimate that the contribution of EWC to Entergy's as-reported EPS will be approximately (30) cents in 2020. These estimates are subject to substantial uncertainty due to, among other things, the potential effects of exiting the EWC business.
Earnings Teleconference
A teleconference will be held at 10:00 a.m. Central Time on Wednesday, October 28, 2020, to discuss Entergy's quarterly earnings announcement and the company's financial performance. The teleconference may be accessed by visiting Entergy's website at www.entergy.com or by dialing 844-309-6569, conference ID 7684714, no more than 15 minutes prior to the start of the call. The webcast slide presentation is also posted to Entergy's website concurrent with this news release, which was issued before market open on the day of the call. A replay of the teleconference will be available on Entergy's website at www.entergy.com and by telephone. The telephone replay will be available through November 4, 2020, by dialing 855-859-2056, conference ID 7684714.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 8,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy has annual revenues of $11 billion and approximately 13,600 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 slide presentation. Both documents are available on Entergy's Investor Relations website at www.entergy.com/investor_relations.
Entergy maintains a web page as part of its Investor Relations website, entitled Regulatory and Other Information, which provides investors with key updates of certain regulatory proceedings and important milestones on the execution of its strategy. While some of this information may be considered material information, investors should not rely exclusively on this page for all relevant company information.
For definitions of certain operating measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the earnings release materials, see Appendix F.
Non-GAAP Financial Measures
This news release contains non-GAAP financial measures, which are generally numerical measures of a company's performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Entergy has provided quantitative reconciliations within this news release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Entergy reports earnings using the non-GAAP measure of Entergy adjusted earnings, which excludes the effect of certain "adjustments," including the removal of the Entergy Wholesale Commodities segment in light of the company's decision to exit the merchant power business. Adjustments are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as the results of the EWC segment, significant tax items, and other items such as certain costs, expenses, or other specified items. In addition to reporting GAAP consolidated earnings on a per share basis, Entergy reports its adjusted earnings on a per share basis. These per share measures represent the applicable earnings amount divided by the diluted average number of common shares outstanding for the period.
Management uses the non-GAAP financial measures of adjusted earnings and adjusted earnings per share for, among other things, financial planning and analysis; reporting financial results to the board of directors, employees, stockholders, analysts, and investors; and internal evaluation of financial performance. Entergy believes that these non-GAAP financial measures provide useful information to investors in evaluating the ongoing results of Entergy's business, comparing period to period results, and comparing Entergy's financial performance to the financial performance of other companies in the utility sector.
Other non-GAAP measures, including adjusted EBITDA; adjusted ROE; adjusted ROIC; gross liquidity; net liquidity; net liquidity, including storm escrows; debt to capital, excluding securitization debt; net debt to net capital, excluding securitization debt; parent debt to total debt, excluding securitization debt; FFO; FFO to debt, excluding securitization debt; and FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC, are measures Entergy uses internally for management and board discussions and to gauge the overall strength of its business. Entergy believes the above data provides useful information to investors in evaluating Entergy's ongoing financial results and flexibility, and assists investors in comparing Entergy's credit and liquidity to the credit and liquidity of others in the utility sector. In addition, other financial measures including net income (or earnings), adjusted for preferred dividends and tax-effected interest expense; ROIC; and ROE are included on both an adjusted and an as-reported basis. In each case, the metrics defined as "adjusted" (other than EWC's adjusted EBITDA) excludes the effect of adjustments as defined above. EWC's adjusted EBITDA represents EWC's earnings before interest, taxes, and depreciation and amortization, and also excludes decommissioning expense.
These non-GAAP financial measures reflect an additional way of viewing aspects of Entergy's operations that, when viewed with Entergy's GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting Entergy's business. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. Investors are strongly encouraged to review Entergy's consolidated financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Although certain of these measures are intended to assist investors in comparing Entergy's performance to other companies in the utility sector, non-GAAP financial measures are not standardized; therefore, it might not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
Cautionary Note Regarding Forward-Looking Statements
In this news release, and from time to time, Entergy Corporation makes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, among other things, statements regarding Entergy's 2020 earnings guidance; its current financial and operational outlooks; and other statements of Entergy's plans, beliefs, or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Forward-looking statements are subject to a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy's most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q, and Entergy's other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans, and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) risks associated with operating nuclear facilities, including plant relicensing, operating, and regulatory costs and risks; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning Entergy's nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with executing on business strategies, including strategic transactions that Entergy or its subsidiaries may undertake and the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state, or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental, or energy policies; (i) the effects of changes in commodity markets, capital markets, or economic conditions; (j) impacts from a terrorist attack, cybersecurity threats, data security breaches, or other attempts to disrupt Entergy's business or operations, and/or other catastrophic events; (k) the direct and indirect impacts of the COVID-19 pandemic on Entergy and its customers; and (l) the effects of technological change, including the costs, pace of development and commercialization of new and emerging technologies.
Third Quarter 2020 Earnings Release Appendices and Financial Statements
Appendices
A: Consolidated Results and Adjustments
B: Earnings Variance Analysis
C: Utility Financial and Operating Measures
D: EWC Financial and Operating Measures
E: Consolidated Financial Measures
F: Definitions and Abbreviations and Acronyms
G: Other GAAP to Non-GAAP Reconciliations
Financial Statements
Consolidating Balance Sheets
Consolidating Income Statements
Consolidated Cash Flow Statements
A: Consolidated Results and Adjustments
Appendix A-1 provides a comparative summary of consolidated earnings, including a reconciliation of as-reported earnings (GAAP) to adjusted earnings (non-GAAP).
Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures Third Quarter and Year-to-Date 2020 vs. 2019 (See Appendix A-3 and Appendix A-4 for details on adjustments) | ||||||
Third Quarter | Year-to-Date | |||||
2020 | 2019 | Change | 2020 | 2019 | Change | |
(After-tax, $ in millions) | ||||||
As-reported earnings (loss) | ||||||
Utility | 552 | 578 | (27) | 1,216 | 1,140 | 76 |
Parent & Other | (61) | (72) | 11 | (220) | (213) | (6) |
EWC | 30 | (141) | 171 | 4 | (70) | 74 |
Consolidated | 521 | 365 | 156 | 1,000 | 856 | 144 |
Less adjustments | ||||||
Utility | - | - | - | - | - | - |
Parent & Other | - | - | - | - | - | - |
EWC | 30 | (141) | 171 | 4 | (70) | 74 |
Consolidated | 30 | (141) | 171 | 4 | (70) | 74 |
Adjusted earnings (loss) (non-GAAP) | ||||||
Utility | 552 | 578 | (27) | 1,216 | 1,140 | 76 |
Parent & Other | (61) | (72) | 11 | (220) | (213) | (6) |
EWC | - | - | - | - | - | - |
Consolidated | 491 | 506 | (15) | 996 | 927 | 70 |
Estimated weather in billed sales | 1 | 13 | (12) | (53) | 1 | (54) |
Diluted average number of common shares outstanding (in millions) | 201 | 200 | 201 | 196 | ||
(After-tax, per share in $) (a) | ||||||
As-reported earnings (loss) | ||||||
Utility | 2.74 | 2.88 | (0.14) | 6.05 | 5.83 | 0.22 |
Parent & Other | (0.30) | (0.36) | 0.06 | (1.09) | (1.09) | (0.00) |
EWC | 0.15 | (0.70) | 0.85 | 0.02 | (0.36) | 0.38 |
Consolidated | 2.59 | 1.82 | 0.77 | 4.98 | 4.38 | 0.60 |
Less adjustments | ||||||
Utility | - | - | - | - | - | - |
Parent & Other | - | - | - | - | - | - |
EWC | 0.15 | (0.70) | 0.85 | 0.02 | (0.36) | 0.38 |
Consolidated | 0.15 | (0.70) | 0.85 | 0.02 | (0.36) | 0.38 |
Adjusted earnings (loss) (non-GAAP) | ||||||
Utility | 2.74 | 2.88 | (0.14) | 6.05 | 5.83 | 0.22 |
Parent & Other | (0.30) | (0.36) | 0.06 | (1.09) | (1.09) | (0.00) |
EWC | - | - | - | - | - | - |
Consolidated | 2.44 | 2.52 | (0.08) | 4.96 | 4.74 | 0.22 |
Estimated weather in billed sales | 0.01 | 0.06 | (0.05) | (0.26) | 0.01 | (0.27) |
Calculations may differ due to rounding | |
(a) | Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period. |
See Appendix B for detailed earnings variance analysis.
Appendix A-2 provides a comparative summary of OCF, by business.
Appendix A-2: Consolidated Operating Cash Flow | ||||||
Third Quarter and Year-to-Date 2020 vs. 2019 | ||||||
($ in millions) | ||||||
Third Quarter | Year-to-Date | |||||
2020 | 2019 | Change | 2020 | 2019 | Change | |
Utility | 976 | 1,143 | (168) | 2,371 | 2,297 | 73 |
Parent & Other | (67) | (93) | 26 | (211) | (216) | 5 |
EWC | 13 | 15 | (3) | 211 | 37 | 174 |
Consolidated | 922 | 1,065 | (143) | 2,370 | 2,118 | 252 |
Calculations may differ due to rounding |
OCF decreased quarter-over-quarter due primarily to lower collections from Utility customers, due in part to COVID-19, and higher pension funding, partially offset by a lower amount of unprotected excess ADIT returned to customers. Intercompany income tax payments contributed to the line of business variances.
Appendix A-3 and Appendix A-4 list adjustments by business. Adjustments are included in as-reported earnings consistent with GAAP but are excluded from adjusted earnings. As a result, adjusted earnings is considered a non-GAAP measure.
Appendix A-3: Adjustments by Driver (shown as positive/(negative) impact on earnings or EPS) | ||||||
Third Quarter and Year-to-Date 2020 vs. 2019 | ||||||
Third Quarter | Year-to-Date | |||||
2020 | 2019 | Change | 2020 | 2019 | Change | |
(Pre-tax except for income taxes, preferred dividend requirements, and totals; $ in millions) | ||||||
EWC | ||||||
Income before income taxes | 43 | (171) | 214 | 12 | (43) | 55 |
Income taxes | (12) | 31 | (43) | (6) | (26) | 20 |
Preferred dividend requirements | (1) | (1) | - | (2) | (2) | - |
Total EWC | 30 | (141) | 171 | 4 | (70) | 74 |
Total adjustments | 30 | (141) | 171 | 4 | (70) | 74 |
(After-tax, per share in $) (b) | ||||||
EWC | ||||||
Total EWC | 0.15 | (0.70) | 0.85 | 0.02 | (0.36) | 0.38 |
Total adjustments | 0.15 | (0.70) | 0.85 | 0.02 | (0.36) | 0.38 |
Calculations may differ due to rounding | |
(b) | Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period. |
Appendix A-4: Adjustments by Income Statement Line Item (shown as positive/(negative) impact on earnings) | ||||||
Third Quarter and Year-to-Date 2020 vs. 2019 | ||||||
(Pre-tax except for income taxes, preferred dividend requirements, and totals; $ in millions) | ||||||
Third Quarter | Year-to-Date | |||||
2020 | 2019 | Change | 2020 | 2019 | Change | |
EWC | ||||||
Operating revenues | 214 | 300 | (86) | 747 | 1,024 | (277) |
Fuel and fuel-related expenses | (14) | (26) | 11 | (51) | (76) | 25 |
Purchased power | (29) | (18) | (11) | (49) | (49) | (1) |
Nuclear refueling outage expense | (11) | (12) | 2 | (35) | (36) | 2 |
Other O&M | (114) | (136) | 23 | (385) | (513) | 128 |
Asset write-off and impairments | (4) | (198) | 194 | (16) | (289) | 272 |
Decommissioning expense | (51) | (60) | 9 | (152) | (187) | 35 |
Taxes other than income taxes | (10) | (13) | 3 | (44) | (46) | 1 |
Depreciation/amortization exp. | (21) | (38) | 17 | (81) | (114) | 33 |
Other income (deductions)–other | 87 | 34 | 53 | 97 | 266 | (170) |
Interest exp. and other charges | (5) | (6) | 1 | (17) | (24) | 7 |
Income taxes | (12) | 31 | (43) | (6) | (26) | 20 |
Preferred dividend requirements | (1) | (1) | - | (2) | (2) | - |
Total EWC | 30 | (141) | 171 | 4 | (70) | 74 |
Total adjustments | 30 | (141) | 171 | 4 | (70) | 74 |
Calculations may differ due to rounding |
B: Earnings Variance Analysis
Appendix B-1 and Appendix B-2 provide details of current quarter and year-to-date 2020 versus 2019 as-reported and adjusted earnings variance analysis for Utility, Parent & Other, and EWC.
Appendix B-1: As-Reported and Adjusted Earnings Variance Analysis (c), (d) | ||||||||||
Third Quarter 2020 vs. 2019 | ||||||||||
(After-tax, per share in $) | ||||||||||
Utility | Parent & Other | EWC | Consolidated | |||||||
As-Reported | Adjusted | As-Reported | Adjusted | As- Reported | As- Reported | Adjusted | ||||
2019 earnings (loss) | 2.88 | 2.88 | (0.36) | (0.36) | (0.70) | 1.82 | 2.52 | |||
Operating revenue less: Fuel, fuel-related expenses and gas purchased for resale, Purchased power, and Regulatory charges (credits) | 0.12 | 0.12 | (e) | - | - | (0.34) | (f) | (0.22) | 0.12 | |
Nuclear refueling outage expense | 0.02 | 0.02 | - | - | 0.01 | 0.03 | 0.02 | |||
Other O&M | 0.09 | 0.09 | (g) | 0.02 | 0.02 | 0.09 | (h) | 0.20 | 0.11 | |
Asset write-offs and impairments | - | - | - | - | 0.76 | (i) | 0.76 | - | ||
Decommissioning expense | (0.01) | (0.01) | - | - | 0.04 | 0.03 | (0.01) | |||
Taxes other than income taxes | (0.03) | (0.03) | - | - | 0.01 | (0.02) | (0.03) | |||
Depreciation/amortization exp. | (0.15) | (0.15) | (j) | - | - | 0.07 | (k) | (0.08) | (0.15) | |
Other income (deductions)–other | (0.12) | (0.12) | (l) | 0.03 | 0.03 | 0.20 | (m) | 0.11 | (0.09) | |
Interest exp. and other charges | (0.05) | (0.05) | (n) | 0.02 | 0.02 | - | (0.03) | (0.03) | ||
Income taxes–other | - | - | (0.01) | (0.01) | 0.01 | - | (0.01) | |||
Preferred dividend requirements | - | - | - | - | - | - | - | |||
Share effect | (0.01) | (0.01) | - | - | - | (0.01) | (0.01) | |||
2020 earnings (loss) | 2.74 | 2.74 | (0.30) | (0.30) | 0.15 | 2.59 | 2.44 | |||
Appendix B-2: As-Reported and Adjusted Earnings Variance Analysis (c), (d) | |||||||||||
Year-to-Date 2020 vs. 2019 | |||||||||||
(After-tax, per share in $) | |||||||||||
Utility | Parent & Other | EWC | Consolidated | ||||||||
As-Reported | Adjusted | As-Reported | Adjusted | As- Reported | As- Reported | Adjusted | |||||
2019 earnings (loss) | 5.83 | 5.83 | (1.09) | (1.09) | (0.36) | 4.38 | 4.74 | ||||
Operating revenue less: Fuel, fuel-related expenses and gas purchased for resale, Purchased power, and Regulatory charges (credits) | 0.53 | 0.53 | (e) | - | - | (1.02) | (f) | (0.49) | 0.53 | ||
Nuclear refueling outage expense | 0.04 | 0.04 | - | - | 0.01 | 0.05 | 0.04 | ||||
Other O&M | 0.40 | 0.40 | (g) | 0.02 | 0.02 | 0.52 | (h) | 0.94 | 0.42 | ||
Asset write-offs and impairments | - | - | - | - | 1.10 | (i) | 1.10 | - | |||
Decommissioning expense | (0.04) | (0.04) | - | - | 0.14 | (o) | 0.10 | (0.04) | |||
Taxes other than income taxes | (0.06) | (0.06) | (p) | - | - | - | (0.06) | (0.06) | |||
Depreciation/amortization exp. | (0.52) | (0.52) | (j) | - | - | 0.13 | (k) | (0.39) | (0.52) | ||
Other income (deductions)–other | (0.16) | (0.16) | (l) | 0.06 | 0.06 | (q) | (0.69) | (m) | (0.79) | (0.10) | |
Interest exp. and other charges | (0.18) | (0.18) | (n) | 0.02 | 0.02 | 0.03 | (0.13) | (0.16) | |||
Income taxes–other | 0.38 | 0.38 | (r) | (0.13) | (0.13) | (s) | 0.16 | (t) | 0.41 | 0.25 | |
Preferred dividend requirements | (0.01) | (0.01) | - | - | - | (0.01) | (0.01) | ||||
Share effect | (0.16) | (0.16) | (u) | 0.03 | 0.03 | - | (0.13) | (0.13) | |||
2020 earnings (loss) | 6.05 | 6.05 | (1.09) | (1.09) | 0.02 | 4.98 | 4.96 | ||||
Calculations may differ due to rounding |
(c) | Utility operating revenue / regulatory charges, Utility other O&M, and Utility income taxes-other exclude $16 million, $- million, and $16 million respectively in third quarter 2020 and $93 million, $3 million, and $96 million respectively in third quarter 2019 for the return of unprotected excess ADIT to customers (net effect is neutral to earnings). On a year-to-date basis, Utility operating revenue / regulatory charges, Utility other O&M, and Utility income taxes-other exclude $61 million, $- million, and $61 million respectively in 2020 and $216 million, $3 million, and $219 million respectively in 2019 (net effect is neutral to earnings). |
(d) | EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply and dividing by diluted average number of common shares outstanding for the prior period; income taxes–other represents income tax differences other than the tax effect of individual line items. |
(e) | The third quarter and year-to-date earnings increases were primarily driven by E-AR's FRP; E-LA's FRP, including recovery of the LCPS; E-MS's FRP, vegetation rider, and recovery of Choctaw; and E-TX's TCRF. Partially offsetting was volume/weather, including the effects of COVID-19 and Hurricane Laura as well as E-NO's rate case. The year-to date variance also reflected recovery of the J. Wayne Leonard Power Station, a first quarter 2019 regulatory reserve at E-AR, and a regulatory liability for tax sharing with E-LA customers (this partially offsets the Hurricane Isaac Act 55 income tax item discussed in footnote r). |
(f) | The third quarter and year-to-date earnings decreases were due largely to lower revenues from the shutdown of Indian Point 2 in April 2020. The year-to-date variance also reflected lower revenues from the shutdown of Pilgrim in May 2019 and lower capacity and energy prices, partially offset by higher energy volume in the remaining EWC nuclear fleet. |
(g) | The third quarter and year-to-date earnings increases from lower Utility other O&M were due primarily to a decrease in loss provisions, lower contract costs related to new customer initiatives, and lower non-nuclear generation expenses related to long-term service agreements and the timing and scope of outages, including a delay in planned outages as a result of COVID-19. These were partially offset by higher compensation and benefits costs, primarily pension. The year-to-date variance also reflected lower nuclear generation expenses, higher nuclear insurance refunds, and higher E-MS storm damage provisions (offset in operating revenue). |
(h) | The third quarter and year-to-date earnings increases from lower EWC other O&M were due largely to the shutdown of Indian Point 2 in April 2020. The year-to-date variance also reflected the shutdown of Pilgrim in May 2019, as well as a decrease in severance and retention expense. |
(i) | The third quarter and year-to-date earnings increases from lower EWC asset write-offs and impairments were due primarily to a $191 million loss (pre-tax) on the sale of Pilgrim in third quarter 2019. The year-to-date variance also reflected higher impairment charges in first quarter 2019, largely refueling outage costs at Indian Point. |
(j) | The third quarter and year-to-date earnings decreases from higher Utility depreciation expense were due primarily to higher plant in service, including the LCPS and Choctaw. The year-to-date variance also reflected the J. Wayne Leonard Power Station being placed in service in second quarter 2019, as well as higher depreciation rates at E-MS. |
(k) | The third quarter and year-to-date earnings increases from lower EWC depreciation expense were due primarily to the shutdown of Indian Point 2 in April 2020. The year-to-date variance also reflected the shutdown of Pilgrim in May 2019. |
(l) | The third quarter and year-to-date earnings decreases from lower Utility other income (deductions)–other were due largely to changes in decommissioning trust fund activity (based on regulatory treatment, decommissioning-related variances are largely earnings neutral). Lower AFUDC as a result of higher construction work in progress in 2019 also contributed. |
(m) | The third quarter earnings increase from higher EWC other income (deductions)–other was due largely to higher gains on decommissioning trust fund investments in 2020 as compared to 2019, as well as a $16 million pension settlement charge in third quarter 2019 related to the exit of the EWC business. The year-to-date earnings decrease was due largely to performance of nuclear decommissioning trust fund investments in 2020 as compared to 2019. |
(n) | The third quarter and year-to-date earnings decreases from higher Utility interest expense were due primarily to higher debt balances at E-LA, E-TX, and E-MS. The year-to-date variance also reflected a higher debt balance at E-AR. |
(o) | The year-to-date earnings increase from lower EWC decommissioning expense was due to the sale of Pilgrim in 2019. |
(p) | The year-to-date earnings decrease from higher Utility taxes other than income taxes was due primarily to an increase in ad valorem taxes at E-LA. |
(q) | The year-to-date earnings increase from Parent & Other other income (deductions)–other was due primarily to intercompany interest. |
(r) | The year-to-date earnings increase from Utility effective income tax rate reflected two first quarter 2020 items. A $55 million tax benefit was recorded as a result of an IRS settlement related to Act 55 financing of Hurricane Isaac costs (partly offset by customer sharing, recorded as a regulatory charge discussed in footnote e). In addition, an annual tax deduction related to stock-based compensation resulted in an income tax benefit of $22 million, $20 million greater than first quarter 2019. |
(s) | The year-to-date earnings decrease from Parent & Other effective income tax rate was due to an increase in income tax expense of $23 million as a result of the IRS settlement related to the Hurricane Isaac Act 55 financing (discussed in footnote r). |
(t) | The year-to-date earnings increase from EWC effective income tax rate is primarily due to a first quarter 2019 accrual of $29 million of tax expense, which resulted from the sale of Vermont Yankee in January 2019. |
(u) | The earnings per share impacts from share effect were due to settlement of the equity forward (8.4 million shares settled in May 2019). |
Utility as-reported operating revenue less fuel, fuel-related | ||
3Q | YTD | |
Volume/weather | (0.30) | (0.55) |
Retail electric price | 0.42 | 1.12 |
Reg. provision for E-AR FRP | - | 0.05 |
Reg. liability for tax sharing | - | (0.10) |
Other | - | 0.01 |
Total | 0.12 | 0.53 |
C: Utility Financial and Operating Measures
Appendix C-1 and Appendix C-2 provide comparative summaries of Utility operating and financial measures.
Appendix C-1: Utility Operating and Financial Measures | |||||||||||||
Third Quarter and Year-to-Date 2020 vs. 2019 | |||||||||||||
Third Quarter | Year-to-Date | ||||||||||||
2020 | 2019 | % | % Weather Adjusted (v) | 2020 | 2019 | % | % Weather Adjusted (v) | ||||||
GWh billed | |||||||||||||
Residential | 11,634 | 11,627 | 0.1 | 1.6 | 27,519 | 27,749 | (0.8) | 2.5 | |||||
Commercial | 7,791 | 8,499 | (8.3) | (7.5) | 20,106 | 21,764 | (7.6) | (7.1) | |||||
Governmental | 660 | 705 | (6.4) | (6.2) | 1,826 | 1,932 | (5.5) | (5.8) | |||||
Industrial | 11,994 | 12,861 | (6.7) | (6.7) | 35,655 | 36,509 | (2.3) | (2.3) | |||||
Total retail sales | 32,079 | 33,692 | (4.8) | (4.1) | 85,106 | 87,954 | (3.2) | (2.1) | |||||
Wholesale | 4,881 | 3,025 | 61.4 | 11,109 | 10,009 | 11.0 | |||||||
Total sales | 36,960 | 36,717 | 0.7 | 96,215 | 97,963 | (1.8) | |||||||
Number of electric retail customers | |||||||||||||
Residential | 2,530,150 | 2,500,653 | 1.2 | ||||||||||
Commercial | 361,401 | 359,591 | 0.5 | ||||||||||
Governmental | 17,653 | 17,860 | (1.2) | ||||||||||
Industrial | 48,651 | 49,051 | (0.8) | ||||||||||
Total retail customers | 2,957,855 | 2,927,155 | 1.0 | ||||||||||
Other O&M and refueling outage expense per MWh | $18.02 | $19.02 | (5.3) | $19.66 | $20.53 | (4.2) | |||||||
Appendix C-2: Utility Operating Measures | ||||
Twelve Months Ended September 30, 2020 vs. 2019 | ||||
Twelve Months Ended September 30 | ||||
2020 | 2019 | % | % Weather Adjusted (v) | |
GWh billed | ||||
Residential | 35,863 | 35,999 | (0.4) | 1.7 |
Commercial | 27,098 | 28,789 | (5.9) | (5.9) |
Governmental | 2,472 | 2,579 | (4.1) | (4.4) |
Industrial | 47,629 | 48,390 | (1.6) | (1.6) |
Total retail sales | 113,062 | 115,757 | (2.3) | (1.7) |
Calculations may differ due to rounding | |
(v) | The effects of weather were estimated using heating degree days and cooling degree days for the billing cycles from certain locations within each jurisdiction and comparing to "normal" weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change. |
On a weather-adjusted basis for third quarter 2020, billed retail sales decreased (4.1) percent, including the impacts of Hurricane Laura and COVID-19. Residential billed sales increased 1.6 percent and commercial billed sales decreased (7.5) percent. Industrial billed sales volume decreased (6.7) reflecting lower sales to existing large and small customers, partially offset by continued growth from new/expansion customers.
D: EWC Financial and Operating Measures
Appendix D-1 provides a comparative summary of EWC adjusted EBITDA (non-GAAP).
Appendix D-1: EWC Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures | ||||||
Third Quarter and Year-to-Date 2020 vs. 2019 | ||||||
($ in millions) | Third Quarter | Year-to-Date | ||||
2020 | 2019 | Change | 2020 | 2019 | Change | |
Net income (loss) | 31 | (141) | 171 | 6 | (69) | 74 |
Add back: interest expense | 5 | 6 | (1) | 17 | 24 | (7) |
Add back: income taxes | 12 | (31) | 43 | 6 | 26 | (20) |
Add back: depreciation and amortization | 21 | 38 | (17) | 81 | 114 | (33) |
Subtract: interest and investment income | 95 | 59 | 37 | 130 | 316 | (185) |
Add back: decommissioning expense | 51 | 60 | (9) | 152 | 187 | (35) |
Adjusted EBITDA (non-GAAP) | 24 | (127) | 151 | 132 | (34) | 166 |
Calculations may differ due to rounding |
Appendix D-2 provides a comparative summary of EWC operating and financial measures.
Appendix D-2: EWC Operating and Financial Measures | ||||||
Third Quarter and Year-to-Date 2020 vs. 2019 | ||||||
Third Quarter | Year-to-Date | |||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | |
Owned capacity (MW) (w) | 2,246 | 3,274 | (31.4) | 2,246 | 3,274 | (31.4) |
GWh billed | 4,332 | 6,847 | (36.7) | 16,047 | 21,308 | (24.7) |
EWC Nuclear Fleet | ||||||
Capacity factor | 83% | 98% | (15.3) | 94% | 91% | (3.3) |
GWh billed | 3,943 | 6,210 | (36.5) | 14,782 | 19,602 | (24.6) |
Production cost per MWh | $21.85 | $16.27 | 34.3 | $18.24 | $18.48 | (1.3) |
Average energy/capacity revenue per MWh | $49.71 | $42.15 | 17.9 | $45.23 | $46.53 | (2.8) |
Refueling outage days | ||||||
Indian Point 3 | - | - | - | 29 | ||
Palisades | 32 | - | 32 | - | ||
Calculations may differ due to rounding | |
(w) | 2020 excludes IP2 (1,028MW), shut down April 30, 2020. |
See the appendix in the webcast slide presentation for EWC hedging and price disclosures.
E: Consolidated Financial Measures
Appendix E provides comparative financial measures. Financial measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP financial measures.
Appendix E: GAAP and Non-GAAP Financial Measures | |||
Third Quarter 2020 vs. 2019 (See Appendix G for reconciliation of GAAP to non-GAAP financial measures) | |||
For 12 months ending September 30 | 2020 | 2019 | Change |
GAAP Measures | |||
As-reported ROIC | 6.3% | 4.8% | 1.5% |
As-reported ROE | 13.3% | 8.6% | 4.8% |
Non-GAAP Financial Measures | |||
Adjusted ROIC | 5.4% | 5.6% | (0.1)% |
Adjusted ROE | 10.9% | 11.4% | (0.5)% |
As of September 30 ($ in millions, except where noted) | 2020 | 2019 | Change |
GAAP Measures | |||
Cash and cash equivalents | 1,240 | 956 | 284 |
Available revolver capacity | 4,125 | 4,115 | 10 |
Commercial paper | 1,398 | 1,918 | (520) |
Total debt | 22,127 | 19,441 | 2,686 |
Securitization debt | 209 | 338 | (129) |
Debt to capital | 66.7% | 65.4% | 1.4% |
Off-balance sheet liabilities: | |||
Debt of joint ventures – Entergy's share | 49 | 56 | (7) |
Total off-balance sheet liabilities | 49 | 56 | (7) |
Storm escrows | 373 | 410 | (37) |
Non-GAAP Financial Measures ($ in millions, except where noted) | |||
Debt to capital, excluding securitization debt | 66.5% | 65.0% | 1.5% |
Net debt to net capital, excluding securitization debt | 65.2% | 63.8% | 1.4% |
Gross liquidity | 5,364 | 5,071 | 293 |
Net liquidity | 3,966 | 3,153 | 813 |
Net liquidity, including storm escrows | 4,339 | 3,563 | 776 |
Parent debt to total debt, excluding securitization debt | 22.4% | 20.5% | 1.9% |
FFO to debt, excluding securitization debt | 11.8% | 14.2% | (2.3)% |
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC | 12.5% | 17.6% | (5.1)% |
Calculations may differ due to rounding |
F: Definitions and Abbreviations and Acronyms
Appendix F-1 provides definitions of certain operating measures, as well as GAAP and non-GAAP financial measures.
Appendix F-1: Definitions | |
Utility Financial and Operating Measures | |
GWh billed | Total number of GWh billed 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 billed sales |
EWC Financial and Operating Measures | |
Adjusted EBITDA (non-GAAP) | Earnings before interest, income taxes, and depreciation and amortization, and excluding decommissioning expense |
Average revenue per MWh on contracted volumes | Revenue on a per unit basis at which generation output reflected in contracts is expected to be sold to third parties (including offsetting positions) at the minimum contract prices and at forward market prices at a point in time, given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market PPA for Palisades. Revenue will fluctuate due to factors including positive or negative basis differentials and other risk management costs |
Average revenue under contract per kW-month (applies to capacity contracts only) | Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and/or auction awards |
Bundled capacity and energy contracts | A contract for the sale of installed capacity and related energy, priced per MWh sold |
Capacity contracts | A contract for the sale of the installed capacity product in regional markets managed by NYISO and MISO |
Capacity factor | Normalized percentage of the period that the nuclear plants generate power |
Expected sold and market total revenue per MWh | Total energy and capacity revenue on a per unit basis at which total planned generation output and capacity is expected to be sold given contract terms and market prices at a point in time, including positive or negative basis differentials and other risk management costs, divided by total planned MWh of generation, excluding the revenue associated with the amortization of the Palisades below-market PPA |
GWh billed | Total number of GWh billed to customers and financially-settled instruments |
Owned capacity (MW) | Installed capacity owned by EWC |
Percent of capacity sold forward | Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions |
Percent of planned generation under contract (unit contingent) | Percent of planned generation output sold under contracts |
Planned net MW in operation (average) | Average installed capacity to generate power and/or sell capacity, reflecting the shutdown of Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022) |
Planned TWh of generation | Amount of output expected to be generated by EWC resources considering plant operating characteristics and outage schedules, reflecting the shutdown of Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022) |
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) |
Refueling outage days | Number of days lost for a scheduled refueling and maintenance outage during the period |
Appendix F-1: Definitions (continued) | ||
EWC Financial and Operating Measures (continued) | ||
Unit contingent | Transaction under which power is supplied from a specific generation asset; if the asset is in operational outage, seller is generally not liable to buyer for any damages, unless the contract specifies certain conditions such as an availability guarantee | |
Financial Measures – GAAP | ||
As-reported ROE | 12-months rolling net income attributable to Entergy Corp. divided by avg. common equity | |
As-reported ROIC | 12-months rolling net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital | |
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 Corporation divided by average common equity | |
Adjusted ROIC | 12-months rolling adjusted net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital | |
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 excluding securitization debt | |
FFO to debt, excl. securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC | 12-months rolling FFO excluding return of unprotected excess ADIT and severance and retention payments associated with 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 AFUDC – ALJ AMI ANO APSC ARO bps CCGT CCN CCNO Choctaw COD CT CWIP DCRF DOE E-AR E-LA E-MS E-NO E-TX EBITDA ENP EPS ETR EWC FERC FFO FIN 48 FRP GAAP GCRR Grand Gulf or GGNS IIRR-G Indian Point 1 Indian Point 2 Indian Point 3 IPEC
| Accumulated deferred income taxes Allowance for borrowed funds used during Administrative law judge Advanced metering infrastructure Units 1 and 2 of Arkansas Nuclear One owned Arkansas Public Service Commission Asset retirement obligation Basis points Combined cycle gas turbine Certificate of convenience and necessity Council of the City of New Orleans Choctaw County Generating Station (CCGT) Commercial operation date Simple cycle combustion turbine Construction work in progress Distribution cost recovery factor U.S. Department of Energy Entergy Arkansas, LLC Entergy Louisiana, LLC Entergy Mississippi, LLC Entergy New Orleans, LLC Entergy Texas, Inc. Earnings before interest, income taxes, and depreciation and amortization Entergy Nuclear Palisades, LLC Earnings per share Entergy Corporation Entergy Wholesale Commodities Federal Energy Regulatory Commission Funds from operations FASB Interpretation No.48, "Accounting for Uncertainty in Income Taxes" Formula rate plan U.S. generally accepted accounting principles Generation Cost Recovery Rider Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by SERI Infrastructure investment recovery rider - gas Indian Point Energy Center Unit 1 (nuclear) Indian Point Energy Center Unit 2 (nuclear) Indian Point Energy Center Unit 3 (nuclear) Indian Point Energy Center (nuclear)
| ISES 2 IRS ISO LCPS LPSC LTM MCPS MISO Moody's MPSC MTEP Nelson 6 NDT NOPS NRC NY PSC NYISO NYSE OCF OpCo OPEB Other O&M P&O Palisades Pilgrim PMR PPA PSC PUCT RICE RFP ROE ROIC RS Cogen RSP S&P SEC SERI TCRF UPSA Vermont WACC WPEC | Unit 2 of Independence Steam Electric Station (coal) Internal Revenue Service Independent system operator Lake Charles Power Station (CCGT) Louisiana Public Service Commission Last twelve months Montgomery County Power Station (CCGT) Midcontinent Independent System Operator, Inc. Moody's Investor Service Mississippi Public Service Commission MISO Transmission Expansion Plan Unit 6 of Roy S. Nelson plant (coal) Nuclear decommissioning trust New Orleans Power Station U.S. Nuclear Regulatory Commission New York Public Service Commission New York Independent System Operator, Inc. New York Stock Exchange Net cash flow provided by operating activities Utility operating company Other post-employment benefits Other non-fuel operation and maintenance expense Parent & Other Palisades Power Plant (nuclear) Pilgrim Nuclear Power Station (nuclear, sold Performance Management Rider Power purchase agreement or purchased power Public service commission Public Utility Commission of Texas Reciprocating internal combustion engine Request for proposals Return on equity Return on invested capital RS Cogen facility (CCGT cogeneration) Rate Stabilization Plan (E-LA Gas) Standard & Poor's U.S. Securities and Exchange Commission System Energy Resources, Inc. Transmission cost recovery factor Unit Power Sales Agreement Vermont Yankee Nuclear Power Station (nuclear, sold January 11, 2019) Weighted-average cost of capital Washington Parish Energy Center |
G: Other GAAP to Non-GAAP Reconciliations
Appendix G-1, Appendix G-2, and Appendix G-3 provide reconciliations of various non-GAAP financial measures disclosed in this news release to their most comparable GAAP measure.
Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures - ROIC, ROE | |||
(LTM $ in millions except where noted) | Third Quarter | ||
2020 | 2019 | ||
As-reported net income (loss) attributable to Entergy Corporation | (A) | 1,385 | 790 |
Preferred dividends | 18 | 16 | |
Tax-effected interest expense | 582 | 548 | |
As-reported net income (loss) attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense | (B) | 1,985 | 1,354 |
Adjustments | (C) | 252 | (264) |
EWC preferred dividends and tax-effected interest expense included in adjustments | 20 | 27 | |
Total adjustments, excluding EWC preferred dividends and tax-effected interest expense (non-GAAP) | (D) | 272 | (237) |
Adjusted earnings (non-GAAP) | (A-C) | 1,134 | 1,054 |
Adjusted earnings, excluding preferred dividends and tax- effected interest expense (non-GAAP) | (B-D) | 1,713 | 1,591 |
Average invested capital (average of beginning and ending balances) | (E) | 31,442 | 28,413 |
Average common equity (average of beginning and ending balances) | (F) | 10,403 | 9,224 |
As-reported ROIC | (B/E) | 6.3% | 4.8% |
Adjusted ROIC (non-GAAP) | [(B-D)/E] | 5.4% | 5.6% |
As-reported ROE | (A/F) | 13.3% | 8.6% |
Adjusted ROE (non-GAAP) | [(A-C)/F] | 10.9% | 11.4% |
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 | ||
2020 | 2019 | ||
Total debt | (A) | 22,127 | 19,441 |
Less securitization debt | (B) | 209 | 338 |
Total debt, excluding securitization debt | (C) | 21,918 | 19,103 |
Less cash and cash equivalents | (D) | 1,240 | 956 |
Net debt, excluding securitization debt | (E) | 20,678 | 18,147 |
Commercial paper | (F) | 1,398 | 1,918 |
Total capitalization | (G) | 33,153 | 29,730 |
Less securitization debt | (B) | 209 | 338 |
Total capitalization, excluding securitization debt | (H) | 32,944 | 29,392 |
Less cash and cash equivalents | (D) | 1,240 | 956 |
Net capital, excluding securitization debt | (I) | 31,704 | 28,436 |
Debt to capital | (A/G) | 66.7% | 65.4% |
Debt to capital, excluding securitization debt (non-GAAP) | (C/H) | 66.5% | 65.0% |
Net debt to net capital, excluding securitization debt (non-GAAP) | (E/I) | 65.2% | 63.8% |
Available revolver capacity | (J) | 4,125 | 4,115 |
Storm escrows | (K) | 373 | 410 |
Gross liquidity (non-GAAP) | (D+J) | 5,364 | 5,071 |
Net liquidity (non-GAAP) | (D+J-F) | 3,966 | 3,153 |
Net liquidity, including storm escrows (non-GAAP) | (D+J-F+K) | 4,339 | 3,563 |
Entergy Corporation notes: | |||
Due September 2020 | - | 450 | |
Due July 2022 | 650 | 650 | |
Due September 2025 | 800 | - | |
Due September 2026 | 750 | 750 | |
Due June 2030 | 600 | - | |
Due June 2050 | 600 | - | |
Total Entergy Corporation notes | (L) | 3,400 | 1,850 |
Revolver draw | (M) | 150 | 155 |
Unamortized debt issuance costs and discounts | (N) | (40) | (9) |
Total parent debt | (F+L+M+N) | 4,909 | 3,914 |
Parent debt to total debt, excluding securitization debt (non-GAAP) | [(F+L+M+N)/C] | 22.4% | 20.5% |
Calculations may differ due to rounding |
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures – FFO to debt, excluding securitization debt; FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC | |||
($ in millions except where noted) | Third Quarter | ||
2020 | 2019 | ||
Total debt | (A) | 22,127 | 19,441 |
Less securitization debt | (B) | 209 | 338 |
Total debt, excluding securitization debt | (C) | 21,918 | 19,103 |
Net cash flow provided by operating activities, LTM |
(D) | 3,069 | 2,644 |
AFUDC – borrowed funds, LTM | (E) | (55) | (67) |
Working capital items in net cash flow provided by operating activities, LTM: | |||
Receivables | (71) | 21 | |
Fuel inventory | (14) | (18) | |
Accounts payable | 277 | (158) | |
Taxes accrued | 188 | (7) | |
Interest accrued | 14 | 12 | |
Other working capital accounts | (98) | (97) | |
Securitization regulatory charges, LTM | 125 | 120 | |
Total | (F) | 421 | (127) |
FFO, LTM (non-GAAP) | (G)=(D+E-F) | 2,594 | 2,704 |
FFO to debt, excluding securitization debt (non-GAAP) | (G/C) | 11.8% | 14.2% |
Estimated return of unprotected excess ADIT, LTM | (H) | 119 | 469 |
Severance and retention payments associated with exit of EWC, LTM pre-tax | (I) | 17 | 183 |
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC (non-GAAP) | [(G+H+I)/(C)] | 12.5% | 17.6% |
Calculations may differ due to rounding |
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SOURCE Entergy Corporation
Article Date
10/28/2020Entergy to Report Third Quarter 2020 Financial Results on October 28
Source: PR Newswire
NEW ORLEANS, Oct. 21, 2020 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) will report its third quarter 2020 financial results before the market opens Wednesday, October 28, 2020.
Company leaders will conduct a conference call to discuss financial results at 10 a.m. CT the same day. Listen to a live webcast of the call at entergy.com/investors or by dialing (844) 309-6569 and use conference ID 7684714.
From time to time, Entergy posts new and/or revised materials on its website and on social media and anticipates doing so in connection with this event. The presentation materials and an archived replay of the webcast will be available on Entergy's Investor Relations website at entergy.com/investors.
About Entergy Corporation
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 8,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,600 employees.
Additional investor information can be accessed at entergy.com/investors.
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SOURCE Entergy Corporation
Article Date
10/21/2020Entergy Crews Restore Power to More than 50% of Customers Following Hurricane Delta
Source: PR Newswire
NEW ORLEANS, Oct. 11, 2020 /PRNewswire/ -- Crews continue to assess damages and restore power where it is safe to do so after Hurricane Delta exited Entergy's service territory Saturday evening.
Within the first full day of restoration work, crews restored power to about 54% of customers who were impacted by Delta.
As of 9 a.m. Sunday, approximately 224,000 customers throughout Entergy's service territories were without power, down from a peak of approximately 495,000. Delta made landfall as a Category 2 storm Friday evening near Creole, Louisiana, with winds approaching 100 mph. As it moved inland, the storm weakened to a Category 1 and then to a tropical storm.
"Crews have made significant progress during the first full day of restoration work following Hurricane Delta. Our crews continue to restore power and assess damages in some of the hardest hit areas today," said Eli Viamontes, Entergy's vice president of utility distribution operations. "Damage assessments are an important step in Entergy's restoration process as it helps us determine the exact cause of outages and how long it will take to restore power. The company is using drones, helicopters and highwater vehicles to assess damage in hard to access areas."
Estimated restoration times will continue to be provided as damage assessments are completed. A storm team of nearly 13,600 workers are encountering a variety of obstacles during their restoration efforts including debris that remains following Hurricane Laura, uprooted trees that have taken down power lines, and flooding.
The company follows a methodical plan of power restoration that has proven effective during past storms. First, crews concentrate on restoring power to critical community infrastructure and essential services such as hospitals, water treatment plants, police and fire stations and communication systems. Then, resources are directed to work that safely restores the greatest number of customers as quickly as possible.
Crews continue to practice social distancing and Entergy asks that customers do the same. For the safety of crews and all those involved, please stay away from work zones.
Stay Informed
Entergy will keep customers informed throughout the company's response. Here is how customers can get information:
Follow us on Social Media
Social media plays an important role in keeping customers informed, and the companies place a high priority on updating their social media channels throughout an event. Customers can follow Entergy on Facebook and Twitter.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 8,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,600 employees.
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SOURCE Entergy Corporation
Article Date
10/11/202010/2/2020 - Entergy Texas, Inc. Announces Redemption of First Mortgage Bonds, 5.625% Series due June 1, 2064
Entergy Texas, Inc. Announces Redemption of First Mortgage Bonds, 5.625% Series due June 1, 2064
Source: PR Newswire
THE WOODLANDS, Texas, Oct. 2, 2020 /PRNewswire/ -- Entergy Texas, Inc., a subsidiary of Entergy Corporation (NYSE: ETR), announced today that on Nov. 2, 2020 (the "Redemption Date"), it will redeem all $135,000,000 principal amount of its outstanding First Mortgage Bonds, 5.625% Series due June 1, 2064 (the "Bonds"), at the redemption price of 100% of the principal amount of the Bonds (the "Redemption Price"), plus accrued interest thereon to but excluding the Redemption Date. The Bonds are listed on the New York Stock Exchange and trade under the symbol EZT.
On the Redemption Date, provided that the trustee has received sufficient funds to complete the redemption of the Bonds, the Redemption Price for the Bonds, together with accrued interest thereon to but excluding the Redemption Date, shall become due and payable, and on and after the Redemption Date, such Bonds shall cease to bear interest. Payment of the Redemption Price for, and accrued interest on, the Bonds will be made on or after the Redemption Date upon presentation and surrender of such Bonds to The Bank of New York Mellon, Bondmaster Ops – Syracuse – Vault, 111 Sanders Creek Parkway, East Syracuse, New York 13057.
About Entergy Texas
Entergy Texas, Inc. provides electricity to approximately 461,000 customers in 27 counties. Entergy Texas is a subsidiary of Entergy Corporation, an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 8,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,600 employees.
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SOURCE Entergy Corporation
Article Date
10/2/2020Entergy Commits to Achieving Net-Zero Carbon Emissions by 2050
Source: PR Newswire
NEW ORLEANS, Sept. 24, 2020 /PRNewswire/ -- Entergy Corporation (NYSE: ETR), a national leader in sustainability and environmental stewardship, announced today it is accelerating its climate action goals with a commitment to achieving net-zero carbon emissions by 2050. The company also reaffirmed its continued commitments to grid reliability and affordability for customers.
"Entergy remains focused on helping our stakeholders achieve their most ambitious aspirations in a reliable, affordable and sustainable way through new technologies and innovative solutions. In 2001, we were the first utility in the nation to voluntarily limit carbon emissions and today's 2050 climate commitment is another major step forward in enabling customers to achieve their desired outcomes while consuming the least amount of resources," said Leo Denault, Entergy's chairman of the board and CEO. "As we deliver on our promises to customers, regulators and all key stakeholders, it's critical that we do so in a manner that promotes a cleaner, more sustainable future."
Key actions by Entergy include:
Additionally, new agreements with Invenergy for renewable energy development and Mitsubishi Power for fuel supply emissions reduction solutions are advancing the company's sustainability objectives. Entergy and Invenergy have agreed to co-develop renewable energy facilities in the Gulf South region. Entergy's collaboration with Mitsubishi Power propels the technologies and expertise to co-fire hydrogen produced from renewable energy. Initial actions include demonstrating the technology, producing hydrogen from renewables or nuclear power and exploring hydrogen storage options. A longer-term strategy includes investing in the infrastructure necessary to create regional opportunities for hydrogen technologies.
The commitment to achieve net-zero emissions by 2050 builds on Entergy's 20-year history of climate action and positions the company for five decades of leadership toward advancing a cleaner and more sustainable future for all stakeholders. In 2001, Entergy became the first U.S. utility to limit its carbon dioxide emissions voluntarily. Since then, the company has renewed and strengthened its goals:
2020: The company is currently outperforming by 8% its commitment to maintain carbon emissions through 2020 to 20% below year 2000 levels.
2030: In 2019, Entergy announced in its 2019 Climate Report a goal to reduce by half the carbon emissions rate (pounds per megawatt hour) in 2030 compared to year 2000 levels.
2050: An overview of a potential path the company could take to net-zero emissions is available here. The company will publish additional information about the commitment later this fall.
Entergy already is one of the cleanest large-scale electric utilities in the country, as noted in the 2020 Benchmarking Air Emissions report conducted by energy and environmental advisory firm M. J. Bradley & Associates, an ERM Group company. MJB&A is an advisor to Entergy on its climate and net-zero strategy.
"Entergy's net-zero commitment breaks ground with important near-term investments in clean energy technologies that will be needed to transform the power generation fleet," said Robert LaCount, executive vice president at MJB&A. "Entergy's climate and energy analysis highlights the critical role for multiple technologies – including renewables and hydrogen – to achieve a carbon-free electric system."
While the company's new commitment looks far into the future, Entergy is leading today in innovative technology engagement and cross-sector collaboration to support the technology, innovation and policies needed to meet our 2050 commitment, including the Midcontinent Power Sector Collaborative Roadmap to Decarbonization, the Industrial Innovation Initiative, the Edison Electric Institute's Clean Energy Vision, EPRI, the Natural Gas Supply Collaborative, Gulf Coast Carbon Collaborative and the C2ES Getting to Zero climate agenda.
To learn more about Entergy's commitment to customers and environmental stewardship, visit entergy.com/environment.
About Entergy Corporation
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 8,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,600 employees.
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 environmental plans, goals, beliefs and expectations, including statements regarding its greenhouse gas reduction goals and strategies; and other statements of Entergy's plans, beliefs, or expectations included in this presentation. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this presentation. 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 presentation and in Entergy's most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q, and Entergy's other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans, and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) risks associated with operating nuclear facilities, including plant relicensing, operating, and regulatory costs and risks; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning Entergy's nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with execution on our business strategies, including strategic transactions that Entergy or its subsidiaries may undertake and the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state, or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental, or energy policies; (i) the effects of changes in commodity markets, capital markets, or economic conditions; (j) impacts from a terrorist attack, cybersecurity threats, data security breaches, or other attempts to disrupt Entergy's business or operations, and/or other catastrophic events; (k) the direct and indirect impacts of the COVID-19 pandemic on Entergy and its customers; and (l) the effects of technological change, including the costs, pace of development and commercialization of new and emerging technologies.
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SOURCE Entergy Corporation
Article Date
9/24/20209/22/2020 - Entergy Provides Update on Hurricane Laura
Entergy Provides Update on Hurricane Laura
Source: PR Newswire
NEW ORLEANS, Sept. 22, 2020 /PRNewswire/ -- Following Hurricane Laura making landfall near Cameron, Louisiana in the early morning of Aug. 27, Entergy Corporation (NYSE: ETR) announced today its utilities have restored power to approximately 910,000 customers who can accept power, or approximately 99% of customers affected by the storm. Crews have restored power to all customers in Texas and are making significant progress in the remaining hardest hit areas of Southwest Louisiana. Hurricane Laura was the strongest storm to make landfall in Louisiana in 164 years and is tied for the fifth strongest to make landfall in the continental United States.
In response to the widespread devastation caused by the storm, Entergy deployed the largest restoration effort ever mobilized in company history with more than 25,000 workers from 31 states. In addition to Entergy employees, the workers came from more than 230 companies, including 24 other electric utilities. These workers included scouts, field workers, vegetation workers and support staff.
"We are proud of the thousands of men and women who are working tirelessly to safely restore power for our customers," said Rod West, Entergy Utility Group President. "Hurricane Laura inflicted catastrophic damage on Entergy's transmission and distribution systems that resulted in approximately 600,000 outages at its peak and impacted more than 900,000 customers in total. Despite the extent of the damage, the teams have made significant progress and expect to restore power to all customers who can take power by Sept. 30."
With the company operating in a high state of readiness and a significant storm workforce in place ready to respond as soon as the storm passed, Entergy's swift restoration and rebuilding efforts have received strong and vocal support from federal, state and local public officials.
Damage Assessment
Hurricane Laura's historic intensity caused severe damage to the Entergy distribution and transmission systems across Louisiana and Texas. The storm's damage to Entergy's system included:
As a result of the storm's extensive damage to the grid infrastructure serving the impacted area, large portions of the underlying transmission system required nearly a complete rebuild. However, despite the damage, recent investments in modern transmission structures paid off as those assets withstood the storm's impact and remained intact. The transmission system is the backbone of the electric grid and helps Entergy move power from power plants to the lines serving customers. Given the extent of damage and rebuilding required, power restoration has been as difficult and challenging as Entergy has ever faced.
As previously noted, most of the damage has been repaired, and a clear design and engineering path exists for the remaining work. Restoration workers continue to repair and rebuild damaged high-voltage transmission lines that will bring power into Calcasieu and Cameron parishes, including the Lake Charles area. Completion of this work is expected to allow for power to be restored to the remaining customers who are able to take power by Sept. 30. Work will continue through most of November to complete the transmission system rebuild.
In response to the storm, Entergy's shareholders have provided financial support to the affected communities. With support from Entergy and other community partners, the American Red Cross deployed 1,800 employees and volunteers to provide shelter, meals, counseling and supplies to those in need. Entergy shareholders also match dollar-for-dollar employee contributions to the American Red Cross. In addition, Entergy's shareholders have committed $660,000 in charitable contributions to support communities impacted by Hurricane Laura. Company shareholders are also matching employee contributions to the Entergy Employee Assistance Fund, helping our own employees affected by the disaster.
For additional information on the company's restoration efforts following Hurricane Laura, visit entergy.com/HurricaneLaura.
Financial Implications
Total restoration costs for the repair and/or replacement of the electrical facilities damaged by Hurricane Laura are estimated to be in the range of $1.5 billion to $1.7 billion. The majority of the costs were incurred by Entergy Louisiana and Entergy Texas. The preliminary estimate for Entergy Louisiana is $1.25 billion to $1.4 billion and the preliminary estimate for Texas is $0.23 billion to $0.26 billion. Hurricane Laura restoration was the first large-scale disaster response that required Entergy to implement COVID-19 safety protocols. Increased costs associated with those safety measures, including lodging and personal protection equipment, are included in our preliminary estimate.
Entergy also expects utility revenues in 2020 to be adversely affected, primarily due to power outages resulting from the hurricane. The company's initial estimate of lost revenue is approximately $35 million to $40 million, with the majority of this impact occurring in Louisiana. The financial impact of the lost revenue will be partly offset by lower operation and maintenance expenses resulting from redeployment of resources to storm work.
Entergy affirms its 2020 adjusted earnings guidance range of $5.45 to $5.75 per share.
Entergy believes its liquidity is sufficient to meet its current obligations. As of Aug. 31, 2020, net liquidity was $4.0 billion including storm escrows of $0.4 billion.
Storms are an unfortunate but not unexpected part of living on the Gulf Coast, and Entergy has a long history of working collaboratively with its regulators to recover storm costs. Entergy Louisiana and Entergy Texas are considering all available avenues to recover storm-related costs from Hurricane Laura in a way that will minimize the effects on customers, including accessing funded storm escrows and securitization. There are well-established mechanisms and precedent for addressing these catastrophic events and providing for recovery of prudently incurred storm costs in accordance with applicable regulatory and legal principles. Due to the national importance of the refineries, petrochemical and other essential industries that the utility companies serve on the Gulf Coast, Entergy also is exploring opportunities for federal assistance in the restoration and potential hardening of the infrastructure in this area.
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 2020 earnings guidance; expectations around restoration timing, costs and recovery; and other statements of Entergy's plans, beliefs, or expectations included in this presentation. 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 presentation 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 rate proceedings, formula rate plans, and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (e) effects of changes in federal, state, or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental, or energy policies; and (f) the direct and indirect impacts of the COVID-19 pandemic on Entergy and its customers.
About Entergy Corporation
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 8,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,600 employees.
Twitter: @Entergy
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SOURCE Entergy Corporation
Article Date
9/22/2020Entergy Corporation to Host 2020 Virtual Analyst Day
Source: PR Newswire
NEW ORLEANS, Sept. 17, 2020 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) will host its 2020 Virtual Analyst Day on Thursday, Sept. 24, 2020. The event will feature presentations by Chairman and CEO Leo Denault and members of Entergy's executive management team.
The business session will take place from 1:00 p.m. to approximately 3:30 p.m. ET and will be followed by a discussion with a guest speaker. A webcast of the meeting can be accessed on the Investor Relations section of Entergy's website at entergy.com. Presentation slides will be made available on the Investor Relations section of Entergy's website after market close on Wednesday, Sept. 23, 2020. A replay of the webcast will also be available on the website.
About Entergy Corporation
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 8,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,600 employees.
Additional investor information can be accessed at entergy.com/investors.
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SOURCE Entergy Corporation
Article Date
9/17/2020Entergy Arkansas, LLC Announces Redemption of First Mortgage Bonds, 4.90% Series due December 1, 2052, and First Mortgage Bonds, 4.75% Series due June 1, 2063
Source: PR Newswire
NEW ORLEANS, Sept. 14, 2020 /PRNewswire/ -- Entergy Arkansas, LLC, a subsidiary of Entergy Corporation (NYSE: ETR), announced today that on Oct. 14, 2020 (the "Redemption Date"), it will redeem all (i) $200,000,000 principal amount of its outstanding First Mortgage Bonds, 4.90% Series due December 1, 2052 (the "2052 Bonds") and (ii) $125,000,000 principal amount of its outstanding First Mortgage Bonds, 4.75% Series due June 1, 2063 (the "2063 Bonds"), at the redemption price of 100% of the principal amount of the 2052 Bonds and 100% of the principal amount of the 2063 Bonds (each, a "Redemption Price"), plus accrued interest thereon to but excluding the Redemption Date. The 2052 Bonds and the 2063 Bonds are each listed on the New York Stock Exchange and trade under the symbols EAB and EAE, respectively.
On the Redemption Date, provided that the trustee has received sufficient funds to complete the redemption of the 2052 Bonds and the 2063 Bonds, the Redemption Price for the 2052 Bonds and the Redemption Price for the 2063 Bonds, in each case, together with accrued interest thereon to but excluding the Redemption Date, shall become due and payable, and on and after the Redemption Date, such 2052 Bonds and 2063 Bonds shall cease to bear interest. Payment of the Redemption Price for, and accrued interest on, the 2052 Bonds and 2063 Bonds will be made on or after the Redemption Date upon presentation and surrender of such bonds to DB Services Americas, Inc., MS JCK01-D218, 5022 Gate Parkway, Jacksonville, Florida 32256, Attn: Redemption Payment Unit.
About Entergy Arkansas
Entergy Arkansas, LLC provides electricity to approximately 715,000 customers in 63 counties. Entergy Arkansas is a subsidiary of Entergy Corporation (NYSE: ETR), an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 8,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and approximately 13,600 employees.
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Article Date
9/14/2020Entergy Crews Assessing Damages, Restoring Power as Hurricane Laura Travels North
Source: PR Newswire
NEW ORLEANS, Aug. 27, 2020 /PRNewswire/ -- Members of Entergy's storm team are assessing damages and restoring power where it is safe to do so after Hurricane Laura made landfall early Thursday morning near Cameron as a catastrophic Category 4 hurricane, causing widespread damage to Entergy's electrical system and knocking out power to customers across Louisiana and east Texas.
As of 11 a.m. Thursday, approximately 360,000 customers throughout Entergy's service territories were without power. While restoration efforts are beginning behind Laura in Texas and Louisiana, additional outages are occurring as the powerful storm travels north into Arkansas. Laura brought storm surge, heavy rain and sustained winds of up to 145 mph when it made landfall along the Gulf Coast.
"In addition to responding to additional outages as Laura moves through the Entergy service area, our storm team will now begin the process of assessing damage, restoring power where it is safe to do so and executing the plan that brings electric service back to critical infrastructure and the largest number of customers the fastest," said Eli Viamontes, Entergy's vice president of utility distribution operations. "This is going to be a marathon, not a sprint, so we are asking that our customers be patient with us and other first responders as we work to recover safely. Although this storm situation is unique in many ways, we have been through this before and, together, we will get through it again."
Entergy is continuing to add personnel to a restoration team of more than 13,000 that includes workers from 27 states either in our territory or on their way to the storm-ravaged areas. The company follows a methodical plan of power restoration that has proven effective during past storms. First, crews concentrate on restoring power to critical community infrastructure and essential services such as hospitals, water treatment plants, police and fire stations and communication systems. Then, resources are directed to work that safely restores the greatest number of customers as quickly as possible.
Entergy urges customers to keep streets open for local emergency vehicles and workers as they begin to repair and rebuild portions of the electrical system. Additionally, crews will continue to practice social distancing and Entergy asks that customers do the same. For the safety of crews and all those involved, please stay away from work zones.
Stay Informed
Entergy will keep customers informed throughout the company's response. Here is how customers can get information:
Follow us on Social Media
Social media plays an important role in keeping customers informed, and the company places a high priority on updating its social media channels throughout an event. Customers can follow Entergy on Facebook and Twitter.
About Entergy Corporation
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 8,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,600 employees.
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SOURCE Entergy Corporation
Article Date
8/27/2020Entergy Announces Quarterly Dividend Payment to Shareholders
Source: PR Newswire
NEW ORLEANS, July 31, 2020 /PRNewswire/ -- The board of directors of Entergy Corporation (NYSE: ETR) has approved a quarterly dividend payment of $0.93 per share on the company's common stock. The dividend is payable Sept. 1, 2020, to shareholders of record as of Aug. 13, 2020.
Entergy has paid a common stock dividend to shareholders continuously since 1988.
About Entergy Corporation
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 8,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,600 employees.
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SOURCE Entergy Corporation
Article Date
7/31/20207/29/2020 - Entergy Reports Second Quarter Earnings
Entergy Reports Second Quarter Earnings
Source: PR Newswire
NEW ORLEANS, July 29, 2020 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported second quarter 2020 earnings of $1.79 per share on an as-reported basis and $1.37 per share on an adjusted basis (non-GAAP).
"We delivered another strong quarter and remain on track to achieve our full-year objectives. Sales were better than expected, we're on pace to achieve our cost savings target for the year, and our capital plan is unchanged. With these results, we are affirming our full-year guidance, our longer-term outlooks, and our dividend growth aspirations," said Entergy Chairman and Chief Executive Officer Leo Denault. "The COVID-19 pandemic has placed a burden on our customers, employees, and communities, and we continue to support our stakeholders as we all work to recover from its effects. The foundation of our business remains strong and sustainable. We are committed to our strategic, operational, and financial objectives and our resolve to be the premier utility."
Business highlights included the following:
Consolidated Earnings (GAAP and Non-GAAP Measures) | ||||||
Second Quarter and Year-to-Date 2020 vs. 2019 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of adjustments) | ||||||
Second Quarter | Year-to-Date | |||||
2020 | 2019 | Change | 2020 | 2019 | Change | |
(After-tax, $ in millions) | ||||||
As-reported earnings | 361 | 236 | 124 | 479 | 491 | (12) |
Less adjustments | 85 | (26) | 111 | (26) | 71 | (97) |
Adjusted earnings (non-GAAP) | 276 | 262 | 14 | 506 | 420 | 85 |
Estimated weather in billed sales | (4) | 12 | (16) | (54) | (12) | (42) |
(After-tax, per share in $) | ||||||
As-reported earnings | 1.79 | 1.22 | 0.57 | 2.39 | 2.54 | (0.15) |
Less adjustments | 0.42 | (0.13) | 0.55 | (0.13) | 0.36 | (0.49) |
Adjusted earnings (non-GAAP) | 1.37 | 1.35 | 0.02 | 2.52 | 2.18 | 0.34 |
Estimated weather in billed sales | (0.02) | 0.06 | (0.08) | (0.27) | (0.06) | (0.21) |
Calculations may differ due to rounding |
Consolidated Results
For second quarter 2020, the company reported earnings of $361 million, or $1.79 per share, on an as-reported basis, and earnings of $276 million, or $1.37 per share, on an adjusted basis. This compared to second quarter 2019 earnings of $236 million, or $1.22 per share, on an as-reported basis, and earnings of $262 million, or $1.35 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.
Business Segment Results
Utility
For second quarter 2020, the Utility business reported earnings attributable to Entergy Corporation of $345 million, or $1.71 per share, on both an as-reported and an adjusted basis. This compared to second quarter 2019 earnings of $331 million, or $1.70 per share, on both an as-reported basis and an adjusted basis. Drivers for the quarter included:
These drivers were partially offset by:
On a per share basis, second quarter 2020 results reflected higher common shares outstanding.
Appendix C contains additional details on Utility financial and operating measures.
Parent & Other
For second quarter 2020, Parent & Other reported a loss attributable to Entergy Corporation of $(69 million), or (34) cents per share, on both an as-reported basis and an adjusted basis. This compared to a loss of $(69 million), or (35) cents per share, on both an as-reported and an adjusted basis in second quarter 2019.
On a per share basis, second quarter 2020 results reflected higher common shares outstanding.
Entergy Wholesale Commodities
For second quarter 2020, EWC reported earnings attributable to Entergy Corporation of
$85 million, or 42 cents per share, on an as-reported basis. This compared to a second quarter 2019 loss of $(26 million), or (13) cents per share, on an as-reported basis. Drivers for the quarter included:
These drivers were partially offset by lower revenue due to the shutdown of Pilgrim and Indian Point 2.
On a per share basis, second quarter 2020 results reflected higher common shares outstanding.
Appendix D contains additional details on EWC financial and operating measures, including a reconciliation for non-GAAP EWC adjusted EBITDA.
Earnings per Share Guidance
Entergy affirmed its 2020 adjusted EPS guidance range of $5.45 to $5.75. See webcast presentation slides for additional details.
The company has provided 2020 earnings guidance with regard to the non-GAAP measure of Entergy adjusted EPS. This measure excludes from the corresponding GAAP financial measure the effect of adjustments as described below under "Non-GAAP Financial Measures." The company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot predict and quantify with a reasonable degree of confidence all of the adjustments that may occur during the period. One such adjustment will be the exclusion of EWC earnings from Entergy adjusted EPS. We currently estimate that the contribution of EWC to Entergy's as-reported EPS will be approximately $(0.55) in 2020. These estimates are subject to substantial uncertainty due to, among other things, the potential effects of exiting the EWC business.
Earnings Teleconference
A teleconference will be held at 10:00 a.m. Central Time on Wednesday, July 29, 2020, to discuss Entergy's quarterly earnings announcement and the company's financial performance. The teleconference may be accessed by visiting Entergy's website at www.entergy.com or by dialing 844-309-6569, conference ID 5161259, no more than 15 minutes prior to the start of the call. The webcast slide presentation is also posted to Entergy's website concurrent with this news release, which was issued before market open on the day of the call. A replay of the teleconference will be available on Entergy's website at www.entergy.com and by telephone. The telephone replay will be available through August 5, 2020, by dialing 855-859-2056, conference ID 5161259.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 8,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy has annual revenues of $11 billion and approximately 13,600 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 slide presentation. Both documents are available on Entergy's Investor Relations website at www.entergy.com/investor_relations.
Entergy maintains a web page as part of its Investor Relations website, entitled Regulatory and Other Information, which provides investors with key updates of certain regulatory proceedings and important milestones on the execution of its strategy. While some of this information may be considered material information, investors should not rely exclusively on this page for all relevant company information.
For definitions of certain operating measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the earnings release materials, see Appendix F.
Non-GAAP Financial Measures
This news release contains non-GAAP financial measures, which are generally numerical measures of a company's performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Entergy has provided quantitative reconciliations within this news release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Entergy reports earnings using the non-GAAP measure of Entergy adjusted earnings, which excludes the effect of certain "adjustments," including the removal of the Entergy Wholesale Commodities segment in light of the company's decision to exit the merchant power business. Adjustments are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as the results of the EWC segment, significant tax items, and other items such as certain costs, expenses, or other specified items. In addition to reporting GAAP consolidated earnings on a per share basis, Entergy reports its adjusted earnings on a per share basis. These per share measures represent the applicable earnings amount divided by the diluted average number of common shares outstanding for the period.
Management uses the non-GAAP financial measures of adjusted earnings and adjusted earnings per share for, among other things, financial planning and analysis; reporting financial results to the board of directors, employees, stockholders, analysts, and investors; and internal evaluation of financial performance. Entergy believes that these non-GAAP financial measures provide useful information to investors in evaluating the ongoing results of Entergy's business, comparing period to period results, and comparing Entergy's financial performance to the financial performance of other companies in the utility sector.
Other non-GAAP measures, including adjusted EBITDA; adjusted ROE; adjusted ROIC; gross liquidity; net liquidity; net liquidity, including storm escrows; debt to capital, excluding securitization debt; net debt to net capital, excluding securitization debt; parent debt to total debt, excluding securitization debt; FFO; FFO to debt, excluding securitization debt; and FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC, are measures Entergy uses internally for management and board discussions and to gauge the overall strength of its business. Entergy believes the above data provides useful information to investors in evaluating Entergy's ongoing financial results and flexibility, and assists investors in comparing Entergy's credit and liquidity to the credit and liquidity of others in the Utility sector. In addition, other financial measures including net income (or earnings), adjusted for preferred dividends and tax-effected interest expense; ROIC; and ROE are included on both an adjusted and an as-reported basis. In each case, the metrics defined as "adjusted" (other than EWC's adjusted EBITDA) excludes the effect of adjustments as defined above. EWC's adjusted EBITDA represents EWC's earnings before interest, taxes, and depreciation and amortization, and also excludes decommissioning expense.
These non-GAAP financial measures reflect an additional way of viewing aspects of Entergy's operations that, when viewed with Entergy's GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting Entergy's business. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. Investors are strongly encouraged to review Entergy's consolidated financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Although certain of these measures are intended to assist investors in comparing Entergy's performance to other companies in the utility sector, non-GAAP financial measures are not standardized; therefore, it might not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
Cautionary Note Regarding Forward-Looking Statements
In this news release, and from time to time, Entergy Corporation makes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, among other things, Entergy's 2020 earnings guidance; its current financial and operational outlooks; and other statements of Entergy's plans, beliefs, or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy's most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q, and Entergy's other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans, and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) risks associated with operating nuclear facilities, including plant relicensing, operating, and regulatory costs and risks; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning Entergy's nuclear plant sites;
(f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with strategic transactions that Entergy or its subsidiaries may undertake, including the risk that any such transaction may not be completed as and when expected, and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state, or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental, or energy policies; (i) the effects of technological changes and changes in commodity markets, capital markets, or economic conditions; (j) impacts from a terrorist attack, cybersecurity threats, data security breaches, or other attempts to disrupt Entergy's business or operations, and/or other catastrophic events; and (k) the direct and indirect impacts of the COVID-19 pandemic on Entergy and its customers.
Second Quarter 2020 Earnings Release Appendices and Financial Statements
Appendices
A: Consolidated Results and Adjustments
B: Earnings Variance Analysis
C: Utility Financial and Operating Measures
D: EWC Financial and Operating Measures
E: Consolidated Financial Measures
F: Definitions and Abbreviations and Acronyms
G: Other GAAP to Non-GAAP Reconciliations
Financial Statements
Consolidating Balance Sheets
Consolidating Income Statements
Consolidated Cash Flow Statements
A: Consolidated Results and Adjustments
Appendix A-1 provides a comparative summary of consolidated earnings, including a reconciliation of as-reported earnings (GAAP) to adjusted earnings (non-GAAP).
Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures Second Quarter and Year-to-Date 2020 vs. 2019 (See Appendix A-3 and Appendix A-4 for details on adjustments) | ||||||
Second Quarter | Year-to-Date | |||||
2020 | 2019 | Change | 2020 | 2019 | Change | |
(After-tax, $ in millions) | ||||||
As-reported earnings (loss) | ||||||
Utility | 345 | 331 | 14 | 665 | 562 | 103 |
Parent & Other | (69) | (69) | - | (159) | (141) | (18) |
EWC | 85 | (26) | 111 | (26) | 71 | (97) |
Consolidated | 361 | 236 | 124 | 479 | 491 | (12) |
Less adjustments | ||||||
Utility | - | - | - | - | - | - |
Parent & Other | - | - | - | - | - | - |
EWC | 85 | (26) | 111 | (26) | 71 | (97) |
Consolidated | 85 | (26) | 111 | (26) | 71 | (97) |
Adjusted earnings (loss) (non-GAAP) | ||||||
Utility | 345 | 331 | 14 | 665 | 562 | 103 |
Parent & Other | (69) | (69) | - | (159) | (141) | (18) |
EWC | - | - | - | - | - | - |
Consolidated | 276 | 262 | 14 | 506 | 420 | 85 |
Estimated weather in billed sales | (4) | 12 | (16) | (54) | (12) | (42) |
Diluted average number of common shares outstanding (in millions) | 201 | 194 | 201 | 193 | ||
(After-tax, per share in $) (a) | ||||||
As-reported earnings (loss) | ||||||
Utility | 1.71 | 1.70 | 0.01 | 3.31 | 2.91 | 0.40 |
Parent & Other | (0.34) | (0.35) | 0.01 | (0.79) | (0.73) | (0.06) |
EWC | 0.42 | (0.13) | 0.55 | (0.13) | 0.36 | (0.49) |
Consolidated | 1.79 | 1.22 | 0.57 | 2.39 | 2.54 | (0.15) |
Less adjustments | ||||||
Utility | - | - | - | - | - | - |
Parent & Other | - | - | - | - | - | - |
EWC | 0.42 | (0.13) | 0.55 | (0.13) | 0.36 | (0.49) |
Consolidated | 0.42 | (0.13) | 0.55 | (0.13) | 0.36 | (0.49) |
Adjusted earnings (loss) (non-GAAP) | ||||||
Utility | 1.71 | 1.70 | 0.01 | 3.31 | 2.91 | 0.40 |
Parent & Other | (0.34) | (0.35) | 0.01 | (0.79) | (0.73) | (0.06) |
EWC | - | - | - | - | - | - |
Consolidated | 1.37 | 1.35 | 0.02 | 2.52 | 2.18 | 0.34 |
Estimated weather in billed sales | (0.02) | 0.06 | (0.08) | (0.27) | (0.06) | (0.21) |
Calculations may differ due to rounding |
(a) | Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period. |
See Appendix B for detailed earnings variance analysis.
Appendix A-2 provides a comparative summary of OCF, by business.
Appendix A-2: Consolidated Operating Cash Flow | ||||||
Second Quarter and Year-to-Date 2020 vs. 2019 | ||||||
($ in millions) | ||||||
Second Quarter | Year-to-Date | |||||
2020 | 2019 | Change | 2020 | 2019 | Change | |
Utility | 792 | 699 | 94 | 1,395 | 1,154 | 241 |
Parent & Other | (64) | (45) | (19) | (144) | (123) | (22) |
EWC | 60 | (102) | 163 | 198 | 22 | 176 |
Consolidated | 789 | 552 | 237 | 1,448 | 1,053 | 395 |
Calculations may differ due to rounding |
OCF increased quarter-over-quarter due primarily to higher collections for fuel and purchased power cost recovery and a lower amount of unprotected excess ADIT returned to customers. Lower nuclear refueling outage spending and lower severance and retention payments at EWC also contributed. Lower collections from customers partially offset the increase. Intercompany income tax payments contributed to the line of business variances.
Appendix A-3 and Appendix A-4 list adjustments by business. Adjustments are included in as-reported earnings consistent with GAAP but are excluded from adjusted earnings. As a result, adjusted earnings is considered a non-GAAP measure.
Appendix A-3: Adjustments by Driver (shown as positive/(negative) impact on earnings or EPS) | ||||||
Second Quarter and Year-to-Date 2020 vs. 2019 | ||||||
Second Quarter | Year-to-Date | |||||
2020 | 2019 | Change | 2020 | 2019 | Change | |
(Pre-tax except for income taxes, preferred dividend requirements, and totals; $ in millions) | ||||||
EWC | ||||||
Income before income taxes | 110 | (35) | 144 | (31) | 128 | (160) |
Income taxes | (24) | 9 | (34) | 6 | (57) | 63 |
Preferred dividend requirements | (1) | (1) | - | (1) | (1) | - |
Total EWC | 85 | (26) | 111 | (26) | 71 | (97) |
Total adjustments | 85 | (26) | 111 | (26) | 71 | (97) |
(After-tax, per share in $) (b) | ||||||
EWC | ||||||
Total EWC | 0.42 | (0.13) | 0.55 | (0.13) | 0.36 | (0.49) |
Total adjustments | 0.42 | (0.13) | 0.55 | (0.13) | 0.36 | (0.49) |
Calculations may differ due to rounding | |
(b) | Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period. |
Appendix A-4: Adjustments by Income Statement Line Item (shown as positive/(negative) impact on earnings) | ||||||
Second Quarter and Year-to-Date 2020 vs. 2019 | ||||||
(Pre-tax except for income taxes, preferred dividend requirements, and totals; $ in millions) | ||||||
Second Quarter | Year-to-Date | |||||
2020 | 2019 | Change | 2020 | 2019 | Change | |
EWC | ||||||
Operating revenues | 200 | 290 | (90) | 532 | 723 | (191) |
Fuel and fuel-related expenses | (17) | (26) | 9 | (37) | (51) | 14 |
Purchased power | (10) | (15) | 5 | (21) | (31) | 10 |
Nuclear refueling outage expense | (12) | (12) | - | (24) | (24) | - |
Other O&M | (140) | (188) | 47 | (271) | (376) | 105 |
Asset write-off and impairments | (7) | (16) | 10 | (12) | (90) | 79 |
Decommissioning expense | (51) | (64) | 13 | (102) | (128) | 26 |
Taxes other than income taxes | (14) | (20) | 6 | (34) | (33) | (1) |
Depreciation/amortization exp. | (25) | (38) | 13 | (60) | (76) | 16 |
Other income (deductions)–other | 194 | 64 | 130 | 10 | 232 | (222) |
Interest exp. and other charges | (7) | (9) | 2 | (12) | (18) | 6 |
Income taxes | (24) | 9 | (34) | 6 | (57) | 63 |
Preferred dividend requirements | (1) | (1) | - | (1) | (1) | - |
Total EWC | 85 | (26) | 111 | (26) | 71 | (97) |
Total adjustments | 85 | (26) | 111 | (26) | 71 | (97) |
Calculations may differ due to rounding |
B: Earnings Variance Analysis
Appendix B-1 and Appendix B-2 provide details of current quarter and year-to-date 2020 versus 2019 as-reported and adjusted earnings variance analysis for Utility, Parent & Other, and EWC.
Appendix B-1: As-Reported and Adjusted Earnings Variance Analysis (c), (d) | ||||||||||
Second Quarter 2020 vs. 2019 | ||||||||||
(After-tax, per share in $) | ||||||||||
Utility | Parent & Other | EWC | Consolidated | |||||||
As-Reported | Adjusted | As-Reported | Adjusted | As- Reported | As- Reported | Adjusted | ||||
2019 earnings | 1.70 | 1.70 | (0.35) | (0.35) | (0.13) | 1.22 | 1.35 | |||
Operating revenue less: Fuel, fuel-related expenses and gas purchased for resale, Purchased power, and Regulatory charges (credits) | 0.14 | 0.14 | (e) | - | - | (0.31) | (f) | (0.17) | 0.14 | |
Nuclear refueling outage expense | 0.02 | 0.02 | - | - | - | 0.02 | 0.02 | |||
Other O&M | 0.23 | 0.23 | (g) | (0.01) | (0.01) | 0.19 | (h) | 0.41 | 0.22 | |
Asset write-offs and impairments | - | - | - | - | 0.04 | 0.04 | - | |||
Decommissioning expense | (0.01) | (0.01) | - | - | 0.05 | (i) | 0.04 | (0.01) | ||
Taxes other than income taxes | (0.01) | (0.01) | - | - | 0.02 | 0.01 | (0.01) | |||
Depreciation/amortization exp. | (0.20) | (0.20) | (j) | - | - | 0.05 | (k) | (0.15) | (0.20) | |
Other income (deductions)–other | (0.02) | (0.02) | 0.03 | 0.03 | 0.53 | (l) | 0.54 | 0.01 | ||
Interest exp. and other charges | (0.08) | (0.08) | (m) | (0.01) | (0.01) | 0.01 | (0.08) | (0.09) | ||
Income taxes–other | - | - | (0.01) | (0.01) | (0.02) | (0.03) | (0.01) | |||
Preferred dividend requirements | - | - | - | - | - | - | - | |||
Share effect | (0.06) | (0.06) | (n) | 0.01 | 0.01 | (0.01) | (0.06) | (0.05) | ||
2020 earnings | 1.71 | 1.71 | (0.34) | (0.34) | 0.42 | 1.79 | 1.37 | |||
Appendix B-2: As-Reported and Adjusted Earnings Variance Analysis (c), (d) | ||||||||||
Year-to-date 2020 vs. 2019 | ||||||||||
(After-tax, per share in $) | ||||||||||
Utility | Parent & Other | EWC | Consolidated | |||||||
As-Reported | Adjusted | As-Reported | Adjusted | As- Reported | As- Reported | Adjusted | ||||
2019 earnings | 2.91 | 2.91 | (0.73) | (0.73) | 0.36 | 2.54 | 2.18 | |||
Operating revenue less: Fuel, fuel-related expenses and gas purchased for resale, Purchased power, and Regulatory charges (credits) | 0.41 | 0.41 | (e) | - | - | (0.68) | (f) | (0.27) | 0.41 | |
Nuclear refueling outage expense | 0.02 | 0.02 | - | - | - | 0.02 | 0.02 | |||
Other O&M | 0.31 | 0.31 | (g) | - | - | 0.43 | (h) | 0.74 | 0.31 | |
Asset write-offs and impairments | - | - | - | - | 0.32 | (o) | 0.32 | - | ||
Decommissioning expense | (0.03) | (0.03) | - | - | 0.11 | (i) | 0.08 | (0.03) | ||
Taxes other than income taxes | (0.02) | (0.02) | - | - | (0.01) | (0.03) | (0.02) | |||
Depreciation/amortization exp. | (0.38) | (0.38) | (j) | - | - | 0.06 | (k) | (0.32) | (0.38) | |
Other income (deductions)–other | (0.04) | (0.04) | 0.03 | 0.03 | (0.91) | (l) | (0.92) | (0.01) | ||
Interest exp. and other charges | (0.13) | (0.13) | (m) | - | - | 0.03 | (0.10) | (0.13) | ||
Income taxes–other | 0.39 | 0.39 | (p) | (0.12) | (0.12) | (q) | 0.15 | (r) | 0.42 | 0.27 |
Preferred dividend requirements | - | - | - | - | - | - | - | |||
Share effect | (0.13) | (0.13) | (n) | 0.03 | 0.03 | 0.01 | (0.09) | (0.10) | ||
2020 earnings | 3.31 | 3.31 | (0.79) | (0.79) | (0.13) | 2.39 | 2.52 | |||
Calculations may differ due to rounding | |
(c) | Utility operating revenue / regulatory charges and Utility income taxes-other exclude $15 million in second quarter 2020 and $61 million in second quarter 2019 for the return of unprotected excess ADIT to customers (net effect is neutral to earnings). On a year-to-date basis, Utility operating revenue / regulatory charges and Utility income taxes-other exclude $45 million in 2020 and $122 million in 2019 (net effect is neutral to earnings). |
(d) | EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply and dividing by diluted average number of common shares outstanding for the prior period; income taxes–other represents income tax differences other than the tax effect of individual line items. |
(e) | The second quarter and year-to-date earnings increases were primarily driven by E-AR's FRP; E-LA's FRP, including recovery of the J. Wayne Leonard Power Station and the Lake Charles Power Station; E-MS's FRP; E-MS's vegetation rider; recovery of E-MS's Choctaw County Generating Station; and E-TX's TCRF. Partially offsetting was volume/weather and E-NO's rate case. The year-to date variance also reflected a first quarter 2019 regulatory reserve at E-AR and a regulatory liability for tax sharing with E-LA customers (this partially offsets the Hurricane Isaac Act 55 income tax item discussed in footnote p). |
(f) | The second quarter and year-to-date earnings decreases were due largely to lower revenues from the shutdown of Pilgrim (May 2019) and Indian Point 2 (April 2020). The year-to-date variance also reflected lower capacity and energy prices, partially offset by higher energy volume at Indian Point 3. |
(g) | The second quarter and year-to-date earnings increases from lower Utility other O&M were due largely to lower non-nuclear generation expenses due to the timing and scope of outages including a delay in planned outages in 2020 as a result of the COVID-19 pandemic, lower nuclear generation expenses, and lower spending on initiatives to explore new customer products. The year-to-date variance also reflected higher nuclear insurance refunds, partially offset by higher pension and benefits expenses and higher E-MS storm damage provisions (offset in operating revenue). |
(h) | The second quarter and year-to-date earnings increases from lower EWC other O&M were due largely to the shutdown of Pilgrim in May 2019 and Indian Point 2 in April 2020, as well as a decrease in severance and retention expense. |
(i) | The second quarter and year-to-date earnings increases from lower EWC decommissioning expense were due to the sale of Pilgrim in 2019. |
(j) | The second quarter and year-to-date earnings decreases from higher Utility depreciation expense were due primarily to higher plant in service, including the J. Wayne Leonard Power Station, the Lake Charles Power Station, and the Choctaw County Generating Station, as well as higher depreciation rates at E-MS. |
(k) | The second quarter and year-to-date earnings increases from lower EWC depreciation expense were due primarily to the shutdown of Pilgrim in May 2019 and Indian Point 2 in April 2020. |
(l) | The second quarter earnings increase from higher EWC other income (deductions)–other was due largely to higher gains on decommissioning trust fund investments in 2020 as compared to 2019. The year-to-date earnings decrease was due largely to performance of nuclear decommissioning trust fund investments in 2020 as compared to 2019. |
(m) | The second quarter and year-to-date earnings decreases from higher Utility interest expense were due primarily to higher debt balances at E-LA and E-TX. The year-to-date variance also reflected higher debt balances at E-AR. |
(n) | The earnings per share impacts from share effect were due to settlement of the equity forward (8.4 million shares settled in May 2019). |
(o) | The year-to-date earnings increase from lower EWC asset write-offs and impairments was due primarily to higher impairment charges in first quarter 2019, largely refueling outage costs at Indian Point. This was partially offset by a gain on the sale of a switchyard at Pilgrim in second quarter 2019. |
(p) | The year-to-date earnings increase from Utility effective income tax rate reflected two first quarter 2020 items. A $55 million tax benefit was recorded as a result of an IRS settlement related to Act 55 financing of Hurricane Isaac costs (partly offset by customer sharing, recorded as a regulatory charge discussed in footnote e). In addition, an annual tax deduction related to stock-based compensation resulted in an income tax benefit of $22 million, $20 million greater than first quarter 2019. |
(q) | The year-to-date earnings decrease from Parent & Other effective income tax rate was due to an increase in income tax expense of $23 million as a result of the IRS settlement related to the Hurricane Isaac Act 55 financing (discussed in footnote p). |
(r) | The year-to-date earnings increase from EWC effective income tax rate is primarily due to a first quarter 2019 accrual of $29 million of tax expense, which resulted from the sale of Vermont Yankee in January 2019. |
Utility as-reported operating revenue less fuel, fuel-related expenses and gas purchased for resale; purchased power; and regulatory charges (credits) variance analysis 2020 vs. 2019 ($ EPS) | ||
2Q | YTD | |
Volume/weather | (0.21) | (0.24) |
Retail electric price | 0.36 | 0.70 |
Reg. provision for E-AR FRP | - | 0.05 |
Reg. liability for tax sharing | - | (0.10) |
Other | (0.01) | - |
Total | 0.14 | 0.41 |
C: Utility Financial and Operating Measures
Appendix C-1 and Appendix C-2 provide comparative summaries of Utility operating and financial measures.
Appendix C-1: Utility Operating and Financial Measures | ||||||||
Second Quarter and Year-to-Date 2020 vs. 2019 | ||||||||
Second Quarter | Year-to-Date | |||||||
2020 | 2019 | % | % Weather Adjusted (s) | 2020 | 2019 | % | % Weather Adjusted (s) | |
GWh billed | ||||||||
Residential | 7,759 | 7,652 | 1.4 | 5.1 | 15,885 | 16,123 | (1.5) | 3.1 |
Commercial | 6,070 | 6,841 | (11.3) | (10.8) | 12,315 | 13,264 | (7.2) | (6.8) |
Governmental | 570 | 626 | (8.9) | (9.5) | 1,165 | 1,227 | (5.1) | (5.6) |
Industrial | 11,847 | 11,965 | (1.0) | (1.0) | 23,662 | 23,648 | 0.1 | 0.1 |
Total retail sales | 26,246 | 27,084 | (3.1) | (2.0) | 53,027 | 54,262 | (2.3) | (0.8) |
Wholesale | 3,111 | 3,170 | (1.9) | 6,228 | 6,984 | (10.8) | ||
Total sales | 29,357 | 30,254 | (3.0) | 59,255 | 61,246 | (3.3) | ||
Number of electric retail customers | ||||||||
Residential | 2,517,718 | 2,489,842 | 1.1 | |||||
Commercial | 362,812 | 358,545 | 1.2 | |||||
Governmental | 17,940 | 17,906 | 0.2 | |||||
Industrial | 42,033 | 41,416 | 1.5 | |||||
Total retail customers | 2,940,503 | 2,907,709 | 1.1 | |||||
Other O&M and refueling outage expense per MWh | $21.19 | $22.79 | (7.0) | $20.69 | $21.44 | (3.5) | ||
Appendix C-2: Utility Operating Measures | ||||
Twelve Months Ended June 30, 2020 vs. 2019 | ||||
Twelve Months Ended June 30 | ||||
2020 | 2019 | % | % Weather | |
GWh billed | ||||
Residential | 35,856 | 36,194 | (0.9) | 0.2 |
Commercial | 27,806 | 29,015 | (4.2) | (4.7) |
Governmental | 2,517 | 2,588 | (2.7) | (3.2) |
Industrial | 48,497 | 48,408 | 0.2 | 0.2 |
Total retail sales | 114,676 | 116,205 | (1.3) | (1.1) |
Calculations may differ due to rounding | |
(s) | The effects of weather were estimated using heating degree days and cooling degree days for the billing cycles from certain locations within each jurisdiction and comparing to "normal" weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change. |
On a weather-adjusted basis for second quarter 2020, billed retail sales decreased (2.0) percent. Residential billed sales increased 5.1 percent and commercial billed sales decreased (10.8) percent driven by impacts from the COVID-19 pandemic. Industrial billed sales volume decreased (1.0) percent primarily driven by lower sales to existing large and small customers, partially offset by continued growth from new/expansion customers.
D: EWC Financial and Operating Measures
Appendix D-1 provides a comparative summary of EWC adjusted EBITDA (non-GAAP).
Appendix D-1: EWC Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures | ||||||
Second Quarter and Year-to-Date 2020 vs. 2019 | ||||||
($ in millions) | Second Quarter | Year-to-Date | ||||
2020 | 2019 | Change | 2020 | 2019 | Change | |
Net income (loss) | 85 | (25) | 110 | (25) | 72 | (97) |
Add back: interest expense | 7 | 9 | (2) | 12 | 18 | (6) |
Add back: income taxes | 24 | (9) | 34 | (6) | 57 | (63) |
Add back: depreciation and amortization | 25 | 38 | (13) | 60 | 76 | (16) |
Subtract: interest and investment income | 207 | 75 | 132 | 35 | 257 | (222) |
Add back: decommissioning expense | 51 | 64 | (13) | 102 | 128 | (26) |
Adjusted EBITDA (non-GAAP) | (15) | 2 | (17) | 108 | 94 | 14 |
Calculations may differ due to rounding |
Appendix D-2 provides a comparative summary of EWC operating and financial measures.
Appendix D-2: EWC Operating and Financial Measures | ||||||
Second Quarter and Year-to-Date 2020 vs. 2019 | ||||||
Second Quarter | Year-to-Date | |||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | |
Owned capacity (MW) (t) | 2,246 | 3,274 | (31.4) | 2,246 | 3,274 | (31.4) |
GWh billed | 4,958 | 7,258 | (31.7) | 11,714 | 14,461 | (19.0) |
EWC Nuclear Fleet | ||||||
Capacity factor | 96% | 92% | 4.3 | 98% | 89% | 10.1 |
GWh billed | 4,580 | 6,703 | (31.7) | 10,839 | 13,392 | (19.1) |
Production cost per MWh | $19.45 | $19.93 | (2.4) | $17.13 | $19.49 | (12.1) |
Average energy/capacity revenue per MWh | $37.55 | $37.85 | (0.8) | $43.84 | $48.55 | (9.7) |
Refueling outage days | ||||||
Indian Point 3 | - | 8 | - | 29 | ||
Calculations may differ due to rounding | |
(t) | 2020 excludes IP2 (1,028MW) that was shut down April 30, 2020. |
See the appendix in the webcast slide presentation for EWC hedging and price disclosures.
E: Consolidated Financial Measures
Appendix E provides comparative financial measures. Financial measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP financial measures.
Appendix E: GAAP and Non-GAAP Financial Measures | |||
Second Quarter 2020 vs. 2019 (See Appendix G for reconciliation of GAAP to non-GAAP financial measures) | |||
For 12 months ending June 30 | 2020 | 2019 | Change |
GAAP Measures | |||
As-reported ROIC | 5.9% | 5.5% | 0.4% |
As-reported ROE | 12.2% | 10.8% | 1.4% |
Non-GAAP Financial Measures | |||
Adjusted ROIC | 5.6% | 5.5% | 0.2% |
Adjusted ROE | 11.4% | 11.0% | 0.4% |
As of June 30 ($ in millions, except where noted) | 2020 | 2019 | Change |
GAAP Measures | |||
Cash and cash equivalents | 935 | 636 | 300 |
Available revolver capacity | 4,110 | 4,120 | (10) |
Commercial paper | 1,946 | 1,635 | 311 |
Total debt | 21,493 | 19,054 | 2439 |
Securitization debt | 232 | 360 | (128) |
Debt to capital | 66.8% | 65.5% | 1.3% |
Off-balance sheet liabilities: | |||
Debt of joint ventures – Entergy's share | 51 | 58 | (7) |
Total off-balance sheet liabilities | 51 | 58 | (7) |
Storm escrow balances | 373 | 407 | (34) |
Non-GAAP Financial Measures ($ in millions, except where noted) | |||
Debt to capital, excluding securitization debt | 66.6% | 65.1% | 1.5% |
Net debt to net capital, excluding securitization debt | 65.6% | 64.3% | 1.2% |
Gross liquidity | 5,045 | 4,756 | 289 |
Net liquidity | 3,099 | 3,121 | (22) |
Net liquidity, including storm escrows | 3,472 | 3,528 | (56) |
Parent debt to total debt, excluding securitization debt | 22.0% | 19.4% | 2.6% |
FFO to debt, excluding securitization debt | 14.6% | 11.8% | 2.8% |
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC | 16.0% | 15.8% | 0.2% |
Calculations may differ due to rounding |
G: Other GAAP to Non-GAAP Reconciliations
Appendix G-1, Appendix G-2, and Appendix G-3 provide reconciliations of various non-GAAP financial measures disclosed in this news release to their most comparable GAAP measure.
Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures - ROIC, ROE | |||
($ in millions except where noted) | Second Quarter | ||
2020 | 2019 | ||
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months | (A) | 1,230 | 961 |
Preferred dividends | 18 | 15 | |
Tax-effected interest expense | 574 | 543 | |
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months adjusted for preferred dividends and tax-effected interest expense | (B) | 1,822 | 1,519 |
Adjustments in prior three quarters | (5)
| 8
| |
Adjustments in current quarter | 85 | (26) | |
Total adjustments, last 12 months | (C) | 80 | (18) |
EWC preferred dividends and tax-effected interest expense, rolling 12 months | 21 | 30 | |
Total adjustments, adding back EWC preferred dividends and tax-effected interest expense (non-GAAP) | (D) | 101
| 12
|
Adjusted earnings, rolling 12 months (non-GAAP) | (A-C) | 1,150 | 979 |
Adjusted earnings, rolling 12 months including preferred dividends and tax- effected interest expense (non-GAAP) | (B-D) | 1,720 | 1,507 |
Average invested capital | (E) | 30,622
| 27,586
|
Average common equity | (F) | 10,112
| 8,910
|
As-reported ROIC | (B/E) | 5.9% | 5.5% |
Adjusted ROIC (non-GAAP) | [(B-D)/E] | 5.6% | 5.5% |
As-reported ROE | (A/F) | 12.2% | 10.8% |
Adjusted ROE (non-GAAP) | [(A-C)/F] | 11.4% | 11.0% |
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 escrow balances | |||
($ in millions except where noted) | Second Quarter | ||
2020 | 2019 | ||
Total debt | (A) | 21,493 | 19,054 |
Less securitization debt | (B) | 232 | 360 |
Total debt, excluding securitization debt | (C) | 21,261 | 18,694 |
Less cash and cash equivalents | (D) | 935 | 636 |
Net debt, excluding securitization debt | (E) | 20,326 | 18,058 |
Commercial paper | (F) | 1,946 | 1,635 |
Total capitalization | (G) | 32,173 | 29,071 |
Less securitization debt | (B) | 232 | 360 |
Total capitalization, excluding securitization debt | (H) | 31,941 | 28,711 |
Less cash and cash equivalents | (D) | 935 | 636 |
Net capital, excluding securitization debt | (I) | 31,006 | 28,075 |
Debt to capital | (A/G) | 66.8% | 65.5% |
Debt to capital, excluding securitization debt (non-GAAP) | (C/H) | 66.6% | 65.1% |
Net debt to net capital, excluding securitization debt (non-GAAP) | (E/I) | 65.6% | 64.3% |
Available revolver capacity | (J) | 4,110 | 4,120 |
Storm escrows | (K) | 373 | 407 |
Gross liquidity (non-GAAP) | (D+J) | 5,045 | 4,756 |
Net liquidity (non-GAAP) | (D+J-F) | 3,099 | 3,121 |
Net liquidity, including storm escrows (non-GAAP) | (D+J-F+K) | 3,472 | 3,528 |
Entergy Corporation notes: | |||
Due September 2020 | - | 450 | |
Due July 2022 | 650 | 650 | |
Due September 2026 | 750 | 750 | |
Due June 2030 | 600 | - | |
Due June 2050 | 600 | - | |
Total parent long-term debt | (L) | 2,600 | 1,850 |
Revolver draw | (M) | 160 | 150 |
Unamortized debt issuance costs and discounts | (N) | (32) | (9) |
Total parent debt | (F+L+M+N) | 4,675 | 3,626 |
Parent debt to total debt, excluding securitization debt (non-GAAP) | [(F+L+M+N)/C] | 22.0% | 19.4% |
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 exit of EWC | |||
($ in millions except where noted) | Second Quarter | ||
2020 | 2019 | ||
Total debt | (A) | 21,493 | 19,054 |
Less securitization debt | (B) | 232 | 360 |
Total debt, excluding securitization debt | (C) | 21,261 | 18,694 |
Net cash flow provided by operating activities, rolling 12 months | (D)
| 3,212 | 2,358 |
AFUDC – borrowed funds, rolling 12 months | (E) | (58) | (67) |
Working capital items in net cash flow provided by operating activities (rolling 12 months): | |||
Receivables | (5) | 17 | |
Fuel inventory | (35) | 24 | |
Accounts payable | (92) | (19) | |
Taxes accrued | 62 | 9 | |
Interest accrued | 5 | 7 | |
Other working capital accounts | (15) | (81) | |
Securitization regulatory charges | 123 | 121 | |
Total | (F) | 43 | 78 |
FFO, rolling 12 months (non-GAAP) | (G)=(D+E-F) | 3,110 | 2,213 |
FFO to debt, excluding securitization debt (non-GAAP) | (G/C) | 14.6% | 11.8% |
Estimated return of unprotected excess ADIT (rolling 12 months pre-tax) | (H) | 189 | 651 |
Severance and retention payments associated with exit of EWC (rolling 12 months pre-tax) | (I) | 102 | 97 |
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC (non-GAAP) | [(G+H+I)/(C)] | 16.0% | 15.8% |
Calculations may differ due to rounding |
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SOURCE Entergy Corporation
Article Date
7/29/2020Entergy to Report Second Quarter 2020 Financial Results on July 29
Source: PR Newswire
NEW ORLEANS, July 22, 2020 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) will report its second quarter 2020 financial results before the market opens Wednesday, July 29, 2020.
Company leaders will conduct a conference call to discuss financial results at 10 a.m. CT the same day. Listen to a live webcast of the call at entergy.com/investors or by dialing (844) 309-6569 and use conference ID 5161259.
From time to time, Entergy posts new and/or revised materials on its website and on social media and anticipates doing so in connection with this event. The presentation materials and an archived replay of the webcast will be available on Entergy's Investor Relations website at entergy.com/investors.
About Entergy Corporation
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 8,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,600 employees.
Additional investor information can be accessed at entergy.com/investors.
View original content to download multimedia:http://www.prnewswire.com/news-releases/entergy-to-report-second-quarter-2020-financial-results-on-july-29-301098418.html
SOURCE Entergy Corporation
Article Date
7/22/20205/11/2020 - Entergy Reports First Quarter Earnings
Entergy Reports First Quarter Earnings
Source: PR Newswire
NEW ORLEANS, May 11, 2020 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported first quarter 2020 earnings of 59 cents per share on an as-reported basis and $1.14 per share on an adjusted basis (non-GAAP).
"The past few months have presented extraordinary circumstances, and we extend our well-wishes to all affected. We also extend our deepest thanks to everyone working tirelessly to help those in need," said Entergy Chairman and Chief Executive Officer Leo Denault. "Providing safe, reliable power is essential, especially during times like these; that's why at Entergy we plan and prepare for the extraordinary, and our response has been effective. We are meeting the needs and expectations of our customers and communities, our major projects remain on track, and our capital plan is unchanged. Our first quarter results were solid, and recent events have not changed our objective to be the premier utility that delivers sustainable value for our stakeholders."
Business highlights included the following:
Consolidated Earnings (GAAP and Non-GAAP Measures) | |||
First Quarter 2020 vs. 2019 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of adjustments) | |||
First Quarter | |||
2020 | 2019 | Change | |
(After-tax, $ in millions) | |||
As-reported earnings | 119 | 255 | (136) |
Less adjustments | (111) | 97 | (208) |
Adjusted earnings (non-GAAP) | 230 | 158 | 72 |
Estimated weather in billed sales | (50) | (23) | (26) |
(After-tax, per share in $) | |||
As-reported earnings | 0.59 | 1.32 | (0.73) |
Less adjustments | (0.55) | 0.50 | (1.05) |
Adjusted earnings (non-GAAP) | 1.14 | 0.82 | 0.32 |
Estimated weather in billed sales | (0.25) | (0.12) | (0.13) |
Calculations may differ due to rounding |
Consolidated Results
For first quarter 2020, the company reported earnings of $119 million, or 59 cents per share, on an as-reported basis, and earnings of $230 million, or $1.14 per share, on an adjusted basis. This compared to first quarter 2019 earnings of $255 million, or $1.32 per share, on an as-reported basis, and earnings of $158 million, or 82 cents 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 variances by business is provided in Appendix B.
Business Segment Results
Utility
For first quarter 2020, the Utility business reported earnings attributable to Entergy Corporation of $320 million, or $1.59 per share, on both an as-reported and an adjusted basis. This compared to first quarter 2019 earnings of $231 million, or $1.20 per share, on both an as-reported basis and an adjusted basis. Drivers for the quarter included:
These drivers were partially offset by:
On a per share basis, first quarter 2020 results reflected higher common shares outstanding.
Appendix C contains additional details on Utility financial and operating measures.
Parent & Other
For first quarter 2020, Parent & Other reported a loss attributable to Entergy Corporation of $(90 million), or (45) cents per share, on both an as-reported basis and an adjusted basis. This compared to a loss of $(73 million), or (38) cents per share, on both an as-reported and an adjusted basis in first quarter 2019. The main driver for the quarter was higher income tax expense resulting from the IRS settlement related to Hurricane Isaac Act 55 financing, which largely offsets the benefit from this settlement at the Utility.
On a per share basis, first quarter 2020 results reflected higher common shares outstanding.
Entergy Wholesale Commodities
For first quarter 2020, EWC reported a loss attributable to Entergy Corporation of $(111 million), or (55) cents per share, on an as-reported basis. This compared to first quarter 2019 earnings attributable to Entergy Corporation of $97 million, or 50 cents per share, on an as-reported basis. Drivers for the quarter included:
These drivers were partially offset by:
On a per share basis, first quarter 2020 results reflected higher common shares outstanding.
Appendix D contains additional details on EWC financial and operating measures, including reconciliation for non-GAAP EWC adjusted EBITDA.
Earnings per Share Guidance
Entergy affirmed its 2020 adjusted EPS guidance range of $5.45 to $5.75. See webcast presentation slides for additional details.
The company has provided 2020 earnings guidance with regard to the non-GAAP measure of Entergy adjusted EPS. This measure excludes from the corresponding GAAP financial measure the effect of adjustments as described below under "Non-GAAP Financial Measures." The company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot predict and quantify with a reasonable degree of confidence all of the adjustments that may occur during the period. One such adjustment will be the exclusion of EWC earnings from Entergy adjusted EPS. We currently estimate that the contribution of EWC to Entergy's as-reported EPS will be approximately $(1.25) in 2020. These estimates are subject to substantial uncertainty due to, among other things, the potential effects of exiting the EWC business.
Earnings Teleconference
A teleconference will be held at 10:00 a.m. Central Time on Monday, May 11, 2020, to discuss Entergy's quarterly earnings announcement and the company's financial performance. The teleconference may be accessed by visiting Entergy's website at www.entergy.com or by dialing 844-309-6569, conference ID 5242577, no more than 15 minutes prior to the start of the call. The webcast slide presentation is also posted to Entergy's website concurrent with this news release, which was issued before market open on the day of the call. A replay of the teleconference will be available on Entergy's website at www.entergy.com and by telephone. The telephone replay will be available through May 18, 2020, by dialing 855-859-2056, conference ID 5242577.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 8,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy has annual revenues of $11 billion and approximately 13,600 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 slide presentation. Both documents are available on Entergy's Investor Relations website at www.entergy.com/investor_relations.
Entergy maintains a web page as part of its Investor Relations website, entitled Regulatory and Other Information, which provides investors with key updates of certain regulatory proceedings and important milestones on the execution of its strategy. While some of this information may be considered material information, investors should not rely exclusively on this page for all relevant company information.
For definitions of certain operating measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the earnings release materials, see Appendix F.
Non-GAAP Financial Measures
This news release contains non-GAAP financial measures, which are generally numerical measures of a company's performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Entergy has provided quantitative reconciliations within this news release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Entergy reports earnings using the non-GAAP measure of Entergy adjusted earnings, which excludes the effect of certain "adjustments," including the removal of the Entergy Wholesale Commodities segment in light of the company's decision to exit the merchant power business. Adjustments are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as the results of the EWC segment, significant tax items, and other items such as certain costs, expenses, or other specified items. In addition to reporting GAAP consolidated earnings on a per share basis, Entergy reports its adjusted earnings on a per share basis. These per share measures represent the applicable earnings amount divided by the diluted average number of common shares outstanding for the period.
Management uses the non-GAAP financial measures of adjusted earnings and adjusted earnings per share for, among other things, financial planning and analysis; reporting financial results to the board of directors, employees, stockholders, analysts, and investors; and internal evaluation of financial performance. Entergy believes that these non-GAAP financial measures provide useful information to investors in evaluating the ongoing results of Entergy's business, comparing period to period results, and comparing Entergy's financial performance to the financial performance of other companies in the utility sector.
Other non-GAAP measures, including adjusted EBITDA; adjusted ROE; adjusted ROIC; gross liquidity; net liquidity; net liquidity, including storm escrow balances; debt to capital, excluding securitization debt; net debt to net capital, excluding securitization debt; parent debt to total debt, excluding securitization debt; FFO; FFO to debt, excluding securitization debt; and FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC, are measures Entergy uses internally for management and board discussions and to gauge the overall strength of its business. Entergy believes the above data provides useful information to investors in evaluating Entergy's ongoing financial results and flexibility, and assists investors in comparing Entergy's credit and liquidity to the credit and liquidity of others in the Utility sector. In addition, other financial measures including net income (or earnings), adjusted for preferred dividends and tax-effected interest expense; return on average invested capital; and return on average common equity are included on both an adjusted and an as-reported basis. In each case, the metrics defined as "adjusted" (other than EWC's adjusted EBITDA) excludes the effect of adjustments as defined above. EWC's adjusted EBITDA represents EWC's earnings before interest, taxes, and depreciation and amortization, and also excludes decommissioning expense.
These non-GAAP financial measures reflect an additional way of viewing aspects of Entergy's operations that, when viewed with Entergy's GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting Entergy's business. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. Investors are strongly encouraged to review Entergy's consolidated financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Although certain of these measures are intended to assist investors in comparing Entergy's performance to other companies in the utility sector, non-GAAP financial measures are not standardized; therefore, it might not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
Cautionary Note Regarding Forward-Looking Statements
In this news release, and from time to time, Entergy Corporation makes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, among other things, Entergy's 2020 earnings guidance; its current financial and operational outlooks; and other statements of Entergy's plans, beliefs, or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy's most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and Entergy's other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans, and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) risks associated with operating nuclear facilities, including plant relicensing, operating, and regulatory costs and risks; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning Entergy's nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with strategic transactions that Entergy or its subsidiaries may undertake, including the risk that any such transaction may not be completed as and when expected, and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state, or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental, or energy policies; (i) the effects of technological changes and changes in commodity markets, capital markets, or economic conditions; (j) impacts from a terrorist attack, cybersecurity threats, data security breaches or other attempts to disrupt Entergy's business or operations, and/or other catastrophic events; and (k) the direct and indirect impacts of the COVID-19 pandemic on Entergy and its customers.
First Quarter 2020 Earnings Release Appendices and Financial Statements
Appendices
Appendices are presented in this section as follows:
Financial Statements
Financial statements are presented in this section.
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 2020 vs. 2019 (See Appendix A-3 and Appendix A-4 for details on adjustments) | |||
First Quarter | |||
2020 | 2019 | Change | |
(After-tax, $ in millions) | |||
Earnings (loss) | |||
Utility | 320 | 231 | 89 |
Parent & Other | (90) | (73) | (18) |
EWC | (111) | 97 | (208) |
Consolidated | 119 | 255 | (136) |
Less adjustments | |||
Utility | - | - | - |
Parent & Other | - | - | - |
EWC | (111) | 97 | (208) |
Consolidated | (111) | 97 | (208) |
Adjusted earnings (loss) (non-GAAP) | |||
Utility | 320 | 231 | 89 |
Parent & Other | (90) | (73) | (18) |
EWC | - | - | - |
Consolidated | 230 | 158 | 72 |
Estimated weather in billed sales | (50) | (23) | (26) |
Diluted average number of common shares outstanding (in millions) | 201 | 192 | |
(After-tax, per share in $) (a) | |||
Earnings (loss) | |||
Utility | 1.59 | 1.20 | 0.39 |
Parent & Other | (0.45) | (0.38) | (0.07) |
EWC | (0.55) | 0.50 | (1.05) |
Consolidated | 0.59 | 1.32 | (0.73) |
Less adjustments | |||
Utility | - | - | - |
Parent & Other | - | - | - |
EWC | (0.55) | 0.50 | (1.05) |
Consolidated | (0.55) | 0.50 | (1.05) |
Adjusted earnings (loss) (non-GAAP) | |||
Utility | 1.59 | 1.20 | 0.39 |
Parent & Other | (0.45) | (0.38) | (0.07) |
EWC | - | - | - |
Consolidated | 1.14 | 0.82 | 0.32 |
Estimated weather in billed sales | (0.25) | (0.12) | (0.13) |
Calculations may differ due to rounding | |
(a) | Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period. |
See Appendix B for detailed earnings variance analysis.
Appendix A-2 provides a comparative summary of OCF, by business.
Appendix A-2: Consolidated Operating Cash Flow | |||
First Quarter 2020 vs. 2019 | |||
($ in millions) | |||
First Quarter | |||
2020 | 2019 | Change | |
Utility | 603 | 455 | 148 |
Parent & Other | (81) | (78) | (3) |
EWC | 137 | 124 | 13 |
Consolidated | 659 | 501 | 158 |
Calculations may differ due to rounding |
OCF increased quarter-over-quarter due primarily to higher collections for fuel and purchased power cost recovery, a lower amount of unprotected excess ADIT returned to customers, higher nuclear insurance refunds, and lower nuclear refueling outage spending at EWC. Unfavorable weather and higher pension contributions partially offset the increase. Intercompany income tax payments also contributed to the line of business variances.
Appendix A-3 and Appendix A-4 list adjustments by business. Amounts are shown on both an earnings and an EPS basis. Adjustments are included in as-reported earnings consistent with GAAP but are excluded from adjusted earnings. As a result, adjusted earnings is considered a non-GAAP measure.
Appendix A-3: Adjustments by Driver (shown as positive/(negative) impact on earnings or EPS) | |||
First Quarter 2020 vs. 2019 | |||
First Quarter | |||
2020 | 2019 | Change | |
(Pre-tax except for income taxes, preferred dividend requirements, and totals; $ in millions) | |||
EWC | |||
Income before income taxes | (141) | 163 | (304) |
Income taxes | (31) | 66 | (96) |
Preferred dividend requirements | 1 | 1 | - |
Total EWC | (111) | 97 | (208) |
Total adjustments | (111) | 97 | (208) |
(After-tax, per share in $) (b) | |||
EWC | |||
Total EWC | (0.55) | 0.50 | (1.05) |
Total adjustments | (0.55) | 0.50 | (1.05) |
Calculations may differ due to rounding | |
(b) | Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period. |
Appendix A-4: Adjustments by Income Statement Line Item (shown as positive/(negative) impact on earnings) | ||||
First Quarter 2020 vs. 2019 | ||||
(Pre-tax except for income taxes, preferred dividend requirements, and totals; $ in millions) | ||||
First Quarter | ||||
2020 | 2019 | Change | ||
EWC | ||||
Operating revenue | 333 | 434 | (101) | |
Fuel and fuel-related expenses | (20) | (25) | 5 | |
Purchased power | (11) | (16) | 5 | |
Nuclear refueling outage expenses | (12) | (12) | - | |
Other O&M | (131) | (189) | 58 | |
Asset write-off and impairments | (5) | (74) | 69 | |
Decommissioning expense | (50) | (63) | 13 | |
Taxes other than income taxes | (20) | (13) | (7) | |
Depreciation/amortization exp. | (35) | (38) | 3 | |
Other income (deductions)–other | (184) | 169 | (352) | |
Interest exp. and other charges | (5) | (9) | 4 | |
Income taxes | 31 | (66) | 96 | |
Preferred dividend requirements | (1) | (1) | - | |
Total EWC | (111) | 97 | (208) | |
Total adjustments (after-tax) | (111) | 97 | (208) | |
Calculations may differ due to rounding |
B: Earnings Variance Analysis
Appendix B provides details of current quarter 2020 versus 2019 as-reported and adjusted earnings variance analysis for Utility, Parent & Other, and EWC.
Appendix B: As-Reported and Adjusted Earnings Variance Analysis (c), (d) | ||||||||||
First Quarter 2020 vs. 2019 | ||||||||||
(After-tax, per share in $) | ||||||||||
Utility | Parent & Other | EWC | Consolidated | |||||||
As-Reported | Adjusted | As-Reported | Adjusted | As- Reported | As- Reported | Adjusted | ||||
2019 earnings | 1.20 | 1.20 | (0.38) | (0.38) | 0.50 | 1.32 | 0.82 | |||
Operating revenue less: Fuel, fuel-related expenses and gas purchased for resale, Purchased power, and Regulatory charges (credits) | 0.28 | 0.28 | (e) | - | - | (0.37) | (f) | (0.09) | 0.28 | |
Nuclear refueling outage expense | - | - | - | - | - | - | - | |||
Other O&M | 0.08 | 0.08 | (g) | 0.02 | 0.02 | 0.24 | (h) | 0.34 | 0.10 | |
Asset write-offs and impairments | - | - | - | - | 0.28 | (i) | 0.28 | - | ||
Decommissioning expense | (0.02) | (0.02) | - | - | 0.06 | (j) | 0.04 | (0.02) | ||
Taxes other than income taxes | (0.02) | (0.02) | - | - | (0.03) | (0.05) | (0.02) | |||
Depreciation/amortization exp. | (0.18) | (0.18) | (k) | - | - | 0.01 | (0.17) | (0.18) | ||
Other income (deductions)–other | (0.03) | (0.03) | - | - | (1.45) | (l) | (1.48) | (0.03) | ||
Interest exp. and other charges | (0.05) | (0.05) | (m) | 0.01 | 0.01 | 0.02 | (0.02) | (0.04) | ||
Income taxes–other | 0.40 | 0.40 | (n) | (0.12) | (0.12) | (o) | 0.17 | (p) | 0.45 | 0.28 |
Preferred dividend requirements | - | - | - | - | - | - | - | |||
Share effect | (0.07) | (0.07) | (q) | 0.02 | 0.02 | 0.02 | (0.03) | (0.05) | ||
2020 earnings | 1.59 | 1.59 | (0.45) | (0.45) | (0.55) | 0.59 | 1.14 | |||
Calculations may differ due to rounding | |
(c) | Utility operating revenue / regulatory charges and Utility income taxes exclude $30 million in first quarter 2020 and $61 million in first quarter 2019 for the return of unprotected excess ADIT to customers (net effect is neutral to earnings). |
(d) | EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply and dividing by diluted average number of common shares outstanding for the prior period; income taxes–other represents income tax differences other than the tax effect of individual line items. |
(e) | The earnings increase was primarily driven by rate activity from E-AR's FRP; E-LA's FRP, including recovery of the J. Wayne Leonard Power Station (formerly St Charles Power Station); E-MS's FRP; recovery of E-MS's Choctaw Generating Station; and E-TX's TCRF and AMI rider. The variance also reflected a first quarter 2019 regulatory reserve at E-AR, as well as higher regulatory credits at E-LA for the difference between asset retirement obligation-related expenses and trust earnings plus asset retirement obligation-related costs collected in revenue. Partially offsetting was the net effect of volume/weather, as well as a regulatory liability for tax sharing with E-LA customers (this partially offsets the Hurricane Isaac Act 55 income tax item discussed in footnote n). |
(f) | The earnings decrease was due largely to lower revenues from the shutdown of Pilgrim in May 2019, as well as lower capacity and energy prices. These were partially offset by higher energy volume at Indian Point. |
(g) | The earnings increase from lower Utility other O&M was due largely to higher nuclear insurance refunds and lower fossil and nuclear generation spending. These were partially offset by higher pension and benefits expenses, as well as higher E-MS storm damage provisions (offset in operating revenue). |
(h) | The earnings increase from lower EWC other O&M was due largely to the shutdown of Pilgrim in May 2019, as well as a decrease in severance and retention expense. |
(i) | The earnings increase from lower EWC asset write-offs and impairments was due primarily to higher impairment charges in first quarter 2019, largely refueling outage costs at Indian Point. |
(j) | The earnings increase from lower EWC decommissioning expense was due to the sale of Pilgrim in 2019. |
(k) | The earnings decrease from higher Utility depreciation expense was due primarily to higher plant in service, including J. Wayne Leonard Power Station and Choctaw County Generating Station, as well as higher depreciation rates at E-MS. |
(l) | The earnings decrease from lower EWC other income (deductions)–other was due largely to losses on the decommissioning trust fund investments in first quarter 2020 as compared to gains in first quarter 2019. |
(m) | The earnings decrease from higher Utility interest expense was due primarily to higher debt balances at E-LA and E-AR. |
(n) | The earnings increase from lower Utility effective income tax rate reflected two first quarter 2020 items. A $55 million tax benefit was recorded as a result of an IRS settlement related to Act 55 financing of Hurricane Isaac costs (partly offset by customer sharing, recorded as a regulatory charge discussed in footnote e). In addition, an annual tax deduction related to stock-based compensation resulted in an income tax benefit of $22million, $20 million greater than first quarter 2019. |
(o) | The earnings decrease from higher Parent & Other effective income tax rate was due to an increase in income tax expense of $23 million as a result of the IRS settlement related to the Hurricane Isaac Act 55 financing (discussed in footnote n). |
(p) | The earnings increase from lower EWC effective income tax rate is primarily due to a first quarter 2019 accrual of $29 million of tax expense, which resulted from the sale of Vermont Yankee in January 2019. |
(q) | The earnings per share impacts from share effect were due to settlement of the equity forward (8.4 million shares settled in May 2019). |
Utility as-reported operating revenue less fuel, 2020 vs. 2019 ($ EPS) | |
1Q | |
Volume/weather | (0.04) |
Retail electric price | 0.33 |
Reg. provision for E-AR FRP | 0.04 |
Reg. liability for tax sharing | (0.10) |
Other | 0.05 |
Total | 0.28 |
C: Utility Financial and Operating Measures
Appendix C-1 and Appendix C-2 provide comparative summaries of Utility operating and financial measures.
Appendix C-1: Utility Operating and Financial Measures | ||||
First Quarter 2020 vs. 2019 | ||||
First Quarter | ||||
2020 | 2019 | % Change | % Weather | |
GWh billed | ||||
Residential | 8,126 | 8,471 | (4.1) | 1.4 |
Commercial | 6,244 | 6,423 | (2.8) | (2.7) |
Governmental | 595 | 601 | (1.0) | (1.5) |
Industrial | 11,815 | 11,683 | 1.1 | 1.1 |
Total retail sales | 26,780 | 27,178 | (1.5) | 0.3 |
Wholesale | 3,117 | 3,814 | (18.3) | |
Total sales | 29,897 | 30,992 | (3.5) | |
Number of electric retail customers | ||||
Residential | 2,504,243 | 2,485,256 | 0.8 | |
Commercial | 356,303 | 357,950 | (0.5) | |
Governmental | 17,724 | 17,814 | (0.5) | |
Industrial | 44,443 | 44,429 | - | |
Total retail customers | 2,922,713 | 2,905,449 | 0.6 | |
Other O&M and refueling outage expense per MWh | $20.20 | $20.12 | 0.4 | |
Appendix C-2: Utility Operating Measures | ||||
Twelve Months Ended March 31, 2020 vs. 2019 | ||||
Twelve Months Ended March 31 | ||||
2020 | 2019 | % Change | % Weather | |
GWh billed | ||||
Residential | 35,748 | 36,291 | (1.5) | (0.8) |
Commercial | 28,576 | 29,117 | (1.9) | (2.2) |
Governmental | 2,573 | 2,574 | - | (0.4) |
Industrial | 48,616 | 48,662 | (0.1) | (0.1) |
Total retail sales | 115,513 | 116,644 | (1.0) | (0.8) |
Calculations may differ due to rounding | |
(r) | The effects of weather were estimated using heating degree days and cooling degree days for the billing cycles from certain locations within each jurisdiction and comparing to "normal" weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change. |
On a weather-adjusted basis for first quarter 2020, billed retail sales increased 0.3 percent. Residential billed sales increased 1.4 percent primarily due to more days billed compared to a year ago. Commercial billed sales decreased (2.7) percent driven by the continued impact of energy efficiency as well as billing delays. Industrial billed sales volume increased 1.1 percent driven by continued growth from new/expansion customers, partially offset by lower sales to existing large customers.
D: EWC Financial and Operating Measures
Appendix D-1 provides a comparative summary of EWC adjusted EBITDA (non-GAAP).
Appendix D-1: EWC Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures | |||
First Quarter 2020 vs. 2019 | |||
($ in millions) | First Quarter | ||
2020 | 2019 | Change | |
Net income (loss) | (110) | 97 | (207) |
Add back: interest expense | 5 | 9 | (4) |
Add back: income taxes | (31) | 66 | (97) |
Add back: depreciation and amortization | 35 | 38 | (3) |
Subtract: interest and investment income | (172) | 181 | (353) |
Add back: decommissioning expense | 50 | 63 | (13) |
Adjusted EBITDA (non-GAAP) | 122 | 92 | 30 |
Calculations may differ due to rounding |
Appendix D-2 provides a comparative summary of EWC operating and financial measures.
Appendix D-2: EWC Operational and Financial Measures | |||
First Quarter 2020 vs. 2019 | |||
First Quarter | |||
2020 | 2019 | % Change | |
Owned capacity (MW) (s) | 3,274 | 3,962 | (17.4) |
GWh billed | 6,757 | 7,203 | (6.2) |
EWC Nuclear Fleet | |||
Capacity factor | 99% | 85% | 16.5 |
GWh billed | 6,259 | 6,690 | (6.5) |
Production cost per MWh | $15.42 | $20.04 | (23.1) |
Average energy/capacity revenue per MWh | $48.44 | $57.99 | (16.5) |
Refueling outage days | |||
Indian Point 3 | - | 21 | |
Calculations may differ due to rounding | |
(s) | First quarter 2020 excludes Pilgrim (688MW), which was shut down May 31, 2019 and sold August 26, 2019. |
See the appendix in the webcast slide presentation for EWC hedging and price disclosures.
E: Consolidated Financial Measures
Appendix E provides comparative financial measures. Financial measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP financial measures.
Appendix E: GAAP and Non-GAAP Financial Measures | |||
First Quarter 2020 vs. 2019 (See Appendix G for reconciliation of GAAP to non-GAAP financial measures) | |||
For 12 months ending March 31 | 2020 | 2019 | Change |
GAAP Measures | |||
As-reported ROIC | 5.6% | 5.6% | 0.0% |
As-reported ROE | 11.5% | 11.4% | 0.1% |
Non-GAAP Financial Measures | |||
Adjusted ROIC | 5.6% | 5.5% | 0.1% |
Adjusted ROE | 11.8% | 11.5% | 0.3% |
As of March 31 ($ in millions, except where noted) | 2020 | 2019 | Change |
GAAP Measures | |||
Cash and cash equivalents | 1,464 | 983 | 480 |
Available revolver capacity | 3,348 | 3,950 | (602) |
Commercial paper | 1,942 | 1,942 | (1) |
Total debt | 21,465 | 19,325 | 2,140 |
Securitization debt | 271 | 398 | (127) |
Debt to capital | 67.2% | 67.8% | (0.6%) |
Off-balance sheet liabilities: | |||
Debt of joint ventures – Entergy's share | 53 | 59 | (7) |
Total off-balance sheet liabilities | 53 | 59 | (7) |
Storm escrow balances | 373 | 405 | (33) |
Non-GAAP Financial Measures ($ in millions, except where noted) | |||
Debt to capital, excluding securitization debt | 66.9% | 67.3% | (0.4%) |
Gross liquidity | 4,811 | 4,933 | (122) |
Net liquidity | 2,870 | 2,991 | (121) |
Net liquidity, including storm escrow balances | 3,242 | 3,396 | (154) |
Net debt to net capital, excluding securitization debt | 65.3% | 66.1% | (0.8%) |
Parent debt to total debt, excluding securitization debt | 22.2% | 21.7% | 0.5% |
FFO to debt, excluding securitization debt | 14.3% | 11.1% | 3.1% |
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC | 16.0% | 15.0% | 1.0% |
Calculations may differ due to rounding |
F: Definitions and Abbreviations and Acronyms
Appendix F-1 provides definitions of certain operating measures, as well as GAAP and non-GAAP financial measures.
Appendix F-1: Definitions | ||
Utility Financial and Operating Measures | ||
GWh billed | Total number of GWh billed to retail and wholesale customers | |
Other O&M and refueling outage expense per MWh | Other operation and maintenance expense plus nuclear refueling outage expense per MWh of billed sales | |
Number of electric retail customers | Average number of electric customers over the period | |
EWC Financial and Operating Measures | ||
Adjusted EBITDA (non-GAAP) | Earnings before interest, income taxes, and depreciation and amortization, and excluding decommissioning expense | |
Average revenue under contract per kW-month (applies to capacity contracts only) | Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and/or auction awards | |
Average revenue per MWh on contracted volumes | Revenue on a per unit basis at which generation output reflected in contracts is expected to be sold to third parties (including offsetting positions) at the minimum contract prices and at forward market prices at a point in time, given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market PPA for Palisades. Revenue will fluctuate due to factors including positive or negative basis differentials and other risk management costs | |
Bundled capacity and energy contracts | A contract for the sale of installed capacity and related energy, priced per MWh sold | |
Capacity contracts | A contract for the sale of the installed capacity product in regional markets managed by NYISO and MISO | |
Capacity factor | Normalized percentage of the period that the nuclear plants generate power | |
Expected sold and market total revenue per MWh | Total energy and capacity revenue on a per unit basis at which total planned generation output and capacity is expected to be sold given contract terms and market prices at a point in time, including positive or negative basis differentials and other risk management costs, divided by total planned MWh of generation, excluding the revenue associated with the amortization of the Palisades below-market PPA | |
Appendix F-1: Definitions (continued) | ||
EWC Financial and Operating Measures (continued) | ||
GWh billed | Total number of GWh billed to customers and financially-settled instruments | |
Owned capacity (MW) | Installed capacity owned by EWC | |
Percent of capacity sold forward | Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions | |
Percent of planned generation under contract | Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts, or options that mitigate price uncertainty that may or may not require regulatory approval or approval of transmission rights or other conditions precedent; positions that are no longer classified as hedges are netted in the planned generation under contract | |
Planned net MW in operation | Amount of installed capacity to generate power and/or sell capacity, reflecting the shutdown of Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021), and Palisades (May 31, 2022) | |
Planned TWh of generation | Amount of output expected to be generated by EWC resources considering plant operating characteristics and outage schedules, reflecting the shutdown of Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021), and Palisades (May 31, 2022) | |
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) | |
Refueling outage days | Number of days lost for a scheduled refueling and maintenance outage during the period | |
Unit-contingent | Transaction under which power is supplied from a specific generation asset; if the asset is in operational outage, seller is generally not liable to buyer for any damages, unless the contract specifies certain conditions such as an availability guarantee | |
Financial Measures – GAAP | ||
As-reported ROE | 12-months rolling net income attributable to Entergy Corporation divided by average common equity | |
As-reported ROIC | 12-months rolling net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital | |
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 | |
Leases – Entergy's share | Operating leases held by subsidiaries capitalized at implicit interest rate | |
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 capital leases on the balance sheet | |
Appendix F-1: Definitions (continued) | ||
Financial Measures - Non-GAAP | ||
Adjusted EPS | As-reported EPS excluding adjustments | |
Adjusted ROE | 12-months rolling adjusted net income attributable to Entergy Corporation divided by average common equity | |
Adjusted ROIC | 12-months rolling adjusted net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital | |
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 adjusted FFO as a percentage of end of period total debt excluding securitization debt | |
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC | 12-months rolling adjusted FFO excluding return of unprotected excess ADIT and severance and retention payments associated with 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, excluding 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 escrow reserves | Sum of cash, available revolver capacity, and escrow accounts available for certain storm expenses, less commercial paper borrowing | |
Parent debt to total debt, excluding securitization debt | End of period Entergy Corporation debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of consolidated total debt, excluding 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 | ISO | Independent system operator |
AFUDC – borrowed funds | Allowance for borrowed funds used during construction | LCPS | Lake Charles Power Station (CCGT) |
ALJ | Administrative law judge | LPSC | Louisiana Public Service Commission |
AMI | Advanced metering infrastructure | LTM | Last twelve months |
ANO | Units 1 and 2 of Arkansas Nuclear One owned by E-AR (nuclear) | MCPS | Montgomery County Power Station (CCGT) |
APSC | Arkansas Public Service Commission | MISO | Midcontinent Independent System Operator, Inc. |
ARO | Asset retirement obligation | Moody's | Moody's Investor Service |
bps | Basis points | MPSC | Mississippi Public Service Commission |
CCGT | Combined cycle gas turbine | MTEP | MISO Transmission Expansion Plan |
CCN | Certificate of convenience and necessity | Nelson 6 | Unit 6 of Roy S. Nelson plant (coal) |
CCNO | Council of the City of New Orleans | NDT | Nuclear decommissioning trust |
Choctaw | Choctaw County Generating Station (CCGT) | NOPS | New Orleans Power Station |
COD | Commercial operation date | NRC | U.S. Nuclear Regulatory Commission |
CT | Simple cycle combustion turbine | NY PSC | New York Public Service Commission |
CWIP | Construction work in progress | NYISO | New York Independent System Operator, Inc. |
DCRF | Distribution cost recovery factor | NYSE | New York Stock Exchange |
DOE | U.S. Department of Energy | OCF | Net cash flow provided by operating activities |
E-AR | Entergy Arkansas, LLC | OpCo | Utility operating company |
E-LA | Entergy Louisiana, LLC | OPEB | Other post-employment benefits |
E-MS | Entergy Mississippi, LLC | Other O&M | Other non-fuel operation and maintenance expense |
E-NO | Entergy New Orleans, LLC | P&O | Parent & Other |
E-TX | Entergy Texas, Inc. | Palisades | Palisades Power Plant (nuclear) |
EBITDA | Earnings before interest, income taxes, and depreciation and amortization | Pilgrim
| Pilgrim Nuclear Power Station (nuclear, sold August 26, 2019) |
ENP | Entergy Nuclear Palisades, LLC | PMR | Performance Management Rider |
EPS | Earnings per share | PPA | Power purchase agreement or purchased power agreement |
ETR | Entergy Corporation | PSC | Public service commission |
EWC | Entergy Wholesale Commodities | PUCT | Public Utility Commission of Texas |
FERC | Federal Energy Regulatory Commission | RICE | Reciprocating internal combustion engine |
FFO | Funds from operations | RFP | Request for proposals |
FRP | Formula rate plan | ROE | Return on equity |
GAAP | U.S. generally accepted accounting principles | ROIC | Return on invested capital |
Grand Gulf or GGNS | Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by SERI | RS Cogen | RS Cogen facility (CCGT cogeneration) |
IIRR-G | Infrastructure investment recovery rider - gas | RSP | Rate Stabilization Plan (E-LA Gas) |
Indian Point 1 | Indian Point Energy Center Unit 1 (nuclear) (shut down in 1974) | S&P | Standard & Poor's |
Indian Point 2 or IP2 | Indian Point Energy Center Unit 2 (nuclear) (shut down 4/30/20) | SEC | U.S. Securities and Exchange Commission |
Indian Point 3 or IP3 | Indian Point Energy Center Unit 3 (nuclear) | SERI | System Energy Resources, Inc. |
IPEC | Indian Point Energy Center (nuclear) | TCRF | Transmission cost recovery factor |
ISES 2 | Unit 2 of Independence Steam Electric Station (coal) | UPSA | Unit Power Sales Agreement |
IRS | Internal Revenue Service | Vermont Yankee | Vermont Yankee Nuclear Power Station (nuclear, sold January 11, 2019) |
WACC | Weighted-average cost of capital | ||
WPEC
| Washington Parish Energy Center
| ||
G: Other GAAP to Non-GAAP Reconciliations
Appendix G-1, Appendix G-2, and Appendix G-3 provide reconciliations of various non-GAAP financial measures disclosed in this news release to their most comparable GAAP measure.
Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures - ROIC, ROE | |||
($ in millions except where noted) | First Quarter | ||
2020 | 2019 | ||
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months | (A) | 1,105 | 970 |
Preferred dividends | 17 | 15 | |
Tax-effected interest expense | 559 | 539 | |
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months adjusted for preferred dividends and tax-effected interest expense | (B) | 1,681 | 1,524 |
Adjustments in prior three quarters | 80 | (103) | |
Adjustments in current quarter | (111) | 97 | |
Total adjustments, last 12 months | (C) | (31) | (6) |
EWC preferred dividends and tax-effected interest expense, rolling 12 months | 22 | 30 | |
Total adjustments, adding back EWC preferred dividends and tax-effected interest expense (non-GAAP) | (D) | (9) | 24 |
Adjusted earnings, rolling 12 months (non-GAAP) | (A-C) | 1,136 | 976 |
Adjusted earnings, rolling 12 months including preferred dividends and tax- effected interest expense (non-GAAP) | (B-D) | 1,690 | 1,501 |
Average invested capital | (E) | 30,229 | 27,184 |
Average common equity | (F) | 9,597 | 8,473 |
As-reported ROIC | (B/E) | 5.6% | 5.6% |
Adjusted ROIC (non-GAAP) | [(B-D)/E] | 5.6% | 5.5% |
As-reported ROE | (A/F) | 11.5% | 11.4% |
Adjusted ROE (non-GAAP) | [(A-C)/F] | 11.8% | 11.5% |
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 escrow balances | |||
($ in millions except where noted) | First Quarter | ||
2020 | 2019 | ||
Total debt | (A) | 21,465 | 19,325 |
Less securitization debt | (B) | 271 | 398 |
Total debt, excluding securitization debt | (C) | 21,193 | 18,927 |
Less cash and cash equivalents | (D) | 1,464 | 983 |
Net debt, excluding securitization debt | (E) | 19,730 | 17,944 |
Commercial paper | (F) | 1,942 | 1,942 |
Total capitalization | (G) | 31,943 | 28,515 |
Less securitization debt | (B) | 271 | 398 |
Total capitalization, excluding securitization debt | (H) | 31,672 | 28,117 |
Less cash and cash equivalents | (D) | 1,464 | 983 |
Net capital, excluding securitization debt | (I) | 30,208 | 27,134 |
Debt to capital | (A/G) | 67.2% | 67.8% |
Debt to capital, excluding securitization debt (non-GAAP) | (C/H) | 66.9% | 67.3% |
Net debt to net capital, excluding securitization debt (non-GAAP) | (E/I) | 65.3% | 66.1% |
Available revolver capacity | (J) | 3,348 | 3,950 |
Storm escrow balances | (K) | 373 | 405 |
Gross liquidity (non-GAAP) | (D+J) | 4,811 | 4,933 |
Net liquidity (non-GAAP) | (D+J-F) | 2,870 | 2,991 |
Net liquidity, including storm escrow balances (non-GAAP) | (D+J-F+K) | 3,242 | 3,396 |
Entergy Corporation notes: | |||
Due September 2020 | 450 | 450 | |
Due July 2022 | 650 | 650 | |
Due September 2026 | 750 | 750 | |
Total parent long-term debt | (L) | 1,850 | 1,850 |
Revolver draw | (M) | 922 | 320 |
Unamortized debt issuance costs and discounts | (N) | (8) | (9) |
Total parent debt | (F+L+M+N) | 4,706 | 4,103 |
Parent debt to total debt, excluding securitization debt (non-GAAP) | [(F+L+M+N)/C] | 22.2% | 21.7% |
Calculations may differ due to rounding |
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures – FFO to debt, excluding securitization debt; FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC | |||
($ in millions except where noted) | First Quarter | ||
2020 | 2019 | ||
Total debt | (A) | 21,465 | 19,325 |
Less securitization debt | (B) | 271 | 398 |
Total debt, excluding securitization debt | (C) | 21,193 | 18,927 |
Net cash flow provided by operating activities, rolling 12 months | (D) | 2,974 | 2,329 |
AFUDC – borrowed funds, rolling 12 months | (E) | (63) | (65) |
Working capital items in net cash flow provided by operating activities (rolling 12 months): | |||
Receivables | (71) | 7 | |
Fuel inventory | (39) | 58 | |
Accounts payable | (136) | 103 | |
Taxes accrued | (21) | 51 | |
Interest accrued | 17 | (5) | |
Other working capital accounts | 17 | (178) | |
Securitization regulatory charges | 122 | 121 | |
Total | (F) | (111) | 157 |
FFO, rolling 12 months (non-GAAP) | (G)=(D+E-F) | 3,023 | 2,107 |
FFO to debt, excluding securitization debt (non-GAAP) | (G/C) | 14.3% | 11.1% |
Estimated return of unprotected excess ADIT (rolling 12 months pre-tax) | (H) | 236 | 692 |
Severance and retention payments associated with exit of EWC (rolling 12 months pre-tax) | (I) | 141 | 43 |
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC (non-GAAP) | [(G+H+I)/(C)] | 16.0% | 15.0% |
Calculations may differ due to rounding |
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SOURCE Entergy Corporation
Article Date
5/11/2020Arkansas Public Service Commission Approves Searcy Solar Project
Source: PR Newswire
LITTLE ROCK, Ark., April 28, 2020 /PRNewswire/ -- The Arkansas Public Service Commission has approved a new utility-scale solar project that will provide Entergy Arkansas customers with 100 megawatts of solar power and 10 megawatts of battery storage for when the sun isn't shining.
The Searcy Solar project in White County will be the largest utility-owned solar project in the state and the first to feature battery storage.
When completed in 2021, it will be the third project generating solar energy for Entergy Arkansas' customers, bringing the total of solar energy to 281 megawatts covering more than 2,000 acres – enough to power about 45,000 homes. The Stuttgart Solar Energy Center has been producing 81 megawatts of solar energy since 2018, and Chicot Solar, under construction near Lake Village, will provide 100 megawatts of solar power when it comes online later this year.
"Entergy Arkansas is proud to be leading the charge in expanding solar power in our state, and we are committed to meeting our customers' energy needs reliably, affordably and safely as we have done for over 100 years," said Laura Landreaux, president and CEO of Entergy Arkansas. "Large-scale solar facilities provide the most cost-effective solar power for all customers, keeping rates low while delivering the best value for renewables in Arkansas."
"This large solar facility will be a very effective economic development tool as we work to attract new employers and retain our existing businesses. Many corporations have renewable energy and sustainability objectives," said Arkansas Secretary of Commerce Mike Preston. "This facility, combined with Entergy's other large solar facilities in Arkansas, will help us strengthen and grow the state's economy."
The Searcy Solar project will be built on approximately 800 acres east of Eastline Road (US 67, Exit 44) in Searcy and will include a 10-megawatt array of lithium-ion batteries capable of storing up to 30 MW hours of electricity, which is expected to be charged and discharged daily to maximize the value of the solar energy for the benefit of customers.
"This is welcome news for the area," said Sen. Jonathan Dismang, R-Searcy. "This large solar project provides a much-needed economic benefit to Searcy and White County. It will provide construction-related jobs and a long-term, low-cost renewable resource."
The Searcy Solar facility will bring 200 temporary construction jobs and two or three permanent jobs, along with periodic maintenance workers. It also will provide about $700,000 in annual property taxes as well as environmental benefits through emissions-free energy.
"I'm excited to have this large solar facility constructed in Searcy. This will enhance our local economy and tax base," said Rep. Les Eaves, R-Searcy. "I appreciate Entergy leadership in renewable energy and economic development."
Entergy Arkansas provides electricity to approximately 700,000 customers in 63 counties. Entergy Arkansas is a subsidiary of Entergy Corporation (NYSE: ETR), an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,600 employees.
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SOURCE Entergy Corporation
Article Date
4/28/2020Entergy to Hold 2020 Annual Meeting of Shareholders Virtually
Source: PR Newswire
NEW ORLEANS, April 23, 2020 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) announced today that due to the public health impact of the novel coronavirus (COVID-19) pandemic and to support the health and well-being of its employees, shareholders, and other meeting participants, the company will hold its annual meeting of shareholders, scheduled for Friday, May 8, 2020, at 10:00 a.m. Central time, in a virtual meeting format only.
The virtual meeting will be webcast and can be accessed by all shareholders on the day of the meeting at www.virtualshareholdermeeting.com/ETR2020 using the 16-digit control number on their proxy card, voting instruction form, or notice. The company has designed the format of the annual meeting to ensure that shareholders are afforded opportunities to participate in the meeting, including voting electronically and asking questions using online tools.
For additional information regarding accessing and participating in the virtual meeting, please refer to the Company's supplemental proxy materials filed with the Securities and Exchange Commission on April 23, 2020 and available on the "SEC Filings" section of Entergy's Investor website at https://entergycorporation.gcs-web.com/financial-information/sec-filings.
As described in the proxy materials for the annual meeting, Entergy shareholders are entitled to attend and vote at the annual meeting only if they held shares as of the close of business on March 9, 2020, the record date designated by the board for the meeting, or hold a legal proxy for another shareholder.
About Entergy Corporation
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,600 employees.
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SOURCE Entergy Corporation
Article Date
4/23/2020Mississippi Public Service Commission Gives Green Light to 1,000-Acre Solar Farm
Source: PR Newswire
JACKSON, Miss., April 14, 2020 /PRNewswire/ -- The Mississippi Delta will soon be home to the largest utility-owned solar farm in the state, after receiving approval from the Mississippi Public Service Commission.
Recurrent Energy, a solar facility manufacturer, will build the project on behalf of Entergy Mississippi, LLC. The project should be complete by no later than mid-2022. Once built, Entergy will assume ownership for the life of the facility. The emissions-free, renewable energy plant will sit on approximately 1,000 acres in Sunflower County and will connect to Entergy's transmission grid in Ruleville.
"We're happy to have commission approval to move forward," said Haley Fisackerly, Entergy Mississippi president and CEO. "The Sunflower Solar Facility will be key in helping us meet changing customer expectations. It will give us more sustainable ways to meet our customers' energy needs while diversifying our fuel supply."
The project will be a single-axis tracking photovoltaic power generator. Its 350,000 PV modules will be able to generate 100 MW of clean energy, enough to power more than 16,000 homes.
In 2016, Entergy Mississippi began studying solar as a renewable energy source. That year, the company built the state's first-ever utility-owned solar project. The pilot project consisted of three sites in Brookhaven, Hinds and DeSoto counties. These sites helped answer questions about how solar would perform in Mississippi's varied geographical regions. The project was the genesis for the Sunflower Solar facility.
Entergy Mississippi, LLC provides electricity to approximately 450,000 customers in 45 counties. Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,600 employees.
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SOURCE Entergy Corporation
Article Date
4/14/2020Entergy Announces Quarterly Dividend Payment to Shareholders
Source: PR Newswire
NEW ORLEANS, April 8, 2020 /PRNewswire/ -- The board of directors of Entergy Corporation (NYSE: ETR) has approved a quarterly dividend payment of $0.93 per share on the company's common stock. The dividend is payable June 1, 2020, to shareholders of record as of May 7, 2020.
Entergy has paid a common stock dividend to shareholders continuously since 1988.
About Entergy Corporation
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,600 employees.
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SOURCE Entergy Corporation
Article Date
4/8/2020Lake Charles Power Station Achieves Commercial Operation
Source: PR Newswire
WESTLAKE, La., March 30, 2020 /PRNewswire/ -- Entergy Louisiana's state-of-the-art Lake Charles Power Station began commercial operation March 28, providing another source of reliable and clean energy to a region that has seen substantial growth in recent years.
"We are excited to announce Lake Charles Power Station achieved commercial operations well ahead of schedule. It's a huge win for our customers," said Phillip May, president and CEO of Entergy Louisiana. "Not only does the addition of this plant make our generation portfolio, which was already one of the cleanest in the nation, even cleaner, but it also supports system reliability and produces substantial customer savings."
Combined-cycle gas turbine units like the Lake Charles Power Station emit on average about 40% less carbon dioxide than Entergy's older natural gas-powered units. Because of the plant's high efficiency, it has been projected customers will save between $1.3 billion and $2 billion over the anticipated 30-year life of the plant.
The $872 million project helps improve the region's overall reliability by locating the station in a rapidly growing area and avoids costly transmission projects that would otherwise have been needed to maintain reliability for the greater Lake Charles area.
Construction began on the Westlake facility in August 2017, and the plant officially reached commercial operation well ahead of its originally scheduled June completion date. At its peak, construction of the plant employed approximately 1,100 people. Ongoing operations of the plant will employ approximately 30 people.
Entergy Corporation Portfolio Transformation
The Lake Charles Power Station is another important milestone in Entergy Corporation's broader plan to modernize and transform the existing generation fleet of its utility operating companies while maintaining some of the lowest rates in the nation. Over the past 15 years, Entergy has added approximately 8,500 megawatts of clean, highly efficient combined-cycle gas turbine generation, allowing for the deactivation of over 6,500 megawatts of older, less efficient gas or oil units.
In addition to providing reliable, cost-effective power, Entergy's investments in its generation portfolio transformation and nuclear improvements since 2000 have resulted in substantial reductions in the company's greenhouse gas emissions, highlighting Entergy's commitment to environmental stewardship.
In 2001, Entergy Corporation became the first U.S. electric utility to voluntarily commit to capping greenhouse gas emissions. Most recently, the company announced a goal of reducing its carbon emission rate by 50% below year 2000 levels by 2030.
About Entergy Louisiana
Entergy Louisiana, LLC provides electric service to more than 1 million customers and natural gas service to more than 93,000 customers in the greater Baton Rouge area. It has operations in southern, central and northern Louisiana.
About Entergy Corporation
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,600 employees.
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SOURCE Entergy Corporation
Article Date
3/30/2020Entergy Creates COVID-19 Emergency Relief Fund to Help Customers in Need
Source: PR Newswire
NEW ORLEANS, March 20, 2020 /PRNewswire/ -- In an effort to help working families experiencing financial hardships as a result of the coronavirus pandemic, the Entergy Charitable Foundation has established the COVID-19 Emergency Relief Fund.
"The health and safety of our customers, employees and communities is Entergy's top priority," said Leo Denault, chairman and CEO of Entergy Corporation. "For more than 100 years, Entergy has never wavered in our commitment to supporting our customers and the communities we serve. This pandemic is no different. During this challenging time, we are helping lessen the impact of this crisis on the most vulnerable in our communities. I strongly encourage our business partners to join us in this effort."
As devastating and disruptive as this crisis is for everyone, we know from past experience that those most heavily impacted are ALICE households (low-wage working families) and low-income elderly and disabled customers – roughly 40%-50% of Entergy's customer base.
"We know from experience that working families and low-income elderly and disabled customers are hardest hit during times of crisis," said Patty Riddlebarger, vice president of Entergy's corporate social responsibility. "We are working quickly to make funds available to community partners that serve vulnerable households to lessen the economic impact of the COVID-19 crisis and ensure that families have the resources they need to get by during this time of uncertainty."
To support our most vulnerable customers, Entergy shareholders are committing $700,000 to the COVID-19 Emergency Relief Fund to help qualifying customers with basic needs such as food and nutrition, rent and mortgage assistance, and other critical needs until financial situations become more stable. Grants from the fund will be provided to United Way organizations and other nonprofit partners across Entergy's service area that are providing services to impacted households.
Company shareholders will also match employee contributions to the COVID-19 relief efforts of local United Way organizations up to $100,000 to maximize impact.
In addition to establishing the COVID-19 Emergency Relief Fund, Entergy is taking additional steps to support and protect our customers during this crisis, including:
Already in place to support vulnerable customers is Entergy's The Power to Care program, which provides emergency bill payment assistance to seniors and disabled individuals. To mark the 20th anniversary of Entergy's low-income customer initiative, the limit of shareholders' dollar for dollar match of customer donations was increased from $500,000 to $1 million per year. Shareholders continue to match employee donations dollar for dollar with no limit.
More information about Entergy's COVID-19 preparations and response can be found at entergy.com/coronavirus.
About Entergy Corporation
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,600 employees.
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SOURCE Entergy Corporation
Article Date
3/20/20202/19/2020 - Entergy Reports Fourth Quarter and Full Year Financial Results; Initiates 2020 Earnings Guidance
Entergy Reports Fourth Quarter and Full Year Financial Results; Initiates 2020 Earnings Guidance
Source: PR Newswire
NEW ORLEANS, Feb. 19, 2020 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported fourth quarter 2019 earnings per share of $1.92 on an as-reported basis and 68 cents on an adjusted basis (non-GAAP). For the full year, the company reported 2019 earnings per share of $6.30 on an as-reported basis and $5.40 on an adjusted basis.
"We are reporting strong results for another very successful year," said Entergy Chairman and Chief Executive Officer Leo Denault. "The favorable turn in weather in the second half of the year was a good opportunity for us to take on additional stakeholder initiatives. The fundamentals supporting our steady, predictable growth are strong and give us confidence in our financial outlooks. And as we take our business to the next level, we aspire to do even better."
Business highlights included the following:
Consolidated Earnings (GAAP and Non-GAAP Measures) Fourth Quarter and Year-to-Date 2019 vs. 2018 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of adjustments) | ||||||
Fourth Quarter | Year-to-Date | |||||
2019 | 2018 | Change | 2019 | 2018 | Change | |
(After-tax, $ in millions) | ||||||
As-reported earnings | 385 | (66) | 451 | 1,241 | 849 | 393 |
Less adjustments | 248 | (194) | 442 | 177 | (121) | 298 |
Adjusted earnings (non-GAAP) | 137 | 128 | 9 | 1,064 | 970 | 94 |
Estimated weather in billed sales | 45 | 25 | 20 | 46 | 67 | (21) |
(After-tax, per share in $) | ||||||
As-reported earnings | 1.92 | (0.36) | 2.28 | 6.30 | 4.63 | 1.67 |
Less adjustments | 1.24 | (1.06) | 2.30 | 0.90 | (0.66) | 1.56 |
Adjusted earnings (non-GAAP) | 0.68 | 0.70 | (0.02) | 5.40 | 5.29 | 0.11 |
Estimated weather in billed sales | 0.22 | 0.13 | 0.09 | 0.23 | 0.37 | (0.14) |
Calculations may differ due to rounding |
Consolidated Results
For fourth quarter 2019, the company reported earnings of $385 million, or $1.92 per share, on an as-reported basis, and earnings of $137 million, or 68 cents per share, on an adjusted basis. This compared to a fourth quarter 2018 loss of $(66 million), or (36) cents per share, on an as-reported basis, and earnings of $128 million, or 70 cents per share, on an adjusted basis.
For the full year, the company reported earnings of $1,241 million, or $6.30 per share, on an as-reported basis, and earnings of $1,064 million, or $5.40 per share, on an adjusted basis. This compared to 2018 earnings of $849 million, or $4.63 per share, on an as-reported basis, and earnings of $970 million, or $5.29 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.
Business Segment Results
Utility
For fourth quarter 2019, the Utility business reported earnings attributable to Entergy Corporation of $271 million, or $1.35 per share, on an as-reported basis, and earnings of $229 million, or $1.14 per share, on an adjusted basis. This compared to fourth quarter 2018 earnings of $388 million, or $2.12 per share, on an as-reported basis, and earnings of $209 million, or $1.14 per share, on an adjusted basis. Drivers for the quarter included:
These drivers were partially offset by:
For full year 2019, the Utility business reported earnings attributable to Entergy Corporation of $1,411 million, or $7.16 per share, on an as-reported basis, and earnings of $1,369 million, or $6.95 per share, on an adjusted basis. This compared to full year 2018 earnings of $1,483 million, or $8.09 per share, on an as-reported basis, and $1,262 million, or $6.88 per share, on an adjusted basis. Drivers for the full year included:
These drivers were partially offset by:
On a per share basis, both fourth quarter and full year 2019 results reflected higher common shares outstanding.
Appendix C contains additional details on Utility financial and operating measures.
Parent & Other
For fourth quarter 2019, Parent & Other reported a loss attributable to Entergy Corporation of $(103 million), or (51) cents per share, on an as-reported basis, and a loss of $(92 million), or (46) cents per share, on an adjusted basis. This compared to a loss of $(81 million), or (44) cents per share, on both an as-reported and an adjusted basis in fourth quarter 2018. Drivers for the quarter included:
For the full year, Parent & Other reported a loss attributable to Entergy Corporation of $(316 million), or $(1.60) per share, on an as-reported basis, and a loss of $(305 million), or $(1.55) per share, on an adjusted basis. This compared to a full year 2018 loss of $(292 million), or $(1.59) per share, on both an as-reported and an adjusted basis. The drivers for fourth quarter 2019 discussed above were also the drivers for the full year.
On a per share basis, both fourth quarter and full year 2019 results reflected higher common shares outstanding.
Entergy Wholesale Commodities
For fourth quarter 2019, EWC reported earnings attributable to Entergy Corporation of $217 million, or $1.08 per share, on an as-reported basis. This compared to a fourth quarter 2018 loss attributable to Entergy Corporation of $(373 million), or $(2.04) per share, on an as-reported basis. Drivers for the quarter included:
These drivers were partially offset by lower revenue primarily due to the shutdown of Pilgrim.
For the full year, EWC reported earnings attributable to Entergy Corporation of $147 million, or 74 cents per share, on an as-reported basis. This compared to a full year 2018 loss attributable to Entergy Corporation of $(343 million), or $(1.87) per share, on an as-reported basis. Drivers for the year included:
These drivers were partially offset by lower revenue primarily due to the shutdown of Pilgrim and higher nuclear refueling outage expense.
On a per share basis, both fourth quarter and full year 2019 results reflected higher common shares outstanding.
Appendix D contains additional details on EWC financial and operating measures, including reconciliation for non-GAAP EWC adjusted EBITDA.
Earnings per Share Guidance
Entergy initiated its 2020 adjusted EPS guidance range of $5.45 to $5.75. See webcast presentation slides for additional details.
The company has provided 2020 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 periods. One such adjustment will be the exclusion of EWC earnings from Entergy adjusted EPS. We currently estimate that the contribution of EWC to Entergy's as-reported EPS will be approximately (40) cents in 2020. These estimates are subject to substantial uncertainty due to, among other things, the potential effects of exiting the EWC business.
Earnings Teleconference
A teleconference will be held at 10:00 a.m. Central Time on Wednesday, February 19, 2020, to discuss Entergy's quarterly earnings announcement and the company's financial performance. The teleconference may be accessed by visiting Entergy's website at www.entergy.com or by dialing 844-309-6569, conference ID 1253867, no more than 15 minutes prior to the start of the call. The webcast slide presentation is also posted to Entergy's website concurrent with this news release, which was issued before market open on the day of the call. A replay of the teleconference will be available on Entergy's website at www.entergy.com and by telephone. The telephone replay will be available through February 26, 2020, by dialing 855-859-2056, conference ID 1253867.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy has annual revenues of $11 billion and approximately 13,600 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 slide presentation. Both documents are available on Entergy's Investor Relations website at www.entergy.com/investor_relations.
Entergy maintains a web page as part of its Investor Relations website, entitled Regulatory and Other Information, which provides investors with key updates of certain regulatory proceedings and important milestones on the execution of its strategy. While some of this information may be considered material information, investors should not rely exclusively on this page for all relevant company information.
For definitions of certain operating measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the earnings release materials, see Appendix F.
Non-GAAP Financial Measures
This news release contains non-GAAP financial measures, which are generally numerical measures of a company's performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Entergy has provided quantitative reconciliations within this news release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Entergy reports earnings using the non-GAAP measure of Entergy adjusted earnings, which excludes the effect of certain "adjustments," including the removal of the Entergy Wholesale Commodities segment in light of the company's decision to exit the merchant power business. Adjustments are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as the results of the EWC segment, significant tax items, and other items such as certain costs, expenses, or other specified items. In addition to reporting GAAP consolidated earnings on a per share basis, Entergy reports its adjusted earnings on a per share basis. These per share measures represent the applicable earnings amount divided by the diluted average number of common shares outstanding for the period.
Management uses the non-GAAP financial measures of adjusted earnings and adjusted earnings per share for, among other things, financial planning and analysis; reporting financial results to the board of directors, employees, stockholders, analysts, and investors; and internal evaluation of financial performance. Entergy believes that these non-GAAP financial measures provide useful information to investors in evaluating the ongoing results of Entergy's business, comparing period to period results, and comparing Entergy's financial performance to the financial performance of other companies in the utility sector.
Other non-GAAP measures, including adjusted EBITDA; adjusted ROE; adjusted ROIC; gross liquidity; debt to capital, excluding securitization debt; net debt to net capital, excluding securitization debt; parent debt to total debt, excluding securitization debt; FFO; FFO to debt, excluding securitization debt; and FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC, are measures Entergy uses internally for management and board discussions and to gauge the overall strength of its business. Entergy believes the above data provides useful information to investors in evaluating Entergy's ongoing financial results and flexibility and assists investors in comparing Entergy's credit and liquidity to the credit and liquidity of others in the Utility sector. In addition, other financial measures including net income (or earnings), adjusted for preferred dividends and tax-effected interest expense; return on average invested capital; and return on average common equity are included on both an adjusted and an as-reported basis. In each case, the metrics defined as "adjusted" (other than EWC's adjusted EBITDA) excludes the effect of adjustments as defined above. EWC's adjusted EBITDA represents EWC's earnings before interest, taxes, and depreciation and amortization, and also excludes decommissioning expense.
These non-GAAP financial measures reflect an additional way of viewing aspects of Entergy's operations that, when viewed with Entergy's GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting Entergy's business. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. Investors are strongly encouraged to review Entergy's consolidated financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Although certain of these measures are intended to assist investors in comparing Entergy's performance to other companies in the utility sector, non-GAAP financial measures are not standardized; therefore, it might not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
Cautionary Note Regarding Forward-Looking Statements
In this news release, and from time to time, Entergy Corporation makes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, among other things, Entergy's 2020 earnings guidance; its current financial and operational outlooks; and other statements of Entergy's plans, beliefs, or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy's most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and Entergy's other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans, and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) risks associated with operating nuclear facilities, including plant relicensing, operating, and regulatory costs and risks; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning Entergy's nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with strategic transactions that Entergy or its subsidiaries may undertake, including the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state, or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental, or energy policies; (i) the effects of technological changes and changes in commodity markets, capital markets, or economic conditions; and (j) impacts from a terrorist attack, cybersecurity threats, data security breaches or other attempts to disrupt Entergy's business or operations, and other catastrophic events.
Fourth Quarter 2019 Earnings Release Appendices and Financial Statements
Appendices
Appendices are presented in this section as follows:
Financial Statements
Financial statements are presented in this section.
A: Consolidated Results and Adjustments
Appendix A-1 provides a comparative summary of consolidated earnings, including a reconciliation of as-reported earnings (GAAP) to adjusted earnings (non-GAAP).
Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures Fourth Quarter and Year-to-Date 2019 vs. 2018 (See Appendix A-3 and Appendix A-4 for details on adjustments) | ||||||
Fourth Quarter | Year-to-Date | |||||
2019 | 2018 | Change | 2019 | 2018 | Change | |
(After-tax, $ in millions) | ||||||
Earnings (loss) | ||||||
Utility | 271 | 388 | (117) | 1,411 | 1,483 | (73) |
Parent & Other | (103) | (81) | (22) | (316) | (292) | (24) |
EWC | 217 | (373) | 590 | 147 | (343) | 490 |
Consolidated | 385 | (66) | 451 | 1,241 | 849 | 393 |
Less adjustments | ||||||
Utility | 41 | 179 | (137) | 41 | 222 | (180) |
Parent & Other | (11) | - | (11) | (11) | - | (11) |
EWC | 217 | (373) | 590 | 147 | (343) | 490 |
Consolidated | 248 | (194) | 442 | 177 | (121) | 298 |
Adjusted earnings (loss) (non-GAAP) | ||||||
Utility | 229 | 209 | 20 | 1,369 | 1,262 | 108 |
Parent & Other | (92) | (81) | (11) | (305) | (292) | (14) |
EWC | - | - | - | - | - | - |
Consolidated | 137 | 128 | 9 | 1,064 | 970 | 94 |
Estimated weather in billed sales | 45 | 25 | 20 | 46 | 67 | (21) |
Diluted average number of common shares outstanding (in millions) | 201 | 183 | 197 | 183 | ||
(After-tax, per share in $) (a) | ||||||
Earnings (loss) | ||||||
Utility | 1.35 | 2.12 | (0.77) | 7.16 | 8.09 | (0.93) |
Parent & Other | (0.51) | (0.44) | (0.07) | (1.60) | (1.59) | (0.01) |
EWC | 1.08 | (2.04) | 3.12 | 0.74 | (1.87) | 2.61 |
Consolidated | 1.92 | (0.36) | 2.28 | 6.30 | 4.63 | 1.67 |
Less adjustments | ||||||
Utility | 0.21 | 0.98 | (0.77) | 0.21 | 1.21 | (1.00) |
Parent & Other | (0.05) | - | (0.05) | (0.05) | - | (0.05) |
EWC | 1.08 | (2.04) | 3.12 | 0.74 | (1.87) | 2.61 |
Consolidated | 1.24 | (1.06) | 2.30 | 0.90 | (0.66) | 1.56 |
Adjusted earnings (loss) (non-GAAP) | ||||||
Utility | 1.14 | 1.14 | - | 6.95 | 6.88 | 0.07 |
Parent & Other | (0.46) | (0.44) | (0.02) | (1.55) | (1.59) | 0.04 |
EWC | - | - | - | - | - | - |
Consolidated | 0.68 | 0.70 | (0.02) | 5.40 | 5.29 | 0.11 |
Estimated weather in billed sales | 0.22 | 0.13 | 0.09 | 0.23 | 0.37 | (0.14) |
Calculations may differ due to rounding | |
(a) | Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period. |
See Appendix B for detailed earnings variance analysis.
Appendix A-2 provides a comparative summary of OCF, by business.
Appendix A-2: Consolidated Operating Cash Flow | ||||||
Fourth Quarter and Year-to-Date 2019 vs. 2018 | ||||||
($ in millions) | ||||||
Fourth Quarter | Year-to-Date | |||||
2019 | 2018 | Change | 2019 | 2018 | Change | |
Utility | 677 | 699 | (22) | 2,974 | 2,693 | 281 |
Parent & Other | (21) | (20) | (1) | (237) | (234) | (3) |
EWC | 43 | (153) | 196 | 80 | (74) | 154 |
Consolidated | 699 | 526 | 173 | 2,817 | 2,385 | 432 |
Calculations may differ due to rounding |
OCF increased quarter-over-quarter due primarily to a lower amount of unprotected excess ADIT returned to customers at the Utility, as well as lower nuclear refueling outage spending and severance and retention payments at EWC. Higher pension contributions, largely at the Utility, partially offset the quarterly increase.
OCF increased year-over-year due primarily to a lower amount of unprotected excess ADIT returned to customers and increased collections for fuel and purchased power cost recovery at the Utility, as well as lower nuclear spending and asset retirement obligation spending at EWC. Lower revenues and higher severance and retention payments at EWC partially offset the annual increase.
For both the quarter and the full year, intercompany income tax payments contributed to the line of business variances.
Appendix A-3 and Appendix A-4 list adjustments by business. Amounts are shown on both an earnings and an EPS basis. Adjustments are included in as-reported earnings consistent with GAAP but are excluded from adjusted earnings. As a result, adjusted earnings is considered a non-GAAP measure.
Appendix A-3: Adjustments by Driver (shown as positive/(negative) impact on earnings or EPS) | ||||||
Fourth Quarter and Year-to-Date 2019 vs. 2018 | ||||||
(Pre-tax except for Income taxes, Preferred dividend requirements of subsidiaries, and Total; $ in millions) | ||||||
Fourth Quarter | Year-to-Date | |||||
2019 | 2018 | Change | 2019 | 2018 | Change | |
(Pre-tax except for income taxes, preferred dividend requirements of subsidiaries, and totals; $ in millions) | ||||||
Utility | ||||||
Customer sharing associated with internal restructuring | - | (40) | 40 | - | (40) | 40 |
Income tax effect on Utility adjustment above | - | 10 | (10) | - | 10 | (10) |
Income tax benefit from 2012 / 2013 IRS settlement | - | - | - | - | 43 | (43) |
Income tax benefit from internal restructuring | - | 170 | (170) | - | 170 | (170) |
Tax reform | - | 38 | (38) | - | 38 | (38) |
Reversal of income tax valuation allowance | 41 | - | 41 | 41 | - | 41 |
Total Utility | 41 | 179 | (137) | 41 | 222 | (180) |
Parent & Other | ||||||
Income tax item related to a valuation allowance for interest deductibility | (11) | - | (11) | (11) | - | (11) |
Total Parent & Other | (11) | - | (11) | (11) | - | (11) |
EWC | ||||||
Income before income taxes | 31 | (474) | 505 | (12) | (610) | 597 |
Income taxes | 187 | 102 | 85 | 161 | 269 | (108) |
Preferred dividend requirements of subsidiaries | (1) | (1) | - | (2) | (2) | - |
Total EWC | 217 | (373) | 590 | 147 | (343) | 490 |
Total adjustments | 248 | (194) | 442 | 177 | (121) | 298 |
(After-tax, per share in $) (b) | ||||||
Utility | ||||||
Customer sharing associated with internal restructuring | - | (0.16) | 0.16 | - | (0.16) | 0.16 |
Income tax benefit from 2012 / 2013 IRS settlement | - | - | - | - | 0.23 | (0.23) |
Income tax benefit from internal restructuring | - | 0.93 | (0.93) | - | 0.93 | (0.93) |
Tax reform | - | 0.21 | (0.21) | - | 0.21 | (0.21) |
Reversal of income tax valuation allowance | 0.21 | - | 0.21 | 0.21 | - | 0.21 |
Total Utility | 0.21 | 0.98 | (0.77) | 0.21 | 1.21 | (1.00) |
Parent & Other | ||||||
Income tax item related to a valuation allowance for interest deductibility | (0.05) | - | (0.05) | (0.05) | - | (0.05) |
Total Parent & Other | (0.05) | - | (0.05) | (0.05) | - | (0.05) |
EWC | ||||||
Total EWC | 1.08 | (2.04) | 3.12 | 0.74 | (1.87) | 2.61 |
Total adjustments | 1.24 | (1.06) | 2.30 | 0.90 | (0.66) | 1.56 |
Calculations may differ due to rounding | |
(b) | Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period. |
Appendix A-4: Adjustments by Income Statement Line Item (shown as positive/(negative) impact on earnings) | ||||||
Fourth Quarter and Year-to-Date 2019 vs. 2018 | ||||||
(Pre-tax except for Income taxes, Preferred dividend, and totals; $ in millions) | ||||||
Fourth Quarter | Year-to-Date | |||||
2019 | 2018 | Change | 2019 | 2018 | Change | |
Utility | ||||||
Other regulatory charges | - | (40) | 40 | - | (40) | 40 |
Income taxes | 41 | 219 | (177) | 41 | 261 | (220) |
Total Utility | 41 | 179 | (137) | 41 | 222 | (180) |
Parent & Other | ||||||
Income taxes | (11) | - | (11) | (11) | - | (11) |
Total Parent & Other | (11) | - | (11) | (11) | - | (11) |
EWC | ||||||
Operating revenues | 271 | 361 | (90) | 1,295 | 1,469 | (174) |
Fuel and fuel-related expenses | (22) | (19) | (2) | (98) | (77) | (21) |
Purchased power | (10) | (61) | 51 | (59) | (115) | 57 |
Nuclear refueling outage expense | (12) | (1) | (12) | (49) | (4) | (45) |
Other O&M | (165) | (208) | 43 | (678) | (808) | 130 |
Asset write-off and impairments | (2) | (235) | 234 | (290) | (532) | 242 |
Decommissioning expense | (49) | (64) | 15 | (237) | (239) | 2 |
Taxes other than income taxes | (15) | (21) | 6 | (60) | (78) | 18 |
Depreciation/amortization exp. | (34) | (34) | (1) | (148) | (150) | 2 |
Other income (deductions)–other | 74 | (185) | 259 | 340 | (42) | 382 |
Interest exp. and other charges | (5) | (8) | 3 | (29) | (34) | 5 |
Income taxes | 187 | 102 | 85 | 161 | 269 | (108) |
Preferred dividend | (1) | (1) | - | (2) | (2) | - |
Total EWC | 217 | (373) | 590 | 147 | (343) | 490 |
Total adjustments | 248 | (194) | 442 | 177 | (121) | 298 |
Calculations may differ due to rounding |
B: Earnings Variance Analysis
Appendix B-1 and Appendix B-2 provide details of current quarter and year-to-date 2019 versus 2018 as-reported and adjusted earnings variance analysis for Utility, Parent & Other, and EWC.
Appendix B-1: As-Reported and Adjusted Earnings Variance Analysis (c), (d) | ||||||||||
Fourth Quarter 2019 vs. 2018 | ||||||||||
(After-tax, per share in $) | ||||||||||
Utility | Parent & Other | EWC | Consolidated | |||||||
As- | Adjusted | As- | Adjusted | As- Reported | As- Reported | Adjusted | ||||
2018 earnings | 2.12 | 1.14 | (0.44) | (0.44) | (2.04) | (0.36) | 0.70 | |||
Operating revenue less: Fuel, fuel-related expenses and gas purchased for resale, Purchased power, and Regulatory charges (credits) | 0.54 | 0.38 | (e) | - | - | (0.18) | (f) | 0.36 | 0.38 | |
Nuclear refueling outage expense | (0.01) | (0.01) | - | - | (0.05) | (g) | (0.06) | (0.01) | ||
Other O&M | (0.06) | (0.06) | (h) | 0.01 | 0.01 | 0.18 | (i) | 0.13 | (0.05) | |
Asset write-offs and impairments | - | - | - | - | 1.01 | (j) | 1.01 | - | ||
Decommissioning expense | (0.02) | (0.02) | - | - | 0.07 | (k) | 0.05 | (0.02) | ||
Taxes other than income taxes | (0.02) | (0.02) | - | - | 0.03 | 0.01 | (0.02) | |||
Depreciation/amortization exp. | (0.13) | (0.13) | (l) | - | - | - | (0.13) | (0.13) | ||
Other income (deductions)–other | 0.05 | 0.05 | (m) | (0.06) | (0.06) | (n) | 1.11 | (o) | 1.10 | (0.01) |
Interest exp. and other charges | (0.06) | (0.06) | (p) | 0.01 | 0.01 | 0.01 | (0.04) | (0.05) | ||
Income taxes–other | (0.92) | 0.01 | (q) | (0.08) | (0.03) | (r) | 1.04 | (s) | 0.04 | (0.02) |
Preferred dividend requirements | (0.01) | (0.01) | - | - | - | (0.01) | (0.01) | |||
Share effect | (0.13) | (0.13) | (t) | 0.05 | 0.05 | (t) | (0.10) | (t) | (0.18) | (0.18) |
2019 earnings | 1.35 | 1.14 | (0.51) | (0.46) | 1.08 | 1.92 | 0.68 | |||
Appendix B-2: As-Reported and Adjusted Earnings Variance Analysis (c), (d) | |||||||||||
Year-to-Date 2019 vs. 2018 | |||||||||||
(After-tax, per share in $) | |||||||||||
Utility | Parent & Other | EWC | Consolidated | ||||||||
As- | Adjusted | As- | Adjusted | As- Reported | As- Reported | Adjusted | |||||
2018 earnings | 8.09 | 6.88 | (1.59) | (1.59) | (1.87) | 4.63 | 5.29 | ||||
Operating revenue less: Fuel, fuel-related expenses and gas purchased for resale, Purchased power, and Regulatory charges (credits) | 1.70 | 1.54 | (e) | - | - | (0.60) | (f) | 1.10 | 1.54 | ||
Nuclear refueling outage expense | (0.03) | (0.03) | - | - | (0.19) | (g) | (0.22) | (0.03) | |||
Other O&M | (0.25) | (0.25) | (h) | 0.02 | 0.02 | 0.56 | (i) | 0.33 | (0.23) | ||
Asset write-offs and impairments | - | - | - | - | 1.04 | (j) | 1.04 | - | |||
Decommissioning expense | (0.06) | (0.06) | (u) | - | - | 0.01 | (0.05) | (0.06) | |||
Taxes other than income taxes | (0.08) | (0.08) | (v) | 0.01 | 0.01 | 0.07 | (w) | - | (0.07) | ||
Depreciation/amortization exp. | (0.45) | (0.45) | (l) | (0.01) | (0.01) | 0.01 | (0.45) | (0.46) | |||
Other income (deductions)–other | 0.05 | 0.05 | (m) | (0.08) | (0.08) | (n) | 1.65 | (o) | 1.62 | (0.03) | |
Interest exp. and other charges | (0.15) | (0.15) | (p) | (0.01) | (0.01) | 0.02 | (0.14) | (0.16) | |||
Income taxes–other | (1.11) | 0.05 | (q) | (0.06) | (0.01) | (r) | 0.10 | (s) | (1.07) | 0.04 | |
Preferred dividend requirements | (0.02) | (0.02) | - | - | - | (0.02) | (0.02) | ||||
Share effect | (0.53) | (0.53) | (t) | 0.12 | 0.12 | (t) | (0.06) | (t) | (0.47) | (0.41) | |
2019 earnings | 7.16 | 6.95 | (1.60) | (1.55) | 0.74 | 6.30 | 5.40 | ||||
Calculations may differ due to rounding |
(c) | Utility operating revenue, Utility other O&M and Utility income taxes exclude $52 million, $3 million, and $55 million respectively in fourth quarter 2019 and $215 million, $0 million, and $215 million respectively in fourth quarter 2018 for the return of unprotected excess ADIT to customers (net effect is neutral to earnings). On a year-to-date basis, Utility operating revenue, Utility other O&M and Utility income taxes exclude $268 million, $6 million, and $274 million respectively in 2019 and $770 million, $6 million, and $776 million respectively in 2018 (net effect is neutral to earnings). |
(d) | EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply and dividing by diluted average number of common shares outstanding for the prior period; income taxes–other represents income tax differences other than the tax effect of individual line items. |
(e) | The fourth quarter and year-to-date earnings increases were primarily driven by rate activity from E-AR's FRP; E-LA's FRP, including recovery of the St. Charles Power Station; E-LA's AMI rider; E-MS's FRP; the recovery of the Choctaw Generating Station; and E-TX's base rate case. The variance also reflected three regulatory charges in fourth quarter 2018: first, a regulatory charge at E-TX to return the benefit of the lower federal tax rate to customers, second, regulatory provisions that lowered earnings into the allowed ranges at E-AR and E-MS as required by their FRPs, and third, a regulatory liability for tax sharing with E-AR customers (this partially offsets the income tax item discussed in footnote q). These increases were partially offset by the net effect of volume/weather. Fourth quarter 2019 results also reflected an accrual for the E-NO rate case decision, which is being appealed. The year-to-date increase also reflected 2018 regulatory charges at E-LA to return the benefit of the lower tax rate to customers. |
(f) | The fourth quarter and year-to-date earnings decreases were due largely to lower revenues from the shutdown of Pilgrim in May 2019, lower capacity prices, and impacts on fuel expense from EWC plant impairments. These were partially offset by higher energy volume from EWC's other nuclear plants. |
(g) | The fourth quarter and year-to-date earnings decreases from higher EWC nuclear refueling outage expense were due primarily to increased outage amortization at Palisades due to the plant no longer being impaired. |
(h) | The fourth quarter and year-to-date earnings decreases from higher Utility other O&M reflected higher spending on information technology, initiatives to explore new customer products and services, and compensation and benefits. Also contributing was the gain on a sale of an asset in fourth quarter 2018. This was partially offset by lower nuclear generation spending and from litigation awards from the DOE in connection with spent nuclear fuel storage costs. |
(i) | The fourth quarter and year-to-date earnings increases from lower EWC other O&M were due largely to a decrease in severance and retention expense, as well as the Pilgrim plant shutdown in May 2019. |
(j) | The fourth quarter and year-to-date earnings increases from lower EWC asset write-offs and impairments were due primarily to a revision of Vermont Yankee's ARO, partially offset by a gain on proceeds from the settlement of spent fuel litigation at Pilgrim, both in fourth quarter 2018. |
(k) | The fourth quarter earnings increase from lower EWC decommissioning expense was due to the Pilgrim plant sale in 2019. |
(l) | The fourth quarter and year-to-date earnings decreases from higher Utility depreciation expense were due primarily to higher plant in service, including the St. Charles Power Station, as well as higher new depreciation rates at E-MS and E-TX, partially offset by updated depreciation rates at SERI (offset in operating revenue). The year-to-date decrease also reflected a depreciation adjustment at SERI in the third quarter 2018 (offset in operating revenue). |
(m) | The fourth quarter earnings increase from higher Utility other income (deductions)–other was due largely to differences in decommissioning trust fund returns. Based on regulatory treatment, decommissioning-related variances are largely earnings neutral. The year-to-date earnings increase was due largely to an increase in the allowance for equity funds used during construction due to higher construction work in progress in 2019, which included the Lake Charles Power Station, Montgomery County Power Station, and New Orleans Power Station projects. |
(n) | The fourth quarter and year-to-date earnings decreases from lower Parent & Other other income (deductions)–other were due to the timing of a charitable contribution. |
(o) | The fourth quarter and year-to-date earnings increases from higher EWC other income (deductions)–other were due largely to higher gains on the decommissioning trust fund investments in 2019 as compared to 2018. The year-to-date increase was partially offset by a pension settlement charge in third quarter 2019 related to the exit of the EWC business. |
(p) | The fourth quarter and year-to-date earnings decreases from higher Utility interest expense were due primarily to higher debt balances at E-LA and E-AR. |
(q) | The fourth quarter and year-to-date as-reported earnings decreases from higher Utility income taxes reflected two fourth quarter 2018 tax items and one fourth quarter 2019 tax item, all classified as adjustments. In fourth quarter 2018, approximately $170 million resulting from the restructuring of E-AR (partly offset by customer sharing recorded as a regulatory charge) and $38 million related to the reversal of a tax accrual at E-TX were recorded. In the fourth quarter 2019, a $41 million income tax item was generated through the reversal of a valuation allowance generated as part of the 2018 internal restructuring. The year-to-date earnings decrease also reflected a $43 million income tax benefit which resulted from the settlement of the 2012 / 2013 IRS audit in second quarter 2018. |
(r) | The fourth quarter and year-to-date as-reported earnings decreases from higher Parent & Other income taxes related to a valuation allowance recorded on the expected interest limitation carryover. Approximately $11 million related to tax year 2018 (classified as an adjustment) and approximately $11 million related to tax year 2019. |
(s) | The fourth quarter and year-to-date earnings increases from lower EWC income taxes reflected three items from fourth quarter 2019. First, a restructuring within the EWC business resulted in a reduction in income tax expense of $156 million. Second, a donation to the State University of New York triggered the recognition of an associated tax deduction, resulting in a decrease to tax expense of $19 million. Third, an EWC subsidiary recognized a reduction in tax expense of $18 million. The year-to-date earnings increase was largely offset by three items from 2018 and one from 2019. First, there was $13 million in tax benefits from the settlement of the 2012 / 2013 IRS audit in second quarter 2018. Second, a restructuring of an interest in an EWC decommissioning trust fund resulted in a reduction in income tax expense of $107 million in third quarter 2018. Third, the conclusion of a state income tax audit resulted in a benefit of $23 million in third quarter 2018. Lastly, an accrual of $29 million of tax expense, which resulted from the sale of Vermont Yankee in January 2019 contributed to the year-to-date variance. |
(t) | The fourth quarter and year-to-date earnings per share impacts from share effect were due to settlement of the equity forward (6.8 million shares settled in December 2018 and 8.4 million shares settled in May 2019). |
(u) | The year-to-date earnings decrease from higher Utility decommissioning expense related to revisions to estimated decommissioning costs liabilities resulting from updated decommissioning cost studies at certain Utility nuclear plants. Based on regulatory treatment, decommissioning-related variances are largely earnings neutral. |
(v) | The year-to date earnings decrease from higher Utility taxes other than income taxes was primarily due to higher ad valorem taxes at E-AR and E-LA. |
(w) | The year-to-date earnings increase from lower EWC taxes other than income taxes was primarily due to lower ad valorem taxes due to a lower assessment at Palisades. |
Utility as-reported operating revenue less fuel, fuel- 2019 vs. 2018 ($ EPS) | ||
4Q | YTD | |
Volume/weather | (0.16) | (0.30) |
Retail electric price Reg. charges for lower tax rate | 0.36 0.10 | 1.22 0.40 |
Reg. provisions for E-AR and E-MS FRPs | 0.18 | 0.18 |
Reg. liability for tax sharing | 0.16 | 0.16 |
Other, including Grand Gulf recovery | (0.10) | 0.03 |
Total | 0.54 | 1.70 |
C: Utility Financial and Operating Measures
Appendix C-1 provides comparative summaries of Utility operating and financial measures.
Appendix C-1: Utility Operating and Financial Measures | ||||||||
Fourth Quarter and Year-to-Date 2019 vs. 2018 | ||||||||
Fourth Quarter | Year-to-Date | |||||||
2019 | 2018 | % Change | % Weather | 2019 | 2018 | % Change | % Weather | |
GWh billed | ||||||||
Residential | 8,344 | 8,250 | 1.1 | (1.2) | 36,094 | 37,107 | (2.7) | (1.2) |
Commercial | 6,991 | 7,026 | (0.5) | (2.2) | 28,755 | 29,426 | (2.3) | (1.9) |
Governmental | 647 | 646 | 0.2 | (0.3) | 2,579 | 2,581 | (0.1) | (0.2) |
Industrial | 11,974 | 11,882 | 0.8 | 0.8 | 48,483 | 48,384 | 0.2 | 0.2 |
Total retail sales | 27,956 | 27,804 | 0.5 | (0.6) | 115,911 | 117,498 | (1.4) | (0.8) |
Wholesale | 3,201 | 2,927 | 9.4 | 13,210 | 11,715 | 12.8 | ||
Total sales | 31,157 | 30,731 | 1.4 | 129,121 | 129,213 | (0.1) | ||
Number of electric retail customers | ||||||||
Residential | 2,500,736 | 2,481,027 | 0.8 | |||||
Commercial | 359,395 | 356,618 | 0.8 | |||||
Governmental | 17,768 | 17,839 | (0.4) | |||||
Industrial | 45,320 | 45,790 | (1.0) | |||||
Total retail customers | 2,923,219 | 2,901,274 | 0.8 | |||||
Other O&M and refueling outage expense per MWh | 22.70 | 22.36 | 1.5 | 21.06 | 20.52 | 2.6 | ||
Calculations may differ due to rounding | |
(x) | The effects of weather were estimated using heating degree days and cooling degree days for the billing cycles from certain locations within each jurisdiction and comparing to "normal" weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change. |
On a weather-adjusted basis for fourth quarter 2019, retail billed sales decreased (0.6) percent. Residential billed sales decreased (1.2) percent primarily due to fewer days billed compared to a year ago. Commercial billed sales decreased (2.2) percent driven by the continued impact of energy efficiency. Industrial billed sales volume increased 0.8 percent driven by continued growth from new/expansion customers, partially offset by lower sales to cogeneration customers.
On a weather-adjusted basis for full year 2019, retail billed sales decreased (0.8) percent. Residential and commercial billed sales decreased (1.2) and (1.9) percent respectively, driven by the continued impact of energy efficiency. Fewer days billed also contributed to the residential billed sales decrease. Industrial billed sales volume increased 0.2 percent driven by continued growth from new/expansion customers, partially offset by lower sales to cogeneration customers.
D: EWC Financial and Operating Measures
Appendix D-1 provides a comparative summary of EWC adjusted EBITDA (non-GAAP).
Appendix D-1: EWC Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures Fourth Quarter and Year-to-Date 2019 vs. 2018 | ||||||
($ in millions) | Fourth Quarter | Year-to-Date | ||||
2019 | 2018 | Change | 2019 | 2018 | Change | |
Net income (loss) | 218 | (372) | 590 | 149 | (341) | 490 |
Add back: interest expense | 5 | 8 | (3) | 29 | 34 | (5) |
Add back: income taxes | (187) | (102) | (85) | (161) | (269) | 108 |
Add back: depreciation and amortization | 34 | 34 | - | 148 | 150 | (2) |
Subtract: interest and investment income | 99 | (169) | 268 | 415 | 15 | 400 |
Add back: decommissioning expense | 49 | 64 | (15) | 237 | 239 | (2) |
Adjusted EBITDA (non-GAAP) | 20 | (199) | 219 | (13) | (202) | 189 |
Calculations may differ due to rounding |
Appendix D-2 provides a comparative summary of EWC operating and financial measures.
Appendix D-2: EWC Operating and Financial Measures | ||||||
Fourth Quarter and Year-to-Date 2019 vs. 2018 | ||||||
Fourth Quarter | Year-to-Date | |||||
2019 | 2018 | % Change | 2019 | 2018 | % Change | |
Owned capacity (MW) (y) | 3,274 | 3,962 | (17.4) | 3,274 | 3,962 | (17.4) |
GWh billed | 6,780 | 8,022 | (15.5) | 28,088 | 29,875 | (6.0) |
EWC Nuclear Fleet | ||||||
Capacity factor | 99% | 78% | 26.9 | 93% | 84% | 10.7 |
GWh billed | 6,326 | 7,520 | (15.9) | 25,928 | 27,617 | (6.1) |
Production cost per MWh | $17.71 | $18.79 | (5.7) | $18.29 | $17.68 | 3.5 |
Average energy/capacity revenue per MWh | $35.73 | $48.97 | (27.0) | $43.88 | $49.13 | (10.7) |
Refueling outage days | ||||||
Indian Point 2 | - | - | - | 33 | ||
Indian Point 3 | - | - | 29 | - | ||
Palisades | - | 61 | - | 61 | ||
Calculations may differ due to rounding | |
(y) | Fourth quarter and year-to-date 2019 exclude Pilgrim (688MW), which was shut down May 31, 2019 and sold August 26, 2019. |
See the appendix in the webcast slide presentation for EWC hedging and price disclosures.
E: Consolidated Financial Measures
Appendix E provides comparative financial measures. Financial measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP financial measures.
Appendix E: GAAP and Non-GAAP Financial Measures | |||
Fourth Quarter 2019 vs. 2018 (See Appendix G for reconciliation of GAAP to non-GAAP financial measures) | |||
For 12 months ending December 31 | 2019 | 2018 | Change |
GAAP Measures | |||
As-reported ROIC | 6.3% | 5.3% | 1.0% |
As-reported ROE | 13.0% | 10.1% | 2.9% |
Non-GAAP Measures | |||
Adjusted ROIC | 5.6% | 5.7% | (0.1)% |
Adjusted ROE | 11.2% | 11.5% | (0.3)% |
As of December 31 ($ in millions) | 2019 | 2018 | Change |
GAAP Measures | |||
Cash and cash equivalents | 426 | 481 | (55) |
Revolver capacity | 3,810 | 4,056 | (246) |
Commercial paper | 1,947 | 1,942 | 5 |
Total debt | 19,885 | 18,133 | 1,752 |
Securitization debt | 298 | 424 | (126) |
Debt to capital | 65.5% | 66.7% | (1.2)% |
Off-balance sheet liabilities: | |||
Debt of joint ventures – Entergy's share | 54 | 61 | (7) |
Leases – Entergy's share (z) | - | 448 | (448) |
Power purchase agreements accounted for as leases (z) | - | 106 | (106) |
Total off-balance sheet liabilities | 54 | 615 | (561) |
Non-GAAP Measures | |||
Debt to capital, excluding securitization debt | 65.1% | 66.1% | (1.0)% |
Gross liquidity | 4,236 | 4,537 | (301) |
Net debt to net capital, excluding securitization debt | 64.6% | 65.5% | (0.9)% |
Parent debt to total debt, excluding securitization debt | 21.6% | 22.6% | (1.0)% |
FFO to debt, excluding securitization debt | 14.6% | 11.7% | 2.9% |
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC | 16.8% | 15.3% | 1.5% |
Calculations may differ due to rounding | |
(z) | As of January 1, 2019, Entergy adopted Financial Accounting Standards Board Accounting Standards Codification 842, the new lease accounting standard. As a result, Entergy re-evaluated all agreements and put all agreements that qualified as operating leases on the balance sheet, and there are no longer any off-balance sheet liabilities for leases. |
F: Definitions and Abbreviations and Acronyms
Appendix F-1 provides definitions of certain operating measures, as well as GAAP and non-GAAP financial measures.
Appendix F-1: Definitions | |
Utility Financial and Operating Measures | |
GWh billed | Total number of GWh billed to retail and wholesale customers |
Other O&M and refueling outage expense per MWh | Other operation and maintenance expense plus nuclear refueling outage expense per MWh of billed sales |
Number of electric retail customers | Number of electric customers at the end of the period |
EWC Financial and Operating Measures | |
Adjusted EBITDA (non-GAAP) | Earnings before interest, income taxes, and depreciation and amortization, and excluding decommissioning expense |
Average revenue under contract per kW-month (applies to capacity contracts only) | Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and/or auction awards |
Average revenue per MWh on contracted volumes | Revenue on a per unit basis at which generation output reflected in contracts is expected to be sold to third parties (including offsetting positions) at the minimum contract prices and at forward market prices at a point in time, given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market PPA for Palisades. Revenue will fluctuate due to factors including positive or negative basis differentials and other risk management costs |
Bundled capacity and energy contracts | A contract for the sale of installed capacity and related energy, priced per MWh sold |
Capacity contracts | A contract for the sale of the installed capacity product in regional markets managed by NYISO and MISO |
Capacity factor | Normalized percentage of the period that the nuclear plants generate power |
Expected sold and market total revenue per MWh | Total energy and capacity revenue on a per unit basis at which total planned generation output and capacity is expected to be sold given contract terms and market prices at a point in time, including positive or negative basis differentials and other risk management costs, divided by total planned MWh of generation, excluding the revenue associated with the amortization of the Palisades below-market PPA |
Appendix F-1: Definitions (continued) | ||
EWC Financial and Operating Measures (continued) | ||
GWh billed | Total number of GWh billed to customers and financially-settled instruments | |
Owned capacity (MW) | Installed capacity owned by EWC | |
Percent of capacity sold forward | Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions | |
Percent of planned generation under contract | Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts, or options that mitigate price uncertainty that may or may not require regulatory approval or approval of transmission rights or other conditions precedent; positions that are no longer classified as hedges are netted in the planned generation under contract | |
Planned net MW in operation | Amount of installed capacity to generate power and/or sell capacity, assuming intent to shutdown Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021), and Palisades (May 31, 2022) | |
Planned TWh of generation | Amount of output expected to be generated by EWC resources considering plant operating characteristics and outage schedules, assuming intent to shutdown Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021), and Palisades (May 31, 2022) | |
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) | |
Refueling outage days | Number of days lost for a scheduled refueling and maintenance outage during the period | |
Unit-contingent | Transaction under which power is supplied from a specific generation asset; if the asset is in operational outage, seller is generally not liable to buyer for any damages, unless the contract specifies certain conditions such as an availability guarantee | |
Financial Measures – GAAP | ||
As-reported ROE | 12-months rolling net income attributable to Entergy Corporation divided by average common equity | |
As-reported ROIC | 12-months rolling net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital | |
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 | |
Leases – Entergy's share | Operating leases held by subsidiaries capitalized at implicit interest rate | |
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 capital leases on the balance sheet | |
Appendix F-1: Definitions (continued) | |
Financial Measures - Non-GAAP | |
Adjusted EPS | As-reported EPS excluding adjustments |
Adjusted ROE | 12-months rolling adjusted net income attributable to Entergy Corporation divided by average common equity |
Adjusted ROIC | 12-months rolling adjusted net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital |
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 adjusted FFO as a percentage of end of period total debt excluding securitization debt |
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC | 12-months rolling adjusted FFO excluding return of unprotected excess ADIT and severance and retention payments associated with exit of EWC as a percentage of end of period total debt excluding securitization debt |
Gross liquidity | Sum of cash and revolver capacity |
Net debt to net capital, excluding securitization debt | Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt |
Parent debt to total debt, excluding securitization debt | End of period Entergy Corporation debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of consolidated total debt, excluding 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 | ISO | Independent system operator |
AFUDC – | Allowance for borrowed funds used during construction | LCPS | Lake Charles Power Station (CCGT) |
ALJ | Administrative law judge | LPSC | Louisiana Public Service Commission |
AMI | Advanced metering infrastructure | LTM | Last twelve months |
ANO | Units 1 and 2 of Arkansas Nuclear One owned by E-AR (nuclear) | MCPS | Montgomery County Power Station (CCGT) |
APSC | Arkansas Public Service Commission | MISO | Midcontinent Independent System Operator, Inc. |
ARO | Asset retirement obligation | Moody's | Moody's Investor Service |
bps | Basis points | MPSC | Mississippi Public Service Commission |
CCGT | Combined cycle gas turbine | MTEP | MISO Transmission Expansion Plan |
CCN | Certificate of convenience and necessity | Nelson 6 | Unit 6 of Roy S. Nelson plant (coal) |
CCNO | Council of the City of New Orleans | NDT | Nuclear decommissioning trust |
Choctaw | Choctaw County Generating Station (CCGT) | NOPS | New Orleans Power Station |
COD | Commercial operation date | NRC | U.S. Nuclear Regulatory Commission |
CT | Simple cycle combustion turbine | NY PSC | New York Public Service Commission |
CWIP | Construction work in progress | NYISO | New York Independent System Operator, Inc. |
DCRF | Distribution cost recovery factor | NYSE | New York Stock Exchange |
DOE | U.S. Department of Energy | OCF | Net cash flow provided by operating activities |
E-AR | Entergy Arkansas, LLC | OpCo | Utility operating company |
E-LA | Entergy Louisiana, LLC | OPEB | Other post-employment benefits |
E-MS | Entergy Mississippi, LLC | Other O&M | Other non-fuel operation and maintenance expense |
E-NO | Entergy New Orleans, LLC | P&O | Parent & Other |
E-TX | Entergy Texas, Inc. | Palisades | Palisades Power Plant (nuclear) |
EBITDA | Earnings before interest, income taxes, and depreciation and amortization | Pilgrim | Pilgrim Nuclear Power Station (nuclear, sold August 26, 2019) |
ENP | Entergy Nuclear Palisades, LLC | PMR | Performance Management Rider |
EPS | Earnings per share | PPA | Power purchase agreement or purchased power agreement |
ETR | Entergy Corporation | PSC | Public service commission |
EWC | Entergy Wholesale Commodities | PUCT | Public Utility Commission of Texas |
FERC | Federal Energy Regulatory Commission | RICE | Reciprocating internal combustion engine |
FFO | Funds from operations | RFP | Request for proposals |
FRP | Formula rate plan | ROE | Return on equity |
GAAP | U.S. generally accepted accounting principles | ROIC | Return on invested capital |
Grand Gulf or GGNS | Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by SERI | RS Cogen | RS Cogen facility (CCGT cogeneration) |
Indian Point 1 | Indian Point Energy Center Unit 1 (nuclear) | RSP | Rate Stabilization Plan (E-LA Gas) |
Indian Point 2 | Indian Point Energy Center Unit 2 (nuclear) | S&P | Standard & Poor's |
Indian Point 3 | Indian Point Energy Center Unit 3 (nuclear) | SCPS | St. Charles Power Station (CCGT) |
IPEC | Indian Point Energy Center (nuclear) | SEC | U.S. Securities and Exchange Commission |
ISES 2 | Unit 2 of Independence Steam Electric Station | SERI | System Energy Resources, Inc. |
IRS | Internal Revenue Service | TCRF | Transmission cost recovery factor |
UPSA | Unit Power Sales Agreement | ||
Vermont | Vermont Yankee Nuclear Power Station (nuclear, sold January 11, 2019) | ||
WACC | Weighted-average cost of capital | ||
WPEC | Washington Parish Energy Center | ||
G: Other GAAP to Non-GAAP Reconciliations
Appendix G-1 and Appendix G-2 provide reconciliations of various non-GAAP financial measures disclosed in this news release to their most comparable GAAP measure.
Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures - ROIC, ROE | |||
($ in millions except where noted) | Fourth Quarter | ||
2019 | 2018 | ||
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months | (A) | 1,241 | 849 |
Preferred dividends | 17 | 14 | |
Tax-effected interest expense | 554 | 527 | |
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months adjusted for preferred dividends and tax-effected interest expense | (B) | 1,812 | 1,390 |
Adjustments in prior three quarters | (70) | 73 | |
Adjustments in current quarter | 248 | (194) | |
Total adjustments, last 12 months | (C) | 177 | (121) |
EWC preferred dividends and tax-effected interest expense, rolling 12 months | 25 | 29 | |
Total adjustments, adding back EWC preferred dividends and tax-effected interest expense (non-GAAP) | (D) | 202 | (92) |
Adjusted earnings, rolling 12 months (non-GAAP) | (A-C) | 1,064 | 970 |
Adjusted earnings, rolling 12 months including preferred dividends and tax- effected interest expense (non-GAAP) | (B-D) | 1,610 | 1,482 |
Average invested capital | (E) | 28,780 | 26,032 |
Average common equity | (F) | 9,534 | 8,418 |
As-reported ROIC | (B/E) | 6.3% | 5.3% |
Adjusted ROIC (non-GAAP) | [(B-D)/E] | 5.6% | 5.7% |
As-reported ROE | (A/F) | 13.0% | 10.1% |
Adjusted ROE (non-GAAP) | [(A-C)/F] | 11.2% | 11.5% |
Calculations may differ due to rounding |
Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures – Debt Ratios excluding Securitization Debt; Gross Liquidity; FFO to Debt, excluding Securitization Debt; FFO to Debt, excluding Securitization Debt, Return of Unprotected Excess ADIT, and Severance and Retention Payments Associated with Exit of EWC | |||
($ in millions except where noted) | Fourth Quarter | ||
2019 | 2018 | ||
Total debt | (A) | 19,885 | 18,133 |
Less securitization debt | (B) | 298 | 424 |
Total debt, excluding securitization debt | (C) | 19,587 | 17,709 |
Less cash and cash equivalents | (D) | 426 | 481 |
Net debt, excluding securitization debt | (E) | 19,161 | 17,228 |
Total capitalization | (F) | 30,363 | 27,196 |
Less securitization debt | (B) | 298 | 424 |
Total capitalization, excluding securitization debt | (G) | 30,065 | 26,772 |
Less cash and cash equivalents | (D) | 426 | 481 |
Net capital, excluding securitization debt | (H) | 29,639 | 26,291 |
Debt to capital | (A/F) | 65.5% | 66.7% |
Debt to capital, excluding securitization debt (non-GAAP) | (C/G) | 65.1% | 66.1% |
Net debt to net capital, excluding securitization debt (non-GAAP) | (E/H) | 64.6% | 65.5% |
Revolver capacity | (I) | 3,810 | 4,056 |
Gross liquidity (non-GAAP) | (D+I) | 4,236 | 4,537 |
Entergy Corporation notes: | |||
Due September 2020 | 450 | 450 | |
Due July 2022 | 650 | 650 | |
Due September 2026 | 750 | 750 | |
Total parent long-term debt | (J) | 1,850 | 1,850 |
Revolver draw | (K) | 440 | 220 |
Commercial paper | (L) | 1,947 | 1,942 |
Unamortized debt issuance costs and discounts | (M) | (8) | (10) |
Total parent debt | (J+K+L+M) | 4,229 | 4,002 |
Parent debt to total debt, excluding securitization debt (non-GAAP) | [(J+K+L+M)/C] | 21.6% | 22.6% |
Calculations may differ due to rounding |
Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures – Debt Ratios excluding Securitization Debt; Gross Liquidity; FFO to Debt, excluding Securitization Debt; FFO to Debt, excluding Securitization Debt, Return of Unprotected Excess ADIT, and Severance and Retention Payments Associated with Exit of EWC (continued) | |||
($ in millions except where noted) | Fourth Quarter | ||
2019 | 2018 | ||
Total debt | (A) | 19,885 | 18,133 |
Less securitization debt | (B) | 298 | 424 |
Total debt, excluding securitization debt | (C) | 19,587 | 17,709 |
Net cash flow provided by operating activities, rolling 12 months | (D) | 2,817 | 2,385 |
AFUDC – borrowed funds, rolling 12 months | (E) | (65) | (61) |
Working capital items in net cash flow provided by operating activities (rolling 12 months): | |||
Receivables | (101) | 99 | |
Fuel inventory | (28) | 46 | |
Accounts payable | (72) | 97 | |
Taxes accrued | (21) | 39 | |
Interest accrued | 1 | 5 | |
Other working capital accounts | (3) | (164) | |
Securitization regulatory charges | 122 | 124 | |
Total | (F) | (102) | 246 |
FFO, rolling 12 months (non-GAAP) | (G)=(D+E-F) | 2,854 | 2,079 |
FFO to debt, excluding securitization debt (non-GAAP) | (G/C) | 14.6% | 11.7% |
Estimated return of unprotected excess ADIT (rolling 12 months) | (H) | 301 | 592 |
Severance and retention payments associated with exit of EWC (rolling 12 months pre-tax) | (I) | 141 | 43 |
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC (non-GAAP) | [(G+H+I)/(C)] | 16.8% | 15.3% |
Calculations may differ due to rounding |
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SOURCE Entergy Corporation
Article Date
2/19/2020Entergy Announces Fourth Quarter Earnings Conference Call
Source: PR Newswire
NEW ORLEANS, Feb. 12, 2020 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) will report fourth quarter earnings results before market open on Wednesday, Feb. 19, 2020, and host a teleconference at 10:00 a.m. CT that day to discuss the earnings announcement and the company's financial performance. The teleconference may be accessed by dialing 844-309-6569, conference ID 1253867, no more than 15 minutes prior to the start of the call or by visiting Entergy's website at entergy.com. From time to time, Entergy posts new and/or revised materials on its website and on social media, and anticipates doing so in connection with this event. The presentation slides will be available on Entergy's website before market open on the day of the call. A replay of the teleconference will be available until February 26, 2020, by dialing 855-859-2056, conference ID 1253867.
About Entergy Corporation
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,500 employees.
Additional investor information can be accessed at entergy.com/investor_relations
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SOURCE Entergy Corporation
Article Date
2/12/2020Entergy Announces Quarterly Dividend Payment to Shareholders
Source: PR Newswire
NEW ORLEANS, Jan. 31, 2020 /PRNewswire/ -- The board of directors of Entergy Corporation (NYSE: ETR) has approved a quarterly dividend payment of $0.93 per share on the company's common stock. The dividend is payable March 2, 2020, to shareholders of record as of Feb. 13, 2020.
Entergy has paid a common stock dividend to shareholders continuously since 1988.
About Entergy Corporation
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,500 employees.
entergy.com
facebook.com/entergy
Twitter: @Entergy
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SOURCE Entergy Corporation
Article Date
1/31/2020Kathryn Collins Named Entergy Chief Human Resources Officer
Source: PR Newswire
NEW ORLEANS, Jan. 16, 2020 /PRNewswire/ -- Kathryn Collins has been named senior vice president and chief human resources officer for Entergy Corporation (NYSE: ETR) effective Jan. 20. Collins will report to Entergy Chairman and CEO Leo Denault and will serve as a member of the company's Office of the Chief Executive.
"At this crucial time when the utility industry is in a state of constant change, never before in our company's history has it been more important for us to maximize opportunities to attract, develop and retain a workforce fully capable of addressing the opportunities ahead," said Denault. "Kathryn's diverse background, as well as her innovative, creative and high-energy approach to work, make her ideally suited to lead Entergy's human resources strategy and culture transformation."
In this role, Collins will oversee all aspects of Entergy's human resources strategy, which encompasses talent management, total rewards (compensation and benefits), labor relations, organizational health and diversity, and HR business partnership.
Collins brings to Entergy more than 30 years of strategic leadership experience spanning human resources, talent acquisition, HR systems, diversity and inclusion, organizational effectiveness and communications.
She began her career as an industrial engineer with Texas Instruments before moving to the human resources discipline to lead talent and organizational effectiveness programs. While at Texas Instruments, she further diversified her career experience by serving as a director within the communications function.
Collins later moved to JCPenney to serve as vice president of talent acquisition, inclusion and diversity. There she led the employment brand strategy for recruitment and retention and designed organizational structures and workflows for strategic initiatives during a period of transformation.
Over her career, she has served in various HR leadership roles with increasing strategic responsibility within companies with both national and global presence. She served as vice president of talent management and human resources systems at RealPage, a technology provider in the real estate industry.
At Trinity Industries, a premier provider of railcar products and services, she served as vice president of corporate human resources leading talent acquisition, total rewards, HR systems, talent management, and employee relations functions.
Her most recent role was chief human resources officer for Arcosa, which was formed by Trinity's spin-off of their infrastructure-related business units into a standalone publicly traded company serving construction, energy and transportation markets.
Collins holds a bachelor's degree in industrial engineering from The University of Texas at Arlington, an MBA in industrial management from the University of Dallas, and a master's degree in organizational development and change management from the University of Texas at Dallas.
About Entergy Corporation
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,500 employees.
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Twitter: @Entergy
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SOURCE Entergy Corporation
Article Date
1/16/2020Entergy Utility Customers Realize Significant Benefits After 5 Years as MISO Member
Source: PR Newswire
NEW ORLEANS, Dec. 16, 2019 /PRNewswire/ -- Customers have saved approximately $1.3 billion on electric bills since the utility subsidiaries of Entergy Corporation (NYSE: ETR) became members of Midcontinent Independent System Operator, a regional transmission organization.
The estimated $1.3 billion in savings realized between 2014 and 2018 is largely because, through participation in MISO, Entergy is part of a large pool of generating facilities that stretch across the vast MISO footprint. By sharing in that large pool, Entergy can maintain reliability with less power generation capacity than if it were on its own – and pass the resulting savings along to customers. In addition, because MISO dispatches a large pool of generation to serve the needs of all customers in its footprint, the dispatch is more efficient, resulting in a lower delivered cost of energy and long-term benefits for customers.
"When we proposed joining MISO, we told our customers this would be a good business decision that would benefit them each month. We believe we have made good on that promise," said Rod West, utility group president. "Our membership in MISO has been a highly effective tool in helping our customers keep more of their hard-earned money in their pockets. It has also helped us control costs and keep our rates among the lowest in the nation. Since joining MISO five years ago, Entergy customers have saved an average of $261 million per year. These are real savings for our customers."
Operating Company | Customer Savings (2014-2018) |
$223 million | |
$561 million | |
$207 million | |
$118 million | |
$198 million | |
TOTAL | $1.3 billion |
Entergy customers enjoy some of the lowest electricity rates in the country. Entergy's residential rates are 14% below the regional and 27% below the national average, according to data compiled by the U.S. Energy Information Administration for 2018.
MISO manages the flow of electricity on the transmission grid, facilitates the planning of new transmission facilities and operates markets for the purchase and sale of wholesale energy and other products. Its market footprint stretches from Canada to the Gulf of Mexico.
About Entergy Corporation
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,500 employees.
entergy.com
Twitter: @Entergy
Facebook: facebook.com/entergy
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SOURCE Entergy Corporation
Article Date
12/16/201912/2/2019 - Entergy Arkansas, NextEra Energy Resources announce groundbreaking of Arkansas' largest solar energy project
Entergy Arkansas, NextEra Energy Resources announce groundbreaking of Arkansas' largest solar energy project
Source: PR Newswire
LAKE VILLAGE, Ark., Dec. 2, 2019 /PRNewswire/ -- A subsidiary of NextEra Energy Resources (NYSE: NEE) and Entergy Arkansas (NYSE: ETR) today announced the start of construction of Arkansas' largest universal, utility-scale solar energy project – the Chicot Solar Energy Center. The Chicot Solar Energy Center, when complete, will be bigger than the Stuttgart Solar Energy Center, which came online in 2018 as the state's largest universal solar energy project at that time.
"We are pleased that Entergy Arkansas and NextEra Energy Resources have partnered together to bring more solar power to the state," said Arkansas Governor Asa Hutchinson. "Utility-scale solar keeps electric rates low, and the clean, renewable energy it provides can be a catalyst for economic growth. This project is great for Southeast Arkansas and is yet another reason our future looks bright in the Natural State."
"Entergy Arkansas is already the largest solar provider in the state, and this project allows us to increase what we can provide for our customers," said Laura Landreaux, president and CEO of Entergy Arkansas. "Large-scale, universal solar allows us to provide the benefits of renewable energy to all of our 700,000 customers at an economic price."
The Chicot Solar Energy Center will span approximately 825 acres, near Lake Village in Chicot County. Construction will last approximately 11 months. Once complete, the facility will feature approximately 350,000 photovoltaic solar panels that convert the sun's energy into electricity. The solar energy center will have a capacity to generate 100 megawatts of electricity, or enough to power more than 18,000 homes. A subsidiary of NextEra Energy Resources is developing the project and will build, own and operate it. The energy will serve Entergy Arkansas customers under a 20-year power purchase agreement.
"This project will bring good jobs, tax benefits and affordable, renewable energy to the state for decades to come," said John Ketchum, president and CEO of NextEra Energy Resources. "We are pleased to continue to work with our partners at Entergy Arkansas to bring economic, renewable energy to customers and introduce another universal solar project of this scale in Arkansas."
The project will create a significant economic boost for Chicot County, creating up to 150 jobs during the construction phase. From labor and materials, to housing, health care and construction - a wide variety of local businesses will benefit from the influx of economic activity.
"The availability of cost-effective renewable energy resources provides an excellent economic development tool as we work to attract and retain businesses to Arkansas. The construction of this utility-scale solar project will employ a number of individuals and will spur economic activity during construction," said Mike Preston, the Secretary of the Arkansas Department of Commerce. "Low electricity rates are a significant benefit to economic development in Arkansas, and the solar facility in Chicot County will be an excellent addition to the state's electric generation resources."
Over its operational life, the Chicot Solar Energy Center is expected to generate nearly $7 million in additional revenue for Chicot County, with much of that funding going to help Chicot County Public Schools.
NextEra Energy Resources
NextEra Energy Resources, LLC (together with its affiliated entities, "NextEra Energy Resources"), is a clean energy leader and is one of the largest wholesale generators of electric power in the U.S., with approximately 21,000 megawatts of net generating capacity, primarily in 36 states and Canada as of year-end 2018. NextEra Energy Resources, together with its affiliated entities, is the world's largest generator of renewable energy from the wind and sun and a world leader in battery storage. The business operates clean, emissions-free nuclear power generation facilities in New Hampshire, Iowa and Wisconsin as part of the NextEra Energy nuclear fleet, which is one of the largest in the United States. NextEra Energy Resources, LLC is a subsidiary of Juno Beach, Florida-based NextEra Energy, Inc. (NYSE: NEE). For more information, visit www.NextEraEnergyResources.com.
Entergy Arkansas
Entergy Arkansas provides electricity to approximately 700,000 customers in 63 counties. Entergy Arkansas is a subsidiary of Entergy Corporation (NYSE: ETR), an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,500 employees.
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SOURCE Entergy Corporation
Article Date
12/2/201911/26/2019 - Entergy Corporation Inducted in Corporate Citizenship Hall of Fame by the US Chamber of Commerce Foundation
Entergy Corporation Inducted in Corporate Citizenship Hall of Fame by the US Chamber of Commerce Foundation
Source: PR Newswire
NEW ORLEANS, Nov. 26, 2019 /PRNewswire/ -- The U.S. Chamber of Commerce Foundation Corporate Citizenship Center recognized Entergy Corporation as a Corporate Citizenship Hall of Fame inductee at the 2019 Citizens Awards. This year marks the 20th anniversary of the annual awards program, which recognizes the most innovative and impactful corporate citizenship initiatives raising the bar on social responsibility and spearheading the transformation to a strong, healthy and sustainable future.
"Entergy has a long legacy of committing itself to creating healthy, vibrant communities through volunteer service, philanthropy and advocacy," said Mike Twomey, Entergy's senior vice president, federal policy, regulatory and government affairs. "We view corporate responsibility as a business imperative. Collectively, our shareholders, employees and customers each year donate nearly $18 million to more than 2,000 organizations that focus on poverty solutions, education and workforce development, environmental programming and more. We thank the Chamber for this prestigious honor."
Established this year to commemorate the 20th Annual Citizens Awards, the Corporate Citizenship Hall of Fame documents the living history of corporate philanthropy and social responsibility. The Hall of Fame recognizes companies and their leaders, employees, and cross-sector partners who have made extraordinary contributions for the betterment of society and brought about a new era where purpose is the foundation for progress.
"Entergy is committed to bringing increased prosperity to the communities it serves," said Marc DeCourcey, senior vice president of the U.S. Chamber of Commerce Foundation. "Their continued social and environmental impact around the world shows exactly why they deserve a place in the inaugural Corporate Citizenship Hall of Fame."
For more than 100 years, Entergy has powered life across Arkansas, Louisiana, Mississippi and Texas communities through strategic philanthropy, volunteerism and advocacy. Entergy's corporate social responsibility initiatives help create and sustain thriving communities, position the company for sustainable growth and are aligned with the United Nations Sustainable Development Goals. The company's top CSR priorities are education/workforce development, poverty solutions/social services and environmental programs.
Earlier this year, Entergy received national recognition by Points of Light, the world's largest organization dedicated to volunteer service, for being named a recipient of The Civic 50 award for the fourth consecutive year. And in September, Entergy was just one of four U.S. electric utilities named to the Dow Jones Sustainability Index as one of North America's most responsible electric service providers for the 18th consecutive year.
The U.S. Chamber Foundation announced the Corporate Citizenship Hall of Fame inductees, including UPS, Cisco, DSM, Merck, and GSK (GlaxoSmithKline), on Nov 14 at a ceremony in Washington, D.C. Learn more about the awards program here.
About Entergy Corporation
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,500 employees.
About Corporate Citizenship Center
The U.S. Chamber of Commerce Foundation Corporate Citizenship Center is a leading resource for businesses dedicated to making a difference. For nearly 20 years, our programs, events, research, and relationships with key NGO and governments have helped businesses make the world a better place.
About U.S. Chamber of Commerce Foundation
The U.S. Chamber of Commerce Foundation is dedicated to strengthening America's long-term competitiveness. We educate the public on the conditions necessary for business and communities to thrive, how business positively impacts communities, and emerging issues and creative solutions that will shape the future.
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Twitter: @Entergy
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SOURCE Entergy Corporation
Article Date
11/26/2019Entergy and Holtec File Request to Transfer Indian Point Post-Shutdown, Holtec to Complete Decommissioning Decades Sooner than Entergy
Source: PR Newswire
BUCHANAN, N.Y., Nov. 22, 2019 /PRNewswire/ -- Entergy Corporation and Holtec International, through their affiliates, jointly filed a License Transfer Application today with the U.S. Nuclear Regulatory Commission, requesting approval for the transfer of the NRC licenses for the Indian Point Energy Center to Holtec after the last unit permanently shuts down by April 30, 2021. Holtec plans to initiate decommissioning at Indian Point, following regulatory approvals and transaction close, as much as 40 years sooner than if Entergy continued to own the units.
"Holtec's plan to accelerate the decommissioning schedule provides the potential for site redevelopment decades sooner than if Entergy continued to own the facility, which is good news for the local community," said Chris Bakken, Entergy Executive Vice President Nuclear Operations and Chief Nuclear Officer. "Holtec plans to begin the decommissioning process promptly upon taking ownership, and as part of the agreement between the companies, will provide job opportunities for more than 300 of our current employees who want to remain in the region and continue to work at the site."
The companies asked the NRC to approve the License Transfer Application by November 2020 to facilitate a timely transaction closing targeted for May 2021, which will benefit the community, employees and other interested stakeholders.
"This key regulatory filing is an important first step to beginning a new future for Indian Point and the local community," said Holtec's President and Chief Executive Officer Dr. Kris Singh. "By beginning decommissioning earlier, Holtec will be able to maintain and create new jobs and work towards releasing the plant site earlier so it can be repurposed and generate replacement tax revenue on an earlier schedule."
The NRC previously approved applications to transfer the licenses for the shut down Oyster Creek Nuclear Generating Station (New Jersey) from Exelon Generation to Holtec and for the shut down Pilgrim Nuclear Power Station (Massachusetts) from Entergy to Holtec for decommissioning.
In addition to the federal filing, the companies today filed a petition with the New York Public Service Commission requesting a ruling disclaiming PSC jurisdiction or abstaining from review of the proposed transaction, or, in the alternative, an order approving the proposed transaction.
Holtec International is a global leader in used nuclear fuel management, with more than 100 nuclear plants relying on its nuclear fuel storage technology design and implementation. Holtec has contracted with Comprehensive Decommissioning International, LLC to perform the decommissioning, including demolition and site cleanup, at Oyster Creek, Pilgrim, and Indian Point. CDI is a joint venture company of Holtec International and SNC-Lavalin. The decommissioning experience held by Holtec and SNC-Lavalin gives CDI more than half a century of managing complex nuclear projects in the commercial and government sectors worldwide.
Holtec's plan for decommissioning will result in the release for re-use of portions of the site in the 2030s, with the exception of the Independent Spent Fuel Storage Installation – the area where spent nuclear fuel is safely stored in dry casks until the U.S. Department of Energy transfers the spent fuel offsite. As part of its plan, Holtec expects to move all of the Indian Point spent nuclear fuel into dry casks within about three years following facility shutdown in 2021. Holtec has a pending application with the NRC for a Consolidated Interim Storage Facility in New Mexico, which could eventually store spent nuclear fuel from Indian Point and other U.S. nuclear power plants.
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, Entergy's plans and expectations with respect to the Indian Point Energy Center, the proposed post-shutdown sale of the Indian Point Energy Center, and other statements of Entergy's plans, beliefs or expectations included in this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy's most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and Entergy's other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) risks associated with operating nuclear facilities, including plant relicensing, operating and regulatory costs and risks; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning Entergy's nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with strategic transactions that Entergy or its subsidiaries may undertake, including the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental or energy policies; and (i) the effects of technological changes and changes in commodity markets, capital markets or economic conditions; and (j) impacts from a terrorist attack, cybersecurity threats, data security breaches or other attempts to disrupt Entergy's business or operations, and other catastrophic events.
Background Information
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy has annual revenues of $11 billion and approximately 13,500 employees. Additional information is available at entergy.com.
Holtec International is a privately held energy technology company with operation centers in Florida, New Jersey, Ohio, and Pennsylvania in the U.S., and globally in Brazil, Dubai, India, South Africa, Spain, U.K., and Ukraine. Holtec's principal business concentration is in the nuclear power industry. Holtec has played a preeminent role since the 1980s by densifying wet storage in nuclear plants' spent fuel pools deferring the need for and expense of alternative measures by as much as two decades at over 110 reactor units in the U.S. and abroad. Dry storage and transport of nuclear fuel is another area in which Holtec is recognized as the foremost innovator and industry leader with a dominant market share and an active market presence in eighteen countries. Among the Company's pioneering endeavors are the world's first below-ground Consolidated Interim Storage Facility being developed in New Mexico and a 160-Megawatt walk away safe small modular reactor, SMR-160. The SMR-160 is developed to bring cost competitive carbon-free energy to all corners of the earth including water-challenged regions. Holtec is also a major supplier of special-purpose pressure vessels and critical-service heat exchange equipment such as air-cooled condensers, steam generators, feedwater heaters, and water-cooled condensers. Virtually all products produced by the Company are built in its three large manufacturing plants in the U.S. and one in India. Thanks to a solid record of consistent profitability and steady growth since its founding in 1986, Holtec has no history of any long-term debt and enjoys a platinum credit rating from the financial markets. Nearly 100 U.S. and international patents protect the Company's intellectual property from predation by its global competitors and lend predictable stability to its business base. To learn more about Holtec International, please visit www.holtecinternational.com.
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SOURCE Entergy Corporation
Article Date
11/22/2019Entergy Corporation to Participate in 54th EEI Financial Conference
Source: PR Newswire
NEW ORLEANS, Nov. 7, 2019 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) Chairman and CEO Leo Denault and members of Entergy's executive team plan to participate in investor meetings from Sunday, Nov. 10 to Tuesday, Nov. 12, 2019 during the 54th Edison Electric Institute Financial Conference. Handout materials will be posted on the Investor Relations section of Entergy's corporate website at www.entergy.com on Saturday, Nov. 9.
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,500 employees.
Additional investor information can be accessed at entergy.com/investor_relations
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SOURCE Entergy Corporation
Article Date
11/7/2019Entergy Mississippi Acquires Choctaw County Generating Station
Source: PR Newswire
JACKSON, Miss., Oct. 31, 2019 /PRNewswire/ -- Entergy Mississippi, LLC has closed its purchase of the 810-megawatt Choctaw County Generating Station. The transaction represents a major step toward modernizing the electric grid and providing additional efficient, clean energy for customers.
Located near French Camp, Mississippi, the Choctaw County Generating Station entered commercial operation in July 2003. It is a clean and modern combined-cycle natural gas turbine unit, consisting of three combustion turbines, a steam turbine and an air-cooled condenser. The plant will employ 27 people.
"Today's announcement is one more step toward modernizing our generating fleet and moves us forward in our quest to provide greater reliability, lower emissions and cost savings to our customers," said Haley Fisackerly, Entergy Mississippi president and CEO.
"It also gives us a presence in Choctaw County, and we're excited about the partnership we'll have with the local community and its leaders and look forward to working with them as a corporate partner."
In August 2018, Entergy Mississippi announced it had entered into a purchase agreement with a subsidiary of GenOn Energy, Inc., to buy the plant for $314 million, subject to certain adjustments. That amount is significantly less than the cost to build a comparable facility and provides more immediate benefits and savings for customers.
The facility's technology uses natural gas and its steam byproduct to produce clean, affordable electricity. It is also environmentally-friendly and furthers Entergy Corporation's reputation as one of the cleanest utilities in the country.
The Choctaw County Generating Station is another important milestone in Entergy's broader plan to modernize and transform the Entergy Utility's existing generation fleet. Over the past 20 years, the Entergy Utility has added approximately 8 gigawatts of clean, highly efficient generation, allowing for the deactivation of over 6 gigawatts of older, less-efficient gas or oil units.
In addition to providing reliable, cost-effective power, Entergy's investments in its generation portfolio transformation and nuclear improvements since 2000 have resulted in substantial reductions in the company's air emissions, highlighting Entergy's commitment to environmental stewardship.
The company recently stepped up its commitments again with plans to reduce utility carbon dioxide emissions rates to 50% below year 2000 levels by 2030.
About Entergy Mississippi
Entergy Mississippi, LLC provides electricity to approximately 450,000 customers in 45 counties. Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,500 employees.
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, Entergy's plans and expectations with respect to its greenhouse gas reduction goals and strategies, and other statements of Entergy's plans, beliefs or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy's most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and Entergy's other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) risks associated with operating nuclear facilities, including plant relicensing, operating and regulatory costs and risks; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning Entergy's nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with strategic transactions that Entergy or its subsidiaries may undertake, including the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental or energy policies; and (i) the effects of technological changes and changes in commodity markets, capital markets or economic conditions; and (j) impacts from a terrorist attack, cybersecurity threats, data security breaches or other attempts to disrupt Entergy's business or operations, and other catastrophic events.
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SOURCE Entergy Corporation
Article Date
10/31/201910/30/2019 - Entergy Reports Third Quarter Earnings
Entergy Reports Third Quarter Earnings
Source: PR Newswire
NEW ORLEANS, Oct. 30, 2019 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported third quarter 2019 earnings per share of $1.82 on an as-reported basis and $2.52 on an adjusted basis (non-GAAP).
"With another successful quarter, we are increasing the midpoint of our 2019 guidance and narrowing the range," said Entergy Chairman and Chief Executive Officer Leo Denault. "The fundamentals supporting our steady, predictable growth are strong and give us confidence in our financial outlooks."
Business highlights included the following:
Consolidated Earnings (GAAP and Non-GAAP Measures) | ||||||
Third Quarter and Year-to-Date 2019 vs. 2018 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of adjustments) | ||||||
Third Quarter | Year-to-Date | |||||
2019 | 2018 | Change | 2019 | 2018 | Change | |
(After-tax, $ in millions) | ||||||
As-reported earnings | 365 | 536 | (171) | 856 | 915 | (58) |
Less adjustments | (141) | 105 | (246) | (70) | 73 | (143) |
Adjusted earnings (non-GAAP) | 506 | 431 | 75 | 927 | 842 | 85 |
Estimated weather in billed sales | 13 | 5 | 7 | 1 | 42 | (41) |
(After-tax, per share in $) | ||||||
As-reported earnings | 1.82 | 2.92 | (1.10) | 4.38 | 5.01 | (0.63) |
Less adjustments | (0.70) | 0.57 | (1.27) | (0.36) | 0.39 | (0.75) |
Adjusted earnings (non-GAAP) | 2.52 | 2.35 | 0.17 | 4.74 | 4.62 | 0.12 |
Estimated weather in billed sales | 0.06 | 0.03 | 0.03 | 0.01 | 0.23 | (0.22) |
Calculations may differ due to rounding |
Consolidated Results
For third quarter 2019, the company reported earnings of $365 million, or $1.82 per share, on an as-reported basis and earnings of $506 million, or $2.52 per share, on an adjusted basis. This compared to third quarter 2018 earnings of $536 million, or $2.92 per share, on an as-reported basis and earnings of $431 million, or $2.35 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 and an analysis of quarterly and year-to-date variances by business is provided in Appendix B.
Business Segment Results
Utility
For third quarter 2019, the Utility business reported earnings attributable to Entergy Corporation of $578 million, or $2.88 per share, on both an as-reported and an adjusted basis. This compared to third quarter 2018 earnings of $505 million, or $2.75 per share, on both an as-reported and an adjusted basis. Drivers for the quarter included:
These drivers were partially offset by:
On a per share basis, 2019 results reflected higher common shares outstanding.
Appendix C contains additional details on Utility financial and operating measures.
Parent & Other
For third quarter 2019, Parent & Other reported a loss attributable to Entergy Corporation of $(72 million), or (36) cents per share, on both an as-reported and an adjusted basis. This compared to a loss of $(73 million), or (40) cents per share, on both an as-reported and an adjusted basis in third quarter 2018.
Entergy Wholesale Commodities
For third quarter 2019, EWC reported a loss attributable to Entergy Corporation of $(141 million), or (70) cents per share on an as-reported basis. This compared to third quarter 2018 earnings attributable to Entergy Corporation of $105 million, or 57 cents per share, on an as-reported basis. Drivers for the quarter included:
These drivers were partially offset by lower spending on nuclear operations. On a per share basis, 2019 results reflected higher common shares outstanding.
Appendix D contains additional details on EWC financial and operating measures, including reconciliation for non-GAAP EWC adjusted EBITDA.
Earnings per Share Guidance
Entergy updated its 2019 adjusted EPS guidance range to $5.25 to $5.45 per share from $5.15 to $5.45 per share, raising the midpoint 5 cents and narrowing the range.
See webcast presentation slides for additional details.
The company has provided 2019 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 periods. One such adjustment will be the exclusion of EWC earnings from Entergy adjusted EPS. We currently estimate that the contribution of EWC to Entergy's as-reported EPS will be approximately (70) cents in 2019, excluding the impact of a potential tax item. These estimates are subject to substantial uncertainty due to, among other things, the potential effects of exiting the EWC business.
Earnings Teleconference
A teleconference will be held at 10:00 a.m. Central Time on Wednesday, October 30, 2019, to discuss Entergy's quarterly earnings announcement and the company's financial performance. The teleconference may be accessed by visiting Entergy's website at www.entergy.com or by dialing 844-309-6569, conference ID 8727128, no more than 15 minutes prior to the start of the call. The webcast slide presentation is also posted to Entergy's website concurrent with this release, which was issued before market open on the day of the call. A replay of the teleconference will be available on Entergy's website at www.entergy.com and by telephone. The telephone replay will be available through November 6, 2019, by dialing 855-859-2056, conference ID 8727128.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy has annual revenues of $11 billion and approximately 13,500 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 slide 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 & Other Information, which provides investors with key updates of certain regulatory proceedings and important milestones on the execution of its strategy. While some of this information may be considered material information, investors should not rely exclusively on this page for all relevant company information.
For definitions of certain operating measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the earnings release materials, see Appendix F.
Non-GAAP Financial Measures
This news release contains non-GAAP financial measures, which are generally numerical measures of a company's performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Entergy has provided quantitative reconciliations within this release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Entergy reports earnings using the non-GAAP measure of Entergy adjusted earnings, which excludes the effect of certain "adjustments," including the removal of the Entergy Wholesale Commodities segment in light of the company's decision to exit the merchant power business. Adjustments are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as the results of the EWC segment, significant tax items and other items such as certain costs, expenses, or other specified items. In addition to reporting GAAP consolidated earnings on a per share basis, Entergy reports its adjusted earnings on a per share basis. These per share measures represent the applicable earnings amount divided by the diluted average number of common shares outstanding for the period.
Management uses the non-GAAP financial measures of adjusted earnings and adjusted earnings per share for, among other things, financial planning and analysis; reporting financial results to the board of directors, employees, stockholders, analysts and investors; and internal evaluation of financial performance. Entergy believes that these non-GAAP financial measures provide useful information to investors in evaluating the ongoing results of Entergy's business, comparing period to period results, and comparing Entergy's financial performance to the financial performance of other companies in the utility sector.
Other non-GAAP measures, including adjusted EBITDA; adjusted ROE; adjusted ROIC; gross liquidity; debt to capital, excluding securitization debt; net debt to net capital, excluding securitization debt; parent debt to total debt, excluding securitization debt; FFO; FFO to debt, excluding securitization debt; and FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC, are measures Entergy uses internally for management and board discussions and to gauge the overall strength of its business. Entergy believes the above data provides useful information to investors in evaluating Entergy's ongoing financial results and flexibility and assists investors in comparing Entergy's credit and liquidity to the credit and liquidity of others in the Utility sector. In addition, other financial measures including net income (or earnings), adjusted for preferred dividends and tax-effected interest expense; return on average invested capital; and return on average common equity are included on both an adjusted and as-reported basis. In each case, the metrics defined as "adjusted" (other than EWC's adjusted EBITDA) excludes the effect of adjustments as defined above. EWC's adjusted EBITDA represents EWC's earnings before interest, taxes, and depreciation and amortization, and also excludes decommissioning expense.
These non-GAAP financial measures reflect an additional way of viewing aspects of Entergy's operations that, when viewed with Entergy's GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting Entergy's business. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. Investors are strongly encouraged to review Entergy's consolidated financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Although certain of these measures are intended to assist investors in comparing Entergy's performance to other companies in the utility sector, non-GAAP financial measures are not standardized; therefore, it might not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
Cautionary Note Regarding Forward-Looking Statements
In this news release, and from time to time, Entergy Corporation makes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, among other things, Entergy's 2019 earnings guidance; its current financial and operational outlooks; and other statements of Entergy's plans, beliefs or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy's most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and Entergy's other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) risks associated with operating nuclear facilities, including plant relicensing, operating, and regulatory costs and risks; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning Entergy's nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with strategic transactions that Entergy or its subsidiaries may undertake, including the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state, or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental, or energy policies; (i) the effects of technological changes and changes in commodity markets, capital markets or economic conditions; and (j) impacts from a terrorist attack, cybersecurity threats, data security breaches or other attempts to disrupt Entergy's business or operations, and other catastrophic events.
Third Quarter 2019 Earnings Release Appendices and Financial Statements
Appendices
Appendices are presented in this section as follows:
Financial Statements
Financial statements are presented in this section.
A: Consolidated Results and Adjustments
Appendix A-1 provides a comparative summary of consolidated earnings, including a reconciliation of as-reported earnings (GAAP) to adjusted earnings (non-GAAP).
Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures Third Quarter and Year-to-Date 2019 vs. 2018 (See Appendix A-3 and Appendix A-4 for details on adjustments) | ||||||
Third Quarter | Year-to-Date | |||||
2019 | 2018 | Change | 2019 | 2018 | Change | |
(After-tax, $ in millions) | ||||||
Earnings (loss) | ||||||
Utility | 578 | 505 | 73 | 1,140 | 1,095 | 45 |
Parent & Other | (72) | (73) | 1 | (213) | (211) | (3) |
EWC | (141) | 105 | (246) | (70) | 30 | (100) |
Consolidated | 365 | 536 | (171) | 856 | 915 | (58) |
Less adjustments | ||||||
Utility | - | - | - | - | 43 | (43) |
Parent & Other | - | - | - | - | - | - |
EWC | (141) | 105 | (246) | (70) | 30 | (100) |
Consolidated | (141) | 105 | (246) | (70) | 73 | (143) |
Adjusted earnings (loss) (non-GAAP) | ||||||
Utility | 578 | 505 | 73 | 1,140 | 1,052 | 88 |
Parent & Other | (72) | (73) | 1 | (213) | (211) | (3) |
EWC | - | - | - | - | - | - |
Consolidated | 506 | 431 | 75 | 927 | 842 | 85 |
Estimated weather in billed sales | 13 | 5 | 7 | 1 | 42 | (41) |
Diluted average number of common shares outstanding (in millions) | 200 | 184 | 196 | 183 | ||
(After-tax, per share in $) (a) | ||||||
Earnings (loss) | ||||||
Utility | 2.88 | 2.75 | 0.13 | 5.83 | 6.00 | (0.17) |
Parent & Other | (0.36) | (0.40) | 0.04 | (1.09) | (1.15) | 0.06 |
EWC | (0.70) | 0.57 | (1.27) | (0.36) | 0.16 | (0.52) |
Consolidated | 1.82 | 2.92 | (1.10) | 4.38 | 5.01 | (0.63) |
Less adjustments | ||||||
Utility | - | - | - | - | 0.23 | (0.23) |
Parent & Other | - | - | - | - | - | - |
EWC | (0.70) | 0.57 | (1.27) | (0.36) | 0.16 | (0.52) |
Consolidated | (0.70) | 0.57 | (1.27) | (0.36) | 0.39 | (0.75) |
Adjusted earnings (loss) (non-GAAP) | ||||||
Utility | 2.88 | 2.75 | 0.13 | 5.83 | 5.77 | 0.06 |
Parent & Other | (0.36) | (0.40) | 0.04 | (1.09) | (1.15) | 0.06 |
EWC | - | - | - | - | - | - |
Consolidated | 2.52 | 2.35 | 0.17 | 4.74 | 4.62 | 0.12 |
Estimated weather in billed sales | 0.06 | 0.03 | 0.03 | 0.01 | 0.23 | (0.22) |
Calculations may differ due to rounding | |
(a) | Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period. |
See Appendix B for detailed earnings variance analysis. See Appendix A-3 for adjustments by driver.
Appendix A-2 provides a comparative summary of OCF, by business.
Appendix A-2: Consolidated Operating Cash Flow | ||||||
Third Quarter and Year-to-Date 2019 vs. 2018 | ||||||
($ in millions) | ||||||
Third Quarter | Year-to-Date | |||||
2019 | 2018 | Change | 2019 | 2018 | Change | |
Utility | 1,143 | 845 | 298 | 2,297 | 1,994 | 303 |
Parent & Other | (93) | (99) | 6 | (216) | (214) | (2) |
EWC | 15 | 33 | (18) | 37 | 79 | (42) |
Consolidated | 1,065 | 780 | 286 | 2,118 | 1,860 | 259 |
Calculations may differ due to rounding |
OCF increased quarter-over-quarter due primarily to a lower amount of unprotected excess ADIT returned to customers, lower pension contributions, and lower asset retirement obligation spending at EWC. Higher severance and retention payments at EWC partially offset the increase.
Appendix A-3 and Appendix A-4 list adjustments by business. Amounts are shown on both an earnings and EPS basis. Adjustments are included in as-reported earnings consistent with GAAP but are excluded from adjusted earnings. As a result, adjusted earnings is considered a non-GAAP measure.
Appendix A-3: Adjustments by Driver (shown as positive/(negative) impact on earnings or EPS) | ||||||
Third Quarter and Year-to-Date 2019 vs. 2018 | ||||||
(Pre-tax except for Income taxes, Preferred dividend requirements of subsidiaries, and Total, $ in millions) | ||||||
Third Quarter | Year-to-Date | |||||
2019 | 2018 | Change | 2019 | 2018 | Change | |
(Pre-tax except for income taxes, preferred dividend requirements of subsidiaries, and totals, $ in millions) | ||||||
Utility | ||||||
2012 / 2013 IRS settlement | - | - | - | - | 43 | (43) |
Total Utility | - | - | - | - | 43 | (43) |
EWC | ||||||
Income before income taxes | (171) | (30) | (141) | (43) | (135) | 93 |
Income taxes | 31 | 136 | (105) | (26) | 167 | (193) |
Preferred dividend requirements of subsidiaries | (1) | (1) | - | (2) | (2) | - |
Total EWC | (141) | 105 | (246) | (70) | 30 | (100) |
Total adjustments | (141) | 105 | (246) | (70) | 73 | (143) |
(After-tax, per share in $) (b) | ||||||
Utility | ||||||
2012 / 2013 IRS settlement | - | - | - | - | 0.23 | (0.23) |
Total Utility | - | - | - | - | 0.23 | (0.23) |
EWC | ||||||
Total EWC | (0.70) | 0.57 | (1.27) | (0.36) | 0.16 | (0.52) |
Total adjustments | (0.70) | 0.57 | (1.27) | (0.36) | 0.39 | (0.75) |
Calculations may differ due to rounding | |
(b) | Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period. |
Appendix A-4: Adjustments by Income Statement Line Item (shown as positive/(negative) impact on earnings) | ||||||
Third Quarter and Year-to-Date 2019 vs. 2018 | ||||||
(Pre-tax except for Income taxes, Preferred dividend, and totals, $ in millions) | ||||||
Third Quarter | Year-to-Date | |||||
2019 | 2018 | Change | 2019 | 2018 | Change | |
Utility | ||||||
Income taxes | - | - | - | - | 43 | (43) |
Total Utility | - | - | - | - | 43 | (43) |
EWC | ||||||
Operating revenues | 300 | 380 | (80) | 1,024 | 1,108 | (84) |
Fuel and fuel-related expenses | (26) | (19) | (6) | (76) | (58) | (19) |
Purchased power | (18) | (20) | 2 | (49) | (54) | 6 |
Nuclear refueling outage expense | (12) | - | (12) | (36) | (3) | (33) |
Other O&M | (136) | (209) | 73 | (513) | (600) | 87 |
Asset write-off and impairments | (198) | (155) | (43) | (289) | (297) | 9 |
Decommissioning expense | (60) | (56) | (4) | (187) | (175) | (13) |
Taxes other than income taxes | (13) | (19) | 6 | (46) | (58) | 12 |
Depreciation/amortization exp. | (38) | (40) | 2 | (114) | (116) | 3 |
Other income (deductions)–other | 34 | 116 | (82) | 266 | 143 | 124 |
Interest exp. and other charges | (6) | (9) | 3 | (24) | (25) | 1 |
Income taxes | 31 | 136 | (105) | (26) | 167 | (193) |
Preferred dividend | (1) | (1) | - | (2) | (2) | - |
Total EWC | (141) | 105 | (246) | (70) | 30 | (100) |
Total adjustments | (141) | 105 | (246) | (70) | 73 | (143) |
Calculations may differ due to rounding |
B: Earnings Variance Analysis
Appendix B-1 and Appendix B-2 provide details of current quarter and year-to-date 2019 versus 2018 as-reported and adjusted earnings variance analysis for Utility, Parent & Other, and EWC.
Appendix B-1: As-Reported and Adjusted Earnings Variance Analysis (c), (d) | ||||||||||
Third Quarter 2019 vs. 2018 | ||||||||||
(After-tax, per share in $) | ||||||||||
Utility | Parent & Other | EWC | Consolidated | |||||||
As- | Adjusted | As- | Adjusted | As- Reported | As- Reported | Adjusted | ||||
2018 earnings | 2.75 | 2.75 | (0.40) | (0.40) | 0.57 | 2.92 | 2.35 | |||
Operating revenue less: Fuel, fuel-related expenses and gas purchased for resale, Purchased power, and Regulatory charges (credits) | 0.91 | 0.91 | (e) | - | - | (0.36) | (f) | 0.55 | 0.91 | |
Nuclear refueling outage expense | (0.01) | (0.01) | - | - | (0.05) | (g) | (0.06) | (0.01) | ||
Other O&M | (0.11) | (0.11) | (h) | - | - | 0.31 | (i) | 0.20 | (0.11) | |
Asset write-offs and impairments | - | - | - | - | (0.18) | (j) | (0.18) | - | ||
Decommissioning expense | (0.02) | (0.02) | - | - | (0.02) | (0.04) | (0.02) | |||
Taxes other than income taxes | (0.04) | (0.04) | - | - | 0.03 | (0.01) | (0.04) | |||
Depreciation/amortization exp. | (0.23) | (0.23) | (k) | - | - | 0.01 | (0.22) | (0.23) | ||
Other income (deductions)–other | (0.08) | (0.08) | (l) | - | - | (0.35) | (m) | (0.43) | (0.08) | |
Interest exp. and other charges | (0.04) | (0.04) | - | - | 0.01 | (0.03) | (0.04) | |||
Income taxes–other | 0.01 | 0.01 | 0.01 | 0.01 | (0.73) | (n) | (0.71) | 0.02 | ||
Share effect | (0.26) | (0.26) | (o) | 0.03 | 0.03 | 0.06 | (o) | (0.17) | (0.23) | |
2019 earnings | 2.88 | 2.88 | (0.36) | (0.36) | (0.70) | 1.82 | 2.52 | |||
Appendix B-2: As-Reported and Adjusted Earnings Variance Analysis (c), (d) | ||||||||||
Year-to-Date 2019 vs. 2018 | ||||||||||
(After-tax, per share in $) | ||||||||||
Utility | Parent & Other | EWC | Consolidated | |||||||
As- | Adjusted | As- | Adjusted | As- | As- Reported | Adjusted | ||||
2018 earnings | 6.00 | 5.77 | (1.15) | (1.15) | 0.16 | 5.01 | 4.62 | |||
Operating revenue less: Fuel, fuel-related expenses and gas purchased for resale, Purchased power, and Regulatory charges (credits) | 1.16 | 1.16 | (e) | - | - | (0.42) | (f) | 0.74 | 1.16 | |
Nuclear refueling outage expense | (0.02) | (0.02) | - | - | (0.14) | (g) | (0.16) | (0.02) | ||
Other O&M | (0.19) | (0.19) | (h) | 0.01 | 0.01 | 0.38 | (i) | 0.20 | (0.18) | |
Asset write-offs and impairments | - | - | - | - | 0.04 | 0.04 | - | |||
Decommissioning expense | (0.04) | (0.04) | - | - | (0.05) | (p) | (0.09) | (0.04) | ||
Taxes other than income taxes | (0.06) | (0.06) | (q) | - | - | 0.05 | (r) | (0.01) | (0.06) | |
Depreciation/amortization exp. | (0.32) | (0.32) | (k) | - | - | 0.01 | (0.31) | (0.32) | ||
Other income (deductions)–other | 0.01 | 0.01 | (0.02) | (0.02) | 0.53 | (m) | 0.52 | (0.01) | ||
Interest exp. and other charges | (0.09) | (0.09) | (s) | (0.03) | (0.03) | 0.01 | (0.11) | (0.12) | ||
Income taxes–other | (0.20) | 0.03 | (t) | 0.02 | 0.02 | (0.95) | (n) | (1.13) | 0.05 | |
Preferred dividend requirements | (0.01) | (0.01) | - | - | - | (0.01) | (0.01) | |||
Share effect | (0.41) | (0.41) | (o) | 0.08 | 0.08 | (o) | 0.02 | (0.31) | (0.33) | |
2019 earnings | 5.83 | 5.83 | (1.09) | (1.09) | (0.36) | 4.38 | 4.74 | |||
Calculations may differ due to rounding |
(c) | Utility revenue, Utility other O&M and Utility income taxes exclude $93 million, $3 million, and $96 million respectively in third quarter 2019 and $277 million, $6 million, and $283 million respectively in third quarter 2018 for the return of unprotected excess ADIT to customers (net effect is neutral to earnings). On a year-to-date basis, Utility revenue, Utility other O&M and Utility income taxes exclude $216 million, $3 million, and $219 million respectively in 2019 and $555 million, $6 million, and $561 million respectively in 2018 (net effect is neutral to earnings). |
(d) | EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply and dividing by diluted average number of common shares outstanding for the prior period; income taxes–other represents income tax differences other than the tax effect of individual line items. |
(e) | The third quarter and year-to-date earnings increases were primarily driven by rate activity from E-AR's FRP, E-LA's FRP, including recovery of the St. Charles Power Station, E-LA's AMI rider, E-TX's base rate case, and E-MS's FRP. In addition, in the third quarter and year-to-date 2018, E-LA recorded regulatory charges to return the benefits of the lower effective federal tax rate to customers. Also contributing was the net effect of volume/weather primarily due to higher volume in the unbilled period, net of lower billed sales volume. |
(f) | The third quarter and year-to-date earnings decreases were due largely to lower revenues from the shutdown of Pilgrim in May 2019, lower capacity prices, and impacts on fuel expense from EWC plant impairments, partially offset by higher nuclear energy volume. |
(g) | The third quarter and year-to-date earnings decreases from higher EWC nuclear refueling outage expense is due primarily to increased outage amortization at Palisades due to the plant no longer being impaired. |
(h) | The third quarter and year-to-date earnings decreases from higher Utility other O&M reflected higher spending on information technology, loss reserves, initiatives to explore new customer products and services, and distribution operations. These were partially offset by lower spending on nuclear operations. The year-to-date variance also reflected lower energy efficiency costs (largely offset in operating revenue and/or regulatory charges (credits)). |
(i) | The third quarter and year-to-date earnings increases from lower EWC other O&M is due largely to a decrease in severance and retention expense, as well as the Pilgrim plant shutdown in May 2019. |
(j) | The third quarter earnings decrease from higher EWC asset write-offs and impairments was due to a $191 million loss (pre-tax) on the sale of Pilgrim in third quarter 2019, compared to $155 million (pre-tax) of impairment charges in third quarter 2018 primarily due to an upward revision of Pilgrim's ARO and a write-off of materials and supplies at Pilgrim. |
(k) | The third quarter and year-to-date earnings decreases from higher Utility depreciation expense were due primarily to higher plant in service, including the St. Charles Power Station, as well as the third quarter 2018 depreciation adjustment related to Grand Gulf, partially offset by the ongoing effect of Grand Gulf's lower depreciation rate (variances from Grand Gulf are largely offset in operating revenue). |
(l) | The third quarter earnings decrease from lower Utility other income (deductions)–other was due largely to differences in decommissioning trust fund returns. |
(m) | The third quarter earnings decrease from lower EWC other income (deductions)–other was due largely to lower gains on the decommissioning trust fund investments in 2019 as compared to 2018, as well as a $16 million pension settlement charge in third quarter 2019 related to the exit of the EWC business. The year-to-date earnings increase from higher EWC other income (deductions)–other was due largely to higher gains on the decommissioning trust fund investments in 2019 as compared to 2018. These gains were partially offset by the pension settlement charge mentioned above. |
(n) | The third quarter and year-to-date earnings decreases from higher EWC income taxes were due primarily to two tax items in third quarter 2018. First, a restructuring of an interest in an EWC decommissioning trust fund resulted in a reduction in income tax expense of $107 million. Second, the conclusion of a state income tax audit resulted in a benefit of $23 million. The year-to date earnings decrease also reflected an accrual of $29 million of tax expense, which resulted from the sale of Vermont Yankee in January 2019 and $13 million in tax benefits from the settlement of the 2012 / 2013 IRS audit in second quarter 2018. |
(o) | The third quarter and year-to-date earnings per share decreases from share effect were due to settlement of the equity forward (6.8 million shares settled in December 2018 and 8.4 million shares settled in May 2019). |
(p) | The year-to-date earnings decrease from higher EWC decommissioning expense was due to the acceleration of the ARO accretion for Indian Point and Palisades, as those plants move closer to their projected decommissioning dates. |
(q) | The year-to date earnings decrease from higher Utility taxes other than income taxes was primarily higher ad valorem at E-AR, E-LA, and E-MS. |
(r) | The year-to-date earnings increase from lower EWC taxes other than income taxes was primarily due to a true-up as well as lower ad valorem taxes due to a lower assessment at Palisades. |
(s) | The year-to-date earnings decrease from higher Utility interest expense and other charges was largely due to higher debt balances at E-AR and E-LA. |
(t) | The year-to-date as-reported earnings decrease from higher Utility income taxes was primarily due to the settlement of the 2012 / 2013 IRS audit totaling $43 million in second quarter 2018. |
Utility as-reported operating revenue less fuel, fuel- 2019 vs. 2018 ($ EPS) | ||
3Q | YTD | |
Volume/weather | 0.20 | (0.13) |
Retail electric price | 0.52 | 0.85 |
Reg. charges for lower tax rate | 0.07 | 0.31 |
Other, including Grand Gulf recovery | 0.12 | 0.13 |
Total | 0.91 | 1.16 |
C: Utility Financial and Operating Measures
Appendix C-1 and Appendix C-2 provides comparative summaries of Utility operating and financial measures.
Appendix C-1: Utility Operating and Financial Measures | ||||||||||||
Third Quarter and Year-to-Date 2019 vs. 2018 | ||||||||||||
Third Quarter | Year-to-Date | |||||||||||
2019 | 2018 | % Change | % Weather | 2019 | 2018 | % Change | % Weather | |||||
GWh billed | ||||||||||||
Residential | 11,627 | 11,821 | (1.6) | (2.9) | 27,749 | 28,857 | (3.8) | (1.2) | ||||
Commercial | 8,499 | 8,726 | (2.6) | (3.3) | 21,764 | 22,401 | (2.8) | (1.8) | ||||
Governmental | 705 | 714 | (1.3) | (1.8) | 1,932 | 1,934 | (0.1) | (0.2) | ||||
Industrial | 12,861 | 12,879 | (0.1) | (0.1) | 36,509 | 36,503 | - | - | ||||
Total retail sales | 33,692 | 34,140 | (1.3) | (1.9) | 87,954 | 89,695 | (1.9) | (0.8) | ||||
Wholesale | 3,025 | 2,978 | 1.6 | 10,009 | 8,788 | 13.9 | ||||||
Total sales | 36,717 | 37,118 | (1.1) | 97,963 | 98,483 | (0.5) | ||||||
Number of electric retail customers | ||||||||||||
Residential | 2,497,790 | 2,482,698 | 0.6 | |||||||||
Commercial | 356,259 | 357,050 | (0.2) | |||||||||
Governmental | 17,630 | 17,867 | (1.3) | |||||||||
Industrial | 48,532 | 49,491 | (1.9) | |||||||||
Total retail customers | 2,920,211 | 2,907,106 | 0.5 | |||||||||
Other O&M and refueling outage expense per MWh | $19.02 | $18.12 | 5.0 | $20.53 | $19.95 | 2.9 | ||||||
Calculations may differ due to rounding |
On a weather-adjusted basis for third quarter 2019, retail billed sales decreased (1.9) percent. Industrial billed sales volume decreased (0.1) percent driven by lower sales to small industrials and cogeneration customers. This was partially offset by continued growth from new and expansion customers. Residential billed sales decreased (2.9) percent partly due to fewer days billed compared to a year ago.
Appendix C-2: Utility Operating Measures | ||||
Twelve Months Ended September 30, 2019 vs. 2018 | ||||
Twelve Months Ended September 30 | ||||
2019 | 2018 | % Change | % Weather | |
GWh billed | ||||
Residential | 35,999 | 36,881 | (2.4) | (1.0) |
Commercial | 28,789 | 29,551 | (2.6) | (1.8) |
Governmental | 2,579 | 2,560 | 0.7 | 0.6 |
Industrial | 48,390 | 48,443 | (0.1) | (0.1) |
Total retail sales | 115,757 | 117,435 | (1.4) | (0.8) |
Calculations may differ due to rounding | |
(u) | The effects of weather were estimated using heating degree days and cooling degree days for the billing cycles from certain locations within each jurisdiction and comparing to "normal" weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change. |
D: EWC Financial and Operating Measures
Appendix D-1 provides a comparative summary of EWC adjusted EBITDA (non-GAAP).
Appendix D-1: EWC Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures | ||||||
Third Quarter and Year-to-Date 2019 vs. 2018 | ||||||
($ in millions) | Third Quarter | Year-to-Date | ||||
2019 | 2018 | Change | 2019 | 2018 | Change | |
Net income (loss) | (141) | 106 | (247) | (69) | 31 | (100) |
Add back: interest expense | 6 | 9 | (3) | 24 | 25 | (1) |
Add back: income taxes | (31) | (136) | 105 | 26 | (167) | 193 |
Add back: depreciation and amortization | 38 | 40 | (2) | 114 | 116 | (2) |
Subtract: interest and investment income | 59 | 127 | (68) | 316 | 183 | 133 |
Add back: decommissioning expense | 60 | 56 | 4 | 187 | 174 | 13 |
Adjusted EBITDA (non-GAAP) | (127) | (52) | (75) | (34) | (5) | (29) |
Calculations may differ due to rounding |
Appendix D-2 provides a comparative summary of EWC operating and financial measures.
Appendix D-2: EWC Operating and Financial Measures | ||||||
Third Quarter and Year-to-Date 2019 vs. 2018 | ||||||
Third Quarter | Year-to-Date | |||||
2019 | 2018 | % Change | 2019 | 2018 | % Change | |
Owned capacity (MW) (u) | 3,274 | 3,962 | (17.4) | 3,274 | 3,962 | (17.4) |
GWh billed | 6,847 | 7,576 | (9.6) | 21,308 | 21,853 | (2.5) |
EWC Nuclear Fleet | ||||||
Capacity factor | 98% | 90% | 8.9 | 91% | 86% | 5.8 |
GWh billed | 6,210 | 6,976 | (11.0) | 19,602 | 20,096 | (2.5) |
Production cost per MWh | $15.68 | $17.15 | (8.6) | $17.87 | $17.93 | (0.3) |
Average energy/capacity revenue per MWh | $42.15 | $48.97 | (13.9) | $46.53 | $49.13 | (5.3) |
Refueling outage days | ||||||
Indian Point 2 | - | - | - | 33 | ||
Indian Point 3 | - | - | 29 | - | ||
Palisades | - | - | - | - | ||
Calculations may differ due to rounding | |
(v) | Third quarter and year-to-date 2019 exclude Pilgrim (688MW), which was shut down May 31, 2019. |
See the appendix in the webcast slide presentation for EWC hedging and price disclosures.
E: Consolidated Financial Measures
Appendix E provides comparative financial measures. Financial measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP financial measures.
Appendix E: GAAP and Non-GAAP Financial Measures | |||
Third Quarter 2019 vs. 2018 (See Appendix G for reconciliation of GAAP to non-GAAP financial measures) | |||
For 12 months ending September 30 | 2019 | 2018 | Change |
GAAP Measures | |||
As-reported ROIC | 4.8% | 3.7% | 1.1% |
As-reported ROE | 8.6% | 5.1% | 3.5% |
Non-GAAP Measures | |||
Adjusted ROIC | 5.6% | 5.5% | 0.1% |
Adjusted ROE | 11.4% | 10.7% | 0.7% |
As of September 30 ($ in millions) | 2019 | 2018 | Change |
GAAP Measures | |||
Cash and cash equivalents | 956 | 988 | (32) |
Revolver capacity | 4,115 | 3,653 | 462 |
Commercial paper | 1,918 | 1,947 | (29) |
Total debt | 19,441 | 18,485 | 956 |
Securitization debt | 338 | 463 | (125) |
Debt to capital | 65.4% | 68.2% | (2.8%) |
Off-balance sheet liabilities: | |||
Debt of joint ventures – Entergy's share | 56 | 62 | (6) |
Leases – Entergy's share (v) | - | 429 | (429) |
Power purchase agreements accounted for as leases (v) | - | 136 | (136) |
Total off-balance sheet liabilities | 56 | 627 | (571) |
Non-GAAP Financial Measures | |||
Debt to capital, excluding securitization debt | 65.0% | 67.7% | (2.7%) |
Gross liquidity | 5,071 | 4,641 | 430 |
Net debt to net capital, excluding securitization debt | 63.8% | 66.4% | (2.6%) |
Parent debt to total debt, excluding securitization debt | 20.5% | 24.5% | (4.0%) |
FFO to debt, excluding securitization debt | 14.2% | 13.1% | 1.1% |
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC | 17.6% | 15.0% | 2.6% |
(w) | As of January 1, 2019, Entergy adopted Financial Accounting Standards Board Accounting Standards Codification 842, the new lease accounting standard. As a result, Entergy re-evaluated all agreements and put all agreements that qualified as operating leases on the balance sheet, and there are no longer any off-balance sheet liabilities for leases. |
F: Definitions and Abbreviations and Acronyms
Appendix F-1 provides definitions of certain operating measures, as well as GAAP and non-GAAP financial measures.
Appendix F-1: Definitions | ||
Utility Financial and Operating Measures | ||
GWh billed | Total number of GWh billed to retail and wholesale customers | |
Other O&M and refueling outage expense per MWh | Other operation and maintenance expense plus nuclear refueling outage expense per MWh of billed sales | |
Number of electric retail customers | Number of electric customers at the end of the period | |
EWC Financial and Operating Measures | ||
Adjusted EBITDA (non-GAAP) | Earnings before interest, depreciation and amortization and income taxes and excluding decommissioning expense | |
Average revenue under contract per kW-month (applies to capacity contracts only) | Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and/or auction awards | |
Average revenue per MWh on contracted volumes | Revenue on a per unit basis at which generation output reflected in contracts is expected to be sold to third parties (including offsetting positions) at the minimum contract prices and at forward market prices at a point in time, given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market PPA for Palisades. Revenue will fluctuate due to factors including positive or negative basis differentials and other risk management costs | |
Bundled capacity and energy contracts | A contract for the sale of installed capacity and related energy, priced per MWh sold | |
Capacity contracts | A contract for the sale of the installed capacity product in regional markets managed by NYISO and MISO | |
Capacity factor | Normalized percentage of the period that the nuclear plants generate power | |
Expected sold and market total revenue per MWh | Total energy and capacity revenue on a per unit basis at which total planned generation output and capacity is expected to be sold given contract terms and market prices at a point in time, including positive or negative basis differentials and other risk management costs, divided by total planned MWh of generation, excluding the revenue associated with the amortization of the Palisades below-market PPA | |
Appendix F-1: Definitions | ||
EWC Financial and Operating Measures (continued) | ||
GWh billed | Total number of GWh billed to customers and financially-settled instruments | |
Owned capacity (MW) | Installed capacity owned by EWC | |
Percent of capacity sold forward | Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions | |
Percent of planned generation under contract | Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts or options that mitigate price uncertainty that may or may not require regulatory approval or approval of transmission rights or other conditions precedent; positions that are no longer classified as hedges are netted in the planned generation under contract | |
Planned net MW in operation | Amount of installed capacity to generate power and/or sell capacity, assuming intent to shutdown Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022) | |
Planned TWh of generation | Amount of output expected to be generated by EWC resources considering plant operating characteristics and outage schedules, assuming intent to shutdown Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022) | |
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) | |
Refueling outage days | Number of days lost for a scheduled refueling and maintenance outage during the period | |
Unit-contingent | Transaction under which power is supplied from a specific generation asset; if the asset is in operational outage, seller is generally not liable to buyer for any damages, unless the contract specifies certain conditions such as an availability guarantee | |
Financial Measures – GAAP | ||
As-reported ROE | 12-months rolling net income attributable to Entergy Corporation divided by average common equity | |
As-reported ROIC | 12-months rolling net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital | |
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 | |
Leases – Entergy's share | Operating leases held by subsidiaries capitalized at implicit interest rate | |
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 capital leases on the balance sheet | |
Appendix F-1: Definitions | ||
Financial Measures - Non-GAAP | ||
Adjusted EPS | As-reported EPS excluding adjustments | |
Adjusted ROE | 12-months rolling adjusted net income attributable to Entergy Corporation divided by average common equity | |
Adjusted ROIC | 12-months rolling adjusted net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital | |
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 adjusted FFO as a percentage of end of period total debt excluding securitization debt | |
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC | 12-months rolling adjusted FFO as a percentage of end of period total debt excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC | |
Gross liquidity | Sum of cash and revolver capacity | |
Net debt to net capital, excluding securitization debt | Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt | |
Parent debt to total debt, excluding securitization debt | End of period Entergy Corporation debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of consolidated total debt, excluding 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 | ISO | Independent system operator |
AFUDC – borrowed funds | Allowance for borrowed funds used during construction | LPSC | Louisiana Public Service Commission |
ALJ | Administrative law judge | LTM | Last twelve months |
AMI | Advanced metering infrastructure | LTSA | Long-term service agreement |
ANO | Units 1 and 2 of Arkansas Nuclear One owned by E-AR (nuclear) | MISO | Midcontinent Independent System Operator, Inc. |
APSC | Arkansas Public Service Commission | Moody's | Moody's Investor Service |
ARO | Asset retirement obligation | MPSC | Mississippi Public Service Commission |
bps | Basis points | MTEP | MISO Transmission Expansion Planning |
CCGT | Combined cycle gas turbine | Nelson 6 | Unit 6 of Roy S. Nelson plant (coal) |
CCN | Certificate of convenience & necessity | NEPOOL | New England Power Pool |
CCNO | Council of the City of New Orleans, Louisiana | Ninemile 6 | Ninemile Point Unit 6 (CCGT) |
COD | Commercial operation date | NDT | Nuclear decommissioning trust |
CT | Simple cycle combustion turbine | NRC | Nuclear Regulatory Commission |
CWIP | Construction work in progress | NY PSC | New York Public Service Commission |
DCRF | Distribution cost recovery factor | NYISO | New York Independent System Operator, Inc. |
E-AR | Entergy Arkansas, LLC | NYPA | New York Power Authority |
E-LA | Entergy Louisiana, LLC | NYSE | New York Stock Exchange |
E-MS | Entergy Mississippi, LLC | OCF | Net cash flow provided by operating activities |
E-NO | Entergy New Orleans, LLC | OpCo | Operating Company |
E-TX | Entergy Texas, Inc. | OPEB | Other post-employment benefits |
EBITDA | Earnings before interest, income taxes, depreciation and amortization | Other O&M | Other non-fuel operation and maintenance expense |
ENP | Entergy Nuclear Palisades, LLC | P&O | Parent & Other |
EPS | Earnings per share | Palisades | Palisades Power Plant (nuclear) |
ETR | Entergy Corporation | Pilgrim | Pilgrim Nuclear Power Station (nuclear, sold August 26, 2019) |
EWC | Entergy Wholesale Commodities | PMR | Performance Management Rider |
FERC | Federal Energy Regulatory Commission | PPA | Power purchase agreement or purchased power agreement |
FFO | Funds from operations | PUCT | Public Utility Commission of Texas |
FRP | Formula rate plan | RICE | Reciprocating Internal Combustion Engine |
GAAP | U.S. generally accepted accounting principles | RFP | Request for proposals |
Grand Gulf or GGNS | Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by SERI | ROE | Return on equity |
Indian Point 1 | Indian Point Energy Center Unit 1 (nuclear) (shut down in 1974) | ROIC | Return on invested capital |
Indian Point 2 or IP2 | Indian Point Energy Center Unit 2 (nuclear) | RS Cogen | RS Cogen facility (CCGT cogeneration) |
Indian Point 3 or IP3 | Indian Point Energy Center Unit 3 (nuclear) | RSP | Rate Stabilization Plan (E-LA Gas) |
IPEC | Indian Point Energy Center (nuclear) | S&P | Standard & Poor's |
ISES 2 | Unit 2 of Independence Steam Electric Station (coal) | SCPS | St. Charles Power Station (CCGT) |
IRS | Internal Revenue Service | SEC | U.S. Securities and Exchange Commission |
SERI | System Energy Resources, Inc. | ||
TCRF | Transmission cost recovery factor | ||
Union | Union Power Station (CCGT) | ||
UPSA | Unit Power Sales Agreement | ||
Vermont Yankee | Vermont Yankee Nuclear Power Station (nuclear, sold January 11, 2019) | ||
WACC | Weighted-average cost of capital | ||
G: Other GAAP to Non-GAAP Reconciliations
Appendix G-1 and Appendix G-2 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure.
Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures - ROIC, ROE | |||
($ in millions except where noted) | Third Quarter | ||
2019 | 2018 | ||
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months | (A) | 790 | 435 |
Preferred dividends | 16 | 14 | |
Tax effected interest expense | 548 | 520 | |
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months adjusted for preferred dividends and tax effected interest expense | (B) | 1,354 | 969 |
Adjustments in prior quarters | (123) | (586) | |
Adjustments | (141) | 105 | |
Total adjustments | (C) | (264) | (481) |
EWC preferred dividends and tax-effected interest expense, rolling 12 months | 27 | 27 | |
Total adjustments, including preferred dividends and tax effected interest expense (non-GAAP) | (D) | (237) | (454) |
Adjusted earnings, rolling 12 months (non-GAAP) | (A-C) | 1,054 | 916 |
Adjusted earnings, rolling 12 months including preferred dividends and tax- effected interest expense (non-GAAP) | (B-D) | 1,591 | 1,423 |
Average invested capital | (E) | 28,413 | 26,107 |
Average common equity | (F) | 9,224 | 8,551 |
As-reported ROIC | (B/E) | 4.8% | 3.7% |
Adjusted ROIC (non-GAAP) | [(B-D)/E] | 5.6% | 5.5% |
As-reported ROE | (A/F) | 8.6% | 5.1% |
Adjusted ROE (non-GAAP) | [(A-C)/F] | 11.4% | 10.7% |
Calculations may differ due to rounding |
Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures – Debt Ratios excluding Securitization Debt; Gross Liquidity; FFO to Debt, excluding Securitization Debt; FFO to Debt, excluding Securitization Debt, Return of Unprotected Excess ADIT, and Severance and Retention Payments Associated with Exit of EWC | |||
($ in millions except where noted) | Third Quarter | ||
2019 | 2018 | ||
Total debt | (A) | 19,441 | 18,485 |
Less securitization debt | (B) | 338 | 463 |
Total debt, excluding securitization debt | (C) | 19,103 | 18,022 |
Less cash and cash equivalents | (D) | 956 | 988 |
Net debt, excluding securitization debt | (E) | 18,147 | 17,034 |
Total capitalization | (F) | 29,730 | 27,095 |
Less securitization debt | (B) | 338 | 463 |
Total capitalization, excluding securitization debt | (G) | 29,392 | 26,632 |
Less cash and cash equivalents | (D) | 956 | 988 |
Net capital, excluding securitization debt | (H) | 28,436 | 25,644 |
Debt to capital | (A/F) | 65.4% | 68.2% |
Debt to capital, excluding securitization debt (non-GAAP) | (C/G) | 65.0% | 67.7% |
Net debt to net capital, excluding securitization debt (non-GAAP) | (E/H) | 63.8% | 66.4% |
Revolver capacity | (I) | 4,115 | 3,653 |
Gross liquidity (non-GAAP) | (D+I) | 5,071 | 4,641 |
Entergy Corporation notes: | |||
Due September 2020 | 450 | 450 | |
Due July 2022 | 650 | 650 | |
Due September 2026 | 750 | 750 | |
Total parent long-term debt | (J) | 1,850 | 1,850 |
Revolver draw | (K) | 155 | 630 |
Commercial paper | (L) | 1,918 | 1,947 |
Unamortized debt issuance and discounts | (M) | (9) | (10) |
Total parent debt | (J+K+L+M) | 3,914 | 4,417 |
Parent debt to total debt, excluding securitization debt (non-GAAP) | [(J+K+L+M)/C] | 20.5% | 24.5% |
Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures – Debt Ratios excluding Securitization Debt; Gross Liquidity; FFO to Debt, excluding Securitization Debt; FFO to Debt, excluding Securitization Debt, Return of Unprotected Excess ADIT, and Severance and Retention Payments Associated with Exit of EWC (continued) | |||
($ in millions except where noted) | Third Quarter | ||
2019 | 2018 | ||
Total debt | (A) | 19,441 | 18,485 |
Less securitization debt | (B) | 338 | 463 |
Total debt, excluding securitization debt | (C) | 19,103 | 18,022 |
Net cash flow provided by operating activities, rolling 12 months | (D) | 2,644 | 2,770 |
AFUDC – borrowed funds, rolling 12 months | (E) | (67) | (57) |
Working capital items in net cash flow provided by operating activities (rolling 12 months): | |||
Receivables | 21 | (53) | |
Fuel inventory | (18) | 26 | |
Accounts payable | (158) | 258 | |
Taxes accrued | (7) | 10 | |
Interest accrued | 12 | (3) | |
Other working capital accounts | (97) | (9) | |
Securitization regulatory charges | 120 | 125 | |
Total | (F) | (127) | 354 |
FFO, rolling 12 months (non-GAAP) | (G)=(D+E-F) | 2,704 | 2,359 |
FFO to debt, excluding securitization debt (non-GAAP) | (G/C) | 14.2% | 13.1% |
Estimated return of unprotected excess ADIT (rolling 12 months pre-tax) | (H) | 469 | 342 |
Severance and retention payments associated with exit of EWC (rolling 12 months pre-tax) | (I) | 183 | - |
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC (non-GAAP) | [(G+H+I)/(C)] | 17.6% | 15.0% |
Calculations may differ due to rounding |
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SOURCE Entergy Corporation
Article Date
10/30/2019Entergy Announces Quarterly Dividend Payment to Shareholders
Source: PR Newswire
NEW ORLEANS, Oct. 25, 2019 /PRNewswire/ -- The board of directors of Entergy Corporation (NYSE: ETR) has approved a quarterly dividend payment of $0.93 per share on the company's common stock. The dividend is payable Dec. 2, 2019, to shareholders of record as of Nov. 7, 2019.
Entergy has paid a common stock dividend to shareholders continuously since 1988.
About Entergy Corporation
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,500 employees.
entergy.com
facebook.com/entergy
Twitter: @Entergy
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SOURCE Entergy Corporation
Article Date
10/25/2019Entergy Announces Third Quarter Earnings Conference Call
Source: PR Newswire
NEW ORLEANS, Oct. 23, 2019 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) will report third quarter earnings results before market open on Wednesday, Oct. 30, 2019, and host a teleconference at 10:00 a.m. CT that day to discuss the earnings announcement and the company's financial performance. The teleconference may be accessed by dialing 844-309-6569, conference ID 8727128, no more than 15 minutes prior to the start of the call or by visiting Entergy's website at entergy.com. From time to time, Entergy posts new and/or revised materials on its website and on social media, and anticipates doing so in connection with this event. The presentation slides will be available on Entergy's website before market open on the day of the call. A replay of the teleconference will be available until November 6, 2019, by dialing 855-859-2056, conference ID 8727128.
About Entergy Corporation
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and approximately 13,500 employees.
Additional investor information can be accessed at entergy.com/investor_relations
View original content to download multimedia:http://www.prnewswire.com/news-releases/entergy-announces-third-quarter-earnings-conference-call-300943866.html
SOURCE Entergy Corporation
Article Date
10/23/20199/30/2019 - Entergy Corporation Chairman and CEO to Present at Wolfe Research Utilities & Energy Conference
Entergy Corporation Chairman and CEO to Present at Wolfe Research Utilities & Energy Conference
Source: PR Newswire
NEW ORLEANS, Sept. 30, 2019 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) Chairman and Chief Executive Officer Leo Denault plans to provide a presentation as part of a panel discussion on Thursday, Oct. 3, 2019, during the Wolfe Research Utilities & Energy Conference. The presentation is expected to start at approximately 8:45 a.m. ET. A live webcast will be available on the Investor Relations section of Entergy's corporate website at entergy.com. A replay of the webcast will be available and archived on the website for approximately 30 days. Presentation slides will be posted on the Investor Relations section of Entergy's corporate website at entergy.com before market open on Thursday, Oct. 3.
About Entergy Corporation
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and approximately 13,500 employees.
Additional investor information can be accessed at entergy.com/investor_relations
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SOURCE Entergy Corporation
Article Date
9/30/20199/18/2019 - Dow Jones Sustainability Index Recognizes Entergy's Action Plan for Creating Sustainable Value
Dow Jones Sustainability Index Recognizes Entergy's Action Plan for Creating Sustainable Value
Source: PR Newswire
NEW ORLEANS, Sept. 18, 2019 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) has earned a place on the 2019 Dow Jones Sustainability North America Index, one of just four U.S. companies in the index's Electric Utilities sector named to the list. Entergy is the only U.S. electric utility in the sector to be included on the index for 18 consecutive years.
"As we work to become the premier utility, we are honored to be recognized by the DJSI for the actions taken not only to advance our core business of providing safe, reliable, affordable and increasingly clean energy to our customers, but also to create sustainable value for our customers, employees, communities and owners," said Leo Denault, Entergy's chairman and CEO. "Sustainability helps ensure that every decision we make as a business not only serves the needs of one stakeholder but benefits all. This index acknowledges Entergy's solid foundation and forward-thinking strategy for a bright, sustainable future."
The DJSI evaluates the sustainability of leading companies worldwide. The North America Index tracks the performance of the top 20% of the 600 largest North American companies in the S&P Global Broad Market Index that lead the field in sustainable business practices. Only companies that excel in developing and implementing long-term economic, environmental and social strategies and actions are included on the index. Entergy earned perfect scores in the areas of materiality, policy influence, climate strategy, water-related risks, and corporate citizenship & philanthropy and top decile performance in the areas of corporate governance, codes of business conduct, transmission & distribution, and labor practice indicators.
Learn more about Entergy's sustainable business practices by reviewing "When does 1 = more?," the company's integrated report that summarizes its economic, environmental and social performance for the year. Some of the 2018 highlights include:
Supporting information on sustainability at Entergy can be found at entergy.com/sustainability and in the company's renewed environmental commitment, "Climate Scenario Analysis and Evaluation of Risks and Opportunities." Learn more about this year's Dow Jones Sustainability Index here.
About Entergy Corporation
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and approximately 13,500 employees.
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, Entergy's plans and expectations with respect to its current operational and capital plans, greenhouse gas reduction goals and strategies, and other statements of Entergy's plans, beliefs or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy's most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and Entergy's other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) risks associated with operating nuclear facilities, including plant relicensing, operating and regulatory costs and risks; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning Entergy's nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with strategic transactions that Entergy or its subsidiaries may undertake, including the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental or energy policies; and (i) the effects of technological changes and changes in commodity markets, capital markets or economic conditions; and (j) impacts from a terrorist attack, cybersecurity threats, data security breaches or other attempts to disrupt Entergy's business or operations, and other catastrophic events.
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SOURCE Entergy Corporation
Article Date
9/18/2019Entergy Completes Sale of Pilgrim Nuclear Power Station to Holtec
Source: PR Newswire
PLYMOUTH, Mass., Aug. 26, 2019 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) today completed the sale of the subsidiary that owns the Pilgrim Nuclear Power Station to a Holtec International subsidiary, which plans to complete major decommissioning activities at the site decades sooner than if Entergy had continued to own the facility. Pilgrim was shut down permanently by Entergy on May 31, 2019, after providing electricity safely to the region for more than 46 years.
Entergy and Holtec announced the Pilgrim sale agreement in August 2018, and the U.S. Nuclear Regulatory Commission approved the transfer of Pilgrim's licenses to Holtec on Aug. 22, 2019. In its order, the NRC found that Holtec possesses the required technical and financial qualifications to own and decommission Pilgrim safely and in accordance with all NRC requirements. "The successful Pilgrim transaction demonstrates continued progress on Entergy's exit from merchant power markets," said Entergy Chairman and CEO Leo Denault. "With our previously-announced signed agreements for the post-shutdown sales of Indian Point and Palisades nuclear power plants in 2021 and 2022, respectively, we remain on track to accomplish our exit plan."
"Protecting public health, safety, and the environment is the foundation upon which all Pilgrim decommissioning work will occur," said Holtec's President & CEO Dr. Kris Singh. "We are committed to engaging with stakeholders at the local and state levels to ensure a smooth flow of information throughout the decommissioning process. The cutting-edge technologies we use will ensure maximum safety for our employees and communities and enable the site to be decommissioned decades sooner than if Pilgrim had remained under Entergy's ownership."
The transaction closed on terms consistent with Entergy's expectations and no contribution to the nuclear decommissioning trust was required. For Entergy, the transaction will result in a pre-tax book charge to earnings in an amount expected to be consistent with its previous disclosures. The estimated charge will be recorded in the third quarter 2019 and will be included in Entergy Wholesale Commodities as-reported earnings.
Entergy owns and operates five nuclear power units in its regulated utility business, and is committed to the continued operation of those resources. The regulated utility's nuclear power plants are located in Louisiana, Arkansas and Mississippi, and have more than 5,000 megawatts of clean, reliable and economic electricity generating capacity for customers in those regions.
About Pilgrim Nuclear Power Station and Entergy
The Pilgrim Nuclear Power Station currently employs about 230 people. Pilgrim began generating electricity in 1972 and was permanently shut down on May 31, 2019. Entergy purchased the plant in 1999 from Boston Edison. Additional information is available at pilgrimpower.com.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and nearly 13,700 employees. Additional information is available at entergy.com.
About Holtec International
Holtec International is a privately held energy technology company with operation centers in Florida, New Jersey, Ohio and Pennsylvania in the U.S., and globally in Brazil, Dubai, India, South Africa, Spain, U.K. and Ukraine. Holtec's principal business concentration is in the nuclear power industry. Holtec has played a preeminent role since the 1980s in expanding nuclear plants' wet spent fuel storage capacity at over 110 reactor units in the U.S. and abroad. Dry storage and transport of nuclear fuel is another area in which Holtec is recognized as the foremost innovator and industry leader with a dominant market share and an active market presence at over 115 reactor units around the globe. Among the Company's pioneering endeavors is the world's first below-ground Consolidated Interim Storage Facility being developed in New Mexico and a 160-Megawatt walk away safe small modular reactor, SMR-160. The SMR-160 is developed to bring cost competitive carbon-free energy to all corners of the earth. Holtec is also a major supplier of special-purpose pressure vessels and critical-service heat exchange equipment such as air-cooled condensers, steam generators, feedwater heaters, and water-cooled condensers. Virtually all products produced by the company are built in its three large manufacturing plants in the U.S. and one in India. Thanks to a solid record of consistent profitability and steady growth since its founding in 1986, Holtec has no history of any long-term debt and enjoys a platinum credit rating from the financial markets. Nearly 100 U.S. and international patents protect the Company's intellectual property from predation by its global competitors and lend predictable stability to its business base.
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, Entergy's plans and expectations with respect to its planned exit from the merchant nuclear power business, and other statements of Entergy's plans, beliefs or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy's most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and Entergy's other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) risks associated with operating nuclear facilities, including plant relicensing, operating and regulatory costs and risks; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning Entergy's nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with strategic transactions that Entergy or its subsidiaries may undertake, including the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental or energy policies; and (i) the effects of technological changes and changes in commodity markets, capital markets or economic conditions; and (j) impacts from a terrorist attack, cybersecurity threats, data security breaches or other attempts to disrupt Entergy's business or operations, and other catastrophic events.
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SOURCE Entergy Corporation
Article Date
8/26/2019Pilgrim License Transfer Approved by Nuclear Regulatory Commission
Source: PR Newswire
PLYMOUTH, Mass., Aug. 23, 2019 /PRNewswire/ -- The U.S. Nuclear Regulatory Commission yesterday approved the application to transfer the licenses for the Pilgrim Nuclear Power Station from Entergy Corporation (NYSE: ETR) to a Holtec International subsidiary for decommissioning, paving the way for completion of the plant's sale to Holtec. The companies jointly filed a License Transfer Application with the NRC in November 2018, requesting approval for the transfer of Pilgrim, along with the plant's Nuclear Decommissioning Trust (NDT) and decommissioning liability, to Holtec.
"The sale of Pilgrim is another important milestone in Entergy's exit from merchant power markets, with previously announced signed agreements for the sale of Indian Point and Palisades following shutdowns in 2021 and 2022, respectively," said Entergy's Chairman and Chief Executive Officer Leo Denault. "We thank all of our employees at Pilgrim for their dedication and service over many decades, and we wish the best to all of those who are transitioning to work on decommissioning the Pilgrim nuclear facility. Community stakeholders and transitioning employees will benefit from a facility that is promptly dismantled and decommissioned safely."
In its order, the NRC found that Holtec possesses the required technical and financial qualifications to own and decommission Pilgrim safely and in accordance with all NRC requirements.
About Pilgrim Nuclear Power Station and Entergy
The Pilgrim Nuclear Power Station currently employs about 230 people. Pilgrim began generating electricity in 1972 and was permanently shut down on May 31, 2019. Entergy purchased the plant in 1999 from Boston Edison. Additional information is available at pilgrimpower.com.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and nearly 13,700 employees. Additional information is available at entergy.com.
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SOURCE Entergy Corporation
Article Date
8/23/20197/31/2019 - Entergy Reports Second Quarter Earnings
Entergy Reports Second Quarter Earnings
Source: PR Newswire
NEW ORLEANS, July 31, 2019 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported second quarter 2019 earnings per share of $1.22 on an as-reported basis and $1.35 on an adjusted basis (non-GAAP).
"Our results for the quarter keep us well-positioned to achieve our full-year financial guidance," said Entergy Chairman and Chief Executive Officer Leo Denault. "With a track record of success, clarity in our vision, and confidence in our strategy going forward, we are raising our 2020 and 2021 adjusted EPS outlooks and narrowing our adjusted EPS ranges across our forecast period."
Business highlights included the following:
Consolidated Earnings (GAAP and Non-GAAP Measures) | ||||||
Second Quarter | Year-to-Date | |||||
2019 | 2018 | Change | 2019 | 2018 | Change | |
(After-tax, $ in millions) | ||||||
As-reported earnings | 236 | 245 | (9) | 491 | 378 | 113 |
Less adjustments | (26) | (14) | (12) | 71 | (32) | 103 |
Adjusted earnings (non-GAAP) | 262 | 259 | 3 | 420 | 410 | 10 |
Estimated weather in billed sales | 12 | 21 | (9) | (12) | 37 | (48) |
(After-tax, per share in $) | ||||||
As-reported earnings | 1.22 | 1.34 | (0.12) | 2.54 | 2.08 | 0.46 |
Less adjustments | (0.13) | (0.08) | (0.05) | 0.36 | (0.18) | 0.54 |
Adjusted earnings (non-GAAP) | 1.35 | 1.42 | (0.07) | 2.18 | 2.26 | (0.08) |
Estimated weather in billed sales | 0.06 | 0.11 | (0.05) | (0.06) | 0.20 | (0.26) |
Calculations may differ due to rounding |
Consolidated Results
For second quarter 2019, the company reported earnings of $236 million, or $1.22 per share, on an as-reported basis and earnings of $262 million, or $1.35 per share, on an adjusted basis. This compared to second quarter 2018 earnings of $245 million, or $1.34 per share, on an as-reported basis and earnings of $259 million, or $1.42 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 and a comprehensive analysis of quarterly and year-to-date variances by business is provided in Appendix B.
Business Segment Results
Utility
For second quarter 2019, the Utility business reported earnings attributable to Entergy Corporation of $331 million, or $1.70 per share, on both an as-reported and an adjusted basis. This compared to second quarter 2018 earnings of $376 million, or $2.05 per share, on an as-reported basis and $333 million, or $1.82 per share, on an adjusted basis. Drivers for the quarter included:
These increases were partially offset by:
On a per share basis, 2019 results reflected higher shares outstanding from settlement of the company's equity forward.
Appendix C contains additional details on Utility financial and operating measures.
Parent & Other
For second quarter 2019, Parent & Other reported a loss of $(69 million), or (35) cents per share, on both an as-reported and an adjusted basis. This compared to a loss of $(73 million), or (40) cents per share, on both an as-reported and an adjusted basis in second quarter 2018.
Entergy Wholesale Commodities
For second quarter 2019, EWC recorded a loss attributable to Entergy Corporation of $(26 million), or (13) cents per share on an as-reported basis. This compared to a second quarter 2018 loss of $(57 million), or (31) cents per share, on an as-reported basis.
Second quarter 2019 earnings reflected lower impairment charges as compared to a year ago. EWC also recorded higher gains on decommissioning trust funds. These items were partially offset by lower revenue due to the shutdown of Pilgrim and tax benefits incurred in second quarter 2018.
Appendix D contains additional details on EWC financial and operating measures, including reconciliation for non-GAAP EWC adjusted EBITDA.
Earnings per Share Guidance and Outlook
Entergy narrowed its 2019 adjusted EPS guidance range to $5.15 to $5.45 per share from $5.10 to $5.50.
In addition, with its customers in mind, the company identified investment opportunities to improve reliability and enable new customer products and services. Combined with non-fuel O&M efficiencies, customers will receive an improved level of service with minimal bill impacts. As a result, the company is increasing its 2020 and 2021 adjusted EPS outlook ranges to $5.45 to $5.75 and $5.80 to $6.10, respectively.
See webcast presentation slides for additional details.
The company has provided 2019 earnings guidance and 2020 and 2021 outlooks 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 or outlooks to guidance or outlooks 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 periods. One such adjustment will be the exclusion of EWC earnings from Entergy adjusted EPS. We currently estimate that the contribution of EWC to Entergy's as-reported EPS will be approximately (95) cents, (35) cents and $(1.35) per share in 2019, 2020 and 2021, respectively. These estimates are subject to substantial uncertainty due to, among other things, the potential effects of the strategic decision to exit the EWC business.
Earnings Teleconference
A teleconference will be held at 10:00 a.m. Central Time on Wednesday, July 31, 2019, to discuss Entergy's quarterly earnings announcement and the company's financial performance. The teleconference may be accessed by visiting Entergy's website at www.entergy.com or by dialing 844-309-6569, conference ID 7299636, no more than 15 minutes prior to the start of the call. The webcast slide presentation is also posted to Entergy's website concurrent with this release, which was issued before market open on the day of the call. A replay of the teleconference will be available on Entergy's website at www.entergy.com and by telephone. The telephone replay will be available through August 7, 2019, by dialing 855-859-2056, conference ID 7299636.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy has annual revenues of approximately $11 billion and nearly 13,700 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 slide 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 & Other Information, which provides investors with key updates of certain regulatory proceedings and important milestones on the execution of its strategy. While some of this information may be considered material information, investors should not rely exclusively on this page for all relevant company information.
For definitions of certain operating measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the earnings release materials, see Appendix F.
Non-GAAP Financial Measures
This news release contains non-GAAP financial measures, which are generally numerical measures of a company's performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Entergy has provided quantitative reconciliations within this release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Entergy reports earnings using the non-GAAP measure of Entergy adjusted earnings, which excludes the effect of certain "adjustments," including the removal of the Entergy Wholesale Commodities segment in light of the company's decision to exit the merchant power business. Adjustments are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as the results of the EWC segment, significant tax items and other items such as certain costs, expenses, or other specified items. In addition to reporting GAAP consolidated earnings on a per share basis, Entergy reports its adjusted earnings on a per share basis. These per share measures represent the applicable earnings amount divided by the diluted average number of common shares outstanding for the period.
Management uses the non-GAAP financial measures of adjusted earnings and adjusted earnings per share for, among other things, financial planning and analysis; reporting financial results to the board of directors, employees, stockholders, analysts and investors; and internal evaluation of financial performance. Entergy believes that these non-GAAP financial measures provide useful information to investors in evaluating the ongoing results of Entergy's business, comparing period to period results, and comparing Entergy's financial performance to the financial performance of other companies in the utility sector.
Other non-GAAP measures, including adjusted EBITDA; adjusted ROE; adjusted ROIC; gross liquidity; debt to capital, excluding securitization debt; net debt to net capital, excluding securitization debt; parent debt to total debt, excluding securitization debt; FFO; FFO to debt, excluding securitization debt; and FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC, are measures Entergy uses internally for management and board discussions and to gauge the overall strength of its business. Entergy believes the above data provides useful information to investors in evaluating Entergy's ongoing financial results and flexibility and assists investors in comparing Entergy's credit and liquidity to the credit and liquidity of others in the Utility sector. In addition, other financial measures including net income (or earnings), adjusted for preferred dividends and tax-effected interest expense; return on average invested capital; and return on average common equity are included on both an adjusted and as-reported basis. In each case, the metrics defined as "adjusted" (other than EWC's adjusted EBITDA) would exclude the effect of adjustments as defined above. EWC's adjusted EBITDA represents EWC's earnings before interest, taxes, and depreciation and amortization, and also excludes decommissioning expense.
These non-GAAP financial measures reflect an additional way of viewing aspects of Entergy's operations that, when viewed with Entergy's GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting Entergy's business. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. Investors are strongly encouraged to review Entergy's consolidated financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Although certain of these measures are intended to assist investors in comparing Entergy's performance to other companies in the utility sector, non-GAAP financial measures are not standardized; therefore, it might not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
Cautionary Note Regarding Forward-Looking Statements
In this news release, and from time to time, Entergy Corporation makes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, among other things, Entergy's 2019 earnings guidance; its current financial and operational outlooks; and other statements of Entergy's plans, beliefs or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy's most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and Entergy's other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) risks associated with operating nuclear facilities, including plant relicensing, operating, and regulatory costs and risks; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning Entergy's nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with strategic transactions that Entergy or its subsidiaries may undertake, including the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state, or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental, or energy policies; (i) the effects of technological changes and changes in commodity markets, capital markets or economic conditions; and (j) impacts from a terrorist attack, cybersecurity threats, data security breaches or other attempts to disrupt Entergy's business or operations, and other catastrophic events.
Second Quarter 2019 Earnings Release Appendices and Financial Statements
Appendices
Appendices are presented in this section as follows:
Financial Statements
Financial statements are presented in this section.
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 Second Quarter and Year-to-Date 2019 vs. 2018 (See Appendix A-3 and Appendix A-4 for details on adjustments) | ||||||
Second Quarter | Year-to-Date | |||||
2019 | 2018 | Change | 2019 | 2018 | Change | |
(After-tax, $ in millions) | ||||||
Earnings (loss) | ||||||
Utility | 331 | 376 | (44) | 562 | 591 | (29) |
Parent & Other | (69) | (73) | 4 | (141) | (137) | (4) |
EWC | (26) | (57) | 31 | 71 | (75) | 146 |
Consolidated | 236 | 245 | (9) | 491 | 378 | 113 |
Less adjustments | ||||||
Utility | - | 43 | (43) | - | 43 | (43) |
Parent & Other | - | - | - | - | - | - |
EWC | (26) | (57) | 31 | 71 | (75) | 146 |
Consolidated | (26) | (14) | (12) | 71 | (32) | 103 |
Adjusted earnings (loss) (non-GAAP) | ||||||
Utility | 331 | 333 | (1) | 562 | 548 | 14 |
Parent & Other | (69) | (73) | 4 | (141) | (137) | (4) |
EWC | - | - | - | - | - | - |
Consolidated | 262 | 259 | 3 | 420 | 410 | 10 |
Estimated weather in billed sales | 12 | 21 | (9) | (12) | 37 | (48) |
Diluted average number of common | 194 | 183 | 193 | 182 | ||
(After-tax, per share in $) (a) | ||||||
Earnings (loss) | ||||||
Utility | 1.70 | 2.05 | (0.35) | 2.91 | 3.24 | (0.33) |
Parent & Other | (0.35) | (0.40) | 0.05 | (0.73) | (0.75) | 0.02 |
EWC | (0.13) | (0.31) | 0.18 | 0.36 | (0.41) | 0.77 |
Consolidated | 1.22 | 1.34 | (0.12) | 2.54 | 2.08 | 0.46 |
Less adjustments | ||||||
Utility | - | 0.23 | (0.23) | - | 0.23 | (0.23) |
Parent & Other | - | - | - | - | - | - |
EWC | (0.13) | (0.31) | 0.18 | 0.36 | (0.41) | 0.77 |
Consolidated | (0.13) | (0.08) | (0.05) | 0.36 | (0.18) | 0.54 |
Adjusted earnings (loss) (non-GAAP) | ||||||
Utility | 1.70 | 1.82 | (0.12) | 2.91 | 3.01 | (0.10) |
Parent & Other | (0.35) | (0.40) | 0.05 | (0.73) | (0.75) | 0.02 |
EWC | - | - | - | - | - | - |
Consolidated | 1.35 | 1.42 | (0.07) | 2.18 | 2.26 | (0.08) |
Estimated weather in billed sales | 0.06 | 0.11 | (0.05) | (0.06) | 0.20 | (0.26) |
Calculations may differ due to rounding | |
(a) | Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period. |
See Appendix B for detailed earnings variance analysis. See Appendix A-3 for adjustments by driver.
Appendix A-2 provides a comparative summary of OCF, by business.
Appendix A-2: Consolidated Operating Cash Flow | ||||||
Second Quarter and Year-to-Date 2019 vs. 2018 | ||||||
($ in millions) | ||||||
Second Quarter | Year-to-Date | |||||
2019 | 2018 | Change | 2019 | 2018 | Change | |
Utility | 699 | 626 | 73 | 1,154 | 1,149 | 5 |
Parent & Other | (45) | (58) | 13 | (123) | (115) | (8) |
EWC | (102) | (45) | (57) | 22 | 46 | (24) |
Consolidated | 552 | 523 | 29 | 1,053 | 1,080 | (27) |
Calculations may differ due to rounding |
OCF increased quarter-over-quarter due primarily to a lower amount of unprotected excess ADIT returned to customers, lower nuclear refueling outage spending, and lower ARO spending at EWC. Higher severance and retention payments at EWC partially offset the increase.
Appendix A-3 and Appendix A-4 list adjustments by business. Amounts are shown on both an earnings and EPS basis. Adjustments are included in as-reported earnings consistent with GAAP but are excluded from adjusted earnings. As a result, adjusted earnings is considered a non-GAAP measure.
Appendix A-3: Adjustments by Driver (shown as positive/(negative) impact on earnings or EPS) | ||||||
Second Quarter and Year-to-Date 2019 vs. 2018 | ||||||
(Pre-tax except for income tax effects and total, $ in millions) | ||||||
Second Quarter | Year-to-Date | |||||
2019 | 2018 | Change | 2019 | 2018 | Change | |
(Pre-tax except for income tax effects and total, $ in millions) | ||||||
Utility | ||||||
2012 / 2013 IRS settlement | - | 43 | (43) | - | 43 | (43) |
Total Utility | - | 43 | (43) | - | 43 | (43) |
EWC | ||||||
Income before income taxes | (35) | (86) | 52 | 128 | (105) | 234 |
Income taxes | 9 | 30 | (21) | (57) | 31 | (88) |
Preferred dividend requirements of subsidiaries | (1) | (1) | - | (1) | (1) | - |
Total EWC | (26) | (57) | 31 | 71 | (75) | 146 |
Total adjustments | (26) | (14) | (12) | 71 | (32) | 103 |
(After-tax, per share in $) (b) | ||||||
Utility | ||||||
2012 / 2013 IRS settlement | - | 0.23 | (0.23) | - | 0.23 | (0.23) |
Total Utility | - | 0.23 | (0.23) | - | 0.23 | (0.23) |
EWC | ||||||
Total EWC | (0.13) | (0.31) | 0.18 | 0.36 | (0.41) | 0.77 |
Total adjustments | (0.13) | (0.08) | (0.05) | 0.36 | (0.18) | 0.54 |
Calculations may differ due to rounding | |
(b) | Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period. |
Appendix A-4: Adjustments by Income Statement Line Item (shown as positive/(negative) impact on earnings) | ||||||
Second Quarter and Year-to-Date 2019 vs. 2018 | ||||||
(Pre-tax except for Income taxes and total, $ in millions) | ||||||
Second Quarter | Year-to-Date | |||||
2019 | 2018 | Change | 2019 | 2018 | Change | |
Utility | ||||||
Income taxes | - | 43 | (43) | - | 43 | (43) |
EWC | ||||||
Operating revenues | 290 | 309 | (19) | 723 | 728 | (5) |
Fuel and fuel-related expenses | (26) | (19) | (7) | (51) | (39) | (12) |
Purchased power | (15) | (18) | 3 | (31) | (35) | 4 |
Non-fuel O&M | (200) | (200) | 1 | (401) | (393) | (7) |
Asset write-off and impairments | (16) | (69) | 53 | (90) | (142) | 52 |
Decommissioning expense | (64) | (60) | (4) | (128) | (118) | (9) |
Taxes other than income taxes | (20) | (22) | 2 | (33) | (39) | 6 |
Depreciation/amortization exp. | (38) | (39) | 1 | (76) | (77) | 1 |
Other income (deductions)–other | 64 | 40 | 24 | 232 | 26 | 206 |
Interest exp. and other charges | (9) | (8) | (0) | (18) | (17) | (1) |
Income taxes | 9 | 30 | (21) | (57) | 31 | (88) |
Preferred dividend | (1) | (1) | - | (1) | (1) | - |
Total EWC | (26) | (57) | 31 | 71 | (75) | 146 |
Total adjustments (after-tax) | (26) | (14) | (12) | 71 | (32) | 103 |
Calculations may differ due to rounding |
B: Earnings Variance Analysis
Appendix B-1 and Appendix B-2 provide details of current quarter and year-to-date 2019 versus 2018 as-reported and adjusted earnings variance analysis for Utility, Parent & Other, and EWC.
Appendix B: As-Reported and Adjusted Earnings Variance Analysis (c), (d) | ||||||||||
Second Quarter 2019 vs. 2018 | ||||||||||
(After-tax, per share in $) | ||||||||||
Utility | Parent & Other | EWC | Consolidated | |||||||
As- | Adjusted | As- | Adjusted | As- Reported | As- Reported | Adjusted | ||||
2018 earnings | 2.05 | 1.82 | (0.40) | (0.40) | (0.31) | 1.34 | 1.42 | |||
Operating revenue less: Fuel, fuel-related expenses and gas purchased for resale, Purchased power, and Regulatory charges (credits) | 0.18 | 0.18 | (e) | - | - | (0.10) | (f) | 0.08 | 0.18 | |
Non-fuel O&M | (0.11) | (0.11) | (g) | 0.03 | 0.03 | - | (0.08) | (0.08) | ||
Asset write-offs and impairments | - | - | - | - | 0.23 | (h) | 0.23 | - | ||
Decommissioning expense | (0.01) | (0.01) | - | - | (0.02) | (0.03) | (0.01) | |||
Taxes other than income taxes | (0.03) | (0.03) | - | - | 0.01 | (0.02) | (0.03) | |||
Depreciation/amortization exp. | (0.05) | (0.05) | (i) | - | - | - | (0.05) | (0.05) | ||
Other income (deductions)–other | 0.05 | 0.05 | (j) | (0.01) | (0.01) | 0.10 | (k) | 0.14 | 0.04 | |
Interest exp. and other charges | (0.03) | (0.03) | - | - | - | (0.03) | (0.03) | |||
Income taxes–other | (0.24) | (0.01) | (l) | 0.01 | 0.01 | (0.05) | (m) | (0.28) | - | |
Share effect | (0.11) | (0.11) | (n) | 0.02 | 0.02 | 0.01 | (0.08) | (0.09) | ||
2019 earnings | 1.70 | 1.70 | (0.35) | (0.35) | (0.13) | 1.22 | 1.35 | |||
Appendix B-2: As-Reported and Adjusted Earnings Variance Analysis (c), (d) | ||||||||||
Year-to-Date 2019 vs. 2018 | ||||||||||
(After-tax, per share in $) | ||||||||||
Utility | Parent & Other | EWC | Consolidated | |||||||
As- | Adjusted | As- | Adjusted | As- Reported | As- Reported | Adjusted | ||||
2018 earnings | 3.24 | 3.01 | (0.75) | (0.75) | (0.41) | 2.08 | 2.26 | |||
Operating revenue less: Fuel, fuel-related expenses and gas purchased for resale, Purchased power, and Regulatory charges (credits) | 0.25 | 0.25 | (e) | - | - | (0.06) | (f) | 0.19 | 0.25 | |
Non-fuel O&M | (0.09) | (0.09) | (g) | 0.02 | 0.02 | (0.03) | (0.10) | (0.07) | ||
Asset write-offs and impairments | - | - | - | - | 0.22 | (h) | 0.22 | - | ||
Decommissioning expense | (0.02) | (0.02) | - | - | (0.04) | (0.06) | (0.02) | |||
Taxes other than income taxes | (0.02) | (0.02) | - | - | 0.03 | 0.01 | (0.02) | |||
Depreciation/amortization exp. | (0.09) | (0.09) | (i) | - | - | - | (0.09) | (0.09) | ||
Other income (deductions)–other | 0.08 | 0.08 | (j) | (0.02) | (0.02) | 0.89 | (k) | 0.95 | 0.06 | |
Interest exp. and other charges | (0.05) | (0.05) | (o) | (0.03) | (0.03) | (0.01) | (0.09) | (0.08) | ||
Income taxes–other | (0.21) | 0.02 | (l) | 0.01 | 0.01 | (0.21) | (m) | (0.41) | 0.03 | |
Preferred dividend requirements | (0.01) | (0.01) | - | - | - | (0.01) | (0.01) | |||
Share effect | (0.17) | (0.17) | (n) | 0.04 | 0.04 | (0.02) | (0.15) | (0.13) | ||
2019 earnings | 2.91 | 2.91 | (0.73) | (0.73) | 0.36 | 2.54 | 2.18 | |||
Calculations may differ due to rounding. | |
(c) | Utility revenue and Utility income taxes exclude $61 million in second quarter 2019 and $278 million in second quarter 2018 for the return of unprotected excess ADIT to customers (net effect is neutral to earnings). On a year-to-date basis, Utility revenue and Utility income taxes exclude $122 million in 2019 and $278 million in 2018. |
(d) | EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply and dividing by diluted average number of common shares outstanding for the prior period; income taxes–other represents income tax differences other than the tax effect of individual line items. |
(e) | The second quarter and year-to-date earnings increases were primarily driven by rate activity from E-AR's FRP, E-LA's FRP, E-LA's AMI rider, as well as E-TX's base rate case. Second quarter 2019 also included recovery of the St. Charles Power Station. In addition, in the second quarter and year-to-date 2018, E-LA recorded regulatory charges to return the benefits of the lower effective federal tax rate to customers. Partially offsetting was the net effect of volume/weather primarily due to the effects of weather and lower volume in the unbilled period. |
(f) | The second quarter and year-to-date earnings decreases were due largely to lower revenues due to the shutdown of Pilgrim in May 2019, as well as impacts on fuel expense from EWC plant impairments. The year-to-date decrease was partially offset by higher nuclear energy volume. |
(g) | The second quarter and year-to-date earnings decreases from higher Utility non-fuel O&M reflected higher spending on information technology, initiatives to explore new customer products and services, and fossil-fueled generation due to higher scope of work during outages. These were partially offset by lower E-MS storm damage provisions (offset in operating revenue). The second quarter variance also included higher spending on nuclear operations, including higher outage costs and amortization. The year-to-date variance reflected lower nuclear spending in addition to the items previously noted. |
(h) | The second quarter and year-to-date earnings increases from lower EWC asset write-offs and impairments were due to lower refueling outage costs being impaired in 2019, as well as a gain on the sale of a switchyard at Pilgrim. |
(i) | The second quarter and year-to-date earnings decreases from higher Utility depreciation expense were due primarily to higher plant in service, including the St. Charles Power Station, partially offset by updated Grand Gulf depreciation rates. |
(j) | The second quarter and year-to date earnings increases from Utility other income (deductions)–other were due largely to higher AFUDC-equity funds from higher CWIP in 2019, including the Lake Charles Power Station, Montgomery County Power Station and New Orleans Power Station. Changes in decommissioning trust fund activity also contributed. |
(k) | The second quarter and year-to-date earnings increases from higher EWC other income (deductions)–other were due largely to gains on the decommissioning trust fund investments in 2019. |
(l) | The second quarter and year-to-date as-reported earnings decreases from higher Utility income taxes were primarily due to the settlement of the 2012 / 2013 IRS audit totaling $43 million in second quarter 2018. |
(m) | The second quarter and year-to-date earnings decreases from higher EWC income taxes were primarily due to $13 million in tax benefits from the settlement of the 2012 / 2013 IRS audit in second quarter 2018. The year-to date earnings decrease also reflected an accrual of $29 million of tax expense, which resulted from the sale of Vermont Yankee in January 2019. |
(n) | The second quarter and year-to-date earnings per share decreases from share effect were due to settlement of the equity forward (6.8 million shares settled in December 2018 and 8.4 million shares settled in May 2019). |
(o) | The year-to-date earnings decrease from higher Utility interest expense was largely due to higher debt balances at E-AR and E-LA. |
Utility As-Reported Operating revenue less 2019 vs. 2018 ($ EPS) | ||
2Q | YTD | |
Volume/weather | (0.17) | (0.33) |
Retail electric price Reg. charges for lower tax rate | 0.22 0.11 | 0.34 0.22 |
Other | 0.02 | 0.02 |
Total | 0.18 | 0.25 |
C: Utility Financial and Operating Measures
Appendix C-1 and Appendix C-2 provides comparative summaries of Utility operating and financial measures.
Appendix C-1: Utility Operating and Financial Measures | |||||||||||||
Second Quarter and Year-to-Date 2019 vs. 2018 | |||||||||||||
Second Quarter | Year-to-Date | ||||||||||||
2019 | 2018 | % Change | % Weather | 2019 | 2018 | % Change | % Weather | ||||||
GWh billed | |||||||||||||
Residential | 7,652 | 7,749 | (1.3) | 0.4 | 16,123 | 17,036 | (5.4) | - | |||||
Commercial | 6,841 | 6,943 | (1.5) | (0.4) | 13,264 | 13,675 | (3.0) | (0.9) | |||||
Governmental | 626 | 612 | 2.3 | 2.3 | 1,227 | 1,220 | 0.6 | 0.8 | |||||
Industrial | 11,965 | 12,219 | (2.1) | (2.1) | 23,648 | 23,624 | 0.1 | 0.1 | |||||
Total retail sales | 27,084 | 27,523 | (1.6) | (0.9) | 54,262 | 55,555 | (2.3) | (0.2) | |||||
Wholesale | 3,170 | 2,566 | 23.5 | 6,984 | 5,810 | 20.2 | |||||||
Total sales | 30,254 | 30,089 | 0.5 | 61,246 | 61,365 | (0.2) | |||||||
Number of electric retail customers | |||||||||||||
Residential | 2,489,842 | 2,479,833 | 0.4 | ||||||||||
Commercial | 358,545 | 356,688 | 0.5 | ||||||||||
Governmental | 17,906 | 17,966 | (0.3) | ||||||||||
Industrial | 41,416 | 43,212 | (4.2) | ||||||||||
Total retail customers | 2,907,709 | 2,897,699 | 0.3 | ||||||||||
Non-fuel O&M per MWh | $22.79 | $22.05 | 3.4 | $21.44 | $21.05 | 1.8 | |||||||
On a weather-adjusted basis for second quarter 2019, billed sales decreased (0.9) percent, including lower industrial and commercial sales. Industrial billed sales volume decreased (2.1) percent driven by lower sales to cogeneration customers as well as existing customers. This was partially offset by continued growth from new and expansion customers. Residential billed sales increased 0.4 percent.
Appendix C-2: Utility Operating Measures | ||||
Twelve Months Ended June 30, 2019 vs. 2018 | ||||
Twelve Months Ended June 30 | ||||
2019 | 2018 | % Change | % Weather | |
GWh billed | ||||
Residential | 36,194 | 35,893 | 0.8 | 0.3 |
Commercial | 29,015 | 29,096 | (0.3) | (0.4) |
Governmental | 2,588 | 2,529 | 2.3 | 1.9 |
Industrial | 48,408 | 48,067 | 0.7 | 0.7 |
Total retail sales | 116,205 | 115,585 | 0.5 | 0.3 |
Calculations may differ due to rounding | |
Certain prior year data has been reclassified to conform with current year presentation | |
(p) | The effects of weather were estimated using heating degree days and cooling degree days for the billing cycles from certain locations within each jurisdiction and comparing to "normal" weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change. |
D: EWC Financial and Operating Measures
Appendix D-1 provides a comparative summary of EWC adjusted EBITDA (non-GAAP).
Appendix D-1: EWC Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures | ||||||
($ in millions) | Second Quarter | Year-to-Date | ||||
2019 | 2018 | Change | 2019 | 2018 | Change | |
Net income (loss) | (25) | (56) | 31 | 72 | (74) | 146 |
Add back: interest expense | 9 | 8 | 1 | 18 | 17 | 1 |
Add back: income taxes | (9) | (30) | 21 | 57 | (31) | 88 |
Add back: depreciation and amortization | 38 | 39 | (1) | 76 | 77 | (1) |
Subtract: interest and investment income | 75 | 58 | 17 | 257 | 56 | 201 |
Add back: decommissioning expense | 64 | 60 | 4 | 128 | 118 | 10 |
Adjusted EBITDA (non-GAAP) | 2 | (37) | 39 | 94 | 50 | 44 |
Calculations may differ due to rounding |
Appendix D-2 provides a comparative summary of EWC operating and financial measures.
Appendix D-2: EWC Operating and Financial Measures | ||||||
Second Quarter and Year-to-Date 2019 vs. 2018 | ||||||
Second Quarter | Year-to-Date | |||||
2019 | 2018 | % Change | 2019 | 2018 | % Change | |
Owned capacity (MW) (q) | 3,274 | 3,962 | (17.4) | 3,274 | 3,962 | (17.4) |
GWh billed | 7,258 | 7,281 | (0.3) | 14,461 | 14,277 | 1.3 |
EWC Nuclear Fleet | ||||||
Capacity factor | 92% | 86% | 7.0 | 89% | 85% | 4.7 |
GWh billed | 6,703 | 6,713 | (0.1) | 13,392 | 13,121 | 2.1 |
Production cost per MWh | $24.82 | $17.15 | 44.7 | $21.92 | $17.93 | 22.3 |
Average energy/capacity revenue per MWh | $37.85 | $41.82 | (9.5) | $48.55 | $49.21 | (1.4) |
Refueling outage days | ||||||
Indian Point 2 | - | 20 | - | 33 | ||
Indian Point 3 | 8 | - | 29 | - | ||
Palisades | - | - | - | - | ||
Pilgrim | - | - | - | - | ||
Calculations may differ due to rounding | |
(q) | Second quarter and year-to-date 2019 exclude Pilgrim (688MW), which was shut down May 31, 2019. |
See the appendix in the webcast slide presentation for EWC hedging and price disclosures.
E: Consolidated Financial Measures
Appendix E provides comparative financial measures. Financial measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP financial measures.
Appendix E: GAAP and Non-GAAP Financial Measures | |||
Second Quarter 2019 vs. 2018 (See Appendix G for reconciliation of GAAP to non-GAAP financial measures) | |||
For 12 months ending June 30 | 2019 | 2018 | Change |
GAAP Measures | |||
As-reported ROIC | 5.5% | 3.2% | 2.3% |
As-reported ROE | 10.8% | 3.6% | 7.2% |
Non-GAAP Measures | |||
Adjusted ROIC | 5.5% | 5.2% | 0.3% |
Adjusted ROE | 11.0% | 10.1% | 0.9% |
As of June 30 ($ in millions) | 2019 | 2018 | Change |
GAAP Measures | |||
Cash and cash equivalents | 636 | 813 | (177) |
Revolver capacity | 4,120 | 3,885 | 235 |
Commercial paper | 1,635 | 1,945 | (310) |
Total debt | 19,054 | 17,881 | 1,173 |
Securitization debt | 360 | 483 | (123) |
Debt to capital | 65.5% | 68.5% | (3.0%) |
Off-balance sheet liabilities: | |||
Debt of joint ventures – Entergy's share | 58 | 64 | (6) |
Leases – Entergy's share (r) | - | 429 | (429) |
Power purchase agreements accounted for as leases (r) | - | 136 | (136) |
Total off-balance sheet liabilities | 58 | 629 | (571) |
Non-GAAP Financial Measures | |||
Debt to capital, excluding securitization debt | 65.1% | 67.9% | (2.8%) |
Gross liquidity | 4,756 | 4,698 | 58 |
Net debt to net capital, excluding securitization debt | 64.3% | 66.9% | (2.6%) |
Parent debt to total debt, excluding securitization debt | 19.4% | 24.0% | (4.6%) |
FFO to debt, excluding securitization debt | 11.8% | 15.4% | (3.6%) |
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC | 15.8% | 15.9% | (0.1%) |
(r) | As of January 1, 2019, Entergy adopted ASC 842, the new lease accounting standard. As a result, Entergy re-evaluated all agreements and put all agreements that qualified as operating leases on the balance sheet, and there are no longer any off-balance sheet liabilities for leases. |
F: Definitions and Abbreviations and Acronyms
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 billed | Total number of GWh billed to retail and wholesale customers | |
Non-fuel O&M | Operation and maintenance expenses excluding fuel, fuel-related expenses and gas purchased for resale and purchased power | |
Non-fuel O&M per MWh | Non-fuel O&M per MWh of billed sales | |
Number of electric retail customers | Average number of customers for the quarter | |
EWC Operating and Financial Measures | ||
Adjusted EBITDA (non-GAAP) | Earnings before interest, depreciation and amortization and income taxes and excluding decommissioning expense | |
Average revenue under contract per kW-month (applies to capacity contracts only) | Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and/or auction awards | |
Average revenue per MWh on contracted volumes | Revenue on a per unit basis at which generation output reflected in contracts is expected to be sold to third parties (including offsetting positions) at the minimum contract prices and at forward market prices at a point in time, given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market PPA for Palisades. Revenue will fluctuate due to factors including positive or negative basis differentials and other risk management costs | |
Bundled capacity and energy contracts | A contract for the sale of installed capacity and related energy, priced per MWh sold | |
Capacity contracts | A contract for the sale of the installed capacity product in regional markets managed by NYISO and MISO | |
Capacity factor | Normalized percentage of the period that the nuclear plants generate power | |
Expected sold and market total revenue per MWh | Total energy and capacity revenue on a per unit basis at which total planned generation output and capacity is expected to be sold given contract terms and market prices at a point in time, including positive or negative basis differentials and other risk management costs, divided by total planned MWh of generation, excluding the revenue associated with the amortization of the Palisades below-market PPA | |
Firm LD | Transaction that requires receipt or delivery of energy at a specified delivery point (usually at a market hub not associated with a specific asset) or settles financially on notional quantities; if a party fails to deliver or receive energy, defaulting party must compensate the other party as specified in the contract, a portion of which may be capped through the use of risk management products | |
Appendix F-1: Definitions | ||
EWC Operating and Financial Measures (continued) | ||
GWh billed | Total number of GWh billed to customers and financially-settled instruments | |
Owned capacity (MW) | Installed capacity owned by EWC | |
Percent of capacity sold forward | Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions | |
Percent of planned generation under contract | Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts or options that mitigate price uncertainty that may or may not require regulatory approval or approval of transmission rights or other conditions precedent; positions that are no longer classified as hedges are netted in the planned generation under contract | |
Planned net MW in operation | Amount of installed capacity to generate power and/or sell capacity, assuming intent to shutdown Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022) | |
Planned TWh of generation | Amount of output expected to be generated by EWC resources considering plant operating characteristics and outage schedules, assuming intent to shutdown Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022) | |
Production cost per MWh | Fuel and non-fuel O&M expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation) | |
Refueling outage days | Number of days lost for a scheduled refueling and maintenance outage during the period | |
Unit-contingent | Transaction under which power is supplied from a specific generation asset; if the asset is in operational outage, seller is generally not liable to buyer for any damages, unless the contract specifies certain conditions such as an availability guarantee | |
Financial Measures – GAAP | ||
As-reported ROE | 12-months rolling net income attributable to Entergy Corporation divided by average common equity | |
As-reported ROIC | 12-months rolling net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital | |
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 | |
Leases – Entergy's share | Operating leases held by subsidiaries capitalized at implicit interest rate | |
Revolver capacity | Amount of undrawn capacity remaining on corporate and subsidiary revolvers | |
Securitization debt | Debt associated with securitization bonds issued to recover storm costs from hurricanes Rita, Ike and Gustav at E-TX and Hurricane Isaac at E-NO; the 2009 ice storm at E-AR and investment recovery of costs associated with the cancelled Little Gypsy repowering project at E-LA | |
Total debt | Sum of short-term and long-term debt, notes payable and commercial paper and capital leases on the balance sheet | |
Appendix F-1: Definitions | ||
Financial Measures - Non-GAAP | ||
Adjusted EPS | As-reported EPS excluding adjustments | |
Adjusted ROE | 12-months rolling adjusted net income attributable to Entergy Corporation divided by average common equity | |
Adjusted ROIC | 12-months rolling adjusted net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital | |
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, prepaid taxes and taxes accrued, interest accrued and other working capital accounts) and securitization regulatory charges | |
FFO to debt, excluding securitization debt | 12-months rolling adjusted FFO as a percentage of end of period total debt excluding securitization debt | |
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC | 12-months rolling adjusted FFO as a percentage of end of period total debt excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC | |
Gross liquidity | Sum of cash and revolver capacity | |
Net debt to net capital, excluding securitization debt | Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt | |
Parent debt to total debt, excluding securitization debt | End of period Entergy Corporation debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of consolidated total debt, excluding 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 | ISO | Independent system operator |
AFUDC – borrowed funds | Allowance for borrowed funds used during construction | LPSC | Louisiana Public Service Commission |
AFUDC – equity funds | Allowance for equity funds used during construction | LTM | Last twelve months |
AMI | Advanced metering infrastructure | LTSA | Long-term service agreement |
ANO | Units 1 and 2 of Arkansas Nuclear One owned by E-AR (nuclear) | MISO | Midcontinent Independent System Operator, Inc. |
APSC | Arkansas Public Service Commission | Moody's | Moody's Investor Service |
ARO | Asset retirement obligation | MPSC | Mississippi Public Service Commission |
bps | Basis points | MTEP | MISO Transmission Expansion Planning |
CCGT | Combined cycle gas turbine | Nelson 6 | Unit 6 of Roy S. Nelson plant (coal) |
CCN | Certificate of convenience & necessity | NEPOOL | New England Power Pool |
CCNO | Council of the City of New Orleans, Louisiana | Ninemile 6 | Ninemile Point Unit 6 (CCGT) |
COD | Commercial operation date | Non-fuel O&M | Non-fuel operation and maintenance expense |
CT | Simple cycle combustion turbine | NDT | Nuclear decommissioning trust |
CWIP | Construction work in progress | NRC | Nuclear Regulatory Commission |
DCRF | Distribution cost recovery factor | NYISO | New York Independent System Operator, Inc. |
E-AR | Entergy Arkansas, LLC | NYPA | New York Power Authority |
E-LA | Entergy Louisiana, LLC | NYSE | New York Stock Exchange |
E-MS | Entergy Mississippi, LLC | O&M | Operation and maintenance expense |
E-NO | Entergy New Orleans, LLC | OCF | Net cash flow provided by operating activities |
E-TX | Entergy Texas, Inc. | OpCo | Operating Company |
EBITDA | Earnings before interest, income taxes, depreciation and amortization | OPEB | Other post-employment benefits |
ENGC | Entergy Nuclear Generation Company | P&O | Parent & Other |
ENP | Entergy Nuclear Palisades, LLC | Palisades | Palisades Power Plant (nuclear) |
EPS | Earnings per share | Pilgrim | Pilgrim Nuclear Power Station (nuclear) |
ETR | Entergy Corporation | PPA | Power purchase agreement or purchased power agreement |
EWC | Entergy Wholesale Commodities | PUCT | Public Utility Commission of Texas |
FERC | Federal Energy Regulatory Commission | RICE | Reciprocating Internal Combustion Engine |
FFO | Funds from operations | RFP | Request for proposals |
FRP | Formula rate plan | ROE | Return on equity |
GAAP | U.S. generally accepted accounting principles | ROIC | Return on invested capital |
Grand Gulf or GGNS | Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by SERI | RS Cogen | RS Cogen facility (CCGT cogeneration) |
Indian Point 1 | Indian Point Energy Center Unit 1 (nuclear) (shut down in 1974) | RSP | Rate Stabilization Plan (E-LA Gas) |
Indian Point 2 or IP2 | Indian Point Energy Center Unit 2 (nuclear) | S&P | Standard & Poor's |
Indian Point 3 or IP3 | Indian Point Energy Center Unit 3 (nuclear) | SCPS | St. Charles Power Station (CCGT) |
IPEC | Indian Point Energy Center (nuclear) | SEC | U.S. Securities and Exchange Commission |
ISES 2 | Unit 2 of Independence Steam Electric Station (coal) | SERI | System Energy Resources, Inc. |
IRS | Internal Revenue Service | TCRF | Transmission cost recovery factor |
Union | Union Power Station (CCGT) | ||
UPSA | Unit Power Sales Agreement | ||
Vermont Yankee | Vermont Yankee Nuclear Power Station (nuclear, sold January 11, 2019) | ||
WACC | Weighted-average cost of capital | ||
G: GAAP to Non-GAAP Reconciliations
Appendix G-1 and Appendix G-2 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure.
Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures - ROIC, ROE | |||
($ in millions except where noted) | Second Quarter | ||
2019 | 2018 | ||
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months | (A) | 961 | 297 |
Preferred dividends | 15 | 14 | |
Tax effected interest expense | 543 | 510 | |
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months adjusted for preferred dividends and tax effected interest expense | (B) | 1,519 | 821 |
Adjustments in prior quarters | 8 | (517) | |
Adjustments | (26) | (14) | |
Total adjustments | (C) | (18) | (531) |
EWC preferred dividends and tax-effected interest expense, rolling 12 months | 30 | 24 | |
Total adjustments, including preferred dividends and tax effected interest expense (non-GAAP) | (D) | 12 | (507) |
Adjusted earnings, rolling 12 months (non-GAAP) | (A-C) | 979 | 828 |
Adjusted earnings, rolling 12 months including preferred dividends and tax- effected interest expense (non-GAAP) | (B-D) | 1,507 | 1,328 |
Average invested capital | (E) | 27,586 | 25,480 |
Average common equity | (F) | 8,910 | 8,197 |
As-reported ROIC | (B/E) | 5.5% | 3.2% |
Adjusted ROIC (non-GAAP) | [(B-D)/E] | 5.5% | 5.2% |
As-reported ROE | (A/F) | 10.8% | 3.6% |
Adjusted ROE (non-GAAP) | [(A-C)/F] | 11.0% | 10.1% |
Calculations may differ due to rounding |
Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures – Debt Ratios excluding Securitization Debt; Gross Liquidity; FFO to Debt, excluding Securitization Debt; FFO to Debt, excluding Securitization Debt, Return of Unprotected Excess ADIT, and Severance and Retention Payments Associated with Exit of EWC | |||
($ in millions except where noted) | Second Quarter | ||
2019 | 2018 | ||
Total debt | (A) | 19,054 | 17,881 |
Less securitization debt | (B) | 360 | 483 |
Total debt, excluding securitization debt | (C) | 18,694 | 17,398 |
Less cash and cash equivalents | (D) | 636 | 813 |
Net debt, excluding securitization debt | (E) | 18,058 | 16,585 |
Total capitalization | (F) | 29,071 | 26,102 |
Less securitization debt | (B) | 360 | 483 |
Total capitalization, excluding securitization debt | (G) | 28,711 | 25,619 |
Less cash and cash equivalents | (D) | 636 | 813 |
Net capital, excluding securitization debt | (H) | 28,075 | 24,806 |
Debt to capital | (A/F) | 65.5% | 68.5% |
Debt to capital, excluding securitization debt (non-GAAP) | (C/G) | 65.1% | 67.9% |
Net debt to net capital, excluding securitization debt (non-GAAP) | (E/H) | 64.3% | 66.9% |
Revolver capacity | (I) | 4,120 | 3,885 |
Gross liquidity (non-GAAP) | (D+I) | 4,756 | 4,698 |
Entergy Corporation notes: | |||
Due September 2020 | 450 | 450 | |
Due July 2022 | 650 | 650 | |
Due September 2026 | 750 | 750 | |
Total parent long-term debt | (J) | 1,850 | 1,850 |
Revolver draw | (K) | 150 | 390 |
Commercial paper | (L) | 1,635 | 1,945 |
Unamortized debt issuance and discounts | (M) | (9) | (11) |
Total parent debt | (J+K+L+M) | 3,626 | 4,174 |
Parent debt to total debt, excluding securitization debt (non-GAAP) | [(J+K+L+M)/C] | 19.4% | 24.0% |
Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures – Debt Ratios excluding Securitization Debt; Gross Liquidity; FFO to Debt, excluding Securitization Debt; FFO to Debt, excluding Securitization Debt, Return of Unprotected Excess ADIT, and Severance and Retention Payments Associated with Exit of EWC (continued) | |||
($ in millions except where noted) | Second Quarter | ||
2019 | 2018 | ||
Total debt | (A) | 19,054 | 17,881 |
Less securitization debt | (B) | 360 | 483 |
Total debt, excluding securitization debt | (C) | 18,694 | 17,398 |
Net cash flow provided by operating activities, rolling 12 months | (D) | 2,358 | 2,884 |
AFUDC – borrowed funds, rolling 12 months | (E) | (67) | (53) |
Working capital items in net cash flow provided by operating activities (rolling 12 months): | |||
Receivables | 17 | (149) | |
Fuel inventory | 24 | (1) | |
Accounts payable | (19) | 190 | |
Taxes accrued | 9 | 28 | |
Interest accrued | 7 | 3 | |
Other working capital accounts | (81) | (48) | |
Securitization regulatory charges | 121 | 123 | |
Total | (F) | 78 | 146 |
FFO, rolling 12 months (non-GAAP) | (G)=(D+E-F) | 2,213 | 2,685 |
FFO to debt, excluding securitization debt (non-GAAP) | (G/C) | 11.8% | 15.4% |
Estimated return of unprotected excess ADIT (rolling 12 months pre-tax) | (H) | 651 | 76 |
Severance and retention payments associated with exit of EWC (rolling 12 months pre-tax) | (I) | 97 | - |
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC (non-GAAP) | [(G+H+I)/(C)] | 15.8% | 15.9% |
Calculations may differ due to rounding |
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SOURCE Entergy Corporation
Article Date
7/31/20197/26/2019 - Entergy Declares Dividend
Entergy Declares Dividend
Source: PR Newswire
NEW ORLEANS, July 26, 2019 /PRNewswire/ -- The Board of Directors of Entergy Corporation (NYSE: ETR) has declared a quarterly dividend of $0.91 per common share. The payment date is Sept. 3, 2019, to shareholders of record on Aug. 8, 2019.
About Entergy Corporation
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and nearly 13,700 employees.
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SOURCE Entergy Corporation
Article Date
7/26/2019Entergy Announces Second Quarter Earnings Conference Call
Source: PR Newswire
NEW ORLEANS, July 24, 2019 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) will report second quarter earnings results before market open on Wednesday, July 31, 2019, and host a teleconference at 10:00 a.m. CT that day to discuss the earnings announcement and the company's financial performance. The teleconference may be accessed by dialing 844-309-6569, conference ID 7299636, no more than 15 minutes prior to the start of the call or by visiting Entergy's website at entergy.com. From time to time, Entergy posts new and/or revised materials on its website and on social media, and anticipates doing so in connection with this event. The presentation slides will be available on Entergy's website before market open on the day of the call. A replay of the teleconference will be available until August 7, 2019, by dialing 855-859-2056, conference ID 7299636.
About Entergy Corporation
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and nearly 13,700 employees.
Additional investor information can be accessed at entergy.com/investor_relations
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SOURCE Entergy Corporation
Article Date
7/24/20196/20/2019 - Entergy Recommends Shareholders Do Not Tender in Response to Mini-Tender Offer by TRC Capital Corporation
Entergy Recommends Shareholders Do Not Tender in Response to Mini-Tender Offer by TRC Capital Corporation
Source: PR Newswire
NEW ORLEANS, June 20, 2019 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) has been notified of an unsolicited mini-tender offer by TRC Capital Corporation to purchase up to 1 million shares of Entergy common stock, representing approximately 0.53% of Entergy's outstanding shares as of April 30, 2019.
TRC's offer price of $97.50 is 4.45% below the closing price of Entergy's common stock on June 14, 2019, the last trading day prior to the commencement of the offer.
Entergy does not endorse TRC's unsolicited mini-tender offer and is in no way associated with TRC, its mini-tender offer or its mini-tender offer documentation.
Entergy recommends shareholders do not tender their shares in response to TRC's mini-tender offer or, if shareholders have already tendered shares, that they withdraw their shares by providing the written notice described in the TRC mini-tender offer documents prior to the expiration of the offer, currently scheduled for 12:01 a.m. Eastern Time on July 17, 2019, because it was commenced at a below-market offer price, is highly conditional and is not subject to important investor protections.
Mini-tender offers, such as TRC's offer, are not subject to many of the disclosure and procedural requirements afforded to larger tender offers, including the filing of disclosure and other tender offer documents with the U.S. Securities and Exchange Commission and other procedures mandated by U.S. securities laws.
Entergy urges common shareholders to obtain current market quotations for their shares of common stock, to consult their broker or financial advisor, and to exercise caution with respect to TRC's offer.
The SEC has cautioned investors that some bidders making mini-tender offers at below-market prices are "hoping that they will catch investors off guard if the investors do not compare the offer price to the current market price." The SEC's advisory may be found on the SEC website at http://www.sec.gov/investor/pubs/minitend.htm. TRC has made many similar unsolicited mini-tender offers for shares of other public companies.
Entergy urges broker-dealers and other market participants to review the SEC's recommendations to broker-dealers in these circumstances, which can be found on the SEC website at http://www.sec.gov/divisions/marketreg/minitenders/sia072401.htm and Information Memo Number 01-27 issued by the NYSE on September 28, 2001, which can be found on the NYSE website at https://www.nyse.com/publicdocs/nyse/markets/nyse/rule-interpretations/2001/01-27.pdf regarding the dissemination of mini-tender offer materials.
Entergy requests that a copy of this news release be included with all distributions of materials relating to TRC's mini-tender offer related to shares of Entergy common stock.
About Entergy Corporation
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and nearly 13,700 employees.
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SOURCE Entergy Corporation
Article Date
6/20/2019Entergy Named Among Top 50 Community-Minded Companies in the Nation
Source: PR Newswire
NEW ORLEANS, June 19, 2019 /PRNewswire/ -- Points of Light, the world's largest organization dedicated to volunteer service, has named Entergy Corporation a recipient of the Civic 50 award for a fourth consecutive year.
Entergy is one of only two utilities recognized by The Civic 50 as one of the top 50 most community-minded companies in the United States. The award serves as the national standard for superior corporate citizenship and showcases how effectively the company uses its time, skills and resources to impact its communities.
"Creating and sustaining healthy, vibrant communities is an integral part of Entergy's mission," said Leo Denault, chairman and CEO of Entergy. "It is an honor to be recognized among the nation's top 50 companies who consider corporate citizenship a priority and we are grateful to our employees and our neighbors living in the communities we serve for partnering with us to achieve this national recognition. We look forward to enhancing these partnerships for years to come."
Watch a video about this honor: https://youtu.be/RW82SKcgDHk
The recognition by the Points of Light organization reinforces Entergy's business strategy to grow a world-class energy business that delivers long-term, sustainable value for its customers, employees, communities and owners. In 2018, Entergy employees contributed nearly 112,000 volunteer hours and the company's shareholders committed approximately $18.4 million to programs dedicated to improving communities across Entergy's four-state service territory. Learn more about how the company powers life in its communities in the 2018 Integrated Report.
Recipients of The Civic 50 award are both public and private companies with U.S. operations and revenues of $1 billion or more. Selections are made based on four dimensions of community engagement: investment; integration; institutionalization and impact. The winners were recognized at Points of Light's conference during The Civic 50 Gala in St. Paul, Minnesota. Patty Riddlebarger, vice president of corporate social responsibility at Entergy, attended the gala and accepted the award on behalf of the company.
"The Civic 50 truly highlights the commitment of community and civic engagement of America's leading brands," said Natalye Paquin, president and CEO, Points of Light. "Points of Light believes that people drive change in addressing society's growing and most profound challenges. The business community plays an important role in creating and delivering innovative solutions that drive social good in the communities where they live and work."
Points of Light mobilizes millions of people to take action that is changing the world. Through affiliates in 250 cities across 37 countries and in partnership with thousands of nonprofits and corporations, the organization engages 5 million volunteers in 20 million hours of service each year.
About Entergy Corporation
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and nearly 13,700 employees.
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SOURCE Entergy Corporation
Article Date
6/19/2019Entergy Texas Investing Today to Power Southeast Texas Economy
Source: PR Newswire
THE WOODLANDS, Texas, June 18, 2019 /PRNewswire/ -- Entergy Texas, Inc. is delivering on key investments as part of its Bright Future plan for Southeast Texas. This comprehensive investment in infrastructure will ensure reliability, create new jobs and spur economic development across Southeast Texas.
As the region grows, Entergy is taking the necessary steps to ensure that residents and businesses have safe, reliable and low-cost energy. Since the start of 2019, Entergy Texas has taken steps to:
As Entergy Texas invests to power the Southeast Texas economy, recent legislation passed by the Texas Legislature empowers the Public Utility Commission to improve the regulatory framework for companies looking to build electric generation. HB 1397, by Rep. Dade Phelan (Beaumont) and Sen. Robert Nichols (Jacksonville) allows the Public Utility Commission of Texas to approve a rider that would permit a non-ERCOT utility to recover electric generation investments without regulatory lag, improving electric utilities' ability to power a growing region.
"I would like to thank Governor Abbott, Chairman Phelan, Senator Nichols, and the Legislature for their commitment to ensuring that Texas remains economically competitive," said Sallie Rainer, president and CEO of Entergy Texas. "Entergy Texas is committed to making the investments today that will enable future growth. The ability, with approval from the Public Utility Commission, to begin recovering these investments in a more timely manner will help us as we create value for our four key stakeholders – customers, employees, communities and owners."
These reforms build on steps the Legislature has taken in previous sessions to modernize the regulatory environment for non-ERCOT utilities. The PUC also can approve a Transmission Cost Recovery Factor and a Distribution Cost Recovery Factor, which similarly help to reduce regulatory lag and enable more timely recovery of capital investments by utilities.
Entergy Texas, Inc. provides electricity to approximately 450,000 customers in 27 counties. Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and more than 13,000 employees.
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SOURCE Entergy Corporation
Article Date
6/18/2019Pilgrim Nuclear Power Station Shut Down Permanently
Source: PR Newswire
PLYMOUTH, Mass., June 3, 2019 /PRNewswire/ -- Control room operators at Entergy's Pilgrim Nuclear Power Station, located in Plymouth, Massachusetts, shut down its reactor for the final time on Friday, at 5:28 p.m. The decision to shut down Pilgrim was the result of a number of financial factors, including low wholesale energy prices.
"The difficult but necessary decision to close Pilgrim impacted our dedicated employees and their families, and was a decision we did not make lightly," said Entergy Chairman and Chief Executive Officer Leo Denault. "Our employees are the backbone of the company, and their pride and professionalism are evident every day. Their legacy is a 47-year record of carbon-free power generation, done safely and securely, which benefitted the region in innumerable ways."
The closure of Pilgrim is another important milestone in Entergy's exit of the merchant power business, as the company transitions to a pure-play utility business.
As part of its employee commitment at Pilgrim, the company previously announced its plan to find a position within Entergy for those qualified employees who were willing to relocate. Currently, more than 50 employees from Pilgrim have accepted offers to continue with the company in other locations.
In August, Entergy announced the proposed sale of the subsidiary that owns Pilgrim to a Holtec International subsidiary, a decommissioning specialty company that plans to complete decommissioning at the site decades sooner than if Entergy continued to own the plant. Regulatory approval and closing of the transaction are targeted for 2019. Holtec, through its affiliate Comprehensive Decommissioning International, will hire Entergy's employees at Pilgrim who have been selected for "Phase I" of decommissioning.
Entergy's remaining operating nuclear power plants in merchant power markets - Indian Point Unit 2 and Unit 3, in New York, and Palisades Power Plant, in Michigan, are scheduled to be shut down in 2020, 2021, and 2022, respectively. These closures, along with the sale of these plants to decommissioning specialty companies, mark the end of Entergy's participation in merchant power markets and its return to a pure-play utility.
Entergy owns and operates five nuclear power units in its regulated utility business, and is committed to the continued operation of its nuclear fleet in those locations. Its nuclear power plants in those markets are located in Louisiana, Arkansas and Mississippi, and have more than 5,000 megawatts of clean, reliable, and economic electricity generating capacity for customers in those regions.
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, Entergy's plans and expectations with respect to the sale of the Pilgrim Nuclear Power Station, other steps being taken by Entergy to exit the merchant power business, and other statements of Entergy's plans, beliefs or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy's most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and Entergy's other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) risks associated with operating nuclear facilities, including plant relicensing, operating and regulatory costs and risks; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning Entergy's nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with strategic transactions that Entergy or its subsidiaries may undertake, including the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental or energy policies; and (i) the effects of technological changes and changes in commodity markets, capital markets or economic conditions; and (j) impacts from a terrorist attack, cybersecurity threats, data security breaches or other attempts to disrupt Entergy's business or operations, and other catastrophic events.
About Pilgrim Nuclear Power Station and Entergy
The Pilgrim Nuclear Power Station employs about 600 nuclear professionals and had 680 megawatts of virtually carbon-free electricity generating capacity, enough to power more than 600,000 homes. Pilgrim began generating electricity in 1972. Entergy purchased the plant in 1999 from Boston Edison. Additional information is available at pilgrimpower.com.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and nearly 13,700 employees. Additional information is available at entergy.com.
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SOURCE Entergy Corporation
Article Date
6/3/2019St. Charles Power Station Connected and Serving Customers
Source: PR Newswire
MONTZ, La., May 29, 2019 /PRNewswire/ -- Entergy Louisiana is pleased to announce that the St. Charles Power Station commenced commercial operation on May 23.
The 980-megawatt power station is one of the cleanest natural gas-powered plants in Entergy Louisiana's fleet. Combined-cycle gas turbine units like the St. Charles facility emit on average about 40% less carbon dioxide than Entergy's older natural gas-powered units.
"The St. Charles Power Station will supply reliable, clean energy to customers to help support the tremendous growth Louisiana is experiencing," said Phillip May, president and CEO of Entergy Louisiana. "This combined-cycle plant is one part of our transformation to cleaner, more efficient generation. Replacing older, less efficient plants with new, cleaner natural gas units will improve system reliability, reduce environmental impacts and produce substantial customer savings over the long term."
Because of the plant's high efficiency, it is projected that customers will save more than $1.3 billion over the anticipated 30-year life of the unit. Customer savings are expected to exceed the plant's construction cost in less than 10 years.
The company plans to officially dedicate the unit, which was completed ahead of schedule and on budget, in a ceremony slated for July 15.
At its peak, 955 workers were engaged in the construction of the unit. Entergy Louisiana employs 31 people to operate the plant.
Entergy Corporation Portfolio Transformation
The St. Charles Power Station is another important milestone in Entergy Corporation's broader plan to modernize and transform the Entergy Utility's existing generation fleet. Over the past 13 years, Entergy has added approximately 5,900 megawatts of clean, highly efficient combined-cycle gas turbine generation, allowing for the deactivation of over 6,300 megawatts of older, less efficient gas or oil units.
In addition to providing reliable, cost-effective power, Entergy's investments in its generation portfolio transformation and nuclear improvements since 2000 have resulted in substantial reductions in the company's NOx, SO2, mercury and CO2 emissions, highlighting Entergy's commitment to environmental stewardship.
The approximately $870 million St. Charles Power Station project is one of six major generation projects totaling approximately $3.5 billion to be undertaken across Entergy's service area over the next three years.
Entergy Louisiana, LLC provides electric service to more than 1 million customers and natural gas service to more than 93,000 customers in the greater Baton Rouge area. With operations in southern, central and northeastern Louisiana, the company is a subsidiary of Entergy Corporation.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and nearly 13,700 employees.
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SOURCE Entergy Corporation
Article Date
5/29/20195/1/2019 - Entergy Reports First Quarter Earnings
Entergy Reports First Quarter Earnings
Source: PR Newswire
NEW ORLEANS, May 1, 2019 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported first quarter 2019 earnings per share of $1.32 on an as-reported basis and 82 cents on an adjusted basis (non-GAAP), which excludes the EWC segment in light of the company's strategic decision to exit the merchant power business.
"We had a productive start to 2019. While weather was a headwind, we remain firmly on track to achieve our full-year financial guidance, as well as our longer-term outlooks," said Entergy Chairman and Chief Executive Officer Leo Denault. "With our announcement of a sale of Indian Point, we now have definitive agreements in place to sell all of our merchant nuclear assets."
Business highlights included the following:
Consolidated Earnings (GAAP and Non-GAAP Measures) | |||
First Quarter 2019 vs. 2018 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of adjustments) | |||
First Quarter | |||
2019 | 2018 | Change | |
(After-tax, $ in millions) | |||
As-reported earnings | 255 | 133 | 122 |
Less adjustments | 97 | (18) | 115 |
Adjusted earnings (non-GAAP) | 158 | 151 | 7 |
Estimated weather in billed sales | (23) | 16 | (40) |
(After-tax, per share in $) | |||
As-reported earnings | 1.32 | 0.73 | 0.59 |
Less adjustments | 0.50 | (0.10) | 0.60 |
Adjusted earnings (non-GAAP) | 0.82 | 0.83 | (0.01) |
Estimated weather in billed sales | (0.12) | 0.09 | (0.21) |
Calculations may differ due to rounding | |||
Consolidated Results
For first quarter 2019, the company reported earnings of $255 million, or $1.32 per share, on an as-reported basis and earnings of $158 million, or 82 cents per share, on an adjusted basis. This compared to first quarter 2018 earnings of $133 million, or 73 cents per share, on an as-reported basis and earnings of $151 million, or 83 cents 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 and a comprehensive analysis of quarterly variances by business is provided in Appendix B.
Business Segment Results
Utility
For first quarter 2019, the Utility business reported earnings attributable to Entergy Corporation of $231 million, or $1.20 per share, on both an as-reported and adjusted basis. This compared to first quarter 2018 earnings of $215 million, or $1.19 per share, on both an as-reported and adjusted basis. The current period results reflected higher net revenue. On a per share basis, 2019 results reflected a higher share count resulting from the company's equity forward.
Excluding the return of unprotected excess ADIT, which is directly offset in income taxes, net revenue increased quarter-over-quarter, driven by regulatory actions at Entergy Arkansas, Entergy Louisiana and Entergy Texas. Also, first quarter 2018 included regulatory charges to return benefits of the lower federal tax rate to customers. This was partially offset by unfavorable weather in first quarter 2019 compared to favorable weather a year ago.
On a weather-adjusted basis, billed sales increased 0.6 percent driven by industrial sales. Residential and commercial sales decreased (0.3) percent and (1.4) percent respectively. Industrial billed sales volume increased 2.4 percent with higher sales to both new and expansion customers as well as existing customers. The increase was driven largely by the chlor-alkali segment. Sales to petroleum refining customers were also higher.
Appendix C contains additional details on Utility financial and operating measures.
Parent & Other
For first quarter 2019, Parent & Other reported a loss of $(73 million), or (38) cents per share, on both an as-reported and adjusted basis. This compared to a loss of $(64 million), or (36) cents per share, on both an as-reported and adjusted basis in first quarter 2018.
Entergy Wholesale Commodities
For first quarter 2019, EWC recorded earnings attributable to Entergy Corporation of $97 million, or 50 cents per share on an as-reported basis. This compared to a first quarter 2018 loss of $(18 million), or (10) cents per share, on an as-reported basis.
First quarter 2019 earnings reflected higher other income, primarily due to gains on decommissioning trust funds, as well as higher net revenue due to higher nuclear energy volume. These items were partially offset by a tax item related to the sale of Vermont Yankee in January 2019.
Appendix D contains additional details on EWC financial and operating measures, including reconciliation for non-GAAP EWC adjusted EBITDA.
Earnings Guidance
Entergy affirmed its 2019 adjusted earnings guidance range of $5.10 to $5.50 per share. See webcast presentation slides for additional details.
The company has provided 2019 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 2019. One such adjustment will be the exclusion of EWC earnings from Entergy adjusted EPS. We currently estimate that the contribution of EWC to Entergy's as-reported EPS will be approximately $(1.20) per share in 2019. This estimate is subject to substantial uncertainty due to, among other things, the potential effects of the strategic decision to exit the EWC business.
Earnings Teleconference
A teleconference will be held at 9:00 a.m. Central Time on Wednesday, May 1, 2019, to discuss Entergy's quarterly earnings announcement and the company's financial performance. The teleconference may be accessed by visiting Entergy's website at www.entergy.com or by dialing 844-309-6569, conference ID 1060279, no more than 15 minutes prior to the start of the call. The webcast slide presentation is also posted to Entergy's website concurrent with this release, which was issued before market open on the day of the call. A replay of the teleconference will be available on Entergy's website at www.entergy.com and by telephone. The telephone replay will be available through May 8, 2019, by dialing 855-859-2056, conference ID 1060279.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and nearly 13,700 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 slide 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 & Other Information, which provides investors with key updates of certain regulatory proceedings and important milestones on the execution of its strategy. While some of this information may be considered material information, investors should not rely exclusively on this page for all relevant company information.
For definitions of certain operating measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the earnings release materials, see Appendix F.
Non-GAAP Financial Measures
This news release contains non-GAAP financial measures, which are generally numerical measures of a company's performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Entergy has provided quantitative reconciliations within this release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Entergy reports earnings using the non-GAAP measure of Entergy adjusted earnings, which excludes the effect of certain "adjustments," including the removal of the Entergy Wholesale Commodities segment in light of the company's decision to exit the merchant power business. Adjustments are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as the results of the EWC segment, significant tax items and other items such as certain costs, expenses, or other specified items. In addition to reporting GAAP consolidated earnings on a per share basis, Entergy reports its adjusted earnings on a per share basis. These per share measures represent the applicable earnings amount divided by the diluted average number of common shares outstanding for the period.
Management uses the non-GAAP financial measures of adjusted earnings and adjusted earnings per share for, among other things, financial planning and analysis; reporting financial results to the board of directors, employees, stockholders, analysts and investors; and internal evaluation of financial performance. Entergy believes that these non-GAAP financial measures provide useful information to investors in evaluating the ongoing results of Entergy's business, comparing period to period results, and comparing Entergy's financial performance to the financial performance of other companies in the utility sector.
Other non-GAAP measures, including adjusted EBITDA; adjusted ROE; adjusted ROIC; gross liquidity; debt to capital, excluding securitization debt; net debt to net capital, excluding securitization debt; parent debt to total debt, excluding securitization debt; FFO; FFO to debt, excluding securitization debt; and FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC are measures Entergy uses internally for management and board discussions and to gauge the overall strength of its business. Entergy believes the above data provides useful information to investors in evaluating Entergy's ongoing financial results and flexibility and assists investors in comparing Entergy's credit and liquidity to the credit and liquidity of others in the Utility sector. In addition, other financial measures including net income (or earnings), adjusted for preferred dividends and tax effected interest expense; net revenue; return on average invested capital; and return on average common equity are included on both an adjusted and as-reported basis. In each case, the metrics defined as "adjusted" would 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, Entergy's 2019 earnings guidance; its current financial and operational outlooks; and other statements of Entergy's plans, beliefs or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy's most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and Entergy's other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) risks associated with operating nuclear facilities, including plant relicensing, operating, and regulatory costs and risks; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning Entergy's nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with strategic transactions that Entergy or its subsidiaries may undertake, including the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state, or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental, or energy policies; (i) the effects of technological changes and changes in commodity markets, capital markets or economic conditions; and (j) impacts from a terrorist attack, cybersecurity threats, data security breaches or other attempts to disrupt Entergy's business or operations, and other catastrophic events.
First Quarter 2019 Earnings Release Appendices and Financial Statements
Appendices
Appendices are presented in this section as follows:
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 2019 vs. 2018 (See Appendix A-3 and Appendix A-4 for details on adjustments) | |||
First Quarter | |||
2019 | 2018 | Change | |
(After-tax, $ in millions) | |||
Earnings (loss) | |||
Utility | 231 | 215 | 16 |
Parent & Other | (73) | (64) | (9) |
EWC | 97 | (18) | 115 |
Consolidated | 255 | 133 | 122 |
Less adjustments | |||
Utility | - | - | - |
Parent & Other | - | - | - |
EWC | 97 | (18) | 115 |
Consolidated | 97 | (18) | 115 |
Adjusted earnings (loss) (non-GAAP) | |||
Utility | 231 | 215 | 16 |
Parent & Other | (73) | (64) | (9) |
EWC | - | - | - |
Consolidated | 158 | 151 | 7 |
Estimated weather in billed sales | (23) | 16 | (40) |
Diluted average number of common shares outstanding (in millions) | 192.2 | 181.4 | |
(After-tax, per share in $) (a) | |||
Earnings (loss) | |||
Utility | 1.20 | 1.19 | 0.01 |
Parent & Other | (0.38) | (0.36) | (0.02) |
EWC | 0.50 | (0.10) | 0.60 |
Consolidated | 1.32 | 0.73 | 0.59 |
Less adjustments | |||
Utility | - | - | - |
Parent & Other | - | - | - |
EWC | 0.50 | (0.10) | 0.60 |
Consolidated | 0.50 | (0.10) | 0.60 |
Adjusted earnings (loss) (non-GAAP) | |||
Utility | 1.20 | 1.19 | 0.01 |
Parent & Other | (0.38) | (0.36) | (0.02) |
EWC | - | - | - |
Consolidated | 0.82 | 0.83 | (0.01) |
Estimated weather in billed sales | (0.12) | 0.09 | (0.21) |
Calculations may differ due to rounding | |
(a) | Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period. |
See Appendix B for detailed earnings variance analysis. See Appendix A-3 for adjustments by driver.
Appendix A-2 provides a comparative summary of OCF, by business.
Appendix A-2: Consolidated Operating Cash Flow | |||
First Quarter 2019 vs. 2018 | |||
($ in millions) | |||
First Quarter | |||
2019 | 2018 | Change | |
Utility | 455 | 523 | (68) |
Parent & Other | (78) | (57) | (21) |
EWC | 124 | 91 | 33 |
Consolidated | 501 | 557 | (56) |
Calculations may differ due to rounding |
OCF decreased quarter-over-quarter due primarily to the return of the unprotected excess ADIT to customers, as well as unfavorable weather at the Utility. Lower pension contributions partially offset the decrease.
Appendix A-3 and Appendix A-4 list adjustments by business. Amounts are shown on both an earnings and EPS basis. Adjustments are included in as-reported earnings consistent with GAAP, but are excluded from adjusted earnings. As a result, adjusted earnings is considered a non-GAAP measure.
Appendix A-3: Adjustments by Driver (shown as positive/(negative) impact on earnings or EPS) | |||
First Quarter 2019 vs. 2018 | |||
First Quarter | |||
2019 | 2018 | Change | |
(Pre-tax except for income tax effects and total, $ in millions) | |||
EWC | |||
Income before income taxes | 163 | (19) | 182 |
Income taxes | 66 | (1) | 67 |
Preferred dividend requirements of subsidiaries | 1 | 1 | - |
Total EWC | 97 | (18) | 115 |
Total adjustments | 97 | (18) | 115 |
(After-tax, per share in $) | |||
EWC | |||
Total EWC | 0.50 | (0.10) | 0.60 |
Total adjustments | 0.50 | (0.10) | 0.60 |
Calculations may differ due to rounding |
Appendix A-4: Adjustments by Income Statement Line Item (shown as positive/(negative) impact on earnings) | ||||
First Quarter 2019 vs. 2018 | ||||
(Pre-tax except for Income taxes and total, $ in millions) | ||||
First Quarter | ||||
2019 | 2018 | Change | ||
EWC | ||||
Net revenue | 393 | 382 | 11 | |
Non-fuel O&M | (201) | (193) | (8) | |
Asset write-off and impairments | (74) | (73) | (1) | |
Decommissioning expense | (63) | (58) | (5) | |
Taxes other than income taxes | (13) | (16) | 4 | |
Depreciation/amortization exp. | (38) | (38) | - | |
Other income (deductions)–other | 169 | (14) | 183 | |
Interest exp. and other charges | (9) | (8) | (1) | |
Income taxes | (66) | 1 | (67) | |
Preferred dividend | (1) | (1) | - | |
Total EWC | 97 | (18) | 115 | |
Total adjustments (after-tax) | 97 | (18) | 115 | |
Calculations may differ due to rounding |
B: Earnings Variance Analysis
Appendix B provides details of current quarter 2019 versus 2018 as-reported and adjusted earnings variance analysis for Utility, Parent & Other, and EWC.
Appendix B: As-Reported and Adjusted Earnings Variance Analysis (b), (c) | ||||||||||
First Quarter 2019 vs. 2018 | ||||||||||
(After-tax, per share in $) | ||||||||||
Utility | Parent & Other | EWC | Consolidated | |||||||
As-Reported | Adjusted | As-Reported | Adjusted | As- Reported | As- Reported | Adjusted | ||||
2018 earnings | 1.19 | 1.19 | (0.36) | (0.36) | (0.10) | 0.73 | 0.83 | |||
Net revenue | 0.07 | 0.07 | (d) | - | - | 0.05 | (e) | 0.12 | 0.07 | |
Non-fuel O&M | 0.02 | 0.02 | (0.02) | (0.02) | (0.03) | (0.03) | - | |||
Asset write-offs and impairments | - | - | - | - | - | - | - | |||
Decommissioning expense | (0.01) | (0.01) | - | - | (0.02) | (0.03) | (0.01) | |||
Taxes other than income taxes | 0.01 | 0.01 | - | - | 0.01 | 0.02 | 0.01 | |||
Depreciation/amortization exp. | (0.04) | (0.04) | - | - | - | (0.04) | (0.04) | |||
Other income (deductions)–other | 0.03 | 0.03 | (0.01) | (0.01) | 0.79 | (f) | 0.81 | 0.02 | ||
Interest exp. and other charges | (0.03) | (0.03) | (0.03) | (0.03) | - | (0.06) | (0.06) | |||
Income taxes–other | 0.03 | 0.03 | 0.01 | 0.01 | (0.16) | (g) | (0.12) | 0.04 | ||
Share effect | (0.07) | (0.07) | (h) | 0.03 | 0.03 | (0.04) | (0.08) | (0.04) | ||
2019 earnings | 1.20 | 1.20 | (0.38) | (0.38) | 0.50 | 1.32 | 0.82 | |||
Calculations may differ due to rounding. | |
(b) | Utility net revenue and Utility income taxes exclude $61 million for the return of unprotected excess ADIT to customers (net effect is neutral to earnings). |
(c) | EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply and dividing by diluted average number of common shares outstanding for the prior period; income taxes–other represents income tax differences other than the tax effect of individual line items. |
(d) | The earnings increase from higher Utility net revenue was primarily driven by rate activity from E-AR's and E-LA's FRPs, E-LA's AMI rider and E-TX's base rate case. In addition, in first quarter 2018, E-LA recorded regulatory charges to return the benefits of the lower effective federal tax rate to customers. Partially offsetting was the net effect of volume/weather primarily due to the effects of weather, which was negative in first quarter 2019 and positive in first quarter 2018. |
(e) | The earnings increase from higher EWC net revenue reflected higher volume from merchant nuclear plants. |
(f) | The earnings increase from higher EWC other income (deductions)–other was due largely to unrealized gains on the decommissioning trust fund investments in first quarter 2019. |
(g) | The earnings decrease from higher EWC income taxes is primarily due to an accrual of $29 million of tax expense, which resulted from the sale of Vermont Yankee in January 2019. |
(h) | The earnings per share decrease from share effect is due to the equity forward including the settlement of 6.8 million shares in December 2018. |
Utility As-Reported Net Revenue Variance Analysis 2019 vs. 2018 ($ EPS) | |
1Q | |
Volume/weather | (0.16) |
Retail electric price Reg. charges for lower tax rate | 0.12 0.12 |
Other | (0.01) |
Total | 0.07 |
C: Utility Financial and Operating Measures
Appendix C-1 and Appendix C-2 provides comparative summaries of Utility operating and financial measures.
Appendix C-1: Utility Operating and Financial Measures | ||||
First Quarter 2019 vs. 2018 | ||||
First Quarter | ||||
2019 | 2018 | % Change | % Weather | |
GWh billed | ||||
Residential | 8,471 | 9,287 | (8.8) | (0.3) |
Commercial | 6,423 | 6,732 | (4.6) | (1.4) |
Governmental | 601 | 608 | (1.2) | (0.7) |
Industrial | 11,683 | 11,405 | 2.4 | 2.4 |
Total retail sales | 27,178 | 28,032 | (3.0) | 0.6 |
Wholesale | 3,814 | 3,244 | 17.6 | |
Total sales | 30,992 | 31,276 | (0.9) | |
Number of electric retail customers | ||||
Residential | 2,483,785 | 2,476,056 | 0.3 | |
Commercial | 357,613 | 356,034 | 0.4 | |
Governmental | 18,111 | 17,945 | 0.9 | |
Industrial | 40,890 | 40,856 | 0.1 | |
Total retail customers | 2,900,399 | 2,890,891 | 0.3 | |
Net revenue ($ in millions) | 1,416 | 1,460 | (3.0) | |
Non-fuel O&M per MWh | $20.12 | $20.09 | 0.1 | |
Appendix C-2: Utility Operating Measures | ||||
Twelve Months Ended March 31, 2019 vs. 2018 | ||||
Twelve Months Ended March 31 | ||||
2019 | 2018 | % Change | % Weather | |
GWh billed | ||||
Residential | 36,291 | 35,484 | 2.3 | (0.6) |
Commercial | 29,117 | 29,039 | 0.3 | (0.7) |
Governmental | 2,574 | 2,525 | 1.9 | 1.2 |
Industrial | 48,662 | 48,057 | 1.3 | 1.3 |
Total retail sales | 116,644 | 115,105 | 1.3 | 0.2 |
Calculations may differ due to rounding | |
(i) | The effects of weather were estimated using heating degree days and cooling degree days for the billing cycles from certain locations within each jurisdiction and comparing to "normal" weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change. |
D: EWC Financial and Operating Measures
Appendix D-1 provides a comparative summary of EWC adjusted EBITDA (non-GAAP).
Appendix D-1: EWC Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures | |||
First Quarter 2019 vs. 2018 | |||
($ in millions) | First Quarter | ||
2019 | 2018 | Change | |
Net income (loss) | 97 | (18) | 115 |
Add back: interest expense | 9 | 8 | 1 |
Add back: income taxes | 66 | (1) | 67 |
Add back: depreciation and amortization | 38 | 38 | - |
Subtract: interest and investment income | 181 | (1) | 182 |
Add back: decommissioning expense | 63 | 58 | 5 |
Adjusted EBITDA (non-GAAP) | 92 | 86 | 6 |
Calculations may differ due to rounding |
Appendix D-2 provides a comparative summary of EWC operating and financial measures.
Appendix D-2: EWC Operational and Financial Measures | |||
First Quarter 2019 vs. 2018 (See Appendix G for reconciliation of GAAP to non-GAAP measures) | |||
First Quarter | |||
2019 | 2018 | % Change | |
Owned capacity (MW) | 3,962 | 3,962 | - |
GWh billed | 7,203 | 6,996 | 3.0 |
Net revenue ($ in millions) | 393 | 382 | 2.9 |
EWC Nuclear Fleet | |||
Capacity factor | 85% | 83% | 2.4 |
GWh billed | 6,690 | 6,408 | 4.4 |
Production cost per MWh | $20.04 | $18.75 | 6.9 |
Average energy/capacity revenue per MWh | $57.99 | $56.96 | 1.8 |
Net revenue ($ in millions) | 389 | 379 | 2.6 |
Refueling outage days | |||
Indian Point 2 | - | 13 | |
Indian Point 3 | 21 | - | |
Calculations may differ due to rounding |
See appendix in the webcast slide presentation for EWC hedging and price disclosures.
E: Consolidated Financial Measures
Appendix E provides comparative financial measures. Financial measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP financial measures.
Appendix E: GAAP and Non-GAAP Financial Measures | |||
First Quarter 2019 vs. 2018 (See Appendix G for reconciliation of GAAP to non-GAAP financial measures) | |||
For 12 months ending March 31 | 2019 | 2018 | Change |
GAAP Measures | |||
As-reported ROIC | 5.6% | 3.9% | 1.7% |
As-reported ROE | 11.4% | 5.8% | 5.6% |
Non-GAAP Measures | |||
Adjusted ROIC | 5.5% | 5.0% | 0.5% |
Adjusted ROE | 11.5% | 9.4% | 2.1% |
As of March 31 ($ in millions) | 2019 | 2018 | Change |
GAAP Measures | |||
Cash and cash equivalents | 983 | 1,206 | (223) |
Revolver capacity | 3,950 | 3,010 | 940 |
Commercial paper | 1,942 | 655 | 1,287 |
Total debt | 19,325 | 17,680 | 1,645 |
Securitization debt | 398 | 520 | (122) |
Debt to capital | 67.8% | 68.4% | (0.6%) |
Off-balance sheet liabilities: | |||
Debt of joint ventures – Entergy's share | 59 | 66 | (7) |
Leases – Entergy's share (j) | - | 429 | (429) |
Power purchase agreements accounted for as leases (j) | - | 136 | (136) |
Total off-balance sheet liabilities | 59 | 631 | (572) |
Non-GAAP Financial Measures | |||
Debt to capital, excluding securitization debt | 67.3% | 67.7% | (0.4%) |
Gross liquidity | 4,933 | 4,216 | 717 |
Net debt to net capital, excluding securitization debt | 66.1% | 66.1% | 0.0% |
Parent debt to total debt, excluding securitization debt | 21.7% | 21.1% | 0.6% |
FFO to debt, excluding securitization debt | 11.1% | 14.8% | (3.7%) |
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC | 15.0% | 15.3% | (0.3%) |
(j) | As of January 1, 2019, Entergy adopted ASC 842, the new lease accounting standard. As a result, Entergy re-evaluated all agreements and put all agreements that qualified as operating leases on the balance sheet, and there are no longer any off-balance sheet liabilities for leases. |
F: Definitions and Abbreviations and Acronyms
Appendix F-1 provides definitions of certain operating measures, as well as GAAP and non-GAAP financial measures. Non-GAAP financial measures remove the effects of financial events that are not routine from commonly used financial measures.
Appendix F-1: Definitions | |
Utility Operating and Financial Measures | |
GWh billed | Total number of GWh billed to retail and wholesale customers |
Net revenue | Operating revenues less fuel, fuel related expenses and gas purchased for resale; purchased power and other regulatory charges (credits) – net |
Non-fuel O&M | Operation and maintenance expenses excluding fuel, fuel-related expenses and gas purchased for resale and purchased power |
Non-fuel O&M per MWh | Non-fuel O&M per MWh of billed sales |
Number of retail customers | Number of customers at the end of the prior year |
EWC Operating and Financial Measures | |
Average revenue under contract per kW-month (applies to capacity contracts only) | Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and/or auction awards |
Average revenue per MWh on contracted volumes | Revenue on a per unit basis at which generation output reflected in contracts is expected to be sold to third parties (including offsetting positions) at the minimum contract prices and at forward market prices at a point in time, given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market PPA for Palisades; revenue will fluctuate due to factors including market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at the time of option expiration, costs to convert firm LD to unit-contingent and other risk management costs |
Bundled capacity and energy contracts | A contract for the sale of installed capacity and related energy, priced per MWh sold |
Capacity contracts | A contract for the sale of the installed capacity product in regional markets managed by ISO New England, NYISO and MISO |
Capacity factor | Normalized percentage of the period that the nuclear plants generate power |
Expected sold and market total revenue per MWh | Total energy and capacity revenue on a per unit basis at which total planned generation output and capacity is expected to be sold given contract terms and market prices at a point in time, including estimates for market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at time of option expiration, costs to convert Firm LD to unit-contingent and other risk management costs, divided by total planned MWh of generation, excluding the revenue associated with the amortization of the Palisades below-market PPA |
Firm LD | Transaction that requires receipt or delivery of energy at a specified delivery point (usually at a market hub not associated with a specific asset) or settles financially on notional quantities; if a party fails to deliver or receive energy, defaulting party must compensate the other party as specified in the contract, a portion of which may be capped through the use of risk management products |
Appendix F-1: Definitions | ||
EWC Operating and Financial Measures (continued) | ||
GWh billed | Total number of GWh billed to customers and financially-settled instruments | |
Net revenue | Operating revenues less fuel and fuel-related expenses and purchased power | |
Offsetting positions | Transactions for the purchase of energy, generally to offset a Firm LD transaction | |
Owned capacity (MW) | Installed capacity owned by EWC | |
Percent of capacity sold forward | Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions | |
Percent of planned generation under contract | Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts or options that mitigate price uncertainty that may or may not require regulatory approval or approval of transmission rights or other conditions precedent; positions that are no longer classified as hedges are netted in the planned generation under contract | |
Planned net MW in operation | Amount of installed capacity to generate power and/or sell capacity, assuming intent to shutdown Pilgrim (May 31, 2019), Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022) | |
Planned TWh of generation | Amount of output expected to be generated by EWC resources considering plant operating characteristics and outage schedules, assuming intent to shutdown Pilgrim (May 31, 2019), Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022) | |
Production cost per MWh | Fuel and non-fuel O&M expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation) | |
Refueling outage days | Number of days lost for a scheduled refueling and maintenance outage during the period | |
Unit-contingent | Transaction under which power is supplied from a specific generation asset; if the asset is in operational outage, seller is generally not liable to buyer for any damages, unless the contract specifies certain conditions such as an availability guarantee | |
Financial Measures – GAAP | ||
As-reported ROE | 12-months rolling net income attributable to Entergy Corporation divided by average common equity | |
As-reported ROIC | 12-months rolling net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital | |
Book value per share | End of period common equity divided by end of period shares outstanding | |
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 | |
Leases – Entergy's share | Operating leases held by subsidiaries capitalized at implicit interest rate | |
Revolver capacity | Amount of undrawn capacity remaining on corporate and subsidiary revolvers | |
Securitization debt | Debt associated with securitization bonds issued to recover storm costs from hurricanes Rita, Ike and Gustav at E-TX and Hurricane Isaac at E-NO; the 2009 ice storm at E-AR and investment recovery of costs associated with the cancelled Little Gypsy repowering project at E-LA | |
Total debt | Sum of short-term and long-term debt, notes payable and commercial paper and capital leases on the balance sheet | |
Appendix F-1: Definitions | |
Financial Measures - Non-GAAP | |
Adjusted EBITDA | Earnings before interest, depreciation and amortization and income taxes and excluding decommissioning expense; for Entergy consolidated, also excludes AFUDC-equity funds and subtracts securitization proceeds |
Adjusted EPS | As-reported EPS excluding adjustments |
Adjusted ROE | 12-months rolling adjusted net income attributable to Entergy Corporation divided by average common equity |
Adjusted ROIC | 12-months rolling adjusted net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital |
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, prepaid taxes and taxes accrued, interest accrued and other working capital accounts) and securitization regulatory charges |
FFO to debt, excluding securitization debt | 12-months rolling adjusted FFO as a percentage of end of period total debt excluding securitization debt |
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC | 12-months rolling adjusted FFO as a percentage of end of period total debt excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC |
Gross liquidity | Sum of cash and revolver capacity |
Net debt to net capital, excluding securitization debt | Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt |
Parent debt to total debt, excluding securitization debt | End of period Entergy Corporation debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of consolidated total debt, excluding 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 | ISO | Independent system operator |
AFUDC – borrowed funds | Allowance for borrowed funds used during construction | IT | Information technology |
AFUDC – equity funds | Allowance for equity funds used during construction | LPSC | Louisiana Public Service Commission |
ALJ | Administrative law judge | LTM | Last twelve months |
AMI | Advanced metering infrastructure | LTSA | Long-term service agreement |
ANO | Units 1 and 2 of Arkansas Nuclear One owned by E-AR (nuclear) | MISO | Midcontinent Independent System Operator, Inc. |
APSC | Arkansas Public Service Commission | Moody's | Moody's Investor Service |
ARO | Asset retirement obligation | MPSC | Mississippi Public Service Commission |
bps | Basis points | MTEP | MISO Transmission Expansion Planning |
CCGT | Combined cycle gas turbine | Nelson 6 | Unit 6 of Roy S. Nelson plant (coal) |
CCN | Certificate of convenience & necessity | NEPOOL | New England Power Pool |
CCNO | Council of the City of New Orleans, Louisiana | Ninemile 6 | Ninemile Point Unit 6 (CCGT) |
COD | Commercial operation date | Non-fuel O&M | Non-fuel operation and maintenance expense |
CT | Simple cycle combustion turbine | NDT | Nuclear decommissioning trust |
CWIP | Construction work in progress | NOPS | New Orleans Power Station (RICE/natural gas) |
DCRF | Distribution cost recovery factor | NorthStar | NorthStar Decommissioning Holdings, LLC |
E-AR | Entergy Arkansas, LLC | NRC | Nuclear Regulatory Commission |
E-LA | Entergy Louisiana, LLC | NYISO | New York Independent System Operator, Inc. |
E-MS | Entergy Mississippi, LLC | NYPA | New York Power Authority |
E-NO | Entergy New Orleans, LLC | NYSE | New York Stock Exchange |
E-TX | Entergy Texas, Inc. | O&M | Operation and maintenance expense |
EBITDA | Earnings before interest, income taxes, depreciation and amortization | OCF | Net cash flow provided by operating activities |
ENGC | Entergy Nuclear Generation Company | OpCo | Operating Company |
ENP | Entergy Nuclear Palisades, LLC | OPEB | Other post-employment benefits |
EPS | Earnings per share | P&O | Parent & Other |
ETR | Entergy Corporation | Palisades | Palisades Power Plant (nuclear) |
EWC | Entergy Wholesale Commodities | Pilgrim | Pilgrim Nuclear Power Station (nuclear) |
FERC | Federal Energy Regulatory Commission | PPA | Power purchase agreement or purchased power agreement |
FFO | Funds from operations | PUCT | Public Utility Commission of Texas |
FitzPatrick | James A. FitzPatrick Nuclear Power Plant (nuclear, sold March 31, 2017) | RICE | Reciprocating Internal Combustion Engine |
FRP | Formula rate plan | RFP | Request for proposals |
GAAP | U.S. generally accepted accounting principles | ROE | Return on equity |
Grand Gulf or GGNS | Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by SERI | ROIC | Return on invested capital |
Indian Point 1 or IP1 | Indian Point Energy Center Unit 1 (nuclear) (shut down in 1974) | RS Cogen | RS Cogen facility (CCGT cogeneration) |
Indian Point 2 or IP2 | Indian Point Energy Center Unit 2 (nuclear) | RSP | Rate Stabilization Plan (E-LA Gas) |
Indian Point 3 or IP3 | Indian Point Energy Center Unit 3 (nuclear) | S&P | Standard & Poor's |
IPEC | Indian Point Energy Center (nuclear) | SCPS | St. Charles Power Station (CCGT) |
ISES 2 | Unit 2 of Independence Steam Electric Station (coal) | SEC | U.S. Securities and Exchange Commission |
IRS | Internal Revenue Service | SERI | System Energy Resources, Inc. |
TCRF | Transmission cost recovery factor | ||
Union | Union Power Station (CCGT) | ||
UPSA | Unit Power Sales Agreement | ||
VPUC | Vermont Public Utility Commission | ||
VY or Vermont Yankee | Vermont Yankee Nuclear Power Station (nuclear) | ||
WACC | Weighted-average cost of capital | ||
WPEC | Washington Parish Energy Center (CT/natural gas) | ||
G: GAAP to Non-GAAP Reconciliations
Appendix G-1 and Appendix G-2 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure.
Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures - ROIC, ROE | |||
($ in millions except where noted) | First Quarter | ||
2019 | 2018 | ||
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months | (A) | 970 | 462 |
Preferred dividends | 15 | 14 | |
Tax effected interest expense | 539 | 499 | |
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months adjusted for preferred dividends and tax effected interest expense | (B) | 1,524 | 975 |
Adjustments in prior quarters | (103) | (276) | |
EWC adjustments | 97 | (18) | |
Total adjustments | (C) | (6) | (294) |
EWC preferred dividends and tax-effected interest expense, rolling 12 months | 30 | 22 | |
Total adjustments, including preferred dividends and tax effected interest expense (non-GAAP) | (D) | 24 | (272) |
Adjusted earnings, rolling 12 months (non-GAAP) | (A-C) | 976 | 756 |
Adjusted earnings, rolling 12 months including preferred dividends and tax- effected interest expense (non-GAAP) | (B-D) | 1,501 | 1,247 |
Average invested capital | (E) | 27,184 | 24,862 |
Average common equity | (F) | 8,473 | 8,016 |
As-reported ROIC | (B/E) | 5.6% | 3.9% |
Adjusted ROIC (non-GAAP) | [(B-D)/E] | 5.5% | 5.0% |
As-reported ROE | (A/F) | 11.4% | 5.8% |
Adjusted ROE (non-GAAP) | [(A-C)/F] | 11.5% | 9.4% |
Calculations may differ due to rounding |
Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures – Debt Ratios excluding Securitization Debt; Gross Liquidity; FFO to Debt, excluding Securitization Debt; FFO to Debt, excluding Securitization Debt, Return of Unprotected Excess ADIT, and Severance and Retention Payments Associated with Exit of EWC | |||
($ in millions except where noted) | First Quarter | ||
2019 | 2018 | ||
Total debt | (A) | 19,325 | 17,680 |
Less securitization debt | (B) | 398 | 520 |
Total debt, excluding securitization debt | (C) | 18,927 | 17,160 |
Less cash and cash equivalents | (D) | 983 | 1,206 |
Net debt, excluding securitization debt | (E) | 17,944 | 15,954 |
Total capitalization | (F) | 28,515 | 25,853 |
Less securitization debt | (B) | 398 | 520 |
Total capitalization, excluding securitization debt | (G) | 28,117 | 25,333 |
Less cash and cash equivalents | (D) | 983 | 1,206 |
Net capital, excluding securitization debt | (H) | 27,134 | 24,127 |
Debt to capital | (A/F) | 67.8% | 68.4% |
Debt to capital, excluding securitization debt (non-GAAP) | (C/G) | 67.3% | 67.7% |
Net debt to net capital, excluding securitization debt (non-GAAP) | (E/H) | 66.1% | 66.1% |
Revolver capacity | (I) | 3,950 | 3,010 |
Gross liquidity (non-GAAP) | (D+I) | 4,933 | 4,216 |
Entergy Corporation notes: | |||
Due September 2020 | 450 | 450 | |
Due July 2022 | 650 | 650 | |
Due September 2026 | 750 | 750 | |
Total parent long-term debt | (J) | 1,850 | 1,850 |
Revolver draw | (K) | 320 | 1,125 |
Commercial paper | (L) | 1,942 | 655 |
Unamortized debt issuance and discounts | (M) | (9) | (11) |
Total parent debt | (J+K+L+M) | 4,103 | 3,619 |
Parent debt to total debt, excluding securitization debt (non-GAAP) | [(J+K+L+M)/C] | 21.7% | 21.1% |
Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures – Debt Ratios excluding Securitization Debt; Gross Liquidity; FFO to Debt, excluding Securitization Debt; FFO to Debt, excluding Securitization Debt, Return of Unprotected Excess ADIT, and Severance and Retention Payments Associated with Exit of EWC (continued) | |||
($ in millions except where noted) | First Quarter | ||
2019 | 2018 | ||
Total debt | (A) | 19,325 | 17,680 |
Less securitization debt | (B) | 398 | 520 |
Total debt, excluding securitization debt | (C) | 18,927 | 17,160 |
Net cash flow provided by operating activities, rolling 12 months | (D) | 2,329 | 2,652 |
AFUDC – borrowed funds, rolling 12 months | (E) | (65) | (49) |
Working capital items in net cash flow provided by operating activities (rolling 12 months): | |||
Receivables | 7 | (123) | |
Fuel inventory | 58 | (26) | |
Accounts payable | 103 | 81 | |
Taxes accrued | 51 | 36 | |
Interest accrued | (5) | 5 | |
Other working capital accounts | (178) | (25) | |
Securitization regulatory charges | 121 | 121 | |
Total | (F) | 157 | 69 |
FFO, rolling 12 months (non-GAAP) | (G)=(D+E-F) | 2,107 | 2,534 |
FFO to debt, excluding securitization debt (non-GAAP) | (G/C) | 11.1% | 14.8% |
Estimated return of unprotected excess ADIT (rolling 12 months pre-tax) | (H) | 692 | - |
Severance and retention payments associated with exit of EWC (rolling 12 months pre-tax) | (I) | 43 | 100 |
FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC (non-GAAP) | [(G+H+I)/(C)] | 15.0% | 15.3% |
Calculations may differ due to rounding |
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SOURCE Entergy Corporation
Article Date
5/1/2019Entergy Announces First Quarter Earnings Conference Call
Source: PR Newswire
NEW ORLEANS, April 25, 2019 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) will report first quarter earnings results before market open on Wednesday, May 1, 2019, and host a teleconference at 9:00 a.m. CT that day to discuss the earnings announcement and the company's financial performance. The teleconference may be accessed by dialing 844-309-6569, conference ID 1060279, no more than 15 minutes prior to the start of the call or by visiting Entergy's website at entergy.com. From time to time, Entergy posts new and/or revised materials on its website and on social media, and anticipates doing so in connection with this event. The presentation slides will be available on Entergy's website before market open on the day of the call. A replay of the teleconference will be available until May 8, 2019, by dialing 855-859-2056, conference ID 1060279.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and nearly 13,700 employees. Additional information is available at entergy.com.
Additional investor information can be accessed at entergy.com/investor_relations
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SOURCE Entergy Corporation
Article Date
4/25/2019Entergy Corporation Renews its Commitment to a Lower Carbon Energy Future
Source: PR Newswire
NEW ORLEANS, April 22, 2019 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) today announced new steps it is taking to bring value to its customers while supporting a lower carbon future and communities that are more sustainable and resilient.
The steps are outlined in the company's new Climate Scenario Analysis and Evaluation of Risks and Opportunities. The climate report builds on Entergy's longtime history of leadership in addressing climate change risks and details the company's ambitious new strategy and ongoing efforts to manage those risks, further reduce emissions, navigate climate policy uncertainty and plan for future investments that deliver value for the company's customers, employees, communities and owners.
"In 2001, Entergy led the industry by becoming the first U.S. utility to voluntarily limit carbon dioxide emissions," said Leo Denault, Entergy's chairman of the board and CEO. "Today, we have the opportunity to do more. We're pleased to announce a new climate objective. By 2030, Entergy will emit 50 percent less carbon dioxide for every unit of electricity than we did in 2000. This renewed commitment to the environment not only delivers clean energy solutions for our customers, it creates long-term, sustainable value for all our stakeholders."
The report follows recommendations of the Task Force on Climate-Related Financial Disclosures. Report highlights include:
Entergy and its subsidiaries already operate one of the cleanest large-scale generation fleets in the United States, as noted in the Benchmarking Air Emissions report by M.J. Bradley & Associates. The company is on target to meet its current environment goals, which lasts through 2020. Through 2018, Entergy's cumulative carbon emissions were approximately 8% below the company's goal for 2020.
To read Entergy's Climate Report and Scenario Analysis, visit entergy.com/ClimateReport.
About Entergy Corporation
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and nearly 13,700 employees.
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SOURCE Entergy Corporation
Article Date
4/22/20194/16/2019 - Entergy Agrees to Post-Shutdown Sale of Indian Point Energy Center to Holtec International
Entergy Agrees to Post-Shutdown Sale of Indian Point Energy Center to Holtec International
Source: PR Newswire
BUCHANAN, N.Y., April 16, 2019 /PRNewswire/ -- Entergy Corp. (NYSE: ETR) has agreed to sell the subsidiaries that own Indian Point Units 1, 2, and 3, located in Buchanan, N.Y., to a Holtec International subsidiary for decommissioning. The sale, which will be effective after Unit 3 has been shut down and permanently defueled, includes the transfer of the licenses, spent fuel, decommissioning liabilities, and Nuclear Decommissioning Trusts (NDT) for the three units.
"The sale of Indian Point to Holtec is expected to result in the completion of decommissioning decades sooner than if the site were to remain under Entergy's ownership," said Entergy Chairman and Chief Executive Officer Leo Denault. "With its deep experience and technological innovations, Holtec's ability to decommission Indian Point will benefit stakeholders in the surrounding community."
With this agreement to sell Indian Point, Entergy has now announced the sale of its entire remaining merchant nuclear fleet for decommissioning.
Following regulatory approvals and transaction close, Holtec plans to initiate decommissioning at Indian Point decades sooner than if Entergy continued to own the units. A more defined timetable will be developed in connection with Holtec's preparation of its Post-Shutdown Decommissioning Activities Report (PSDAR) and Site-Specific Decommissioning Cost Estimate (DCE). Holtec will submit those reports to the U.S. Nuclear Regulatory Commission (NRC), likely in the fourth quarter of 2019. The transaction closing is targeted for the third quarter of 2021.
The transaction is subject to closing conditions, including approval from the NRC. The companies also plan to seek an order from the New York State Public Service Commission (PSC) disclaiming jurisdiction, or alternatively, approving the transaction. Closing is also conditioned on obtaining from the NYS Department of Environmental Conservation (DEC) an agreement confirming Holtec's decommissioning plans as being consistent with applicable standards.
Entergy remains committed to the safe and reliable operation of Indian Point Unit 2 and Unit 3 until their permanent shutdowns in 2020 and 2021, respectively.
With the acquisition of the Indian Point Energy Center, Holtec's fleet is expected to grow to six reactors at four nuclear facilities and an independent spent fuel storage installation, located in Michigan, New York, New Jersey, and Massachusetts. Oyster Creek (N.J.) and Pilgrim (Mass.) License Transfer Application requests are pending at the NRC, with anticipated closings in 2019, subject to NRC approval. Holtec and its affiliates specializing in demolition and decommissioning will deploy operating processes and methods that enable them to expedite site clean-up and minimize occupational dose to workers. Minimizing any incidental disruption of the land, water, and air at and around the IPEC site is an overarching undertaking that is a part of Holtec's core expertise.
Drawing on its own and its affiliates' expertise in ensuring personnel safety and its pioneering decommissioning technologies, Holtec expects to accrue tangible benefits to the local community by returning the site (excluding the site's heavily shielded storage casks on the storage pad safely storing the spent nuclear fuel) to productive use much sooner than would occur if Entergy selected the maximum SAFSTOR option under the NRC regulations. Holtec will transfer all of the used nuclear fuel to its dry fuel storage cask systems to be stored at the on-site reinforced concrete pads, which will remain under guard, monitored during shutdown and decommissioning, and subject to the NRC's oversight, until the U.S. Department of Energy removes it in accordance with its legal obligations, or until Holtec's proposed Consolidated Interim Storage (CIS) facility in New Mexico, named HI-STORE CIS, is ready to begin accepting used fuel from across the country.
"Holtec will execute the decommissioning of Indian Point with the same culture of excellence that has undergirded our company's ascent to a first-tier nuclear technology firm," said Dr. Kris Singh, President & CEO of Holtec International. "Our industry-leading expertise and deep experience permit us to complete decommissioning at Indian Point decades sooner than if Entergy remained the owner and performed decommissioning itself. The potential for the site to be released decades sooner for redevelopment could deliver significant benefits to local community stakeholders and the local economy."
"Holtec will hire Entergy's employees at Indian Point who are employed at the site at the time of the transaction and identified by Entergy as an employee whose services are required for that phase of decommissioning. Holtec looks forward to engaging with site employees, the local community, and other stakeholders over the coming months and years as we discuss our vision for the decommissioning of Indian Point."
Holtec and Comprehensive Decommissioning International (CDI), a U.S.-based joint venture company formed in 2018 between Holtec and SNC-Lavalin, have agreed to enter into a Decommissioning General Contractor Agreement for CDI to perform the decommissioning of the Indian Point site. CDI's decommissioning plan is backed by decades of experience managing complex projects in both commercial and government nuclear sectors around the world. Ownership of the plants and management of the decommissioning trust funds at Indian Point will remain solely with Holtec, post-transaction.
Entergy Financial Impact
As consideration for its transfer to Holtec of its interest in Indian Point Energy Center, Entergy will receive nominal cash consideration.
The transaction is expected to result in a non-cash loss based on the difference between Entergy's adjusted net investment in the subsidiaries at closing and the sale price net of any agreed adjustments. As of Dec. 31, 2018, Entergy's adjusted net investment in the companies was $265 million. Primary variables in the ultimate loss are values of the nuclear decommissioning trusts and asset retirement obligations, financial results from plant operations, and any unutilized deferred tax balances. The terms of the transaction include limitations on withdrawals from the NDTs to fund decommissioning activities and controls on how Entergy manages the investment of NDT assets between signing and closing; however, the agreement does not require a minimum level of funding in the NDTs as a condition to closing.
Entergy affirmed its expectation for Entergy Wholesale Commodities to provide positive net cash to parent from 2019 to 2022.
About Indian Point Energy Center and Entergy
Indian Point Energy Center, in Buchanan, N.Y., is home to two operating nuclear power plants, Unit 2 and Unit 3, which generate approximately 2,000 megawatts of electricity for homes, business and public facilities in New York City and Westchester County. Indian Point Unit 2 and Unit 3 are scheduled to shut down by April 30, 2020 and April 30, 2021, as part of an agreement with New York State. Indian Point Unit 1 was shut down in 1974.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and nearly 13,700 employees. Additional information is available at entergy.com.
About Holtec International
Holtec International is a privately held energy technology company with operation centers in Florida, New Jersey, Ohio and Pennsylvania in the U.S., and globally in Brazil, Dubai, India, South Africa, Spain, U.K. and Ukraine. Holtec's principal business concentration is in the nuclear power industry. Holtec has played a preeminent role since the 1980s in expanding nuclear plants' wet spent fuel storage capacity at over 110 reactor units in the U.S. and abroad. Dry storage and transport of nuclear fuel is another area in which Holtec is recognized as the foremost innovator and industry leader with a dominant market share and an active market presence at over 115 reactor units around the globe. Among the Company's pioneering endeavors is the world's first below-ground Consolidated Interim Storage Facility being developed in New Mexico and a 160-Megawatt walk away safe small modular reactor, SMR-160. The SMR-160 is developed to bring cost competitive carbon-free energy to all corners of the earth. Holtec is also a major supplier of special-purpose pressure vessels and critical-service heat exchange equipment such as air-cooled condensers, steam generators, feedwater heaters, and water-cooled condensers. Virtually all products produced by the company are built in its three large manufacturing plants in the U.S. and one in India. Thanks to a solid record of consistent profitability and steady growth since its founding in 1986, Holtec has no history of any long-term debt and enjoys a platinum credit rating from the financial markets. Nearly 100 U.S. and international patents protect the company's intellectual property from predation by its global competitors and lend predictable stability to its business base. To learn more about Holtec International, visit: www.holtecinternational.com.
About Comprehensive Decommissioning International
Comprehensive Decommissioning International, LLC (CDI) is a jointly owned company of Holtec International and SNC-Lavalin. Headquartered in Camden, New Jersey, CDI is an industry-leading general decommissioning contractor that provides comprehensive project solutions for retiring nuclear power plants. CDI brings together a legacy of expertise and technological innovation to protect the public in an environmentally responsible, safe and ethical manner. CDI is committed to the enhancement of the communities in which it operates, employing financially sustainable business practices that ensure the upholding of obligations made as a trusted steward of legacy nuclear materials.
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, Entergy's plans and expectations with respect to the Indian Point Energy Center, the impact of the proposed post-shutdown sale of the Indian Point Energy Center, and other statements of Entergy's plans, beliefs or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy's most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and Entergy's other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) risks associated with operating nuclear facilities, including plant relicensing, operating and regulatory costs and risks; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning Entergy's nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with strategic transactions that Entergy or its subsidiaries may undertake, including the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental or energy policies; and (i) the effects of technological changes and changes in commodity markets, capital markets or economic conditions; and (j) impacts from a terrorist attack, cybersecurity threats, data security breaches or other attempts to disrupt Entergy's business or operations, and other catastrophic events.
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SOURCE Entergy Corporation
Article Date
4/16/2019Entergy Corporation Releases 2018 Integrated Report
Source: PR Newswire
NEW ORLEANS, April 3, 2019 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) today announced its 2018 Integrated Report, "When does 1 = more?". The comprehensive report, available online at integratedreport.entergy.com, provides an overview of the company's economic, environmental and social performance for 2018 and highlights how Entergy is delivering on its commitment to growing a world-class energy business that creates sustainable value for all its stakeholders.
"The needs of our key stakeholders – customers, employees, communities and owners – are inextricably linked and are constantly evolving," said Leo Denault, Entergy chairman and CEO. "They want a partner who provides more than just safe, reliable and affordable electricity and gas. They want us to help them achieve their aspirations. Fortunately, Entergy has been thoughtfully working for years to meet those high expectations and make our customers' lives better. We're building the utility of the future, and we're doing so with a purpose that ensures long-term, enhanced value for all our stakeholders."
Entergy's strategy for driving continued success is detailed in the report.
The company is investing in new technologies that will enable more individualized relationships with customers, partnering with them on solutions that improve their daily lives. For example, Entergy is deploying advanced meters to all its utility customers over the next three years, which will offer more tools to help customers better manage their energy usage. At the same time, the company is building on its long-term climate commitments by intensifying efforts to protect the environment. Entergy is once again raising the bar on its climate commitment by reducing its carbon dioxide emission rate to 50 percent below year 2000 levels by 2030.
Entergy is transforming its power generation portfolio, replacing aging infrastructure with new, efficient and cleaner generation sources, while strengthening its transmission infrastructure to be more reliable and resilient. In tandem with these efforts, the company continues to focus on attracting, developing and retaining a talented and diverse workforce of the future, while promoting the well-being of the communities it serves by partnering to improve access to education, eliminate poverty and strengthen economic development.
In 2014, Entergy became the first U.S. energy provider to voluntarily combine its annual shareholder report with its sustainability report, making it one of the few leading U.S. companies to consolidate these documents into a single integrated report to highlight the company's business strategy and economic, social and governance performance. Entergy's 2018 reporting is in accordance with the standards set forth by the Global Reporting Initiative, the world's most widely used sustainability reporting framework. The report also aligns with the Edison Electric Institute's reporting template for electric utilities to share uniform, consistent metrics and supporting information to investors.
About Entergy Corporation
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and nearly 13,700 employees.
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SOURCE Entergy Corporation
Article Date
4/3/20194/3/2019 - Entergy Declares Dividend
Entergy Declares Dividend
Source: PR Newswire
NEW ORLEANS, April 3, 2019 /PRNewswire/ -- The Board of Directors of Entergy Corporation (NYSE: ETR) has declared a quarterly dividend of $0.91 per common share. The payment date is June 3, 2019, to shareholders of record on May 9, 2019.
About Entergy Corporation
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of $11 billion and nearly 13,700 employees.
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Twitter: @Entergy
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SOURCE Entergy Corporation
Article Date
4/3/2019Entergy Corporation Board Elects Lisa Hyland as Board Member
Source: PR Newswire
NEW ORLEANS, March 1, 2019 /PRNewswire/ -- Entergy Corporation's board of directors today announced the appointment of Elise "Lisa" Hyland, former senior vice president, special projects of EQT Corporation, as a new board member, effective March 4, 2019.
EQT Corp., together with its subsidiaries, operates as an integrated energy company headquartered in Pittsburgh. Hyland held several management roles during her 18-year career with the company.
"Lisa Hyland brings more than 35 years of combined operations and business leadership experience," said Leo Denault, Entergy Corporation's chairman of the board and CEO. "Her insight and expertise will further strengthen our board as We Power Life and build the utility of the future for our customers and communities."
During her tenure with EQT Corp., Hyland was accountable for EQT's midstream engineering and construction operations and vital to the company's organic infrastructure projects. She previously held the position of senior vice president, EQT Corp. and president, Midstream; as well as senior vice president and chief operating officer for the general partner of EQT Midstream Partners, LP. She also served as president of Equitable Gas Company, a local distribution company previously owned by EQT, and as executive vice president, midstream & mountain valley pipeline operations for EQT's Midstream business unit.
Prior to EQT, Hyland held various engineering and management positions during her 19-year tenure at Alcoa Inc. Having also spent time in corporate research and technology leadership roles, she holds five U.S. patents in the field of materials design.
She also serves on the board of directors of Marathon Oil Corp. and is an emeritus board member for Manchester Bidwell Corporation.
Hyland earned a Master of Business Administration from the Tepper School and holds a master's and a bachelor's degree in metallurgical engineering from Carnegie Mellon University.
About Entergy Corporation
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and more than 13,000 employees.
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SOURCE Entergy Corporation
Article Date
3/1/2019Entergy Reports Fourth Quarter and Full Year Financial Results; Initiates 2019 Earnings Guidance Based on Single New Measure
Source: PR Newswire
NEW ORLEANS, Feb. 20, 2019 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported a fourth quarter 2018 loss per share of (36) cents on an as-reported basis and earnings per share of 60 cents on an operational basis (non-GAAP), which excludes the effects of special items. For the full year, the company reported 2018 earnings per share of $4.63 on an as-reported basis and $7.31 on an operational basis. The as-reported results for the quarter and full year reflected asset impairments and other expenses related to the strategic decision to exit the EWC business.
"Today we are reporting strong results for another successful year, and we are firmly on track to achieve our long-term goals," said Entergy Chairman and Chief Executive Officer Leo Denault. "In 2018 we executed on our strategy and met major milestones in our transition to a pure-play utility. We expect 2019 will be no different."
Business highlights included the following:
Consolidated Earnings (GAAP and Non-GAAP Measures) | ||||||
Fourth Quarter | Year-to-Date | |||||
2018 | 2017 | Change | 2018 | 2017 | Change | |
(After-tax, $ in millions) | ||||||
As-reported earnings | (66) | (479) | 413 | 849 | 412 | 437 |
Less special items | (176) | (617) | 440 | (493) | (889) | 396 |
Operational earnings (non-GAAP) | 110 | 138 | (27) | 1,341 | 1,300 | 41 |
Estimated weather in billed sales | 25 | 11 | 14 | 67 | (79) | 146 |
(After-tax, per share in $) | ||||||
As-reported earnings | (0.36) | (2.66) | 2.30 | 4.63 | 2.28 | 2.35 |
Less special items | (0.96) | (3.42) | 2.46 | (2.68) | (4.92) | 2.24 |
Operational earnings (non-GAAP) | 0.60 | 0.76 | (0.16) | 7.31 | 7.20 | 0.11 |
Estimated weather in billed sales | 0.13 | 0.06 | 0.07 | 0.37 | (0.44) | 0.80 |
Calculations may differ due to rounding |
Consolidated Results
For fourth quarter 2018, the company reported a loss of $(66 million), or (36) cents per share, on an as-reported basis and earnings of $110 million, or 60 cents per share, on an operational basis. This compared to a fourth quarter 2017 loss of $(479 million), or $(2.66) per share, on an as-reported basis and earnings of $138 million, or 76 cents per share on an operational basis.
For the full year, the company reported 2018 earnings of $849 million, or $4.63 per share, on an as-reported basis and $1,341 million, or $7.31 per share, on an operational basis. This compared to 2017 earnings of $412 million, or $2.28 per share, on an as-reported basis and earnings of $1,300 million, or $7.20 per share, on an operational basis.
Summary discussions by business are below. Additional details, including information on OCF by business, are provided in Appendix A and a comprehensive analysis of quarterly and year-to-date variances by business is provided in Appendix B.
Utility, Parent & Other Results
For fourth quarter 2018, the Utility business reported earnings attributable to Entergy Corporation of $388 million, or $2.12 per share, on an as-reported basis, and earnings of $350 million, or $1.91 per share, on an operational basis. This compared to a fourth quarter 2017 loss of $(47 million), or (26) cents per share, on an as-reported basis, and earnings of $133 million, or 74 cents per share on an operational basis.
Drivers for the increase in quarterly earnings included:
The drivers above were partially offset by:
The current period results also included a $215 million reduction in income taxes, with a corresponding reduction in net revenue, for the amortization of unprotected excess ADIT. This was neutral to earnings.
For fourth quarter 2018, Parent & Other reported a loss of $(81 million), or (44) cents per share, on both an as-reported and operational basis. This compared to a fourth quarter 2017 loss of $(6 million), or (4) cents per share, on an as-reported basis, and a loss of $(58 million), or (33) cents per share, on an operational basis.
As-reported results for 2017 reflected a reduction in income tax expense of $52 million for the revaluation of certain tax assets, which resulted from tax reform. This was considered a special item and excluded from operational earnings.
On a combined basis, Utility, Parent & Other (non-GAAP) contributed $1.68 to fourth quarter 2018 consolidated EPS compared to a loss of (30) cents in fourth quarter 2017. On an adjusted basis, excluding special items and normalizing weather and income taxes, Utility, Parent & Other contributed 51 cents in fourth quarter 2018 to consolidated EPS, compared to 48 cents in fourth quarter 2017.
For full year 2018, the Utility business earned net income attributable to Entergy Corporation of $1,483 million, or $8.09 per share, on an as-reported basis, and earnings of $1,445 million, or $7.88 per share, on an operational basis. This compared to full year 2017 earnings of $762 million, or $4.22 per share, on an as-reported basis, and $942 million, or $5.22 per share on an operational basis.
Drivers for the increase in annual earnings included:
The drivers above were partially offset by:
Full year 2018 results also reflected the return of unprotected excess ADIT to customers, which affected several income statement line items but was neutral to earnings. Specifically, this reduced income taxes by $775 million, but was offset in net revenue and non-fuel O&M.
For 2018, Parent & Other reported a loss of $(292 million), or $(1.59) per share, on an as-reported and operational basis. This compared to a 2017 loss of $(175 million), or (97) cents per share, on an as-reported basis, and $(228 million), or $(1.26) per share, on an operational basis. As-reported results for 2017 included a decrease in income tax expense, which resulted from tax reform as described above. This was considered a special item and excluded from operational earnings. 2018 results also reflected higher interest expense.
On a combined basis, Utility, Parent & Other (non-GAAP) contributed $6.50 to 2018 consolidated EPS, compared to $3.25 in 2017. On an adjusted basis, normalizing weather and income taxes, Utility, Parent & Other contributed $4.71 to 2018 consolidated EPS, compared to $4.57 in 2017.
Appendix C contains additional details on Utility financial and operating measures, including a reconciliation for non-GAAP Utility, Parent & Other adjusted earnings and EPS.
Entergy Wholesale Commodities Results
For fourth quarter 2018, EWC recorded a loss attributable to Entergy Corporation of $(373 million), or $(2.04) per share, on an as-reported basis and loss $(158 million), or (87) cents per share, on an operational basis. This compared to fourth quarter 2017 loss of $(425 million), or $(2.36) per share, on an as-reported basis and earnings of $63 million, or 35 cents per share, on an operational basis.
As-reported results in both periods reflected impairments and other expenses recorded as a result of the strategic decision to exit the EWC business. In fourth quarter 2018, these items totaled $(214 million), or $(1.17) per share. This amount included a revision to Vermont Yankee's asset retirement obligation as a result of its approved sale, which resulted in in a pre-tax asset impairment of $(173 million). In fourth quarter 2017, these items totaled $(92 million), or (51) cents per share. Fourth quarter 2017 results also reflected the write-down of certain tax assets totaling $(397 million) as a result of tax reform. All of these items were considered special items and excluded from operational earnings.
The current period results included losses on decommissioning trust fund investments, as well as lower net revenue as a result of lower nuclear energy volume. Partially offsetting these items were lower non-fuel O&M expense and lower income tax expense primarily due to lower pre-tax income.
For the full year, EWC reported a loss of $(343 million), or $(1.87) per share, on an as-reported basis, and earnings of $188 million, or $1.02 per share on an operational basis. In 2017, EWC realized a loss of $(175 million), or (97) cents per share, on an as-reported basis, and earnings of $586 million, or $3.24 per share on an operational basis. Both periods reflected the effects of the strategic decision to exit the EWC business as well as the 2017 tax reform item noted above. Other drivers included lower net revenue from the nuclear business, losses on decommissioning trust fund investments and lower depreciation and decommissioning expenses. Additionally, 2018 results included less favorable income tax items, excluding the 2017 tax reform item.
Appendix D contains additional details on EWC financial and operating measures, including a reconciliation for non-GAAP EWC operational adjusted EBITDA.
Earnings Guidance
Entergy initiated its 2019 adjusted earnings guidance range of $5.10 to $5.50 per share. See webcast presentation slides for additional details.
The company has provided 2019 earnings guidance with regard to the non-GAAP measure of Entergy adjusted EPS. This measure excludes from the corresponding GAAP financial measures 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 2019. One such adjustment will be the exclusion of EWC earnings from Entergy adjusted EPS. We currently estimate that the contribution of EWC to Entergy's as-reported EPS will be approximately $(1.25) per share in 2019. This estimate is subject to substantial uncertainty due to, among other things, the potential effects of the strategic decision to exit the EWC business.
Earnings Teleconference
A teleconference will be held at 10:00 a.m. Central Time on Wednesday, February 20, 2019, to discuss Entergy's quarterly earnings announcement and the company's financial performance. The teleconference may be accessed by visiting Entergy's website at www.entergy.com or by dialing 844-309-6569, conference ID 6799533, no more than 15 minutes prior to the start of the call. The webcast slide presentation is also posted to Entergy's website concurrent with this release, which was issued before market open on the day of the call. A replay of the teleconference will be available on Entergy's website at www.entergy.com and by telephone. The telephone replay will be available through February 27, 2019, by dialing 855-859-2056, conference ID 6799533. This release and the webcast slide presentation are also available on the Entergy Investor Relations mobile web app at iretr.com.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and nearly 13,700 employees.
Entergy Corporation's common stock is listed on the New York and Chicago stock exchanges 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 slide presentation. Both documents are available on Entergy's Investor Relations website at www.entergy.com/investor_relations and on Entergy's Investor Relations mobile web app at iretr.com.
Entergy maintains a web page as part of its Investor Relations website, entitled "Regulatory and Other Information," which provides investors with key updates of certain regulatory proceedings and important milestones on the execution of its strategy. While some of this information may be considered material information, investors should not rely exclusively on this page for all relevant company information.
For definitions of certain operating measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the earnings release materials, see Appendix F.
Non-GAAP Financial Measures
This news release contains non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes 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 release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Certain non-GAAP financial measures in this news release could differ from GAAP in that the figure or ratio states or includes operational earnings. Operational earnings are not calculated in accordance with GAAP because they exclude the effect of "special items." Special items are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, and may include items such as impairments, and certain gains or losses including those that may occur as a result of strategic decisions such as Entergy's decision to exit the EWC business. In addition, other financial measures including net income (or earnings), adjusted for preferred dividends and tax effected interest expense; net revenue; return on average invested capital; and return on average common equity are included on both an operational and as-reported basis. In each case, the metrics defined as "operational" would exclude the effect of special items as defined above.
Entergy reports the combination of the Utility segment with Parent & Other as Utility, Parent & Other, which is all of Entergy excluding the EWC segment, since management uses this combination in making decisions about its ongoing business in light of its decision to exit the merchant power business. Entergy also reports Utility, Parent & Other adjusted earnings, which combines the Utility segment with Parent & Other, excludes applicable special items and normalizes weather and income tax expense for the periods presented, because it believes that these financial metrics provide useful information to investors in evaluating the ongoing results of Entergy's businesses and assist investors in comparing Entergy's financial performance to the financial performance of other companies in the Utility sector. The methodologies employed to determine the normalized weather and income tax expense adjustments, each of which is further described in this release, involve estimations and the judgement of management.
Beginning with first quarter 2019 financial results, Entergy intends to report 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 its decision to exit the merchant power business. Beginning with this release, Entergy is also providing guidance and outlooks using adjusted earnings on a per share basis. 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 EWC segment given its strategic decision to exit the EWC business, and items such as certain costs, expenses, significant tax items, or other specified items. Entergy believes that this financial measure provides 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.
In addition to reporting earnings per share on a consolidated basis, Entergy reports on a per share basis the earnings or loss of each of its segments, together with the combination of the Utility segment and Parent & Other. These per share measures represent the net income or loss of such segment or segments divided by the diluted average number of common shares outstanding for the period. Beginning with Entergy's first quarter 2019 financial results, Entergy intends to report its adjusted earnings on a per share basis. Entergy believes such per share measures provide useful information to investors in understanding the results of operations of those businesses and their contribution to Entergy's consolidated results of operations.
Other non-GAAP measures, including adjusted EBITDA; operational adjusted EBITDA; gross liquidity; debt to capital ratio, excluding securitization debt; net debt to net capital ratio, excluding securitization debt; parent debt to total debt ratio, excluding securitization debt; operational FFO to debt ratio, excluding securitization debt and operational FFO to debt ratio, excluding securitization debt and return of unprotected excess ADIT are measures Entergy uses internally for management and board discussions and performance monitoring activities 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.
The non-GAAP financial measures and other reported adjusted items in this release are presented in addition to, and in conjunction with, results presented in accordance with GAAP. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. 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. Investors are strongly encouraged to review Entergy's consolidated financial statements and publicly filed reports in their entirety and to not rely on any single financial measure. 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, Entergy's 2019 earnings guidance; its current financial and operational outlook; and other statements of Entergy's plans, beliefs or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy's most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and Entergy's other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) risks associated with operating nuclear facilities, including plant relicensing, operating and regulatory costs and risks; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning Entergy's nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with strategic transactions that Entergy or its subsidiaries may undertake, including the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental or energy policies; and (i) the effects of technological changes and changes in commodity markets, capital markets or economic conditions; and (j) impacts from a terrorist attack, cybersecurity threats, data security breaches or other attempts to disrupt Entergy's business or operations, and other catastrophic events.
Fourth Quarter 2018 Earnings Release Appendices and Financial Statements
Appendices
Appendices are presented in this section as follows:
Financial Statements
Financial statements are presented in this section.
A: Consolidated Results and Special Items
Appendix A-1 provides a comparative summary of consolidated earnings, including a reconciliation of as-reported earnings (GAAP) to operational earnings (non-GAAP).
Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures Fourth Quarter and Year-to-Date 2018 vs. 2017 (See Appendix A-3 and Appendix A-4 for details on special items, including income tax effects on adjustments) | ||||||
Fourth Quarter | Year-to-Date | |||||
2018 | 2017 | Change | 2018 | 2017 | Change | |
(After-tax, $ in millions) | ||||||
Earnings (loss) | ||||||
Utility | 388 | (47) | 435 | 1,483 | 762 | 722 |
Parent & Other | (81) | (6) | (75) | (292) | (175) | (116) |
EWC | (373) | (425) | 53 | (343) | (175) | (168) |
Consolidated | (66) | (479) | 413 | 849 | 412 | 437 |
Less special items | ||||||
Utility | 38 | (181) | 219 | 38 | (181) | 219 |
Parent & Other | - | 52 | (52) | - | 52 | (52) |
EWC | (214) | (488) | 274 | (531) | (760) | 229 |
Consolidated | (176) | (617) | 440 | (493) | (889) | 396 |
Operational earnings (loss) (non-GAAP) | ||||||
Utility | 350 | 133 | 217 | 1,445 | 942 | 503 |
Parent & Other | (81) | (58) | (23) | (292) | (228) | (64) |
EWC | (158) | 63 | (221) | 188 | 586 | (398) |
Consolidated | 110 | 138 | (27) | 1,341 | 1,300 | 41 |
Estimated weather in billed sales | 25 | 11 | 14 | 67 | (79) | 146 |
Diluted average number of common shares outstanding (in millions) | 183.1 | 180.3 | 183.4 | 180.5 | ||
(After-tax, per share in $) (a) | ||||||
Earnings (loss) | ||||||
Utility | 2.12 | (0.26) | 2.38 | 8.09 | 4.22 | 3.87 |
Parent & Other | (0.44) | (0.04) | (0.40) | (1.59) | (0.97) | (0.62) |
EWC | (2.04) | (2.36) | 0.32 | (1.87) | (0.97) | (0.90) |
Consolidated | (0.36) | (2.66) | 2.30 | 4.63 | 2.28 | 2.35 |
Less special items | ||||||
Utility | 0.21 | (1.00) | 1.21 | 0.21 | (1.00) | 1.21 |
Parent & Other | - | 0.29 | (0.29) | - | 0.29 | (0.29) |
EWC | (1.17) | (2.71) | 1.54 | (2.89) | (4.21) | 1.32 |
Consolidated | (0.96) | (3.42) | 2.46 | (2.68) | (4.92) | 2.24 |
Operational earnings (loss) (non-GAAP) | ||||||
Utility | 1.91 | 0.74 | 1.17 | 7.88 | 5.22 | 2.66 |
Parent & Other | (0.44) | (0.33) | (0.11) | (1.59) | (1.26) | (0.33) |
EWC | (0.87) | 0.35 | (1.22) | 1.02 | 3.24 | (2.22) |
Consolidated | 0.60 | 0.76 | (0.16) | 7.31 | 7.20 | 0.11 |
Estimated weather in billed sales | 0.13 | 0.06 | 0.07 | 0.37 | (0.44) | 0.80 |
Calculations may differ due to rounding | |
(a) | Per share amounts are calculated by dividing the earnings (loss) by the diluted average number of common shares outstanding for the period. |
See Appendix B for detailed earnings variance analysis.
Appendix A-2 provides a comparative summary of OCF by business.
Appendix A-2: Consolidated Operating Cash Flow | ||||||
Fourth Quarter and Year-to-Date 2018 vs. 2017 | ||||||
($ in millions) | ||||||
Fourth Quarter | Year-to-Date | |||||
2018 | 2017 | Change | 2018 | 2017 | Change | |
Utility | 699 | 934 | (235) | 2,693 | 2,939 | (246) |
Parent & Other | (20) | (134) | 114 | (234) | (452) | 218 |
EWC | (153) | 111 | (264) | (74) | 137 | (211) |
Consolidated | 526 | 911 | (385) | 2,385 | 2,624 | (239) |
Calculations may differ due to rounding |
OCF decreased quarter-over-quarter due primarily to the return of the unprotected excess ADIT to customers, as well as lower net revenue at EWC, higher spending on nuclear refueling outages and higher severance and retention payments at EWC.
OCF decreased year-over-year, driven by the return of the unprotected excess ADIT to customers and lower net revenue at EWC. Favorable weather at the Utility and lower severance and retention payments at EWC, partially offset the decrease.
For both the quarter and the full year, intercompany income tax payments contributed to the line of business variances.
Appendix A-3 and Appendix A-4 list special items by business. Amounts are shown on both an earnings and EPS basis. Special items are included in as-reported earnings consistent with GAAP, but are excluded from operational earnings. As a result, operational earnings is considered a non-GAAP measure.
Appendix A-3: Special Items by Driver (shown as positive/(negative) impact on earnings or EPS) | ||||||
Fourth Quarter and Year-to-Date 2018 vs. 2017 | ||||||
(Pre-tax except for income tax effects and total, $ in millions) | ||||||
Fourth Quarter | Year-to-Date | |||||
2018 | 2017 | Change | 2018 | 2017 | Change | |
Utility | ||||||
Tax reform | 38 | (181) | 219 | 38 | (181) | 219 |
Total Utility | 38 | (181) | 219 | 38 | (181) | 219 |
Parent & Other | ||||||
Tax reform | - | 52 | (52) | - | 52 | (52) |
Total Parent & Other | - | 52 | (52) | - | 52 | (52) |
EWC | ||||||
Items associated with the strategic decision to exit the EWC business | (271) | (141) | (131) | (672) | (628) | (44) |
Income tax effect on adjustments above (b) | 57 | 49 | 8 | 141 | 220 | (79) |
Income tax benefit resulting from FitzPatrick transaction | - | - | - | - | 45 | (45) |
Tax reform | - | (397) | 397 | - | (397) | 397 |
Total EWC | (214) | (488) | 274 | (531) | (760) | 229 |
Total special items | (176) | (617) | 440 | (493) | (889) | 396 |
(After-tax, per share in $) (c) | ||||||
Utility | ||||||
Tax reform | 0.21 | (1.00) | 1.21 | 0.21 | (1.00) | 1.21 |
Total Utility | 0.21 | (1.00) | 1.21 | 0.21 | (1.00) | 1.21 |
Parent & Other | ||||||
Tax reform | - | 0.29 | (0.29) | - | 0.29 | (0.29) |
Total Parent & Other | - | 0.29 | (0.29) | - | 0.29 | (0.29) |
EWC | ||||||
Items associated with the strategic decision to exit the EWC business | (1.17) | (0.51) | (0.66) | (2.89) | (2.26) | (0.63) |
Income tax benefit resulting from FitzPatrick transaction | - | - | - | - | 0.25 | (0.25) |
Tax reform | - | (2.20) | 2.20 | - | (2.20) | 2.20 |
Total EWC | (1.17) | (2.71) | 1.54 | (2.89) | (4.21) | 1.32 |
Total special items | (0.96) | (3.42) | 2.46 | (2.68) | (4.92) | 2.24 |
Calculations may differ due to rounding | |
(b) | Income tax effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply. |
(c) | EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply to each adjustment and then dividing by the diluted average number of common shares outstanding for the period. |
Appendix A-4: Special Items by Income Statement Line Item (shown as positive/(negative) impact on earnings) | ||||||
Fourth Quarter and Year-to-Date 2018 vs. 2017 | ||||||
(Pre-tax except for Income taxes and Total, $ in millions) | ||||||
Fourth Quarter | Year-to-Date | |||||
2018 | 2017 | Change | 2018 | 2017 | Change | |
Utility | ||||||
Net revenue | - | 56 | (56) | - | 56 | (56) |
Income taxes (d) | 38 | (236) | 274 | 38 | (236) | 274 |
Total Utility | 38 | (181) | 219 | 38 | (181) | 219 |
Parent & Other | ||||||
Income taxes (d) | - | 52 | (52) | - | 52 | (52) |
Total Parent & Other | - | 52 | (52) | - | 52 | (52) |
EWC | ||||||
Net revenue | - | - | - | - | 91 | (91) |
Non-fuel O&M | (34) | (22) | (11) | (131) | (201) | 70 |
Asset write-off and impairments | (235) | (117) | (118) | (532) | (538) | 6 |
Taxes other than income taxes | (3) | (2) | (1) | (8) | (10) | 1 |
Gain on sale of assets | - | - | - | - | 16 | (16) |
Miscellaneous net (other income) | - | - | - | - | 15 | (15) |
Income taxes (d) | 57 | (347) | 404 | 141 | (133) | 274 |
Total EWC | (214) | (488) | 274 | (531) | (760) | 229 |
Total special items (after-tax) | (176) | (617) | 440 | (493) | (889) | 396 |
Calculations may differ due to rounding | |
(d) | Income taxes included the income tax effect of the special items which were calculated using the estimated income tax rate that is expected to apply to each item. The year-to-date 2017 period also included the income tax benefit which resulted from the FitzPatrick transaction. |
B: Earnings Variance Analysis
Appendix B provides details of current quarter 2018 versus 2017 as-reported and operational earnings variance analysis for Utility, Parent & Other and EWC.
Appendix B-1: As-Reported and Operational Earnings Variance Analysis | |||||||||||
Fourth Quarter 2018 vs. 2017 | |||||||||||
(Pre-tax except for Income taxes, $ in millions) | |||||||||||
Utility | Parent & Other | EWC | Consolidated | ||||||||
As-Reported | Operational | As-Reported | Operational | As- Reported | Operational | As- Reported | Operational | ||||
2017 earnings | (47) | 133 | (6) | (58) | (425) | 63 | (479) | 138 | |||
Net revenue | (315) | (259) | (e) | - | - | (52) | (52) | (f) | (367) | (311) | |
Non-fuel O&M | 33 | 33 | (g) | (2) | (2) | 12 | 23 | (h) | 43 | 54 | |
Asset write-offs and impairments | - | - | - | - | (118) | - | (i) | (118) | - | ||
Decommissioning expense | (2) | (2) | - | - | (5) | (5) | (7) | (7) | |||
Taxes other than income taxes | (7) | (7) | - | - | (1) | - | (8) | (7) | |||
Depreciation/amortization exp. | (13) | (13) | - | - | 3 | 3 | (10) | (10) | |||
Other income (deductions) | (7) | (7) | (4) | (4) | (247) | (247) | (j) | (258) | (258) | ||
Interest exp. and other charges | 4 | 4 | (11) | (11) | (2) | (2) | (9) | (9) | |||
Income taxes | 742 | 468 | (k) | (58) | (6) | (l) | 463 | 58 | (m) | 1,147 | 520 |
2018 earnings | 388 | 350 | (81) | (81) | (373) | (158) | (66) | 110 | |||
Appendix B-2: As-Reported and Operational Earnings Variance Analysis | |||||||||||
Year-to-Date 2018 vs. 2017 | |||||||||||
(Pre-tax except for Income taxes, $ in millions) | |||||||||||
Utility | Parent & Other | EWC | Consolidated | ||||||||
As-Reported | Operational | As-Reported | Operational | As- Reported | Operational | As- Reported | Operational | ||||
2017 earnings | 762 | 942 | (175) | (228) | (175) | 586 | 412 | 1,300 | |||
Net revenue | (693) | (637) | (e) | - | - | (192) | (101) | (f) | (885) | (738) | |
Non-fuel O&M | (81) | (81) | (g) | (10) | (10) | 67 | 13 | (h) | (25) | (78) | |
Asset write-offs and impairments | - | - | - | - | 6 | - | 6 | - | |||
Decommissioning expense | 1 | 1 | - | - | 16 | 16 | (n) | 17 | 17 | ||
Taxes other than income taxes | (26) | (26) | (o) | - | - | 1 | - | (24) | (25) | ||
Depreciation/amortization exp. | (23) | (23) | (p) | - | - | 43 | 43 | (q) | 20 | 20 | |
Other income (deductions) | 22 | 22 | (r) | (7) | (7) | (222) | (207) | (j) | (206) | (192) | |
Interest exp. and other charges | (6) | (6) | (29) | (29) | (s) | (10) | (10) | (45) | (45) | ||
Income taxes | 1,527 | 1,253 | (k) | (70) | (18) | (l) | 123 | (151) | (m) | 1,579 | 1,083 |
2018 earnings | 1,483 | 1,445 | (292) | (292) | (343) | 188 | 849 | 1,341 | |||
Calculations may differ due to rounding |
Utility Net Revenue As-reported Variance Analysis 2018 vs. 2017 (Pre-tax, $ in millions) | ||
Fourth Quarter | Year-to-Date | |
Estimated weather | 15 | 218 |
Volume/unbilled | (7) | (8) |
Retail electric price | 33 | 106 |
Regulatory credit for tax reform | (56) | (56) |
Regulatory charge for lower tax rate | (25) | (102) |
Reg. provisions for E-AR and E-MS FRPs | (44) | (44) |
Regulatory liability for tax sharing | (40) | (40) |
Unprotected excess ADIT | (215) | (770) |
Other, including Grand Gulf recovery | 24 | 3 |
Total | (315) | (693) |
(e) | The fourth quarter and year-to-date earnings decreases from lower Utility net revenue were driven by the return of unprotected excess ADIT to customers (offset in income taxes), as well as a regulatory credit of $56 million in fourth quarter 2017 as a result of tax reform (classified as a special item). Regulatory charges at E-LA, E-TX, and E-NO to return the benefit of the lower federal tax rate to customers, regulatory provisions that lowered earnings into the allowed ranges at E-AR and E-MS as required by their FRPs, and a regulatory liability for tax sharing with E-AR customers (this partially offsets the income tax item discussed in footnote k) contributed to the variances. These decreases were partially offset by the effects of weather. In the fourth quarter, weather-adjusted billed sales volume decreased. However year-to-date weather-adjusted billed sales volume increased, but this was more than offset by lower volume in the unbilled period. 2018 results also included rate changes from E-AR's and E-LA's FRP and E-TX's base rate case. |
(f) | The fourth quarter and year-to-date earnings decreases from lower EWC net revenue reflected lower prices as well as lower volume from EWC's merchant nuclear plants. The year-to-date as-reported variance reflected cost reimbursements from the buyer related to the FitzPatrick sale in first quarter 2017 (classified as a special item and offset in non-fuel O&M). |
(g) | The fourth quarter earnings increase from lower Utility non-fuel O&M was due primarily to lower nuclear costs, lower benefits costs and a gain on the sale of an asset. The year-to-date earnings decrease from higher Utility non-fuel O&M was due primarily to higher spending on fossil and distribution operations, as well as higher transmission and IT costs. Energy efficiency spending and storm reserves were also higher (largely offset in net revenue). This was partially offset by higher nuclear insurance refunds in 2018 compared to 2017, as well as the gain on the sale of an asset in fourth quarter 2018. |
(h) | The fourth quarter earnings increase from lower EWC non-fuel O&M was due primarily to lower labor and contract costs. The year-to-date as-reported earnings increase reflected costs incurred in first quarter 2017 related to the agreement to sell FitzPatrick (classified as a special item and offset in net revenue). This was partially offset by higher severance and retention costs related to the strategic decision to exit the EWC business compared to 2017, as well as the gain on the sale of FitzPatrick in first quarter 2017 (both classified as a special items). |
(i) | The fourth quarter as-reported earnings decrease from higher EWC asset write-offs and impairments resulted from a revision of Vermont Yankee's ARO, partially offset by a gain on proceeds from the settlement of spent fuel litigation at Pilgrim (both classified as special items). |
(j) | The fourth quarter and year-to-date earnings decreases from lower EWC other income (deductions) were due largely to losses on decommissioning trust fund investments, including unrealized losses on equity investments that were previously recorded as other comprehensive income on the balance sheet, now recorded to the income statement. The year-to-date as-reported earnings decrease also reflected the absence of gains on the receipt of the Indian Point 3 and FitzPatrick decommissioning trust funds from NYPA in first quarter 2017 (classified as a special item). |
(k) | The fourth quarter and year-to-date earnings increases from lower Utility income taxes were primarily due to the amortization of the unprotected excess ADIT (offset in net revenue) and an income tax item in fourth quarter 2018 of approximately $170 million resulting from the restructuring of E-AR (this was partly offset by customer sharing recorded as a regulatory charge, included in net revenue). The change in the federal income tax rate also contributed to the increases. The fourth quarter and year-to-date as-reported earnings increases also reflected the write-down of certain tax assets totaling $236 million as a result of tax reform in fourth quarter 2017 (classified as a special item and a portion offset in net revenue) and $38 million in fourth quarter 2018 related to the reversal of a tax accrual (classified as special item). The year-to-date variance also reflected income tax benefits from the settlement of the 2012‒2013 IRS audit in second quarter 2018. |
(l) | The fourth quarter and year-to-date earnings decreases reflected a fourth quarter 2017 reduction of income tax totaling $52 million as a result of tax reform (classified as a special item). The change in the federal income tax rate also contributed to the variances. |
(m) | The fourth quarter and year-to-date as-reported earnings increases from lower EWC income taxes reflected the write-down of certain tax assets totaling $397 million as a result of tax reform in fourth quarter 2017 (classified as a special item). The year-to-date as-reported variance also reflected additional income tax expense due to the lower level of special items and a tax benefit in first quarter 2017, which resulted from the sale of FitzPatrick (classified as a special item). The year-to-date operational earnings decrease reflected a $373 million reduction in tax expense in second quarter 2017. The increase was partially offset by $13 million in tax benefits from the settlement of the 2012‒2013 IRS audit in second quarter 2018, a reduction in income tax expense of $107 million for a restructuring of its interest in an EWC decommissioning trust fund in third quarter 2018 and a benefit of $23 million from the conclusion of a state income tax audit also in third quarter 2018. Changes in pre-tax income and the federal income tax rate also contributed to the fourth quarter and year-to-date variances. |
(n) | The year-to-date earnings increase from lower EWC decommissioning expense was due primarily to the sale of FitzPatrick in first quarter 2017. |
(o) | The year-to-date earnings decrease from higher Utility taxes other than income taxes was due to higher ad valorem and payroll taxes. |
(p) | The year-to-date earnings decrease from higher Utility depreciation expense was due to higher plant in service, partially offset by updated depreciation rates at SERI (offset in net revenue). |
(q) | The year-to-date earnings increase from lower EWC depreciation expense was due primarily to the decision to operate Palisades until May 2022, thereby extending the period in which the plant is depreciated. |
(r) | The year-to-date earnings increase from higher Utility other income (deductions) was due primarily to higher AFUDC – equity funds due to higher CWIP balances, partially offset by losses on the decommissioning trust fund investments (largely offset in net revenue). |
(s) | The year-to-date earnings decrease from higher Parent & Other interest expense was due to higher borrowings, combined with higher variable interest rates. |
C: Utility Financial and Operating Measures
Appendix C-1 provides a comparative summary of Utility, Parent & Other adjusted earnings and EPS contribution, each of which excludes the effects of special items and normalizes weather and income tax expense.
Appendix C-1: Utility, Parent & Other Adjusted Earnings and EPS - Reconciliation of GAAP to Non-GAAP Measures | |||||||||||||
Fourth Quarter | Year-to-Date | ||||||||||||
2018 | 2017 | Change | 2018 | 2017 | Change | ||||||||
($ in millions) | |||||||||||||
Utility as-reported earnings (loss) | 388 | (47) | 435 | 1,483 | 762 | 722 | |||||||
Parent & Other as-reported (loss) | (81) | (6) | (75) | (292) | (175) | (116) | |||||||
UP&O as-reported earnings | 307 | (54) | 360 | 1,191 | 586 | 605 | |||||||
Less: | |||||||||||||
Special items | 38 | (129) | 167 | 38 | (129) | 167 | |||||||
Estimated weather (t) | 34 | 18 | 15 | 90 | (128) | 218 | |||||||
Tax effect of estimated weather (u) | (9) | (7) | (2) | (23) | 49 | (72) | |||||||
Portion of E-AR and E-MS weather reserved for customers | (15) | - | (15) | (15) | - | (15) | |||||||
Tax effect on E-AR and E-MS customer reserve (u) | 4 | - | 4 | 4 | - | 4 | |||||||
Estimated weather, net of customer reserve (after-tax) | 14 | 11 | 3 | 56 | (79) | 135 | |||||||
Difference between effective and statutory income tax rates (v) | 160 | (22) | 183 | 233 | (31) | 264 | |||||||
UP&O adjusted earnings | 94 | 86 | 8 | 864 | 824 | 40 | |||||||
(After-tax, per share in $) (w) | |||||||||||||
Utility as-reported earnings | 2.12 | (0.26) | 2.38 | 8.09 | 4.22 | 3.87 | |||||||
Parent & Other as-reported (loss) | (0.44) | (0.04) | (0.40) | (1.59) | (0.97) | (0.62) | |||||||
UP&O as-reported earnings | 1.68 | (0.30) | 1.98 | 6.50 | 3.25 | 3.25 | |||||||
Less: | |||||||||||||
Special items | 0.21 | (0.71) | 0.92 | 0.21 | (0.71) | 0.92 | |||||||
Estimated weather, net of customer reserve | 0.08 | 0.06 | 0.01 | 0.31 | (0.44) | 0.75 | |||||||
Difference between effective and statutory income tax rates (v) | 0.88 | (0.12) | 1.00 | 1.27 | (0.17) | 1.44 | |||||||
UP&O adjusted earnings | 0.51 | 0.48 | 0.04 | 4.71 | 4.57 | 0.14 | |||||||
Calculations may differ due to rounding | |
(t) | The effects of weather were estimated using heating degree days and cooling degree days for the billing cycles from certain locations within each jurisdiction and comparing to "normal" weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change. |
(u) | Income tax effect is calculated by multiplying the pre-tax amount by the estimated income tax rates that are expected to apply. |
(v) | Other income tax items represent the adjustment made to income tax expense to reflect a statutory tax rate estimated to be 25.5% in 2018 and 38.5% in 2017. The fourth quarter and year-to-date 2018 periods exclude reductions of $215 million and $775 million, respectively, for the return of unprotected excess ADIT (no earnings impact). |
(w) | EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply to each adjustment and then dividing by the diluted average number of common shares outstanding for the period. |
Appendix C-2 provides comparative summaries of Utility operating and financial measures.
Appendix C-2: Utility Operating and Financial Measures | ||||||||||||
Fourth Quarter and Year-to-Date 2018 vs. 2017 | ||||||||||||
Fourth Quarter | Year-to-Date | |||||||||||
2018 | 2017 | % Change | % Weather | 2018 | 2017 | % Change | % Weather | |||||
GWh billed | ||||||||||||
Residential | 8,250 | 8,024 | 2.8% | (0.1%) | 37,107 | 33,834 | 9.7% | 0.5% | ||||
Commercial | 7,026 | 7,150 | (1.7%) | (1.8%) | 29,426 | 28,745 | 2.4% | 0.1% | ||||
Governmental | 646 | 627 | 3.0% | 3.1% | 2,581 | 2,511 | 2.8% | 1.9% | ||||
Industrial | 11,882 | 11,940 | (0.5%) | (0.5%) | 48,384 | 47,769 | 1.3% | 1.3% | ||||
Total retail sales | 27,804 | 27,741 | 0.2% | (0.6%) | 117,498 | 112,859 | 4.1% | 0.8% | ||||
Wholesale | 2,927 | 3,295 | (11.2%) | 11,715 | 11,550 | 1.4% | ||||||
Total sales | 30,731 | 31,036 | (1.0%) | 129,213 | 124,409 | 3.9% | ||||||
Number of electric retail customers | ||||||||||||
Residential | 2,481,027 | 2,466,671 | 0.6% | |||||||||
Commercial | 356,618 | 354,189 | 0.7% | |||||||||
Governmental | 17,839 | 17,828 | 0.1% | |||||||||
Industrial | 45,790 | 46,193 | (0.9%) | |||||||||
Total retail customers | 2,901,274 | 2,884,881 | 0.6% | |||||||||
Net revenue ($ in millions) | 1,238 | 1,553 | (20.3%) | 5,626 | 6,318 | (11.0%) | ||||||
Non-fuel O&M (per MWh in $) | 22.36 | 23.21 | (3.7%) | 20.52 | 20.66 | (0.7%) | ||||||
Calculations may differ due to rounding | |
Certain prior year data has been reclassified to conform with current year presentation | |
(x) | The effects of weather were estimated using heating degree days and cooling degree days for the billing cycles from certain locations within each jurisdiction and comparing to "normal" weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change. |
D: EWC Financial and Operating Measures
Appendix D-1 provides a comparative summary of EWC operational adjusted EBITDA (non-GAAP).
Appendix D-1: EWC Operational Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures | ||||||
($ in millions) | Fourth Quarter | Year-to-Date | ||||
2018 | 2017 | Change | 2018 | 2017 | Change | |
Net income (loss) | (372) | (425) | 53 | (341) | (172) | (169) |
Add back: interest expense | 8 | 6 | 2 | 34 | 24 | 10 |
Add back: income taxes | (102) | 361 | (463) | (269) | (146) | (123) |
Add back: depreciation and amortization | 34 | 36 | (2) | 150 | 193 | (43) |
Subtract: interest and investment income | (169) | 81 | (250) | 15 | 224 | (209) |
Add back: decommissioning expense | 64 | 60 | 4 | 239 | 255 | (16) |
Adjusted EBITDA (non-GAAP) | (199) | (43) | (156) | (202) | (71) | (131) |
Add back pre-tax special items for: | ||||||
Items associated with the strategic decision to exit the EWC business | 271 | 141 | 130 | 672 | 644 | 28 |
Gain on the sale of FitzPatrick | - | - | - | - | (16) | 16 |
Operational adjusted EBITDA (non-GAAP) | 72 | 98 | (26) | 470 | 557 | (87) |
Calculations may differ due to rounding |
Appendix D-2 provides a comparative summary of EWC operating and financial measures.
Appendix D-2: EWC Operating and Financial Measures | ||||||
Fourth Quarter and Year-to-Date 2018 vs. 2017 (See Appendix G for reconciliation of GAAP to non-GAAP measures) | ||||||
Fourth Quarter | Year-to-Date | |||||
2018 | 2017 | % Change | 2018 | 2017 | % Change | |
Owned capacity (MW) | 3,962 | 3,962 | - | 3,962 | 3,962 | - |
GWh billed | 8,022 | 7,885 | 1.7 | 29,875 | 30,501 | (2.1) |
As-reported net revenue ($ in millions) | 281 | 333 | (15.6) | 1,276 | 1,469 | (13.1) |
Operational net revenue (non-GAAP) ($ in millions) | 281 | 333 | (15.6) | 1,276 | 1,378 | (7.4) |
EWC Nuclear Fleet | ||||||
Capacity factor | 78% | 93% | (16.1) | 84% | 83% | 1.2 |
GWh billed | 7,520 | 7,317 | 2.8 | 27,617 | 28,178 | (2.0) |
Production cost per MWh | $18.79 | $18.73 | 0.3 | $17.68 | $18.70 | (5.5) |
Average energy/capacity revenue per MWh (y) | $48.97 | $48.82 | 0.3 | $49.13 | $51.82 | (5.2) |
As-reported net revenue ($ in millions) | 274 | 327 | (16.2) | 1,258 | 1,456 | (13.6) |
Operational net revenue (non-GAAP) ($ in millions) | 274 | 327 | (16.2) | 1,258 | 1,365 | (7.8) |
Refueling outage days | ||||||
FitzPatrick | - | - | - | 42 | ||
Indian Point 2 | - | - | 33 | - | ||
Indian Point 3 | - | - | - | 66 | ||
Palisades | 61 | - | 61 | 27 | ||
Pilgrim | - | - | - | 43 | ||
Calculations may differ due to rounding | |
(y) | Average energy/capacity revenue per MWh excluding FitzPatrick was $50.05 in year-to-date 2017. |
See appendix in the webcast slide presentation for EWC nuclear capacity and generation disclosure.
E: Consolidated Financial Measures
Appendix E provides comparative financial measures. Financial measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP financial measures.
Appendix E: GAAP and Non-GAAP Financial Measures | |||
Fourth Quarter 2018 vs. 2017 (See Appendix G for reconciliation of GAAP to non-GAAP financial measures) | |||
For 12 months ending December 31 | 2018 | 2017 | Change |
GAAP Measures | |||
ROIC – as-reported | 5.3% | 3.4% | 1.9% |
ROE – as-reported | 10.1% | 5.1% | 5.0% |
Non-GAAP Measures | |||
ROIC – operational | 7.2% | 7.1% | 0.1% |
ROE – operational | 15.9% | 16.2% | (0.3%) |
As of December 31 ($ in millions) | 2018 | 2017 | Change |
GAAP Measures | |||
Cash and cash equivalents | 481 | 781 | (300) |
Revolver capacity | 4,056 | 4,174 | (118) |
Commercial paper | 1,942 | 1,467 | 475 |
Total debt | 18,133 | 16,677 | 1456 |
Securitization debt | 424 | 545 | (121) |
Debt to capital ratio | 66.7% | 67.1% | (0.4%) |
Off-balance sheet liabilities: | |||
Debt of joint ventures – Entergy's share | 61 | 67 | (6) |
Leases – Entergy's share | 448 | 429 | 19 |
Power purchase agreements accounted for as leases | 106 | 136 | (30) |
Total off-balance sheet liabilities | 615 | 632 | (17) |
Non-GAAP Measures | |||
Debt to capital ratio, excluding securitization debt | 66.1% | 66.3% | (0.1%) |
Gross liquidity | 4,537 | 4,955 | (418) |
Net debt to net capital ratio, excluding securitization debt | 65.5% | 65.2% | 0.4% |
Parent debt to total debt ratio, excluding securitization debt | 22.6% | 21.8% | 0.8% |
Operational FFO to debt ratio, excluding securitization debt | 12.0% | 15.9% | (3.9%) |
Operational FFO to debt ratio, excluding securitization debt and return of unprotected excess ADIT | 15.3% | 15.9% | (0.6%) |
F: Definitions and Abbreviations and Acronyms
Appendix F-1 provides definitions of certain operating measures, as well as GAAP and non-GAAP financial measures. Non-GAAP financial measures remove the effects of financial events that are not routine from commonly used financial measures.
Appendix F-1: Definitions | |
Utility Operating and Financial Measures | |
GWh billed | Total number of GWh billed to retail and wholesale customers |
Net revenue | Operating revenues less fuel, fuel related expenses and gas purchased for resale; purchased power and other regulatory charges (credits) – net |
Non-fuel O&M | Operation and maintenance expenses excluding fuel, fuel-related expenses and gas purchased for resale and purchased power |
Non-fuel O&M per MWh | Non-fuel O&M per MWh of billed sales |
Number of electric retail customers | Number of electric customers at the end of the period |
EWC Operating and Financial Measures | |
Average revenue per MWh on contracted volumes | Revenue on a per unit basis at which generation output reflected in contracts is expected to be sold to third parties (including offsetting positions) at the minimum contract prices and at forward market prices at a point in time, given existing contract prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market PPA for Palisades; revenue will fluctuate due to factors including market price changes affecting revenue received on positive or negative basis differentials and other risk management costs |
Average revenue under contract (applies to capacity contracts only) (in $/kW-month) | Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and/or auction awards |
Bundled capacity and energy contracts | A contract for the sale of installed capacity and related energy, priced per MWh sold |
Capacity contracts | A contract for the sale of the installed capacity product in regional markets managed by ISO New England, NYISO and MISO |
Capacity factor | Normalized percentage of the period that the nuclear plants generate power |
Expected sold and market total revenue per MWh | Total energy and capacity revenue on a per unit basis at which total planned generation output and capacity is expected to be sold given contract terms and market prices at a point in time, including estimates for market price changes affecting revenue received on positive or negative basis differentials and other risk management costs, divided by total planned MWh of generation, excluding the revenue associated with the amortization of the Palisades below-market PPA |
GWh billed | Total number of GWh billed to customers and financially-settled instruments |
Net revenue | Operating revenues less fuel, fuel-related expenses and purchased power |
Owned capacity (MW) | Installed capacity owned by EWC |
Percent of capacity sold forward | Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions |
Percent of planned generation under contract | Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts or options that mitigate price uncertainty that may or may not require regulatory approval or approval of transmission rights or other conditions precedent; positions that are no longer classified as hedges are netted in the planned generation under contract |
Planned net MW in operation (average) | Amount of installed capacity to generate power and/or sell capacity, assuming intent to shutdown Pilgrim (May 31, 2019), Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022) |
Appendix F-1: Definitions | |
EWC Operating and Financial Measures (continued) | |
Planned TWh of generation | Amount of output expected to be generated by EWC resources considering plant operating characteristics and outage schedules, assuming intent to shutdown Pilgrim (May 31, 2019), Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022) |
Production cost per MWh | Fuel and non-fuel O&M expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation), excluding special items |
Refueling outage days | Number of days lost for a scheduled refueling and maintenance outage during the period |
Unit-contingent | Transaction under which power is supplied from a specific generation asset; if the asset is in operational outage, seller is generally not liable to buyer for any damages, unless the contract specifies certain conditions such as an availability guarantee |
Financial Measures – GAAP | |
Debt of joint ventures – Entergy's share | Entergy's share of debt issued by business joint ventures at EWC |
Debt to capital ratio | Total debt divided by total capitalization |
Leases – Entergy's share | Operating leases held by subsidiaries capitalized at implicit interest rate |
Revolver capacity | Amount of undrawn capacity remaining on corporate and subsidiary revolvers, including Entergy Nuclear Vermont Yankee |
ROE – as-reported | 12-months rolling net income attributable to Entergy Corporation divided by average common equity |
ROIC – as-reported | 12-months rolling net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital |
Securitization debt | Debt associated with securitization bonds issued to recover storm costs from hurricanes Rita, Ike and Gustav at E-TX and Hurricane Isaac at E-NO; the 2009 ice storm at E-AR and investment recovery of costs associated with the cancelled Little Gypsy repowering project at E-LA |
Total debt | Sum of short-term and long-term debt, notes payable and commercial paper and capital leases on the balance sheet |
Appendix F-1: Definitions | |
Financial Measures - Non-GAAP | |
Adjusted EBITDA | Earnings before interest, depreciation and amortization and income taxes and excluding decommissioning expense |
Debt to capital ratio, excluding securitization debt | Total debt divided by total capitalization, excluding securitization debt |
ETR adjusted earnings | As-reported earnings with certain adjustments, which 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 EWC segment given its strategic decision to exit the EWC business, and items such as certain costs, expenses, significant tax items, or other specified items |
FFO | OCF less AFUDC – borrowed funds, working capital items in OCF (receivables, fuel inventory, accounts payable, prepaid taxes and taxes accrued, interest accrued and other working capital accounts) and securitization regulatory charges |
Gross liquidity | Sum of cash and revolver capacity |
Net debt to net capital ratio, excluding securitization debt | Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt |
Operational adjusted EBITDA | Adjusted EBITDA excluding effects of special items |
Operational EPS | As-reported EPS excluding special items |
Operational FFO | FFO excluding the effects of special items |
Operational FFO to debt ratio, excluding securitization debt | 12-months rolling operational FFO as a percentage of end of period total debt excluding securitization debt |
Operational FFO to debt ratio, excluding securitization debt and return of unprotected excess ADIT | 12-months rolling operational FFO as a percentage of end of period total debt excluding securitization debt and return of unprotected excess ADIT |
Parent debt to total debt ratio, excluding securitization debt | End of period Entergy Corporation debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of consolidated total debt, excluding securitization debt |
ROE – operational | 12-months rolling operational net income attributable to Entergy Corporation divided by average common equity |
ROIC – operational | 12-months rolling operational net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital |
UP&O adjusted earnings | As-reported earnings excluding special items and normalizing weather and income taxes |
Utility, Parent & Other | Combines the Utility segment with Parent & Other, which is all of Entergy excluding the EWC segment |
Appendix F-2 explains abbreviations and acronyms used in the quarterly earnings materials.
Appendix F-2: Abbreviations and Acronyms | |||
ADIT | Accumulated deferred income taxes | ISO | Independent system operator |
AFUDC – borrowed funds | Allowance for borrowed funds used during construction | IT | Information technology |
AFUDC – equity funds | Allowance for equity funds used during construction | LPSC | Louisiana Public Service Commission |
ALJ | Administrative law judge | LTM | Last twelve months |
AMI | Advanced metering infrastructure | LTSA | Long-term service agreement |
ANO | Units 1 and 2 of Arkansas Nuclear One owned by E-AR (nuclear) | MISO | Midcontinent Independent System Operator, Inc. |
APSC | Arkansas Public Service Commission | Moody's | Moody's Investor Service |
ARO | Asset retirement obligation | MPSC | Mississippi Public Service Commission |
bps | Basis points | MTEP | MISO Transmission Expansion Planning |
CCGT | Combined cycle gas turbine | Nelson 6 | Unit 6 of Roy S. Nelson plant (coal) |
CCN | Certificate of convenience & necessity | NEPOOL | New England Power Pool |
CCNO | Council of the City of New Orleans, Louisiana | Ninemile 6 | Ninemile Point Unit 6 (CCGT) |
COD | Commercial operation date | Non-fuel O&M | Non-fuel operation and maintenance expense |
CT | Simple cycle combustion turbine | NDT | Nuclear decommissioning trust |
CWIP | Construction work in progress | NOPS | New Orleans Power Station (RICE/natural gas) |
DCRF | Distribution cost recovery factor | NorthStar | NorthStar Decommissioning Holdings, LLC |
E-AR | Entergy Arkansas, LLC | NRC | Nuclear Regulatory Commission |
E-LA | Entergy Louisiana, LLC | NYISO | New York Independent System Operator, Inc. |
E-MS | Entergy Mississippi, LLC | NYPA | New York Power Authority |
E-NO | Entergy New Orleans, LLC | NYSE | New York Stock Exchange |
E-TX | Entergy Texas, Inc. | O&M | Operation and maintenance expense |
EBITDA | Earnings before interest, income taxes, depreciation and amortization | OCF | Net cash flow provided by operating activities |
ENGC | Entergy Nuclear Generation Company | OpCo | Operating Company |
ENP | Entergy Nuclear Palisades, LLC | OPEB | Other post-employment benefits |
EPS | Earnings per share | P&O | Parent & other |
ETR | Entergy Corporation | Palisades | Palisades Power Plant (nuclear) |
EWC | Entergy Wholesale Commodities | Pilgrim | Pilgrim Nuclear Power Station (nuclear) |
FERC | Federal Energy Regulatory Commission | PPA | Power purchase agreement or purchased power agreement |
FFO | Funds from operations | PUCT | Public Utility Commission of Texas |
FitzPatrick | James A. FitzPatrick Nuclear Power Plant (nuclear, sold March 31, 2017) | RICE | Reciprocating Internal Combustion Engine |
FRP | Formula rate plan | RFP | Request for proposals |
GAAP | U.S. generally accepted accounting principles | ROE | Return on equity |
Grand Gulf or GGNS | Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by SERI | ROIC | Return on invested capital |
Indian Point 1 or IP1 | Indian Point Energy Center Unit 1 (nuclear) (shut down in 1974) | RS Cogen | RS Cogen facility (CCGT cogeneration) |
Indian Point 2 or IP2 | Indian Point Energy Center Unit 2 (nuclear) | RSP | Rate Stabilization Plan (E-LA Gas) |
Indian Point 3 or IP3 | Indian Point Energy Center Unit 3 (nuclear) | S&P | Standard & Poor's |
IPEC | Indian Point Energy Center (nuclear) | SCPS | St. Charles Power Station (CCGT) |
ISES 2 | Unit 2 of Independence Steam Electric Station (coal) | SEC | U.S. Securities and Exchange Commission |
IRS | Internal Revenue Service | SERI | System Energy Resources, Inc. |
TCRF | Transmission cost recovery factor | ||
Union | Union Power Station (CCGT) | ||
UPSA | Unit Power Sales Agreement | ||
UP&O | Utility, Parent & Other | ||
VPUC | Vermont Public Utility Commission | ||
VY or Vermont Yankee | Vermont Yankee Nuclear Power Station (nuclear) | ||
WACC | Weighted-average cost of capital | ||
WPEC | Washington Parish Energy Center (CT/natural gas) | ||
G: GAAP to Non-GAAP Reconciliations
Appendix G-1, Appendix G-2 and Appendix G-3 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure.
Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures – EWC Operational Net Revenue | ||||||||||||||
($ in millions except where noted) | Fourth Quarter | Year-to-Date | ||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||
EWC | ||||||||||||||
As-reported net revenue | (A) | 281 | 333 | 1,276 | 1,469 | |||||||||
Special items included in net revenue: | ||||||||||||||
EWC Nuclear costs associated with the strategic decision to exit the EWC business | - | - | - | 91 | ||||||||||
Total special items included in net revenue | (B) | - | - | - | 91 | |||||||||
Operational net revenue | (A-B) | 281 | 333 | 1,276 | 1,378 | |||||||||
EWC Nuclear | ||||||||||||||
As-reported EWC Nuclear net revenue | (C) | 274 | 327 | 1,258 | 1,456 | |||||||||
Special items included in EWC Nuclear net revenue: | ||||||||||||||
EWC Nuclear costs associated with the strategic decision to exit the EWC business | - | - | - | 91 | ||||||||||
Total special items included in EWC Nuclear net revenue | (D) | - | - | - | 91 | |||||||||
Operational EWC Nuclear net revenue | (C-D) | 274 | 327 | 1,258 | 1,365 | |||||||||
Calculations may differ due to rounding |
Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures – ROIC, ROE | |||
($ in millions except where noted) | Fourth Quarter | ||
2018 | 2017 | ||
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months | (A) | 849 | 412 |
Preferred dividends | 14 | 14 | |
Tax-effected interest expense | 527 | 407 | |
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months adjusted for preferred dividends and tax-effected interest expense | (B) | 1,390 | 833 |
Special items in prior quarters | (317) | (272) | |
Items associated with the strategic decision to exit the EWC business | (214) | (91) | |
Tax reform | 38 | (525) | |
Total special items, rolling 12 months | (C) | (493) | (889) |
Operational earnings, rolling 12 months adjusted for preferred dividends and tax effected interest expense (non-GAAP) | (B-C) | 1,882 | 1,721 |
Operational earnings, rolling 12 months (non-GAAP) | (A-C) | 1,341 | 1,300 |
Average invested capital | (D) | 26,032 | 24,213 |
Average common equity | (E) | 8,418 | 8,037 |
ROIC – as-reported | (B/D) | 5.3% | 3.4% |
ROIC – operational | [(B-C)/D] | 7.2% | 7.1% |
ROE – as-reported | (A/E) | 10.1% | 5.1% |
ROE – operational | [(A-C)/E] | 15.9% | 16.2% |
Calculations may differ due to rounding |
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures – Debt Ratios excluding Securitization Debt; Gross Liquidity; FFO to Debt, excluding Securitization Debt and Return of Unprotected Excess ADIT | |||
($ in millions except where noted) | Fourth Quarter | ||
2018 | 2017 | ||
Total debt | (A) | 18,133 | 16,677 |
Less securitization debt | (B) | 424 | 545 |
Total debt, excluding securitization debt | (C) | 17,709 | 16,132 |
Less cash and cash equivalents | (D) | 481 | 781 |
Net debt, excluding securitization debt | (E) | 17,228 | 15,351 |
Total capitalization | (F) | 27,196 | 24,867 |
Less securitization debt | (B) | 424 | 545 |
Total capitalization, excluding securitization debt | (G) | 26,772 | 24,322 |
Less cash and cash equivalents | (D) | 481 | 781 |
Net capital, excluding securitization debt | (H) | 26,291 | 23,541 |
Debt to capital ratio | (A/F) | 66.7% | 67.1% |
Debt to capital ratio, excluding securitization debt | (C/G) | 66.1% | 66.3% |
Net debt to net capital ratio, excluding securitization debt | (E/H) | 65.5% | 65.2% |
Revolver capacity | (I) | 4,056 | 4,174 |
Gross liquidity | (D+I) | 4,537 | 4,955 |
Entergy Corporation notes: | |||
Due September 2020 | 450 | 450 | |
Due July 2022 | 650 | 650 | |
Due September 2026 | 750 | 750 | |
Total parent long-term debt | (J) | 1,850 | 1,850 |
Revolver draw | (K) | 220 | 210 |
Commercial paper | (L) | 1,942 | 1,467 |
Unamortized debt issuance and discounts | (M) | (10) | (11) |
Total parent debt | (J+K+L+M) | 4,002 | 3,516 |
Parent debt to total debt ratio, excluding securitization debt | [(J+K+L+M)/C] | 22.6% | 21.8% |
Calculations may differ due to rounding |
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures – Debt Ratios excluding Securitization Debt; Gross Liquidity; FFO to Debt, excluding Securitization Debt and Return of Unprotected Excess ADIT (continued) | |||
($ in millions except where noted) | Fourth Quarter | ||
2018 | 2017 | ||
Total debt | (A) | 18,133 | 16,677 |
Less securitization debt | (B) | 424 | 545 |
Total debt, excluding securitization debt | (C) | 17,709 | 16,132 |
Net cash flow provided by operating activities, rolling 12 months | (D) | 2,385 | 2,624 |
AFUDC – borrowed funds, rolling 12 months | (E) | (61) | (45) |
Working capital items in net cash flow provided by operating activities (rolling 12 months): | |||
Receivables | 99 | (98) | |
Fuel inventory | 46 | (3) | |
Accounts payable | 97 | 102 | |
Taxes accrued | 39 | 34 | |
Interest accrued | 5 | 1 | |
Other working capital accounts | (164) | (4) | |
Securitization regulatory charges | 124 | 116 | |
Total | (F) | 246 | 148 |
FFO, rolling 12 months | (G)=(D+E-F) | 2,079 | 2,431 |
Add back special items (rolling 12 months pre-tax): | |||
Items associated with the strategic decision to exit the EWC business | 43 | 126 | |
Operational FFO, rolling 12 months | (H) | 2,122 | 2,557 |
Operational FFO to debt ratio, excluding securitization debt | (H/C) | 12.0% | 15.9% |
Estimated return of unprotected excess ADIT (rolling 12 months pre-tax) | (I) | 592 | - |
Operational FFO to debt ratio, excluding securitization debt and return of unprotected excess ADIT | [(H)+(I)/(C)] | 15.3% | 15.9% |
Calculations may differ due to rounding |
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SOURCE Entergy Corporation
Article Date
2/20/2019Shovel Ready: Entergy Texas Breaks Ground on First Power Plant in 40 Years
Source: PR Newswire
WILLIS, Texas, Feb. 15, 2019 /PRNewswire/ -- The shovels hitting the dirt this morning marked a new chapter for reliable, affordable energy across Southeast Texas. Entergy executives, elected officials and community leaders gathered to celebrate a groundbreaking marking the ceremonial start of construction on the Montgomery County Power Station.
MCPS is a state-of-the-art, 993-megawatt combined cycle gas turbine plant under construction next to the existing Lewis Creek Power Plant in Willis. The facility will provide a new source of reliable, low-cost and clean energy to meet the growing power demand across Southeast Texas.
"Southeast Texas is growing, and Entergy Texas needs to invest now to power that growth," said Sallie Rainer, president and CEO of Entergy Texas, Inc. "By providing reliable, affordable power, we can meet our customers' needs today, while laying the foundation for future growth across our region."
The construction of MCPS will modernize Entergy Texas' generation fleet using new technology that provides a cleaner and more efficient source of power. This efficient technology will benefit customers by providing a savings of approximately $1.7 billion over the next 30 years.
In addition to meeting customer needs, MCPS will also have a substantial impact on the Texas economy. An independent economic analysis by TXP, Inc. estimates that construction alone is expected to generate an estimated $1 billion in economic activity across the state. Additionally, construction is expected to create a multiplier effect of more than 7,000 jobs (direct, indirect, induced).
"We are committed to making investments that move our customers and communities forward," said Rainer. "MCPS is a part of our $2 billion investment in infrastructure that will create jobs, spur economic development and serve our customers."
Entergy issued final notice to proceed on the plan in August 2018. The plant is expected to be online by mid-2021.
Entergy Texas, Inc. provides electricity to approximately 458,000 customers in 27 counties. Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $10.8 billion and nearly 13,000 employees.
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SOURCE Entergy Corporation
Article Date
2/15/2019Entergy Announces Fourth Quarter Earnings Conference Call
Source: PR Newswire
NEW ORLEANS, Feb. 13, 2019 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) will report fourth quarter earnings results before market open on Wednesday, Feb. 20, 2019, and host a teleconference at 10:00 a.m. CT that day to discuss the earnings announcement and the company's financial performance. The teleconference may be accessed by dialing 844-309-6569, conference ID 6799533, no more than 15 minutes prior to the start of the call or by visiting Entergy's website at entergy.com. From time to time, Entergy posts new and/or revised materials on its website and on social media, and anticipates doing so in connection with this event. The presentation slides will be available on Entergy's website and the Entergy Investor Relations mobile web app at iretr.com before market open on the day of the call. A replay of the teleconference will be available until Feb. 27, 2019, by dialing 855-859-2056, conference ID 6799533.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and more than 13,000 employees.
Additional investor information can be accessed at entergy.com/investor_relations
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SOURCE Entergy Corporation
Article Date
2/13/20192/1/2019 - Entergy Declares Dividend
Entergy Declares Dividend
Source: PR Newswire
NEW ORLEANS, Feb. 1, 2019 /PRNewswire/ -- The Board of Directors of Entergy Corporation (NYSE: ETR) has declared a quarterly dividend of $0.91 per common share. The payment date is March 1, 2019, to stockholders of record on February 14, 2019.
About Entergy Corporation
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and more than 13,000 employees.
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Twitter: @Entergy
Facebook: facebook.com/entergy
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SOURCE Entergy Corporation
Article Date
2/1/2019Entergy Completes Sale of Vermont Yankee to NorthStar
Source: PR Newswire
VERNON, Vt., Jan. 11, 2019 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) today completed the sale of Entergy Nuclear Vermont Yankee to subsidiaries of NorthStar Group Services, which will decommission the Vermont Yankee Nuclear Power Station site.
The sale completion is a major step toward the safe, timely and efficient decommissioning of Vermont Yankee, and is a positive outcome for the Town of Vernon, Windham County, the State of Vermont and other stakeholders. In addition, Entergy is making progress on its corporate strategy of exiting the merchant nuclear power business. The sale is a first-of-its-kind in the nuclear power industry – a permanent ownership and license transfer to a company that is slated to perform timely and efficient decommissioning and site restoration.
The NorthStar decommissioning team includes Orano USA (reactor vessel segmentation and used fuel management support), Waste Control Specialists (waste management, packaging, transport and disposal) and Burns & McDonnell (engineering and regulatory support).
Entergy and NorthStar announced the sale agreement in November 2016. The Vermont Public Utility Commission on Dec. 6, 2018 issued an order approving the sale of Entergy Nuclear Vermont Yankee and an amended Certificate of Public Good that authorizes NorthStar to own, possess the licenses for, and decommission Vermont Yankee. The U.S. Nuclear Regulatory Commission on Oct. 11, 2018 approved the transfer of Vermont Yankee's operating licenses to NorthStar.
The transaction closed on terms consistent with the companies' previously disclosed financial commitments and assurances, and no contribution to the nuclear decommissioning trust was required. For Entergy, the transaction will result in a pre-tax book charge to earnings in an amount that the company expects to be consistent with estimates previously disclosed. The estimated charge will be recorded in fourth quarter 2018 and will be considered a special item and excluded from operational results.
About Vermont Yankee, Entergy and NorthStar
Vermont Yankee Nuclear Power Station, a single unit boiling water reactor located in Vernon, Vermont, began commercial operation in 1972. Entergy acquired the plant from Vermont Yankee Nuclear Power Corporation in 2002. The plant permanently ceased operations on Dec. 29, 2014.
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and more than 13,000 employees. More information is available at www.entergy.com and www.vydecommissioning.com.
NorthStar Group Services, based in New York, is the country's most comprehensive facility and environmental solutions company, with more than $600 million in annual sales and licenses in all 50 states. NorthStar owns and maintains a large, nationwide inventory of specialized dismantling equipment and employs more than 3,000 people. More information is available at www.northstar.com.
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SOURCE Entergy Corporation
Article Date
1/11/2019Entergy Names David Ellis to Lead Entergy New Orleans
Source: PR Newswire
NEW ORLEANS, Dec. 3, 2018 /PRNewswire/ -- David D. Ellis, a 27-year veteran providing global reliability and clean energy technology solutions, has been named to lead Entergy New Orleans, LLC, as its president and CEO, Entergy Corporation (NYSE: ETR) announced today.
Ellis comes to Entergy New Orleans from Global Power Technologies (GPT) in Edison NJ, where he was president and CEO. GPT is a global company that delivers enterprise and cloud-based software solutions, manufactures reliability and energy management products, and provides energy consulting and advisory services to electric utilities and their customers. Prior to GPT, Ellis led businesses in North America, Asia, and Africa focused on driving technology-based energy solutions for utilities in those markets. Ellis will join the company on Dec. 10.
"We conducted a comprehensive national search to find the right leader for Entergy New Orleans who can successfully implement our plan to improve reliability, create a smarter and greener energy grid for the city, and renew our role as a trusted partner and service provider for our customers and the communities we serve," said Rod West, group president utility operations, Entergy Corp. "David's deep background in innovation, reliability and resource management, and delivering customer-focused products and services make him the right choice to lead Entergy New Orleans into the future. We welcome him to the Crescent City."
In August, company officials announced a renewed strategic focus for New Orleans electric customers that includes reliability and storm hardening to reduce power outages, nearly 100 megawatts of incremental renewable resources and the creation of a smarter energy grid with new technology to give customers more control and more options. These initiatives, along with the construction of the New Orleans Power Station, will provide a safe, reliable local source of power generation for New Orleans and the region while strengthening the grid and improving our customer experience.
"I believe Entergy New Orleans can and should be the model for the electric utility of the future," said Ellis. "I found the tremendous potential and willingness to create a smarter energy future for New Orleans compelling, and I look forward to partnering with the City Council and the community to make that potential a reality."
In his 27 years as a reliability, technology and clean energy executive, Ellis has held a number of leadership positions at energy-focused companies, including Comverge International, Clean Power Markets, Inc., and Enerwise Global Technologies. His experience includes the design and administration of renewable portfolio standards, global demand response market development, and energy software & hardware technology leadership.
Ellis has a Bachelor of Science degree in Electrical Engineering Technology from Penn State University where he played basketball for four years, and a Master of Business Administration degree from Eastern University. He and his wife, Christine, have nine children, ranging in age from 8 to 24.
About Entergy New Orleans
Entergy New Orleans, LLC is an electric and gas utility that serves Louisiana's Orleans Parish. The company provides electricity to more than 200,000 customers and natural gas to more than 106,000 customers. The company is a subsidiary of Entergy Corporation.
About Entergy Corporation
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and more than 13,000 employees.
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Twitter: @Entergy
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SOURCE Entergy Corporation
Article Date
12/3/2018Entergy Corporation to Participate in 53rd EEI Financial Conference
Source: PR Newswire
NEW ORLEANS, Nov. 6, 2018 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) Chairman and Chief Executive Officer Leo Denault and members of Entergy's executive team plan to participate in investor meetings from Sunday, Nov. 11, 2018 to Tuesday, Nov. 13, 2018 during the 53rd Edison Electric Institute Financial Conference. Handout materials will be posted on the Investor Relations section of Entergy's corporate website at www.entergy.com after market close on Friday, Nov. 9. The materials will also be available on the Entergy Investor Relations mobile web app at http://iretr.com.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and more than 13,000 employees.
Additional investor information can be accessed at
entergy.com/investor_relations
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SOURCE Entergy Corporation
Article Date
11/6/201810/31/2018 - Entergy Reports Third Quarter Earnings
Entergy Reports Third Quarter Earnings
Source: PR Newswire
NEW ORLEANS, Oct. 31, 2018 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported third quarter 2018 earnings per share of $2.92 on an as-reported basis and $3.77 on an operational basis (non-GAAP), which excludes the effects of special items.
"We are on track to meet our strategic, operational and financial objectives, and our accomplishments this year include major milestones in our transition to a pure-play utility," said Entergy Chairman and Chief Executive Officer Leo Denault. "With strong results to date, we are affirming our core business UP&O adjusted guidance for the year, and we are raising our consolidated operational guidance."
Business highlights included the following:
Consolidated Earnings (GAAP and Non-GAAP Measures) | ||||||
Third Quarter and Year-to-Date 2018 vs. 2017 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of special items) | ||||||
Third Quarter | Year-to-Date | |||||
2018 | 2017 | Change | 2018 | 2017 | Change | |
(After-tax, $ in millions) | ||||||
As-reported earnings | 536 | 398 | 138 | 915 | 891 | 24 |
Less special items | (157) | (26) | (131) | (316) | (272) | (44) |
Operational earnings (non-GAAP) | 693 | 424 | 269 | 1,231 | 1,163 | 68 |
Estimated weather in billed sales | 5 | (45) | 50 | 42 | (90) | 132 |
(After-tax, per share in $) | ||||||
As-reported earnings | 2.92 | 2.21 | 0.71 | 5.01 | 4.94 | 0.07 |
Less special items | (0.85) | (0.14) | (0.71) | (1.73) | (1.51) | (0.22) |
Operational earnings (non-GAAP) | 3.77 | 2.35 | 1.42 | 6.74 | 6.45 | 0.29 |
Estimated weather in billed sales | 0.03 | (0.25) | 0.28 | 0.23 | (0.50) | 0.73 |
Calculations may differ due to rounding | ||||||
Consolidated Results
For third quarter 2018, the company reported earnings of $536 million, or $2.92 per share, on an as-reported basis and earnings of $693 million, or $3.77 per share, on an operational basis. This compared to third quarter 2017 earnings of $398 million, or $2.21 per share, on an as-reported basis and earnings of $424 million, or $2.35 per share on an operational basis.
Summary discussions by business are below. Additional details, including information on OCF by business, are provided in Appendix A and a comprehensive analysis of quarterly and year-to-date variances by business is provided in Appendix B.
Utility, Parent & Other Results
For third quarter 2018, the Utility business reported earnings attributable to Entergy Corporation of $505 million, or $2.75 per share, compared to $401 million, or $2.22 per share, in third quarter 2017. Drivers for the quarterly increase included favorable weather and the lower federal income tax rate, partially offset by higher non-fuel O&M.
The current period results reflected the return of unprotected excess ADIT to customers, which affected several income statement line items but was neutral to earnings. Specifically, this reduced income taxes by $283 million, reduced net revenue by $277 million and increased non-fuel O&M by $6 million.
Excluding the return of $277 million of unprotected excess ADIT to customers, net revenue increased, driven by favorable weather in third quarter 2018 compared to unfavorable weather a year ago. Rate actions to recover investments that benefit customers also contributed to the increase. Current period results also included regulatory provisions to return benefits of the lower federal tax rate to customers at Entergy Louisiana and Entergy New Orleans. Weather-adjusted billed sales volume increased period over period, but was more than offset by lower volume in the unbilled period.
On a weather-adjusted basis, billed retail sales increased 1.8 percent, including 0.8 percent and 1.4 percent for residential and commercial sales, respectively. Industrial billed sales volume increased 3.0 percent primarily driven by small industrials and cogeneration sales, as well as continued growth from new and expansion customers.
Excluding the $283 million unprotected excess ADIT, income taxes were lower driven by the reduction of the federal income tax rate.
Utility non-fuel O&M increased quarter-over-quarter. The primary drivers were higher spending on fossil operations and higher contract costs. Energy efficiency spending was also higher, but was largely offset in net revenue.
For third quarter 2018, Parent & Other reported a loss of $(73 million), or (40) cents per share, compared to a loss of $(58 million), or (32) cents per share, in third quarter 2017.
On a combined basis, Utility, Parent & Other (non-GAAP) contributed $2.35 to third quarter 2018 consolidated EPS compared to $1.90 in third quarter 2017. On an adjusted basis, excluding special items and normalizing weather and income taxes, Utility, Parent & Other contributed $2.27 in third quarter 2018 to consolidated EPS, compared to $2.15 in third quarter 2017.
Appendix C contains additional details on Utility financial and operating measures, including a reconciliation for non-GAAP Utility, Parent & Other adjusted earnings and EPS.
Entergy Wholesale Commodities Results
For third quarter 2018, EWC recorded earnings attributable to Entergy Corporation of $105 million, or 57 cents per share, on an as-reported basis and earned $262 million, or $1.42 per share, on an operational basis. This compared to third quarter 2017 earnings of $55 million, or 31 cents per share, on an as-reported basis and earnings of $81 million, or 45 cents per share, on an operational basis.
As-reported results in both periods reflected impairments and other expenses recorded as a result of strategic decisions for the wholesale business. These items totaled $(157 million), or (85) cents per share, in third quarter 2018, compared to $(26 million), or (14) cents per share, a year ago. The current period results included an upward revision to Pilgrim's asset retirement obligation, which resulted from an updated decommissioning study. The revision in the ARO resulted in a pre-tax asset impairment of $(117 million). Third quarter 2018 results also included a pre-tax write-off of materials and supplies at Pilgrim totaling $(25 million). These costs, along with other costs associated with strategic decisions for the wholesale business, were considered special items and excluded from operational earnings.
In addition, the current period results included two income tax items which reduced income taxes and increased earnings by $130 million, or 71 cents per share. Other income also increased largely due to higher realized gains on decommissioning trust funds. Partially offsetting the increase was lower net revenue as a result of lower nuclear energy pricing, as well as lower nuclear energy volume.
Appendix D contains additional details on EWC financial and operating measures, including a reconciliation for non-GAAP EWC operational adjusted EBITDA.
Earnings Guidance
Entergy updated its 2018 consolidated operational earnings guidance range to $6.75 to $7.25 per share and affirmed its Utility, Parent & Other adjusted guidance range of $4.50 to $4.90 per share. The updated consolidated operational earnings guidance range reflects a midpoint increase of 45 cents and a narrowing of the range to 50 cents (versus previous range of 60 cents). The updated guidance considers the effects of weather through September 30, 2018; higher-than-planned income tax items, including a potential item in the fourth quarter of 2018; and the effect of market performance to date in 2018 on EWC nuclear decommissioning trust returns. See webcast presentation slides for additional details.
The company has provided 2018 earnings guidance with regard to the non-GAAP measures of consolidated operational EPS and Utility, Parent & Other adjusted EPS. These measures exclude from the corresponding GAAP financial measures the effect of special items 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 special items that may occur during 2018. The only anticipated special items that the company can reasonably estimate at this time are those that relate to the decisions to sell or close the company's merchant nuclear plants; these estimated costs, which are excluded from the earnings guidance, are expected to decrease as-reported EPS by approximately $(2.95) per share in 2018.
Earnings Teleconference
A teleconference will be held at 10:00 a.m. Central Time on Wednesday, October 31, 2018, to discuss Entergy's quarterly earnings announcement and the company's financial performance. The teleconference may be accessed by visiting Entergy's website at www.entergy.com or by dialing 844-309-6569, conference ID 2269758, no more than 15 minutes prior to the start of the call. The webcast slide presentation is also posted to Entergy's website concurrent with this release, which was issued before market open on the day of the call. A replay of the teleconference will be available on Entergy's website at www.entergy.com and by telephone. The telephone replay will be available through November 7, 2018, by dialing 855-859-2056, conference ID 2269758. This release and the webcast slide presentation are also available on the Entergy Investor Relations mobile web app at iretr.com.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and more than 13,000 employees.
Entergy Corporation's common stock is listed on the New York and Chicago stock exchanges 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 slide presentation. Both documents are available on Entergy's Investor Relations website at www.entergy.com/investor_relations and on Entergy's Investor Relations mobile web app at iretr.com.
Entergy maintains a web page as part of its Investor Relations website, entitled "Regulatory and Other Information," which provides investors with key updates of certain regulatory proceedings and important milestones on the execution of its strategy. While some of this information may be considered material information, investors should not rely exclusively on this page for all relevant company information.
For definitions of certain operating measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the earnings release materials, see Appendix F.
Non-GAAP Financial Measures
This news release contains non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes 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 release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Certain non-GAAP financial measures in this news release could differ from GAAP only in that the figure or ratio states or includes operational earnings. Operational earnings are not calculated in accordance with GAAP because they exclude the effect of "special items." Special items are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, and may include items such as impairments, gains or losses on certain asset sales, and other gains or losses occurring as a result of strategic decisions such as Entergy's decisions to shut down or sell its merchant nuclear plants. In addition, other financial measures including net income (or earnings), adjusted for preferred dividends and tax-effected interest expense; net revenue; return on average invested capital; and return on average common equity are included on both an operational and as-reported basis. In each case, the metrics defined as "operational" would exclude the effect of special items as defined above.
Entergy reports the combination of the Utility segment with Parent & Other as Utility, Parent & Other, which is all of Entergy excluding the EWC segment, since management uses this combination in making decisions about its ongoing business in light of its decision to exit the merchant power business. Entergy also reports Utility, Parent & Other adjusted earnings, which combines the Utility segment with Parent & Other, excludes applicable special items and normalizes weather and income tax expense for the periods presented, because it believes that these financial metrics provide useful information to investors in evaluating the ongoing results of Entergy's businesses and assist investors in comparing Entergy's financial performance to the financial performance of other companies in the Utility sector. The methodologies employed to determine the normalized weather and income tax expense adjustments, each of which is further described in this release, involve estimations and the judgement of management.
In addition to reporting earnings per share on a consolidated basis, Entergy reports on a per share basis the earnings or loss of each of its segments, together with the combination of the Utility segment and Parent & Other. These per share measures represent the net income or loss of such segment or segments divided by the diluted average number of shares of common stock outstanding for the period. Entergy believes such per share measures provide useful information to investors in understanding the results of operations of those businesses and their contribution to Entergy's consolidated results of operations.
Other non-GAAP measures, including adjusted EBITDA; operational adjusted EBITDA; gross liquidity; debt to capital ratio, excluding securitization debt; net debt to net capital ratio, excluding securitization debt; parent debt to total debt ratio, excluding securitization debt; operational FFO to debt ratio, excluding securitization debt and operational FFO to debt ratio, excluding securitization debt and return of unprotected excess ADIT are measures Entergy uses internally for management and board discussions and cash budgeting and performance monitoring activities 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.
The non-GAAP financial measures and other reported adjusted items in this release are presented in addition to, and in conjunction with, results presented in accordance with GAAP. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. 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. Investors are strongly encouraged to review Entergy's consolidated financial statements and publicly filed reports in their entirety and to not rely on any single financial measure. 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, Entergy's 2018 earnings guidance; its current financial and operational outlook; and other statements of Entergy's plans, beliefs or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy's most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and Entergy's other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory costs and risks, including any changes resulting from the nuclear crisis in Japan following its catastrophic earthquake and tsunami; (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 strategic transactions that Entergy or its subsidiaries may undertake, including the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental or energy policies; and (i) the effects of technological changes and changes in commodity markets, capital markets or economic conditions, during the periods covered by the forward-looking statements.
Third Quarter 2018 Earnings Release Appendices and Financial Statements
Appendices
Appendices are presented in this section as follows:
A: Consolidated Results and Special Items
Appendix A-1 provides a comparative summary of consolidated earnings, including a reconciliation of as-reported earnings (GAAP) to operational earnings (non-GAAP).
Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures Third Quarter and Year-to-Date 2018 vs. 2017 (See Appendix A-3 and Appendix A-4 for details on special items, including income tax effects on adjustments) | ||||||
Third Quarter | Year-to-Date | |||||
2018 | 2017 | Change | 2018 | 2017 | Change | |
(After-tax, $ in millions) | ||||||
Earnings (loss) | ||||||
Utility | 505 | 401 | 104 | 1,095 | 809 | 286 |
Parent & Other | (73) | (58) | (16) | (211) | (169) | (42) |
EWC | 105 | 55 | 50 | 30 | 251 | (221) |
Consolidated | 536 | 398 | 138 | 915 | 891 | 24 |
Less special items | ||||||
Utility | - | - | - | - | - | - |
Parent & Other | - | - | - | - | - | - |
EWC | (157) | (26) | (131) | (316) | (272) | (44) |
Consolidated | (157) | (26) | (131) | (316) | (272) | (44) |
Operational earnings (loss) (non-GAAP) | ||||||
Utility | 505 | 401 | 104 | 1,095 | 809 | 286 |
Parent & Other | (73) | (58) | (16) | (211) | (169) | (42) |
EWC | 262 | 81 | 181 | 346 | 523 | (177) |
Consolidated | 693 | 424 | 269 | 1,231 | 1,163 | 68 |
Estimated weather in billed sales | 5 | (45) | 50 | 42 | (90) | 132 |
Diluted average number of common shares outstanding (in millions) | 183.7 | 180.5 | 182.7 | 180.2 | ||
(After-tax, per share in $) (a) | ||||||
Earnings (loss) | ||||||
Utility | 2.75 | 2.22 | 0.53 | 6.00 | 4.49 | 1.51 |
Parent & Other | (0.40) | (0.32) | (0.08) | (1.15) | (0.94) | (0.21) |
EWC | 0.57 | 0.31 | 0.26 | 0.16 | 1.39 | (1.23) |
Consolidated | 2.92 | 2.21 | 0.71 | 5.01 | 4.94 | 0.07 |
Less special items | ||||||
Utility | - | - | - | - | - | - |
Parent & Other | - | - | - | - | - | - |
EWC | (0.85) | (0.14) | (0.71) | (1.73) | (1.51) | (0.22) |
Consolidated | (0.85) | (0.14) | (0.71) | (1.73) | (1.51) | (0.22) |
Operational earnings (loss) (non-GAAP) | ||||||
Utility | 2.75 | 2.22 | 0.53 | 6.00 | 4.49 | 1.51 |
Parent & Other | (0.40) | (0.32) | (0.08) | (1.15) | (0.94) | (0.21) |
EWC | 1.42 | 0.45 | 0.97 | 1.89 | 2.90 | (1.01) |
Consolidated | 3.77 | 2.35 | 1.42 | 6.74 | 6.45 | 0.29 |
Estimated weather in billed sales | 0.03 | (0.25) | 0.28 | 0.23 | (0.50) | 0.73 |
Calculations may differ due to rounding | ||||||
(a) | Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period. |
See Appendix B for detailed earnings variance analysis. See Appendix A-3 for special items by driver.
Appendix A-2 provides a comparative summary of OCF by business.
Appendix A-2: Consolidated Operating Cash Flow | ||||||
Third Quarter and Year-to-Date 2018 vs. 2017 | ||||||
($ in millions) | ||||||
Third Quarter | Year-to-Date | |||||
2018 | 2017 | Change | 2018 | 2017 | Change | |
Utility | 845 | 878 | (33) | 1,994 | 2,005 | (11) |
Parent & Other | (99) | (92) | (7) | (214) | (318) | 104 |
EWC | 33 | 107 | (74) | 79 | 26 | 53 |
Consolidated | 780 | 893 | (113) | 1,860 | 1,713 | 147 |
Calculations may differ due to rounding | ||||||
OCF decreased quarter-over-quarter due primarily to the return of the unprotected excess ADIT to customers, as well as lower net revenue and planned VY decommissioning spending at EWC. The decrease was partially offset by favorable weather and increased collections for fuel and purchased power cost recovery at the Utility.
Appendix A-3 and Appendix A-4 list special items by business. Amounts are shown on both an earnings and EPS basis. Special items are included in as-reported earnings consistent with GAAP, but are excluded from operational earnings. As a result, operational earnings is considered a non-GAAP measure.
Appendix A-3: Special Items by Driver (shown as positive/(negative) impact on earnings or EPS) | ||||||
Third Quarter and Year-to-Date 2018 vs. 2017 | ||||||
(Pre-tax except for income tax effects and total, $ in millions) | ||||||
Third Quarter | Year-to-Date | |||||
2018 | 2017 | Change | 2018 | 2017 | Change | |
EWC | ||||||
Items associated with decisions to close or sell EWC nuclear plants | (198) | (39) | (159) | (400) | (503) | 103 |
Gain on the sale of FitzPatrick | - | - | - | - | 16 | (16) |
Income tax effect on adjustments above (b) | 42 | 14 | 28 | 84 | 170 | (86) |
Income tax benefit resulting from FitzPatrick transaction | - | - | - | - | 45 | (45) |
Total EWC | (157) | (26) | (131) | (316) | (272) | (44) |
Total special items | (157) | (26) | (131) | (316) | (272) | (44) |
(After-tax, per share in $) (c) | ||||||
EWC | ||||||
Items associated with decisions to close or sell EWC nuclear plants | (0.85) | (0.14) | (0.71) | (1.73) | (1.82) | 0.09 |
Gain on the sale of FitzPatrick | - | - | - | - | 0.06 | (0.06) |
Income tax benefit resulting from FitzPatrick transaction | - | - | - | - | 0.25 | (0.25) |
Total EWC | (0.85) | (0.14) | (0.71) | (1.73) | (1.51) | (0.22) |
Total special items | (0.85) | (0.14) | (0.71) | (1.73) | (1.51) | (0.22) |
Calculations may differ due to rounding | ||||||
(b) | Income tax effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply. |
(c) | EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply to each adjustment and then dividing by the diluted average number of common shares outstanding for the period. |
Appendix A-4: Special Items by Income Statement Line Item (shown as positive/(negative) impact on earnings) | ||||||
Third Quarter and Year-to-Date 2018 vs. 2017 | ||||||
(Pre-tax except for Income taxes and Total, $ in millions) | ||||||
Third Quarter | Year-to-Date | |||||
2018 | 2017 | Change | 2018 | 2017 | Change | |
EWC | ||||||
Net revenue | - | - | - | - | 91 | (91) |
Non-fuel O&M | (40) | (22) | (18) | (97) | (179) | 82 |
Asset write-off and impairments | (155) | (16) | (139) | (297) | (422) | 125 |
Taxes other than income taxes | (3) | (2) | (1) | (6) | (8) | 2 |
Gain on sale of assets | - | - | - | - | 16 | (16) |
Miscellaneous net (other income) | - | - | - | - | 15 | (15) |
Income taxes (d) | 42 | 14 | 28 | 84 | 215 | (131) |
Total EWC | (157) | (26) | (131) | (316) | (272) | (44) |
Total special items (after-tax) | (157) | (26) | (131) | (316) | (272) | (44) |
Calculations may differ due to rounding | |
(d) | Income taxes included the income tax effect of the special items which were calculated using the estimated income tax rate that is expected to apply to each item. The year-to-date 2017 period also included the income tax benefit which resulted from the FitzPatrick transaction. |
B: Earnings Variance Analysis
Appendix B provides details of current quarter 2018 versus 2017 as-reported and operational earnings variance analysis for Utility, Parent & Other and EWC.
Appendix B-1: As-Reported and Operational Earnings Variance Analysis | |||||||||||
Third Quarter 2018 vs. 2017 | |||||||||||
(Pre-tax except for Income taxes, $ in millions) | |||||||||||
Utility | Parent & Other | EWC | Consolidated | ||||||||
As- | Opera- | As- | Opera- | As- Reported | Opera- | As- Reported | Opera- tional | ||||
2017 earnings | 401 | 401 | (58) | (58) | 55 | 81 | 398 | 424 | |||
Net revenue | (254) | (254) | (e) | - | - | (51) | (51) | (f) | (305) | (305) | |
Non-fuel O&M | (48) | (48) | (g) | (3) | (3) | (23) | (4) | (h) | (74) | (55) | |
Asset write-offs and impairments | - | - | - | - | (139) | - | (i) | (139) | - | ||
Decommissioning expense | (3) | (3) | - | - | 4 | 4 | 2 | 2 | |||
Taxes other than income taxes | (1) | (1) | - | - | (1) | 1 | (2) | - | |||
Depreciation/amortization exp. | 17 | 17 | (j) | - | - | 13 | 13 | 30 | 30 | ||
Other income (deductions) | 27 | 27 | (k) | (1) | (1) | 88 | 88 | (l) | 114 | 114 | |
Interest exp. and other charges | (2) | (2) | (7) | (7) | (3) | (3) | (13) | (13) | |||
Income taxes | 368 | 368 | (m) | (4) | (4) | 161 | 133 | (n) | 525 | 497 | |
2018 earnings | 505 | 505 | (73) | (73) | 105 | 262 | 536 | 693 | |||
Appendix B-2: As-Reported and Operational Earnings Variance Analysis | |||||||||||
Year-to-Date 2018 vs. 2017 | |||||||||||
(Pre-tax except for Income taxes, $ in millions) | |||||||||||
Utility | Parent & Other | EWC | Consolidated | ||||||||
As- | Opera- | As- | Opera- | As- Reported | Opera- | As- Reported | Opera- tional | ||||
2017 earnings | 809 | 809 | (169) | (169) | 251 | 523 | 891 | 1,163 | |||
Net revenue | (377) | (377) | (e) | - | - | (141) | (50) | (f) | (518) | (427) | |
Non-fuel O&M | (115) | (115) | (g) | (8) | (8) | 71 | (11) | (h) | (53) | (135) | |
Asset write-offs and impairments | - | - | - | - | 125 | - | (i) | 125 | - | ||
Decommissioning expense | 4 | 4 | - | - | 21 | 21 | (o) | 24 | 24 | ||
Taxes other than income taxes | (19) | (19) | (p) | - | - | 2 | - | (17) | (19) | ||
Depreciation/amortization exp. | (11) | (11) | - | - | 41 | 41 | (q) | 30 | 30 | ||
Gain on sale of assets | - | - | - | - | (16) | - | (r) | (16) | - | ||
Other income (deductions) | 29 | 29 | (k) | (2) | (2) | 26 | 41 | (l) | 52 | 67 | |
Interest exp. and other charges | (9) | (9) | (19) | (19) | (s) | (8) | (8) | (36) | (36) | ||
Income taxes | 785 | 785 | (m) | (12) | (12) | (341) | (210) | (n) | 432 | 563 | |
2018 earnings | 1,095 | 1,095 | (211) | (211) | 30 | 346 | 915 | 1,231 | |||
Calculations may differ due to rounding | |||||||||||
Utility Net Revenue Variance Analysis 2018 vs. 2017 (Pre-tax, $ in millions) | ||
Third Quarter | Year-to-Date | |
Estimated weather | 80 | 203 |
Volume/unbilled | (36) | - |
Retail electric price | 10 | 73 |
Reg. provisions for lower tax rate | (19) | (77) |
Unprotected excess ADIT | (277) | (555) |
Other, including Grand Gulf recovery | (12) | (21) |
Total | (254) | (377) |
(e) | The third quarter and year-to-date earnings decreases from lower Utility net revenue were driven by the return of unprotected excess ADIT to customers (offset in income taxes), as well as regulatory provisions at E-LA and E-NO to reflect regulatory agreements to return the benefits of the lower federal tax rate to customers. The decreases were partially offset by higher retail sales volume, including the effects of weather. In the third quarter, weather-adjusted billed sales volume increased, however this was more than offset by lower volume in the unbilled period. 2018 results also included rate changes from E-AR's 2018 FRP and E-TX's DCRF. An adjustment for updated depreciation rates at SERI and higher decommissioning trust fund returns also contributed to the decrease (largely offset in depreciation expense and other income). |
(f) | The third quarter earnings decrease from lower EWC net revenue reflected lower energy prices as well as lower volume from EWC's merchant nuclear plants. The year-to-date as-reported variance reflected cost reimbursements from the buyer related to the FitzPatrick sale in first quarter 2017 (classified as a special item and offset in non-fuel O&M). The year-to-date variance also reflected lower nuclear energy prices, partially offset by higher nuclear energy volume. |
(g) | The third quarter and year-to-date earnings decreases from higher Utility non-fuel O&M were due primarily to higher spending on fossil operations and higher contract costs. Energy efficiency spending was also higher (largely offset in net revenue). The year-to-date variance also included higher storm reserves (also largely offset in net revenue). This was partially offset by higher nuclear insurance refunds in 2018 compared to 2017. |
(h) | The third quarter as-reported earnings decrease from higher EWC non-fuel O&M was due primarily to higher severance and retention costs related to the exit of the EWC business compared to third quarter 2017 (classified as a special item). The year-to-date as-reported earnings increase is due primarily to costs incurred in first quarter 2017 related to the agreement to sell FitzPatrick (classified as a special item and offset in net revenue). The year-to-date variance also reflected increased nuclear spending and higher benefit costs, as well as lower nuclear refueling outage expenses. |
(i) | The third quarter as-reported earnings decrease from higher EWC asset write-offs and impairments resulted from an upward revision of Pilgrim's ARO and a write-off of materials and supplies at Pilgrim (classified as special items). The ARO revision resulted from a recent decommissioning cost study. The year-to-date as-reported earnings increase from lower EWC asset write-offs and impairments also reflected lower impairment charges for EWC nuclear plants, partly due to Palisades no longer being impaired as a result of the decision to operate that plant until May 2022 (classified as special items). |
(j) | The third quarter earnings increase from lower Utility depreciation expense was due primarily to updated depreciation rates at SERI (largely offset in net revenue). This was partially offset by higher depreciation expense due to higher plant in service. |
(k) | The third quarter and year-to-date earnings increases from higher Utility other income (deductions) were due largely to gains on the decommissioning trust fund investments (largely offset in net revenue), as well as higher AFUDC – equity funds due to higher CWIP balances. |
(l) | The third quarter and year-to-date earnings increases from higher EWC other income (deductions) were due largely to gains on decommissioning trust fund investments, including unrealized gains/losses on equity investments that were previously recorded as other comprehensive income on the balance sheet, now recorded to the income statement. The year-to-date as-reported earnings increase also reflected the absence of gains on the receipt of the Indian Point 3 and FitzPatrick decommissioning trust funds from NYPA in first quarter 2017 (classified as a special item). |
(m) | The third quarter and year-to-date earnings increases from lower Utility income taxes were primarily due to the amortization of the unprotected excess ADIT (offset in net revenue), as well as the change in the federal income tax rate. The year-to-date variance also reflected income tax benefits from the settlement of the 2012‒2013 IRS audit in second quarter 2018. |
(n) | The third quarter earnings increase from lower EWC income taxes reflected two tax items in third quarter 2018. First, a restructuring of its interest in an EWC decommissioning trust fund resulted in a reduction in income tax expense of $107 million. Second, the conclusion of a state income tax audit resulted in a benefit of $23 million. The year-to-date earnings decrease also reflected a $373 million reduction in tax expense in second quarter 2017 and $13 million in tax benefits in second quarter 2018, as well as the change in the federal income tax rate. The year-to-date as-reported variance also reflected additional income tax expense due to the lower level of special items and a tax benefit in first quarter 2017, which resulted from the sale of FitzPatrick (classified as a special item). |
(o) | The year-to-date earnings increase from lower EWC decommissioning expense was due primarily to the sale of FitzPatrick in first quarter 2017. |
(p) | The year-to-date earnings decrease from higher Utility taxes other than income taxes was due to higher ad valorem and payroll taxes. |
(q) | The year-to-date earnings increase from lower depreciation expense was due primarily to the decision to operate Palisades until May 2022, thereby extending the period in which the plant is depreciated. |
(r) | The year-to-date as-reported earnings decrease from lower EWC gain on sale of assets was due to the gain on the sale of FitzPatrick in first quarter 2017 (classified as a special item). |
(s) | The year-to-date earnings decrease from higher Parent & Other interest expense was due to higher borrowings, combined with higher variable interest rates. |
C: Utility Financial and Operating Measures
Appendix C-1 provides a comparative summary of Utility, Parent & Other adjusted earnings and EPS contribution, each of which excludes the effects of special items and normalizes weather and income tax expense.
Appendix C-1: Utility, Parent & Other Adjusted Earnings and EPS - Reconciliation of GAAP to Non-GAAP Measures | |||||||
Third Quarter and Year-to-Date 2018 vs. 2017 (See Appendix A for details on special items) | |||||||
Third Quarter | Year-to-Date | ||||||
2018 | 2017 | Change | 2018 | 2017 | Change | ||
($ in millions) | |||||||
Utility as-reported earnings | 505 | 401 | 104 | 1,095 | 809 | 286 | |
Parent & Other as-reported (loss) | (73) | (58) | (16) | (211) | (169) | (42) | |
UP&O as-reported earnings | 431 | 343 | 88 | 885 | 640 | 245 | |
Less: | |||||||
Special items | - | - | - | - | - | - | |
Estimated weather (t) | 7 | (73) | 80 | 57 | (146) | 203 | |
Tax effect of estimated weather (u) | (2) | 28 | (30) | (15) | 56 | (71) | |
Estimated weather (after-tax) | 5 | (45) | 50 | 42 | (90) | 132 | |
Other income tax items (v) | 10 | - | 9 | 73 | (9) | 82 | |
UP&O adjusted earnings | 416 | 388 | 29 | 770 | 738 | 31 | |
(After-tax, per share in $) (w) | |||||||
Utility as-reported earnings | 2.75 | 2.22 | 0.53 | 6.00 | 4.49 | 1.51 | |
Parent & Other as-reported (loss) | (0.40) | (0.32) | (0.08) | (1.15) | (0.94) | (0.21) | |
UP&O as-reported earnings | 2.35 | 1.90 | 0.45 | 4.85 | 3.55 | 1.30 | |
Less: | |||||||
Special items | - | - | - | - | - | - | |
Estimated weather | 0.03 | (0.25) | 0.28 | 0.23 | (0.50) | 0.73 | |
Other income tax items | 0.05 | - | 0.05 | 0.40 | (0.05) | 0.45 | |
UP&O adjusted earnings | 2.27 | 2.15 | 0.12 | 4.22 | 4.10 | 0.12 | |
Calculations may differ due to rounding | |||||||
(t) | The effects of weather were estimated using heating degree days and cooling degree days for the billing cycles from certain locations within each jurisdiction and comparing to "normal" weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change. |
(u) | Income tax effect is calculated by multiplying the pre-tax amount by the estimated income tax rates that are expected to apply. |
(v) | Other income tax items represent the adjustment made to income tax expense to reflect a statutory tax rate estimated to be 25.5% in 2018 and 38.5% in 2017. The third quarter and year-to-date 2018 periods exclude reductions of $283 million and $561 million, respectively, for the return of unprotected excess ADIT (no earnings impact). |
(w) | Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period. |
Appendix C-2 and Appendix C-3 provides comparative summaries of Utility operating and financial measures.
Appendix C-2: Utility Operating and Financial Measures | |||||||||||||
Third Quarter and Year-to-Date 2018 vs. 2017 | |||||||||||||
Third Quarter | Year-to-Date | ||||||||||||
2018 | 2017 | % Change | % Weather | 2018 | 2017 | % Change | % Weather | ||||||
GWh billed | |||||||||||||
Residential | 11,821 | 10,833 | 9.1% | 0.8% | 28,857 | 25,810 | 11.8% | 0.7% | |||||
Commercial | 8,726 | 8,271 | 5.5% | 1.4% | 22,401 | 21,595 | 3.7% | 0.7% | |||||
Governmental | 714 | 682 | 4.7% | 2.7% | 1,934 | 1,885 | 2.6% | 1.5% | |||||
Industrial | 12,879 | 12,503 | 3.0% | 3.0% | 36,503 | 35,829 | 1.9% | 1.9% | |||||
Total retail sales | 34,140 | 32,289 | 5.7% | 1.8% | 89,695 | 85,119 | 5.4% | 1.2% | |||||
Wholesale | 2,978 | 3,387 | (12.1%) | 8,788 | 8,255 | 6.5% | |||||||
Total sales | 37,118 | 35,676 | 4.0% | 98,483 | 93,374 | 5.5% | |||||||
Number of electric retail customers | |||||||||||||
Residential | 2,482,698 | 2,472,199 | 0.4% | ||||||||||
Commercial | 357,050 | 355,186 | 0.5% | ||||||||||
Governmental | 17,867 | 17,803 | 0.4% | ||||||||||
Industrial | 49,491 | 47,090 | 5.1% | ||||||||||
Total retail customers | 2,907,106 | 2,892,278 | 0.5% | ||||||||||
Net revenue ($ in millions) | 1,558 | 1,811 | (14.0%) | 4,388 | 4,765 | (7.9%) | |||||||
Non-fuel O&M (per MWh in $) | 18.12 | 17.52 | 3.4% | 19.95 | 18.78 | 6.2% | |||||||
Appendix C-3: Utility Operating Measures | ||||
Twelve Months Ended September 30, 2018 vs. 2017 | ||||
Twelve Months Ended September 30 | ||||
2018 | 2017 | % Change | % Weather | |
GWh billed | ||||
Residential | 36,881 | 33,887 | 8.8% | 0.6% |
Commercial | 29,551 | 28,854 | 2.4% | 0.7% |
Governmental | 2,560 | 2,520 | 1.6% | 0.8% |
Industrial | 48,443 | 46,987 | 3.1% | 3.1% |
Total retail sales | 117,435 | 112,248 | 4.6% | 1.7% |
Calculations may differ due to rounding | |
Certain prior year data has been reclassified to conform with current year presentation | |
(x) | The effects of weather were estimated using heating degree days and cooling degree days for the billing cycles from certain locations within each jurisdiction and comparing to "normal" weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change. |
D: EWC Financial and Operating Measures
Appendix D-1 provides a comparative summary of EWC operational adjusted EBITDA (non-GAAP).
Appendix D-1: EWC Operational Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures | ||||||
Third Quarter and Year-to-Date 2018 vs. 2017 | ||||||
($ in millions) | Third Quarter | Year-to-Date | ||||
2018 | 2017 | Change | 2018 | 2017 | Change | |
Net income (loss) | 106 | 56 | 50 | 31 | 252 | (221) |
Add back: interest expense | 9 | 5 | 4 | 25 | 18 | 7 |
Add back: income taxes | (136) | 26 | (162) | (167) | (508) | 341 |
Add back: depreciation and amortization | 40 | 52 | (12) | 116 | 157 | (41) |
Subtract: interest and investment income | 127 | 41 | 86 | 183 | 143 | 40 |
Add back: decommissioning expense | 56 | 60 | (4) | 174 | 195 | (21) |
Adjusted EBITDA (non-GAAP) | (52) | 158 | (210) | (5) | (29) | 24 |
Add back pre-tax special items for: | ||||||
Items associated with decisions to close or sell EWC nuclear plants | 198 | 39 | 159 | 400 | 503 | (103) |
Gain on the sale of FitzPatrick | - | - | - | - | (16) | 16 |
Operational adjusted EBITDA (non-GAAP) | 146 | 197 | (51) | 395 | 458 | (63) |
Calculations may differ due to rounding | ||||||
Appendix D-2 provides a comparative summary of EWC operating and financial measures.
Appendix D-2: EWC Operating and Financial Measures | ||||||
Third Quarter and Year-to-Date 2018 vs. 2017 (See Appendix G for reconciliation of GAAP to non-GAAP measures) | ||||||
Third Quarter | Year-to-Date | |||||
2018 | 2017 | % Change | 2018 | 2017 | % Change | |
Owned capacity (MW) | 3,962 | 3,962 | - | |||
GWh billed | 7,576 | 8,234 | (8.0) | 21,853 | 22,616 | (3.4) |
As-reported net revenue ($ in millions) | 341 | 392 | (13.0) | 995 | 1,136 | (12.4) |
Operational net revenue (non-GAAP) ($ in millions) | 341 | 392 | (13.0) | 995 | 1,045 | (4.8) |
EWC Nuclear Fleet | ||||||
Capacity factor | 90% | 98% | (8.2) | 86% | 79% | 8.9 |
GWh billed | 6,976 | 7,633 | (8.6) | 20,096 | 20,861 | (3.7) |
Production cost per MWh | $17.15 | $14.91 | 15.0 | $17.93 | $18.68 | (4.0) |
Average energy/capacity revenue per MWh (y) | $48.97 | $48.82 | 0.3 | $49.13 | $51.82 | (5.2) |
As-reported net revenue ($ in millions) | 339 | 391 | (13.4) | 984 | 1,129 | (12.8) |
Operational net revenue (non-GAAP) ($ in millions) | 339 | 391 | (13.4) | 984 | 1,038 | (5.2) |
Refueling outage days | ||||||
FitzPatrick | - | - | - | 42 | ||
Indian Point 2 | - | - | 33 | - | ||
Indian Point 3 | - | - | - | 66 | ||
Palisades | - | - | - | 27 | ||
Pilgrim | - | - | - | 43 | ||
Calculations may differ due to rounding | |
(y) | Average energy and capacity revenue per MWh excluding FitzPatrick was $51.78 in year-to-date 2017. |
See appendix in the webcast slide presentation for EWC hedging and price disclosures.
E: Consolidated Financial Measures
Appendix E provides comparative financial measures. Financial measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP financial measures.
Appendix E: GAAP and Non-GAAP Financial Measures | |||
Third Quarter 2018 vs. 2017 (See Appendix G for reconciliation of GAAP to non-GAAP financial measures) | |||
For 12 months ending September 30 | 2018 | 2017 | Change |
GAAP Measures | |||
ROIC – as-reported | 3.7% | (1.8%) | 5.5% |
ROE – as-reported | 5.1% | (9.4%) | 14.5% |
Non-GAAP Measures | |||
ROIC – operational | 7.3% | 6.5% | 0.8% |
ROE – operational | 16.0% | 13.0% | 3.0% |
As of September 30 ($ in millions) | 2018 | 2017 | Change |
GAAP Measures | |||
Cash and cash equivalents | 988 | 546 | 442 |
Revolver capacity | 3,653 | 4,213 | (560) |
Commercial paper | 1,947 | 1,272 | 675 |
Total debt | 18,485 | 16,224 | 2,261 |
Securitization debt | 463 | 582 | (119) |
Debt to capital ratio | 68.2% | 64.6% | 3.6% |
Off-balance sheet liabilities: | |||
Debt of joint ventures – Entergy's share | 62 | 68 | (6) |
Leases – Entergy's share | 429 | 397 | 32 |
Power purchase agreements accounted for as leases | 136 | 166 | (30) |
Total off-balance sheet liabilities | 627 | 631 | (4) |
Non-GAAP Measures | |||
Debt to capital ratio, excluding securitization debt | 67.7% | 63.8% | 3.9% |
Gross liquidity | 4,641 | 4,759 | (118) |
Net debt to net capital ratio, excluding securitization debt | 66.4% | 62.9% | 3.5% |
Parent debt to total debt ratio, excluding securitization debt | 24.5% | 20.8% | 3.7% |
Operational FFO to debt ratio, excluding securitization debt | 13.1% | 15.3% | (2.2%) |
Operational FFO to debt ratio, excluding securitization debt and return of unprotected excess ADIT | 15.0% | 15.3% | (0.3%) |
F: Definitions and Abbreviations and Acronyms
Appendix F-1 provides definitions of certain operating measures, as well as GAAP and non-GAAP financial measures. Non-GAAP financial measures remove the effects of financial events that are not routine from commonly used financial measures.
Appendix F-1: Definitions | |
Utility Operating and Financial Measures | |
GWh billed | Total number of GWh billed to retail and wholesale customers |
Net revenue | Operating revenues less fuel, fuel related expenses and gas purchased for resale; purchased power and other regulatory charges (credits) – net |
Non-fuel O&M | Operation and maintenance expenses excluding fuel, fuel-related expenses and gas purchased for resale and purchased power |
Non-fuel O&M per MWh | Non-fuel O&M per MWh of billed sales |
Number of electric retail customers | Number of electric customers at the end of the period |
EWC Operating and Financial Measures | |
Average revenue per MWh on contracted volumes | Revenue on a per unit basis at which generation output reflected in contracts is expected to be sold to third parties (including offsetting positions) at the minimum contract prices and at forward market prices at a point in time, given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market PPA for Palisades; revenue will fluctuate due to factors including market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at the time of option expiration, costs to convert firm LD to unit-contingent and other risk management costs |
Average revenue under contract (applies to capacity contracts only) (in $/kW-month) | Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and/or auction awards |
Bundled capacity and energy contracts | A contract for the sale of installed capacity and related energy, priced per MWh sold |
Capacity contracts | A contract for the sale of the installed capacity product in regional markets managed by ISO New England, NYISO and MISO |
Capacity factor | Normalized percentage of the period that the nuclear plants generate power |
Expected sold and market total revenue per MWh | Total energy and capacity revenue on a per unit basis at which total planned generation output and capacity is expected to be sold given contract terms and market prices at a point in time, including estimates for market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at time of option expiration, costs to convert Firm LD to unit-contingent and other risk management costs, divided by total planned MWh of generation, excluding the revenue associated with the amortization of the Palisades below-market PPA |
Firm LD | Transaction that requires receipt or delivery of energy at a specified delivery point (usually at a market hub not associated with a specific asset) or settles financially on notional quantities; if a party fails to deliver or receive energy, defaulting party must compensate the other party as specified in the contract, a portion of which may be capped through the use of risk management products |
Appendix F-1: Definitions | ||
EWC Operating and Financial Measures (continued) | ||
GWh billed | Total number of GWh billed to customers and financially-settled instruments | |
Net revenue | Operating revenues less fuel, fuel-related expenses and purchased power | |
Offsetting positions | Transactions for the purchase of energy, generally to offset a Firm LD transaction | |
Owned capacity (MW) | Installed capacity owned by EWC | |
Percent of capacity sold forward | Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions | |
Percent of planned generation under contract | Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts or options that mitigate price uncertainty that may or may not require regulatory approval or approval of transmission rights or other conditions precedent; positions that are no longer classified as hedges are netted in the planned generation under contract | |
Planned net MW in operation (average) | Amount of installed capacity to generate power and/or sell capacity, assuming intent to shutdown Pilgrim (May 31, 2019), Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022) | |
Planned TWh of generation | Amount of output expected to be generated by EWC resources considering plant operating characteristics and outage schedules, assuming intent to shutdown Pilgrim (May 31, 2019), Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022) | |
Production cost per MWh | Fuel and non-fuel O&M expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation), excluding special items | |
Refueling outage days | Number of days lost for a scheduled refueling and maintenance outage during the period | |
Unit-contingent | Transaction under which power is supplied from a specific generation asset; if the asset is in operational outage, seller is generally not liable to buyer for any damages, unless the contract specifies certain conditions such as an availability guarantee | |
Financial Measures – GAAP | ||
Debt of joint ventures – Entergy's share | Entergy's share of debt issued by business joint ventures at EWC | |
Debt to capital ratio | Total debt divided by total capitalization | |
Leases – Entergy's share | Operating leases held by subsidiaries capitalized at implicit interest rate | |
Revolver capacity | Amount of undrawn capacity remaining on corporate and subsidiary revolvers, including Entergy Nuclear Vermont Yankee | |
ROE – as-reported | 12-months rolling net income attributable to Entergy Corporation divided by average common equity | |
ROIC – as-reported | 12-months rolling net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital | |
Securitization debt | Debt associated with securitization bonds issued to recover storm costs from hurricanes Rita, Ike and Gustav at E-TX and Hurricane Isaac at E-NO; the 2009 ice storm at E-AR and investment recovery of costs associated with the cancelled Little Gypsy repowering project at E-LA | |
Total debt | Sum of short-term and long-term debt, notes payable and commercial paper and capital leases on the balance sheet | |
Appendix F-1: Definitions | |
Financial Measures - Non-GAAP | |
Adjusted EBITDA | Earnings before interest, depreciation and amortization and income taxes and excluding decommissioning expense |
Debt to capital ratio, 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, prepaid taxes and taxes accrued, interest accrued and other working capital accounts) and securitization regulatory charges |
Gross liquidity | Sum of cash and revolver capacity |
Net debt to net capital ratio, excluding securitization debt | Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt |
Operational adjusted EBITDA | Adjusted EBITDA excluding effects of special items |
Operational EPS | As-reported EPS excluding special items |
Operational FFO | FFO excluding the effects of special items |
Operational FFO to debt ratio, excluding securitization debt | 12-months rolling operational FFO as a percentage of end of period total debt excluding securitization debt |
Operational FFO to debt ratio, excluding securitization debt and return of unprotected excess ADIT | 12-months rolling operational FFO as a percentage of end of period total debt excluding securitization debt and return of unprotected excess ADIT |
Parent debt to total debt ratio, excluding securitization debt | End of period Entergy Corporation debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of consolidated total debt, excluding securitization debt |
ROE – operational | 12-months rolling operational net income attributable to Entergy Corporation divided by average common equity |
ROIC – operational | 12-months rolling operational net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital |
UP&O adjusted earnings | As-reported earnings excluding special items and normalizing weather and income taxes |
Utility, Parent & Other | Combines the Utility segment with Parent & Other, which is all of Entergy excluding the EWC segment |
Appendix F-2 explains abbreviations and acronyms used in the quarterly earnings materials.
Appendix F-2: Abbreviations and Acronyms | |||
ADIT | Accumulated deferred income taxes | IRS | Internal Revenue Service |
AFUDC – borrowed funds | Allowance for borrowed funds used during construction | ISO | Independent system operator |
AFUDC – equity funds | Allowance for equity funds used during construction | LPSC | Louisiana Public Service Commission |
AMI | Advanced metering infrastructure | LTM | Last twelve months |
ANO | Units 1 and 2 of Arkansas Nuclear One owned by E-AR (nuclear) | LTSA | Long-term service agreement |
APSC | Arkansas Public Service Commission | MISO | Midcontinent Independent System Operator, Inc. |
ARO | Asset retirement obligation | Moody's | Moody's Investor Service |
bps | Basis points | MPSC | Mississippi Public Service Commission |
CCGT | Combined cycle gas turbine | MTEP | MISO Transmission Expansion Planning |
CCNO | Council of the City of New Orleans, Louisiana | Nelson 6 | Unit 6 of Roy S. Nelson plant (coal) |
COD | Commercial operation date | NEPOOL | New England Power Pool |
CT | Simple cycle combustion turbine | Ninemile 6 | Ninemile Point Unit 6 (CCGT) |
CWIP | Construction work in progress | Non-fuel O&M | Non-fuel operation and maintenance expense |
DCRF | Distribution cost recovery factor | NDT | Nuclear decommissioning trust |
E-AR | Entergy Arkansas, Inc. | NOPS | New Orleans Power Station (RICE/natural gas) |
E-LA | Entergy Louisiana, LLC | NorthStar | NorthStar Decommissioning Holdings, LLC |
E-MS | Entergy Mississippi, Inc. | NRC | Nuclear Regulatory Commission |
E-NO | Entergy New Orleans, LLC | NYISO | New York Independent System Operator, Inc. |
E-TX | Entergy Texas, Inc. | NYPA | New York Power Authority |
EBITDA | Earnings before interest, income taxes, depreciation and amortization | NYSE | New York Stock Exchange |
ENGC | Entergy Nuclear Generation Company | O&M | Operation and maintenance expense |
ENP | Entergy Nuclear Palisades, LLC | OCF | Net cash flow provided by operating activities |
ENVY | Entergy Nuclear Vermont Yankee | OpCo | Operating Company |
EPS | Earnings per share | OPEB | Other post-employment benefits |
ETR | Entergy Corporation | Palisades | Palisades Power Plant (nuclear) |
EWC | Entergy Wholesale Commodities | Pilgrim | Pilgrim Nuclear Power Station (nuclear) |
FERC | Federal Energy Regulatory Commission | PPA | Power purchase agreement or purchased power agreement |
FFO | Funds from operations | PUCT | Public Utility Commission of Texas |
Firm LD | Firm liquidated damages | RICE | Reciprocating Internal Combustion Engine |
FitzPatrick | James A. FitzPatrick Nuclear Power Plant (nuclear, sold March 31, 2017) | RFP | Request for proposals |
FRP | Formula rate plan | ROE | Return on equity |
GAAP | U.S. generally accepted accounting principles | ROIC | Return on invested capital |
Grand Gulf or GGNS | Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by SERI | RPCE | Rough production cost equalization |
Indian Point 1 or IP1 | Indian Point Energy Center Unit 1 (nuclear) (shut down in 1974) | RS Cogen | RS Cogen facility (CCGT cogeneration) |
Indian Point 2 or IP2 | Indian Point Energy Center Unit 2 (nuclear) | RSP | Rate Stabilization Plan (E-LA Gas) |
Indian Point 3 or IP3 | Indian Point Energy Center Unit 3 (nuclear) | S&P | Standard & Poor's |
IPEC | Indian Point Energy Center (nuclear) | SEC | U.S. Securities and Exchange Commission |
ISES 2 | Unit 2 of Independence Steam Electric Station (coal) | SERI | System Energy Resources, Inc. |
TCRF | Transmission cost recovery factor | ||
Union | Union Power Station (CCGT) | ||
UPSA | Unit Power Sales Agreement | ||
UP&O | Utility, Parent & Other | ||
VPUC | Vermont Public Utility Commission | ||
VY or Vermont Yankee | Vermont Yankee Nuclear Power Station (nuclear) | ||
WACC | Weighted-average cost of capital | ||
WPEC | Washington Parish Energy Center (CT/natural gas) | ||
G: GAAP to Non-GAAP Reconciliations
Appendix G-1, Appendix G-2 and Appendix G-3 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure.
Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures – EWC Operational Net Revenue | ||||||||||||||
($ in millions except where noted) | Third Quarter | Year-to-Date | ||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||
EWC | ||||||||||||||
As-reported net revenue | (A) | 341 | 392 | 995 | 1,136 | |||||||||
Special items included in net revenue: | ||||||||||||||
EWC Nuclear costs associated with decisions to close or sell plants | - | - | - | 91 | ||||||||||
Total special items included in net revenue | (B) | - | - | - | 91 | |||||||||
Operational net revenue | (A-B) | 341 | 392 | 995 | 1,045 | |||||||||
EWC Nuclear | ||||||||||||||
As-reported EWC Nuclear net revenue | (C) | 339 | 391 | 984 | 1,129 | |||||||||
Special items included in EWC Nuclear net revenue: | ||||||||||||||
EWC Nuclear costs associated with decisions to close or sell plants | - | - | - | 91 | ||||||||||
Total special items included in EWC Nuclear net revenue | (D) | - | - | - | 91 | |||||||||
Operational EWC Nuclear net revenue | (C-D) | 339 | 391 | 984 | 1,038 | |||||||||
Calculations may differ due to rounding |
Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures – ROIC, ROE | |||
($ in millions except where noted) | Third Quarter | ||
2018 | 2017 | ||
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months | (A) | 435 | (878) |
Preferred dividends | 14 | 14 | |
Tax-effected interest expense | 520 | 404 | |
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months adjusted for preferred dividends and tax-effected interest expense | (B) | 969 | (460) |
Special items in prior quarters | (776) | (2,071) | |
Items associated with decisions to close or sell EWC nuclear plants | (157) | (26) | |
Total special items, rolling 12 months | (C) | (933) | (2,097) |
Operational earnings, rolling 12 months adjusted for preferred dividends and tax effected interest expense (non-GAAP) | (B-C) | 1,902 | 1,637 |
Operational earnings, rolling 12 months (non-GAAP) | (A-C) | 1,368 | 1,219 |
Average invested capital | (D) | 26,107 | 25,246 |
Average common equity | (E) | 8,551 | 9,380 |
ROIC – as-reported | (B/D) | 3.7% | (1.8%) |
ROIC – operational | [(B-C)/D] | 7.3% | 6.5% |
ROE – as-reported | (A/E) | 5.1% | (9.4%) |
ROE – operational | [(A-C)/E] | 16.0% | 13.0% |
Calculations may differ due to rounding |
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures – Debt Ratios excluding Securitization Debt; Gross Liquidity; FFO to Debt, excluding Securitization Debt and Return of Unprotected Excess ADIT | |||
($ in millions except where noted) | Third Quarter | ||
2018 | 2017 | ||
Total debt | (A) | 18,485 | 16,224 |
Less securitization debt | (B) | 463 | 582 |
Total debt, excluding securitization debt | (C) | 18,022 | 15,642 |
Less cash and cash equivalents | (D) | 988 | 546 |
Net debt, excluding securitization debt | (E) | 17,034 | 15,096 |
Total capitalization | (F) | 27,095 | 25,118 |
Less securitization debt | (B) | 463 | 582 |
Total capitalization, excluding securitization debt | (G) | 26,632 | 24,536 |
Less cash and cash equivalents | (D) | 988 | 546 |
Net capital, excluding securitization debt | (H) | 25,644 | 23,990 |
Debt to capital ratio | (A/F) | 68.2% | 64.6% |
Debt to capital ratio, excluding securitization debt | (C/G) | 67.7% | 63.8% |
Net debt to net capital ratio, excluding securitization debt | (E/H) | 66.4% | 62.9% |
Revolver capacity | (I) | 3,653 | 4,213 |
Gross liquidity | (D+I) | 4,641 | 4,759 |
Entergy Corporation notes: | |||
Due September 2020 | 450 | 450 | |
Due July 2022 | 650 | 650 | |
Due September 2026 | 750 | 750 | |
Total parent long-term debt | (J) | 1,850 | 1,850 |
Revolver draw | (K) | 630 | 150 |
Commercial paper | (L) | 1,947 | 1,272 |
Unamortized debt issuance and discounts | (M) | (10) | (11) |
Total parent debt | (J+K+L+M) | 4,417 | 3,261 |
Parent debt to total debt ratio, excluding securitization debt | [(J+K+L+M)/C] | 24.5% | 20.8% |
Calculations may differ due to rounding |
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures – Debt Ratios excluding Securitization Debt; Gross Liquidity; FFO to Debt, excluding Securitization Debt and Return of Unprotected Excess ADIT (continued) | |||
($ in millions except where noted) | Third Quarter | ||
2018 | 2017 | ||
Total debt | (A) | 18,485 | 16,224 |
Less securitization debt | (B) | 463 | 582 |
Total debt, excluding securitization debt | (C) | 18,022 | 15,642 |
Net cash flow provided by operating activities, rolling 12 months | (D) | 2,770 | 2,459 |
AFUDC – borrowed funds, rolling 12 months | (E) | (57) | (41) |
Working capital items in net cash flow provided by operating activities (rolling 12 months): | |||
Receivables | (53) | (24) | |
Fuel inventory | 26 | 30 | |
Accounts payable | 258 | (1) | |
Taxes accrued | 10 | 9 | |
Interest accrued | (3) | - | |
Other working capital accounts | (9) | 28 | |
Securitization regulatory charges | 125 | 114 | |
Total | (F) | 354 | 156 |
FFO, rolling 12 months | (G)=(D+E-F) | 2,359 | 2,262 |
Add back special items (rolling 12 months pre-tax): | |||
Items associated with decisions to close or sell EWC nuclear plants | - | 126 | |
Operational FFO, rolling 12 months | (H) | 2,359 | 2,388 |
Operational FFO to debt ratio, excluding securitization debt | (H/C) | 13.1% | 15.3% |
Estimated return of unprotected excess ADIT (rolling 12 months pre-tax) | (I) | 342 | - |
Operational FFO to debt ratio, excluding securitization debt and return of unprotected excess ADIT | [(H)+(I)/(C] | 15.0% | 15.3% |
Calculations may differ due to rounding |
View original content to download multimedia:http://www.prnewswire.com/news-releases/entergy-reports-third-quarter-earnings-300741111.html
SOURCE Entergy Corporation
Article Date
10/31/201810/26/2018 - Entergy Declares Dividend
Entergy Declares Dividend
Source: PR Newswire
NEW ORLEANS, Oct. 26, 2018 /PRNewswire/ -- The Board of Directors of Entergy Corporation (NYSE: ETR) has declared a quarterly dividend of $0.91 per common share. The payment date is Dec. 3, 2018, to stockholders of record on Nov. 8, 2018.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and more than 13,000 employees.
www.entergy.com
Twitter: @entergy
Facebook: www.facebook.com/entergy
View original content to download multimedia:http://www.prnewswire.com/news-releases/entergy-declares-dividend-300738724.html
SOURCE Entergy Corporation
Article Date
10/26/2018Entergy Announces Third Quarter Earnings Conference Call
Source: PR Newswire
NEW ORLEANS, Oct. 24, 2018 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) will report third quarter earnings results before market open on Wednesday, October 31, 2018, and host a teleconference from 10:00 a.m. to 10:45 a.m. CT that day to discuss the earnings announcement and the company's financial performance. The teleconference may be accessed by dialing 844-309-6569, conference ID 2269758, no more than 15 minutes prior to the start of the call or by visiting Entergy's website at entergy.com. From time to time, Entergy posts new and/or revised materials on its website and on social media, and anticipates doing so in connection with this event. The presentation slides will be available on Entergy's website and the Entergy Investor Relations mobile web app at iretr.com before market open on the day of the call. A replay of the teleconference will be available until November 7, 2018, by dialing 855-859-2056, conference ID 2269758.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and more than 13,000 employees.
Additional investor information can be accessed at entergy.com/investor_relations
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SOURCE Entergy Corporation
Article Date
10/24/20189/26/2018 - Entergy Corporation Chairman and CEO to Present at Wolfe Research Utilities & Energy Conference
Entergy Corporation Chairman and CEO to Present at Wolfe Research Utilities & Energy Conference
Source: PR Newswire
NEW ORLEANS, Sept. 26, 2018 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) Chairman and Chief Executive Officer Leo Denault plans to provide a presentation as part of a panel discussion on Wednesday, Oct. 3, 2018, during the Wolfe Research Utilities & Energy Conference. The presentation is expected to start at approximately 9:30 a.m. ET. A live webcast will be available on the Investor Relations section of Entergy's corporate website at entergy.com. A replay of the webcast will be available and archived on the website for approximately 30 days. Presentation slides will be posted on the Investor Relations section of Entergy's corporate website at entergy.com before market open on Wednesday, Oct. 3. The webcast and presentation slides will also be available on the Entergy Investor Relations mobile web app at iretr.com.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and more than 13,000 employees.
Additional investor information can be accessed at
entergy.com/investor_relations.
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SOURCE Entergy Corporation
Article Date
9/26/2018Entergy Agrees to Post-Shutdown Sale of Pilgrim, Palisades Nuclear Power Plants to Holtec International for Decommissioning
Source: PR Newswire
PLYMOUTH, Mass. and COVERT, Michigan, Aug. 1, 2018 /PRNewswire/ -- Entergy Corp. (NYSE: ETR) has agreed to sell the subsidiaries that own the Pilgrim Nuclear Power Station in Plymouth, Massachusetts, and the Palisades Power Plant in Covert, Michigan, after their shutdowns and reactor defuelings, to a Holtec International subsidiary for accelerated decommissioning. The sales include the transfer of the licenses, spent fuel, and Nuclear Decommissioning Trusts (NDTs), as well as the site of the decommissioned Big Rock Point Nuclear Power Plant near Charlevoix, Michigan, where only the Independent Spent Fuel Storage Installation (ISFSI) remains. The transactions are subject to conditions to closing, including approvals from the U.S. Nuclear Regulatory Commission (NRC) of the license transfers.
Assuming timely regulatory approvals, Holtec expects to initiate prompt decommissioning of Pilgrim in 2020, with the expectation that all major decommissioning work will be completed in approximately eight years. A timeline for the decommissioning of Palisades will be developed closer to its shutdown. For both Pilgrim and Palisades, Holtec expects to move all of the spent nuclear fuel out of the spent fuel pools and into dry cask storage within approximately three years of the plants' respective shutdowns.
"Transferring our Pilgrim and Palisades plants to Holtec, with its vast experience and innovative use of technology, will lead to their decommissioning faster than if they were to remain under Entergy's ownership," said Entergy Chairman and Chief Executive Officer Leo Denault. "Earlier decommissioning benefits the surrounding communities," he added.
Entergy remains committed to the safe and reliable operation of Pilgrim and Palisades until their permanent shutdowns. By selling these plants for decommissioning, Entergy continues to execute its strategy to exit Entergy Wholesale Commodities and move to a pure play utility. Entergy is seeking regulatory approvals to sell its subsidiary that owns the shutdown Vermont Yankee site by the end of this year.
"We look forward to engaging with representatives of the Pilgrim and Palisades communities and with the appropriate state and local government officials in Massachusetts and Michigan about site restoration standards and effective coordination during the decommissioning process. We intend to deploy cutting-edge technologies to carry out the deconstruction of the plant structures with minimal impact on the environment and maximum personnel safety which are our core competencies. As a growing company, we look forward to exploring employment opportunities for Entergy employees dislocated by the plant's decommissioning," said Holtec President and CEO Dr. Kris Singh.
Holtec and Entergy expect to file a license transfer request with the NRC in the fourth quarter of this year for Pilgrim, with transaction closing targeted by the end of 2019. For Palisades, the license transfer request would take place closer to its planned shutdown in the spring of 2022, with transaction closing expected by the end of that year.
Operational Highlights
Holtec is finalizing contracts with Comprehensive Decommissioning International (CDI), a newly-formed U.S.-based joint venture company between Holtec and SNC-Lavalin, to perform the decommissioning, including the demolition and cleanup of the two plants and sites.
Holtec will draw on its and its partners' safety commitment and decades of experience and expertise in decommissioning and site remediation to carry out decommissioning, which could benefit the local communities by returning these plant sites (excluding each site's ISFSI) to productive use sooner. Holtec will transfer all of the used nuclear fuel to its cask systems to be stored at the ISFSIs, which will remain under guard at the sites, monitored during shutdown and decommissioning and subject to the NRC's oversight, until the U.S. Department of Energy removes it, in accordance with its legal obligations.
Entergy Financial Impact
As consideration for its transfer to Holtec of its interest in Entergy Nuclear Generation Company (ENGC, Pilgrim's owner) and Entergy Nuclear Palisades, LLC (ENP, Palisades' and Big Rock Point's owner), Entergy will receive nominal cash consideration.
Each transaction is expected to result in a non-cash loss based on the difference between Entergy's net investment in each subsidiary and the sale price plus any agreed adjustments. As of June 30, 2018, the adjusted net investment in ENGC was $557 million and the adjusted net investment in ENP was $131 million. The primary variables in the ultimate loss are the values of the NDTs and the asset retirement obligations, financial results from plant operations, and the level of any deferred tax balances prior to the closing of the sale.
Entergy affirmed its expectation for Entergy Wholesale Commodities to provide positive net cash to parent through 2022. The transactions, individually or in combination, are not expected to change this outlook.
Closing conditions include contractually-agreed minimum funding levels for the NDTs. The amounts of any contribution that may be required to meet the minimum funding levels are highly uncertain and will depend largely on the market performance of the trust investments through closing. Nevertheless, given the terms of the agreements, Entergy does not expect that contributions to either NDT will be required.
Entergy also filed a Report on Form 8-K with the U.S. Securities and Exchange Commission providing additional information concerning the transactions.
About Pilgrim, Palisades, Big Rock and Entergy
The Pilgrim Nuclear Power Station employs about 600 nuclear professionals and generates 680 megawatts of virtually carbon-free electricity, enough to power more than 600,000 homes. Pilgrim began generating electricity in 1972. Entergy purchased the plant in 1999 from Boston Edison. Additional information is available at www.pilgrimpower.com.
The Palisades Power Plant employs about 600 nuclear professionals and began generating electricity in 1971. The plant generates more than 800 megawatts of virtually carbon-free electricity, enough to power more than 800,000 homes. Entergy purchased the plant in 2007 from Consumers Energy and continues to operate under a 15-year power purchase agreement that expires in the spring of 2022. Additional information is available at www.palisadespower.com.
Big Rock Point Nuclear Power Plant operated from 1962 to 1997 and its decontamination and dismantlement was completed in 1999. Entergy acquired Big Rock Point from Consumers Energy in 2007 as part of the Palisades transaction.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and more than 13,000 employees. Additional information is available at www.entergy.com.
About Holtec International
Holtec International is a privately held energy technology company with operation centers in Florida, New Jersey, Ohio and Pennsylvania in the US, and globally in Brazil, Dubai, India, South Africa, Spain, UK and Ukraine. Holtec's principal business concentration is in the nuclear power industry. Holtec has played a preeminent role since the 1980s by densifying wet storage in nuclear plants' spent fuel pools deferring the need for and expense of alternative measures by as much as two decades at over 110 reactor units in the US and abroad. Dry storage and transport of nuclear fuel is another area in which Holtec is recognized as the foremost innovator and industry leader with a dominant market share and an active market presence in eighteen countries. Among the Company's pioneering endeavors are the world's first below-ground Consolidated Interim Storage Facility being developed in New Mexico and a 160-Megawatt walk away safe small modular reactor, SMR-160. The SMR-160 is developed to bring cost competitive carbon-free energy to all corners of the earth including water-challenged regions. Holtec is also a major supplier of special-purpose pressure vessels and critical-service heat exchange equipment such as air-cooled condensers, steam generators, feedwater heaters, and water-cooled condensers. Virtually all products produced by the Company are built in its three large manufacturing plants in the US and one in India. Thanks to a solid record of consistent profitability and steady growth since its founding in 1986, Holtec has no history of any long-term debt and enjoys a platinum credit rating from the financial markets. Nearly 100 US and international patents protect the Company's intellectual property from predation by its global competitors and lend predictable stability to its business base. To learn more about Holtec International, visit: www.holtecinternational.com
About Comprehensive Decommissioning International
CDI, with headquarters in Camden, New Jersey, seeks to become an industry-leading decommissioning company by providing comprehensive project solutions for retiring nuclear power plants. CDI's global operations provide expertise and technological innovation to protect the public in an environmentally responsible, safe and ethical manner. The joint venture company is committed to the enhancement of the communities in which it operates, and employing financially sustainable business practices that ensure the upholding of obligations made as a trusted steward of legacy nuclear materials.
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, Entergy's plans and expectations with respect to the Palisades Power Plant, the Pilgrim Nuclear Power Station and the Vermont Yankee Nuclear Power Station and other statements of Entergy's plans, beliefs or expectations included in this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy's most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and Entergy's other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated efforts to remediate the effects of major storms and recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory costs and risks, including any changes resulting from the nuclear crisis in Japan following its catastrophic earthquake ant tsunami; (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 strategic transactions that Entergy or its subsidiaries may undertake, including the risk that these transactions may not be completed or may not be completed as and when expected and the risk that the anticipated benefits of these transactions may not be realized; (h) effects of changes in federal, state or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental or energy policies; and (i) the effects of technological changes in commodity markets, capital markets, or economic conditions, during the periods covered by the forward-looking statements.
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SOURCE Entergy Corporation
Article Date
8/1/20188/1/2018 - Entergy Reports Second Quarter Earnings
Entergy Reports Second Quarter Earnings
Source: PR Newswire
NEW ORLEANS, Aug. 1, 2018 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported second quarter 2018 earnings per share of $1.34 on an as-reported basis and $1.79 on an operational basis (non-GAAP), which excludes the effects of special items. Results included 31 cents of income tax benefits from the settlement of its 2012-2013 IRS audit.
"Our results this quarter keep us on track to meet the strategic, operational and financial objectives that we reinforced at our Analyst Day in June," said Entergy Chairman and Chief Executive Officer Leo Denault. "We continue to make significant progress toward transitioning to a pure play utility, as evidenced by our announcement to sell EWC's Pilgrim and Palisades nuclear plants after their scheduled shutdowns."
Business highlights included the following:
|
Consolidated Earnings (GAAP and Non-GAAP Measures) | ||||||
|
Second Quarter and Year-to-Date 2018 vs. 2017 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of special items) | ||||||
|
Second Quarter |
Year-to-Date | |||||
|
2018 |
2017 |
Change |
2018 |
2017 |
Change | |
|
(After-tax, $ in millions) |
||||||
|
As-reported earnings |
245 |
410 |
(165) |
378 |
493 |
(114) |
|
Less special items |
(82) |
(151) |
70 |
(160) |
(246) |
87 |
|
Operational earnings (non-GAAP) |
327 |
561 |
(234) |
538 |
739 |
(201) |
|
Estimated weather in billed sales |
21 |
(16) |
36 |
37 |
(45) |
82 |
|
(After-tax, per share in $) |
||||||
|
As-reported earnings |
1.34 |
2.27 |
(0.93) |
2.08 |
2.74 |
(0.66) |
|
Less special items |
(0.45) |
(0.84) |
0.39 |
(0.88) |
(1.37) |
0.49 |
|
Operational earnings (non-GAAP) |
1.79 |
3.11 |
(1.32) |
2.96 |
4.11 |
(1.15) |
|
Estimated weather in billed sales |
0.11 |
(0.09) |
0.20 |
0.20 |
(0.25) |
0.45 |
|
Calculations may differ due to rounding |
Consolidated Results
For second quarter 2018, the company reported earnings of $245 million, or $1.34 per share, on an as-reported basis and earnings of $327 million, or $1.79 per share, on an operational basis. This compared to second quarter 2017 earnings of $410 million, or $2.27 per share, on an as-reported basis and earnings of $561 million, or $3.11 per share on an operational basis. Second quarter 2017 results included a $373 million, or $2.07 per share income tax item at EWC.
Summary discussions by business are below. Additional details, including information on OCF by business, are provided in Appendix A and a comprehensive analysis of quarterly and year-to-date variances by business is provided in Appendix B.
Utility, Parent & Other Results
For second quarter 2018, the Utility business reported earnings attributable to Entergy Corporation of $376 million, or $2.05 per share, compared to $243 million, or $1.35 per share, in second quarter 2017. Drivers for the quarterly increase included higher retail sales volume and lower income taxes, partially offset by higher operating expenses.
The current period results reflected a $278 million reduction in income taxes, with a corresponding reduction in net revenue, for the amortization of unprotected excess ADIT. Approximately $150 million was credited to customer bills and the balance was recorded as a regulatory charge for recovery of certain rate base and related assets. The net effect was neutral to earnings.
Excluding the $278 million unprotected excess ADIT, net revenue increased, driven by higher retail sales volume, including favorable weather in second quarter 2018 compared to unfavorable weather a year ago. Weather-adjusted billed sales declined period over period, but was more than offset by higher volume in the unbilled period. Rate actions to recover investments that benefit customers also contributed to the increase. Current period results also included regulatory provisions recorded to return benefits of the lower federal tax rate to customers at Entergy Louisiana and Entergy New Orleans.
On a weather-adjusted basis, billed sales decreased (1.3) percent, including (3.4) percent and (1.6) percent for residential and commercial sales, respectively. Industrial sales volume was essentially flat driven by continued growth from new and expansion customers as well as small industrials, largely offset by decreased cogeneration sales.
Excluding the $278 million unprotected excess ADIT, income taxes were lower driven by tax benefits from the settlement of the 2012-2013 IRS audit and the reduction of the federal income tax rate.
Utility non-fuel O&M increased quarter-over-quarter. The primary driver was higher spending on fossil operations. Energy efficiency spending and storm reserves were also higher, but were largely offset in net revenue.
For second quarter 2018, Parent & Other reported a loss of $(73 million), or (40) cents per share, compared to a loss of $(57 million), or (32) cents per share, in second quarter 2017.
On a combined basis, Utility, Parent & Other (non-GAAP) contributed $1.65 to second quarter 2018 consolidated EPS compared to $1.03 in second quarter 2017 consolidated EPS. On an adjusted basis, excluding special items and normalizing weather and income taxes, Utility, Parent & Other contributed $1.23 in second quarter 2018 to consolidated EPS, compared to $1.12 in second quarter 2017.
Appendix C contains additional details on Utility financial and operating measures, including a reconciliation for non-GAAP Utility, Parent & Other adjusted earnings and EPS.
Entergy Wholesale Commodities Results
For second quarter 2018, EWC recorded a loss attributable to Entergy Corporation of $(57 million), or (31) cents per share, on an as-reported basis and earned $25 million, or 14 cents per share, on an operational basis. This compared to second quarter 2017 earnings of $223 million, or $1.24 per share, on an as-reported basis and earnings of $375 million, or $2.08 per share, on an operational basis. The prior period results included an income tax item which reduced income taxes and increased earnings by $373 million, or $2.07 per share.
As-reported results in both periods reflected impairments and other expenses recorded as a result of strategic decisions for the wholesale business. These items totaled $(82 million), or (45) cents per share, in second quarter 2018, compared to $(151 million), or (84) cents per share, a year ago. These costs were considered special items and excluded from operational earnings.
Quarterly earnings also reflected higher net revenue as a result of higher nuclear energy volume, partially offset by lower nuclear energy pricing.
Appendix D contains additional details on EWC financial and operating measures, including a reconciliation for non-GAAP EWC operational adjusted EBITDA.
Earnings Guidance
Entergy affirmed its 2018 consolidated operational earnings guidance range of $6.25 to $6.85 per share and its Utility, Parent & Other adjusted guidance range of $4.50 to $4.90 per share.
The company has provided 2018 earnings guidance with regard to the non-GAAP measures of consolidated operational EPS and Utility, Parent & Other adjusted EPS. These measures exclude from the corresponding GAAP financial measures the effect of special items 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 special items that may occur during 2018. The only anticipated special items that the company can reasonably estimate at this time are those that relate to the decisions to sell or close the company's merchant nuclear plants; these estimated costs, which are excluded from the earnings guidance, are expected to decrease as-reported EPS by approximately $(2.75) per share in 2018.
Earnings Teleconference
A teleconference will be held at 9:00 a.m. Central Time on Wednesday, August 1, 2018, to discuss Entergy's quarterly earnings announcement and the company's financial performance. The teleconference may be accessed by visiting Entergy's website at www.entergy.com or by dialing 844-309-6569, conference ID 3594779, no more than 15 minutes prior to the start of the call. The webcast slide presentation is also posted to Entergy's website concurrent with this release, which was issued before market open on the day of the call. A replay of the teleconference will be available on Entergy's website at www.entergy.com and by telephone. The telephone replay will be available through August 8, 2018, by dialing 855-859-2056, conference ID 3594779. This release and the webcast slide presentation are also available on the Entergy Investor Relations mobile web app at iretr.com.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and more than 13,000 employees.
Entergy Corporation's common stock is listed on the New York and Chicago stock exchanges 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 slide presentation. Both documents are available on Entergy's Investor Relations website at www.entergy.com/investor_relations and on Entergy's Investor Relations mobile web app at iretr.com.
Entergy maintains a web page as part of its Investor Relations website, entitled "Regulatory and Other Information," which provides investors with key updates of regulatory proceedings and important milestones on the execution of its strategy. While some of this information may be considered material information, investors should not rely exclusively on this page for all relevant company information.
For definitions of certain operating measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the earnings release materials, see Appendix F.
Non-GAAP Financial Measures
This news release contains non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes 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 release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Certain non-GAAP financial measures in this news release could differ from GAAP only in that the figure or ratio states or includes operational earnings. Operational earnings are not calculated in accordance with GAAP because they exclude the effect of "special items." Special items are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, and may include items such as impairments, gains or losses on asset sales, and other gains or losses occurring as a result of strategic decisions such as Entergy's decisions to shut down or sell its merchant nuclear plants. In addition, other financial measures including net income (or earnings), adjusted for preferred dividends and tax effected interest expense; net revenue; return on average invested capital; and return on average common equity are included on both an operational and as-reported basis. In each case, the metrics defined as "operational" would exclude the effect of special items as defined above.
Entergy reports the combination of the Utility segment with Parent & Other as Utility, Parent & Other, which is all of Entergy excluding the EWC segment, since management uses this combination in making decisions about its ongoing business in light of its decision to exit the merchant power business. Entergy also reports Utility, Parent & Other adjusted earnings, which combines the Utility segment with Parent & Other, excludes applicable special items and normalizes weather and income tax expense for the periods presented, because it believes that these financial metrics provide useful information to investors in evaluating the ongoing results of Entergy's businesses and assist investors in comparing Entergy's financial performance to the financial performance of other companies in the Utility sector. The methodologies employed to determine the normalized weather and income tax expense adjustments, each of which is further described in this release, involve estimations and the judgement of management.
In addition to reporting earnings per share on a consolidated basis, Entergy reports on a per share basis the earnings or loss of each of its segments, together with the combination of the Utility segment and Parent & Other. These per share measures represent the net income or loss of such segment or segments divided by the diluted average number of shares of common stock outstanding for the period. Entergy believes such per share measures provide useful information to investors in understanding the results of operations of those businesses and their contribution to Entergy's consolidated results of operations.
Other non-GAAP measures, including adjusted EBITDA; operational adjusted EBITDA; gross liquidity; debt to capital ratio, excluding securitization debt; net debt to net capital ratio, excluding securitization debt; parent debt to total debt ratio, excluding securitization debt; operational FFO to debt ratio, excluding securitization debt and operational FFO to debt ratio, excluding securitization debt and return of unprotected excess ADIT are measures Entergy uses internally for management and board discussions and cash budgeting and performance monitoring activities 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.
The non-GAAP financial measures and other reported adjusted items in this release are presented in addition to, and in conjunction with, results presented in accordance with GAAP. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. 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. Investors are strongly encouraged to review Entergy's consolidated financial statements and publicly filed reports in their entirety and to not rely on any single financial measure. 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, Entergy's 2018 earnings guidance; its current financial and operational outlook; and other statements of Entergy's plans, beliefs or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy's most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and Entergy's other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory costs and risks, including any changes resulting from the nuclear crisis in Japan following its catastrophic earthquake and tsunami; (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 strategic transactions that Entergy or its subsidiaries may undertake, including the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental or energy policies; and (i) the effects of technological changes and changes in commodity markets, capital markets or economic conditions, during the periods covered by the forward-looking statements.
Second Quarter 2018 Earnings Release Appendices and Financial Statements
Appendices
Appendices are presented in this section as follows:
A: Consolidated Results and Special Items
Appendix A-1 provides a comparative summary of consolidated earnings, including a reconciliation of as-reported earnings (GAAP) to operational earnings (non-GAAP).
|
Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures Second Quarter and Year-to-Date 2018 vs. 2017 (See Appendix A-3 and Appendix A-4 for details on special items, including income tax effects on adjustments) | ||||||
|
Second Quarter |
Year-to-Date | |||||
|
2018 |
2017 |
Change |
2018 |
2017 |
Change | |
|
(After-tax, $ in millions) |
||||||
|
Earnings (loss) |
||||||
|
Utility |
376 |
243 |
132 |
591 |
408 |
182 |
|
Parent & Other |
(73) |
(57) |
(16) |
(137) |
(111) |
(26) |
|
EWC |
(57) |
223 |
(280) |
(75) |
196 |
(271) |
|
Consolidated |
245 |
410 |
(165) |
378 |
493 |
(114) |
|
Less special items |
||||||
|
Utility |
- |
- |
- |
- |
- |
- |
|
Parent & Other |
- |
- |
- |
- |
- |
- |
|
EWC |
(82) |
(151) |
70 |
(160) |
(246) |
87 |
|
Consolidated |
(82) |
(151) |
70 |
(160) |
(246) |
87 |
|
Operational earnings (loss) (non-GAAP) |
||||||
|
Utility |
376 |
243 |
132 |
591 |
408 |
182 |
|
Parent & Other |
(73) |
(57) |
(16) |
(137) |
(111) |
(26) |
|
EWC |
25 |
375 |
(350) |
84 |
442 |
(358) |
|
Consolidated |
327 |
561 |
(234) |
538 |
739 |
(201) |
|
Estimated weather in billed sales |
21 |
(16) |
36 |
37 |
(45) |
82 |
|
Diluted average number of common shares outstanding (in millions) |
183.0 |
180.2 |
182.2 |
180.0 |
||
|
(After-tax, per share in $) (a) |
||||||
|
Earnings (loss) |
||||||
|
Utility |
2.05 |
1.35 |
0.70 |
3.24 |
2.27 |
0.97 |
|
Parent & Other |
(0.40) |
(0.32) |
(0.08) |
(0.75) |
(0.62) |
(0.13) |
|
EWC |
(0.31) |
1.24 |
(1.55) |
(0.41) |
1.09 |
(1.50) |
|
Consolidated |
1.34 |
2.27 |
(0.93) |
2.08 |
2.74 |
(0.66) |
|
Less special items |
||||||
|
Utility |
- |
- |
- |
- |
- |
- |
|
Parent & Other |
- |
- |
- |
- |
- |
- |
|
EWC |
(0.45) |
(0.84) |
0.39 |
(0.88) |
(1.37) |
0.49 |
|
Consolidated |
(0.45) |
(0.84) |
0.39 |
(0.88) |
(1.37) |
0.49 |
|
Operational earnings (loss) (non-GAAP) |
||||||
|
Utility |
2.05 |
1.35 |
0.70 |
3.24 |
2.27 |
0.97 |
|
Parent & Other |
(0.40) |
(0.32) |
(0.08) |
(0.75) |
(0.62) |
(0.13) |
|
EWC |
0.14 |
2.08 |
(1.94) |
0.47 |
2.46 |
(1.99) |
|
Consolidated |
1.79 |
3.11 |
(1.32) |
2.96 |
4.11 |
(1.15) |
|
Estimated weather in billed sales |
0.11 |
(0.09) |
0.20 |
0.20 |
(0.25) |
0.45 |
|
Calculations may differ due to rounding |
|
(a) |
Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period. |
See Appendix B for detailed earnings variance analysis. See Appendix A-3 for special items by driver.
Appendix A-2 provides a comparative summary OCF, by business.
|
Appendix A-2: Consolidated Operating Cash Flow | ||||||
|
Second Quarter and Year-to-Date 2018 vs. 2017 | ||||||
|
($ in millions) | ||||||
|
Second Quarter |
Year-to-Date | |||||
|
2018 |
2017 |
Change |
2018 |
2017 |
Change | |
|
Utility |
626 |
569 |
57 |
1,149 |
1,127 |
22 |
|
Parent & Other |
(58) |
(51) |
(7) |
(115) |
(226) |
111 |
|
EWC |
(45) |
(228) |
183 |
46 |
(81) |
127 |
|
Consolidated |
523 |
290 |
232 |
1,080 |
820 |
260 |
|
Calculations may differ due to rounding |
OCF increased quarter-over-quarter due primarily to lower severance and retention payments at EWC and increased collections for fuel and purchased power cost recovery at the Utility. Another contributing factor was lower refueling outage costs at both EWC and the Utility. The increase was partially offset by the return of the unprotected excess ADIT to customers.
Appendix A-3 and Appendix A-4 list special items by business. Amounts are shown on both an earnings and EPS basis. Special items are included in as-reported earnings consistent with GAAP, but are excluded from operational earnings. As a result, operational earnings is considered a non-GAAP measure.
|
Appendix A-3: Special Items by Driver (shown as positive/(negative) impact on earnings or EPS) | ||||||
|
Second Quarter and Year-to-Date 2018 vs. 2017 | ||||||
|
(Pre-tax except for income tax effects and total, $ in millions) | ||||||
|
Second Quarter |
Year-to-Date | |||||
|
2018 |
2017 |
Change |
2018 |
2017 |
Change | |
|
EWC |
||||||
|
Items associated with decisions to close or sell EWC nuclear plants |
(103) |
(233) |
129 |
(202) |
(464) |
262 |
|
Gain on the sale of FitzPatrick |
- |
- |
- |
- |
16 |
(16) |
|
Income tax effect on adjustments above (b) |
22 |
82 |
(60) |
42 |
157 |
(114) |
|
Income tax benefit resulting from FitzPatrick transaction |
- |
- |
- |
- |
45 |
(45) |
|
Total EWC |
(82) |
(151) |
70 |
(160) |
(246) |
87 |
|
Total special items |
(82) |
(151) |
70 |
(160) |
(246) |
87 |
|
(After-tax, per share in $) (c) |
||||||
|
EWC |
||||||
|
Items associated with decisions to close or sell EWC nuclear plants |
(0.45) |
(0.84) |
0.39 |
(0.88) |
(1.68) |
0.80 |
|
Gain on the sale of FitzPatrick |
- |
- |
- |
- |
0.06 |
(0.06) |
|
Income tax benefit resulting from FitzPatrick transaction |
- |
- |
- |
- |
0.25 |
(0.25) |
|
Total EWC |
(0.45) |
(0.84) |
0.39 |
(0.88) |
(1.37) |
0.49 |
|
Total special items |
(0.45) |
(0.84) |
0.39 |
(0.88) |
(1.37) |
0.49 |
|
Calculations may differ due to rounding |
|
(b) |
Income tax effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply. |
|
(c) |
EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply to each adjustment and then dividing by the diluted average number of common shares outstanding for the period. |
|
Appendix A-4: Special Items by Income Statement Line Item (shown as positive/(negative) impact on earnings) | ||||||
|
Second Quarter and Year-to-Date 2018 vs. 2017 | ||||||
|
(Pre-tax except for Income taxes and Total, $ in millions) | ||||||
|
Second Quarter |
Year-to-Date | |||||
|
2018 |
2017 |
Change |
2018 |
2017 |
Change | |
|
EWC |
||||||
|
Net revenue |
- |
1 |
(1) |
- |
91 |
(91) |
|
Non-fuel O&M |
(32) |
(37) |
5 |
(57) |
(157) |
100 |
|
Taxes other than income taxes |
(2) |
(3) |
1 |
(3) |
(7) |
4 |
|
Asset write-off and impairments |
(69) |
(194) |
125 |
(142) |
(405) |
264 |
|
Gain on sale of assets |
- |
- |
- |
- |
16 |
(16) |
|
Miscellaneous net (other income) |
- |
- |
- |
- |
15 |
(15) |
|
Income taxes (d) |
22 |
82 |
(60) |
42 |
201 |
(159) |
|
Total EWC |
(82) |
(151) |
70 |
(160) |
(246) |
87 |
|
Total special items (after-tax) |
(82) |
(151) |
70 |
(160) |
(246) |
87 |
|
Calculations may differ due to rounding |
|
(d) |
Income taxes included the income tax effect of the special items which were calculated using the estimated income tax rate that is expected to apply to each item. The year-to-date 2017 period also included the income tax benefit which resulted from the FitzPatrick transaction. |
B: Earnings Variance Analysis
Appendix B provides details of current quarter 2018 versus 2017 as-reported and operational earnings variance analysis for Utility, Parent & Other and EWC.
|
Appendix B-1: As-Reported and Operational Earnings Variance Analysis | |||||||||||
|
Second Quarter 2018 vs. 2017 | |||||||||||
|
(Pre-tax except for Income taxes, $ in millions) | |||||||||||
|
Utility |
Parent & Other |
EWC |
Consolidated | ||||||||
|
As- |
Opera- |
As- |
Opera- |
As- Reported |
Opera- |
As- Reported |
Opera- tional | ||||
|
2017 earnings |
243 |
243 |
(57) |
(57) |
223 |
375 |
410 |
561 | |||
|
Net revenue |
(179) |
(179) |
(e) |
- |
- |
22 |
22 |
(f) |
(157) |
(157) | |
|
Non-fuel O&M |
(31) |
(31) |
(g) |
(5) |
(5) |
(6) |
(11) |
(42) |
(47) | ||
|
Asset write-offs and impairments |
- |
- |
- |
- |
125 |
- |
(h) |
125 |
- | ||
|
Decommissioning expense |
3 |
3 |
- |
- |
- |
- |
3 |
3 | |||
|
Taxes other than income taxes |
(2) |
(2) |
- |
- |
(3) |
(3) |
(5) |
(5) | |||
|
Depreciation/amortization exp. |
(14) |
(14) |
- |
- |
13 |
13 |
(1) |
(1) | |||
|
Other income (deductions)–other |
(11) |
(11) |
(1) |
(1) |
(4) |
(4) |
(16) |
(16) | |||
|
Interest exp. and other charges |
(5) |
(5) |
(7) |
(7) |
(2) |
(2) |
(14) |
(14) | |||
|
Income taxes |
371 |
371 |
(i) |
(3) |
(3) |
(425) |
(365) |
(j) |
(57) |
3 | |
|
2018 earnings |
376 |
376 |
(73) |
(73) |
(57) |
25 |
245 |
327 | |||
|
Appendix B-2: As-Reported and Operational Earnings Variance Analysis | |||||||||||
|
Year-to-Date 2018 vs. 2017 | |||||||||||
|
(Pre-tax except for Income taxes, $ in millions) | |||||||||||
|
Utility |
Parent & Other |
EWC |
Consolidated | ||||||||
|
As- |
Opera- |
As- |
Opera- |
As- Reported |
Opera- |
As- Reported |
Opera- tional | ||||
|
2017 earnings |
408 |
408 |
(111) |
(111) |
196 |
442 |
493 |
739 | |||
|
Net revenue |
(124) |
(124) |
(e) |
- |
- |
(90) |
1 |
(f) |
(214) |
(123) | |
|
Non-fuel O&M |
(66) |
(66) |
(g) |
(5) |
(5) |
92 |
(8) |
(k) |
21 |
(79) | |
|
Asset write-offs and impairments |
- |
- |
- |
- |
263 |
- |
(h) |
263 |
- | ||
|
Decommissioning expense |
6 |
6 |
- |
- |
17 |
17 |
(l) |
23 |
23 | ||
|
Taxes other than income taxes |
(17) |
(17) |
(m) |
- |
- |
3 |
(1) |
(14) |
(18) | ||
|
Depreciation/amortization exp. |
(28) |
(28) |
(n) |
- |
- |
28 |
28 |
(o) |
- |
- | |
|
Gain on sale of assets |
- |
- |
- |
- |
(16) |
- |
(p) |
(16) |
- | ||
|
Other income (deductions)–other |
- |
- |
(2) |
(2) |
(61) |
(46) |
(q) |
(63) |
(48) | ||
|
Interest exp. and other charges |
(7) |
(7) |
(11) |
(11) |
(4) |
(4) |
(22) |
(22) | |||
|
Income taxes |
417 |
417 |
(i) |
(8) |
(8) |
(502) |
(344) |
(j) |
(93) |
65 | |
|
2018 earnings |
591 |
591 |
(137) |
(137) |
(75) |
84 |
378 |
538 | |||
|
Calculations may differ due to rounding |
See appendix in the webcast slide presentation for additional details on EWC line item variances.
|
Utility Net Revenue Variance Analysis 2018 vs. 2017 (Pre-tax, $ in millions) | ||
|
Second Quarter |
Year-to-Date | |
|
Estimated weather |
53 |
123 |
|
Volume/unbilled |
48 |
36 |
|
Retail electric price |
10 |
28 |
|
Unprotected excess ADIT |
(278) |
(278) |
|
Reg. provisions for lower tax rate |
(29) |
(58) |
|
Other |
17 |
25 |
|
Total |
(179) |
(124) |
|
(e) |
The second quarter and year-to-date earnings decreases from lower Utility net revenue were driven by unprotected excess ADIT (offset in income taxes), as well as regulatory provisions at E-LA and E-NO to reflect regulatory agreements to return the benefits of the lower federal tax rate to customers. The decreases were partially offset by higher retail sales volume, including the effects of weather and volume in the unbilled period. In the second quarter, weather-adjusted billed sales volume decreased, however this was more than offset by higher volume in the unbilled period. 2018 results also included rate changes from E-AR's 2018 FRP and E-TX's DCRF. |
|
(f) |
The second quarter earnings increase from higher EWC net revenue reflected higher volume from merchant nuclear plants, partially offset by lower nuclear energy prices. The year-to-date as-reported variance reflected cost reimbursements from the buyer related to the FitzPatrick sale in first quarter 2017 (classified as a special item and offset in non-fuel O&M). |
|
(g) |
The second quarter earnings decrease from higher Utility non-fuel O&M was due primarily to higher spending on fossil operations. Energy efficiency spending and storm reserves were also higher (largely offset in net revenue). The year-to-date variance was due to higher spending on fossil and nuclear operations, as well as higher vegetation spending. Higher energy efficiency spending and storm reserves also contributed (largely offset in net revenue). This was partly offset by higher nuclear insurance refunds in 2018 compared to 2017. |
|
(h) |
The second quarter and year-to-date as-reported earnings increases from lower EWC asset write-offs and impairments were due to lower impairment charges for EWC nuclear plants, partly due to Palisades no longer being impaired as a result of the decision to operate that plant until May 2022, as well as lower refueling outage costs charged to impairment (classified as special items). |
|
(i) |
The second quarter and year-to-date earnings increases from lower Utility income taxes were primarily due to the amortization of the unprotected excess ADIT (offset in net revenue), tax benefits from the settlement of the 2012-2013 IRS audit totaling $44 million and the change in the federal income tax rate. |
|
(j) |
The second quarter and year-to-date earnings decreases from higher EWC income taxes were due primarily to a tax election in second quarter 2017 that reduced income taxes by $373 million. 2018 results also reflected $13 million in tax benefits from the settlement of the 2012-2013 IRS audit and the change in the federal income tax rate. The year-to-date as-reported earnings decrease also reflected a tax benefit in first quarter 2017, which resulted from the sale of FitzPatrick (classified as a special item). |
|
(k) |
The as-reported earnings increase from lower EWC non-fuel O&M was due primarily to costs incurred in first quarter 2017 related to the agreement to sell FitzPatrick (classified as a special item and offset in net revenue). |
|
(l) |
The earnings increase from lower EWC decommissioning expense was due primarily to the sale of FitzPatrick in first quarter 2017. |
|
(m) |
The earnings decrease from higher Utility taxes other than income taxes was due to higher franchise, ad valorem and payroll taxes. |
|
(n) |
The earnings decrease from higher depreciation expense was due primarily to higher plant in service. |
|
(o) |
The earnings increase from lower depreciation expense was due primarily to the decision to operate Palisades until May 2022, thereby extending the period in which the plant is depreciated. |
|
(p) |
The as-reported earnings decrease from lower EWC gain on sale of assets was due to the gain on the sale of FitzPatrick in first quarter 2017 (classified as a special item). |
|
(q) |
The earnings decrease from lower EWC other income (deductions)–other was due largely to losses on the decommissioning trust fund investments in first quarter 2018, including unrealized losses on equity investments that were previously recorded as other comprehensive income on the balance sheet, now recorded to the income statement. The as-reported earnings decrease also reflected the absence of gains on the receipt of the Indian Point 3 and FitzPatrick decommissioning trust funds from NYPA in first quarter 2017 (classified as a special item). |
C: Utility Financial and Operating Measures
Appendix C-1 provides a comparative summary of Utility, Parent & Other adjusted earnings and EPS contribution, each of which excludes the effects of special items and normalizes weather and income tax expense.
|
Appendix C-1: Utility, Parent & Other Adjusted Earnings and EPS - Reconciliation of GAAP to Non-GAAP Measures | |||||||
|
Second Quarter and Year-to-Date 2018 vs. 2017 (See Appendix A for details on special items) | |||||||
|
Second Quarter |
Year-to-Date | ||||||
|
2018 |
2017 |
Change |
2018 |
2017 |
Change | ||
|
($ in millions) |
|||||||
|
Utility as-reported earnings |
376 |
243 |
132 |
591 |
408 |
182 | |
|
Parent & Other as-reported (loss) |
(73) |
(57) |
(16) |
(137) |
(111) |
(26) | |
|
UP&O as-reported earnings |
303 |
187 |
116 |
454 |
297 |
156 | |
|
Less: |
|||||||
|
Special items |
- |
- |
- |
- |
- |
- | |
|
Estimated weather (r) |
28 |
(26) |
53 |
49 |
(73) |
123 | |
|
Tax effect of estimated weather (s) |
(7) |
10 |
(17) |
(13) |
28 |
(41) | |
|
Estimated weather impact (after-tax) |
21 |
(16) |
36 |
37 |
(45) |
82 | |
|
Other income tax items (t) |
57 |
1 |
57 |
64 |
(9) |
72 | |
|
UP&O adjusted earnings |
224 |
202 |
23 |
353 |
351 |
2 | |
|
(After-tax, per share in $) (u) |
|||||||
|
Utility as-reported earnings |
2.05 |
1.35 |
0.70 |
3.24 |
2.27 |
0.97 | |
|
Parent & Other as-reported (loss) |
(0.40) |
(0.32) |
(0.08) |
(0.75) |
(0.62) |
(0.13) | |
|
UP&O as-reported earnings |
1.65 |
1.03 |
0.62 |
2.49 |
1.65 |
0.84 | |
|
Less: |
|||||||
|
Special items |
- |
- |
- |
- |
- |
- | |
|
Estimated weather |
0.11 |
(0.09) |
0.20 |
0.20 |
(0.25) |
0.45 | |
|
Other income tax items |
0.31 |
- |
0.31 |
0.35 |
(0.05) |
0.40 | |
|
UP&O adjusted earnings |
1.23 |
1.12 |
0.11 |
1.94 |
1.95 |
(0.01) | |
|
Calculations may differ due to rounding |
|
(r) |
The effects of weather were estimated using heating degree days and cooling degree days for the billing cycles from certain locations within each jurisdiction and comparing to "normal" weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change. |
|
(s) |
Income tax effect is calculated by multiplying the pre-tax amount by the estimated income tax rates that are expected to apply. |
|
(t) |
Other income tax items represent the adjustment made to income tax expense to reflect a statutory tax rate estimated to be 25.5% in 2018 and 38.5% in 2017. The second quarter and year-to-date 2018 periods exclude $278 million reduction in net revenue and income taxes for unprotected excess ADIT (no earnings impact). |
|
(u) |
Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period. |
Appendix C-2 and Appendix C-3 provides comparative summaries of Utility operating and financial measures.
|
Appendix C-2: Utility Operating and Financial Measures | ||||||||||||
|
Second Quarter and Year-to-Date 2018 vs. 2017 | ||||||||||||
|
Second Quarter |
Year-to-Date | |||||||||||
|
2018 |
2017 |
% Change |
% Weather |
2018 |
2017 |
% Change |
% Weather | |||||
|
GWh billed |
||||||||||||
|
Residential |
7,749 |
7,340 |
5.6% |
(3.4%) |
17,036 |
14,977 |
13.7% |
0.6% | ||||
|
Commercial |
6,943 |
6,886 |
0.8% |
(1.6%) |
13,675 |
13,325 |
2.6% |
0.3% | ||||
|
Governmental |
612 |
609 |
0.5% |
(0.5%) |
1,220 |
1,202 |
1.5% |
0.8% | ||||
|
Industrial |
12,219 |
12,209 |
0.1% |
0.1% |
23,624 |
23,326 |
1.3% |
1.3% | ||||
|
Total retail sales |
27,523 |
27,044 |
1.8% |
(1.3%) |
55,555 |
52,830 |
5.2% |
0.8% | ||||
|
Wholesale |
2,566 |
1,845 |
39.1% |
5,810 |
4,867 |
19.4% |
||||||
|
Total sales |
30,089 |
28,889 |
4.2% |
61,365 |
57,697 |
6.4% |
||||||
|
Number of electric retail customers |
||||||||||||
|
Residential |
2,481,598 |
2,470,348 |
0.5% |
|||||||||
|
Commercial |
357,177 |
355,751 |
0.4% |
|||||||||
|
Governmental |
17,917 |
17,844 |
0.4% |
|||||||||
|
Industrial |
47,694 |
45,872 |
4.0% |
|||||||||
|
Total retail customers |
2,904,386 |
2,889,815 |
0.5% |
|||||||||
|
Net revenue ($ in millions) |
1,382 |
1,549 |
(10.8%) |
2,842 |
2,954 |
(3.8%) |
||||||
|
Non-fuel O&M (per MWh in $) |
22.05 |
21.88 |
0.8% |
21.05 |
21.25 |
(0.9%) |
||||||
|
Appendix C-3: Utility Operating Measures | ||||
|
Twelve Months Ended June 30, 2018 vs. 2017 | ||||
|
Twelve Months Ended June 30 | ||||
|
2018 |
2017 |
% Change |
% Weather | |
|
GWh billed |
||||
|
Residential |
35,893 |
34,871 |
2.9% |
1.6% |
|
Commercial |
29,096 |
29,234 |
(0.5%) |
1.0% |
|
Governmental |
2,529 |
2,540 |
(0.4%) |
(0.2%) |
|
Industrial |
48,067 |
46,501 |
3.4% |
3.4% |
|
Total retail sales |
115,585 |
113,146 |
2.2% |
2.1% |
|
Calculations may differ due to rounding |
|
Certain prior year data has been reclassified to conform with current year presentation |
|
(v) |
The effects of weather were estimated using heating degree days and cooling degree days for the billing cycles from certain locations within each jurisdiction and comparing to "normal" weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change. |
D: EWC Financial and Operating Measures
Appendix D-1 provides a comparative summary of EWC operational adjusted EBITDA (non-GAAP).
|
Appendix D-1: EWC Operational Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures | ||||||
|
Second Quarter and Year-to-Date 2018 vs. 2017 | ||||||
|
($ in millions) |
Second Quarter |
Year-to-Date | ||||
|
2018 |
2017 |
Change |
2018 |
2017 |
Change | |
|
Net income (loss) |
(56) |
224 |
(280) |
(74) |
197 |
(271) |
|
Add back: interest expense |
8 |
6 |
2 |
17 |
12 |
5 |
|
Add back: income taxes |
(30) |
(455) |
425 |
(31) |
(533) |
502 |
|
Add back: depreciation and amortization |
39 |
52 |
(13) |
77 |
105 |
(28) |
|
Subtract: interest and investment income |
58 |
59 |
(1) |
56 |
102 |
(46) |
|
Add back: decommissioning expense |
60 |
60 |
- |
118 |
135 |
(17) |
|
Adjusted EBITDA (non-GAAP) |
(37) |
(172) |
135 |
50 |
(186) |
236 |
|
Add back pre-tax special items for: |
||||||
|
Items associated with decisions to close or sell EWC nuclear plants |
103 |
233 |
(129) |
202 |
464 |
(262) |
|
Gain on the sale of FitzPatrick |
- |
- |
- |
- |
(16) |
16 |
|
Operational adjusted EBITDA (non-GAAP) |
66 |
61 |
5 |
252 |
261 |
(10) |
|
Calculations may differ due to rounding |
Appendix D-2 provides a comparative summary of EWC operating and financial measures.
|
Appendix D-2: EWC Operating and Financial Measures | ||||||
|
Second Quarter and Year-to-Date 2018 vs. 2017 (See Appendix G for reconciliation of GAAP to non-GAAP measures) | ||||||
|
Second Quarter |
Year-to-Date | |||||
|
2018 |
2017 |
% Change |
2018 |
2017 |
% Change | |
|
Owned capacity (MW) |
3,962 |
3,962 |
- | |||
|
GWh billed |
7,281 |
6,019 |
21.0 |
14,277 |
14,382 |
(0.7) |
|
As-reported net revenue ($ in millions) |
272 |
250 |
8.8 |
654 |
744 |
(12.1) |
|
Operational net revenue (non-GAAP) ($ in millions) |
272 |
250 |
8.8 |
654 |
653 |
0.2 |
|
EWC Nuclear Fleet |
||||||
|
Capacity factor |
86% |
59% |
45.8 |
85% |
71% |
19.7 |
|
GWh billed |
6,713 |
5,393 |
24.5 |
13,121 |
13,228 |
(0.8) |
|
Production cost per MWh |
$17.15 |
$27.11 |
(36.7) |
$17.93 |
$20.96 |
(14.5) |
|
Average energy/capacity revenue per MWh (w) |
$41.82 |
$51.76 |
(19.2) |
$49.21 |
$53.79 |
(8.5) |
|
As-reported net revenue ($ in millions) |
267 |
247 |
8.1 |
646 |
738 |
(12.6) |
|
Operational net revenue (non-GAAP) ($ in millions) |
267 |
246 |
8.4 |
646 |
647 |
(0.3) |
|
Refueling outage days |
||||||
|
FitzPatrick |
- |
- |
- |
42 |
||
|
Indian Point 2 |
20 |
- |
33 |
- |
||
|
Indian Point 3 |
- |
47 |
- |
66 |
||
|
Palisades |
- |
27 |
- |
27 |
||
|
Pilgrim |
- |
43 |
- |
43 |
||
|
Calculations may differ due to rounding |
|
(w) |
Average energy and capacity revenue per MWh excluding FitzPatrick was $52.02 in year-to-date 2017. |
See appendix in the webcast slide presentation for EWC hedging and price disclosures.
E: Consolidated Financial Measures
Appendix E provides comparative financial measures. Financial measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP financial measures.
|
Appendix E: GAAP and Non-GAAP Financial Measures | |||
|
Second Quarter 2018 vs. 2017 (See Appendix G for reconciliation of GAAP to non-GAAP financial measures) | |||
|
For 12 months ending June 30 |
2018 |
2017 |
Change |
|
GAAP Measures |
|||
|
ROIC – as-reported |
3.2% |
(1.9%) |
5.1% |
|
ROE – as-reported |
3.6% |
(9.8%) |
13.4% |
|
Non-GAAP Measures |
|||
|
ROIC – operational |
6.4% |
6.5% |
(0.1%) |
|
ROE – operational |
13.4% |
13.3% |
0.1% |
|
As of June 30 ($ in millions) |
2018 |
2017 |
Change |
|
GAAP Measures |
|||
|
Cash and cash equivalents |
813 |
934 |
(121) |
|
Revolver capacity |
3,885 |
4,163 |
(278) |
|
Commercial paper |
1,945 |
1,147 |
798 |
|
Total debt |
17,881 |
16,285 |
1,596 |
|
Securitization debt |
483 |
602 |
(119) |
|
Debt to capital ratio |
68.5% |
65.5% |
3.0% |
|
Off-balance sheet liabilities: |
|||
|
Debt of joint ventures – Entergy's share |
64 |
70 |
(6) |
|
Leases – Entergy's share |
429 |
397 |
32 |
|
Power purchase agreements accounted for as leases |
136 |
166 |
(30) |
|
Total off-balance sheet liabilities |
629 |
633 |
(4) |
|
Non-GAAP Financial Measures |
|||
|
Debt to capital ratio, excluding securitization debt |
67.9% |
64.7% |
3.2% |
|
Gross liquidity |
4,698 |
5,097 |
(399) |
|
Net debt to net capital ratio, excluding securitization debt |
66.9% |
63.2% |
3.7% |
|
Parent debt to total debt ratio, excluding securitization debt |
24.1% |
20.5% |
3.6% |
|
Operational FFO to debt ratio, excluding securitization debt |
15.4% |
15.2% |
0.2% |
|
Operational FFO to debt ratio, excluding securitization debt and return of unprotected excess ADIT |
15.9% |
15.2% |
0.7% |
F: Definitions and Abbreviations and Acronyms
Appendix F-1 provides definitions of certain operating measures, as well as GAAP and non-GAAP financial measures. Non-GAAP financial measures remove the effects of financial events that are not routine from commonly used financial measures.
|
Appendix F-1: Definitions | |
|
Utility Operating and Financial Measures | |
|
GWh billed |
Total number of GWh billed to retail and wholesale customers |
|
Net revenue |
Operating revenues less fuel, fuel related expenses and gas purchased for resale; purchased power and other regulatory charges (credits) – net |
|
Non-fuel O&M |
Operation and maintenance expenses excluding fuel, fuel-related expenses and gas purchased for resale and purchased power |
|
Non-fuel O&M per MWh |
Non-fuel O&M per MWh of billed sales |
|
Number of electric retail customers |
Number of electric customers at the end of the period |
|
EWC Operating and Financial Measures | |
|
Average revenue per MWh on contracted volumes |
Revenue on a per unit basis at which generation output reflected in contracts is expected to be sold to third parties (including offsetting positions) at the minimum contract prices and at forward market prices at a point in time, given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market PPA for Palisades; revenue will fluctuate due to factors including market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at the time of option expiration, costs to convert firm LD to unit-contingent and other risk management costs |
|
Average revenue under contract (applies to capacity contracts only) (in $/kW-month) |
Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and/or auction awards |
|
Bundled capacity and energy contracts |
A contract for the sale of installed capacity and related energy, priced per MWh sold |
|
Capacity contracts |
A contract for the sale of the installed capacity product in regional markets managed by ISO New England, NYISO and MISO |
|
Capacity factor |
Normalized percentage of the period that the nuclear plants generate power |
|
Expected sold and market total revenue per MWh |
Total energy and capacity revenue on a per unit basis at which total planned generation output and capacity is expected to be sold given contract terms and market prices at a point in time, including estimates for market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at time of option expiration, costs to convert Firm LD to unit-contingent and other risk management costs, divided by total planned MWh of generation, excluding the revenue associated with the amortization of the Palisades below-market PPA |
|
Firm LD |
Transaction that requires receipt or delivery of energy at a specified delivery point (usually at a market hub not associated with a specific asset) or settles financially on notional quantities; if a party fails to deliver or receive energy, defaulting party must compensate the other party as specified in the contract, a portion of which may be capped through the use of risk management products |
|
Appendix F-1: Definitions | |
|
EWC Operating and Financial Measures (continued) | |
|
GWh billed |
Total number of GWh billed to customers and financially-settled instruments |
|
Net revenue |
Operating revenues less fuel, fuel-related expenses and purchased power |
|
Offsetting positions |
Transactions for the purchase of energy, generally to offset a Firm LD transaction |
|
Owned capacity (MW) |
Installed capacity owned by EWC |
|
Percent of capacity sold forward |
Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions |
|
Percent of planned generation under contract |
Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts or options that mitigate price uncertainty that may or may not require regulatory approval or approval of transmission rights or other conditions precedent; positions that are no longer classified as hedges are netted in the planned generation under contract |
|
Planned net MW in operation (average) |
Amount of installed capacity to generate power and/or sell capacity, assuming intent to shutdown Pilgrim (May 31, 2019), Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022) |
|
Planned TWh of generation |
Amount of output expected to be generated by EWC resources considering plant operating characteristics and outage schedules, assuming intent to shutdown Pilgrim (May 31, 2019), Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022) |
|
Production cost per MWh |
Fuel and non-fuel O&M expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation), excluding special items |
|
Refueling outage days |
Number of days lost for a scheduled refueling and maintenance outage during the period |
|
Unit-contingent |
Transaction under which power is supplied from a specific generation asset; if the asset is in operational outage, seller is generally not liable to buyer for any damages, unless the contract specifies certain conditions such as an availability guarantee |
|
Financial Measures – GAAP | |
|
Debt of joint ventures – Entergy's share |
Entergy's share of debt issued by business joint ventures at EWC |
|
Debt to capital ratio |
Total debt divided by total capitalization |
|
Leases – Entergy's share |
Operating leases held by subsidiaries capitalized at implicit interest rate |
|
Revolver capacity |
Amount of undrawn capacity remaining on corporate and subsidiary revolvers, including Entergy Nuclear Vermont Yankee |
|
ROE – as-reported |
12-months rolling net income attributable to Entergy Corporation divided by average common equity |
|
ROIC – as-reported |
12-months rolling net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital |
|
Securitization debt |
Debt associated with securitization bonds issued to recover storm costs from hurricanes Rita, Ike and Gustav at E-TX and Hurricane Isaac at E-NO; the 2009 ice storm at E-AR and investment recovery of costs associated with the cancelled Little Gypsy repowering project at E-LA |
|
Total debt |
Sum of short-term and long-term debt, notes payable and commercial paper and capital leases on the balance sheet |
|
Appendix F-1: Definitions | |
|
Financial Measures - Non-GAAP | |
|
Adjusted EBITDA |
Earnings before interest, depreciation and amortization and income taxes and excluding decommissioning expense |
|
Debt to capital ratio, 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, prepaid taxes and taxes accrued, interest accrued and other working capital accounts) and securitization regulatory charges |
|
Gross liquidity |
Sum of cash and revolver capacity |
|
Net debt to net capital ratio, excluding securitization debt |
Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt |
|
Operational adjusted EBITDA |
Adjusted EBITDA excluding effects of special items |
|
Operational EPS |
As-reported EPS excluding special items |
|
Operational FFO |
FFO excluding the effects of special items |
|
Operational FFO to debt ratio, excluding securitization debt |
12-months rolling operational FFO as a percentage of end of period total debt excluding securitization debt |
|
Operational FFO to debt ratio, excluding securitization debt and return of unprotected excess ADIT |
12-months rolling operational FFO as a percentage of end of period total debt excluding securitization debt and return of unprotected excess ADIT |
|
Parent debt to total debt ratio, excluding securitization debt |
End of period Entergy Corporation debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of consolidated total debt, excluding securitization debt |
|
ROE – operational |
12-months rolling operational net income attributable to Entergy Corporation divided by average common equity |
|
ROIC – operational |
12-months rolling operational net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital |
|
UP&O adjusted earnings |
As-reported earnings excluding special items and normalizing weather and income taxes |
|
Utility, Parent & Other |
Combines the Utility segment with Parent & Other, which is all of Entergy excluding the EWC segment |
Appendix F-2 explains abbreviations and acronyms used in the quarterly earnings materials.
|
Appendix F-2: Abbreviations and Acronyms | |||
|
ADIT |
Accumulated deferred income taxes |
LPSC |
Louisiana Public Service Commission |
|
AFUDC - borrowed funds |
Allowance for borrowed funds used during construction |
LTM |
Last twelve months |
|
AMI |
Advanced metering infrastructure |
MISO |
Midcontinent Independent System Operator, Inc. |
|
ANO |
Units 1 and 2 of Arkansas Nuclear One owned by E-AR (nuclear) |
Moody's |
Moody's Investor Service |
|
APSC |
Arkansas Public Service Commission |
MPSC |
Mississippi Public Service Commission |
|
ARO |
Asset retirement obligation |
MTEP |
MISO Transmission Expansion Planning |
|
bps |
Basis points |
Nelson 6 |
Unit 6 of Roy S. Nelson plant (coal) |
|
CCGT |
Combined cycle gas turbine |
NEPOOL |
New England Power Pool |
|
CCNO |
Council of the City of New Orleans, Louisiana |
Ninemile 6 |
Ninemile Point Unit 6 (CCGT) |
|
COD |
Commercial operation date |
Non-fuel O&M |
Non-fuel operation and maintenance expense |
|
CT |
Simple cycle combustion turbine |
NDT |
Nuclear decommissioning trust |
|
DCRF |
Distribution cost recovery factor |
NOPS |
New Orleans Power Station (reciprocating internal combustion engine/natural gas) |
|
E-AR |
Entergy Arkansas, Inc. |
NorthStar |
NorthStar Decommissioning Holdings, LLC |
|
E-LA |
Entergy Louisiana, LLC |
NRC |
Nuclear Regulatory Commission |
|
E-MS |
Entergy Mississippi, Inc. |
NYISO |
New York Independent System Operator, Inc. |
|
E-NO |
Entergy New Orleans, LLC |
NYPA |
New York Power Authority |
|
E-TX |
Entergy Texas, Inc. |
NYSE |
New York Stock Exchange |
|
EBITDA |
Earnings before interest, income taxes, depreciation and amortization |
O&M |
Operation and maintenance expense |
|
ENGC |
Entergy Nuclear Generation Company |
OCF |
Net cash flow provided by operating activities |
|
ENP |
Entergy Nuclear Palisades, LLC |
OpCo |
Operating Company |
|
ENVY |
Entergy Nuclear Vermont Yankee |
OPEB |
Other post-employment benefits |
|
ESI |
Entergy Services, Inc. |
Palisades |
Palisades Power Plant (nuclear) |
|
EPS |
Earnings per share |
Pilgrim |
Pilgrim Nuclear Power Station (nuclear) |
|
ETR |
Entergy Corporation |
PPA |
Power purchase agreement or purchased power agreement |
|
EWC |
Entergy Wholesale Commodities |
PUCT |
Public Utility Commission of Texas |
|
FERC |
Federal Energy Regulatory Commission |
RICE |
Reciprocating Internal Combustion Engine |
|
FFO |
Funds from operations |
RFP |
Request for proposals |
|
Firm LD |
Firm liquidated damages |
ROE |
Return on equity |
|
FitzPatrick |
James A. FitzPatrick Nuclear Power Plant (nuclear, sold March 31, 2017) |
ROIC |
Return on invested capital |
|
FRP |
Formula rate plan |
RPCE |
Rough production cost equalization |
|
GAAP |
U.S. generally accepted accounting principles |
RS Cogen |
RS Cogen facility (CCGT cogeneration) |
|
Grand Gulf or GGNS |
Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by SERI |
RSP |
Rate Stabilization Plan (E-LA Gas) |
|
Indian Point 1 or IP1 |
Indian Point Energy Center Unit 1 (nuclear) (shut down in 1974) |
S&P |
Standard & Poor's |
|
Indian Point 2 or IP2 |
Indian Point Energy Center Unit 2 (nuclear) |
SEC |
U.S. Securities and Exchange Commission |
|
Indian Point 3 or IP3 |
Indian Point Energy Center Unit 3 (nuclear) |
SERI |
System Energy Resources, Inc. |
|
IPEC |
Indian Point Energy Center (nuclear) |
TCRF |
Transmission cost recovery factor |
|
IRS |
Internal Revenue Service |
Union |
Union Power Station (CCGT) |
|
ISO |
Independent system operator |
UPSA |
Unit Power Sales Agreement |
|
ISES 2 |
Unit 2 of Independence Steam Electric Station (coal) |
UP&O |
Utility, Parent & Other |
|
VPUC |
Vermont Public Utility Commission | ||
|
VY or Vermont Yankee |
Vermont Yankee Nuclear Power Station (nuclear) | ||
|
WACC |
Weighted-average cost of capital | ||
|
WPEC |
Washington Parish Energy Center (CT/natural gas) | ||
G: GAAP to Non-GAAP Reconciliations
Appendix G-1, Appendix G-2 and Appendix G-3 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure.
|
Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures – EWC Operational Net Revenue | |||||
|
($ in millions except where noted) |
Second Quarter |
Year-to-Date | |||
|
2018 |
2017 |
2018 |
2017 | ||
|
EWC |
|||||
|
As-reported net revenue |
(A) |
272 |
250 |
654 |
744 |
|
Special items included in net revenue: |
|||||
|
EWC Nuclear costs associated with decisions to close or sell plants |
- |
1 |
- |
91 | |
|
Total special items included in net revenue |
(B) |
- |
1 |
- |
91 |
|
Operational net revenue |
(A-B) |
272 |
250 |
654 |
653 |
|
EWC Nuclear |
|||||
|
As-reported EWC Nuclear net revenue |
(C) |
267 |
247 |
646 |
738 |
|
Special items included in EWC Nuclear net revenue: |
|||||
|
EWC Nuclear costs associated with decisions to close or sell plants |
- |
1 |
- |
91 | |
|
Total special items included in EWC Nuclear net revenue |
(D) |
- |
1 |
- |
91 |
|
Operational EWC Nuclear net revenue |
(C-D) |
267 |
247 |
646 |
647 |
|
Calculations may differ due to rounding |
|
Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures – ROIC, ROE | |||
|
($ in millions except where noted) |
Second Quarter | ||
|
2018 |
2017 | ||
|
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months |
(A) |
297 |
(888) |
|
Preferred dividends |
14 |
15 | |
|
Tax effected interest expense |
510 |
404 | |
|
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months adjusted for preferred dividends and tax effected interest expense |
(B) |
821 |
(469) |
|
Special items in prior quarters |
(720) |
(1,947) | |
|
Items associated with decisions to close or sell EWC nuclear plants |
(82) |
(151) | |
|
Total special items, rolling 12 months |
(C) |
(802) |
(2,098) |
|
Operational earnings, rolling 12 months adjusted for preferred dividends and tax effected interest expense (non-GAAP) |
(B-C) |
1,624 |
1,629 |
|
Operational earnings, rolling 12 months (non-GAAP) |
(A-C) |
1,099 |
1,210 |
|
Average invested capital |
(D) |
25,480 |
24,886 |
|
Average common equity |
(E) |
8,197 |
9,064 |
|
ROIC – as-reported |
(B/D) |
3.2% |
(1.9%) |
|
ROIC – operational |
[(B-C)/D] |
6.4% |
6.5% |
|
ROE – as-reported |
(A/E) |
3.6% |
(9.8%) |
|
ROE – operational |
[(A-C)/E] |
13.4% |
13.3% |
|
Calculations may differ due to rounding |
|
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures – Debt Ratios excluding Securitization Debt; Gross Liquidity; FFO to Debt, excluding Securitization Debt and Return of Unprotected Excess ADIT | |||
|
($ in millions except where noted) |
Second Quarter | ||
|
2018 |
2017 | ||
|
Total debt |
(A) |
17,881 |
16,285 |
|
Less securitization debt |
(B) |
483 |
602 |
|
Total debt, excluding securitization debt |
(C) |
17,398 |
15,683 |
|
Less cash and cash equivalents |
(D) |
813 |
934 |
|
Net debt, excluding securitization debt |
(E) |
16,585 |
14,749 |
|
Total capitalization |
(F) |
26,102 |
24,859 |
|
Less securitization debt |
(B) |
483 |
602 |
|
Total capitalization, excluding securitization debt |
(G) |
25,619 |
24,257 |
|
Less cash and cash equivalents |
(D) |
813 |
934 |
|
Net capital, excluding securitization debt |
(H) |
24,806 |
23,323 |
|
Debt to capital ratio |
(A/F) |
68.5% |
65.5% |
|
Debt to capital ratio, excluding securitization debt |
(C/G) |
67.9% |
64.7% |
|
Net debt to net capital ratio, excluding securitization debt |
(E/H) |
66.9% |
63.2% |
|
Revolver capacity |
(I) |
3,885 |
4,163 |
|
Gross liquidity |
(D+I) |
4,698 |
5,097 |
|
Entergy Corporation notes: |
|||
|
Due September 2020 |
450 |
450 | |
|
Due July 2022 |
650 |
650 | |
|
Due September 2026 |
750 |
750 | |
|
Total parent long-term debt |
(J) |
1,850 |
1,850 |
|
Revolver draw |
(K) |
390 |
225 |
|
Commercial paper |
(L) |
1,945 |
1,147 |
|
Total parent debt |
(J+K+L) |
4,185 |
3,222 |
|
Parent debt to total debt ratio, excluding securitization debt |
[(J+K+L)/C] |
24.1% |
20.5% |
|
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures – Debt Ratios excluding Securitization Debt; Gross Liquidity; FFO to Debt, excluding Securitization Debt and Return of Unprotected Excess ADIT (continued) | |||
|
($ in millions except where noted) |
Second Quarter | ||
|
2018 |
2017 | ||
|
Total debt |
(A) |
17,881 |
16,285 |
|
Less securitization debt |
(B) |
483 |
602 |
|
Total debt, excluding securitization debt |
(C) |
17,398 |
15,683 |
|
Net cash flow provided by operating activities, rolling 12 months |
(D) |
2,884 |
2,566 |
|
AFUDC-borrowed funds, rolling 12 months |
(E) |
(53) |
(37) |
|
Working capital items in net cash flow provided by operating activities (rolling 12 months): |
|||
|
Receivables |
(149) |
(33) | |
|
Fuel inventory |
(1) |
35 | |
|
Accounts payable |
190 |
139 | |
|
Prepaid taxes and taxes accrued |
28 |
(38) | |
|
Interest accrued |
3 |
(2) | |
|
Other working capital accounts |
(48) |
62 | |
|
Securitization regulatory charges |
123 |
115 | |
|
Total |
(F) |
146 |
278 |
|
FFO, rolling 12 months |
(G)=(D+E-F) |
2,685 |
2,251 |
|
Add back special items (rolling 12 months pre-tax): |
|||
|
Items associated with decisions to close or sell EWC nuclear plants |
- |
126 | |
|
Operational FFO, rolling 12 months |
(H) |
2,685 |
2,377 |
|
Operational FFO to debt ratio, excluding securitization debt |
(H/C) |
15.4% |
15.2% |
|
Estimated return of unprotected excess ADIT (rolling 12 months pre-tax) |
(I) |
76 |
- |
|
Operational FFO to debt ratio, excluding securitization debt and return of unprotected excess ADIT |
[(H)+(I)/(C] |
15.9% |
15.2% |
|
Calculations may differ due to rounding |
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SOURCE Entergy Corporation
Article Date
8/1/20187/27/2018 - Entergy Declares Dividend
Entergy Declares Dividend
Source: PR Newswire
NEW ORLEANS, July 27, 2018 /PRNewswire/ -- The Board of Directors of Entergy Corporation (NYSE: ETR) has declared a quarterly dividend of $0.89 per common share. The payment date is September 4, 2018, to stockholders of record on August 9, 2018.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and more than 13,000 employees.
Online address: Entergy.com
Twitter: @Entergy
Facebook: www.facebook.com/entergy
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SOURCE Entergy Corporation
Article Date
7/27/2018Entergy Announces Second Quarter Earnings Conference Call
Source: PR Newswire
NEW ORLEANS, July 25, 2018 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) will report second quarter earnings results before market open on Wednesday, August 1, 2018, and host a teleconference at 9:00 a.m. CT that day to discuss the earnings announcement and the company's financial performance. The teleconference may be accessed by dialing 844-309-6569, conference ID 3594779, no more than 15 minutes prior to the start of the call or by visiting Entergy's website at entergy.com. From time to time, Entergy posts new and/or revised materials on its website and on social media, and anticipates doing so in connection with this event. The presentation slides will be available on Entergy's website and the Entergy Investor Relations mobile web app at iretr.com before market open on the day of the call. A replay of the teleconference will be available until August 8, 2018, by dialing 855-859-2056, conference ID 3594779.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and more than 13,000 employees.
Additional investor information can be accessed at entergy.com/investor_relations
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SOURCE Entergy Corporation
Article Date
7/25/2018Riley, Kenney Appointed to Leadership Roles in Distribution Operations Organization; Landreaux Takes Helm of Entergy Arkansas
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
NEW ORLEANS, June 18, 2018 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) announced today that Rick Riley, president and chief executive officer of Entergy Arkansas Inc., will be named senior vice president of distribution operations and asset management. This new organization will support Entergy's customer-centric strategy at each of its five operating companies in Arkansas, Louisiana, Texas and Mississippi, as they continue to modernize and strengthen their electric grids. The move comes as the company executes its capital investment plan to promote operational excellence and an enhanced Entergy customer experience. Riley will report directly to Rod West, group president, utility operations.
"Our customers' needs and expectations are evolving rapidly, and we are planning for it by creating a more integrated energy network that provides Entergy and its customers more options in safe, reliable, and affordable products and services," said West. "A proven leader, Rick brings more than 33 years of industry experience in transmission and distribution operations to this important role. More importantly, his background as a utility president and chief executive officer has provided him with invaluable insights into the needs of our customers."
On his new role, Riley said, "This is an exciting opportunity for me to help develop an energy future that creates value for our communities, and ensure our employees have the tools, resources and training necessary to deliver a positive and productive experience to customers throughout our service territories. My time in Arkansas has been beyond wonderful, and I will miss working daily with our employees, customers and stakeholders of the Natural State."
As part of the new organization's mission, Lauren Kenney, vice president of product development and product management, will be promoted to vice president, grid modernization and utility support. In this role, she will lead the project design and deployment strategy for the company's grid modernization efforts, including advanced metering, enterprise asset management and state-of-the-art distribution automation functionality. She will report directly to Riley.
"Advanced metering infrastructure is the gateway to a more modern grid," said West. "Lauren has led our AMI development and deployment efforts to date – and her capable leadership and work ethic give us confidence in her ability to execute on these major initiatives. We are fortunate to have her in this expanded role."
Landreaux to Head Entergy Arkansas
Laura Landreaux, a highly respected leader within the company for more than a decade, will replace Riley as president and chief executive officer of Entergy Arkansas. Landreaux will be responsible for Entergy Arkansas' business results, including financial, operational, customer service, safety, resource planning, economic development, employee development and regulatory and governmental affairs. Landreaux previously served as finance director for Entergy Arkansas, a position she's held since November of 2017. Prior to that role, she was Entergy Arkansas' vice president of regulatory affairs. Landreaux joined Entergy in 2007.
"Laura's well-rounded experience makes her the right choice to lead Entergy Arkansas in the future, as we embark on our program to modernize the grid and create an integrated energy network," said West. "As a native Arkansan, Laura has a keen understanding of the needs of customers and stakeholders in Arkansas, and how best to deliver the value and service they expect in their electricity provider. As an active member of the Arkansas non-profit community, she has demonstrated a strong desire to help our local communities be successful through volunteerism, donations and leadership."
Landreaux is a former officer and founding member of Arkansas Women in Power and a member of the Arkansas Children's Hospital Women's Auxiliary. She also serves on the board of directors for the Arkansas Repertory Theatre, and she is a graduate of Leadership Greater Little Rock.
Landreaux received a Juris Doctor from the University of Arkansas School of Law at Fayetteville, where she was on the Arkansas Law Review. She received a Bachelor of Arts degree from the University of Arkansas at Fayetteville. She has also served as an attorney for Salt River Project and for Quarles & Brady, LLP, both in Phoenix.
All moves are effective July 1.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas.
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SOURCE Entergy Corporation
Article Date
6/18/20186/12/2018 - Entergy Corporation to Host 2018 Analyst Day
Entergy Corporation to Host 2018 Analyst Day
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
NEW ORLEANS, June 12, 2018 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) will host its 2018 Analyst Day in New York City on Thursday, June 21, 2018. The event will feature presentations by Chairman and Chief Executive Officer Leo Denault and members of Entergy's executive management team.
The business session will take place from 12:30 p.m. to approximately 4:00 p.m. ET. A live webcast of the meeting can be accessed on the Investor Relations section of Entergy's corporate website at www.entergy.com. Presentation slides will be made available on the Investor Relations section of Entergy's website and the Entergy Investor Relations mobile web app at iretr.com after market close on Wednesday, June 20, 2018. Please note that printed materials will not be provided at the event. A replay of the webcast will also be available on the website.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and more than 13,000 employees.
Additional investor information can be accessed at www.entergy.com/investor_relations
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SOURCE Entergy Corporation
Article Date
6/12/2018Entergy Corporation Announces Pricing of Common Stock Offering with a Forward Component
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
NEW ORLEANS, June 6, 2018 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) announced today the pricing of a registered underwritten offering of 13,289,037 shares of its common stock at a price to the public of $75.25 per share. Subject to certain conditions, all shares are expected to be borrowed by the forward counterparties (as defined below) (or their respective affiliates) from third parties and sold to the underwriters and offered in connection with the forward sale agreements described below. Morgan Stanley, Goldman Sachs & Co. LLC, J.P. Morgan, Barclays, BofA Merrill Lynch, Citigroup and Wells Fargo Securities are acting as joint book-running managers for this offering. Closing of this offering is expected to occur on or about June 11, 2018.
In connection with the offering, Entergy entered into forward sale agreements with each of Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC and an affiliate of J.P. Morgan Securities LLC (the "forward counterparties") under which Entergy agreed to issue and sell to the forward counterparties an aggregate of 13,289,037 shares of its common stock. In addition, the underwriters of the offering have been granted a 30-day option to purchase up to an additional 1,993,355 shares of Entergy's common stock upon the same terms, solely to cover any over-allotments. If the underwriters exercise their over-allotment option, Entergy expects to enter into additional forward sale agreements with the forward counterparties with respect to the additional shares.
Settlement of the forward sale agreements is expected to occur on or prior to June 7, 2019. Entergy may, subject to certain conditions, elect cash settlement or net share settlement for all or a portion of its rights or obligations under the forward sale agreements.
If Entergy elects physical settlement of the forward sale agreements, it expects to use the net proceeds for general corporate purposes, which may include repayment of commercial paper, outstanding loans under Entergy's revolving credit facility or other debt.
The offering is being made pursuant to Entergy's effective shelf registration statement filed with the Securities and Exchange Commission (the "SEC"). The prospectus supplement and the accompanying base prospectus related to the offering will be available on the SEC's website at www.sec.gov. Copies of the prospectus supplement and the accompanying base prospectus relating to the offering may be obtained from the joint-book running managers for the offering as follows:
Morgan Stanley & Co. LLC
180 Varick St, 2nd Floor
New York, New York 10014
Attn: Prospectus Department
Goldman Sachs & Co. LLC
Attention: Prospectus Department
200 West Street
New York, New York 10282
Telephone: (866) 471-2526
J.P. Morgan Securities LLC
c/o Broadridge Financial Solutions
155 Long Island Avenue
Edgewood, NY 11717
Telephone: (866) 803-9204
This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which the offer, solicitation or sale of these securities would be unlawful prior to registration or qualification under the securities laws of any jurisdiction. The offering of these securities will be made only by means of a prospectus and a related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains forward-looking statements regarding our planned offer and sale of common stock and the use of the net proceeds from any such sale. We cannot be sure that we will complete the offering or, if we do, on what terms we will complete it. Forward-looking statements are based on current beliefs and expectations and are subject to inherent risks and uncertainties, including those discussed under the caption "Forward-Looking Statements" in the prospectus supplement. In addition, Entergy management retains broad discretion with respect to the allocation of net proceeds of this offering. The forward-looking statements speak only as the date of release, and Entergy is under no obligation to, and expressly disclaims any such obligation to update or alter its forward-looking statements, whether as the result of new information, future events or otherwise, except as may be required by law.
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SOURCE Entergy Corporation
Article Date
6/7/2018Entergy Corporation Announces Public Offering of Common Stock with a Forward Component
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
NEW ORLEANS, June 6, 2018 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) announced today the commencement of a registered underwritten offering of $1 billion of shares of its common stock. Subject to certain conditions, all shares are expected to be borrowed by the forward counterparties (as defined below) (or their respective affiliates) from third parties and sold to the underwriters and offered in connection with the forward sale agreements described below. Morgan Stanley, Goldman Sachs & Co. LLC and J.P. Morgan are acting as joint book-running managers for this offering. The underwriters may offer shares of Entergy's common stock in transactions on the New York Stock Exchange, in the over-the-counter market, through negotiated transactions or otherwise at either market prices, at prices related to market prices or at negotiated prices.
In connection with the offering, Entergy expects to enter into forward sale agreements with each of Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC and an affiliate of J.P. Morgan Securities LLC (the "forward counterparties") under which Entergy will agree to issue and sell to the forward counterparties an aggregate of $1 billion of shares of its common stock at an initial forward sale price per share equal to the price per share at which the underwriters purchase the shares in the offering, subject to certain adjustments, upon physical settlement of the forward sale agreements. In addition, the underwriters of the offering expect to be granted a 30-day option to purchase up to an additional $150 million of shares of Entergy's common stock upon the same terms, solely to cover any over-allotments. If the underwriters exercise their over-allotment option, Entergy expects to enter into additional forward sale agreements with the forward counterparties with respect to the additional shares.
Settlement of the forward sale agreements is expected to occur on or prior to June 7, 2019. Entergy may, subject to certain conditions, elect cash settlement or net share settlement for all or a portion of its rights or obligations under the forward sale agreements.
If Entergy elects physical settlement of the forward sale agreements, it expects to use the net proceeds for general corporate purposes, which may include repayment of commercial paper, outstanding loans under Entergy's revolving credit facility or other debt.
The offering is being made pursuant to Entergy's effective shelf registration statement filed with the Securities and Exchange Commission (the "SEC"). The preliminary prospectus supplement and the accompanying base prospectus related to the offering will be available on the SEC's website at www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying base prospectus relating to the offering may be obtained from the joint-book running managers for the offering as follows:
Morgan Stanley & Co. LLC
180 Varick St, 2nd Floor
New York, New York 10014
Attn: Prospectus Department
Goldman Sachs & Co. LLC
Attention: Prospectus Department
200 West Street
New York, New York 10282
Telephone: (866) 471-2526
J.P. Morgan Securities LLC
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, NY 11717
Telephone: (866) 803-9204
This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which the offer, solicitation or sale of these securities would be unlawful prior to registration or qualification under the securities laws of any jurisdiction. The offering of these securities will be made only by means of a prospectus and a related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains forward-looking statements regarding our planned offer and sale of common stock and the use of the net proceeds from any such sale. We cannot be sure that we will complete the offering or, if we do, on what terms we will complete it. Forward-looking statements are based on current beliefs and expectations and are subject to inherent risks and uncertainties, including those discussed under the caption "Forward-Looking Statements" in the prospectus supplement In addition, Entergy management retains broad discretion with respect to the allocation of net proceeds of this offering. The forward-looking statements speak only as the date of release, and Entergy is under no obligation to, and expressly disclaims any such obligation to update or alter its forward-looking statements, whether as the result of new information, future events or otherwise, except as may be required by law.
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SOURCE Entergy Corporation
Article Date
6/6/2018Entergy, NextEra Energy Resources celebrate commissioning of Arkansas' largest universal solar energy project
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
STUTTGART, Ark., May 29, 2018 /PRNewswire/ -- State and local leaders joined executives from NextEra Energy Resources (NYSE: NEE) and Entergy Arkansas (NYSE: ETR) this morning to celebrate the commissioning of Arkansas' largest universal solar energy project – the Stuttgart Solar Energy Center.
"Solar energy is good for Arkansans and good for our economy," said Arkansas Gov. Asa Hutchinson. "Arkansas has many great natural resources. It's wonderful we are now also utilizing the sun to provide clean energy to the state and drive our economy forward."
The Stuttgart Solar Energy Center spans 475 acres, approximately seven miles southeast of Stuttgart, Ark. Construction lasted eight months and generated a significant economic boost to Arkansas County and the state, by creating hundreds of construction jobs and stimulating the purchase of regional goods and services from more than a dozen local vendors.
"We are pleased to work with our partners at Entergy to bring the largest solar energy center in Arkansas online," said Armando Pimentel, president and CEO of NextEra Energy Resources, the world's largest generator of renewable energy from the wind and sun. "This solar energy project will provide millions of dollars in additional tax revenue to Arkansas County and will generate cost-effective, home-grown solar energy for Entergy customers for years to come."
The facility features more than 350,000 photovoltaic solar panels that convert the sun's energy into electricity. The solar energy center has a capacity to generate 81 megawatts of electricity, or enough to power more than 13,000 homes. A subsidiary of NextEra Energy Resources built the facility and will own and operate it. The energy will serve Entergy Arkansas customers under a 20-year power purchase agreement.
"Over our 105 years in business, Entergy Arkansas has generated power with sawdust, water, coal, oil, natural gas, nuclear, and now the sun," said Rick Riley, president and CEO of Entergy Arkansas. "Through this investment with NextEra Energy Resources, we are further diversifying our power generation resource mix and providing Entergy Arkansas customers with access to additional clean, renewable and affordable energy."
Over its operational life, the Stuttgart Solar Energy Center is expected to generate nearly $8 million in additional revenue for Arkansas County, with much of that funding going to help Arkansas County Public Schools.
"We are already seeing the project's impacts in Arkansas County through new jobs and school funding," said Bethany Hildebrand, executive director and CEO of the Stuttgart Chamber of Commerce. "We are thrilled to host the state's largest solar facility and know it will continue to provide benefits to our community."
NextEra Energy Resources
About NextEra Energy Resources
NextEra Energy Resources, LLC (together with its affiliated entities, "NextEra Energy Resources"), is a clean energy leader and is one of the largest wholesale generators of electric power in the U.S., with more than 19,000 megawatts of net generating capacity, primarily in 32 states and Canada as of year-end 2017. NextEra Energy Resources, together with its affiliated entities, is the world's largest operator of renewable energy from the wind and sun. The business operates clean, emissions-free nuclear power generation facilities in New Hampshire, Iowa and Wisconsin as part of the NextEra Energy nuclear fleet, which is one of the largest in the United States. NextEra Energy Resources, LLC is a subsidiary of Juno Beach, Florida-based NextEra Energy, Inc. (NYSE: NEE). For more information, visit www.NextEraEnergyResources.com.
Entergy Arkansas
Entergy Arkansas provides electricity to approximately 700,000 customers in 63 counties. Entergy Arkansas is a subsidiary of Entergy Corporation (NYSE: ETR), an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
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SOURCE NextEra Energy Resources
Article Date
5/29/20184/25/2018 - Entergy Reports First Quarter Earnings
Entergy Reports First Quarter Earnings
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
NEW ORLEANS, April 25, 2018 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported first quarter 2018 earnings per share of 73 cents on an as-reported basis and $1.16 on an operational basis. These results reflect the lower federal income tax rate, favorable weather of 9 cents and a loss of (4) cents from the implementation of ASU No. 2016-01, which now requires the mark-to-market of equity investments in the nuclear decommissioning trust funds at EWC.
"We've had a solid start to 2018 with success on key projects and regulatory initiatives," said Entergy Chairman and Chief Executive Officer Leo Denault. "Our results keep us on track to achieve our full year guidance and long-term outlooks."
Business highlights included the following:
|
Consolidated Earnings (GAAP and Non-GAAP Measures) First Quarter 2018 vs. 2017 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of special items) | |||
|
First Quarter | |||
|
2018 |
2017 |
Change | |
|
(After-tax, $ in millions) |
|||
|
As-reported earnings |
133 |
83 |
50 |
|
Less special items |
(78) |
(95) |
17 |
|
Operational earnings (non-GAAP) |
211 |
178 |
33 |
|
Estimated weather in billed sales |
16 |
(29) |
46 |
|
(After-tax, per share in $) |
|||
|
As-reported earnings |
0.73 |
0.46 |
0.27 |
|
Less special items |
(0.43) |
(0.53) |
0.10 |
|
Operational earnings (non-GAAP) |
1.16 |
0.99 |
0.17 |
|
Estimated weather in billed sales |
0.09 |
(0.16) |
0.25 |
|
Calculations may differ due to rounding |
Consolidated Results
For first quarter 2018, the company reported earnings of $133 million, or 73 cents per share, on an as-reported basis and earnings of $211 million, or $1.16 per share, on an operational basis. This compared to first quarter 2017 earnings of $83 million, or 46 cents per share, on an as-reported basis and earnings of $178 million, or 99 cents per share on an operational basis.
Summary discussions by business are below. Additional details, including information on OCF by business, are provided in Appendix A and a comprehensive analysis of quarterly variances by business is provided in Appendix B.
Utility, Parent & Other Results
For first quarter 2018, the Utility business reported earnings attributable to Entergy Corporation of $215 million, or $1.19 per share, compared to $165 million, or 92 cents per share, in first quarter 2017. Key drivers for the quarterly increase included higher net revenue and lower income tax expense, partially offset by higher operating expenses.
Net revenue increased quarter-over-quarter driven by favorable weather in first quarter 2018 compared to unfavorable weather a year ago. Weather-adjusted sales growth was positive, but was more than offset by lower volume in the unbilled period. Rate actions to recover investments that benefit customers were also more than offset by regulatory provisions recorded to return benefits from tax reform to customers at Entergy Louisiana and Entergy New Orleans.
On a weather-adjusted basis, billed sales increased 3.0 percent, including 4.1 percent and 2.4 percent for residential and commercial billed sales, respectively. Industrial billed sales volume increased 2.6 percent with higher sales to both new and expansion customers as well as existing customers. The increase was driven largely by the primary metals segment. Sales to petroleum refining customers were also higher.
Income tax expense was lower due primarily to the reduction of the federal income tax rate. Utility non-fuel O&M increased quarter-over-quarter, driven by higher spending on nuclear operations, primarily labor, and taxes other than income taxes.
For first quarter 2018, Parent & Other reported a loss of $(64 million), or (36) cents per share, compared to a loss of $(54 million), or (30) cents per share, in first quarter 2017.
On a combined basis, Utility, Parent & Other (non-GAAP) contributed 83 cents to first quarter 2018 consolidated EPS compared to 62 cents to first quarter 2017 consolidated EPS. On an adjusted basis, excluding special items and normalizing weather and income taxes, Utility, Parent & Other contributed 71 cents in first quarter 2018 to consolidated EPS, compared to 83 cents in first quarter 2017.
Appendix C contains additional details on Utility financial and operating measures, including a reconciliation for non-GAAP Utility, Parent & Other adjusted earnings and EPS.
Entergy Wholesale Commodities Results
For first quarter 2018, EWC recorded a loss attributable to Entergy Corporation of $(18 million), or (10) cents per share, on an as-reported basis and earned $60 million, or 33 cents per share, on an operational basis. This compared to a first quarter 2017 loss of $(28 million), or (16) cents per share, on an as-reported basis and earnings of $67 million, or 37 cents per share, on an operational basis.
As-reported losses in both periods reflected impairments and other expenses recorded as a result of strategic decisions for the wholesale business. These items were considered special items and excluded from operational earnings.
The sale of FitzPatrick at the end of first quarter 2017 affected period-over-period variances for multiple line items. Excluding FitzPatrick, quarterly earnings reflected lower other income, primarily due to losses on decommissioning trust funds previously classified as other comprehensive income on the balance sheet, now recorded to the income statement. The decrease was partially offset by lower income tax expense which resulted primarily from the reduction of the federal income tax rate.
Appendix D contains additional details on EWC financial and operating measures, including reconciliation for non-GAAP EWC operational adjusted EBITDA.
Earnings Guidance
Entergy affirmed its 2018 consolidated operational earnings guidance range of $6.25 to $6.85 per share and its Utility, Parent & Other adjusted guidance range of $4.50 to $4.90 per share. See webcast presentation slides for additional details, including Progress Against Guidance on slide 35.
The company has provided 2018 earnings guidance with regard to the non-GAAP measures of consolidated operational EPS and Utility, Parent & Other adjusted EPS. These measures exclude from the corresponding GAAP financial measures the effect of special items 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 special items that may occur during 2018. The only anticipated special items that the company can reasonably estimate at this time are those that relate to the decisions to sell or close the company's merchant nuclear plants; these estimated costs, which are excluded from the earnings guidance, are expected to decrease as-reported EPS by approximately $(2.55) per share in 2018.
Earnings Teleconference
A teleconference will be held at 10:00 a.m. Central Time on Wednesday, April 25, 2018, to discuss Entergy's quarterly earnings announcement and the company's financial performance. The teleconference may be accessed by visiting Entergy's website at www.entergy.com or by dialing 844-309-6569, conference ID 9178845, no more than 15 minutes prior to the start of the call. The webcast slide presentation is also posted to Entergy's website concurrent with this release, which was issued before market open on the day of the call. A replay of the teleconference will be available on Entergy's website at www.entergy.com and by telephone. The telephone replay will be available through May 2, 2018, by dialing 855-859-2056, conference ID 9178845. This release and the webcast slide presentation are also available on the Entergy Investor Relations mobile web app at iretr.com.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and more than 13,000 employees.
Entergy Corporation's common stock is listed on the New York and Chicago stock exchanges 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 slide presentation. Both documents are available on Entergy's Investor Relations website at www.entergy.com/investor_relations and on Entergy's Investor Relations mobile web app at iretr.com.
Entergy maintains a web page as part of its Investor Relations website, entitled "Regulatory and Other Information," which provides investors with key updates of regulatory proceedings and important milestones on the execution of its strategy. While some of this information may be considered material information, investors should not rely exclusively on this page for all relevant company information.
For definitions of certain operating measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the earnings release materials, see Appendix F.
Non-GAAP Financial Measures
This news release contains non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes 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 release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Certain non-GAAP financial measures in this news release could differ from GAAP only in that the figure or ratio states or includes operational earnings. Operational earnings are not calculated in accordance with GAAP because they exclude the effect of "special items." Special items are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, and may include items such as impairments, gains or losses on asset sales, and other gains or losses occurring as a result of strategic decisions such as Entergy's decisions to shut down or sell its merchant nuclear plants. In addition, other financial measures including net income (or earnings), adjusted for preferred dividends and tax effected interest expense; net revenue; return on average invested capital; and return on average common equity are included on both an operational and as-reported basis. In each case, the metrics defined as "operational" would exclude the effect of special items as defined above.
Entergy reports the combination of the Utility segment with Parent & Other as Utility, Parent & Other, which is all of Entergy excluding the EWC segment, since management uses this combination in making decisions about its ongoing business in light of its decision to exit the merchant power business. Entergy also reports Utility, Parent & Other adjusted earnings, which combines the Utility segment with Parent & Other, excludes applicable special items and normalizes weather and income tax expense for the periods presented, because it believes that these financial metrics provide useful information to investors in evaluating the ongoing results of Entergy's businesses and assist investors in comparing Entergy's financial performance to the financial performance of other companies in the Utility sector. The methodologies employed to determine the normalized weather and income tax expense adjustments, each of which is further described in this release, involve estimations and the judgement of management.
In addition to reporting earnings per share on a consolidated basis, Entergy reports on a per share basis the earnings or loss of each of its segments, together with the combination of the Utility segment and Parent & Other. These per share measures represent the net income or loss of such segment or segments divided by the diluted average number of shares of common stock outstanding for the period. Entergy believes such per share measures provide useful information to investors in understanding the results of operations of those businesses and their contribution to Entergy's consolidated results of operations.
Other non-GAAP measures, including adjusted EBITDA; operational adjusted EBITDA; gross liquidity; debt to capital ratio, excluding securitization debt; net debt to net capital ratio, excluding securitization debt; parent debt to total debt ratio, excluding securitization debt; debt to operational adjusted EBITDA ratio, excluding securitization debt; and operational FFO to debt ratio, excluding securitization debt are measures Entergy uses internally for management and board discussions and cash budgeting and performance monitoring activities 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.
The non-GAAP financial measures and other reported adjusted items in this release are presented in addition to, and in conjunction with, results presented in accordance with GAAP. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. 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. Investors are strongly encouraged to review Entergy's consolidated financial statements and publicly filed reports in their entirety and to not rely on any single financial measure. 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, Entergy's 2018 earnings guidance; its current financial and operational outlook; and other statements of Entergy's plans, beliefs or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy's most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and Entergy's other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory costs and risks, including any changes resulting from the nuclear crisis in Japan following its catastrophic earthquake and tsunami; (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 strategic transactions that Entergy or its subsidiaries may undertake, including the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental or energy policies; and (i) the effects of technological changes and changes in commodity markets, capital markets or economic conditions, during the periods covered by the forward-looking statements.
First Quarter 2018 Earnings Release Appendices and Financial Statements
Appendices
Appendices are presented in this section as follows:
A: Consolidated Results and Special Items
Appendix A-1 provides a comparative summary of consolidated earnings, including a reconciliation of as-reported earnings (GAAP) to operational earnings (non-GAAP).
|
Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures First Quarter 2018 vs. 2017 (See Appendix A-3 and Appendix A-4 for details on special items) | |||
|
First Quarter | |||
|
2018 |
2017 |
Change | |
|
(After-tax, $ in millions) |
|||
|
Earnings (loss) |
|||
|
Utility |
215 |
165 |
50 |
|
Parent & Other |
(64) |
(54) |
(10) |
|
EWC |
(18) |
(28) |
9 |
|
Consolidated |
133 |
83 |
50 |
|
Less special items |
|||
|
Utility |
- |
- |
- |
|
Parent & Other |
- |
- |
- |
|
EWC |
(78) |
(95) |
17 |
|
Consolidated |
(78) |
(95) |
17 |
|
Operational earnings (loss) (non-GAAP) |
|||
|
Utility |
215 |
165 |
50 |
|
Parent & Other |
(64) |
(54) |
(10) |
|
EWC |
60 |
67 |
(8) |
|
Consolidated |
211 |
178 |
33 |
|
Estimated weather in billed sales |
16 |
(29) |
46 |
|
Diluted average number of common shares outstanding (in millions) |
181.4 |
179.8 |
|
|
(After-tax, per share in $) (a) |
|||
|
Earnings (loss) |
|||
|
Utility |
1.19 |
0.92 |
0.27 |
|
Parent & Other |
(0.36) |
(0.30) |
(0.06) |
|
EWC |
(0.10) |
(0.16) |
0.06 |
|
Consolidated |
0.73 |
0.46 |
0.27 |
|
Less special items |
|||
|
Utility |
- |
- |
- |
|
Parent & Other |
- |
- |
- |
|
EWC |
(0.43) |
(0.53) |
0.10 |
|
Consolidated |
(0.43) |
(0.53) |
0.10 |
|
Operational earnings (loss) (non-GAAP) |
|||
|
Utility |
1.19 |
0.92 |
0.27 |
|
Parent & Other |
(0.36) |
(0.30) |
(0.06) |
|
EWC |
0.33 |
0.37 |
(0.04) |
|
Consolidated |
1.16 |
0.99 |
0.17 |
|
Estimated weather in billed sales |
0.09 |
(0.16) |
0.25 |
|
Calculations may differ due to rounding |
|
(a) |
Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period. |
See Appendix B for detailed earnings variance analysis. See Appendix A-3 for special items by driver.
Appendix A-2 provides a comparative summary OCF, by business.
|
Appendix A-2: Consolidated Operating Cash Flow | |||
|
First Quarter 2018 vs. 2017 | |||
|
($ in millions) | |||
|
First Quarter | |||
|
2018 |
2017 |
Change | |
|
Utility |
523 |
558 |
(35) |
|
Parent & Other |
(57) |
(176) |
119 |
|
EWC |
91 |
147 |
(56) |
|
Consolidated |
557 |
529 |
28 |
|
Calculations may differ due to rounding |
OCF increased quarter-over-quarter driven in part by lower refueling outage spending. Favorable weather in the quarter, compared to unfavorable weather a year ago, also contributed. Lower net revenue at EWC partially offset the increase. Intercompany income tax payments contributed to the line of business variances.
Appendix A-3 and Appendix A-4 list special items by business. Amounts are shown on both an earnings and EPS basis. Special items are included in as-reported earnings consistent with GAAP, but are excluded from operational earnings. As a result, operational earnings is considered a non-GAAP measure.
|
Appendix A-3: Special Items by Driver (shown as positive/(negative) impact on earnings or EPS) | |||||
|
First Quarter 2018 vs. 2017 | |||||
|
First Quarter | |||||
|
2018 |
2017 |
Change | |||
|
(Pre-tax except for income tax effects and total, $ in millions) |
|||||
|
EWC |
|||||
|
Items associated with decisions to close or sell EWC nuclear plants |
(99) |
(231) |
132 | ||
|
Gain on the sale of FitzPatrick |
- |
16 |
(16) | ||
|
Income tax effect on adjustments above (b) |
21 |
75 |
(54) | ||
|
Income tax benefit resulting from FitzPatrick transaction |
- |
45 |
(45) | ||
|
Total EWC |
(78) |
(95) |
17 | ||
|
Total special items |
(78) |
(95) |
17 | ||
|
(After-tax, per share in $) (c) |
|||||
|
EWC |
|||||
|
Items associated with decisions to close or sell EWC nuclear plants |
(0.43) |
(0.84) |
0.41 | ||
|
Gain on the sale of FitzPatrick |
- |
0.06 |
(0.06) | ||
|
Income tax benefit resulting from FitzPatrick transaction |
- |
0.25 |
(0.25) | ||
|
Total EWC |
(0.43) |
(0.53) |
0.10 | ||
|
Total special items |
(0.43) |
(0.53) |
0.10 | ||
|
Calculations may differ due to rounding |
|
(b) |
Income tax effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply. |
|
(c) |
EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply to each adjustment and then dividing by the diluted average number of common shares outstanding for the period. |
|
Appendix A-4: Special Items by Income Statement Line Item (shown as positive/(negative) impact on earnings) First Quarter 2018 vs. 2017 | |||
|
(Pre-tax except for Income taxes and total, $ in millions) | |||
|
First Quarter | |||
|
2018 |
2017 |
Change | |
|
EWC |
|||
|
Net revenue |
- |
91 |
(91) |
|
Non-fuel O&M |
(25) |
(120) |
95 |
|
Asset write-off and impairments |
(73) |
(212) |
139 |
|
Taxes other than income taxes |
(1) |
(4) |
4 |
|
Gain on sale of assets |
- |
16 |
(16) |
|
Miscellaneous net (other income) |
- |
15 |
(15) |
|
Income taxes (d) |
21 |
120 |
(99) |
|
Total EWC |
(78) |
(95) |
17 |
|
Total special items (after-tax) |
(78) |
(95) |
17 |
|
Calculations may differ due to rounding |
|
(d) |
Income taxes include the income tax effect of the special items which were calculated using the estimated income tax rate that is expected to apply to each item. First quarter 2017 also includes the income tax benefit which resulted from the FitzPatrick transaction. |
B: Earnings Variance Analysis
Appendix B provides details of current quarter 2018 versus 2017 as-reported and operational earnings variance analysis for Utility, Parent & Other and EWC.
|
Appendix B: As-Reported and Operational Earnings Variance Analysis | |||||||||||
|
First Quarter 2018 vs. 2017 | |||||||||||
|
(Pre-tax except for Income taxes, $ in millions) | |||||||||||
|
Utility |
Parent & Other |
EWC |
Consolidated | ||||||||
|
As-Reported |
Opera-tional |
As-Reported |
Opera-tional |
As- Reported |
Opera-tional |
As- Reported |
Opera- tional | ||||
|
2017 earnings |
165 |
165 |
(54) |
(54) |
(28) |
67 |
83 |
178 | |||
|
Net revenue |
55 |
55 |
(e) |
- |
- |
(112) |
(22) |
(f) |
(57) |
34 | |
|
Non-fuel O&M |
(35) |
(35) |
(g) |
- |
- |
98 |
3 |
(h) |
63 |
(32) | |
|
Asset write-offs and impairments |
- |
- |
- |
- |
139 |
- |
(i) |
139 |
- | ||
|
Decommissioning expense |
3 |
3 |
- |
- |
17 |
17 |
(j) |
20 |
20 | ||
|
Taxes other than income taxes |
(15) |
(15) |
(k) |
- |
- |
7 |
3 |
(9) |
(12) | ||
|
Depreciation/amortization exp. |
(14) |
(14) |
- |
- |
14 |
14 |
- |
- | |||
|
Gain on sale of assets |
- |
- |
- |
- |
(16) |
- |
(l) |
(16) |
- | ||
|
Other income (deductions)–other |
12 |
12 |
(1) |
(1) |
(57) |
(43) |
(m) |
(47) |
(32) | ||
|
Interest exp. and other charges |
(2) |
(2) |
(4) |
(4) |
(2) |
(2) |
(8) |
(8) | |||
|
Income taxes |
46 |
46 |
(n) |
(5) |
(5) |
(77) |
22 |
(o) |
(36) |
63 | |
|
2018 earnings |
215 |
215 |
(64) |
(64) |
(18) |
60 |
133 |
211 | |||
|
Calculations may differ due to rounding |
See appendix in the webcast slide presentation for additional details on EWC line item variances.
|
(e) |
The earnings increase from higher Utility net revenue was driven by weather, which was positive in first quarter 2018 and negative in first quarter 2017. While weather-adjusted billed sales volume increased across all classes, the net revenue effect was more than offset by lower volume in the unbilled period. Rate changes including E-AR's 2018 FRP and E-TX's TCRF and DCRF also contributed to the increase, but regulatory provisions at E-LA and E-NO to reflect regulatory agreements to return the benefits of the lower effective tax rate in first quarter 2018 to customers more than offset the rate changes. |
|
(f) |
The earnings decrease from lower EWC net revenue reflected lower volume from merchant nuclear plants, including FitzPatrick (sold first quarter 2017), largely offset by higher nuclear energy prices. The as-reported variance also reflected cost reimbursements from the buyer related to the FitzPatrick sale (classified as a special item and offset in non-fuel O&M). |
|
(g) |
The earnings decrease from higher Utility non-fuel O&M was primarily due to higher spending on nuclear operations, higher energy efficiency and storm reserve costs (largely offset in net revenue), as well as higher spending on fossil work. This was partly offset by higher nuclear insurance refunds in first quarter 2018. |
|
(h) |
The as-reported earnings increase from lower EWC non-fuel O&M is primarily due to costs incurred in first quarter 2017 related to the agreement to sell FitzPatrick (classified as a special item and offset in net revenue). |
|
(i) |
The as-reported earnings increase from lower EWC asset write-offs and impairments was due to lower impairment charges for EWC nuclear plants, partly due to Palisades no longer being impaired as a result of the decision to operate that plant until May 2022, as well as lower refueling outage costs charged to impairment (classified as a special item). |
|
(j) |
The earnings increase from lower EWC decommissioning expense was primarily due to the sale of FitzPatrick in first quarter 2017. |
|
(k) |
The earnings decrease from higher Utility taxes other than income taxes was due to higher franchise, ad valorem and payroll taxes. |
|
(l) |
The as-reported earnings decrease from lower EWC gain on sale of assets was due to the gain on the sale of FitzPatrick in first quarter 2017 (classified as a special item). |
|
Utility Net Revenue Variance Analysis 2018 vs. 2017 (Pre-tax, $ in millions) | |
|
1Q | |
|
Estimated weather |
69 |
|
Volume/unbilled |
(9) |
|
Retail electric price Reg. provisions for tax reform |
18 (29) |
|
Other |
6 |
|
Total |
55 |
|
(m) |
The earnings decrease from lower EWC other income (deductions)–other was due largely to losses on the decommissioning trust fund investments in first quarter 2018, including unrealized losses on equity investments that were previously recorded to other comprehensive income for periods prior to 2018. In first quarter 2017, only realized gains along with interest and dividends from the decommissioning trust fund investments, were recorded to the income statement. The as-reported earnings decrease also reflected the absence of gains on the receipt of the Indian Point 3 and FitzPatrick decommissioning trust funds from NYPA in first quarter 2017 (classified as a special item). |
|
(n) |
The earnings increase from lower Utility income taxes is primarily due to the change in the federal income tax rate. |
|
(o) |
The as-reported earnings decrease from higher EWC income taxes is primarily due to the tax benefit in first quarter 2017, which resulted from the sale of FitzPatrick (classified as a special item). The change in the federal income tax rate, as well as a change in pre-tax income was reflected in the as-reported and operational variances. |
C: Utility Financial and Operating Measures
Appendix C-1 provides a comparative summary of Utility, Parent & Other adjusted earnings and EPS contribution, each of which excludes the effects of special items and normalizes weather and income tax expense.
|
Appendix C-1: Utility, Parent & Other Adjusted Earnings and EPS - Reconciliation of GAAP to Non-GAAP Measures |
|||||||
|
First Quarter |
|||||||
|
2018 |
2017 |
Change |
|||||
|
($ in millions) |
|||||||
|
Utility as-reported earnings |
215 |
165 |
50 |
||||
|
Parent & Other as-reported earnings (loss) |
(64) |
(54) |
(10) |
||||
|
UP&O as-reported earnings |
151 |
110 |
41 |
||||
|
Less: |
|||||||
|
Special items |
- |
- |
- |
||||
|
Estimated weather (p) |
22 |
(48) |
69 |
||||
|
Tax effect of estimated weather (q) |
(6) |
18 |
(24) |
||||
|
Estimated weather impact (after-tax) |
16 |
(29) |
46 |
||||
|
Other income tax items (r) |
6 |
(9) |
15 |
||||
|
UP&O adjusted earnings |
129 |
149 |
(20) |
||||
|
(After tax, per share in $)(s) |
|||||||
|
Utility as-reported earnings |
1.19 |
0.92 |
0.27 |
||||
|
Parent & Other as-reported earnings (loss) |
(0.36) |
(0.30) |
(0.06) |
||||
|
UP&O as-reported earnings |
0.83 |
0.62 |
0.21 |
||||
|
Less: |
|||||||
|
Special items |
- |
- |
- |
||||
|
Estimated weather |
0.09 |
(0.16) |
0.25 |
||||
|
Other income tax items |
0.03 |
(0.05) |
0.08 |
||||
|
UP&O adjusted earnings |
0.71 |
0.83 |
(0.12) |
||||
|
Calculations may differ due to rounding |
|
(p) |
The effects of weather were estimated using heating degree days and cooling degree days for the billing cycles from certain locations within each jurisdiction and comparing to "normal" weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change. |
|
(q) |
Income tax effect is calculated by multiplying the pre-tax amount by the estimated income tax rates that are expected to apply. |
|
(r) |
Other income tax items represent the adjustment made to income tax expense to reflect a statutory tax rate estimated to be 25.5% in 2018 and 38.5% in 2017. |
|
(s) |
Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period. |
Appendix C-2 and Appendix C-3 provides comparative summaries of Utility operating and financial measures.
|
Appendix C-2: Utility Operating and Financial Measures | ||||
|
First Quarter 2018 vs. 2017 | ||||
|
First Quarter | ||||
|
2018 |
2017 |
% Change |
% Weather | |
|
GWh billed |
||||
|
Residential |
9,287 |
7,637 |
21.6 |
4.1 |
|
Commercial |
6,732 |
6,439 |
4.6 |
2.4 |
|
Governmental |
608 |
593 |
2.5 |
2.2 |
|
Industrial |
11,405 |
11,117 |
2.6 |
2.6 |
|
Total retail sales |
28,032 |
25,786 |
8.7 |
3.0 |
|
Wholesale |
3,244 |
3,022 |
7.3 |
|
|
Total sales |
31,276 |
28,808 |
8.6 |
|
|
Number of electric retail customers |
||||
|
Residential |
2,476,056 |
2,469,879 |
0.3 |
|
|
Commercial |
356,034 |
355,138 |
0.3 |
|
|
Governmental |
17,945 |
18,229 |
(1.6) |
|
|
Industrial |
40,856 |
41,043 |
(0.5) |
|
|
Total retail customers |
2,890,891 |
2,884,289 |
0.2 |
|
|
As-reported net revenue ($ in millions) |
1,460 |
1,404 |
4.0 |
|
|
Non-fuel O&M per MWh |
$20.09 |
$20.61 |
(2.5) |
|
|
Appendix C-3: Utility Operating Measures | ||||
|
Twelve Months Ended March 31, 2018 vs. 2017 | ||||
|
Twelve Months Ended March 31 | ||||
|
2018 |
2017 |
% Change |
% Weather Adjusted (t) | |
|
GWh billed |
||||
|
Residential |
35,484 |
34,612 |
2.5 |
3.0 |
|
Commercial |
29,039 |
29,125 |
(0.3) |
1.8 |
|
Governmental |
2,525 |
2,540 |
(0.6) |
0.1 |
|
Industrial |
48,057 |
45,801 |
4.9 |
4.9 |
|
Total retail sales |
115,105 |
112,078 |
2.7 |
3.4 |
|
Calculations may differ due to rounding |
|
Certain prior year data has been reclassified to conform with current year presentation |
|
(t) |
The effects of weather were estimated using heating degree days and cooling degree days for the billing cycles from certain locations within each jurisdiction and comparing to "normal" weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change. |
D: EWC Financial and Operating Measures
Appendix D-1 provides a comparative summary of EWC operational adjusted EBITDA (non-GAAP).
|
Appendix D-1: EWC Operational Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures | |||
|
First Quarter 2018 vs. 2017 | |||
|
($ in millions) |
First Quarter | ||
|
2018 |
2017 |
Change | |
|
Net income (loss) |
(18) |
(27) |
9 |
|
Add back: interest expense |
8 |
6 |
2 |
|
Add back: income taxes |
(1) |
(78) |
77 |
|
Add back: depreciation and amortization |
38 |
53 |
(15) |
|
Subtract: interest and investment income |
(1) |
43 |
(44) |
|
Add back: decommissioning expense |
58 |
75 |
(17) |
|
Adjusted EBITDA (non-GAAP) |
86 |
(15) |
101 |
|
Add back pre-tax special items for: |
|||
|
Items associated with decisions to close or sell EWC nuclear plants |
99 |
231 |
(132) |
|
Gain on the sale of FitzPatrick |
- |
(16) |
16 |
|
Operational adjusted EBITDA (non-GAAP) |
185 |
200 |
(15) |
|
Calculations may differ due to rounding |
Appendix D-2 provides a comparative summary of EWC operating and financial measures.
|
Appendix D-2: EWC Operational and Financial Measures | |||
|
First Quarter 2018 vs. 2017 (See Appendix G for reconciliation of GAAP to non-GAAP measures) | |||
|
First Quarter | |||
|
2018 |
2017 |
% Change | |
|
Owned capacity (MW) (u) |
3,962 |
4,800 |
(17.5) |
|
GWh billed |
7,885 |
8,363 |
(5.7) |
|
As-reported net revenue ($ in millions) |
382 |
494 |
(22.7) |
|
Operational net revenue (non-GAAP) ($ in millions) |
382 |
404 |
(5.4) |
|
EWC Nuclear Fleet |
|||
|
Capacity factor |
83% |
80% |
3.7 |
|
GWh billed |
6,408 |
7,835 |
(18.2) |
|
Production cost per MWh |
$18.75 |
$16.36 |
14.6 |
|
Average energy/capacity revenue per MWh (v) |
$56.96 |
$55.15 |
3.3 |
|
As-reported net revenue ($ in millions) |
379 |
491 |
(22.9) |
|
Operational net revenue ($ in millions) |
379 |
401 |
(5.6) |
|
Refueling outage days |
|||
|
FitzPatrick |
- |
42 |
|
|
Indian Point 2 |
13 |
- |
|
|
Indian Point 3 |
- |
19 |
|
|
Calculations may differ due to rounding |
|
(u) |
FitzPatrick (838 MW) was sold on 3/31/17. |
|
(v) |
Average energy and capacity revenue per MWh excluding FitzPatrick was $55.27 in first quarter 2017. |
See appendix in the webcast slide presentation for EWC hedging and price disclosures.
E: Consolidated Financial Measures
Appendix E provides comparative financial measures. Financial measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP financial measures.
|
Appendix E: GAAP and Non-GAAP Financial Measures | |||
|
First Quarter 2018 vs. 2017 (See Appendix G for reconciliation of GAAP to non-GAAP financial measures) | |||
|
For 12 months ending March 31 |
2018 |
2017 |
Change |
|
GAAP Measures |
|||
|
ROIC – as-reported |
3.9% |
(1.3%) |
5.2% |
|
ROE – as-reported |
5.8% |
(8.4%) |
14.2% |
|
Book value per share |
$44.11 |
$44.90 |
($0.79) |
|
End of period shares outstanding (in millions) |
180.8 |
179.4 |
1.4 |
|
Non-GAAP Measures |
|||
|
ROIC – operational |
7.4% |
6.7% |
0.7% |
|
ROE – operational |
16.6% |
13.9% |
2.7% |
|
As of March 31 ($ in millions) |
2018 |
2017 |
Change |
|
GAAP Measures |
|||
|
Cash and cash equivalents |
1,206 |
1,083 |
123 |
|
Revolver capacity |
3,010 |
4,185 |
(1,175) |
|
Commercial paper |
655 |
1,088 |
(433) |
|
Total debt |
17,680 |
15,611 |
2,069 |
|
Securitization debt |
520 |
637 |
(117) |
|
Debt to capital |
68.4% |
65.4% |
3.0% |
|
Off-balance sheet liabilities: |
|||
|
Debt of joint ventures – Entergy's share |
66 |
71 |
(5) |
|
Leases – Entergy's share |
429 |
397 |
32 |
|
Power purchase agreements accounted for as leases |
136 |
166 |
(30) |
|
Total off-balance sheet liabilities |
631 |
634 |
(3) |
|
Non-GAAP Financial Measures |
|||
|
Debt to capital, excluding securitization debt |
67.7% |
64.4% |
3.3% |
|
Gross liquidity |
4,216 |
5,268 |
(1,052) |
|
Net debt to net capital, excluding securitization debt |
66.1% |
62.7% |
3.4% |
|
Parent debt to total debt, excluding securitization debt |
21.2% |
21.1% |
0.1% |
|
Debt to operational adjusted EBITDA, excluding securitization debt |
5.0x |
4.4x |
0.6x |
|
Operational FFO to debt, excluding securitization debt |
15.4% |
17.3% |
(1.9%) |
F: Definitions and Abbreviations and Acronyms
Appendix F-1 provides definitions of certain operating measures, as well as GAAP and non-GAAP financial measures. Non-GAAP financial measures remove the effects of financial events that are not routine from commonly used financial measures.
|
Appendix F-1: Definitions | |
|
Utility Operating and Financial Measures | |
|
GWh billed |
Total number of GWh billed to retail and wholesale customers |
|
Net revenue |
Operating revenues less fuel, fuel related expenses and gas purchased for resale; purchased power and other regulatory charges (credits) – net |
|
Non-fuel O&M |
Operation and maintenance expenses excluding fuel, fuel-related expenses and gas purchased for resale and purchased power |
|
Non-fuel O&M per MWh |
Non-fuel O&M per MWh of billed sales |
|
Number of retail customers |
Number of customers at the end of the prior year |
|
EWC Operating and Financial Measures | |
|
Average revenue under contract per kW-month (applies to capacity contracts only) |
Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and/or auction awards |
|
Average revenue per MWh on contracted volumes |
Revenue on a per unit basis at which generation output reflected in contracts is expected to be sold to third parties (including offsetting positions) at the minimum contract prices and at forward market prices at a point in time, given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market PPA for Palisades; revenue will fluctuate due to factors including market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at the time of option expiration, costs to convert firm LD to unit-contingent and other risk management costs |
|
Bundled capacity and energy contracts |
A contract for the sale of installed capacity and related energy, priced per MWh sold |
|
Capacity contracts |
A contract for the sale of the installed capacity product in regional markets managed by ISO New England, NYISO and MISO |
|
Capacity factor |
Normalized percentage of the period that the nuclear plants generate power |
|
Expected sold and market total revenue per MWh |
Total energy and capacity revenue on a per unit basis at which total planned generation output and capacity is expected to be sold given contract terms and market prices at a point in time, including estimates for market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at time of option expiration, costs to convert Firm LD to unit-contingent and other risk management costs, divided by total planned MWh of generation, excluding the revenue associated with the amortization of the Palisades below-market PPA |
|
Firm LD |
Transaction that requires receipt or delivery of energy at a specified delivery point (usually at a market hub not associated with a specific asset) or settles financially on notional quantities; if a party fails to deliver or receive energy, defaulting party must compensate the other party as specified in the contract, a portion of which may be capped through the use of risk management products |
|
Appendix F-1: Definitions | |
|
EWC Operating and Financial Measures (continued) | |
|
GWh billed |
Total number of GWh billed to customers and financially-settled instruments |
|
Net revenue |
Operating revenues less fuel, fuel-related expenses and purchased power |
|
Offsetting positions |
Transactions for the purchase of energy, generally to offset a Firm LD transaction |
|
Owned capacity (MW) |
Installed capacity owned by EWC |
|
Percent of capacity sold forward |
Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions |
|
Percent of planned generation under contract |
Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts or options that mitigate price uncertainty that may or may not require regulatory approval or approval of transmission rights or other conditions precedent; positions that are no longer classified as hedges are netted in the planned generation under contract |
|
Planned net MW in operation |
Amount of installed capacity to generate power and/or sell capacity, assuming intent to shutdown Pilgrim (May 31, 2019), Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022) |
|
Planned TWh of generation |
Amount of output expected to be generated by EWC resources considering plant operating characteristics and outage schedules, assuming intent to shutdown Pilgrim (May 31, 2019), Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022) |
|
Production cost per MWh |
Fuel and non-fuel O&M expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation), excluding special items |
|
Refueling outage days |
Number of days lost for a scheduled refueling and maintenance outage during the period |
|
Unit-contingent |
Transaction under which power is supplied from a specific generation asset; if the asset is in operational outage, seller is generally not liable to buyer for any damages, unless the contract specifies certain conditions such as an availability guarantee |
|
Financial Measures – GAAP | |
|
Book value per share |
End of period common equity divided by end of period shares outstanding |
|
Debt of joint ventures – Entergy's share |
Entergy's share of debt issued by business joint ventures at EWC |
|
Debt to capital ratio |
Total debt divided by total capitalization |
|
Leases – Entergy's share |
Operating leases held by subsidiaries capitalized at implicit interest rate |
|
Revolver capacity |
Amount of undrawn capacity remaining on corporate and subsidiary revolvers, including Entergy Nuclear Vermont Yankee |
|
ROE – as-reported |
12-months rolling net income attributable to Entergy Corporation divided by average common equity |
|
ROIC – as-reported |
12-months rolling net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital |
|
Securitization debt |
Debt associated with securitization bonds issued to recover storm costs from hurricanes Rita, Ike and Gustav at E-TX and Hurricane Isaac at E-NO; the 2009 ice storm at E-AR and investment recovery of costs associated with the cancelled Little Gypsy repowering project at E-LA |
|
Total debt |
Sum of short-term and long-term debt, notes payable and commercial paper and capital leases on the balance sheet |
|
Appendix F-1: Definitions | |
|
Financial Measures - Non-GAAP | |
|
Adjusted EBITDA |
Earnings before interest, depreciation and amortization and income taxes and excluding decommissioning expense; for Entergy consolidated, also excludes AFUDC-equity funds and subtracts securitization proceeds |
|
Adjusted EPS |
As-reported EPS excluding special items and normalizing weather and income taxes |
|
Debt to capital ratio, excluding securitization debt |
Total debt divided by total capitalization, excluding securitization debt |
|
Debt to operational adjusted EBITDA ratio, excluding securitization debt |
End of period total debt excluding securitization debt divided by 12-months rolling operational adjusted EBITDA |
|
FFO |
OCF less AFUDC-borrowed funds, working capital items in OCF (receivables, fuel inventory, accounts payable, prepaid taxes and taxes accrued, interest accrued and other working capital accounts) and securitization regulatory charges |
|
Gross liquidity |
Sum of cash and revolver capacity |
|
Net debt to net capital ratio, excluding securitization debt |
Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt |
|
Operational adjusted EBITDA |
Adjusted EBITDA excluding effects of special items |
|
Operational EPS |
As-reported EPS excluding special items |
|
Operational FFO |
FFO excluding the effects of special items |
|
Operational FFO to debt ratio, excluding securitization debt |
12-months rolling operational FFO as a percentage of end of period total debt excluding securitization debt |
|
Parent debt to total debt ratio, excluding securitization debt |
End of period Entergy Corporation debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of consolidated total debt, excluding securitization debt |
|
ROE – operational |
12-months rolling operational net income attributable to Entergy Corporation divided by average common equity |
|
ROIC – operational |
12-months rolling operational net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital |
|
Utility, Parent & Other |
Combines the Utility segment with Parent & Other, which is all of Entergy excluding the EWC segment |
Appendix F-2 explains abbreviations and acronyms used in the quarterly earnings materials.
|
Appendix F-2: Abbreviations and Acronyms | |||
|
ADIT |
Accumulated deferred income taxes |
ISES 2 |
Unit 2 of Independence Steam Electric Station (coal) |
|
AFUDC - borrowed funds |
Allowance for borrowed funds used during construction |
LPSC |
Louisiana Public Service Commission |
|
AFUDC - equity funds |
Allowance for equity funds used during construction |
LTM |
Last twelve months |
|
ALJ |
Administrative Law Judge |
MISO |
Midcontinent Independent System Operator, Inc. |
|
AMI |
Advanced metering infrastructure |
Moody's |
Moody's Investor Service |
|
ANO |
Units 1 and 2 of Arkansas Nuclear One owned by E-AR (nuclear) |
MPSC |
Mississippi Public Service Commission |
|
APSC |
Arkansas Public Service Commission |
MTEP |
MISO Transmission Expansion Planning |
|
ARO |
Asset retirement obligation |
Nelson 6 |
Unit 6 of Roy S. Nelson plant (coal) |
|
ASU |
Accounting Standards Update issued by the Financial Accounting Standards Board |
NEPOOL |
New England Power Pool |
|
bps |
Basis points |
Ninemile 6 |
Ninemile Point Unit 6 (CCGT) |
|
CCGT |
Combined cycle gas turbine |
Non-fuel O&M |
Non-fuel operation and maintenance expense |
|
CCNO |
Council of the City of New Orleans, Louisiana |
NDT |
Nuclear decommissioning trust |
|
COD |
Commercial operation date |
NOPS |
New Orleans Power Station (reciprocating internal combustion engine/natural gas) |
|
CT |
Simple cycle combustion turbine |
NRC |
Nuclear Regulatory Commission |
|
DCRF |
Distribution cost recovery factor |
NYISO |
New York Independent System Operator, Inc. |
|
DOE |
U.S. Department of Energy |
NYPA |
New York Power Authority |
|
E-AR |
Entergy Arkansas, Inc. |
NYSE |
New York Stock Exchange |
|
E-LA |
Entergy Louisiana, LLC |
O&M |
Operation and maintenance expense |
|
E-MS |
Entergy Mississippi, Inc. |
OCF |
Net cash flow provided by operating activities |
|
E-NO |
Entergy New Orleans, LLC |
OpCo |
Operating Company |
|
E-TX |
Entergy Texas, Inc. |
OPEB |
Other post-employment benefits |
|
EBITDA |
Earnings before interest, income taxes, depreciation and amortization |
Palisades |
Palisades Power Plant (nuclear) |
|
ENVY |
Entergy Nuclear Vermont Yankee |
Pilgrim |
Pilgrim Nuclear Power Station (nuclear) |
|
ESI |
Entergy Services, Inc. |
PPA |
Power purchase agreement or purchased power agreement |
|
EPS |
Earnings per share |
PUCT |
Public Utility Commission of Texas |
|
ETR |
Entergy Corporation |
RFP |
Request for proposals |
|
EWC |
Entergy Wholesale Commodities |
ROE |
Return on equity |
|
FERC |
Federal Energy Regulatory Commission |
ROIC |
Return on invested capital |
|
FFO |
Funds from operations |
RPCE |
Rough production cost equalization |
|
Firm LD |
Firm liquidated damages |
RS Cogen |
RS Cogen facility (CCGT cogeneration) |
|
FitzPatrick |
James A. FitzPatrick Nuclear Power Plant (nuclear, sold March 31, 2017) |
RSP |
Rate Stabilization Plan (E-LA Gas) |
|
FRP |
Formula rate plan |
S&P |
Standard & Poor's |
|
GAAP |
U.S. generally accepted accounting principles |
SEC |
U.S. Securities and Exchange Commission |
|
Grand Gulf |
Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by SERI |
SERI |
System Energy Resources, Inc. |
|
Indian Point 1 or IP1 |
Indian Point Energy Center Unit 1 (nuclear) (shut down in 1974) |
TCRF |
Transmission cost recovery factor |
|
Indian Point 2 or IP2 |
Indian Point Energy Center Unit 2 (nuclear) |
Union |
Union Power Station (CCGT) |
|
Indian Point 3 or IP3 |
Indian Point Energy Center Unit 3 (nuclear) |
UP&O |
Utility, Parent & Other |
|
IPEC |
Indian Point Energy Center (nuclear) |
VPUC |
Vermont Public Utility Commission |
|
ISO |
Independent system operator |
VY or Vermont Yankee |
Vermont Yankee Nuclear Power Station (nuclear) |
|
WACC |
Weighted-average cost of capital | ||
|
WPEC |
Washington Parish Energy Center (CT/natural gas) | ||
G: GAAP to Non-GAAP Reconciliations
Appendix G-1, Appendix G-2 and Appendix G-3 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure.
|
Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures - EWC Operational Net Revenue | |||||||
|
($ in millions except where noted) |
First Quarter | ||||||
|
2018 |
2017 | ||||||
|
EWC |
|||||||
|
As-reported net revenue |
(A) |
382 |
494 | ||||
|
Special items included in net revenue: |
|||||||
|
EWC Nuclear costs associated with decisions to close or sell plants |
- |
91 | |||||
|
Total special items included in net revenue |
(B) |
- |
91 | ||||
|
Operational net revenue |
(A-B) |
382 |
404 | ||||
|
EWC Nuclear |
|||||||
|
As-reported EWC Nuclear net revenue |
(C) |
379 |
491 | ||||
|
Special items included in EWC Nuclear net revenue: |
|||||||
|
EWC Nuclear costs associated with decisions to close or sell plants |
- |
91 | |||||
|
Total special items included in EWC Nuclear net revenue |
(D) |
- |
91 | ||||
|
Operational EWC Nuclear net revenue |
(C-D) |
379 |
401 | ||||
|
Calculations may differ due to rounding |
|
Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures - ROIC, ROE | |||
|
($ in millions except where noted) |
First Quarter | ||
|
2018 |
2017 | ||
|
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months |
(A) |
462 |
(731) |
|
Preferred dividends |
14 |
17 | |
|
Tax effected interest expense |
499 |
409 | |
|
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months adjusted for preferred dividends and tax effected interest expense |
(B) |
975 |
(305) |
|
Special items in prior quarters |
(793) |
(1,842) | |
|
Items associated with decisions to close or sell EWC nuclear plants |
(78) |
(150) | |
|
Gain on the sale of FitzPatrick |
- |
11 | |
|
Income tax benefit resulting from FitzPatrick transaction |
- |
45 | |
|
Total special items, rolling 12 months |
(C) |
(871) |
(1,937) |
|
Operational earnings, rolling 12 months adjusted for preferred dividends and tax effected interest expense (non-GAAP) |
(B-C) |
1,846 |
1,632 |
|
Operational earnings, rolling 12 months (non-GAAP) |
(A-C) |
1,333 |
1,206 |
|
Average invested capital |
(D) |
24,862 |
24,321 |
|
Average common equity |
(E) |
8,016 |
8,709 |
|
ROIC – as-reported |
(B/D) |
3.9% |
(1.3%) |
|
ROIC – operational |
[(B-C)/D] |
7.4% |
6.7% |
|
ROE – as-reported |
(A/E) |
5.8% |
(8.4%) |
|
ROE – operational |
[(A-C)/E] |
16.6% |
13.9% |
|
Calculations may differ due to rounding |
|
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures – Debt Ratios excluding Securitization Debt; Gross Liquidity; Debt to Operational Adjusted EBITDA, excluding Securitization Debt; Operational FFO to Debt Ratio, excluding Securitization Debt | |||
|
($ in millions except where noted) |
First Quarter | ||
|
2018 |
2017 | ||
|
Total debt |
(A) |
17,680 |
15,611 |
|
Less securitization debt |
(B) |
520 |
637 |
|
Total debt, excluding securitization debt |
(C) |
17,160 |
14,974 |
|
Less cash and cash equivalents |
(D) |
1,206 |
1,083 |
|
Net debt, excluding securitization debt |
(E) |
15,954 |
13,891 |
|
Total capitalization |
(F) |
25,853 |
23,871 |
|
Less securitization debt |
(B) |
520 |
637 |
|
Total capitalization, excluding securitization debt |
(G) |
25,333 |
23,234 |
|
Less cash and cash equivalents |
(D) |
1,206 |
1,083 |
|
Net capital, excluding securitization debt |
(H) |
24,127 |
22,151 |
|
Debt to capital |
(A/F) |
68.4% |
65.4% |
|
Debt to capital, excluding securitization debt |
(C/G) |
67.7% |
64.4% |
|
Net debt to net capital, excluding securitization debt |
(E/H) |
66.1% |
62.7% |
|
Revolver capacity |
(I) |
3,010 |
4,185 |
|
Gross liquidity |
(D+I) |
4,216 |
5,268 |
|
Entergy Corporation notes: |
|||
|
Due September 2020 |
450 |
450 | |
|
Due July 2022 |
650 |
650 | |
|
Due September 2026 |
750 |
750 | |
|
Total parent long-term debt |
(J) |
1,850 |
1,850 |
|
Revolver draw |
(K) |
1,125 |
225 |
|
Commercial paper |
(L) |
655 |
1,088 |
|
Total parent debt |
(J)+(K)+(L) |
3,630 |
3,163 |
|
Parent debt to total debt, excluding securitization debt |
[((J)+(K)+(L))/(C)] |
21.2% |
21.1% |
|
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures – Debt Ratios excluding Securitization Debt; Gross Liquidity; Debt to Operational Adjusted EBITDA, excluding Securitization Debt; Operational FFO to Debt Ratio, excluding Securitization Debt (continued) | |||
|
($ in millions except where noted) |
First Quarter | ||
|
2018 |
2017 | ||
|
Total debt |
(A) |
17,680 |
15,611 |
|
Less securitization debt |
(B) |
520 |
637 |
|
Total debt, excluding securitization debt |
(C) |
17,160 |
14,974 |
|
As-reported consolidated net income (loss), rolling 12 months |
476 |
(714) | |
|
Add back (rolling 12 months): |
|||
|
Interest expense |
670 |
664 | |
|
Income taxes |
578 |
(949) | |
|
Depreciation and amortization |
1,390 |
1,360 | |
|
Regulatory charges (credits) |
(4) |
8 | |
|
Decommissioning expense |
386 |
373 | |
|
Subtract (rolling 12 months): |
|||
|
Securitization proceeds |
150 |
143 | |
|
Interest and investment income |
249 |
169 | |
|
AFUDC-equity funds |
104 |
68 | |
|
Adjusted EBITDA, rolling 12 months (non-GAAP) |
(D) |
2,993 |
362 |
|
Add back special items (rolling 12 months pre-tax): |
|||
|
Items associated with decisions to close or sell EWC nuclear plants |
511 |
3,121 | |
|
Tax reform |
(56) |
- | |
|
DOE litigation awards |
- |
(34) | |
|
Gain on the sale of FitzPatrick |
- |
(16) | |
|
Operational adjusted EBITDA, rolling 12 months (non-GAAP) |
(E) |
3,448 |
3,433 |
|
Debt to operational adjusted EBITDA, excluding securitization debt |
(C)/(E) |
5.0x |
4.4x |
|
Net cash flow provided by operating activities, rolling 12 months |
(F) |
2,652 |
2,995 |
|
AFUDC-borrowed funds, rolling 12 months |
(G) |
(49) |
(34) |
|
Working capital items in net cash flow provided by operating activities (rolling 12 months): |
|||
|
Receivables |
(123) |
(17) | |
|
Fuel inventory |
(26) |
54 | |
|
Accounts payable |
81 |
194 | |
|
Prepaid taxes and taxes accrued |
36 |
(72) | |
|
Interest accrued |
5 |
6 | |
|
Other working capital accounts |
(25) |
119 | |
|
Securitization regulatory charges |
121 |
114 | |
|
Total |
(H) |
69 |
398 |
|
FFO, rolling 12 months |
(F)+(G)-(H) |
2,534 |
2,563 |
|
Add back special items (rolling 12 months pre-tax): |
|||
|
Items associated with decisions to close or sell EWC nuclear plants |
108 |
24 | |
|
Operational FFO, rolling 12 months |
(I) |
2,642 |
2,587 |
|
Operational FFO to debt, excluding securitization debt |
(I)/(C) |
15.4% |
17.3% |
|
Calculations may differ due to rounding |
View original content with multimedia:http://www.prnewswire.com/news-releases/entergy-reports-first-quarter-earnings-300636195.html
SOURCE Entergy Corporation
Article Date
4/25/2018Entergy Announces First Quarter Earnings Conference Call
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
NEW ORLEANS, April 18, 2018 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) will report first quarter earnings results before market open on Wednesday, April 25, 2018, and host a teleconference at 10:00 a.m. CT that day to discuss the earnings announcement and the company's financial performance. The teleconference may be accessed by dialing 844-309-6569, conference ID 9178845, no more than 15 minutes prior to the start of the call or by visiting Entergy's website at entergy.com. From time to time, Entergy posts new and/or revised materials on its website and on social media, and anticipates doing so in connection with this event. The presentation slides will be available on Entergy's website and the Entergy Investor Relations mobile web app at iretr.com before market open on the day of the call. A replay of the teleconference will be available until May 2, 2018, by dialing 855-859-2056, confirmation ID 9178845.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and more than 13,000 employees.
Additional investor information can be accessed at entergy.com/investor_relations
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SOURCE Entergy Corporation
Article Date
4/18/20184/11/2018 - Entergy Declares Dividend
Entergy Declares Dividend
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, April 11, 2018 /PRNewswire/ -- The Board of Directors of Entergy Corporation (NYSE: ETR) has declared a quarterly dividend of $0.89 per common share. The payment date is June 1, 2018, to stockholders of record on May 10, 2018.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $10.8 billion and nearly 13,000 employees.
Online address: Entergy.com
Twitter: @Entergy
Facebook: www.facebook.com/entergy
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SOURCE Entergy Corporation
Article Date
4/11/2018Entergy Corporation Releases 2017 Integrated Report
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
NEW ORLEANS, March 29, 2018 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) released its 2017 Integrated Report, Utility Reimagined, online at integratedreport.entergy.com. The report provides an overview of the company's financial, operational, environmental and social performance in 2017.
"Our stakeholders are bound by one common expectation: sustainable value," said Leo Denault, Entergy chairman and chief executive officer. "We have taken steps to reduce risk by completing our plan to exit the merchant business and we have strengthened our core utility business. Entergy is well-positioned to take advantage of opportunities as they arise and leverage new technologies to transform how we deliver sustainable value to our stakeholders tomorrow."
The company is investing in new technologies and capabilities such as advanced metering that will give customers more control over the electricity they use. At the same time, Entergy is transforming its generation portfolio, replacing aging infrastructure with new, efficient generation sources, which benefits customers and the environment. The company is also strengthening is transmission infrastructure to be more reliable and resilient.
Equally important is the company's focus on strategies to acquire, retain and develop employees while helping its communities thrive by supporting economic development and community improvement programs and partnerships.
Included in the report is Entergy's new industry reporting template, which aligns with the Edison Electric Institute's guide for sharing key performance indicators for stakeholders of electric utilities and supports Entergy's commitment to transparency and sustainability.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and more than 13,000 employees.
Entergy.com
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SOURCE Entergy Corporation
Article Date
3/29/2018Entergy, NorthStar Reach Settlement Agreement with State of Vermont and Other Parties on Terms for the Approval of the Sale of Vermont Yankee
Source: PR Newswire
VERNON, Vt., March 2, 2018 /PRNewswire/ -- Entergy Corp. affiliates (NYSE: ETR) and NorthStar Group Services Inc. announced today they have signed a settlement agreement and Memorandum of Understanding (MOU) with State of Vermont agencies and other interested parties on terms for approval of the proposed sale this year of Entergy Nuclear Vermont Yankee, the entity that owns the Vermont Yankee Nuclear Power Station located in Vernon, Vermont.
The agreement and MOU are significant milestones in the approval of the proposed transaction. If the transaction is approved by the Vermont Public Utility Commission (PUC), it will accelerate the decommissioning of Vermont Yankee by decades and facilitate the eventual economic redevelopment of the site.
The Vermont agencies signing the agreement, in whole or in part, are: the Department of Public Service (DPS), the Agency of Natural Resources (ANR), the Department of Health, and the Attorney General's Office. The following parties have also signed the agreement: the Town of Vernon Planning and Economic Development Commission, the Windham Regional Commission, the Abenaki Nation of Missisquoi and the Elnu Abenaki Tribe, and the New England Coalition on Nuclear Pollution (NEC). The parties have submitted an MOU to the PUC based on the settlement agreement that reflects: (1) increased financial assurances beyond those included in the original proposal filed by Entergy and NorthStar with the PUC in December 2016 and (2) the establishment of site restoration standards to which NorthStar will adhere as it completes the decommissioning of the site.
The Vermont PUC approval of the MOU and an order approving the proposed transaction are pre-conditions to closing of the proposed transaction between Entergy and NorthStar. The companies anticipate requesting that the PUC issue its decision by July 31, 2018. The proposed transaction is also subject to Nuclear Regulatory Commission (NRC) approval. As part of the settlement, the State of Vermont and NEC have agreed to submit a notice of anticipated withdrawal of their pending requests for hearing in the NRC proceeding. If all regulatory approvals are obtained, the companies anticipate that the transaction will close by December 31, 2018. Copies of the MOU and the settlement agreement can be accessed at www.vydecommissioning.com. Key provisions of the MOU and the settlement agreement include:
Financial Assurance
The original application reflected a number of forms of financial assurance in support of the decommissioning and restoration of the Vermont Yankee site. As part of the MOU and settlement agreement, NorthStar has agreed to provide additional financial assurance, as follows:
As part of the MOU and settlement agreement, Entergy has agreed to provide financial assurance in support of the transaction as follows:
The terms of the MOU and settlement agreement, including the financial assurance terms discussed above, are consistent with Entergy's previous disclosures on its Entergy Wholesale Commodities business cash flow. The company continues to see neutral to positive cash flow from its merchant business to its parent from 2017 to 2022.
Site Restoration Standards
The parties have agreed to detailed site restoration standards that are fully protective of the environment as well as fully protective of the health and safety of workers and the public. The standards to which NorthStar will adhere include the following key terms:
Under Entergy's original schedule, as outlined in its Post Shutdown Decommissioning Activities Report filed with the NRC in December 2014, Entergy expected to initiate decontamination and dismantlement of the Vermont Yankee site in 2068, with projected completion of both decommissioning and site restoration by 2075. Under the proposed transaction, NorthStar has committed to initiate decontamination and dismantlement by 2021 (and potentially as early as 2019) and to complete decommissioning and restoration of the Vermont Yankee site, with the exception of the ISFSI and other structures identified above, by 2030 (and potentially as early as 2026).
About Vermont Yankee, NorthStar and Entergy
The Vermont Yankee Nuclear Power Station, a single unit boiling water reactor, began commercial operation in 1972. Entergy purchased the plant in 2002 from the Vermont Yankee Nuclear Power Corp. It permanently ceased operations on December 29, 2014. At full power, Vermont Yankee supplied nearly one-third of all electricity consumed in Vermont. More information is available at www.entergy.com and www.vydecommissioning.com.
NorthStar, based in New York, is the world leader in facility decommissioning with turnkey capabilities to complete license termination and site restoration. Key partners include Orano (formerly AREVA), Burns & McDonnell and Waste Control Specialists (WCS). WCS is the nation's only licensed disposal facility for Class A, B and C low-level radioactive waste at its state of the art facility in Andrews County, Texas. NorthStar and WCS are portfolio companies of leading mid-market private equity firm JF Lehman & Company.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and more than 13,000 employees.
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, Entergy's plans and expectations with respect to the Vermont Yankee Nuclear Power Station and Entergy's merchant generation business, and other statements of Entergy's plans, beliefs or expectations included in this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy's most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and Entergy's other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory costs and risks, including any changes resulting from the nuclear crisis in Japan following its catastrophic earthquake and tsunami; (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 strategic transactions that Entergy or its subsidiaries may undertake, including the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental or energy policies; and (i) the effects of technological changes and changes in commodity markets, capital markets or economic conditions, during the periods covered by the forward-looking statements.
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SOURCE Entergy Corporation
Article Date
3/2/20183/1/2018 - Entergy Appoints John R. Burbank to Board
Entergy Appoints John R. Burbank to Board
Source: PR Newswire
NEW ORLEANS, March 1, 2018 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) announced today the appointment of John R. Burbank, president, corporate development and strategy at Nielsen Holdings plc, to its board of directors.
"John brings strong experience in developing and executing strategies for consumer-facing businesses and operations that are facing transformational change," said Leo Denault, Entergy Chairman and Chief Executive Officer. "His strengths in digital technology, customer data analytics and product development are uniquely suited to help us effectively address advancing technology and changing customer expectations in our industry."
This change will increase the size of Entergy's Board to 12 members.
Burbank, 54, is president, corporate development and strategy at Nielsen Holdings plc, a global information, data and measurement company with headquarters in Wilton, Connecticut. Prior to his current role, Burbank was president, strategic initiatives, for Nielsen. He also has served as CEO of Nielsen's Online division, where he led the company's global digital measurement business. He previously served as Chief Marketing Officer for AOL, and before that, he served as VP of Marketing at AT&T/Cingular. Burbank also previously held roles at Procter & Gamble Co. and the Chicago Tribune Co. He received B.A. and M.B.A. degrees from the University of Chicago.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and more than 13,000 employees.
Online address: Entergy.com
Twitter: @Entergy
Facebook: www.facebook.com/entergy
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SOURCE Entergy Corporation
Article Date
3/1/20182/23/2018 - Entergy Reports Fourth Quarter and Full Year Financial Results; Initiates 2018 Earnings Guidance
Entergy Reports Fourth Quarter and Full Year Financial Results; Initiates 2018 Earnings Guidance
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
NEW ORLEANS, Feb. 23, 2018 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported a fourth quarter 2017 loss per share of $(2.66) on an as-reported basis and earnings per share of 76 cents on an operational basis (non-GAAP), which excludes the effects of special items. For the full year, the company reported 2017 earnings per share of $2.28 on an as-reported basis and $7.20 on an operational basis. The as-reported results for the quarter and full year reflected the revaluation of net deferred tax assets as a result of tax reform, in addition to asset impairments and other expenses related to strategic decisions in the EWC business.
"2017 was another productive year with significant accomplishments for our company, and Utility, Parent & Other adjusted earnings exceeded our guidance range," said Entergy Chairman and Chief Executive Officer Leo Denault. "As we look ahead to the next three years, our success continues to be less dependent on strategic initiatives and more on our own operational execution."
Business highlights included the following:
|
Consolidated Earnings (GAAP and Non-GAAP Measures) | ||||||
|
Fourth Quarter and Year-to-Date 2017 vs. 2016 (See Appendix A for reconciliation of GAAP to non-GAAP earnings and description of special items) | ||||||
|
Fourth Quarter |
Year-to-Date | |||||
|
2017 |
2016 |
Change |
2017 |
2016 |
Change | |
|
(After-tax, $ in millions) |
||||||
|
As-reported earnings |
(479.1) |
(1,769.1) |
1,290.0 |
411.6 |
(583.6) |
995.2 |
|
Less special items |
(616.7) |
(1,824.6) |
1,207.9 |
(888.6) |
(1,855.3) |
966.7 |
|
Operational earnings (non-GAAP) |
137.6 |
55.5 |
82.1 |
1,300.2 |
1,271.7 |
28.5 |
|
Estimated weather in billed sales |
11.3 |
19.1 |
(7.8) |
(78.6) |
11.1 |
(89.7) |
|
(After-tax, per share in $) |
||||||
|
As-reported earnings |
(2.66) |
(9.88) |
7.22 |
2.28 |
(3.26) |
5.54 |
|
Less special items |
(3.42) |
(10.19) |
6.77 |
(4.92) |
(10.37) |
5.45 |
|
Operational earnings (non-GAAP) |
0.76 |
0.31 |
0.45 |
7.20 |
7.11 |
0.09 |
|
Estimated weather in billed sales |
0.06 |
0.11 |
(0.05) |
(0.44) |
0.06 |
(0.50) |
|
Calculations may differ due to rounding |
Consolidated Results
For fourth quarter 2017, the company reported a loss of $(479 million), or $(2.66) per share, on an as-reported basis and earnings of $138 million, or 76 cents per share, on an operational basis. This compared to fourth quarter 2016 loss of $(1,769 million), or $(9.88) per share, on an as-reported basis and earnings of $56 million, or 31 cents per share on an operational basis.
For the full year, the company reported 2017 earnings of $412 million, or $2.28 per share, on an as-reported basis and $1,300 million, or $7.20 per share, on an operational basis. This compared to a 2016 loss of $(584 million), or $(3.26) per share, on an as-reported basis and earnings of $1,272 million, or $7.11 per share, on an operational basis.
Summary discussions by business are below. Additional details, including information on OCF by business, are provided in Appendix A and a comprehensive analysis of quarterly and year-to-date variances is provided in Appendix B.
Utility, Parent & Other Results
For fourth quarter 2017, the Utility business reported a loss attributable to Entergy Corporation of $(47 million), or (26) cents per share, on an as-reported basis and earnings of $133 million, or 74 cents per share, on an operational basis. This compared to fourth quarter 2016 earnings of $120 million, or 67 cents per share, on an as-reported basis and an operational basis.
The fourth quarter 2017 as-reported loss reflected a decrease in net income of $180.7 million, which resulted from tax reform, for the write-down of certain tax assets that are not subject to the ratemaking process. This was considered a special item and excluded from operational earnings. The Utility also recorded a $3,665 million increase in its net regulatory liabilities associated with the reduction in certain of its net deferred tax liabilities. This revaluation did not impact earnings.
Net revenue increased quarter-over-quarter primarily as a result of favorable sales growth, including volume in the unbilled period, and the absence of regulatory charges recorded in fourth quarter 2016.
On a weather-adjusted basis, billed sales increased 3.2 percent, including 0.4 percent and 0.6 percent for residential and commercial billed sales, respectively. Industrial billed sales volume increased 7.0 percent with higher sales to both new and expansion customers as well as existing customers. The increase was driven largely by the chlor-alkali and primary metals segments. Sales to petroleum refining and industrial gases customers were also higher.
Utility non-fuel O&M increased quarter-over-quarter, driven by higher expenses for nuclear operations. In addition, other income was higher period-over-period due to AFUDC-equity funds and realized earnings on decommissioning trust funds.
For fourth quarter 2017, Parent & Other reported a loss of $(6 million), or (4) cents per share, on an as-reported basis and $(58 million), or (33) cents per share, on an operational basis. This compared to a fourth quarter 2016 loss of $(57 million), or (32) cents per share, on an as-reported basis and an operational basis.
As-reported results for 2017 reflected a reduction in income tax expense of $52 million primarily for the revaluation of certain consolidated deferred tax assets, which resulted from tax reform. This was considered a special item and excluded from operational earnings.
On a combined basis, the Utility, Parent & Other (non-GAAP) operational view contributed 41 cents to consolidated EPS in fourth quarter 2017, compared to 35 cents in fourth quarter 2016. On an adjusted basis, excluding special items and normalizing weather and income taxes, Utility, Parent & Other contributed 48 cents in fourth quarter 2017 to consolidated EPS, compared to 27 cents in fourth quarter 2016.
For full year 2017, the Utility business earned net income attributable to Entergy Corporation of $762 million, or $4.22 per share, on an as-reported basis, and earnings of $942 million, or $5.22 per share, on an operational basis. This compared to full year 2016 earnings of $1,134 million, or $6.34 per share, on both an as-reported basis and an operational basis. As-reported results for 2017 included an increase in income tax expense, which resulted from tax reform described above. This was considered a special item and excluded from operational earnings.
Utility net revenue increased due partly to new rate actions to recover investments that benefit customers. The effects of weather were negative year-over-year, but were partially offset by positive weather-adjusted sales growth. Operating expenses also increased. Results in 2016 included an income tax item for resolution of previous positions.
For 2017, Parent & Other reported a loss of $(176 million), or (97) cents per share, on an as-reported basis and $(228 million), or ($1.26) per share, on an operational basis. This compared to a 2016 loss of $(223 million), or ($1.24) per share, on an as-reported basis and an operational basis. As-reported results for 2017 included a decrease in income tax expense, which resulted from tax reform described above. This was considered a special item and excluded from operational earnings.
On a combined basis, the Utility, Parent & Other operational view contributed $3.96 to 2017 consolidated EPS, compared to $5.10 in 2016. On an adjusted basis, normalizing weather and income taxes, Utility, Parent & Other contributed $4.57 to 2017 consolidated EPS, compared to $4.38 in 2016.
Appendix C contains additional details on Utility financial and operating measures, including reconciliation for non-GAAP Utility, Parent & Other adjusted earnings and EPS.
Entergy Wholesale Commodities Results
For fourth quarter 2017, EWC recorded a loss attributable to Entergy Corporation of $(425 million), or $(2.36) per share, on an as-reported basis and earned $63 million, or 35 cents per share, on an operational basis. This compared to a fourth quarter 2016 loss of $(1,832 million), or $(10.23) per share, on an as-reported basis and a loss of $(8 million), or (4) cents per share, on an operational basis.
The fourth quarter 2017 as-reported loss reflected the write-down of net deferred tax assets totaling $(397 million) as a result of tax reform. Both periods also reflected impairments and other expenses recorded as a result of strategic decisions for the wholesale business. These items were considered special items and excluded from operational earnings.
The sale of FitzPatrick at the end of first quarter 2017 affected period-over-period variances for multiple line items. In fourth quarter 2016, the plant contributed a (15) cent loss to as-reported EPS and an (11) cent loss to operational EPS.
Excluding FitzPatrick, quarterly earnings increased. The most significant driver was higher realized earnings on decommissioning trust funds.
For the full year, in 2017 EWC recorded a loss attributable to Entergy Corporation of $(175 million), or (97) cents per share, on an as-reported basis and earnings of $586 million, or $3.24 per share, on an operational basis. For 2016, EWC reported a loss of $(1,495 million), or $(8.36) per share, on an as-reported basis and earnings of $360 million, or $2.01 per share, on an operational basis. As-reported losses reflected the write-down of net deferred tax assets in 2017 and impairments and other expenses recorded as a result of strategic decisions for the wholesale business in both periods. These items were considered special items and excluded from operational earnings.
The sale of FitzPatrick at the end of first quarter 2017 affected year-over-year variances for multiple line items. In 2017, the plant contributed EPS of 23 cents to as-reported results and a (4) cent loss to operational EPS. In 2016, the plant contributed a (21) cent loss to as-reported EPS and a (1) cents loss to operational EPS.
Excluding FitzPatrick, both years included income tax items which increased EPS $2.07 in second quarter 2017 and $1.33 in second quarter 2016. Results in both periods also reflected the impacts of previous impairments, specifically lower fuel and refueling outage expenses. In addition, 2017 reflected higher realized earnings on decommissioning trusts as well as higher decommissioning expense primarily from the establishment of decommissioning liabilities at Indian Point 3 in August 2016.
Appendix D contains additional details on EWC financial and operating measures, including the calculation of EWC operational adjusted EBITDA (non-GAAP).
Earnings Guidance
Entergy initiated its 2018 operational earnings guidance range of $6.25 to $6.85 per share and Utility, Parent & Other adjusted guidance range of $4.50 to $4.90 per share. This assumes balanced regulatory treatment for the recently enacted tax reform legislation. See webcast presentation slides for additional details.
The company has provided 2018 earnings guidance with regard to the non-GAAP measures of operational EPS and Utility, Parent & Other adjusted EPS. These measures exclude from the corresponding GAAP financial measures the effect of special items 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 special items that may occur during 2018. The only anticipated special items that the company can reasonably estimate at this time are those that relate to the decisions to sell or close the company's merchant nuclear plants; these estimated costs, which are excluded from the earnings guidance, are expected to decrease as-reported EPS by approximately $(2.35) per share in 2018.
Earnings Teleconference
A teleconference will be held at 9:00 a.m. Central Time on Friday, Feb. 23, 2018, to discuss Entergy's quarterly earnings announcement and the company's financial performance. The teleconference may be accessed by visiting Entergy's website at www.entergy.com or by dialing 844-309-6569, conference ID 3691689, no more than 15 minutes prior to the start of the call. The webcast slide presentation is also posted to Entergy's website concurrent with this release, which was issued before market open on the day of the call. A replay of the teleconference will be available on Entergy's website at www.entergy.com and by telephone. The telephone replay will be available through March 2, 2018, by dialing 855-859-2056, conference ID 3691689. This release and the webcast slide presentation are also available on the Entergy Investor Relations mobile web app at iretr.com.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and more than 13,000 employees.
Entergy Corporation's common stock is listed on the New York and Chicago stock exchanges 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 slide presentation. Both documents are available on Entergy's Investor Relations website at www.entergy.com/investor_relations and on Entergy's Investor Relations mobile web app at iretr.com.
For definitions of certain operating measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the earnings release materials, see Appendix F.
Non-GAAP Financial Measures
This news release contains non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes 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 release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Certain non-GAAP financial measures in this news release could differ from GAAP only in that the figure or ratio states or includes operational earnings. Operational earnings are not calculated in accordance with GAAP because they exclude the effect of "special items." Special items are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, and may include items such as impairments, gains or losses on asset sales, and other gains or losses occurring as a result of strategic decisions such as Entergy's recent decisions to shut down or sell its merchant nuclear plants. In addition, other financial measures including net income (or earnings), adjusted for preferred dividends and tax effected interest expense; net revenue; return on average invested capital; and return on average common equity are included on both an operational and as-reported basis. In each case, the metrics defined as "operational" would exclude the effect of special items as defined above.
Entergy reports the combination of the Utility segment with Parent & Other as Utility, Parent & Other, which is all of Entergy excluding the EWC segment, since management uses this combination in making decisions about its ongoing business in light of its decision to exit the merchant power business. Entergy also reports Utility, Parent & Other adjusted earnings, which combines the Utility segment with Parent & Other, excludes applicable special items and normalizes weather and income tax expense for the periods presented, because it believes that these financial metrics provide useful information to investors in evaluating the ongoing results of Entergy's businesses and assist investors in comparing Entergy's financial performance to the financial performance of other companies in the Utility sector. The methodologies employed to determine the normalized weather and income tax expense adjustments, each of which is further described in this release, involve estimations and the judgement of management.
In addition to reporting earnings per share on a consolidated basis, Entergy reports on a per share basis the earnings or loss of each of its segments, together with the combination of the Utility segment and Parent & Other. These per share measures represent the net income or loss of such segment or segments divided by the diluted average number of shares of common stock outstanding for the period. Entergy believes such per share measures provide useful information to investors in understanding the results of operations of those businesses and their contribution to Entergy's consolidated results of operations.
Other non-GAAP measures, including adjusted EBITDA; operational adjusted EBITDA; gross liquidity; debt to capital ratio, excluding securitization debt; net debt to net capital ratio, excluding securitization debt; parent debt to total debt ratio, excluding securitization debt; debt to operational adjusted EBITDA ratio, excluding securitization debt; and operational FFO to debt ratio, excluding securitization debt are measures Entergy uses internally for management and board discussions and cash budgeting and performance monitoring activities 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.
The non-GAAP financial measures and other reported adjusted items in this release are presented in addition to, and in conjunction with, results presented in accordance with GAAP. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. 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. Investors are strongly encouraged to review Entergy's consolidated financial statements and publicly filed reports in their entirety and to not rely on any single financial measure. 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, Entergy's 2018 earnings guidance; its current financial and operational outlook; impacts of tax reform legislation on earnings, cash flow, credit metrics, credit ratings, financing plans, assumed regulatory treatment, and valuation of deferred tax assets and liabilities; and other statements of Entergy's plans, beliefs or expectations included in this news release. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this news release and in Entergy's most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and Entergy's other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory costs and risks, including any changes resulting from the nuclear crisis in Japan following its catastrophic earthquake and tsunami; (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 strategic transactions that Entergy or its subsidiaries may undertake, including the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental or energy policies; and (i) the effects of technological changes and changes in commodity markets, capital markets or economic conditions, during the periods covered by the forward-looking statements.
Fourth Quarter 2017 Earnings Release Appendices and Financial Statements
Appendices
Appendices are presented in this section as follows:
A: Consolidated Results and Special Items
Appendix A-1 provides a comparative summary of consolidated earnings, including a reconciliation of as-reported earnings (GAAP) to operational earnings (non-GAAP).
|
Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures Fourth Quarter and Year-to-Date 2017 vs. 2016 (See Appendix A-3 and Appendix A-4 for details on special items, including income tax effects on adjustments) | ||||||
|
Fourth Quarter |
Year-to-Date | |||||
|
2017 |
2016 |
Change |
2017 |
2016 |
Change | |
|
(After-tax, $ in millions) |
||||||
|
Earnings |
||||||
|
Utility |
(47.4) |
120.4 |
(167.8) |
761.6 |
1,134.2 |
(372.6) |
|
Parent & Other |
(6.3) |
(57.1) |
50.8 |
(175.5) |
(222.5) |
47.1 |
|
EWC |
(425.3) |
(1,832.3) |
1,407.0 |
(174.5) |
(1,495.3) |
1,320.8 |
|
Consolidated |
(479.1) |
(1,769.1) |
1,290.0 |
411.6 |
(583.6) |
995.2 |
|
Less special items |
||||||
|
Utility |
(180.7) |
- |
(180.7) |
(180.7) |
- |
(180.7) |
|
Parent & Other |
52.1 |
- |
52.1 |
52.1 |
- |
52.1 |
|
EWC |
(488.1) |
(1,824.6) |
1,336.5 |
(760.0) |
(1,855.3) |
1,095.2 |
|
Consolidated |
(616.7) |
(1,824.6) |
1,207.9 |
(888.6) |
(1,855.3) |
966.7 |
|
Operational (non-GAAP) |
||||||
|
Utility |
133.2 |
120.4 |
12.8 |
942.3 |
1,134.2 |
(192.0) |
|
Parent & Other |
(58.5) |
(57.1) |
(1.3) |
(227.6) |
(222.5) |
(5.1) |
|
EWC |
62.8 |
(7.7) |
70.6 |
585.5 |
360.0 |
225.6 |
|
Consolidated |
137.6 |
55.5 |
82.1 |
1,300.2 |
1,271.7 |
28.5 |
|
Estimated weather in billed sales |
11.3 |
19.1 |
(7.8) |
(78.6) |
11.1 |
(89.7) |
|
Diluted average number of common shares outstanding (in millions) |
180.3 |
179.1 |
180.5 |
178.9 |
||
|
(After-tax, per share in $) (a) |
||||||
|
Earnings |
||||||
|
Utility |
(0.26) |
0.67 |
(0.93) |
4.22 |
6.34 |
(2.12) |
|
Parent & Other |
(0.04) |
(0.32) |
0.28 |
(0.97) |
(1.24) |
0.27 |
|
EWC |
(2.36) |
(10.23) |
7.87 |
(0.97) |
(8.36) |
7.39 |
|
Consolidated |
(2.66) |
(9.88) |
7.22 |
2.28 |
(3.26) |
5.54 |
|
Less special items |
||||||
|
Utility |
(1.00) |
- |
(1.00) |
(1.00) |
- |
(1.00) |
|
Parent & Other |
0.29 |
- |
0.29 |
0.29 |
- |
0.29 |
|
EWC |
(2.71) |
(10.19) |
7.48 |
(4.21) |
(10.37) |
6.16 |
|
Consolidated |
(3.42) |
(10.19) |
6.77 |
(4.92) |
(10.37) |
5.45 |
|
Operational (non-GAAP) |
||||||
|
Utility |
0.74 |
0.67 |
0.07 |
5.22 |
6.34 |
(1.12) |
|
Parent & Other |
(0.33) |
(0.32) |
(0.01) |
(1.26) |
(1.24) |
(0.02) |
|
EWC |
0.35 |
(0.04) |
0.39 |
3.24 |
2.01 |
1.23 |
|
Consolidated |
0.76 |
0.31 |
0.45 |
7.20 |
7.11 |
0.09 |
|
Estimated weather in billed sales |
0.06 |
0.11 |
(0.05) |
(0.44) |
0.06 |
(0.50) |
|
Calculations may differ due to rounding |
|
(a) |
Per share amounts are calculated by dividing the corresponding line item in the chart above by the diluted average number of common shares outstanding for the period. |
See Appendix B for detailed earnings variance analysis. See Appendix A-3 for special items by driver.
Appendix A-2 provides the components of OCF contributed by each business.
|
Appendix A-2: Consolidated Operating Cash Flow | ||||||
|
Fourth Quarter and Year-to-Date 2017 vs. 2016 | ||||||
|
($ in millions) | ||||||
|
Fourth Quarter |
Year-to-Date | |||||
|
2017 |
2016 |
Change |
2017 |
2016 |
Change | |
|
Utility |
934 |
783 |
151 |
2,939 |
2,861 |
78 |
|
Parent & Other |
(134) |
53 |
(187) |
(452) |
(108) |
(344) |
|
EWC |
111 |
(90) |
201 |
137 |
246 |
(109) |
|
Total OCF |
911 |
746 |
164 |
2,624 |
2,999 |
(375) |
|
Calculations may differ due to rounding |
OCF increased quarter-over-quarter, due largely to increased collections for fuel and purchased power cost recovery at the Utility.
OCF decreased year-over-year, driven in part by lower EWC operational net revenue and higher refueling outage costs at both EWC and the Utility. Other contributing factors included higher severance and retention payments at EWC, as well as lower DOE litigation awards for spent nuclear fuel storage costs and unfavorable weather at the Utility. Increased collections for fuel and purchased power cost recovery at the Utility and lower income tax payments partially offset the decrease.
For both the quarter and the full year, intercompany income tax payments contributed to the line of business variances.
Appendix A-3 and Appendix A-4 list special items by business. Amounts are shown on both a earnings and EPS. Special items are included in as-reported earnings consistent with GAAP, but are excluded from operational earnings. As a result, operational earnings is considered a non-GAAP measure.
|
Appendix A-3: Special Items by Driver (shown as positive/(negative) impact on earnings or EPS) | ||||||
|
Fourth Quarter and Year-to-Date 2017 vs. 2016 | ||||||
|
Fourth Quarter |
Year-to-Date | |||||
|
2017 |
2016 |
Change |
2017 |
2016 |
Change | |
|
(Pre-tax except for income tax effects and total, $ in millions) | ||||||
|
Utility |
||||||
|
Tax reform |
(180.7) |
- |
(180.7) |
(180.7) |
- |
(180.7) |
|
Total Utility |
(180.7) |
- |
(180.7) |
(180.7) |
- |
(180.7) |
|
Parent & Other |
||||||
|
Tax reform |
52.1 |
- |
52.1 |
52.1 |
- |
52.1 |
|
Total Parent & Other |
52.1 |
- |
52.1 |
52.1 |
- |
52.1 |
|
EWC |
||||||
|
Items associated with decisions to close or sell EWC nuclear plants |
(140.6) |
(2,828.5) |
2,687.9 |
(643.7) |
(2,909.8) |
2,266.2 |
|
Gain on the sale of FitzPatrick |
- |
- |
- |
16.3 |
- |
16.3 |
|
DOE litigation awards |
- |
- |
- |
- |
33.8 |
(33.8) |
|
Income tax effect on adjustments above (b) |
49.2 |
1,003.9 |
(954.7) |
219.6 |
1,020.7 |
(801.1) |
|
Income tax benefit resulting from FitzPatrick transaction |
- |
- |
- |
44.5 |
- |
44.5 |
|
Tax reform |
(396.7) |
- |
(396.7) |
(396.7) |
- |
(396.7) |
|
Total EWC |
(488.1) |
(1,824.6) |
1,336.5 |
(760.0) |
(1,855.3) |
1,095.2 |
|
Total special items |
(616.7) |
(1,824.6) |
1,207.9 |
(888.6) |
(1,855.3) |
966.7 |
|
(After-tax, per share in $) (c) |
||||||
|
Utility |
||||||
|
Tax reform |
(1.00) |
- |
(1.00) |
(1.00) |
- |
(1.00) |
|
Total Utility |
(1.00) |
- |
(1.00) |
(1.00) |
- |
(1.00) |
|
Parent & Other |
||||||
|
Tax reform |
0.29 |
- |
0.29 |
0.29 |
- |
0.29 |
|
Total Parent & Other |
0.29 |
- |
0.29 |
0.29 |
- |
0.29 |
|
EWC |
||||||
|
Items associated with decisions to close or sell EWC nuclear plants |
(0.51) |
(10.19) |
9.68 |
(2.32) |
(10.49) |
8.17 |
|
Gain on the sale of FitzPatrick |
- |
- |
- |
0.06 |
- |
0.06 |
|
DOE litigation awards |
- |
- |
- |
- |
0.12 |
(0.12) |
|
Income tax benefit resulting from FitzPatrick transaction |
- |
- |
- |
0.25 |
- |
0.25 |
|
Tax reform |
(2.20) |
- |
(2.20) |
(2.20) |
- |
(2.20) |
|
Total EWC |
(2.71) |
(10.19) |
7.48 |
(4.21) |
(10.37) |
6.16 |
|
Total special items |
(3.42) |
(10.19) |
6.77 |
(4.92) |
(10.37) |
5.45 |
|
Calculations may differ due to rounding | |
|
(b) |
Income tax effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply. |
|
(c) |
EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply to each adjustment and then dividing by the diluted average number of common shares outstanding for the period. |
|
Appendix A-4: Special Items by Income Statement Line Item (shown as positive/(negative) impact on earnings) | ||||||
|
Fourth Quarter and Year-to-Date 2017 vs. 2016 | ||||||
|
(Pre-tax except for Income taxes and total, $ in millions) | ||||||
|
Fourth Quarter |
Year-to-Date | |||||
|
2017 |
2016 |
Change |
2017 |
2016 |
Change | |
|
Utility |
||||||
|
Net revenue |
55.5 |
- |
55.5 |
55.5 |
- |
55.5 |
|
Income taxes (d) |
(236.2) |
- |
(236.2) |
(236.2) |
- |
(236.2) |
|
Total Utility |
(180.7) |
- |
(180.7) |
(180.7) |
- |
(180.7) |
|
Parent & Other |
||||||
|
Income taxes (d) |
52.1 |
- |
52.1 |
52.1 |
- |
52.1 |
|
Total Parent & Other |
52.1 |
- |
52.1 |
52.1 |
- |
52.1 |
|
EWC |
||||||
|
Net revenue |
- |
33.3 |
(33.3) |
91.0 |
40.7 |
50.3 |
|
Non-fuel O&M |
(22.3) |
(57.5) |
35.2 |
(201.3) |
(75.6) |
(125.7) |
|
Asset write-off and impairments |
(116.8) |
(2,802.5) |
2,685.7 |
(538.4) |
(2,835.6) |
2,297.3 |
|
Taxes other than income taxes |
(1.6) |
(1.8) |
0.2 |
(9.6) |
(5.5) |
(4.1) |
|
Gain on sale of assets |
- |
- |
- |
16.3 |
- |
16.3 |
|
Miscellaneous net (other income) |
- |
- |
- |
14.6 |
- |
14.6 |
|
Income taxes (d) |
(347.4) |
1,003.9 |
(1,351.3) |
(132.7) |
1,020.7 |
(1,153.4) |
|
Total EWC |
(488.1) |
(1,824.6) |
1,336.5 |
(760.0) |
(1,855.3) |
1,095.2 |
|
Total special items (after-tax) |
(616.7) |
(1,824.6) |
1,207.9 |
(888.6) |
(1,855.3) |
966.7 |
|
Calculations may differ due to rounding | |
|
(d) |
Income taxes include the income tax effect of the special items which were calculated using the estimated income tax rate that is expected to apply to each item, as well as tax adjustments as a result of tax reform. The year-to-date 2017 period also includes the income tax benefit which resulted from the FitzPatrick transaction. |
B: Earnings Variance Analysis
Appendix B-1 and Appendix B-2 provide details of current quarter and year-to-date 2017 versus 2016 as-reported and operational earnings variance analysis for Utility, Parent & Other and EWC.
|
Appendix B-1: As-Reported and Operational EPS Variance Analysis (e) | |||||||||||
|
Fourth Quarter 2017 vs. 2016 | |||||||||||
|
(After-tax, per share in $) | |||||||||||
|
Utility |
Parent & Other |
EWC |
Consolidated | ||||||||
|
As- |
Opera- |
As- |
Opera- |
As- Reported |
Opera- |
As- Reported |
Opera- tional | ||||
|
2016 earnings |
0.67 |
0.67 |
(0.32) |
(0.32) |
(10.23) |
(0.04) |
(9.88) |
0.31 | |||
|
Net revenue |
0.45 |
0.26 |
(f) |
- |
- |
(0.19) |
(0.07) |
(g) |
0.26 |
0.19 | |
|
Non-fuel O&M |
(0.11) |
(0.11) |
(h) |
(0.01) |
(0.01) |
0.32 |
0.19 |
(i) |
0.20 |
0.07 | |
|
Asset write-offs and impairments |
- |
- |
- |
- |
9.67 |
- |
(j) |
9.67 |
- | ||
|
Decommissioning expense |
0.01 |
0.01 |
- |
- |
(0.01) |
(0.01) |
- |
- | |||
|
Taxes other than income taxes |
(0.01) |
(0.01) |
- |
- |
- |
- |
(0.01) |
(0.01) | |||
|
Depreciation/amortization exp. |
(0.03) |
(0.03) |
- |
- |
0.03 |
0.03 |
- |
- | |||
|
Other income (deductions)–other |
0.06 |
0.06 |
(k) |
0.01 |
0.01 |
0.22 |
0.22 |
(l) |
0.29 |
0.29 | |
|
Interest exp. and other charges |
(0.02) |
(0.02) |
- |
- |
- |
- |
(0.02) |
(0.02) | |||
|
Income taxes – other |
(1.28) |
(0.09) |
(m) |
0.28 |
(0.01) |
(n) |
(2.17) |
0.03 |
(o) |
(3.17) |
(0.07) |
|
2017 earnings |
(0.26) |
0.74 |
(0.04) |
(0.33) |
(2.36) |
0.35 |
(2.66) |
0.76 | |||
|
Appendix B-2: As-Reported and Operational EPS Variance Analysis (e) | |||||||||||
|
Year-to-Date 2017 vs. 2016 | |||||||||||
|
(After-tax, per share in $) | |||||||||||
|
Utility |
Parent & Other |
EWC |
Consolidated | ||||||||
|
As- |
Opera- |
As- |
Opera- |
As- Reported |
Opera- |
As- Reported |
Opera- tional | ||||
|
2016 earnings |
6.34 |
6.34 |
(1.24) |
(1.24) |
(8.36) |
2.01 |
(3.26) |
7.11 | |||
|
Net revenue |
0.48 |
0.29 |
(f) |
- |
- |
(0.27) |
(0.45) |
(g) |
0.21 |
(0.16) | |
|
Non-fuel O&M |
(0.46) |
(0.46) |
(h) |
(0.02) |
(0.02) |
0.19 |
0.65 |
(i) |
(0.29) |
0.17 | |
|
Asset write-offs and impairments |
- |
- |
- |
- |
8.29 |
- |
(j) |
8.29 |
- | ||
|
Decommissioning expense |
0.01 |
0.01 |
- |
- |
(0.29) |
(0.29) |
(p) |
(0.28) |
(0.28) | ||
|
Taxes other than income taxes |
(0.14) |
(0.14) |
(q) |
- |
- |
0.06 |
0.07 |
(r) |
(0.08) |
(0.07) | |
|
Depreciation/amortization exp. |
(0.17) |
(0.17) |
(s) |
- |
- |
0.02 |
0.02 |
(0.15) |
(0.15) | ||
|
Gain on sale of assets |
- |
- |
- |
- |
0.06 |
- |
(t) |
0.06 |
- | ||
|
Other income (deductions)–other |
0.22 |
0.22 |
(k) |
0.01 |
0.01 |
0.48 |
0.43 |
(l) |
0.71 |
0.66 | |
|
Interest exp. and other charges |
0.03 |
0.03 |
(0.02) |
(0.02) |
- |
- |
0.01 |
0.01 | |||
|
Income taxes – other |
(2.08) |
(0.89) |
(m) |
0.29 |
- |
(n) |
(1.12) |
0.83 |
(o) |
(2.91) |
(0.06) |
|
Preferred dividend requirements |
0.03 |
0.03 |
- |
- |
- |
- |
0.03 |
0.03 | |||
|
Share effect |
(0.04) |
(0.04) |
0.01 |
0.01 |
(0.03) |
(0.03) |
(0.06) |
(0.06) | |||
|
2017 earnings |
4.22 |
5.22 |
(0.97) |
(1.26) |
(0.97) |
3.24 |
2.28 |
7.20 | |||
|
Calculations may differ due to rounding |
|
See appendix in the webcast slide presentation for additional details on EWC line item variances. | |
|
(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 period; income taxes – other represents income tax differences other than the tax effect of individual line items. |
|
(f) |
The current quarter and year-to-date increases reflected a regulatory credit of approximately $56 million as a result of tax reform (classified as a special item and offset in income tax expense). The increases reflected higher weather-adjusted sales volume, including volume in the unbilled period, as well as a regulatory charge recorded in fourth quarter 2016 for the Waterford 3 replacement steam generator settlement. Rate changes including E-AR's 2017 FRP and E-TX's TCRF, the second quarter 2016 regulatory charge arising from tax sharing agreements and the first quarter 2016 regulatory charge at E-AR for the FERC opportunity sales order contributed to the year-to-date variance. The increases in both periods were partially offset by the effects of weather. |
|
(g) |
The current quarter and year-to-date decreases reflected lower volume for nuclear assets, including the absence of FitzPatrick after it was sold in first quarter 2017, partially offset by lower fuel expense (due to impairments). The as-reported variances also reflected cost reimbursements from the buyer related to the FitzPatrick sale (classified as a special item and offset in non-fuel O&M). |
|
(h) |
The current quarter and year-to-date decreases reflected higher costs for nuclear operations, higher vegetation maintenance costs, and increased compensation and benefits expense. This was partly offset by lower fossil-fueled generation expense. The year-to-date decrease also reflected the first quarter 2016 $18 million (pre-tax) cost deferral at E-AR for previously-expensed costs related to post Fukushima and flood barrier compliance, partially offset by lower regulatory compliance spending at ANO. |
|
(i) |
The current quarter and year-to-date increases were due to the sale of FitzPatrick in first quarter 2017, as well as lower refueling outage expenses (due to impairments). This was partially offset by DOE litigation awards in fourth quarter 2016 in connection with spent nuclear fuel storage costs. Cost reimbursements from the buyer related to the FitzPatrick sale (classified as a special item and offset in net revenue) also contributed. The year-to-date as-reported increase was also partially offset by higher severance and retention expenses which resulted from decisions to close or sell EWC's nuclear plants and DOE litigation awards in second quarter 2016, a portion of the amount (12 cents) was considered a special item. |
|
(j) |
The as-reported current quarter and year-to-date increases reflected lower impairment charges for the EWC nuclear plants. Fourth quarter 2016 included significant impairment charges and related write-offs for Indian Point and Palisades. |
|
(k) |
The current quarter and year-to-date increases reflected higher AFUDC-equity funds and higher realized gains on decommissioning trust fund investments (substantially offset in net revenue). |
|
(l) |
The current quarter and year-to-date increases reflected higher realized gains on decommissioning trust fund investments. In the year-to-date period, 5 cents was from gains on the receipt of nuclear decommissioning trust funds from NYPA in January 2017 (classified as a special item and excluded from operational EPS). |
|
Utility As-Reported Net Revenue Variance Analysis 2017 vs. 2016 ($ EPS) | ||
|
Fourth Quarter |
Year-to-Date | |
|
Estimated weather in billed sales |
(0.05) |
(0.50) |
|
Volume/unbilled |
0.18 |
0.29 |
|
Retail electric price |
0.01 |
0.23 |
|
Regulatory sharing |
- |
0.06 |
|
Regulatory charges |
0.10 |
0.13 |
|
Regulatory credit* |
0.19 |
0.19 |
|
Other |
0.02 |
0.08 |
|
Total |
0.45 |
0.48 |
|
*Considered a special item and excluded from operational earnings. | ||
|
(m) |
The current quarter and year-to-date decreases reflected a write-down of certain tax assets totaling $180.7 million as a result of tax reform (classified as a special item). The year-to-date decrease also included the second quarter 2016 reversal of a portion of the provision for uncertain tax positions totaling $136 million for positions resolved in the 2010-2011 tax audit. This was partly offset by customer sharing recorded as a regulatory charge ($16 million pre-tax, included in net revenue). |
|
(n) |
The current quarter and year-to-date as-reported increases reflected a write-down of certain tax assets totaling $52.1 million as a result of tax reform (classified as a special item). |
|
(o) |
The current quarter as-reported decrease reflected reflected the write-down of certain tax assets totaling $396.7 million as a result of tax reform (classified as a special item). The year-to-date as-reported decrease also included a tax benefit which resulted from the re-determination of FitzPatrick's tax basis as a result of the sale of the plant in first quarter 2017 (classified as a special item). The year-to-date operational increase also reflected the net effect of income tax elections in second quarter 2017 and 2016. Both tax items resulted from internal reorganizations which, for tax purposes, allowed the company to recognize deductions for decommissioning liabilities today; those deductions created permanent tax losses. The reductions in income tax expense were $373 million in second quarter 2017 and $238 million in second quarter 2016. |
|
(p) |
The year-to-date decrease resulted partly from the establishment of decommissioning liabilities at Indian Point 3 in August 2016 from the agreement with NYPA to transfer decommissioning liabilities and associated trusts to Entergy. Revisions to the estimated decommissioning liabilities from the early shutdown decisions for Indian Point and Palisades in fourth quarter 2016 also contributed to the decrease. |
|
(q) |
The year-to-date decrease was due largely to higher franchise and ad valorem taxes. |
|
(r) |
The year-to-date increase was due largely to the lower ad valorem and employment taxes resulting from absence of the FitzPatrick plant, sold on March 31, 2017. |
|
(s) |
The year-to-date decrease was due largely to additions to plant in service. Also contributing was a depreciation expense reduction in third quarter 2016 which resulted from DOE litigation awards related to spent nuclear fuel storage costs. |
|
(t) |
The year-to-date as-reported increase was due to a gain on the sale of FitzPatrick (classified as a special item). |
C: Utility Financial and Operating Measures
Appendix C-1 provides a comparative summary of Utility, Parent & Other adjusted earnings and EPS contribution, each of which excludes the effects of special items and normalizes weather and income tax expense.
|
Appendix C-1: Utility, Parent & Other Adjusted Earnings and EPS - Reconciliation of GAAP to Non-GAAP Measures | |||||||
|
Fourth Quarter and Year-to-Date 2017 vs. 2016 (See Appendix A for details on special items) | |||||||
|
Fourth Quarter |
Year-to-Date | ||||||
|
2017 |
2016 |
Change |
2017 |
2016 |
Change | ||
|
($ in millions) |
|||||||
|
Utility earnings |
(47.4) |
120.4 |
(167.8) |
761.6 |
1,134.2 |
(372.6) | |
|
Parent & Other earnings (loss) |
(6.3) |
(57.1) |
50.8 |
(175.5) |
(222.5) |
47.0 | |
|
UP&O earnings (loss) |
(53.8) |
63.3 |
(117.0) |
586.1 |
911.7 |
(325.6) | |
|
Less: |
|||||||
|
Special items |
(128.5) |
- |
(128.5) |
(128.5) |
- |
(128.5) | |
|
Estimated weather |
18.3 |
31.0 |
(12.7) |
(127.8) |
18.1 |
(145.9) | |
|
Tax effect of estimated weather (u) |
(7.0) |
(12.0) |
5.0 |
49.2 |
(7.0) |
56.2 | |
|
Estimated weather (after-tax) |
11.3 |
19.1 |
(7.8) |
(78.6) |
11.1 |
(89.7) | |
|
Customer sharing |
- |
- |
- |
- |
(16.1) |
16.1 | |
|
Tax effect of customer sharing (u) |
- |
- |
- |
- |
6.2 |
(6.2) | |
|
Other income tax items |
(22.3) |
(4.9) |
(17.3) |
(31.0) |
126.9 |
(157.9) | |
|
Tax items, net of customer sharing |
(22.3) |
(4.9) |
(17.3) |
(31.0) |
117.0 |
(147.9) | |
|
UP&O adjusted earnings |
85.7 |
49.2 |
36.6 |
824.2 |
783.6 |
40.6 | |
|
(After-tax, per share in $) (v) |
|||||||
|
Utility earnings |
(0.26) |
0.67 |
(0.93) |
4.22 |
6.34 |
(2.12) | |
|
Parent & Other earnings (loss) |
(0.04) |
(0.32) |
0.28 |
(0.97) |
(1.24) |
0.27 | |
|
UP&O earnings (loss) |
(0.30) |
0.35 |
(0.65) |
3.25 |
5.10 |
(1.85) | |
|
Less: |
|||||||
|
Special items |
(0.71) |
- |
(0.71) |
(0.71) |
- |
(0.71) | |
|
Estimated weather |
0.06 |
0.11 |
(0.05) |
(0.44) |
0.06 |
(0.50) | |
|
Other income tax items, net of customer sharing |
(0.12) |
(0.03) |
(0.09) |
(0.17) |
0.66 |
(0.82) | |
|
UP&O adjusted earnings |
0.48 |
0.27 |
0.21 |
4.57 |
4.38 |
0.18 | |
|
Calculations may differ due to rounding | |
|
(u) |
Income tax effect is calculated by multiplying the pre-tax amount by the estimated income tax rates that are expected to apply to those adjustments. |
|
(v) |
Per share amounts are calculated by dividing the corresponding line item in the chart above by the diluted average number of common shares outstanding for the period. |
Appendix C-2 provides a comparative summary of Utility operating and financial measures.
|
Appendix C-2: Utility Operating and Financial Measures | ||||||||||
|
Fourth Quarter and Year-to-Date 2017 vs. 2016 | ||||||||||
|
Fourth Quarter |
Year-to-Date |
|||||||||
|
2017 |
2016 |
% Change |
% Weather |
2017 |
2016 |
% Change |
% Weather |
|||
|
GWh billed |
||||||||||
|
Residential |
8,024 |
8,077 |
(0.7) |
0.4 |
33,834 |
35,112 |
(3.6) |
0.9 |
||
|
Commercial |
7,150 |
7,259 |
(1.5) |
0.6 |
28,745 |
29,197 |
(1.5) |
0.9 |
||
|
Governmental |
627 |
635 |
(1.3) |
(1.3) |
2,511 |
2,547 |
(1.4) |
(0.8) |
||
|
Industrial |
11,940 |
11,158 |
7.0 |
7.0 |
47,769 |
45,739 |
4.4 |
4.4 |
||
|
Total retail sales |
27,741 |
27,129 |
2.3 |
3.2 |
112,859 |
112,595 |
0.2 |
2.3 |
||
|
Wholesale |
3,295 |
1,602 |
105.7 |
11,550 |
11,054 |
4.5 |
||||
|
Total sales |
31,036 |
28,731 |
8.0 |
124,409 |
123,649 |
0.6 |
||||
|
Number of electric retail customers |
||||||||||
|
Residential |
2,466,671 |
2,452,686 |
0.6 |
|||||||
|
Commercial |
354,189 |
352,147 |
0.6 |
|||||||
|
Governmental |
17,828 |
17,731 |
0.5 |
|||||||
|
Industrial |
46,193 |
46,252 |
(0.1) |
|||||||
|
Total retail customers |
2,884,881 |
2,868,816 |
0.6 |
|||||||
|
As-Reported net revenue ($ in millions) |
1,553 |
1,421 |
9.3 |
6,318 |
6,179 |
2.2 |
||||
|
Operational net revenue ($ in millions) |
1,498 |
1,421 |
5.4 |
6,263 |
6,179 |
1.3 |
||||
|
Non-fuel O&M per MWh |
$23.66 |
$24.41 |
(3.1) |
$21.08 |
$20.12 |
4.8 |
||||
|
Calculations may differ due to rounding | |
|
(w) |
The effects of weather were estimated using monthly heating degree days and cooling degree days from certain locations within each jurisdiction and comparing to "normal" weather based on 20-year historical data. The models used to estimate weather are updated periodically and subject to change. |
D: EWC Financial and Operating Measures
Appendix D-1 provides a comparative summary of EWC operational adjusted EBITDA (non-GAAP).
|
Appendix D-1: EWC Operational Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures | ||||||
|
Fourth Quarter and Year-to-Date 2017 vs. 2016 | ||||||
|
($ in millions) |
Fourth Quarter |
Year-to-Date | ||||
|
2017 |
2016 |
Change |
2017 |
2016 |
Change | |
|
Net income (loss) |
(425) |
(1,832) |
1,407 |
(172) |
(1,493) |
1,321 |
|
Add back: interest expense |
6 |
5 |
1 |
24 |
23 |
1 |
|
Add back: income taxes |
361 |
(1,016) |
1,377 |
(146) |
(1,192) |
1,046 |
|
Add back: depreciation and amortization |
36 |
45 |
(9) |
193 |
200 |
(7) |
|
Subtract: interest and investment income |
81 |
21 |
60 |
224 |
108 |
116 |
|
Add back: decommissioning expense |
60 |
58 |
2 |
255 |
175 |
80 |
|
Adjusted EBITDA (non-GAAP) |
(43) |
(2,761) |
2,718 |
(71) |
(2,396) |
2,325 |
|
Add back pre-tax special items for: |
||||||
|
Items associated with decisions to close or sell EWC nuclear plants |
141 |
2,829 |
(2,688) |
644 |
2,910 |
(2,266) |
|
Gain on the sale of FitzPatrick |
- |
- |
- |
(16) |
- |
(16) |
|
DOE litigation awards |
- |
- |
- |
- |
(34) |
34 |
|
Operational adjusted EBITDA (non-GAAP) |
98 |
68 |
30 |
557 |
480 |
77 |
|
Calculations may differ due to rounding |
Appendix D-2 provides a comparative summary of EWC operating and financial measures.
|
Appendix D-2: EWC Operating and Financial Measures | ||||||
|
Fourth Quarter and Year-to-Date 2017 vs. 2016 (See Appendix G for reconciliation of GAAP to non-GAAP measures) | ||||||
|
Fourth Quarter |
Year-to-Date | |||||
|
2017 |
2016 |
% Change |
2017 |
2016 |
% Change | |
|
Owned capacity (MW) (x) |
3,962 |
4,800 |
(17.5) | |||
|
GWh billed |
7,885 |
9,397 |
(16.1) |
30,501 |
35,881 |
(15.0) |
|
As-reported net revenue ($ in millions) |
333 |
387 |
(14.0) |
1,469 |
1,542 |
(4.7) |
|
Operational net revenue (non-GAAP) ($ in millions) |
333 |
353 |
(5.7) |
1,378 |
1,502 |
(8.3) |
|
EWC Nuclear Fleet |
||||||
|
Capacity factor |
93% |
91% |
2.2 |
83% |
87% |
(4.6) |
|
GWh billed |
7,317 |
8,881 |
(17.6) |
28,178 |
33,551 |
(16.0) |
|
Production cost per MWh |
$18.73 |
$23.00 |
(18.6) |
$18.70 |
$22.93 |
(18.4) |
|
Average energy/capacity revenue per MWh (y) |
$45.33 |
$42.66 |
6.3 |
$50.04 |
$47.31 |
5.8 |
|
As-reported net revenue ($ in millions) |
327 |
382 |
(14.4) |
1,456 |
1,533 |
(5.0) |
|
Operational net revenue (non-GAAP) ($ in millions) |
327 |
349 |
(6.3) |
1,365 |
1,492 |
(8.5) |
|
Refueling outage days |
||||||
|
FitzPatrick |
- |
- |
42 |
- |
||
|
Indian Point 2 |
- |
- |
- |
102 |
||
|
Indian Point 3 |
- |
- |
66 |
- |
||
|
Palisades |
- |
- |
27 |
- |
||
|
Pilgrim |
- |
- |
43 |
- |
||
|
(x) |
FitzPatrick (838 MW) was sold on 3/31/17. |
|
(y) |
Average energy and capacity revenue per MWh excluding FitzPatrick was $44.85 in fourth quarter 2016, $50.05 in year-to-date 2017 and $51.26 in year-to-date 2016. |
|
See appendix in the webcast slide presentation for EWC hedging and price disclosures. | |
E: Consolidated Financial Measures
Appendix E provides comparative financial measures. Financial measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP financial measures.
|
Appendix E: GAAP and Non-GAAP Financial Measures | |||
|
Fourth Quarter 2017 vs. 2016 (See Appendix G for reconciliation of GAAP to non-GAAP financial measures) | |||
|
For 12 months ending December 31 |
2017 |
2016 |
Change |
|
GAAP Measures |
|||
|
ROIC – as-reported |
3.4% |
(0.7)% |
4.1% |
|
ROE – as-reported |
5.1% |
(6.7)% |
11.8% |
|
Book value per share |
$44.28 |
$45.12 |
$(0.84) |
|
End of period shares outstanding (in millions) |
180.5 |
179.1 |
1.4 |
|
Non-GAAP Measures |
|||
|
ROIC – operational |
7.1% |
7.2% |
(0.1)% |
|
ROE – operational |
16.2% |
14.7% |
1.5% |
|
As of December 31 ($ in millions) |
2017 |
2016 |
Change |
|
GAAP Measures |
|||
|
Cash and cash equivalents |
781 |
1,188 |
(407) |
|
Revolver capacity |
4,174 |
3,720 |
454 |
|
Commercial paper |
1,467 |
344 |
1,123 |
|
Total debt |
16,677 |
15,275 |
1,402 |
|
Securitization debt |
545 |
661 |
(116) |
|
Debt to capital |
67.1% |
64.8% |
2.3% |
|
Off-balance sheet liabilities: |
|||
|
Debt of joint ventures – Entergy's share |
67 |
72 |
(5) |
|
Leases – Entergy's share |
429 |
397 |
32 |
|
Power purchase agreements accounted for as leases |
136 |
166 |
(30) |
|
Total off-balance sheet liabilities |
632 |
635 |
(3) |
|
Non-GAAP Financial Measures |
|||
|
Debt to capital, excluding securitization debt |
66.3% |
63.8% |
2.5% |
|
Gross liquidity |
4,955 |
4,908 |
47 |
|
Net debt to net capital, excluding securitization debt |
65.2% |
61.8% |
3.4% |
|
Parent debt to total debt, excluding securitization debt |
21.9% |
19.8% |
2.1% |
|
Debt to operational adjusted EBITDA, excluding securitization debt |
4.8x |
4.1x |
0.7x |
|
Operational FFO to debt, excluding securitization debt |
15.9% |
18.8% |
(2.9)% |
F: Definitions and Abbreviations and Acronyms
Appendix F-1 provides definitions of certain operating measures, as well as GAAP and non-GAAP financial measures. Non-GAAP financial measures remove the effects of financial events that are not routine from commonly used financial measures.
|
Appendix F-1: Definitions | |
|
Utility Operating and Financial Measures | |
|
GWh billed |
Total number of GWh billed to retail and wholesale customers |
|
Net revenue |
Operating revenues less fuel, fuel related expenses and gas purchased for resale; purchased power and other regulatory charges (credits) – net |
|
Non-fuel O&M |
Operation and maintenance expenses excluding fuel, fuel-related expenses and gas purchased for resale and purchased power |
|
Non-fuel O&M per MWh |
Non-fuel O&M per MWh of billed sales |
|
Number of retail customers |
Number of customers at the end of the period |
|
EWC Operating and Financial Measures | |
|
Average revenue under contract per kW-month (applies to capacity contracts only) |
Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and/or auction awards |
|
Average revenue per MWh on contracted volumes |
Revenue on a per unit basis at which generation output reflected in contracts is expected to be sold to third parties (including offsetting positions) at the minimum contract prices and at forward market prices at a point in time, given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market PPA for Palisades; revenue will fluctuate due to factors including market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at the time of option expiration, costs to convert firm LD to unit-contingent and other risk management costs |
|
Bundled capacity and energy contracts |
A contract for the sale of installed capacity and related energy, priced per MWh sold |
|
Capacity contracts |
A contract for the sale of the installed capacity product in regional markets managed by ISO New England, NYISO and MISO |
|
Capacity factor |
Normalized percentage of the period that the nuclear plants generate power |
|
Expected sold and market total revenue per MWh |
Total energy and capacity revenue on a per unit basis at which total planned generation output and capacity is expected to be sold given contract terms and market prices at a point in time, including estimates for market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at time of option expiration, costs to convert Firm LD to unit-contingent and other risk management costs, divided by total planned MWh of generation, excluding the revenue associated with the amortization of the Palisades below-market PPA |
|
Firm LD |
Transaction that requires receipt or delivery of energy at a specified delivery point (usually at a market hub not associated with a specific asset) or settles financially on notional quantities; if a party fails to deliver or receive energy, defaulting party must compensate the other party as specified in the contract, a portion of which may be capped through the use of risk management products |
|
Appendix F-1: Definitions | ||
|
EWC Operating and Financial Measures (continued) | ||
|
GWh billed |
Total number of GWh billed to customers and financially-settled instruments (does not include amounts from investment in wind generation that was accounted for under the equity method of accounting and which was sold in November 2016) | |
|
Net revenue |
Operating revenues less fuel, fuel-related expenses and purchased power | |
|
Offsetting positions |
Transactions for the purchase of energy, generally to offset a Firm LD transaction | |
|
Owned capacity (MW) |
Installed capacity owned by EWC | |
|
Percent of capacity sold forward |
Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions | |
|
Percent of planned generation under contract |
Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts or options that mitigate price uncertainty that may or may not require regulatory approval or approval of transmission rights or other conditions precedent; positions that are no longer classified as hedges are netted in the planned generation under contract | |
|
Planned net MW in operation |
Amount of installed capacity to generate power and/or sell capacity, assuming intent to shutdown Pilgrim (May 31, 2019), Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022) | |
|
Planned TWh of generation |
Amount of output expected to be generated by EWC resources considering plant operating characteristics and outage schedules, assuming intent to shutdown Pilgrim (May 31, 2019), Indian Point 2 (April 30, 2020), Indian Point 3 (April 30, 2021) and Palisades (May 31, 2022) | |
|
Production cost per MWh |
Fuel and non-fuel O&M expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation), excluding special items | |
|
Refueling outage days |
Number of days lost for a scheduled refueling and maintenance outage during the period | |
|
Unit-contingent |
Transaction under which power is supplied from a specific generation asset; if the asset is in operational outage, seller is generally not liable to buyer for any damages, unless the contract specifies certain conditions such as an availability guarantee | |
|
Financial Measures – GAAP | ||
|
Book value per share |
End of period common equity divided by end of period shares outstanding | |
|
Debt of joint ventures – Entergy's share |
Entergy's share of debt issued by business joint ventures at EWC | |
|
Debt to capital ratio |
Total debt divided by total capitalization | |
|
Leases – Entergy's share |
Operating leases held by subsidiaries capitalized at implicit interest rate | |
|
Revolver capacity |
Amount of undrawn capacity remaining on corporate and subsidiary revolvers, including Entergy Nuclear Vermont Yankee | |
|
ROE – as-reported |
12-months rolling net income attributable to Entergy Corporation divided by average common equity | |
|
ROIC – as-reported |
12-months rolling net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital | |
|
Securitization debt |
Debt associated with securitization bonds issued to recover storm costs from hurricanes Rita, Ike and Gustav at E-TX and Hurricane Isaac at E-NO; the 2009 ice storm at E-AR and investment recovery of costs associated with the cancelled Little Gypsy repowering project at E-LA | |
|
Total debt |
Sum of short-term and long-term debt, notes payable and commercial paper and capital leases on the balance sheet | |
|
Appendix F-1: Definitions | |
|
Financial Measures - Non-GAAP | |
|
Adjusted EBITDA |
Earnings before interest, depreciation and amortization and income taxes and excluding decommissioning expense; for Entergy consolidated, also excludes AFUDC-equity funds and subtracts securitization proceeds |
|
Adjusted EPS |
As-reported EPS excluding special items and normalizing weather and income taxes |
|
Debt to capital ratio, excluding securitization debt |
Total debt divided by total capitalization, excluding securitization debt |
|
Debt to operational adjusted EBITDA ratio, excluding securitization debt |
End of period total debt excluding securitization debt divided by 12-months rolling operational adjusted EBITDA |
|
FFO |
OCF less AFUDC-borrowed funds, working capital items in OCF (receivables, fuel inventory, accounts payable, prepaid taxes and taxes accrued, interest accrued and other working capital accounts) and securitization regulatory charges |
|
Gross liquidity |
Sum of cash and revolver capacity |
|
Net debt to net capital ratio, excluding securitization debt |
Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt |
|
Operational adjusted EBITDA |
Adjusted EBITDA excluding effects of special items |
|
Operational EPS |
As-reported EPS excluding special items |
|
Operational FFO |
FFO excluding the effects of special items |
|
Operational FFO to debt ratio, excluding securitization debt |
12-months rolling operational FFO as a percentage of end of period total debt excluding securitization debt |
|
Parent debt to total debt ratio, excluding securitization debt |
End of period Entergy Corporation debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of consolidated total debt, excluding securitization debt |
|
ROE – operational |
12-months rolling operational net income attributable to Entergy Corporation divided by average common equity |
|
ROIC – operational |
12-months rolling operational net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital |
|
Utility, Parent & Other |
Combines the Utility segment with Parent & Other, which is all of Entergy excluding the EWC segment |
Appendix F-2 explains abbreviations and acronyms used in the quarterly earnings materials.
|
Appendix F-2: Abbreviations and Acronyms | |||
|
ADIT |
Accumulated deferred income taxes |
LPSC |
Louisiana Public Service Commission |
|
AFUDC - borrowed funds |
Allowance for borrowed funds used during construction |
LTM |
Last twelve months |
|
AFUDC - equity funds |
Allowance for equity funds used during construction |
Michigan PSC |
Michigan Public Service Commission |
|
ALJ |
Administrative Law Judge |
MISO |
Midcontinent Independent System Operator, Inc. |
|
AMI |
Advanced metering infrastructure |
Moody's |
Moody's Investor Service |
|
ANO |
Units 1 and 2 of Arkansas Nuclear One owned by E-AR (nuclear) |
MPSC |
Mississippi Public Service Commission |
|
APSC |
Arkansas Public Service Commission |
MTEP |
MISO Transmission Expansion Planning |
|
ARO |
Asset retirement obligation |
Nelson 6 |
Unit 6 of Roy S. Nelson plant (coal) |
|
CCGT |
Combined cycle gas turbine |
NEPOOL |
New England Power Pool |
|
CCNO |
Council of the City of New Orleans, Louisiana |
Ninemile 6 |
Ninemile Point Unit 6 (CCGT) |
|
COD |
Commercial operation date |
Non-fuel O&M |
Non-fuel operation and maintenance expense |
|
CT |
Simple cycle combustion turbine |
NDT |
Nuclear decommissioning trust |
|
CZM |
Coastal Zone Management |
NOPS |
New Orleans Power Station (reciprocating internal combustion engine/natural gas) |
|
CWIP |
Construction work in progress |
NRC |
Nuclear Regulatory Commission |
|
DCRF |
Distribution cost recovery factor |
NYISO |
New York Independent System Operator, Inc. |
|
DOE |
U.S. Department of Energy |
NYPA |
New York Power Authority |
|
E-AR |
Entergy Arkansas, Inc. |
NYSE |
New York Stock Exchange |
|
E-LA |
Entergy Louisiana, LLC |
O&M |
Operation and maintenance expense |
|
E-MS |
Entergy Mississippi, Inc. |
OCF |
Net cash flow provided by operating activities |
|
E-NO |
Entergy New Orleans, LLC |
OpCo |
Operating Company |
|
E-TX |
Entergy Texas, Inc. |
OPEB |
Other post-employment benefits |
|
EBITDA |
Earnings before interest, income taxes, depreciation and amortization |
Palisades |
Palisades Power Plant (nuclear) |
|
ENVY |
Entergy Nuclear Vermont Yankee |
PSDAR |
Post-Shutdown Decommissioning Activities Report |
|
ESI |
Entergy Services, Inc. |
Pilgrim |
Pilgrim Nuclear Power Station (nuclear) |
|
EPS |
Earnings per share |
PPA |
Power purchase agreement or purchased power agreement |
|
ETR |
Entergy Corporation |
PUCT |
Public Utility Commission of Texas |
|
EWC |
Entergy Wholesale Commodities |
RFO |
Refueling outage |
|
FERC |
Federal Energy Regulatory Commission |
RFP |
Request for proposals |
|
FFO |
Funds from operations |
ROE |
Return on equity |
|
Firm LD |
Firm liquidated damages |
ROIC |
Return on invested capital |
|
FitzPatrick |
James A. FitzPatrick Nuclear Power Plant (nuclear, sold March 31, 2017) |
RPCE |
Rough production cost equalization |
|
FRP |
Formula rate plan |
RS Cogen |
RS Cogen facility (CCGT cogen) |
|
GAAP |
U.S. generally accepted accounting principles |
RSP |
Rate Stabilization Plan (E-LA Gas) |
|
Grand Gulf |
Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by SERI |
S&P |
Standard & Poor's |
|
Indian Point 1 |
Indian Point Energy Center Unit 1 (nuclear) |
SEC |
U.S. Securities and Exchange Commission |
|
Indian Point 2 |
Indian Point Energy Center Unit 2 (nuclear) |
SERI |
System Energy Resources, Inc. |
|
Indian Point 3 |
Indian Point Energy Center Unit 3 (nuclear) |
SPDES |
State Pollutant Discharge Elimination System |
|
IPEC |
Indian Point Energy Center (nuclear) |
TCRF |
Transmission cost recovery factor |
|
ISO |
Independent system operator |
Union |
Union Power Station (CCGT) |
|
ISES |
Independence Steam Electric Station (coal) |
UP&O |
Utility, Parent & Other |
|
VPUC |
Vermont Public Utility Commission | ||
|
VY |
Vermont Yankee Nuclear Power Station (nuclear) | ||
|
WACC |
Weighted-average cost of capital | ||
|
Waterford 3 |
Unit No. 3 of the Waterford Steam Electric Station, 100% owned or leased by E-LA (nuclear) | ||
|
WPEC |
Washington Parish Energy Center (CT/natural gas) | ||
|
WQC |
Water Quality Certification | ||
G: GAAP to Non-GAAP Reconciliations
Appendix G-1, Appendix G-2 and Appendix G-3 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure.
|
Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures – Utility and EWC Operational Net Revenue | |||||
|
($ in millions except where noted) |
Fourth Quarter |
Year-to-Date | |||
|
2017 |
2016 |
2017 |
2016 | ||
|
Utility |
|||||
|
As-reported Utility net revenue |
(A) |
1,553 |
1,421 |
6,318 |
6,179 |
|
Special Items included in net revenue: |
|||||
|
Tax reform |
56 |
- |
56 |
- | |
|
Total special items included in net revenue |
(B) |
56 |
- |
56 |
- |
|
Operational Utility net revenue |
(A-B) |
1,498 |
1,421 |
6,263 |
6,179 |
|
EWC |
|||||
|
As-reported EWC net revenue |
(C) |
333 |
387 |
1,469 |
1,542 |
|
Special items included in net revenue: |
|||||
|
Items associated with decisions to close or sell EWC nuclear plants |
- |
33 |
91 |
41 | |
|
Total special items included in net revenue |
(D) |
- |
33 |
91 |
41 |
|
Operational net revenue (non-GAAP) |
(C-D) |
333 |
353 |
1,378 |
1,502 |
|
EWC Nuclear |
|||||
|
As-reported EWC Nuclear net revenue |
(E) |
327 |
382 |
1,456 |
1,533 |
|
Special items included in EWC Nuclear net revenue: |
|||||
|
Items associated with decisions to close or sell EWC nuclear plants |
- |
33 |
91 |
41 | |
|
Total special items included in EWC nuclear net revenue |
(F) |
- |
33 |
91 |
41 |
|
Operational EWC nuclear net revenue (non-GAAP) |
(E-F) |
327 |
349 |
1,365 |
1,492 |
|
Calculations may differ due to rounding |
|
Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures - ROIC, ROE | |||
|
($ in millions except where noted) |
Fourth Quarter | ||
|
2017 |
2016 | ||
|
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months |
(A) |
412 |
(584) |
|
Preferred dividends |
14 |
19 | |
|
Tax effected interest expense |
407 |
410 | |
|
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months adjusted for preferred dividends and tax effected interest expense |
(B) |
833 |
(155) |
|
Special items in prior quarters |
(272) |
(30) | |
|
Items associated with decisions to close or sell EWC nuclear plants |
(91) |
(1,825) | |
|
Tax reform |
(525) |
- | |
|
Total special items, rolling 12 months |
(C) |
(888) |
(1,855) |
|
Operational earnings, rolling 12 months adjusted for preferred dividends and tax effected interest expense (non-GAAP) |
(B-C) |
1,721 |
1,700 |
|
Operational earnings, rolling 12 months (non-GAAP) |
(A-C) |
1,300 |
1,271 |
|
Average invested capital |
(D) |
24,213 |
23,492 |
|
Average common equity |
(E) |
8,037 |
8,669 |
|
ROIC – as-reported |
(B/D) |
3.4% |
(0.7%) |
|
ROIC – operational |
[(B-C)/D] |
7.1% |
7.2% |
|
ROE – as-reported |
(A/E) |
5.1% |
(6.7%) |
|
ROE – operational |
[(A-C)/E] |
16.2% |
14.7% |
|
Calculations may differ due to rounding |
|
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures – Debt Ratios excluding Securitization Debt; Gross Liquidity; Debt to Operational Adjusted EBITDA, excluding Securitization Debt; Operational FFO to Debt Ratio, excluding Securitization Debt | |||
|
($ in millions except where noted) |
Fourth Quarter | ||
|
2017 |
2016 | ||
|
Total debt |
(A) |
16,677 |
15,275 |
|
Less securitization debt |
(B) |
545 |
661 |
|
Total debt, excluding securitization debt |
(C) |
16,132 |
14,614 |
|
Less cash and cash equivalents |
(D) |
781 |
1,188 |
|
Net debt, excluding securitization debt |
(E) |
15,351 |
13,426 |
|
Total capitalization |
(F) |
24,867 |
23,560 |
|
Less securitization debt |
(B) |
545 |
661 |
|
Total capitalization, excluding securitization debt |
(G) |
24,322 |
22,899 |
|
Less cash and cash equivalents |
(D) |
781 |
1,188 |
|
Net capital, excluding securitization debt |
(H) |
23,541 |
21,711 |
|
Debt to capital |
(A/F) |
67.1% |
64.8% |
|
Debt to capital, excluding securitization debt |
(C/G) |
66.3% |
63.8% |
|
Net debt to net capital, excluding securitization debt |
(E/H) |
65.2% |
61.8% |
|
Revolver capacity |
(I) |
4,174 |
3,720 |
|
Gross liquidity |
(D+I) |
4,955 |
4,908 |
|
Entergy Corporation notes: |
|||
|
Due September 2020 |
450 |
450 | |
|
Due July 2022 |
650 |
650 | |
|
Due September 2026 |
750 |
750 | |
|
Total parent long-term debt |
(J) |
1,850 |
1,850 |
|
Revolver draw |
(K) |
210 |
700 |
|
Commercial paper |
(L) |
1,467 |
344 |
|
Total parent debt |
(J)+(K)+(L) |
3,527 |
2,894 |
|
Parent debt to total debt, excluding securitization debt |
[((J)+(K)+(L))/(C)] |
21.9% |
19.8% |
|
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures – Debt Ratios excluding Securitization Debt; Gross Liquidity; Debt to Operational Adjusted EBITDA, excluding Securitization Debt; Operational FFO to Debt Ratio, excluding Securitization Debt (continued) | |||
|
($ in millions except where noted) |
Fourth Quarter | ||
|
2017 |
2016 | ||
|
Total debt |
(A) |
16,677 |
15,275 |
|
Less securitization debt |
(B) |
545 |
661 |
|
Total debt, excluding securitization debt |
(C) |
16,132 |
14,614 |
|
As-reported consolidated net income (loss), rolling 12 months |
425 |
(565) | |
|
Add back (rolling 12 months): |
|||
|
Interest expense |
662 |
666 | |
|
Income taxes |
543 |
(817) | |
|
Depreciation and amortization |
1,390 |
1,347 | |
|
Regulatory charges (credits) |
(132) |
94 | |
|
Decommissioning expense |
406 |
327 | |
|
Subtract (rolling 12 months): |
|||
|
Securitization proceeds |
146 |
132 | |
|
Interest and investment income |
288 |
145 | |
|
AFUDC-equity funds |
95 |
68 | |
|
Adjusted EBITDA, rolling 12 months (non-GAAP) |
(D) |
2,765 |
707 |
|
Add back special items (rolling 12 months pre-tax): |
|||
|
Items associated with decisions to close or sell EWC nuclear plants |
644 |
2,910 | |
|
Tax reform |
(56) |
- | |
|
DOE litigation awards |
- |
(34) | |
|
Gain on the sale of FitzPatrick |
(16) |
- | |
|
Operational adjusted EBITDA, rolling 12 months (non-GAAP) |
(E) |
3,337 |
3,583 |
|
Debt to operational adjusted EBITDA, excluding securitization debt |
(C)/(E) |
4.8x |
4.1x |
|
Net cash flow provided by operating activities, rolling 12 months |
(F) |
2,624 |
2,999 |
|
AFUDC-borrowed funds, rolling 12 months |
(G) |
(45) |
(34) |
|
Working capital items in net cash flow provided by operating activities (rolling 12 months): |
|||
|
Receivables |
(98) |
(97) | |
|
Fuel inventory |
(3) |
38 | |
|
Accounts payable |
102 |
174 | |
|
Prepaid taxes and taxes accrued |
34 |
(29) | |
|
Interest accrued |
1 |
(7) | |
|
Other working capital accounts |
(4) |
31 | |
|
Securitization regulatory charges |
116 |
114 | |
|
Total |
(H) |
148 |
224 |
|
FFO, rolling 12 months |
(F)+(G)-(H) |
2,431 |
2,741 |
|
Add back special items (rolling 12 months pre-tax): |
|||
|
Items associated with decisions to close or sell EWC nuclear plants |
126 |
6 | |
|
Operational FFO, rolling 12 months |
(I) |
2,557 |
2,747 |
|
Operational FFO to debt, excluding securitization debt |
(I)/(C) |
15.9% |
18.8% |
|
Calculations may differ due to rounding |
View original content with multimedia:http://www.prnewswire.com/news-releases/entergy-reports-fourth-quarter-and-full-year-financial-results-initiates-2018-earnings-guidance-300603290.html
SOURCE Entergy Corporation
Article Date
2/23/2018Entergy Announces Fourth Quarter Earnings Conference Call
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
NEW ORLEANS, Feb. 16, 2018 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) will report fourth quarter earnings results before market open on Friday, Feb. 23, 2018, and host a teleconference from 9:00 a.m. CT that day to discuss the earnings announcement and the company's financial performance. The teleconference may be accessed by dialing 844-309-6569, conference ID 3691689, no more than 15 minutes prior to the start of the call or by visiting Entergy's website at entergy.com. From time to time, Entergy posts new and/or revised materials on its website and on social media, and anticipates doing so in connection with this event. The presentation slides will be available on Entergy's website and the Entergy Investor Relations mobile web app at iretr.com before market open on the day of the call. A replay of the teleconference will be available until March 2, 2018, by dialing 855-859-2056, confirmation ID 3691689.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $10.8 billion and nearly 13,000 employees.
Additional investor information can be accessed at entergy.com/investor_relations
View original content with multimedia:http://www.prnewswire.com/news-releases/entergy-announces-fourth-quarter-earnings-conference-call-300600225.html
SOURCE Entergy Corporation
Article Date
2/16/20181/26/2018 - Entergy Declares Dividend
Entergy Declares Dividend
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
NEW ORLEANS, Jan. 26, 2018 /PRNewswire/ -- The Board of Directors of Entergy Corporation (NYSE: ETR) has declared a quarterly dividend of $0.89 per common share. The payment date is Feb. 8, 2018, to stockholders of record on March 1, 2018.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $10.8 billion and nearly 13,000 employees.
Online address: Entergy.com
Twitter: @Entergy
Facebook: www.facebook.com/entergy
View original content with multimedia:http://www.prnewswire.com/news-releases/entergy-declares-dividend-300588958.html
SOURCE Entergy Corporation
Article Date
1/26/2018Entergy Corporation Chairman and CEO to Present at 52nd EEI Financial Conference
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
NEW ORLEANS, Oct. 30, 2017 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) Chairman and Chief Executive Officer Leo Denault plans to provide a presentation on Tuesday, Nov. 7, during the 52nd Edison Electric Institute Financial Conference. The presentation is expected to start at approximately 11:15 a.m. ET. A live webcast will be available on the Investor Relations section of Entergy's corporate website at entergy.com. A replay of the webcast will be available and archived on the website for approximately 30 days. Presentation slides will be posted on the Investor Relations section of Entergy's corporate website at entergy.com after market close on Friday, Nov. 3. The webcast and presentation slides will also be available on the Entergy Investor Relations mobile web app at enter.gy/ir.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $10.8 billion and nearly 13,000 employees.
Additional investor information can be accessed online at Entergy.com/investor_relations
View original content with multimedia:http://www.prnewswire.com/news-releases/entergy-corporation-chairman-and-ceo-to-present-at-52nd-eei-financial-conference-300545465.html
SOURCE Entergy Corporation
Article Date
10/30/201710/27/2017 - Entergy Declares Dividend
Entergy Declares Dividend
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
NEW ORLEANS, Oct. 27, 2017 /PRNewswire/ -- The Board of Directors of Entergy Corporation (NYSE: ETR) has declared a quarterly dividend of $0.89 per common share. The payment date is Dec. 1, 2017, to stockholders of record on Nov. 9, 2017.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $10.8 billion and nearly 13,000 employees.
Online address: Entergy.com
Twitter: @Entergy
Facebook: www.facebook.com/entergy
View original content with multimedia:http://www.prnewswire.com/news-releases/entergy-declares-dividend-300544885.html
SOURCE Entergy Corporation
Article Date
10/27/201710/24/2017 - Entergy Reports Third Quarter Earnings
Entergy Reports Third Quarter Earnings
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
NEW ORLEANS, Oct. 24, 2017 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported third quarter 2017 earnings per share of $2.21 on an as-reported basis and $2.35 on an operational basis (non-GAAP), which excludes the effects of special items.
"Today we are reporting a strong third quarter, and we now expect to finish the year in the top half of our Utility, Parent & Other adjusted earnings guidance range," said Entergy Chairman and Chief Executive Officer Leo Denault. "We have completed most of our key deliverables for the year that support our strategy to achieve steady, predictable growth at the Utility, while managing risk and an orderly exit of our merchant power business. We are affirming our 2017 guidance and our longer-term outlooks."
Business highlights included the following:
|
Consolidated Earnings (GAAP and Non-GAAP Measures) | ||||||
|
Third Quarter and Year-to-Date 2017 vs. 2016 (See Appendix A for reconciliation of GAAP to non-GAAP earnings and description of special items) | ||||||
|
Third Quarter |
Year-to-Date | |||||
|
2017 |
2016 |
Change |
2017 |
2016 |
Change | |
|
(After-tax, $ in millions) |
||||||
|
As-reported earnings |
398.2 |
388.2 |
10.0 |
890.7 |
1,185.4 |
(294.7) |
|
Less special items |
(25.5) |
(27.5) |
1.9 |
(271.9) |
(30.7) |
(241.2) |
|
Operational earnings (non-GAAP) |
423.7 |
415.6 |
8.1 |
1,162.6 |
1,216.2 |
(53.5) |
|
Estimated weather in billed sales |
(44.7) |
33.8 |
(78.5) |
(89.9) |
(8.0) |
(81.9) |
|
(After-tax, per share in $) |
||||||
|
As-reported earnings |
2.21 |
2.16 |
0.05 |
4.94 |
6.60 |
(1.66) |
|
Less special items |
(0.14) |
(0.15) |
0.01 |
(1.51) |
(0.17) |
(1.34) |
|
Operational earnings (non-GAAP) |
2.35 |
2.31 |
0.04 |
6.45 |
6.77 |
(0.32) |
|
Estimated weather in billed sales |
(0.25) |
0.18 |
(0.43) |
(0.50) |
(0.04) |
(0.46) |
|
Calculations may differ due to rounding |
Consolidated Results
For third quarter 2017, the company reported earnings of $398 million, or $2.21 per share, on an as-reported basis and $424 million, or $2.35 per share, on an operational basis. This compared to third quarter 2016 earnings of $388 million, or $2.16 per share, on an as-reported basis and $416 million, or $2.31 per share, on an operational basis. Summary discussions by business are below.
Additional details, including information on OCF by business, are provided in Appendix A and a comprehensive analysis of quarterly and year-to-date variances is provided in Appendix B.
Utility, Parent & Other Results
For third quarter 2017, the Utility business earned net income attributable to Entergy Corporation of $401 million, or $2.22 per share, compared to $443 million, or $2.47 per share, in third quarter 2016. Drivers for the quarterly decrease included lower net revenue and higher operating expenses.
Net revenue decreased quarter-over-quarter, driven by unfavorable weather in the current quarter compared to favorable weather a year ago. For third quarter 2017, cooling degree days were 16 percent below normal, compared to 14 percent above normal in third quarter 2016. Excluding the effects of weather, net revenue was higher reflecting weather-adjusted sales growth and new rate actions to recover investments that benefit customers.
On a weather-adjusted basis, billed sales increased 3.5 percent, including 3.8 percent and 2.5 percent for residential and commercial billed sales, respectively. Industrial billed sales volume increased 4.0 percent with higher sales to both new and expansion customers as well as existing customers. The increase was driven largely by the primary metals and chlor-alkali segments. Sales to petroleum refining and industrial gases customers were also higher.
Utility non-fuel O&M increased quarter-over-quarter, driven by higher spending on nuclear operations including nuclear refueling outage expenses. Depreciation and amortization as well as taxes other than income taxes were also higher. In addition, other income increased period-over-period due partly to higher AFUDC-equity funds.
Parent & Other recognized a loss of $(58) million, or (32) cents per share, for third quarter 2017, compared to a loss of $(63) million, or (35) cents per share, for third quarter 2016.
On a combined basis, Utility, Parent & Other (non-GAAP) contributed $1.90 to third quarter 2017 consolidated EPS and $2.12 to third quarter 2016 consolidated EPS. On an adjusted basis, normalizing weather and income taxes, Utility, Parent & Other (non-GAAP) contributed $2.15 per share in third quarter 2017 to consolidated EPS, compared to $1.98 in third quarter 2016.
Appendix C contains additional details on Utility financial and operating measures, including reconciliation for non-GAAP Utility, Parent & Other adjusted earnings and EPS.
Entergy Wholesale Commodities Results
For third quarter 2017, EWC earned net income attributable to Entergy Corporation of $55 million, or 31 cents per share, compared to $8 million, or 4 cents per share, for third quarter 2016. On an operational basis, EWC earned $81 million, or 45 cents per share, in third quarter 2017, compared to $35 million, or 19 cents per share, in third quarter 2016.
The sale of FitzPatrick at the end of first quarter 2017 affected period-over-period variances for multiple line items. In third quarter 2016, the plant contributed a (15) cent loss to as-reported EPS and 2 cents to operational EPS.
Excluding FitzPatrick, revenue from nuclear plants increased due to higher capacity prices. Current period earnings also reflected the impacts of previous impairments, specifically lower fuel and refueling outage expenses. Other income increased largely from higher realized earnings on decommissioning trust funds. Partially offsetting the increases was higher decommissioning expense due in part to the agreement with NYPA to transfer the Indian Point Unit 3 decommissioning liability and associated trust to Entergy.
Appendix D contains additional details on EWC financial and operating measures, including the calculation of EWC operational adjusted EBITDA (non-GAAP).
Earnings Guidance
Entergy affirmed its 2017 operational earnings guidance range of $6.80 to $7.40 per share and its Utility, Parent & Other adjusted guidance range of $4.25 to $4.55 per share. See webcast presentation slides for additional details.
The company has provided 2017 earnings guidance with regard to the non-GAAP measures of operational EPS and Utility, Parent & Other adjusted EPS. These measures exclude from the corresponding GAAP financial measures the effect of special items 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 special items that may occur during 2017. The only anticipated special items that the company can reasonably estimate at this time are those that relate to the decisions to sell or close the company's merchant nuclear plants; these estimated costs, which are excluded from the earnings guidance, are expected to decrease as-reported EPS by approximately $(2.10) per share.
Earnings Teleconference
A teleconference will be held from 10:00 a.m. to 10:40 a.m. Central Time on Tuesday, Oct. 24, 2017, to discuss Entergy's quarterly earnings announcement and the company's financial performance. The teleconference may be accessed by visiting Entergy's website at www.entergy.com or by dialing 844-309-6569, conference ID 56951898, no more than 15 minutes prior to the start of the call. The webcast slide presentation is also posted to Entergy's website concurrent with this release, which was issued before market open on the day of the call. A replay of the teleconference will be available on Entergy's website at www.entergy.com and by telephone. The telephone replay will be available through Oct. 31, 2017, by dialing 855-859-2056, conference ID 56951898. This release and the webcast slide presentation are also available on the Entergy Investor Relations mobile web app at iretr.com.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $10.8 billion and nearly 13,000 employees.
Entergy Corporation's common stock is listed on the New York and Chicago stock exchanges 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 slide presentation. Both documents are available on Entergy's Investor Relations website at www.entergy.com/investor_relations and on Entergy's Investor Relations mobile web app at iretr.com.
For definitions of certain operating measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the earnings release materials, see Appendix F.
Non-GAAP Financial Measures
This news release contains non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes 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 release of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Certain non-GAAP financial measures in this news release could differ from GAAP only in that the figure or ratio states or includes operational earnings. Operational earnings are not calculated in accordance with GAAP because they exclude the effect of "special items." Special items are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, and may include items such as impairments, gains or losses on asset sales, and other gains or losses occurring as a result of strategic decisions such as Entergy's recent decisions to shut down or sell its merchant nuclear plants. In addition, other financial measures including net income (or earnings), adjusted for preferred dividends and tax effected interest expense; net revenue; return on average invested capital; and return on average common equity are included on both an operational and as-reported basis. In each case, the metrics defined as "operational" would exclude the effect of special items as defined above. Entergy reports the combination of the Utility segment with Parent & Other as Utility, Parent & Other, which is all of Entergy excluding the EWC segment, since management uses this combination in making decisions about its ongoing business in light of its decision to exit the merchant power business. Entergy also reports Utility, Parent & Other adjusted earnings, which combines the Utility segment with Parent & Other, excludes applicable special items and normalizes weather and income tax expense for the periods presented, because it believes that these financial metrics provide useful information to investors in evaluating the ongoing results of Entergy's businesses and assist investors in comparing Entergy's financial performance to the financial performance of other companies in the Utility sector. In addition to reporting earnings per share on a consolidated basis, Entergy reports on a per share basis the earnings or loss of each of its segments, together with the combination of the Utility segment and Parent & Other. These per share measures represent the net income or loss of such segment or segments divided by the diluted average number of shares of common stock outstanding over the period. Entergy believes such per share measures provide useful information to investors in understanding the results of operations of those businesses and their contribution to Entergy's consolidated results of operations.
Other non-GAAP measures, including adjusted EBITDA; operational adjusted EBITDA; gross liquidity; debt to capital ratio, excluding securitization debt; net debt to net capital ratio, excluding securitization debt; parent debt to total debt ratio, excluding securitization debt; debt to operational adjusted EBITDA, excluding securitization debt; operational FFO to debt ratio, excluding securitization debt are measures Entergy uses internally for management and board discussions and cash budgeting and performance monitoring activities 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.
The non-GAAP financial measures and other reported adjusted items in this release are presented in addition to, and in conjunction with, results presented in accordance with GAAP. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. 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. Investors are strongly encouraged to review Entergy's consolidated financial statements and publicly filed reports in their entirety and to not rely on any single financial measure. 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, Entergy's 2017 earnings guidance, its current financial and operational outlook, 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 rate proceedings, formula rate plans and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory costs and risks, including any changes resulting from the nuclear crisis in Japan following its catastrophic earthquake and tsunami; (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 strategic transactions that Entergy or its subsidiaries may undertake, including the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental or energy policies; and (i) the effects of technological changes and changes in commodity markets, capital markets or economic conditions, during the periods covered by the forward-looking statements.
Third Quarter 2017 Earnings Release Appendices and Financial Statements
Appendices
Appendices are presented in this section as follows:
A: Consolidated Results and Special Items
Appendix A-1 provides a comparative summary of consolidated earnings, including a reconciliation of as-reported earnings (GAAP) to operational earnings (non-GAAP).
|
Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures Third Quarter and Year-to-Date 2017 vs. 2016 (See Appendix A-3 and Appendix A-4 for details on special items, including income tax effects on adjustments) | ||||||
|
Third Quarter |
Year-to-Date | |||||
|
2017 |
2016 |
Change |
2017 |
2016 |
Change | |
|
(After-tax, $ in millions) |
||||||
|
Earnings |
||||||
|
Utility |
400.8 |
443.3 |
(42.5) |
809.0 |
1,013.8 |
(204.8) |
|
Parent & Other |
(57.9) |
(62.8) |
4.9 |
(169.1) |
(165.4) |
(3.8) |
|
EWC |
55.2 |
7.7 |
47.5 |
250.8 |
337.0 |
(86.2) |
|
Consolidated |
398.2 |
388.2 |
10.0 |
890.7 |
1,185.4 |
(294.7) |
|
Less special items |
||||||
|
Utility |
- |
- |
- |
- |
- |
- |
|
Parent & Other |
- |
- |
- |
- |
- |
- |
|
EWC |
(25.5) |
(27.5) |
1.9 |
(271.9) |
(30.7) |
(241.2) |
|
Consolidated |
(25.5) |
(27.5) |
1.9 |
(271.9) |
(30.7) |
(241.2) |
|
Operational (non-GAAP) |
||||||
|
Utility |
400.8 |
443.3 |
(42.5) |
809.0 |
1,013.8 |
(204.8) |
|
Parent & Other |
(57.9) |
(62.8) |
4.9 |
(169.1) |
(165.4) |
(3.8) |
|
EWC |
80.7 |
35.2 |
45.6 |
522.7 |
367.7 |
155.0 |
|
Consolidated |
423.7 |
415.6 |
8.1 |
1,162.6 |
1,216.2 |
(53.5) |
|
Estimated weather in billed sales |
(44.7) |
33.8 |
(78.5) |
(89.9) |
(8.0) |
(81.9) |
|
Diluted average number of common shares outstanding (in millions) |
180.5 |
180.0 |
180.2 |
179.5 |
||
|
(After-tax, per share in $) (a) |
||||||
|
Earnings |
||||||
|
Utility |
2.22 |
2.47 |
(0.25) |
4.49 |
5.64 |
(1.15) |
|
Parent & Other |
(0.32) |
(0.35) |
0.03 |
(0.94) |
(0.92) |
(0.02) |
|
EWC |
0.31 |
0.04 |
0.27 |
1.39 |
1.88 |
(0.49) |
|
Consolidated |
2.21 |
2.16 |
0.05 |
4.94 |
6.60 |
(1.66) |
|
Less special items |
||||||
|
Utility |
- |
- |
- |
- |
- |
- |
|
Parent & Other |
- |
- |
- |
- |
- |
- |
|
EWC |
(0.14) |
(0.15) |
0.01 |
(1.51) |
(0.17) |
(1.34) |
|
Consolidated |
(0.14) |
(0.15) |
0.01 |
(1.51) |
(0.17) |
(1.34) |
|
Operational (non-GAAP) |
||||||
|
Utility |
2.22 |
2.47 |
(0.25) |
4.49 |
5.64 |
(1.15) |
|
Parent & Other |
(0.32) |
(0.35) |
0.03 |
(0.94) |
(0.92) |
(0.02) |
|
EWC |
0.45 |
0.19 |
0.26 |
2.90 |
2.05 |
0.85 |
|
Consolidated |
2.35 |
2.31 |
0.04 |
6.45 |
6.77 |
(0.32) |
|
Estimated weather in billed sales |
(0.25) |
0.18 |
(0.43) |
(0.50) |
(0.04) |
(0.46) |
|
Calculations may differ due to rounding | |
|
(a) |
Per share amounts are calculated by dividing the corresponding line item in the chart above by the diluted average number of common shares outstanding over the period. |
See Appendix B for detailed earnings variance analysis. See Appendix A-3 for special items by driver.
Appendix A-2 provides the components of OCF contributed by each business.
|
Appendix A-2: Consolidated Operating Cash Flow | ||||||
|
Third Quarter and Year-to-Date 2017 vs. 2016 | ||||||
|
($ in millions) | ||||||
|
Third Quarter |
Year-to-Date | |||||
|
2017 |
2016 |
Change |
2017 |
2016 |
Change | |
|
Utility |
878 |
929 |
(51) |
2,005 |
2,078 |
(73) |
|
Parent & Other |
(92) |
(53) |
(39) |
(318) |
(162) |
(156) |
|
EWC |
107 |
124 |
(17) |
26 |
336 |
(310) |
|
Total OCF |
893 |
1,000 |
(107) |
1,713 |
2,252 |
(540) |
|
Calculations may differ due to rounding |
OCF decreased quarter-over-quarter, driven in part by the receipt of DOE litigation proceeds in third quarter 2016. Unfavorable weather in the quarter, compared to favorable weather a year ago, also contributed. Positive weather-adjusted sales growth partially offset the decrease.
Appendix A-3 and Appendix A-4 list special items by business. Amounts are shown on both a net income and per share basis. Special items are included in as-reported earnings consistent with GAAP, but are excluded from operational earnings. As a result, operational earnings is considered a non-GAAP measure.
|
Appendix A-3: Special Items by Driver (shown as positive/(negative) impact on earnings or EPS) | ||||||
|
Third Quarter and Year-to-Date 2017 vs. 2016 | ||||||
|
Third Quarter |
Year-to-Date | |||||
|
2017 |
2016 |
Change |
2017 |
2016 |
Change | |
|
(Pre-tax except for income tax effects and total, $ in millions) | ||||||
|
EWC |
||||||
|
Items associated with decisions to close or sell EWC nuclear plants |
(39.3) |
(42.4) |
3.2 |
(503.0) |
(81.3) |
(421.7) |
|
Gain on the sale of FitzPatrick |
- |
- |
- |
16.3 |
- |
16.3 |
|
DOE litigation awards |
- |
- |
- |
- |
33.8 |
(33.8) |
|
Income tax effect on adjustments above (b) |
13.7 |
15.0 |
(1.2) |
170.4 |
16.8 |
153.6 |
|
Income tax benefit resulting from FitzPatrick transaction |
- |
- |
- |
44.5 |
- |
44.5 |
|
Total EWC |
(25.5) |
(27.5) |
1.9 |
(271.9) |
(30.7) |
(241.2) |
|
Total special items |
(25.5) |
(27.5) |
1.9 |
(271.9) |
(30.7) |
(241.2) |
|
(After-tax, per share in $) (c) |
||||||
|
EWC |
||||||
|
Items associated with decisions to close or sell EWC nuclear plants |
(0.14) |
(0.15) |
0.01 |
(1.82) |
(0.29) |
(1.53) |
|
Gain on the sale of FitzPatrick |
- |
- |
- |
0.06 |
- |
0.06 |
|
DOE litigation awards |
- |
- |
- |
- |
0.12 |
(0.12) |
|
Income tax benefit resulting from FitzPatrick transaction |
- |
- |
- |
0.25 |
- |
0.25 |
|
Total EWC |
(0.14) |
(0.15) |
0.01 |
(1.51) |
(0.17) |
(1.34) |
|
Total special items |
(0.14) |
(0.15) |
0.01 |
(1.51) |
(0.17) |
(1.34) |
|
Calculations may differ due to rounding | |
|
(b) |
Income tax effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply. |
|
(c) |
EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply to each adjustment and then dividing by the diluted average number of common shares outstanding. |
|
Appendix A-4: Special Items by Income Statement Line Item (shown as positive/(negative) impact on earnings) | ||||||
|
Third Quarter and Year-to-Date 2017 vs. 2016 | ||||||
|
(Pre-tax except for Income taxes and total, $ in millions) | ||||||
|
Third Quarter |
Year-to-Date | |||||
|
2017 |
2016 |
Change |
2017 |
2016 |
Change | |
|
EWC |
||||||
|
Net revenue |
- |
7.5 |
(7.5) |
91.0 |
7.5 |
83.6 |
|
Non-fuel O&M |
(21.6) |
(29.3) |
7.7 |
(179.0) |
(18.1) |
(160.9) |
|
Taxes other than income taxes |
(1.5) |
(1.8) |
0.3 |
(8.1) |
(3.7) |
(4.3) |
|
Asset write-off and impairments |
(16.2) |
(18.8) |
2.6 |
(421.6) |
(33.2) |
(388.4) |
|
Gain on sale of assets |
- |
- |
- |
16.3 |
- |
16.3 |
|
Miscellaneous net (other income) |
- |
- |
- |
14.6 |
- |
14.6 |
|
Income taxes (d) |
13.7 |
15.0 |
(1.2) |
214.8 |
16.8 |
198.0 |
|
Total EWC |
(25.5) |
(27.5) |
1.9 |
(271.9) |
(30.7) |
(241.2) |
|
Total special items (after-tax) |
(25.5) |
(27.5) |
1.9 |
(271.9) |
(30.7) |
(241.2) |
|
Calculations may differ due to rounding | |
|
(d) |
Income taxes include the income tax effect of the special items which were calculated using the estimated income tax rate that is expected to apply to each item. The year-to-date 2017 period also includes the income tax benefit which resulted from the FitzPatrick transaction. |
B: Earnings Variance Analysis
Appendix B-1 and Appendix B-2 provide details of current quarter and year-to-date 2017 versus 2016 as-reported and operational earnings variance analysis for Utility, Parent & Other and EWC.
|
Appendix B-1: As-Reported and Operational EPS Variance Analysis (e) | |||||||||||
|
Third Quarter 2017 vs. 2016 | |||||||||||
|
(After-tax, per share in $, sorted in consolidated operational column, most to least favorable) | |||||||||||
|
Utility |
Parent & Other |
EWC |
Consolidated | ||||||||
|
As- |
Opera- |
As- |
Opera- |
As- Reported |
Opera- |
As- Reported |
Opera- tional | ||||
|
2016 earnings |
2.47 |
2.47 |
(0.35) |
(0.35) |
0.04 |
0.19 |
2.16 |
2.31 | |||
|
Non-fuel O&M |
(0.06) |
(0.06) |
(f) |
(0.01) |
(0.01) |
0.22 |
0.19 |
(g) |
0.15 |
0.12 | |
|
Other income (deductions)–other |
0.07 |
0.07 |
(h) |
(0.01) |
(0.01) |
0.06 |
0.06 |
(i) |
0.12 |
0.12 | |
|
Income taxes – other |
(0.01) |
(0.01) |
0.05 |
0.05 |
(j) |
0.02 |
0.02 |
0.06 |
0.06 | ||
|
Preferred dividend requirements |
0.01 |
0.01 |
- |
- |
- |
- |
0.01 |
0.01 | |||
|
Asset write-offs and impairments |
- |
- |
- |
- |
0.01 |
- |
0.01 |
- | |||
|
Decommissioning expense |
0.01 |
0.01 |
- |
- |
(0.04) |
(0.04) |
(0.03) |
(0.03) | |||
|
Taxes other than income taxes |
(0.06) |
(0.06) |
(k) |
- |
- |
0.02 |
0.02 |
(0.04) |
(0.04) | ||
|
Depreciation/amortization exp. |
(0.05) |
(0.05) |
(l) |
- |
- |
- |
- |
(0.05) |
(0.05) | ||
|
Net revenue |
(0.16) |
(0.16) |
(m) |
- |
- |
(0.02) |
0.01 |
(0.18) |
(0.15) | ||
|
2017 earnings |
2.22 |
2.22 |
(0.32) |
(0.32) |
0.31 |
0.45 |
2.21 |
2.35 | |||
|
Appendix B-2: As-Reported and Operational EPS Variance Analysis (e) | |||||||||||
|
Year-to-Date 2017 vs. 2016 | |||||||||||
|
(After-tax, per share in $, sorted in consolidated operational column, most to least favorable) | |||||||||||
|
Utility |
Parent & Other |
EWC |
Consolidated | ||||||||
|
As- |
Opera- |
As- |
Opera- |
As- Reported |
Opera- |
As- Reported |
Opera- tional | ||||
|
2016 earnings |
5.64 |
5.64 |
(0.92) |
(0.92) |
1.88 |
2.05 |
6.60 |
6.77 | |||
|
Other income (deductions)–other |
0.16 |
0.16 |
(h) |
- |
- |
0.26 |
0.21 |
(i) |
0.42 |
0.37 | |
|
Non-fuel O&M |
(0.35) |
(0.35) |
(f) |
(0.01) |
(0.01) |
(0.12) |
0.46 |
(g) |
(0.48) |
0.10 | |
|
Interest exp. and other charges |
0.05 |
0.05 |
(n) |
(0.02) |
(0.02) |
- |
- |
0.03 |
0.03 | ||
|
Preferred dividend requirements |
0.02 |
0.02 |
- |
- |
- |
- |
0.02 |
0.02 | |||
|
Asset write-offs and impairments |
- |
- |
- |
- |
(1.40) |
- |
(o) |
(1.40) |
- | ||
|
Gain on sale of assets |
- |
- |
- |
- |
0.06 |
- |
(p) |
0.06 |
- | ||
|
Income taxes – other |
(0.79) |
(0.79) |
(q) |
0.01 |
0.01 |
1.02 |
0.77 |
(r) |
0.24 |
(0.01) | |
|
Taxes other than income taxes |
(0.12) |
(0.12) |
(k) |
- |
- |
0.05 |
0.07 |
(s) |
(0.07) |
(0.05) | |
|
Depreciation/amortization exp. |
(0.14) |
(0.14) |
(l) |
- |
- |
(0.01) |
(0.01) |
(0.15) |
(0.15) | ||
|
Decommissioning expense |
- |
- |
- |
- |
(0.28) |
(0.28) |
(t) |
(0.28) |
(0.28) | ||
|
Net revenue |
0.02 |
0.02 |
- |
- |
(0.07) |
(0.37) |
(u) |
(0.05) |
(0.35) | ||
|
2017 earnings |
4.49 |
4.49 |
(0.94) |
(0.94) |
1.39 |
2.90 |
4.94 |
6.45 | |||
|
Calculations may differ due to rounding |
See appendix in the webcast slide presentation for additional details on EWC line item variances.
|
(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; income taxes – other represents income tax differences other than the tax effect of individual line items. |
|
(f) |
The current quarter decrease reflected a reduction in third quarter 2016 expense which resulted from final court decisions in several lawsuits against the DOE related to spent nuclear fuel storage costs. For the quarter and year-to-date, the increases in nuclear generation and refueling outage expenses were partly offset by lower fossil-fueled generation expense. The year-to-date decrease also reflected higher transmission and distribution expenses due to higher vegetation maintenance costs, the first quarter 2016 $18 million (pre-tax) cost deferral at EAI for previously-expensed costs related to post Fukushima and flood barrier compliance and increased compensation and benefits expense due partly to a revision to estimated incentive compensation expense in first quarter 2016. |
|
(g) |
The current quarter and year-to-date variances reflected the sale of FitzPatrick and lower refueling outage expenses (due to impairments). The year-to-date as-reported decrease reflected higher severance and retention expenses which resulted from decisions to close or sell EWC's nuclear plants; the 2017 year-to-date period also included costs associated with the agreement to sell FitzPatrick. These expenses were classified as special items. The year-to-date variances also reflected a second quarter 2016 reduction in expense as a result of final court decisions in litigation against the DOE for the reimbursement of spent nuclear fuel storage costs; a portion of the amount (12 cents) was considered a special item. |
|
(h) |
The current quarter and year-to-date increases reflected higher AFUDC-equity funds due to increased construction work in progress and higher realized gains on decommissioning trust fund investments (substantially offset in net revenue). |
|
(i) |
The current quarter and year-to-date increases reflected higher realized gains on decommissioning trust fund investments. In the year-to-date period, 5 cents was from gains on the receipt of nuclear decommissioning trust funds from NYPA in January 2017 (classified as a special item and excluded from operational EPS). |
|
(j) |
The current quarter increase was due to an inter-company adjustment in third quarter 2016 (offset at EWC). |
|
(k) |
The current quarter and year-to-date decreases were due largely to higher franchise and ad valorem taxes. |
|
(l) |
The current quarter and year-to-date decreases were due partly to a third quarter 2016 reduction in depreciation expense which resulted from final court decisions in several lawsuits against the DOE related to spent nuclear fuel storage costs. Additions to plant in service also contributed. |
|
Utility As-Reported Net Revenue Variance Analysis 2017 vs. 2016 ($ EPS) | ||
|
Third Quarter |
Year-to-Date | |
|
Estimated weather in billed sales |
(0.43) |
(0.46) |
|
Volume/unbilled |
0.20 |
0.12 |
|
Retail electric price |
0.06 |
0.21 |
|
Regulatory sharing |
- |
0.06 |
|
Other |
0.01 |
0.09 |
|
Total |
(0.16) |
0.02 |
|
(m) |
The current quarter decrease was driven by weather, which was negative in third quarter 2017 and positive in third quarter 2016. Partially offsetting the effects of weather, weather-adjusted billed sales volume was higher for residential, commercial and industrial classes. Net revenue also reflected rate changes including EAI's 2017 FRP, ETI's TCRF and the timing of recovery of purchased power capacity costs at ELL through its FRP. |
|
(n) |
The year-to-date increase was partly due to the third quarter 2016 interest expense recorded as a result of a FERC order on EAI's opportunity sales case. Higher AFUDC-borrowed funds due to increased construction work in progress also contributed. |
|
(o) |
The year-to-date decrease was due to nuclear fuel spending, nuclear refueling outage spending and expenditures for capital assets being charged to expense as incurred as a result of the impaired value of the EWC nuclear plants' long-lived assets due to the significantly reduced remaining estimated operating lives (classified as special items). |
|
(p) |
The year-to-date increase was due to a gain on the sale of FitzPatrick (classified as a special item). |
|
(q) |
The year-to-date decrease was due to the second quarter 2016 reversal of a portion of the provision for uncertain tax positions totaling $136 million for positions resolved in the 2010-2011 tax audit. This was partly offset by customer sharing recorded as a regulatory charge ($16 million pre-tax, included in net revenue). |
|
(r) |
The year-to-date increase was largely due to the net effect of income tax elections in second quarter 2017 and 2016. Both tax items resulted from internal reorganizations which, for tax purposes, allowed the company to recognize deductions for decommissioning liabilities today; those deductions created permanent tax losses. The reductions in income tax expense were $373 million in second quarter 2017 and $238 million in second quarter 2016. The as-reported increase also included a tax benefit which resulted from the re-determination of FitzPatrick's tax basis as a result of the sale of the plant in first quarter 2017 (classified as a special item). |
|
(s) |
The year-to-date increase was driven largely by the sale of FitzPatrick. |
|
(t) |
The year-to-date decrease resulted partly from the establishment of decommissioning liabilities at FitzPatrick and Indian Point 3 in August 2016 from the agreement with NYPA to transfer decommissioning liabilities and associated trusts to Entergy. Revisions to the estimated decommissioning liabilities from the early shutdown decisions for Indian Point and Palisades in fourth quarter 2016 also contributed to the decrease. |
|
(u) |
The year-to-date decrease reflected lower volume for nuclear assets, including the absence of FitzPatrick after it was sold in first quarter 2017, partially offset by lower fuel expense. The as-reported variance also reflected cost reimbursements from the buyer related to the FitzPatrick sale (classified as a special item). |
C: Utility Financial and Operating Measures
Appendix C-1 provides a comparative summary of Utility, Parent & Other adjusted earnings and EPS contribution, each of which excludes the effects of special items and normalizes weather and income tax expense.
|
Appendix C-1: Utility, Parent & Other Adjusted Earnings and EPS - Reconciliation of GAAP to Non-GAAP Measures | |||||||
|
Third Quarter and Year-to-Date 2017 vs. 2016 (See Appendix A for details on special items) | |||||||
|
Third Quarter |
Year-to-Date | ||||||
|
2017 |
2016 |
Change |
2017 |
2016 |
Change | ||
|
($ in millions) |
|||||||
|
Utility earnings |
400.8 |
443.3 |
(42.5) |
809.0 |
1,013.8 |
(204.8) | |
|
Parent & Other earnings (loss) |
(57.9) |
(62.8) |
4.9 |
(169.1) |
(165.4) |
(3.8) | |
|
UP&O earnings |
343.0 |
380.5 |
(37.5) |
639.9 |
848.4 |
(208.5) | |
|
Less: |
|||||||
|
Special items |
- |
- |
- |
- |
- |
- | |
|
Estimated weather |
(72.7) |
55.0 |
(127.7) |
(146.1) |
(12.9) |
(133.2) | |
|
Tax effect of estimated weather (v) |
28.0 |
(21.1) |
49.1 |
56.3 |
5.0 |
51.3 | |
|
Estimated weather (after-tax) |
(44.7) |
33.8 |
(78.5) |
(89.9) |
(8.0) |
(81.9) | |
|
Customer sharing |
- |
- |
- |
- |
(16.1) |
16.1 | |
|
Tax effect of customer sharing (v) |
- |
- |
- |
- |
6.2 |
(6.2) | |
|
Other income tax items |
0.2 |
(6.6) |
6.8 |
(8.7) |
131.8 |
(140.5) | |
|
Tax items, net of customer sharing |
0.2 |
(6.6) |
6.8 |
(8.7) |
121.9 |
(130.6) | |
|
UP&O adjusted earnings |
387.5 |
353.2 |
34.3 |
738.4 |
734.4 |
4.0 | |
|
(After-tax, per share in $) (w) |
|||||||
|
Utility earnings |
2.22 |
2.47 |
(0.25) |
4.49 |
5.64 |
(1.15) | |
|
Parent & Other earnings (loss) |
(0.32) |
(0.35) |
0.03 |
(0.94) |
(0.92) |
(0.02) | |
|
UP&O earnings |
1.90 |
2.12 |
(0.22) |
3.55 |
4.72 |
(1.17) | |
|
Less: |
|||||||
|
Special items |
- |
- |
- |
- |
- |
- | |
|
Estimated weather |
(0.25) |
0.18 |
(0.43) |
(0.50) |
(0.04) |
(0.46) | |
|
Other income tax items, net of customer sharing |
- |
(0.04) |
0.04 |
(0.05) |
0.67 |
(0.72) | |
|
UP&O adjusted earnings |
2.15 |
1.98 |
0.17 |
4.10 |
4.09 |
0.01 | |
|
Calculations may differ due to rounding | |
|
(v) |
Income tax effect is calculated by multiplying the pre-tax amount by the estimated income tax rates that are expected to apply to those adjustments. |
|
(w) |
Per share amounts are calculated by dividing the corresponding line item in the chart above by the diluted average number of common shares outstanding over the period. |
Appendix C-2 provides a comparative summary of Utility operating and financial measures.
|
Appendix C-2: Utility Operating and Financial Measures | ||||||||
|
Third Quarter and Year-to-Date 2017 vs. 2016 | ||||||||
|
Third Quarter |
Year-to-Date | |||||||
|
2017 |
2016 |
% Change |
% Weather |
2017 |
2016 |
% Change |
% Weather | |
|
GWh billed |
||||||||
|
Residential |
10,833 |
11,817 |
(8.3) |
3.8 |
25,810 |
27,035 |
(4.5) |
1.1 |
|
Commercial |
8,271 |
8,650 |
(4.4) |
2.5 |
21,595 |
21,938 |
(1.6) |
0.9 |
|
Governmental |
682 |
703 |
(3.0) |
(0.8) |
1,885 |
1,912 |
(1.4) |
(0.7) |
|
Industrial |
12,503 |
12,017 |
4.0 |
4.0 |
35,829 |
34,581 |
3.6 |
3.6 |
|
Total retail sales |
32,289 |
33,187 |
(2.7) |
3.5 |
85,119 |
85,466 |
(0.4) |
2.0 |
|
Wholesale |
3,387 |
2,733 |
23.9 |
8,255 |
9,452 |
(12.7) |
||
|
Total sales |
35,676 |
35,920 |
(0.7) |
93,374 |
94,918 |
(1.6) |
||
|
Number of electric retail customers |
||||||||
|
Residential |
2,472,199 |
2,454,761 |
0.7 |
|||||
|
Commercial |
355,186 |
352,175 |
0.9 |
|||||
|
Governmental |
17,803 |
17,662 |
0.8 |
|||||
|
Industrial |
47,090 |
49,606 |
(5.1) |
|||||
|
Total retail customers |
2,892,278 |
2,874,204 |
0.6 |
|||||
|
Net revenue ($ in millions) |
1,811 |
1,859 |
(2.6) |
4,765 |
4,758 |
0.1 |
||
|
Non-fuel O&M per MWh |
$17.94 |
$17.39 |
3.2 |
$20.22 |
$18.82 |
7.4 |
||
|
Calculations may differ due to rounding |
Appendix C-3 provides a summary of Utility retail sales on a twelve-months-ended basis.
|
Appendix C-3: Utility Retail Sales | ||||
|
Twelve Months Ended September 30 2017 vs. 2016 | ||||
|
Twelve months ended September 30 | ||||
|
2017 |
2016 |
% Change |
% Weather | |
|
GWh billed |
||||
|
Residential |
33,887 |
34,420 |
(1.5) |
1.2 |
|
Commercial |
28,854 |
28,916 |
(0.2) |
1.0 |
|
Governmental |
2,520 |
2,540 |
(0.8) |
(0.2) |
|
Industrial |
46,987 |
45,733 |
2.7 |
2.7 |
|
Total retail sales |
112,248 |
111,609 |
0.6 |
1.7 |
|
Calculations may differ due to rounding |
|
(x) |
The effects of weather were estimated using monthly heating degree days and cooling degree days from certain locations within each jurisdiction and comparing to "normal" weather based on 20-year historical data. The models used to estimate weather are updated periodically and subject to change. |
D: EWC Financial and Operating Measures
Appendix D-1 provides a comparative summary of EWC operational adjusted EBITDA (non-GAAP).
|
Appendix D-1: EWC Operational Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures | ||||||
|
Third Quarter and Year-to-Date 2017 vs. 2016 | ||||||
|
($ in millions) |
Third Quarter |
Year-to-Date | ||||
|
2017 |
2016 |
Change |
2017 |
2016 |
Change | |
|
Net income |
56 |
8 |
48 |
252 |
339 |
(87) |
|
Add back: interest expense |
5 |
5 |
- |
18 |
18 |
- |
|
Add back: income taxes |
26 |
6 |
20 |
(508) |
(177) |
(331) |
|
Add back: depreciation and amortization |
52 |
53 |
(1) |
157 |
155 |
2 |
|
Subtract: interest and investment income |
41 |
27 |
14 |
143 |
87 |
56 |
|
Add back: decommissioning expense |
60 |
47 |
13 |
195 |
117 |
78 |
|
Adjusted EBITDA (non-GAAP) |
158 |
93 |
65 |
(29) |
365 |
(394) |
|
Add back pre-tax special items for: |
||||||
|
Items associated with decisions to close or sell EWC nuclear plants |
39 |
42 |
(3) |
503 |
81 |
422 |
|
Gain on the sale of FitzPatrick |
- |
- |
- |
(16) |
- |
(16) |
|
DOE litigation awards |
- |
- |
- |
- |
(34) |
34 |
|
Operational adjusted EBITDA (non-GAAP) |
197 |
135 |
62 |
458 |
412 |
46 |
|
Calculations may differ due to rounding |
Appendix D-2 provides a comparative summary of EWC operating and financial measures.
|
Appendix D-2: EWC Operating and Financial Measures | ||||||
|
Third Quarter and Year-to-Date 2017 vs. 2016 (See Appendix G for reconciliation of GAAP to non-GAAP measures) | ||||||
|
Third Quarter |
Year-to-Date | |||||
|
2017 |
2016 |
% Change |
2017 |
2016 |
% Change | |
|
Owned capacity (MW) (y) |
3,962 |
4,880 |
(18.8) | |||
|
GWh billed |
8,234 |
9,372 |
(12.1) |
22,616 |
26,484 |
(14.6) |
|
As-reported net revenue ($ in millions) |
392 |
396 |
(1.0) |
1,136 |
1,156 |
(1.7) |
|
Operational net revenue (non-GAAP) ($ in millions) |
392 |
389 |
0.8 |
1,045 |
1,148 |
(9.0) |
|
EWC Nuclear Fleet |
||||||
|
Capacity factor |
98% |
90% |
8.9 |
79% |
85% |
(7.1) |
|
GWh billed |
7,633 |
8,674 |
(12.0) |
20,861 |
24,670 |
(15.4) |
|
Production cost per MWh |
$14.91 |
$23.77 |
(37.3) |
$18.68 |
$22.91 |
(18.5) |
|
Average energy/capacity revenue per MWh (z) |
$48.82 |
$47.41 |
3.0 |
$51.82 |
$48.99 |
5.8 |
|
As-reported net revenue ($ in millions) |
391 |
396 |
(1.3) |
1,129 |
1,151 |
(1.9) |
|
Operational net revenue (non-GAAP) ($ in millions) |
391 |
389 |
0.5 |
1,038 |
1,143 |
(9.2) |
|
Refueling outage days |
||||||
|
FitzPatrick |
- |
- |
42 |
- |
||
|
Indian Point 2 |
- |
- |
- |
102 |
||
|
Indian Point 3 |
- |
- |
66 |
- |
||
|
Palisades |
- |
- |
27 |
- |
||
|
Pilgrim |
- |
- |
43 |
- |
||
|
(y) |
FitzPatrick was sold on 3/31/17 and investments in wind generation were sold in November 2016. |
|
(z) |
Average energy and capacity revenue per MWh excluding FitzPatrick was $49.24 in third quarter 2017, $50.06 in year-to-date 2017 and $53.73 in year-to-date 2016. |
See appendix in the webcast slide presentation for EWC hedging and price disclosures.
E: Consolidated Financial Measures
Appendix E provides comparative financial measures. Financial measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP financial measures.
|
Appendix E: GAAP and Non-GAAP Financial Measures | |||
|
Third Quarter 2017 vs. 2016 (See Appendix G for reconciliation of GAAP to non-GAAP financial measures) | |||
|
For 12 months ending September 30 |
2017 |
2016 |
Change |
|
GAAP Measures |
|||
|
ROIC – as-reported |
(1.8%) |
7.0% |
(8.8%) |
|
ROE – as-reported |
(9.4%) |
13.4% |
(22.8%) |
|
Book value per share |
$48.38 |
$56.21 |
($7.83) |
|
End of period shares outstanding (in millions) |
179.6 |
179.1 |
0.5 |
|
Non-GAAP Measures |
|||
|
ROIC – operational |
6.5% |
7.9% |
(1.4%) |
|
ROE – operational |
13.0% |
15.6% |
(2.6%) |
|
As of September 30 ($ in millions) |
2017 |
2016 |
Change |
|
GAAP Measures |
|||
|
Cash and cash equivalents |
546 |
1,307 |
(761) |
|
Revolver capacity |
4,213 |
4,243 |
(30) |
|
Commercial paper |
1,272 |
264 |
1,008 |
|
Total debt |
16,224 |
15,073 |
1,151 |
|
Securitization debt |
582 |
698 |
(116) |
|
Debt to capital |
64.6% |
59.4% |
5.2% |
|
Off-balance sheet liabilities: |
|||
|
Debt of joint ventures – Entergy's share |
68 |
74 |
(6) |
|
Leases – Entergy's share |
397 |
359 |
38 |
|
Power purchase agreements accounted for as leases |
166 |
195 |
(29) |
|
Total off-balance sheet liabilities |
631 |
628 |
3 |
|
Non-GAAP Financial Measures |
|||
|
Debt to capital, excluding securitization debt |
63.8% |
58.3% |
5.5% |
|
Gross liquidity |
4,759 |
5,550 |
(791) |
|
Net debt to net capital, excluding securitization debt |
62.9% |
55.9% |
7.0% |
|
Parent debt to total debt, excluding securitization debt |
20.9% |
19.4% |
1.5% |
|
Debt to operational adjusted EBITDA, excluding securitization debt |
4.6x |
4.2x |
0.4x |
|
Operational FFO to debt, excluding securitization debt |
15.3% |
21.1% |
(5.8%) |
F: Definitions and Abbreviations and Acronyms
Appendix F-1 provides definitions of certain operating measures, as well as GAAP and non-GAAP financial measures. Non-GAAP financial measures remove the effects of financial events that are not routine from commonly used financial measures.
|
Appendix F-1: Definitions | |
|
Utility Operating and Financial Measures | |
|
GWh billed |
Total number of GWh billed to retail and wholesale customers |
|
Net revenue |
Operating revenue less fuel, fuel related expenses and gas purchased for resale, purchased power and other regulatory charges (credits) – net |
|
Non-fuel O&M |
Operation and maintenance expenses excluding fuel, fuel-related expenses and gas purchased for resale and purchased power |
|
Non-fuel O&M per MWh |
Non-fuel O&M per MWh of billed sales |
|
Number of retail customers |
Number of customers at the end of the period |
|
EWC Operating and Financial Measures | |
|
Average revenue under contract per kW-month (applies to capacity contracts only) |
Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and/or auction awards |
|
Average revenue per MWh on contracted volumes |
Revenue on a per unit basis at which generation output reflected in contracts is expected to be sold to third parties (including offsetting positions) at the minimum contract prices and at forward market prices at a point in time, given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market PPA for Palisades; revenue will fluctuate due to factors including market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at the time of option expiration, costs to convert firm LD to unit-contingent and other risk management costs |
|
Bundled capacity and energy contracts |
A contract for the sale of installed capacity and related energy, priced per MWh sold |
|
Capacity contracts |
A contract for the sale of the installed capacity product in regional markets managed by ISO New England, NYISO and MISO |
|
Capacity factor |
Normalized percentage of the period that the nuclear plants generate power |
|
Expected sold and market total revenue per MWh |
Total energy and capacity revenue on a per unit basis at which total planned generation output and capacity is expected to be sold given contract terms and market prices at a point in time, including estimates for market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at time of option expiration, costs to convert Firm LD to unit-contingent and other risk management costs, divided by total planned MWh of generation, excluding the revenue associated with the amortization of the Palisades below-market PPA |
|
Firm LD |
Transaction that requires receipt or delivery of energy at a specified delivery point (usually at a market hub not associated with a specific asset) or settles financially on notional quantities; if a party fails to deliver or receive energy, defaulting party must compensate the other party as specified in the contract, a portion of which may be capped through the use of risk management products |
|
Appendix F-1: Definitions | ||
|
EWC Operating and Financial Measures (continued) | ||
|
GWh billed |
Total number of GWh billed to customers and financially-settled instruments (does not include amounts from investment in wind generation that was accounted for under the equity method of accounting and which was sold in November 2016) | |
|
Net revenue |
Operating revenue less fuel, fuel-related expenses and purchased power | |
|
Offsetting positions |
Transactions for the purchase of energy, generally to offset a Firm LD transaction | |
|
Owned capacity (MW) |
Installed capacity owned by EWC | |
|
Percent of capacity sold forward |
Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions | |
|
Percent of planned generation under contract |
Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts or options that mitigate price uncertainty that may or may not require regulatory approval or approval of transmission rights or other conditions precedent; positions that are no longer classified as hedges are netted in the planned generation under contract | |
|
Planned net MW in operation |
Amount of installed capacity to generate power and/or sell capacity, assuming intent to shutdown Pilgrim (May 31, 2019), Palisades (not later than May 31, 2022), Indian Point 2 (April 30, 2020) and Indian Point 3 (April 30, 2021) | |
|
Planned TWh of generation |
Amount of output expected to be generated by EWC resources considering plant operating characteristics and outage schedules, assuming intent to shutdown Pilgrim (May 31, 2019), Palisades (not later than May 31, 2022), Indian Point 2 (April 30, 2020) and Indian Point 3 (April 30, 2021) | |
|
Production cost per MWh |
Fuel and non-fuel O&M expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation), excluding special items | |
|
Refueling outage days |
Number of days lost for a scheduled refueling and maintenance outage during the period | |
|
Unit-contingent |
Transaction under which power is supplied from a specific generation asset; if the asset is in operational outage, seller is generally not liable to buyer for any damages, unless the contract specifies certain conditions such as an availability guarantee | |
|
Financial Measures – GAAP | ||
|
Book value per share |
End of period common equity divided by end of period shares outstanding | |
|
Debt of joint ventures – Entergy's share |
Entergy's share of debt issued by business joint ventures at EWC | |
|
Debt to capital ratio |
Total debt divided by total capitalization | |
|
Leases – Entergy's share |
Operating leases held by subsidiaries capitalized at implicit interest rate | |
|
Revolver capacity |
Amount of undrawn capacity remaining on corporate and subsidiary revolvers, including Entergy Nuclear Vermont Yankee | |
|
ROIC – as-reported |
12-months rolling net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital | |
|
ROE – as-reported |
12-months rolling net income attributable to Entergy Corporation divided by average common equity | |
|
Securitization debt |
Debt associated with securitization bonds issued to recover storm costs from hurricanes Rita, Ike and Gustav at ETI and Hurricane Isaac at ENOI; the 2009 ice storm at EAI and investment recovery of costs associated with the cancelled Little Gypsy repowering project at ELL | |
|
Appendix F-1: Definitions | |
|
Financial Measures - Non-GAAP | |
|
Total debt |
Sum of short-term and long-term debt, notes payable and commercial paper and capital leases on the balance sheet |
|
Adjusted EBITDA |
Earnings before interest, depreciation and amortization and income taxes and excluding decommissioning expense; for Entergy consolidated, also excludes AFUDC-equity funds and subtracts securitization proceeds |
|
Utility, Parent & Other |
Combines the Utility segment with Parent & Other, which is all of Entergy excluding the EWC segment |
|
Adjusted EPS |
As-reported EPS excluding special items and normalizing weather and income taxes |
|
Debt to capital ratio, excluding securitization debt |
Total debt divided by total capitalization, excluding securitization debt |
|
Debt to operational adjusted EBITDA, excluding securitization debt |
End of period total debt excluding securitization debt divided by 12-months rolling operational adjusted EBITDA |
|
FFO |
OCF less AFUDC-borrowed funds, working capital items in OCF (receivables, fuel inventory, accounts payable, prepaid taxes and taxes accrued, interest accrued and other working capital accounts) and securitization regulatory charges |
|
Operational FFO to debt, excluding securitization debt |
12-months rolling operational FFO as a percentage of end of period total debt excluding securitization debt |
|
Gross liquidity |
Sum of cash and revolver capacity |
|
Operational adjusted EBITDA |
Adjusted EBITDA excluding effects of special items |
|
Operational EPS |
As-reported EPS excluding special items |
|
Operational FFO |
FFO excluding the effects of special items |
|
Parent debt to total debt ratio, excluding securitization debt |
End of period Entergy Corporation debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of consolidated total debt, excluding securitization debt |
|
Net debt to net capital ratio, excluding securitization debt |
Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt |
|
ROIC – operational |
12-months rolling operational net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital |
|
ROE – operational |
12-months rolling operational net income attributable to Entergy Corporation divided by average common equity |
Appendix F-2 explains abbreviations and acronyms used in the quarterly earnings materials.
|
Appendix F-2: Abbreviations and Acronyms | |||
|
ADIT |
Accumulated deferred income taxes |
Michigan PSC |
Michigan Public Service Commission |
|
AFUDC - borrowed funds |
Allowance for borrowed funds used during construction |
MISO |
Midcontinent Independent System Operator, Inc. |
|
AFUDC - equity funds |
Allowance for equity funds used during construction |
Moody's |
Moody's Investor Service |
|
ALJ |
Administrative Law Judge |
MPSC |
Mississippi Public Service Commission |
|
AMI |
Advanced metering infrastructure |
MTEP |
MISO Transmission Expansion Planning |
|
APSC |
Arkansas Public Service Commission |
Nelson 6 |
Unit 6 of Roy S. Nelson plant (coal) |
|
ARO |
Asset retirement obligation |
NEPOOL |
New England Power Pool |
|
CCGT |
Combined cycle gas turbine |
Ninemile 6 |
Ninemile Point Unit 6 (CCGT) |
|
CCNO |
Council of the City of New Orleans, Louisiana |
Non-fuel O&M |
Non-fuel operation and maintenance expense |
|
COD |
Commercial operation date |
NDT |
Nuclear decommissioning trust |
|
CT |
Simple cycle combustion turbine |
NRC |
Nuclear Regulatory Commission |
|
CZM |
Coastal Zone Management |
NYISO |
New York Independent System Operator, Inc. |
|
DCRF |
Distribution cost recovery factor |
NYPA |
New York Power Authority |
|
DOE |
U.S. Department of Energy |
NYSE |
New York Stock Exchange |
|
EAI |
Entergy Arkansas, Inc. |
O&M |
Operation and maintenance expense |
|
EBITDA |
Earnings before interest, income taxes, depreciation and amortization |
OCF |
Net cash flow provided by operating activities |
|
EEI |
Edison Electric Institute |
OpCo |
Operating Company |
|
ELL |
Entergy Louisiana, LLC |
OPEB |
Other post-employment benefits |
|
EMI |
Entergy Mississippi, Inc. |
Palisades |
Palisades Power Plant (nuclear) |
|
ENOI |
Entergy New Orleans, Inc. |
PSDAR |
Post-Shutdown Decommissioning Activities Report |
|
ENVY |
Entergy Nuclear Vermont Yankee |
Pilgrim |
Pilgrim Nuclear Power Station (nuclear) |
|
ESI |
Entergy Services, Inc. |
PPA |
Power purchase agreement or purchased power agreement |
|
EPS |
Earnings per share |
PUCT |
Public Utility Commission of Texas |
|
ETI |
Entergy Texas, Inc. |
RFP |
Request for proposal |
|
ETR |
Entergy Corporation |
RISEC |
Rhode Island State Energy Center (CCGT) |
|
EWC |
Entergy Wholesale Commodities |
ROE |
Return on equity |
|
FERC |
Federal Energy Regulatory Commission |
ROIC |
Return on invested capital |
|
FFO |
Funds from operations |
RPCE |
Rough production cost equalization |
|
Firm LD |
Firm liquidated damages |
RS Cogen |
RS Cogen facility (CCGT cogen) |
|
FitzPatrick |
James A. FitzPatrick Nuclear Power Plant (nuclear, sold March 31, 2017) |
RSP |
Rate Stabilization Plan (ELL Gas) |
|
FRP |
Formula rate plan |
S&P |
Standard & Poor's |
|
GAAP |
U.S. generally accepted accounting principles |
SEC |
U.S. Securities and Exchange Commission |
|
Grand Gulf |
Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by System Energy |
SERI |
System Energy Resources, Inc. |
|
Indian Point 1 |
Indian Point Energy Center Unit 1 (nuclear) |
SPDES |
State Pollutant Discharge Elimination System |
|
Indian Point 2 |
Indian Point Energy Center Unit 2 (nuclear) |
TCRF |
Transmission cost recovery factor |
|
Indian Point 3 |
Indian Point Energy Center Unit 3 (nuclear) |
Top Deer |
Top Deer Wind Ventures, LLC |
|
IPEC |
Indian Point Energy Center (nuclear) |
Union |
Union Power Station (CCGT) |
|
ISO |
Independent system operator |
UP&O |
Utility, Parent & Other |
|
ISES |
Independence Steam Electric Station (coal) |
VY |
Vermont Yankee Nuclear Power Station (nuclear) |
|
LPSC |
Louisiana Public Service Commission |
WACC |
Weighted-average cost of capital |
|
LTM |
Last twelve months |
WQC |
Water Quality Certification |
|
YOY |
Year-over-year | ||
G: GAAP to Non-GAAP Reconciliations
Appendix G-1, Appendix G-2 and Appendix G-3 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure.
|
Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures - EWC Operational Net Revenue | |||||
|
($ in millions except where noted) |
Third Quarter |
Year-to-Date | |||
|
2017 |
2016 |
2017 |
2016 | ||
|
As-reported net revenue |
(A) |
392 |
396 |
1,136 |
1,156 |
|
Special items included in net revenue: |
|||||
|
Items associated with decisions to close or sell EWC nuclear plants |
- |
8 |
91 |
8 | |
|
Total special items included in net revenue |
(B) |
- |
8 |
91 |
8 |
|
Operational net revenue (non-GAAP) |
(A-B) |
392 |
389 |
1,045 |
1,148 |
|
EWC Nuclear |
|||||
|
As-reported EWC Nuclear net revenue |
(C) |
391 |
396 |
1,129 |
1,151 |
|
Special items included in EWC Nuclear net revenue: |
|||||
|
Items associated with decisions to close or sell EWC nuclear plants |
- |
8 |
91 |
8 | |
|
Total special items included in EWC nuclear net revenue |
(D) |
- |
8 |
91 |
8 |
|
Operational EWC nuclear net revenue (non-GAAP) |
(C-D) |
391 |
389 |
1,038 |
1,143 |
|
Calculations may differ due to rounding |
|
Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures - ROIC, ROE | |||
|
($ in millions except where noted) |
Third Quarter | ||
|
2017 |
2016 | ||
|
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months |
(A) |
(878) |
1,285 |
|
Preferred dividends |
14 |
21 | |
|
Tax effected interest expense |
404 |
407 | |
|
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months adjusted for preferred dividends and tax effected interest expense |
(B) |
(460) |
1,713 |
|
Special items in prior quarters |
(2,071) |
(186) | |
|
Items associated with decisions to close or sell EWC nuclear plants |
(25) |
(27) | |
|
Total special items, rolling 12 months |
(C) |
(2,097) |
(212) |
|
Operational earnings, rolling 12 months adjusted for preferred dividends and tax effected interest expense (non-GAAP) |
(B-C) |
1,637 |
1,925 |
|
Operational earnings, rolling 12 months (non-GAAP) |
(A-C) |
1,219 |
1,497 |
|
Average invested capital |
(D) |
25,246 |
24,443 |
|
Average common equity |
(E) |
9,380 |
9,613 |
|
ROIC – as-reported |
(B/D) |
(1.8%) |
7.0% |
|
ROIC – operational |
[(B-C)/D] |
6.5% |
7.9% |
|
ROE – as-reported |
(A/E) |
(9.4%) |
13.4% |
|
ROE – operational |
[(A-C)/E] |
13.0% |
15.6% |
|
Calculations may differ due to rounding |
|
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures – Debt Ratios excluding Securitization Debt; Gross Liquidity; Debt to Operational Adjusted EBITDA, excluding Securitization Debt; Operational FFO to Debt Ratio, excluding Securitization Debt | |||
|
($ in millions except where noted) |
Third Quarter | ||
|
2017 |
2016 | ||
|
Total debt |
(A) |
16,224 |
15,073 |
|
Less securitization debt |
(B) |
582 |
698 |
|
Total debt, excluding securitization debt |
(C) |
15,642 |
14,375 |
|
Less cash and cash equivalents |
(D) |
546 |
1,307 |
|
Net debt, excluding securitization debt |
(E) |
15,096 |
13,068 |
|
Total capitalization |
(F) |
25,118 |
25,375 |
|
Less securitization debt |
(B) |
582 |
698 |
|
Total capitalization, excluding securitization debt |
(G) |
24,536 |
24,677 |
|
Less cash and cash equivalents |
(D) |
546 |
1,307 |
|
Net capital, excluding securitization debt |
(H) |
23,990 |
23,370 |
|
Debt to capital |
(A/F) |
64.6% |
59.4% |
|
Debt to capital, excluding securitization debt |
(C/G) |
63.8% |
58.3% |
|
Net debt to net capital, excluding securitization debt |
(E/H) |
62.9% |
55.9% |
|
Revolver capacity |
(I) |
4,213 |
4,243 |
|
Gross liquidity |
(D+I) |
4,759 |
5,550 |
|
Entergy Corporation notes: |
|||
|
Due January 2017 |
- |
500 | |
|
Due September 2020 |
450 |
450 | |
|
Due July 2022 |
650 |
650 | |
|
Due September 2026 |
750 |
750 | |
|
Total parent long-term debt |
(J) |
1,850 |
2,350 |
|
Revolver draw |
(K) |
150 |
180 |
|
Commercial paper |
(L) |
1,272 |
264 |
|
Total parent debt |
(J)+(K)+(L) |
3,272 |
2,794 |
|
Parent debt to total debt, excluding securitization debt |
[((J)+(K)+(L))/(C)] |
20.9% |
19.4% |
|
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures – Debt Ratios excluding Securitization Debt; Gross Liquidity; Debt to Operational Adjusted EBITDA, excluding Securitization Debt; Operational FFO to Debt Ratio, excluding Securitization Debt (continued) | |||
|
($ in millions except where noted) |
Third Quarter | ||
|
2017 |
2016 | ||
|
Total debt |
(A) |
16,224 |
15,073 |
|
Less securitization debt |
(B) |
582 |
698 |
|
Total debt, excluding securitization debt |
(C) |
15,642 |
14,375 |
|
As-reported consolidated net income (loss), rolling 12 months |
(864) |
1,306 | |
|
Add back (rolling 12 months): |
|||
|
Interest expense |
656 |
661 | |
|
Income taxes |
(1,054) |
(377) | |
|
Depreciation and amortization |
1,389 |
1,340 | |
|
Regulatory charges (credits) |
(21) |
196 | |
|
Decommissioning expense |
407 |
303 | |
|
Subtract (rolling 12 months): |
|||
|
Securitization proceeds |
144 |
140 | |
|
Interest and investment income |
223 |
157 | |
|
AFUDC-equity funds |
85 |
62 | |
|
Adjusted EBITDA, rolling 12 months (non-GAAP) |
(D) |
61 |
3,070 |
|
Add back special items (rolling 12 months pre-tax): |
|||
|
Items associated with decisions to close or sell EWC nuclear plants |
3,331 |
482 | |
|
DOE litigation awards |
- |
(34) | |
|
Top Deer investment impairment |
- |
37 | |
|
Gain on the sale of RISEC |
- |
(154) | |
|
Gain on the sale of FitzPatrick |
(16) |
- | |
|
Operational adjusted EBITDA, rolling 12 months (non-GAAP) |
(E) |
3,376 |
3,401 |
|
Debt to operational adjusted EBITDA, excluding securitization debt |
(C)/(E) |
4.6x |
4.2x |
|
Net cash flow provided by operating activities, rolling 12 months |
(F) |
2,459 |
3,194 |
|
AFUDC-borrowed funds, rolling 12 months |
(G) |
(41) |
(32) |
|
Working capital items in net cash flow provided by operating activities (rolling 12 months): |
|||
|
Receivables |
(24) |
(10) | |
|
Fuel inventory |
30 |
24 | |
|
Accounts payable |
(1) |
55 | |
|
Prepaid taxes and taxes accrued |
9 |
3 | |
|
Interest accrued |
- |
9 | |
|
Other working capital accounts |
28 |
(59) | |
|
Securitization regulatory charges |
114 |
111 | |
|
Total |
(H) |
156 |
133 |
|
FFO, rolling 12 months |
(F)+(G)-(H) |
2,262 |
3,029 |
|
Add back special items (rolling 12 months pre-tax): |
|||
|
Items associated with decisions to close or sell EWC nuclear plants |
126 |
6 | |
|
Operational FFO, rolling 12 months |
(I) |
2,388 |
3,035 |
|
Operational FFO to debt, excluding securitization debt |
(I)/(C) |
15.3% |
21.1% |
|
Calculations may differ due to rounding |
View original content with multimedia:http://www.prnewswire.com/news-releases/entergy-reports-third-quarter-earnings-300541865.html
SOURCE Entergy Corporation
Article Date
10/24/2017Entergy Announces Third Quarter Earnings Conference Call
Source: PR Newswire
NEW ORLEANS, Oct. 17, 2017 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) will report third quarter earnings results before market open on Tuesday, Oct. 24, 2017, and host a teleconference from 10:00 a.m. to 10:40 a.m. CT that day to discuss the earnings announcement and the company's financial performance. The teleconference may be accessed by dialing 844-309-6569, conference ID 56951898, no more than 15 minutes prior to the start of the call or by visiting Entergy's website at entergy.com. From time to time, Entergy posts new and/or revised materials on its website and on social media, and anticipates doing so in connection with this event. The presentation slides will be available on Entergy's website and the Entergy Investor Relations mobile web app at iretr.com before market open on the day of the call. A replay of the teleconference will be available until Oct. 31, 2017, by dialing 855-859-2056, confirmation ID 56951898.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $10.8 billion and nearly 13,000 employees.
Additional investor information can be accessed at entergy.com/investor_relations
View original content with multimedia:http://www.prnewswire.com/news-releases/entergy-announces-third-quarter-earnings-conference-call-300538087.html
SOURCE Entergy Corporation
Article Date
10/17/2017Entergy to Continue Operating Palisades Power Plant Until Spring 2022
Source: PR Newswire
COVERT, Mich., Sept. 28, 2017 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) announced today that it plans to operate Palisades Power Plant in Covert, Michigan, until the spring of 2022, under the existing Power Purchase Agreement (PPA) with Consumers Energy.
"In light of the Michigan Public Service Commission's order issued September 22, which granted Consumers Energy recovery of only $136.6 million of the $172 million it requested for the buyout of the PPA, the parties have agreed to terminate the buyout transaction," said Charlie Arnone, site vice president and Entergy's top official at Palisades.
Today's announcement reverses Entergy's December 2016 decision to close Palisades on October 1, 2018, but Entergy remains committed to its strategy of exiting the merchant nuclear power business.
"We greatly appreciate the continued patience of our employees and the local community in Southwest Michigan throughout this regulatory process, and we will continue to focus on the plant's safe and reliable operations," Arnone added. "Entergy will continue to make all necessary investments and maintain appropriate staffing, in accordance with strict licensing standards."
Financial Implications
The impact of the decision on free cash flow is expected to be positive $100 million to $150 million compared to the PPA amendment with Consumers Energy. In addition, due to the change in operating assumptions, under applicable accounting rules we no longer expect fuel, refueling outage costs and capital expenditures to be expensed as incurred. Instead, these expenditures will be amortized or depreciated over their useful lives and the expense will be included in operational results.
About Palisades and Entergy Corp.
The Palisades Power Plant employs about 600 workers and has been a part of the Van Buren County community since it began generating electricity in 1971. The plant generates 811 megawatts of virtually carbon-free electricity, enough to power more than 800,000 homes.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $10.8 billion and nearly 13,000 employees.
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, Entergy's statements of its plans, beliefs or expectations in this news release regarding financial impact of continued operation of the Palisades Power Plant. 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 rate proceedings, formula rate plans and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory costs and risks, including any changes resulting from the nuclear crisis in Japan following its catastrophic earthquake and tsunami; (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 strategic transactions that Entergy or its subsidiaries may undertake, including the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental or energy policies; and (i) the effects of technological changes and changes in commodity markets, capital markets or economic conditions, during the periods covered by the forward-looking statements.
Additional information is available at entergy.com and palisadespower.com.
View original content with multimedia:http://www.prnewswire.com/news-releases/entergy-to-continue-operating-palisades-power-plant-until-spring-2022-300527496.html
SOURCE Entergy Corporation
Article Date
9/28/2017Entergy Launches Enriched Online Property Search Tool
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, Sept. 26, 2017 /PRNewswire/ -- In today's competitive market for cultivating economic impact and job growth, the region now has a boosted advantage when it comes to attracting companies and industries. Entergy Corporation (NYSE: ETR) today announced the revamp of its online commercial database, a free resource that makes it easier for businesses to search for and secure prospective buildings and sites. In a few easy clicks, companies can complete a property search based on their diverse drivers, such as needing a building that has 50,000 people within a 30-minute drive time or having access to a navigable waterway.
"Entergy is proud to provide our economic development partners with this new and enhanced Site Selection Center," said Paula Waters, vice president, sales and business development services at Entergy. "We are committed to fostering economic growth in our region, and we know this new website will assist in driving viable businesses and industries to the region."
Designed to meet the modern needs of economic development allies, the Site Selection Center is an easy-to-use platform with robust search and property management functionality. Playing an integral role in Entergy's recent recognition by Site Selection magazine as one of the nation's Top 10 utilities in economic development for the 10th consecutive year, the revamped site uses a combination of geographic information system technology, business analysis and demographic data to give users the ability to quickly access available commercial sites and resources within Entergy's region.
Originally launched in 2008, the Site Selection Center quickly became an important tool used by economic developers, site selection consultants and businesses throughout the country. After the combination of years of experience gathering data and feedback from partners, Entergy's new Site Selection Center is updated to include some of the following enhanced features:
Entergy's economic development group spans the region – Arkansas, Louisiana, Mississippi and Texas – and is home to the largest industrial base in the U.S. It offers a rare combination of resources: a central U.S. location with direct access to raw materials and markets, a favorable business climate, an expansive infrastructure, a skilled and affordable workforce and very competitive utility costs. Currently, there are more than 2,800 commercial buildings and sites available in Entergy's region. To learn more about the Site Selection Center or Entergy's efforts to further economic growth, visit goentergy.com.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $10.8 billion and nearly 13,000 employees.
Entergy's online address is: entergy.com
View original content with multimedia:http://www.prnewswire.com/news-releases/entergy-launches-enriched-online-property-search-tool-300525956.html
SOURCE Entergy Corporation
Article Date
9/26/20179/19/2017 - Entergy Corporation Chairman and CEO to Speak at Wolfe Research Utilities and Power Leaders Conference
Entergy Corporation Chairman and CEO to Speak at Wolfe Research Utilities and Power Leaders Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, Sept. 19, 2017 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) Chairman and Chief Executive Officer Leo Denault plans to provide a presentation as part of a panel discussion on Tuesday, Sept. 26, 2017, during the Wolfe Research Utilities and Power Leaders Conference. The presentation is expected to start at approximately 11:00 a.m. ET. A live webcast will be available on the Investor Relations section of Entergy's corporate website at entergy.com. A replay of the webcast will be available and archived on the website for approximately 30 days. Presentation slides will be posted on the Investor Relations section of Entergy's corporate website at entergy.com before market open on Tuesday, Sept. 26. The webcast and presentation slides will also be available on the Entergy Investor Relations mobile web app at iretr.com.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $10.8 billion and nearly 13,000 employees.
Additional investor information can be accessed online at
entergy.com/investor_relations.
View original content with multimedia:http://www.prnewswire.com/news-releases/entergy-corporation-chairman-and-ceo-to-speak-at-wolfe-research-utilities-and-power-leaders-conference-300522370.html
SOURCE Entergy Corporation
Article Date
9/19/2017Entergy Corporation Chairman and CEO to Speak at Barclays CEO Energy-Power Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, Aug. 31, 2017 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) Chairman and Chief Executive Officer Leo Denault plans to provide a presentation on Thursday, Sept. 7, 2017, during the Barclays CEO Energy-Power Conference. The presentation is expected to start at approximately 7:45 a.m. ET. A live webcast will be available on the Investor Relations section of Entergy's corporate website at entergy.com. A replay of the webcast will be available and archived on the website for approximately 30 days. Presentation slides will be posted on the Investor Relations section of Entergy's corporate website at entergy.com before market open on Thursday, Sept. 7. The webcast and presentation slides will also be available on the Entergy Investor Relations mobile web app at iretr.com.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $10.8 billion and nearly 13,000 employees.
Additional investor information can be accessed online at
entergy.com/investor_relations.
View original content with multimedia:http://www.prnewswire.com/news-releases/entergy-corporation-chairman-and-ceo-to-speak-at-barclays-ceo-energy-power-conference-300512329.html
SOURCE Entergy Corporation
Article Date
8/31/2017Montgomery County Power Station Set to Power Texas for Tomorrow
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
THE WOODLANDS, Texas, July 28, 2017 /PRNewswire/ -- Paving the way for a new source of local, reliable power, the Public Utility Commission of Texas today voted to approve a proposal by Entergy Texas, Inc. to build the Montgomery County Power Station (MCPS), a 993 megawatt combined-cycle natural gas power plant in Willis, Texas. The PUCT's action is a major step towards providing the next generation of clean and efficient energy for Southeast Texas.
"Southeast Texas has some of the fastest growing areas in the nation. Entergy Texas is committed to meeting our customers' energy needs now and in the future. This investment will provide customers a new source of reliable power that reduces costs and lowers emissions, while also benefitting the southeast Texas economy," said Sallie Rainer, president and CEO of Entergy Texas.
Entergy Texas filed its proposal to construct the Montgomery County Power Station in October 2016. Following that filing, the company reached an unopposed agreement with parties in the case – including entities representing consumers and cities across Entergy Texas' service area – on the need and benefits of MCPS.
Construction of the facility provides benefits for:
"We are very pleased that this project received support of the parties and over 70 cities in the region. This overwhelming support demonstrates that the Commission and stakeholders recognize the importance of a modern and efficient plant such as this to the region and to Texas," Rainer said. "We look forward to breaking ground in the first quarter of 2019 and expect to have the unit complete by summer 2021."
Entergy Texas, Inc. provides electricity to more than 440,000 customers in 27 counties. Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy Texas is a subsidiary of Entergy Corporation.
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $10.8 billion and nearly 13,000 employees.
entergytexas.com
Twitter: @EntergyTX
Facebook: Facebook.com/EntergyTX
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SOURCE Entergy Corporation
Article Date
7/28/2017Entergy Announces Second Quarter Earnings Conference Call
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, July 27, 2017 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) will report second quarter earnings results before market open on Wednesday, August 2, 2017, and host a teleconference at 9 a.m. CT that day to discuss the earnings announcement and the company's financial performance. The teleconference may be accessed by dialing 844-309-6569, conference ID 56948204, no more than 15 minutes prior to the start of the call or by visiting Entergy's website at entergy.com. From time to time, Entergy posts new and/or revised materials on its website and on social media, and anticipates doing so in connection with this event. The presentation slides will be available on Entergy's website and the Entergy Investor Relations mobile web app at iretr.com before market open on the day of the call. A replay of the teleconference will be available until August 9, 2017, by dialing 855-859-2056, confirmation ID 56948204.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $10.8 billion and nearly 13,000 employees.
Additional investor information can be accessed at entergy.com/investor_relations
View original content with multimedia:http://www.prnewswire.com/news-releases/entergy-announces-second-quarter-earnings-conference-call-300495557.html
SOURCE Entergy Corporation
Article Date
7/27/2017Entergy Louisiana Receives Approval to Build Lake Charles Power Station
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BATON ROUGE, La., June 28, 2017 /PRNewswire/ -- The Louisiana Public Service Commission voted today to approve construction of the Lake Charles Power Station, a 994-megawatt combined-cycle power plant in Westlake. The natural gas-fired plant is a key element of Entergy Louisiana's plan to provide the clean, efficient energy needed to power economic growth and bring even more savings to its customers.
Entergy Louisiana expects to issue full notice to proceed to construction by Aug. 1. The plant, which is scheduled to be in service by June 2020, will cost approximately $872 million to build including transmission and other project-related costs and contingency.
"The Lake Charles Power Station will supply the energy we need to help the communities and customers we serve prosper. This plant will not only provide needed generating capacity for the fast-growing region, but it's another step in our ongoing effort to upgrade Entergy Louisiana's plants so they operate more efficiently, affordably and with fewer emissions," said Phillip May, president and CEO of Entergy Louisiana.
"The vote to approve the project was a clear sign the commission recognized both the need for this plant and the tremendous benefits it will provide our customers," May said.
Because of the plant's high efficiency, projections are that customers will save between $1.3 billion and $2 billion over the anticipated 30-year life of the plant. Customer savings are expected to exceed the project's construction cost in less than 10 years.
Building the combined-cycle unit will:
"This project will not only help customers' budgets in the long run, but it will reduce our environmental footprint as well. Compared to our older natural gas-fired plants, combined-cycle units like the Lake Charles Power Station will, on average, cut carbon dioxide emissions by approximately 40 percent," May said.
The impact of the project on the state's economy will be significant. According to an analysis by Louisiana economist Dr. Loren Scott, the plant's construction phase will:
The plant will employ approximately 30 people once complete.
Entergy Louisiana, LLC provides electric service to more than 1 million customers and natural gas service to more than 93,000 customers in the greater Baton Rouge area. With operations in southern, central and northeastern Louisiana, the company is a subsidiary of Entergy Corporation.
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $10.8 billion and nearly 13,000 employees.
In this news release, and from time to time, Entergy Louisiana, LLC makes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to it and its parent company, Entergy Corporation (collectively, "Entergy"). 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 involve a number of risks and uncertainties. There are factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including (a) those factors discussed 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 rate proceedings, formula rate plans and other cost recovery mechanisms; (c) risks and uncertainties associated with executing major capital projects and estimating their costs and benefits; and (d) general economic conditions during the periods covered by the forward-looking statements, in addition to other factors described elsewhere in this release and subsequent securities filings.
entergylouisiana.com
facebook.com/EntergyLA
Twitter: @EntergyLA
SOURCE Entergy Corporation
Article Date
6/28/2017Entergy Names Rod West as Utility Group President
Source: PR Newswire
NEW ORLEANS, May 15, 2017 /PRNewswire/ -- Rod West has been named group president, utility operations, Entergy Corporation (NYSE: ETR) announced today. West succeeds Theo Bunting, who is retiring from Entergy after 34 years of service. Effective July 1, the appointment culminates a planned transition that had West working closely with Bunting to facilitate a seamless succession.
West, who will report to Leo Denault, Entergy's chairman and chief executive officer, will be responsible for the operational and financial performance of the regulated utilities, including electric and natural gas distribution, and customer service operations. In addition, West will oversee the utility's engagement with state and local regulators, and regulated retail commercial development and innovation.
"Rod's knowledge, leadership, diverse utility experience and relentless focus on creating value for our stakeholders make him the right person for this role at a time when Entergy is becoming a pure-play utility," said Leo Denault, chairman and CEO. "As we embark on the utility's $10.4 billion customer-centric capital plan, Rod will ensure we execute prudently, effectively and in the best interest of our stakeholders."
West has served as a member of Entergy's Office of the Chief Executive since 2010, when he was named executive vice president and chief administrative officer. In that role, Rod helped create the company's shared services organization, which includes information technology, finance operations, human resources operations, supply chain and administrative services. In his CAO role, West also provided executive oversight of Entergy's federal policy, regulatory and governmental affairs, and corporate communications functions.
West has a long history on the utility side of the business, having served as president and CEO of Entergy New Orleans, Inc. from 2007 to 2010, where he led that company out of its post-Hurricane Katrina bankruptcy and back to profitability. In the post-Katrina period, he is credited with leading the reconstruction of the company's electric distribution system and the ongoing effort to replace nearly 850 miles of underground pipe damaged during the storm, an effort recognized as the 2009 Global Infrastructure Project of the Year by Platts Global Energy Awards.
"As we welcome Rod to his new role, we also we also want to say thank you to Theo for his many contributions to Entergy in his 34 years of service," said Denault. "He has helped position the utility for a successful future, and we are very grateful to Theo for his outstanding service to Entergy."
West has a B.A. from the University of Notre Dame, a Juris Doctor from the Tulane University School of Law and a MBA from Tulane University.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $10.8 billion and nearly 13,000 employees.
Entergy's online address is entergy.com
Facebook.com/entergy
Twitter: @entergy
SOURCE Entergy Corporation
Article Date
5/15/20175/9/2017 - Entergy, NextEra Energy Resources break ground on Arkansas' largest universal solar energy project
Entergy, NextEra Energy Resources break ground on Arkansas' largest universal solar energy project
Source: PR Newswire
STUTTGART, Ark., May 9, 2017 /PRNewswire/ -- Local leaders joined executives from NextEra Energy Resources (NYSE: NEE) and Entergy Arkansas (NYSE: ETR) this morning to break ground on Arkansas' largest universal solar energy project – the Stuttgart Solar Energy Center.
"We are pleased to work with our partners at Entergy to bring low-cost, renewable energy to their customers and introduce the first universal solar project of this scale in Arkansas," said Armando Pimentel, president and CEO of NextEra Energy Resources. "This project will bring good jobs, tax benefits and affordable, renewable energy to the state for decades to come."
The Stuttgart Solar Energy Center will span 475 acres, approximately seven miles southeast of Stuttgart, AR. Construction will last approximately nine months. Once complete, the facility will feature more than 350,000 photovoltaic solar panels that convert the sun's energy into electricity. The solar energy center will have a capacity to generate 81 megawatts of electricity, or enough to power more than 13,000 homes. An affiliate of NextEra Energy Resources is developing the project and will build, own and operate it. The energy will serve Entergy Arkansas customers under a 20-year power purchase agreement.
"This project allows Entergy Arkansas to diversify our power generation in the state and provide our customers with access to emissions-free, renewable energy at a good price," said Rick Riley, president and CEO of Entergy Arkansas. "In NextEra Energy Resources we have an experienced partner to build and operate a project that will deliver tremendous value to our customers."
The project will create a significant economic boost for Arkansas County, creating up to 250 jobs during the construction phase. From labor and materials, to housing, health care and construction - a wide variety of local businesses will benefit from the influx of economic activity.
"This project will provide good jobs, and Arkansas County businesses will benefit from the extra activity, too," said Bethany Hildebrand, executive director and CEO of the Stuttgart Chamber of Commerce. "We are thrilled to host the state's largest solar facility and help realize the benefits it can bring to our community."
Over its operational life, the Stuttgart Solar Energy Center is expected to generate nearly $8 million in additional revenue for Arkansas County, with much of that funding going to help Arkansas County Public Schools.
"I know our county and school district will look at all of the opportunities these funds will provide," said Arkansas County Judge Eddie Best. "The funds will be a big boost to many of the school district and county's future projects and we couldn't be happier to welcome this facility to our community."
NextEra Energy Resources
NextEra Energy Resources, LLC (together with its affiliated entities, "NextEra Energy Resources"), is a clean energy leader and is one of the largest wholesale generators of electric power in the U.S., with approximately 19,990 megawatts of generating capacity, which includes megawatts associated with noncontrolling interests related to NextEra Energy Partners, LP (NYSE: NEP), primarily in 29 states and Canada as of year-end 2016. NextEra Energy Resources, together with its affiliated entities, is the world's largest generator of renewable energy from the wind and sun. The business operates clean, emissions-free nuclear power generation facilities in New Hampshire, Iowa and Wisconsin as part of the NextEra Energy nuclear fleet, which is one of the largest in the United States. NextEra Energy Resources, LLC is a subsidiary of Juno Beach, Florida-based NextEra Energy, Inc. (NYSE: NEE). For more information, visit www.NextEraEnergyResources.com.
Entergy Arkansas
Entergy Arkansas provides electricity to approximately 700,000 customers in 63 counties. Entergy Arkansas is a subsidiary of Entergy Corporation (NYSE: ETR), an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
SOURCE NextEra Energy Resources
Article Date
5/9/20174/26/2017 - Entergy Reports First Quarter Earnings
Entergy Reports First Quarter Earnings
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, April 26, 2017 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported first quarter 2017 earnings per share of 46 cents on an as-reported basis and 99 cents on an operational basis, including an estimated negative (16) cents effect from unusually mild weather.
"Entergy's first quarter results are in line with our expectations and we are affirming our full-year guidance," said Entergy Chairman and Chief Executive Officer Leo Denault. "These results are a good start to another important year for Entergy as we build on the momentum from last year's achievements. We are confident that we have the right strategy, leadership and workforce to deliver on our operational plan and financial outlooks."
Business highlights included the following:
|
Consolidated Earnings (GAAP and Non-GAAP Measures) | |||
|
First Quarter 2017 vs. 2016 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of special items) | |||
|
First Quarter | |||
|
2017 |
2016 |
Change | |
|
As-Reported Earnings ($ in millions) |
82.6 |
230.0 |
(147.4) |
|
Less Special Items |
(95.1) |
(12.9) |
(82.2) |
|
Operational Earnings |
177.7 |
242.8 |
(65.1) |
|
Estimated Weather Impact (after-tax) |
(29.2) |
(25.4) |
(3.8) |
|
As-Reported Earnings (per share in $) |
0.46 |
1.28 |
(0.82) |
|
Less Special Items |
(0.53) |
(0.07) |
(0.46) |
|
Operational Earnings |
0.99 |
1.35 |
(0.36) |
|
Estimated Weather Impact |
(0.16) |
(0.14) |
(0.02) |
|
Totals may not foot due to rounding |
Consolidated Results
For first quarter 2017, the company reported earnings of 46 cents per share on an as-reported basis and EPS of 99 cents on an operational basis, as compared to first quarter 2016 EPS of $1.28 on an as-reported basis and operational EPS of $1.35.
Additional details, including information on OCF by business, are provided in Appendix A and a comprehensive analysis of quarterly variances is provided in Appendix B.
Utility, Parent & Other Results
For first quarter 2017, Utility EPS were 92 cents on both an as-reported basis and an operational basis. In first quarter 2016, Utility as-reported and operational EPS were $1.09. The current period results reflected the effects of new rate actions to recover investments that benefit customers. However, the impacts of higher operating expenses and weather led to the overall decline in results.
Net revenue increased quarter-over-quarter, driven by regulatory actions across the utility jurisdictions, including EAI's 2017 FRP rate changes. Sales volume declined due to lower residential and commercial sales across the service territory, including the effects of weather.
Industrial sales growth was positive. Growth from new and expanding customers was partly offset by lower sales to existing customers, primarily in the refining segment. Sales to refiners were down on customer outages, which were expected.
Utility non-fuel O&M increased quarter-over-quarter. First quarter 2016 included a favorable deferral of previously-expensed costs which resulted from EAI's rate case order. In 2017, fossil spending was higher, primarily related to the acquisition of Union in March of last year. Higher spending on nuclear operations was largely offset by lower regulatory compliance costs at ANO.
In first quarter 2017, Parent & Other reported a loss of (30) cents per share on both an as-reported basis and an operational basis. In first quarter 2016, Parent & Other reported an as-reported and operational loss of (25) cents per share.
On a combined basis, Utility, Parent & Other EPS were 62 cents on an as-reported basis and 83 cents on an adjusted basis. In first quarter 2016, Utility, Parent & Other as-reported EPS were 84 cents and adjusted EPS were 95 cents. Adjusted earnings exclude special items and the effects of weather and normalize income taxes.
Appendix C contains additional details on Utility financial and operational measures, including a schedule of Utility, Parent & Other adjusted earnings and EPS.
Entergy Wholesale Commodities Results
For first quarter 2017, EWC recorded a loss of (16) cents per share on an as-reported basis and operational EPS of 37 cents. For the comparable period in 2016, EWC earned 44 cents per share on an as-reported basis and operational EPS of 51 cents.
The decrease in EWC's as-reported results was due largely to impairments and other items recorded as a result of strategic decisions for the wholesale business. Impairments were for fuel purchases and refueling outage costs as well as capital spending. First quarter 2017 as-reported results also included items which resulted from the FitzPatrick transaction, including a gain on that sale and an income tax benefit. All of these were considered special items and excluded from operational earnings.
Excluding the items above, earnings from FitzPatrick's operations declined. The plant was sold on March 31, 2017.
From the remaining plants, net revenue declined due to lower power prices. This was partially offset by lower nuclear fuel costs, which were affected by impairments. Non-fuel O&M reflected lower refueling outage expense, which was also affected by impairments. Decommissioning expense increased due primarily to the transfer of Indian Point 3 liability from NYPA. This was partially offset by an increase in other income, which was due to earnings on decommissioning trusts.
Appendix D contains additional details on EWC financial and operational measures, including a schedule of EWC operational adjusted EBITDA calculations.
Earnings Guidance
Entergy affirmed its 2017 operational guidance in the range of $4.75 to $5.35 per share and Utility, Parent & Other adjusted EPS guidance range of $4.25 to $4.55. See webcast presentation slides for additional details.
The company has provided 2017 earnings guidance with regard to the non-GAAP measures of operational EPS and Utility, Parent & Other adjusted EPS. These measures exclude from the corresponding GAAP financial measures the effect of special items 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 reasonably estimate all of the special items that may occur for the periods presented. The company's current estimate for special items in 2017 relates to the decisions to close or sell its merchant nuclear plants; those anticipated special items are expected to decrease as-reported EPS by approximately $2.10 per share. Other special items may occur during the periods presented, the impact of which cannot reasonably be estimated at this time.
Earnings Teleconference
A teleconference will be held at 10 a.m. Central Time on Wednesday, April 26, 2017, to discuss Entergy's quarterly earnings announcement and the company's financial performance. The teleconference may be accessed by visiting Entergy's website at www.entergy.com or by dialing 844-309-6569, conference ID 56943997, no more than 15 minutes prior to the start of the call. The webcast slide presentation is also posted to Entergy's website concurrent with this release, which was issued before market open on the day of the call. A replay of the teleconference will be available on Entergy's website at www.entergy.com and by telephone. The telephone replay will be available through May 3, 2017, by dialing 855-859-2056, conference ID 56943997. This release and the webcast slide presentation are also available on the Entergy Investor Relations mobile web app at iretr.com.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $10.8 billion and nearly 13,000 employees.
Entergy Corporation's common stock is listed on the New York and Chicago stock exchanges 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 slide presentation. Both documents are available on Entergy's Investor Relations website at www.entergy.com/investor_relations and on Entergy's Investor Relations mobile web app at iretr.com.
For definitions of certain operational measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the earnings release materials, see Appendix F and Appendix G.
Non-GAAP Financial Measures
This news release contains non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes 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 release and the presentation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Certain non-GAAP measures in this news release could differ from GAAP only in that the figure or ratio states or includes operational earnings. Operational earnings are not calculated in accordance with GAAP because they exclude the effect of "special items." Special items are unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, and may include items such as impairment, gains or losses on asset sales, and other gains or losses occurring as a result of strategic decisions such as Entergy's recent decisions to shut down or sell its merchant nuclear plants. Operational earnings per share are presented for each of Entergy's reportable business segments as well as on a consolidated basis. In addition, other financial measures including net income (or earnings), adjusted for preferred dividends and tax effected interest expense; operational net revenue; return on average invested capital; and return on average common equity are included on both an operational and as-reported basis. In each case, the metrics defined as "operational" would exclude the effect of special items as defined above. Entergy also reports Utility, Parent & Other adjusted earnings and earnings per share, which exclude from GAAP earnings the special items described above and weather and normalizes tax expense for the periods presented. Management believes that financial metrics calculated using operational earnings or otherwise adjusted as described above could provide useful information to investors in evaluating the ongoing results of Entergy's businesses and could assist investors in comparing Entergy's operating performance to the operating performance of others in the Utility sector.
Other non-GAAP measures, including adjusted EBITDA; operational adjusted EBITDA; gross liquidity; debt to capital ratio, excluding securitization debt; net debt to net capital ratio, excluding securitization debt; parent debt to total debt ratio, excluding securitization debt; debt to operational adjusted EBITDA, excluding securitization debt; operational FFO to debt ratio, excluding securitization debt; are measures Entergy uses internally for management and board discussions and cash budgeting and performance monitoring activities to gauge the overall strength of its business. Entergy believes the above data could provide useful information to investors in evaluating Entergy's ongoing financial results and flexibility, and could assist investors in comparing Entergy's credit and liquidity to the credit and liquidity of others in the Utility sector.
The non-GAAP financial measures and other reported adjusted items in this release are presented in addition to, and in conjunction with, results presented in accordance with GAAP. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. 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, could provide a more complete understanding of factors and trends affecting Entergy's business. Investors are strongly encouraged to review Entergy's consolidated financial statements and publicly filed reports in their entirety and to not rely on any single financial measure. 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, Entergy's 2017 earnings guidance, its current financial and operational outlook, 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 rate proceedings, formula rate plans and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory costs and risks, including any changes resulting from the nuclear crisis in Japan following its catastrophic earthquake and tsunami; (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 strategic transactions that Entergy or its subsidiaries may undertake, including the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental or energy policies; and (i) the effects of technological changes and changes in commodity markets, capital markets or economic conditions, during the periods covered by the forward-looking statements.
First Quarter 2017 Earnings Release Appendices and Financial Statements
Appendices
Seven appendices are presented in this section as follows:
A: Consolidated Results and Special Items
Appendix A-1 provides a comparative summary of consolidated EPS, including a reconciliation of GAAP as-reported earnings to non-GAAP operational earnings.
|
Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures First Quarter 2017 vs. 2016 (See Appendix A-3 and Appendix A-4 for details on special items) | |||
|
(Per share in $) | |||
|
First Quarter | |||
|
2017 |
2016 |
Change | |
|
As-reported |
|||
|
Utility |
0.92 |
1.09 |
(0.17) |
|
Parent & Other |
(0.30) |
(0.25) |
(0.05) |
|
EWC |
(0.16) |
0.44 |
(0.60) |
|
Consolidated as-reported earnings |
0.46 |
1.28 |
(0.82) |
|
Less special items |
|||
|
Utility |
- |
- |
- |
|
Parent & Other |
- |
- |
- |
|
EWC |
(0.53) |
(0.07) |
(0.46) |
|
Consolidated special items |
(0.53) |
(0.07) |
(0.46) |
|
Operational |
|||
|
Utility |
0.92 |
1.09 |
(0.17) |
|
Parent & Other |
(0.30) |
(0.25) |
(0.05) |
|
EWC |
0.37 |
0.51 |
(0.14) |
|
Consolidated operational earnings |
0.99 |
1.35 |
(0.36) |
|
Estimated weather impact |
(0.16) |
(0.14) |
(0.02) |
|
Totals may not foot due to rounding |
See Appendix B for detailed earnings variance analysis. See Appendix A-3 for special items by driver.
Appendix A-2 provides the components of OCF contributed by each business.
|
Appendix A-2: Consolidated Operating Cash Flow | |||
|
First Quarter 2017 vs. 2016 | |||
|
($ in millions) | |||
|
First Quarter | |||
|
2017 |
2016 |
Change | |
|
Utility |
558 |
459 |
99 |
|
Parent & Other |
(176) |
(62) |
(114) |
|
EWC |
147 |
136 |
11 |
|
Total OCF |
529 |
533 |
(3) |
|
Totals may not foot due to rounding |
OCF was relatively flat quarter-over-quarter. Reduced cash flow from the timing of recovery for fuel and purchased power at the Utility and lower net revenue at EWC (excluding revenue from the FitzPatrick reimbursement agreement) were largely offset by cash flow from income taxes and reduced spending on Vermont Yankee decommissioning. Intercompany income tax payments also contributed to the line of business variances.
Appendix A-3 and Appendix A-4 list special items by business. Amounts are shown on both a net income basis and an EPS basis. Special items are included in as-reported earnings consistent with GAAP, but are excluded from operational earnings. As a result, operational EPS is considered a non-GAAP measure.
|
Appendix A-3: Special Items by Driver (shown as positive/(negative) impact on earnings or EPS) | |||||
|
First Quarter 2017 vs. 2016 | |||||
|
First Quarter | |||||
|
2017 |
2016 |
Change | |||
|
(Pre-tax except for income tax effects and total, $ in millions) |
|||||
|
EWC |
|||||
|
EWC Nuclear plant impairments and costs associated with decisions to close or sell plants |
(230.9) |
(19.9) |
(211.0) | ||
|
Gain on the sale of FitzPatrick |
16.3 |
- |
16.3 | ||
|
Income tax effect on adjustments above (a) |
75.1 |
7.0 |
68.1 | ||
|
Income tax benefit resulting from FitzPatrick transaction |
44.5 |
- |
44.5 | ||
|
Total EWC |
(95.1) |
(12.9) |
(82.2) | ||
|
Total special items |
(95.1) |
(12.9) |
(82.2) | ||
|
(After-tax, per share in $) (b) |
|||||
|
EWC |
|||||
|
EWC Nuclear plant impairments and costs associated with decisions to close or sell plants |
(0.84) |
(0.07) |
(0.77) | ||
|
Gain on the sale of FitzPatrick |
0.06 |
- |
0.06 | ||
|
Income tax benefit resulting from FitzPatrick transaction |
0.25 |
- |
0.25 | ||
|
Total EWC |
(0.53) |
(0.07) |
(0.46) | ||
|
Total special items |
(0.53) |
(0.07) |
(0.46) | ||
|
Totals may not foot due to rounding |
|
(a) |
Income tax effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply |
|
(b) |
EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply to each adjustment and then dividing by the fully diluted average shares outstanding for the period |
|
Appendix A-4: Special Items by Income Statement Line Item (shown as positive/(negative) impact on earnings) | |||
|
First Quarter 2017 vs. 2016 | |||
|
(Pre-tax except for Income taxes and Total, $ in millions) | |||
|
First Quarter | |||
|
2017 |
2016 |
Change | |
|
EWC |
|||
|
Net revenue |
90.6 |
- |
90.6 |
|
Non-fuel O&M |
(120.3) |
(11.5) |
(108.8) |
|
Taxes other than income taxes |
(4.1) |
(1.0) |
(3.1) |
|
Asset write-off and impairments |
(211.8) |
(7.4) |
(204.4) |
|
Gain on sale of assets |
16.3 |
- |
16.3 |
|
Miscellaneous net (other income) |
14.6 |
- |
14.6 |
|
Income taxes (c) |
119.6 |
7.0 |
112.6 |
|
Total EWC |
(95.1) |
(12.9) |
(82.2) |
|
Total special items (after-tax) |
(95.1) |
(12.9) |
(82.2) |
|
Totals may not foot due to rounding |
|
(c) |
Income taxes include the income tax effect of the special items which were calculated using the estimated income tax rate that is expected to apply to each item as well as an income tax benefit which resulted from the FitzPatrick transaction |
B: Variance Analysis
Appendix B provides details of as-reported and operational earnings variance analysis for Utility, Parent & Other, EWC and Consolidated.
|
Appendix B: As-Reported and Operational EPS Variance Analysis (d) | |||||||||||
|
First Quarter 2017 vs. 2016 | |||||||||||
|
(After-tax, per share in $, sorted in consolidated operational column, most to least favorable) | |||||||||||
|
Utility |
Parent & Other |
EWC |
Consolidated | ||||||||
|
As-Reported |
Opera-tional |
As-Reported |
Opera-tional |
As- Reported |
Opera-tional |
As- Reported |
Opera- tional | ||||
|
2016 earnings |
1.09 |
1.09 |
(0.25) |
(0.25) |
0.44 |
0.51 |
1.28 |
1.35 | |||
|
Other income (deductions)-other |
0.03 |
0.03 |
- |
- |
0.11 |
0.06 |
(e) |
0.14 |
0.09 | ||
|
Preferred dividend requirements |
0.01 |
0.01 |
- |
- |
- |
- |
0.01 |
0.01 | |||
|
Interest expense and other charges |
0.02 |
0.02 |
(0.01) |
(0.01) |
- |
- |
0.01 |
0.01 | |||
|
Asset write-offs and impairments |
- |
- |
- |
- |
(0.74) |
- |
(f) |
(0.74) |
- | ||
|
Gain on sale of assets |
- |
- |
- |
- |
0.06 |
- |
(g) |
0.06 |
- | ||
|
Taxes other than income taxes |
(0.03) |
(0.03) |
- |
- |
0.01 |
0.02 |
(0.02) |
(0.01) | |||
|
Depreciation/ amortization expense |
(0.05) |
(0.05) |
(h) |
- |
- |
0.01 |
0.01 |
(0.04) |
(0.04) | ||
|
Non-fuel O&M |
(0.20) |
(0.20) |
(i) |
- |
- |
(0.25) |
0.15 |
(j) |
(0.45) |
(0.05) | |
|
Income taxes – other |
(0.04) |
(0.04) |
(0.04) |
(0.04) |
0.26 |
0.01 |
(k) |
0.18 |
(0.07) | ||
|
Net revenue |
0.10 |
0.10 |
(l) |
- |
- |
0.10 |
(0.23) |
(m) |
0.20 |
(0.13) | |
|
Decommissioning expense |
(0.01) |
(0.01) |
- |
- |
(0.16) |
(0.16) |
(n) |
(0.17) |
(0.17) | ||
|
2017 earnings |
0.92 |
0.92 |
(0.30) |
(0.30) |
(0.16) |
0.37 |
0.46 |
0.99 | |||
|
Totals may not foot due to rounding |
See appendix in the webcast slide presentation for additional details on EWC line item variances.
|
(d) |
EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply and then dividing by the fully diluted average shares outstanding for the period; income taxes – other represents income tax differences other than the tax effect of individual line items. |
|
(e) |
The increase was driven largely by realized earnings on decommissioning trust funds. Approximately 5 cents, classified as special item, was from gains on the receipt of nuclear decommissioning trust funds from NYPA in January 2017. |
|
(f) |
The decrease was due to an increase in impairments recorded for refueling outage costs, nuclear fuel purchases and capital expenditures (classified as special items and excluded from operational results). |
|
(g) |
The increase was due to a gain on the sale of FitzPatrick (classified as a special item and excluded from operational results). |
|
(h) |
The decrease was due largely to additions to plant in service, including the Union Power Station acquired in March 2016. |
|
(i) |
The decrease was due to several drivers. In first quarter 2016, EAI recorded a deferral for $18 million (pre-tax) for previously-expensed costs related to post Fukushima and flood barrier compliance. Fossil spending was higher for Union expenses (Union was acquired in March 2016) and overall higher scope of work. Compensation and benefits expense increased due partly to a revision to estimated incentive compensation expense in first quarter 2016. Expense associated with loss reserves also increased. Spending for nuclear operations was higher, but was largely offset by lower spending associated with regulatory compliance costs at ANO. |
|
(j) |
The as-reported decrease reflected higher expenses related to the agreement to sell FitzPatrick and other costs which resulted from decisions to close or sell EWC's nuclear plants (classified as a special item and excluded from operational results). Partially offsetting was lower refueling outage expense, which was affected by impairments. |
|
(k) |
The as-reported increase resulted from the re-determination of FitzPatrick's tax basis as a result of the sale of the plant (classified as a special item and excluded from operational results). |
|
Utility As-Reported Net Revenue Variance Analysis 2017 vs. 2016 ($ EPS) | |
|
First Quarter | |
|
Estimated weather |
(0.02) |
|
Sales growth/pricing |
0.09 |
|
Other |
0.03 |
|
Total |
0.10 |
|
(l) |
The increase reflected full-quarter effects from the first quarter 2016 EAI rate case and rate actions associated with the Union acquisition (a portion of those increases was for Union operating expenses) as well as EAI's FRP rate increase in 2017. EMI's 2016 FRP and ETI's TCRF rate changes also contributed. In addition, in first quarter 2016 EAI recorded a charge to reflect the estimated impact from a FERC order on opportunity sales case. Partially offsetting was lower volume, including the effects of weather. |
|
(m) |
The as-reported increase included cost reimbursements from the buyer related to the FitzPatrick sale (classified as special items and excluded from operational results). Operational revenue from FitzPatrick was also lower. Pricing for nuclear assets was also a factor in the decline. Partially offsetting was lower fuel expense, which was affected by impairments. |
|
(n) |
The decrease resulted primarily from the establishment of decommissioning liabilities at Indian Point 3 and FitzPatrick in August 2016 (resulted from agreement with NYPA to transfer decommissioning liabilities and associated trusts to Entergy). Revisions to the estimated decommissioning cost liabilities for Indian Point and Palisades in the fourth quarter 2016 also contributed to the decrease. |
C: Utility Financial and Operational Measures
Appendix C-1 provides a comparative summary of Utility, Parent & Other adjusted earnings and EPS, which excludes the effects of special items and weather and normalizes income tax expense.
|
Appendix C-1: Utility, Parent & Other Adjusted Earnings and EPS - Reconciliation of GAAP to Non-GAAP Measures | ||||||
|
First Quarter 2017 vs. 2016 (See Appendix A for details on special items) | ||||||
|
First Quarter | ||||||
|
2017 |
2016 |
Change | ||||
|
($ in millions) |
||||||
|
Utility as-reported earnings |
164.7 |
194.9 |
(30.2) | |||
|
Parent & Other as-reported earnings (loss) |
(54.4) |
(44.0) |
(10.4) | |||
|
UP&O as-reported earnings |
110.3 |
151.0 |
(40.6) | |||
|
Less: |
||||||
|
Special items |
- |
- |
- | |||
|
Weather |
(47.5) |
(41.3) |
(6.2) | |||
|
Tax effect of weather (o) |
18.3 |
15.9 |
2.4 | |||
|
Estimated weather impact (after-tax) |
(29.2) |
(25.4) |
(3.8) | |||
|
Other income tax items |
(9.4) |
6.0 |
(15.4) | |||
|
UP&O adjusted earnings |
148.9 |
170.3 |
(21.4) | |||
|
(After tax, per share in $) |
||||||
|
UP&O as-reported earnings |
0.62 |
0.84 |
(0.22) | |||
|
Less: |
||||||
|
Special items |
- |
- |
- | |||
|
Weather |
(0.16) |
(0.14) |
(0.02) | |||
|
Other income tax items |
(0.05) |
0.03 |
(0.08) | |||
|
UP&O adjusted earnings |
0.83 |
0.95 |
(0.12) | |||
|
Totals may not foot due to rounding |
|
(o) |
Income tax effect is calculated by multiplying the pre-tax amount by the estimated income tax rates that are expected to apply to those adjustments |
Appendix C-2 provides a comparative summary of Utility operational and financial measures.
|
Appendix C-2: Utility Operational and Financial Measures | ||||
|
First Quarter 2017 vs. 2016 (See Appendix G for reconciliation of GAAP to non-GAAP measures) | ||||
|
First Quarter | ||||
|
2017 |
2016 |
% Change |
% Weather | |
|
GWh billed |
||||
|
Residential |
7,637 |
8,137 |
(6.1) |
(4.2) |
|
Commercial |
6,439 |
6,511 |
(1.1) |
(1.7) |
|
Governmental |
593 |
600 |
(1.1) |
(1.6) |
|
Industrial |
11,117 |
11,055 |
0.6 |
0.6 |
|
Total retail sales |
25,786 |
26,303 |
(2.0) |
(1.6) |
|
Wholesale |
3,022 |
3,140 |
(3.8) |
|
|
Total sales |
28,808 |
29,443 |
(2.2) |
|
|
Number of electric retail customers |
||||
|
Residential |
2,469,879 |
2,443,022 |
1.1 |
|
|
Commercial |
355,138 |
350,136 |
1.4 |
|
|
Governmental |
18,229 |
17,686 |
3.1 |
|
|
Industrial |
41,043 |
40,823 |
0.5 |
|
|
Total retail customers |
2,884,289 |
2,851,667 |
1.1 |
|
|
Net revenue ($ in millions) |
1,404 |
1,375 |
2.1 |
|
|
Non-fuel O&M per MWh |
20.97 |
$18.56 |
13.0 |
|
|
Appendix C-3: Utility Operational Measures | ||||
|
Last Twelve Months Retail Sales | ||||
|
First Quarter | ||||
|
2017 |
2016 |
% Change |
% Weather | |
|
GWh billed |
||||
|
Residential |
34,612 |
34,773 |
(0.5) |
(1.1) |
|
Commercial |
29,125 |
29,138 |
- |
(0.9) |
|
Governmental |
2,540 |
2,522 |
0.7 |
0.6 |
|
Industrial |
45,801 |
45,031 |
1.7 |
1.7 |
|
Total retail sales |
112,078 |
111,463 |
0.6 |
0.1 |
|
Totals may not foot due to rounding |
|
(p) |
The effects of weather were estimated using monthly heating degree days and cooling degree days from certain locations within each jurisdiction and comparing to "normal" weather based on 20 year historical data. The models used to estimate weather are updated periodically and subject to change. |
D: EWC Financial and Operational Measures
Appendix D-1 provides a comparative summary of EWC operational adjusted EBITDA.
|
Appendix D-1: EWC Operational Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures | |||
|
First Quarter 2017 vs. 2016 | |||
|
($ in millions) |
First Quarter | ||
|
2017 |
2016 |
Change | |
|
Net income (loss) |
(27) |
80 |
(107) |
|
Add back: interest expense |
6 |
6 |
- |
|
Add back: income taxes |
(78) |
52 |
(130) |
|
Add back: depreciation and amortization |
53 |
56 |
(3) |
|
Subtract: interest and investment income |
43 |
27 |
16 |
|
Add back: decommissioning expense |
75 |
31 |
44 |
|
Adjusted EBITDA |
(15) |
199 |
(214) |
|
Add back pre-tax special items for: |
|||
|
EWC Nuclear plant impairments and costs associated with decisions to close or sell plants |
231 |
20 |
211 |
|
Gain on the sale of FitzPatrick |
(16) |
- |
(16) |
|
Operational adjusted EBITDA |
200 |
219 |
(19) |
|
Totals may not foot due to rounding |
Appendix D-2 provides a comparative summary of EWC operational and financial measures.
|
Appendix D-2: EWC Operational and Financial Measures | |||
|
First Quarter 2017 vs. 2016 (See Appendix G for reconciliation of GAAP to non-GAAP measures) | |||
|
First Quarter | |||
|
2017 |
2016 |
% Change | |
|
Owned capacity (MW) (q) |
4,800 |
4,880 |
(1.6) |
|
GWh billed |
8,363 |
9,246 |
(9.6) |
|
As-reported net revenue ($ in millions) |
494 |
466 |
6.0 |
|
Operational net revenue ($ in millions) |
404 |
466 |
(13.3) |
|
EWC Nuclear Fleet |
|||
|
Capacity factor |
80% |
90% |
(11.1) |
|
GWh billed |
7,835 |
8,688 |
(9.8) |
|
Production cost per MWh |
$23.00 |
$21.91 |
5.0 |
|
Average energy and capacity revenue per MWh (r) |
$55.15 |
$56.16 |
(1.8) |
|
As-reported net revenue ($ in millions) |
491 |
464 |
5.8 |
|
Operational net revenue ($ in millions) |
401 |
464 |
(13.6) |
|
Refueling outage days |
|||
|
FitzPatrick |
42 |
- |
|
|
Indian Point 2 |
- |
25 |
|
|
Indian Point 3 |
19 |
- |
|
|
(q) |
Investments in wind generation were sold in November 2016; includes FitzPatrick, which was sold on 3/31/17 |
|
(r) |
Average energy and capacity revenue per MWh excluding FitzPatrick was $55.27 in first quarter 2017 and $63.45 in first quarter 2016 |
See appendix in the webcast slide presentation for EWC hedging and price disclosures.
E: Consolidated Financial Measures
Appendix E provides comparative financial measures. Financial measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP measures.
As-reported measures in this table are computed in accordance with GAAP as they include all components of net income, including special items. Operational measures in this table are non-GAAP measures as they are calculated using operational net income, which excludes the impact of special items.
|
Appendix E: GAAP and Non-GAAP Financial Measures | |||
|
First Quarter 2017 vs. 2016 (See Appendix G for reconciliation of GAAP to non-GAAP measures) | |||
|
For 12 months ending March 31 |
2017 |
2016 |
Change |
|
GAAP Measures |
|||
|
ROIC - as-reported |
(1.3%) |
0.7% |
(2.0%) |
|
ROE - as-reported |
(8.4%) |
(2.5%) |
(5.9%) |
|
Book value per share |
$44.90 |
$52.38 |
($7.48) |
|
End of period shares outstanding (millions) |
179.4 |
178.7 |
0.7 |
|
Non-GAAP Measures |
|||
|
ROIC - operational |
6.7% |
5.8% |
0.9% |
|
ROE - operational |
13.9% |
10.4% |
3.5% |
|
As of March 31 ($ in millions) |
2017 |
2016 |
Change |
|
GAAP Measures |
|||
|
Cash and cash equivalents |
1,083 |
1,092 |
(9) |
|
Revolver capacity |
4,185 |
3,794 |
391 |
|
Commercial paper |
1,088 |
578 |
510 |
|
Total debt |
15,611 |
15,092 |
519 |
|
Securitization debt |
637 |
752 |
(115) |
|
Debt to capital |
65.4% |
60.9% |
4.5% |
|
Off-balance sheet liabilities: |
|||
|
Debt of joint ventures - Entergy's share |
71 |
77 |
(6) |
|
Leases - Entergy's share |
397 |
359 |
38 |
|
Power purchase agreements accounted for as leases |
166 |
195 |
(29) |
|
Total off-balance sheet liabilities |
634 |
631 |
3 |
|
Non-GAAP Measures |
|||
|
Debt to capital, excluding securitization debt |
64.4% |
59.7% |
4.7% |
|
Gross liquidity |
5,268 |
4,886 |
382 |
|
Net debt to net capital, excluding securitization debt |
62.7% |
57.8% |
4.9% |
|
Parent debt to total debt, excluding securitization debt |
21.1% |
19.5% |
1.6% |
|
Debt to operational adjusted EBITDA, excluding securitization debt |
4.4x |
4.6x |
(0.2x) |
|
Operational FFO to debt, excluding securitization debt |
17.3% |
21.0% |
(3.7%) |
F: Definitions, Abbreviations and Acronyms
Appendix F-1 provides definitions of certain operational measures, as well as GAAP and non-GAAP financial measures. Non-GAAP measures remove the effects of financial events that are not routine from commonly used financial measures.
|
Appendix F-1: Definitions | |
|
Utility Operational and Financial Measures | |
|
GWh billed |
Total number of GWh billed to retail and wholesale customers |
|
Net revenue |
Operating revenue less fuel, fuel related expenses and gas purchased for resale, purchased power and other regulatory charges (credits) – net |
|
Non-fuel O&M |
Operation and maintenance expenses excluding fuel, fuel-related expenses and gas purchased for resale and purchased power |
|
Non-fuel O&M per MWh |
Non-fuel O&M per MWh of billed sales |
|
Number of retail customers |
Number of customers at end of period |
|
EWC Operational and Financial Measures | |
|
Average revenue under contract per kW-month (applies to capacity contracts only) |
Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and/or auction awards |
|
Average revenue per MWh on contracted volumes |
Revenue on a per unit basis at which generation output reflected in contracts is expected to be sold to third parties (including offsetting positions) at the minimum contract prices and at forward market prices at a point in time, given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market PPA for Palisades; revenue will fluctuate due to factors including market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at the time of option expiration, costs to convert firm LD to unit-contingent and other risk management costs |
|
Bundled capacity and energy contracts |
A contract for the sale of installed capacity and related energy, priced per MWh sold |
|
Capacity contracts |
A contract for the sale of the installed capacity product in regional markets managed by ISO New England, NYISO and MISO |
|
Capacity factor |
Normalized percentage of the period that the nuclear plants generate power |
|
Expected sold and market total revenue per MWh |
Total energy and capacity revenue on a per unit basis at which total planned generation output and capacity is expected to be sold given contract terms and market prices at a point in time, including estimates for market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at time of option expiration, costs to convert Firm LD to unit-contingent and other risk management costs, divided by total planned MWh of generation, excluding the revenue associated with the amortization of the Palisades below-market PPA |
|
Firm LD |
Transaction that requires receipt or delivery of energy at a specified delivery point (usually at a market hub not associated with a specific asset) or settles financially on notional quantities; if a party fails to deliver or receive energy, defaulting party must compensate the other party as specified in the contract, a portion of which may be capped through the use of risk management products |
|
Appendix F-1: Definitions | |
|
EWC Operational and Financial Measures (continued) | |
|
GWh billed |
Total number of GWh billed to customers and financially-settled instruments (does not include amounts from investment in wind generation that was accounted for under the equity method of accounting and which was sold in November 2016) |
|
Net revenue |
Operating revenue less fuel, fuel-related expenses and purchased power |
|
Offsetting positions |
Transactions for the purchase of energy, generally to offset a Firm LD transaction |
|
Owned capacity (MW) |
Installed capacity owned and operated by EWC; investment in wind generation was sold in November 2016 |
|
Percent of capacity sold forward |
Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions |
|
Percent of planned generation under contract |
Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts or options that mitigate price uncertainty that may or may not require regulatory approval or approval of transmission rights or other conditions precedent; positions that are no longer classified as hedges are netted in the planned generation under contract |
|
Planned net MW in operation |
Amount of installed capacity to generate power and/or sell capacity, assuming intent to shutdown Pilgrim (May 31, 2019), Palisades (Oct. 1, 2018), Indian Point 2 (April 30, 2020) and Indian Point 3 (April 30, 2021) |
|
Planned TWh of generation |
Amount of output expected to be generated by EWC resources considering plant operating characteristics and outage schedules, assuming intent to shutdown Pilgrim (May 31, 2019), Palisades (Oct. 1, 2018), Indian Point 2 (April 30, 2020) and Indian Point 3 (April 30, 2021) |
|
Production cost per MWh |
Fuel and non-fuel O&M expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation), excluding special items |
|
Refueling outage days |
Number of days lost for a scheduled refueling and maintenance outage during the period |
|
Unit-contingent |
Transaction under which power is supplied from a specific generation asset; if the asset is in operational outage, seller is generally not liable to buyer for any damages, unless the contract specifies certain conditions such as an availability guarantee |
|
Financial Measures – GAAP | |
|
Book value per share |
End of period common equity divided by end of period shares outstanding |
|
Debt of joint ventures - Entergy's share |
Entergy's share of debt issued by business joint ventures at EWC |
|
Debt to capital ratio |
Total debt divided by total capitalization |
|
Leases - Entergy's share |
Operating leases held by subsidiaries capitalized at implicit interest rate |
|
Revolver capacity |
Amount of undrawn capacity remaining on corporate and subsidiary revolvers, including Entergy Nuclear Vermont Yankee |
|
ROIC - as-reported |
12-months rolling net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital |
|
ROE - as-reported |
12-months rolling net income attributable to Entergy Corporation divided by average common equity |
|
Securitization debt |
Debt associated with securitization bonds issued to recover storm costs from hurricanes Rita, Ike and Gustav at ETI and Hurricane Isaac at ENOI; the 2009 ice storm at EAI and investment recovery of costs associated with the cancelled Little Gypsy repowering project at ELL |
|
Appendix F-1: Definitions | |
|
Financial Measures - Non-GAAP | |
|
Total debt |
Sum of short-term and long-term debt, notes payable and commercial paper and capital leases on the balance sheet |
|
Adjusted EBITDA |
Earnings before interest, depreciation and amortization and income taxes excluding decommissioning expense; for Entergy consolidated, also excludes AFUDC-equity funds and subtracts securitization proceeds |
|
Adjusted EPS |
As-reported EPS excluding special items and weather and normalizing for income tax |
|
Debt to capital ratio, excluding securitization debt |
Total debt divided by total capitalization, excluding securitization debt |
|
Debt to operational adjusted EBITDA, excluding securitization debt |
End of period total debt excluding securitization debt divided by 12-months rolling operational adjusted EBITDA |
|
FFO |
OCF less AFUDC-borrowed funds, working capital items in OCF (receivables, fuel inventory, accounts payable, prepaid taxes and taxes accrued, interest accrued and other working capital accounts) and securitization regulatory charges |
|
Operational FFO to debt, excluding securitization debt |
12-months rolling operational FFO as a percentage of end of period total debt excluding securitization debt |
|
Gross liquidity |
Sum of cash and revolver capacity |
|
Operational adjusted EBITDA |
Adjusted EBITDA excluding effects of special items |
|
Operational EPS |
As-reported EPS adjusted to exclude the impact of special items |
|
Operational FFO |
FFO excluding effects of special items |
|
Parent debt to total debt ratio, excluding securitization debt |
End of period Entergy Corporation debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of total debt excluding securitization debt |
|
Net debt to net capital ratio, excluding securitization debt |
Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt |
|
ROIC - operational |
12-months rolling operational net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital |
|
ROE - operational |
12-months rolling operational net income attributable to Entergy Corporation divided by average common equity |
Appendix F-2 explains abbreviations and acronyms used in the quarterly earnings materials.
|
Appendix F-2: Abbreviations and Acronyms | |||
|
ADIT |
Accumulated deferred income taxes |
LPSC |
Louisiana Public Service Commission |
|
AFUDC - |
Allowance for borrowed funds used during |
LTM |
Last twelve months |
|
borrowed funds |
construction |
Michigan PSC |
Michigan Public Service Commission |
|
AFUDC - |
Allowance for equity funds used during |
MISO |
Midcontinent Independent System Operator, Inc. |
|
equity funds |
construction |
Moody's |
Moody's Investor Service |
|
ALJ |
Administrative law judge |
MPSC |
Mississippi Public Service Commission |
|
AMI |
Advanced metering infrastructure |
MTEP |
MISO Transmission Expansion Planning |
|
ANO |
Arkansas Nuclear One (nuclear) |
Nelson 6 |
Unit 6 of Roy S. Nelson plant (coal) |
|
APSC |
Arkansas Public Service Commission |
NEPOOL |
New England Power Pool |
|
ARO |
Asset retirement obligation |
Ninemile 6 |
Ninemile Point Unit 6 |
|
ASLB |
Atomic Safety and Licensing Board |
Non-fuel O&M |
Non-fuel operation and maintenance expense |
|
CCGT |
Combined cycle gas turbine |
NDT |
Nuclear decommissioning trust |
|
CCNO |
Council of the City of New Orleans, Louisiana |
NRC |
Nuclear Regulatory Commission |
|
COD |
Commercial operation date |
NYISO |
New York Independent System Operator, Inc. |
|
Cooper |
Cooper Nuclear Station |
NYS |
New York State |
|
CT |
Simple cycle combustion turbine |
NYSDEC |
New York State Department of Environmental |
|
CZM |
Coastal zone management |
Conservation | |
|
DCRF |
Distribution cost recovery factor |
NYSDOS |
New York State Department of State |
|
DOE |
U.S. Department of Energy |
NYPA |
New York Power Authority |
|
EAI |
Entergy Arkansas, Inc. |
NYSE |
New York Stock Exchange |
|
EBITDA |
Earnings before interest, income taxes, |
O&M |
Operation and maintenance expense |
|
depreciation and amortization |
OCF |
Net cash flow provided by operating activities | |
|
EGSL |
Entergy Gulf States Louisiana, L.L.C. |
OPEB |
Other post-employment benefits |
|
ELL |
Entergy Louisiana, LLC |
Palisades |
Palisades Power Plant (nuclear) |
|
EMI |
Entergy Mississippi, Inc. |
PDSAR |
Post-Shutdown Decommissioning Activities Report |
|
ENOI |
Entergy New Orleans, Inc. |
Pilgrim |
Pilgrim Nuclear Power Station (nuclear) |
|
ENVY |
Entergy Nuclear Vermont Yankee |
PPA |
Power purchase agreement or purchased power |
|
ESI |
Entergy Services, Inc. |
agreement | |
|
EPS |
Earnings per share |
PUCT |
Public Utility Commission of Texas |
|
ETI |
Entergy Texas, Inc. |
RFP |
Request for proposal |
|
ETR |
Entergy Corporation |
RISEC |
Rhode Island State Energy Center (CCGT) |
|
EWC |
Entergy Wholesale Commodities |
ROE |
Return on equity |
|
FCA |
Forward Capacity Auction |
ROIC |
Return on invested capital |
|
FERC |
Federal Energy Regulatory Commission |
RPCE |
Rough production cost equalization |
|
FFO |
Funds from operations |
RS Cogen |
RS Cogen facility (CCGT cogen) |
|
Firm LD |
Firm liquidated damages |
RSP |
Rate Stabilization Plan (ELL Gas) |
|
FitzPatrick |
James A. FitzPatrick Nuclear Power Plant |
SEC |
U.S. Securities and Exchange Commission |
|
(nuclear, sold March 31, 2017) |
SERI |
System Energy Resources, Inc. | |
|
FRP |
Formula rate plan |
SPDES |
State Pollutant Discharge Elimination System |
|
GAAP |
U.S. generally accepted accounting principles |
TCRF |
Transmission cost recovery factor |
|
Grand Gulf |
Unit 1 of Grand Gulf Nuclear Station (nuclear), |
Top Deer |
Top Deer Wind Ventures, LLC |
|
90% owned or leased by System Energy |
Union |
Union Power Station (CCGT) | |
|
Indian Point 1 |
Indian Point Energy Center Unit 1 (nuclear) |
UP&O |
Utility, Parent & Other |
|
Indian Point 2 |
Indian Point Energy Center Unit 2 (nuclear) |
VPSB |
Vermont Public Service Board |
|
Indian Point 3 |
Indian Point Energy Center Unit 3 (nuclear) |
VY |
Vermont Yankee Nuclear Power Station (nuclear) |
|
IPEC |
Indian Point Energy Center (nuclear) |
WACC |
Weighted-average cost of capital |
|
ISO |
Independent system operator |
WQC |
Water Quality Certification |
|
ISES |
Independence Steam Electric Station (coal) |
YOY |
Year-over-year |
|
LHV |
Lower Hudson Valley |
||
G: GAAP to Non-GAAP Reconciliations
Appendix G-1, Appendix G-2 and Appendix G-3 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure.
|
Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures - EWC Operational Net Revenue | |||||||
|
($ in thousands except where noted) |
First Quarter | ||||||
|
2017 |
2016 | ||||||
|
As-reported net revenue |
(A) |
494 |
466 | ||||
|
Special items included in net revenue: |
|||||||
|
EWC Nuclear costs associated with decisions to close or sell plants |
91 |
- | |||||
|
Total special items included in net revenue |
(B) |
404 |
466 | ||||
|
Operational net revenue |
(A-B) |
||||||
|
EWC Nuclear |
|||||||
|
As-reported EWC Nuclear net revenue |
(C) |
491 |
464 | ||||
|
Special items included in EWC Nuclear net revenue: |
|||||||
|
EWC Nuclear costs associated with decisions to close or sell plants |
91 |
- | |||||
|
Total special items included in EWC Nuclear net revenue |
(D) |
401 |
464 | ||||
|
Operational EWC Nuclear net revenue |
(C-D) |
||||||
|
Totals may not foot due to rounding |
|
Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures - ROIC, ROE | |||
|
($ in millions except where noted) |
First Quarter | ||
|
2017 |
2016 | ||
|
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months |
(A) |
(731) |
(245) |
|
Preferred dividends |
17 |
20 | |
|
Tax effected interest expense |
409 |
398 | |
|
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months adjusted for preferred dividends and tax effected interest expense |
(B) |
(305) |
173 |
|
Special items in prior quarters |
(1,842) |
(1,248) | |
|
EWC Nuclear plant impairments and costs associated with decisions to close or sell plants |
(150) |
(13) | |
|
Gain on the sale of FitzPatrick |
11 |
- | |
|
Income tax benefit resulting from FitzPatrick transaction |
45 |
- | |
|
Total special items, rolling 12 months |
(C) |
(1,937) |
(1,261) |
|
Operational earnings, rolling 12 months adjusted for preferred dividends and tax effected interest expense |
(B-C) |
1,632 |
1,434 |
|
Operational earnings, rolling 12 months |
(A-C) |
1,206 |
1,016 |
|
Average invested capital |
(D) |
24,321 |
24,627 |
|
Average common equity |
(E) |
8,709 |
9,747 |
|
ROIC - as-reported |
(B/D) |
(1.3%) |
0.7% |
|
ROIC - operational |
[(B-C)/D] |
6.7% |
5.8% |
|
ROE - as-reported |
(A/E) |
(8.4%) |
(2.5)% |
|
ROE - operational |
[(A-C)/E] |
13.9% |
10.4% |
|
Totals may not foot due to rounding |
|
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures – Debt Ratios excluding Securitization Debt; Gross Liquidity; Debt to Operational Adjusted EBITDA excluding Securitization Debt; Operational FFO to Debt Ratio, excluding Securitization Debt | |||
|
($ in millions except where noted) |
First Quarter | ||
|
2017 |
2016 | ||
|
Total debt |
(A) |
15,611 |
15,092 |
|
Less securitization debt |
(B) |
637 |
752 |
|
Total debt, excluding securitization debt |
(C) |
14,974 |
14,340 |
|
Less cash and cash equivalents |
(D) |
1,083 |
1,092 |
|
Net debt, excluding securitization debt |
(E) |
13,891 |
13,248 |
|
Total capitalization |
(F) |
23,871 |
24,771 |
|
Less securitization debt |
(B) |
637 |
752 |
|
Total capitalization, excluding securitization debt |
(G) |
23,234 |
24,019 |
|
Less cash and cash equivalents |
(D) |
1,083 |
1,092 |
|
Net capital, excluding securitization debt |
(H) |
22,151 |
22,927 |
|
Debt to capital |
(A/F) |
65.4% |
60.9% |
|
Debt to capital, excluding securitization debt |
(C/G) |
64.4% |
59.7% |
|
Net debt to net capital, excluding securitization debt |
(E/H) |
62.7% |
57.8% |
|
Revolver capacity |
(I) |
4,185 |
3,794 |
|
Gross liquidity |
(D+I) |
5,268 |
4,886 |
|
Entergy Corporation notes: |
|||
|
Due January 2017 |
- |
500 | |
|
Due September 2020 |
450 |
450 | |
|
Due July 2022 |
650 |
650 | |
|
Due September 2026 |
750 |
- | |
|
Total parent long-term debt |
(J) |
1,850 |
1,600 |
|
Revolver draw |
(K) |
225 |
616 |
|
Commercial paper |
(L) |
1,088 |
578 |
|
Total parent debt |
(J)+(K)+(L) |
3,163 |
2,794 |
|
Parent debt to total debt, excluding securitization debt |
[((J)+(K)+(L))/(C)] |
21.1% |
19.5% |
|
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures – Debt Ratios excluding Securitization Debt; Gross Liquidity; Debt to Operational Adjusted EBITDA excluding Securitization Debt; Operational FFO to Debt Ratio, excluding Securitization Debt (continued) | |||
|
($ in millions except where noted) |
First Quarter | ||
|
2017 |
2016 | ||
|
Total debt |
(A) |
15,611 |
15,092 |
|
Less securitization debt |
(B) |
637 |
752 |
|
Total debt, excluding securitization debt |
(C) |
14,974 |
14,340 |
|
As-reported consolidated net income (loss), rolling 12 months |
(714) |
(224) | |
|
Add back (rolling 12 months): |
|||
|
Interest expense |
664 |
647 | |
|
Income taxes |
(949) |
(653) | |
|
Depreciation and amortization |
1,360 |
1,340 | |
|
Regulatory charges (credits) |
8 |
166 | |
|
Decommissioning expense |
373 |
279 | |
|
Subtract (rolling 12 months): |
|||
|
Securitization proceeds |
143 |
136 | |
|
Interest and investment income |
169 |
152 | |
|
AFUDC-equity funds |
68 |
59 | |
|
Adjusted EBITDA, rolling 12 months |
(D) |
362 |
1,208 |
|
Add back special items (rolling 12 months pre-tax): |
|||
|
EWC Nuclear plant impairments and costs associated with decisions to close or sell plants |
3,121 |
2,066 | |
|
DOE litigation awards for VY and FitzPatrick |
(34) |
- | |
|
Top Deer investment impairment |
- |
37 | |
|
Gain on the sale of RISEC |
- |
(154) | |
|
Gain on the sale of FitzPatrick |
(16) |
- | |
|
Operational adjusted EBITDA, rolling 12 months |
(E) |
3,433 |
3,157 |
|
Debt to operational adjusted EBITDA, excluding securitization debt |
(C)/(E) |
4.4x |
4.6x |
|
Net cash flow provided by operating activities, rolling 12 months |
(F) |
2,995 |
3,213 |
|
AFUDC-borrowed funds used during construction, rolling 12 months |
(G) |
(34) |
(30) |
|
Working capital items in net cash flow provided by operating activities (rolling 12 months): |
|||
|
Receivables |
(17) |
92 | |
|
Fuel inventory |
54 |
1 | |
|
Accounts payable |
194 |
(49) | |
|
Prepaid taxes and taxes accrued |
(72) |
134 | |
|
Interest accrued |
6 |
4 | |
|
Other working capital accounts |
119 |
(118) | |
|
Securitization regulatory charges |
114 |
106 | |
|
Total |
(H) |
398 |
170 |
|
FFO, rolling 12 months |
(F)+(G)-(H) |
2,563 |
3,013 |
|
Add back special items (rolling 12 months pre-tax): |
|||
|
EWC Nuclear plant impairments and costs associated with decisions to close or sell plants |
24 |
4 | |
|
Operational FFO, rolling 12 months |
(I) |
2,587 |
3,017 |
|
Operational FFO to debt, excluding securitization debt |
(I)/(C) |
17.3% |
21.0% |
|
Totals may not foot due to rounding |
SOURCE Entergy Corporation
Article Date
4/26/2017Entergy Announces First Quarter Earnings Conference Call
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, April 19, 2017 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) will report first quarter earnings results before market open on Wednesday, April 26, 2017, and host a teleconference at 10 a.m. CT that day to discuss the earnings announcement and the company's financial performance. The teleconference may be accessed by dialing 844-309-6569, conference ID 56943997, no more than 15 minutes prior to the start of the call or by visiting Entergy's website at entergy.com. From time to time, Entergy posts new and/or revised materials on its website and on social media, and anticipates doing so in connection with this event. The presentation slides will be available on Entergy's website and the Entergy Investor Relations mobile web app at iretr.com before market open on the day of the call. A replay of the teleconference will be available until May 3, 2017, by dialing 855-859-2056, confirmation ID 56943997.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $10.8 billion and nearly 13,000 employees.
Additional investor information can be accessed at entergy.com/investor_relations
SOURCE Entergy Corporation
Article Date
4/19/20174/5/2017 - Entergy Declares Dividend
Entergy Declares Dividend
Source: PR Newswire
NEW ORLEANS, April 5, 2017 /PRNewswire/ -- The Board of Directors of Entergy Corporation (NYSE: ETR) has declared a quarterly dividend of $0.87 per common share. The payment date is June 1, 2017, to stockholders of record on May 11, 2017.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $10.8 billion and nearly 13,000 employees.
Online address: Entergy.com
Twitter: @Entergy
Facebook: www.facebook.com/entergy
SOURCE Entergy Corporation
Article Date
4/5/2017Entergy Completes Sale of James A. FitzPatrick Nuclear Power Plant to Exelon
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
SCRIBA, N.Y., March 31, 2017 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) completed the sale today of the James A. FitzPatrick Nuclear Power Plant in Scriba, NY, to Exelon Generation (NYSE: EXC). The transaction is another step in Entergy's exit from its merchant power business.
The completion of the transaction marks the culmination of months of preparation by employees from Entergy and Exelon to ensure a seamless transfer of the plant's federal operating license and many of FitzPatrick's approximately 600 employees to its new owner.
Entergy and Exelon announced the planned sale of FitzPatrick in August 2016, after Entergy announced its intention to close the plant in January 2017. A critical factor was enactment of New York State's Clean Energy Standard program, approved in 2016, that recognizes the zero emission attributes of New York's nuclear power plants.
FitzPatrick completed a refueling and maintenance outage in February that will enable the plant to run for another operating cycle. The 838-megawatt plant generates carbon-free electricity for more than 800,000 homes and businesses.
About Entergy
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $10.8 billion and nearly 13,000 employees.
Entergy's online address is entergy.com
SOURCE Entergy Corporation
Article Date
3/31/20172/15/2017 - Entergy Reports Fourth Quarter and Full Year Financial Results; Initiates 2017 Earnings Guidance
Entergy Reports Fourth Quarter and Full Year Financial Results; Initiates 2017 Earnings Guidance
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, Feb. 15, 2017 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported a fourth quarter 2016 loss of $(9.88) per share on an as-reported basis and earnings of 31 cents per share on an operational basis. For the full year, the company reported a loss of $(3.26) per share on an as-reported basis and operational earnings of $7.11 per share. The as-reported losses for the quarter and full year resulted from asset impairments reflecting the effects of strategic decisions in the EWC business.
"2016 was a pivotal year for our company – a year in which our objectives were ambitious and our execution was on the mark," said Entergy chairman and chief executive officer Leo Denault. "We completed our plan to exit the merchant power business and transition to a pure-play utility. While previously disclosed charges at our EWC business led to an as-reported loss, adjusted earnings at our core Utility, Parent & Other business increased by more than 40 percent in 2016. Our strong operational results for the year are the outcome of disciplined execution on our strategy over the past few years, a strategy intended to fundamentally reposition our company and set it on a steady, predictable earnings and dividend trajectory."
Business highlights included the following:
|
Consolidated Earnings (GAAP and Non-GAAP Measures) | ||||||
|
Fourth Quarter and Year-to-Date 2016 vs. 2015 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of special items) | ||||||
|
Fourth Quarter |
Year-to-Date | |||||
|
2016 |
2015 |
Change |
2016 |
2015 |
Change | |
|
As-Reported Earnings (Loss) ($ in millions) |
(1,769.1) |
99.6 |
(1,868.7) |
(583.6) |
(176.6) |
(407.1) |
|
Less Special Items |
(1,824.6) |
(183.0) |
(1,641.5) |
(1,855.3) |
(1,252.4) |
(602.9) |
|
Operational Earnings |
55.5 |
282.6 |
(227.1) |
1,271.7 |
1,075.9 |
195.8 |
|
Estimated Weather Impact (after-tax) |
19.1 |
(6.1) |
25.2 |
11.1 |
34.6 |
(23.5) |
|
As-Reported Earnings (Loss) (per share in $) |
(9.88) |
0.56 |
(10.44) |
(3.26) |
(0.99) |
(2.27) |
|
Less Special Items |
(10.19) |
(1.02) |
(9.17) |
(10.37) |
(6.99) |
(3.38) |
|
Operational Earnings |
0.31 |
1.58 |
(1.27) |
7.11 |
6.00 |
1.11 |
|
Estimated Weather Impact |
0.11 |
(0.03) |
0.14 |
0.06 |
0.19 |
(0.13) |
|
Totals may not foot due to rounding |
Consolidated Results
For fourth quarter 2016, the company reported a loss of $(9.88) per share on an as-reported basis and EPS of 31 cents on an operational basis, compared to fourth quarter 2015 EPS of 56 cents on an as-reported basis and operational EPS of $1.58. For the full year, the company reported an as-reported loss of $(3.26) per share and operational EPS of $7.11, compared to a 2015 as-reported loss of (99) cents per share and operational EPS of $6.00. Summary discussions by business are below.
Additional details, including information on OCF by business, are provided in Appendix A and a comprehensive analysis of quarterly and year-to-date variances is provided in Appendix B.
Utility, Parent & Other Results
For fourth quarter 2016, Utility, Parent & Other EPS were 35 cents on an as-reported basis and 27 cents on an adjusted basis. In fourth quarter 2015, Utility, Parent & Other as-reported EPS were $1.42 and a (12) cents per share loss on an adjusted basis. 2015 results included a significant income tax item, a portion of which was reserved for sharing with customers of ELL. Last year's results also reflected charges for outstanding regulatory matters; there were similar, but smaller, charges in the current period.
The current period results reflected continued growth in the Utility business, including effects of new rate actions that recover investments that benefit customers and improve returns.
Net revenue increased quarter-over-quarter driven largely by the Union acquisition, EAI's rate case and EMI's FRP. Revenue increases for Union included amounts to recover operating expenses for the assets.
Billed retail sales volume increased quarter-over-quarter. The increase was partly due to weather, but the Utility realized higher billed sales, even on a weather-adjusted basis, across all customer classes. However, estimated volume in the current unbilled period was lower than fourth quarter 2015.
Utility non-fuel O&M was higher than fourth quarter 2015 due partly to an increase in nuclear generation spending and higher fossil spending primarily related to Union. Pension and OPEB expenses declined quarter-over-quarter.
For the full year, 2016 Utility, Parent & Other EPS were $5.10 on an as-reported basis and $4.38 on an adjusted basis. In comparison, 2015 earnings were $4.97 per share on an as-reported basis and $3.08 per share on an adjusted basis. As-reported results for 2015 included significantly higher income tax items and more favorable weather. Results for 2016 also reflected the effects of continued investment as well as lower operating expenses and lower charges for outstanding regulatory matters.
Appendix C contains additional details on Utility financial and operational measures, including a schedule of Utility, Parent & Other adjusted earnings and EPS which excludes special items and weather and normalizes income taxes.
Entergy Wholesale Commodities Results
For fourth quarter 2016, EWC recorded a $(10.23) per share loss on an as-reported basis and an operational loss of (4) cents per share. For the comparable period in 2015, EWC recorded an as-reported loss of (86) cents per share and operational EPS of 16 cents.
The decrease in EWC's as-reported results was due largely to impairments and other expenses recorded as a result of strategic decisions for the wholesale business, including decisions to close Palisades and IPEC. Fourth quarter 2015 results also included a gain on the sale of Rhode Island State Energy Center. All of these were considered special items and excluded from operational earnings.
The quarter-over-quarter decline was also due partly to income tax items recorded in 2015, lower price and volume for nuclear assets and higher decommissioning expense (due partly to the establishment of decommissioning liabilities for Indian Point 3 and FitzPatrick in 2016 as a result of a trust transfer agreement Entergy entered into with NYPA). In the current period, EWC results also reflected expense reductions which resulted from recording final court decisions in several lawsuits against the DOE related to spent nuclear fuel storage costs.
For the full year, EWC reported a loss of $(8.36) per share on an as-reported basis and operational EPS of $2.01. In 2015, EWC realized an as-reported loss of $(5.96) per share and operational EPS of $1.03. Both periods reflected the effects of strategic decisions for the EWC business. Other drivers included lower net revenue from the nuclear business, higher decommissioning expense and lower realized earnings on decommissioning trusts. Conversely, 2016 results included significant income tax benefits recorded in the second quarter.
Appendix D contains additional details on EWC financial and operational measures, including a schedule of EWC operational adjusted EBITDA calculations.
Earnings Guidance
Entergy initiated its 2017 operational guidance in the range of $4.75 to $5.35 per share and Utility, Parent & Other adjusted EPS guidance range of $4.25 to $4.55. See webcast presentation slides for additional details.
The company has provided 2017 earnings guidance with regard to the non-GAAP measures of operational EPS and Utility, Parent and Other Adjusted EPS. These measures exclude from the corresponding GAAP financial measures the effect of special items, such as impairment charges, gains or losses on asset sales, and other gains or losses occurring as a result of strategic decisions such as the company's recent decisions to shut down or sell its merchant nuclear plants. The company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot reasonably estimate all of the special items that may occur for the periods presented. The company's current estimate for special items in 2017 relates to the decisions to close or sell its merchant nuclear plants; those anticipated special items are expected to decrease as-reported EPS by approximately $2.35 per share. Other special items may occur during the periods presented, the impact of which cannot reasonably be estimated at this time.
Earnings Teleconference
A teleconference will be held at 10 a.m. central time on Wednesday, Feb. 15, 2017, to discuss Entergy's fourth quarter earnings announcement and the company's financial performance. The teleconference may be accessed by visiting Entergy's website at www.entergy.com or by dialing 844-309-6569, conference ID 52887956, no more than 15 minutes prior to the start of the call. The webcast slide presentation is also posted to Entergy's website concurrent with this release, which was issued before market open on the day of the call. A replay of the teleconference will be available on Entergy's website at www.entergy.com and by telephone. The telephone replay will be available through Feb. 22, 2017, by dialing 855-859-2056, conference ID 52887956. This release and the webcast slide presentation are also available on the Entergy Investor Relations mobile web app at iretr.com.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $10.8 billion and more than 13,000 employees.
Entergy Corporation's common stock is listed on the New York and Chicago stock exchanges 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 slide presentation. Both documents are available on Entergy's Investor Relations website at www.entergy.com/investor_relations and on Entergy's Investor Relations mobile web app at iretr.com.
For definitions of certain operational performance measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the earnings release materials, see Appendix F and Appendix G.
Non-GAAP Financial Measures
This news release contains non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes 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 release and the presentation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Certain non-GAAP measures in this news release could differ from GAAP only in that the figure or ratio states or includes operational earnings. Operational earnings are not calculated in accordance with GAAP because they exclude the effect of "special items." Special items are unusual or non-recurring items or events or other non-routine items or events that management believes do not reflect the ongoing business of Entergy, and may include items such as impairment charges, gains or losses on asset sales, and other gains or losses occurring as a result of strategic decisions such as Entergy's recent decisions to shut down or sell its merchant nuclear plants. Operational earnings per share are presented for each of Entergy's reportable business segments as well as on a consolidated basis. In addition, other financial measures including net income (or earnings), adjusted for preferred dividends and tax effected interest expense; non-fuel operation and maintenance expenses; average total revenue; return on average invested capital; and return on average common equity are included on both an operational and as-reported basis. In each case, the metrics defined as "operational" would exclude the effect of special items as defined above. Entergy also reports Utility, Parent & Other adjusted earnings and earnings per share, which exclude from GAAP earnings the special items described above and weather and normalizes tax expense for the periods presented. Management believes that financial metrics calculated using operational earnings or otherwise adjusted as described above could provide useful information to investors in evaluating the ongoing results of Entergy's businesses and could assist investors in comparing Entergy's operating performance to the operating performance of others in the Utility sector.
Other non-GAAP measures, including adjusted EBITDA; operational adjusted EBITDA; gross liquidity; debt to capital ratio, excluding securitization debt; net debt to net capital ratio, excluding securitization debt; parent debt to total debt ratio, excluding securitization debt; debt to operational adjusted EBITDA, excluding securitization debt; operational FFO to debt ratio, excluding securitization debt; are measures Entergy uses internally for management and board discussions and cash budgeting and performance monitoring activities to gauge the overall strength of its business. Entergy believes the above data could provide useful information to investors in evaluating Entergy's ongoing financial results and flexibility, and could assist investors in comparing Entergy's credit and liquidity to the credit and liquidity of others in the Utility sector.
The non-GAAP financial measures and other reported adjusted items in this release are presented in addition to, and in conjunction with, results presented in accordance with GAAP. These non-GAAP financial measures should not be used to the exclusion of GAAP financial measures. 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, could provide a more complete understanding of factors and trends affecting Entergy's business. Investors are strongly encouraged to review Entergy's consolidated financial statements and publicly filed reports in their entirety and to not rely on any single financial measure. 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, Entergy's 2017 earnings guidance, its current financial and operational outlook, 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 press 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 rate proceedings, formula rate plans and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory costs and risks, including any changes resulting from the nuclear crisis in Japan following its catastrophic earthquake and tsunami; (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 strategic transactions that Entergy or its subsidiaries may undertake, including the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental or energy policies; and (i) the effects of technological changes and changes in commodity markets, capital markets or economic conditions, during the periods covered by the forward-looking statements.
Fourth Quarter 2016 Earnings Release Appendices and Financial Statements
Appendices
Seven appendices are presented in this section as follows:
A: Consolidated Results and Special Items
Appendix A-1 provides a comparative summary of consolidated EPS for current quarter and year-to-date 2016 versus 2015, including a reconciliation of GAAP as-reported earnings to non-GAAP operational earnings.
|
Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures Fourth Quarter and Year-to-Date 2016 vs. 2015 (See Appendix A-3 and Appendix A-4 for details on special items) | ||||||
|
(Per share in $) | ||||||
|
Fourth Quarter |
Year-to-Date | |||||
|
2016 |
2015 |
Change |
2016 |
2015 |
Change | |
|
As-reported |
||||||
|
Utility |
0.67 |
1.75 |
(1.08) |
6.34 |
6.12 |
0.22 |
|
Parent & Other |
(0.32) |
(0.33) |
0.01 |
(1.24) |
(1.15) |
(0.09) |
|
EWC |
(10.23) |
(0.86) |
(9.37) |
(8.36) |
(5.96) |
(2.40) |
|
Consolidated as-reported earnings |
(9.88) |
0.56 |
(10.44) |
(3.26) |
(0.99) |
(2.27) |
|
Less special items |
||||||
|
Utility |
- |
- |
- |
- |
- |
- |
|
Parent & Other |
- |
- |
- |
- |
- |
- |
|
EWC |
(10.19) |
(1.02) |
(9.17) |
(10.37) |
(6.99) |
(3.38) |
|
Consolidated special items |
(10.19) |
(1.02) |
(9.17) |
(10.37) |
(6.99) |
(3.38) |
|
Operational |
||||||
|
Utility |
0.67 |
1.75 |
(1.08) |
6.34 |
6.12 |
0.22 |
|
Parent & Other |
(0.32) |
(0.33) |
0.01 |
(1.24) |
(1.15) |
(0.09) |
|
EWC |
(0.04) |
0.16 |
(0.20) |
2.01 |
1.03 |
0.98 |
|
Consolidated operational earnings |
0.31 |
1.58 |
(1.27) |
7.11 |
6.00 |
1.11 |
|
Estimated weather impact |
0.11 |
(0.03) |
0.14 |
0.06 |
0.19 |
(0.13) |
|
Totals may not foot due to rounding |
See Appendix B for detailed earnings variance analysis. See Appendix A-3 for special items by driver.
Appendix A-2 provides the components of OCF contributed by each business for current quarter and year-to-date 2016 versus 2015.
|
Appendix A-2: Consolidated Operating Cash Flow | ||||||
|
Fourth Quarter and Year-to-Date 2016 vs. 2015 | ||||||
|
($ in millions) | ||||||
|
Fourth Quarter |
Year-to-Date | |||||
|
2016 |
2015 |
Change |
2016 |
2015 |
Change | |
|
Utility |
783 |
858 |
(75) |
2,861 |
2,907 |
(46) |
|
Parent & Other |
53 |
3 |
50 |
(108) |
(78) |
(30) |
|
EWC |
(90) |
81 |
(171) |
246 |
462 |
(216) |
|
Total OCF |
746 |
942 |
(195) |
2,999 |
3,291 |
(292) |
|
Totals may not foot due to rounding |
The quarter-over-quarter OCF decrease reflected timing in the recovery of fuel and purchased power costs, net of increases in Utility net revenue, and higher pension funding. These items were partially offset by changes in working capital.
For the full year, OCF declined due to timing in the recovery of fuel and purchased power costs, net of increases in Utility net revenue, and lower EWC net revenues. These items were partially offset by receipt of DOE litigation awards, lower severance and retention payments and lower refueling outage payments at EWC.
For both the fourth quarter and full year, intercompany income tax payments contributed to the line of business variances.
Appendix A-3 and Appendix A-4 list special items by business. Amounts are shown on both a net income basis and an EPS basis. Special items are included in as-reported earnings consistent with GAAP, but are excluded from operational earnings. As a result, operational EPS is considered a non-GAAP measure.
|
Appendix A-3: Special Items by Driver (shown as positive/(negative) impact on earnings or EPS) | ||||||
|
Fourth Quarter and Year-to-Date 2016 vs. 2015 | ||||||
|
Fourth Quarter |
Year-to-Date | |||||
|
2016 |
2015 |
Change |
2016 |
2015 |
Change | |
|
(Pre-tax except for income tax effects and total, $ in millions) |
||||||
|
EWC |
||||||
|
EWC Nuclear plant impairments and costs associated with decisions to close or sell plants |
(2,828.5) |
(400.7) |
(2,427.8) |
(2,909.8) |
(2,053.5) |
(856.3) |
|
Top Deer investment impairment |
- |
(36.8) |
36.8 |
- |
(36.8) |
36.8 |
|
Gain on the sale of RISEC |
- |
154.0 |
(154.0) |
- |
154.0 |
(154.0) |
|
DOE litigation awards for VY and FitzPatrick |
- |
- |
- |
33.8 |
- |
33.8 |
|
Income tax effect on adjustments above (a) |
1,003.9 |
100.4 |
903.5 |
1,020.7 |
683.8 |
336.9 |
|
Total EWC |
(1,824.6) |
(183.0) |
(1,641.5) |
(1,855.3) |
(1,252.4) |
(602.9) |
|
Total special items |
(1,824.6) |
(183.0) |
(1,641.5) |
(1,855.3) |
(1,252.4) |
(602.9) |
|
(After-tax, per share in $) (b) |
||||||
|
EWC |
||||||
|
EWC Nuclear plant impairments and costs associated with decisions to close or sell plants |
(10.19) |
(1.45) |
(8.74) |
(10.49) |
(7.42) |
(3.07) |
|
Top Deer investment impairment |
- |
(0.13) |
0.13 |
- |
(0.13) |
0.13 |
|
Gain on the sale of RISEC |
- |
0.56 |
(0.56) |
- |
0.56 |
(0.56) |
|
DOE litigation awards for VY and FitzPatrick |
- |
- |
- |
0.12 |
- |
0.12 |
|
Total EWC |
(10.19) |
(1.02) |
(9.17) |
(10.37) |
(6.99) |
(3.38) |
|
Total special items |
(10.19) |
(1.02) |
(9.17) |
(10.37) |
(6.99) |
(3.38) |
|
Totals may not foot due to rounding |
|
(a) |
Income tax effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply |
|
(b) |
EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply to each adjustment and then dividing by the fully diluted average shares outstanding for the period |
|
Appendix A-4: Special Items by Income Statement Line Item (shown as positive/(negative) impact on earnings) | ||||||
|
Fourth Quarter and Year-to-Date 2016 vs. 2015 | ||||||
|
(Pre-tax except for Income taxes – other and Total, $ in millions) | ||||||
|
Fourth Quarter |
Year-to-Date | |||||
|
2016 |
2015 |
Change |
2016 |
2015 |
Change | |
|
EWC |
||||||
|
Net revenue |
33.3 |
- |
33.3 |
40.7 |
- |
40.7 |
|
Non-fuel O&M |
(57.5) |
(6.2) |
(51.3) |
(75.6) |
(17.0) |
(58.6) |
|
Taxes other than income taxes |
(1.8) |
(0.5) |
(1.3) |
(5.5) |
(0.3) |
(5.2) |
|
Asset write-off and impairments |
(2,802.5) |
(394.0) |
(2,408.5) |
(2,835.6) |
(2,036.2) |
(799.4) |
|
Gain on sale of asset |
- |
154.0 |
(154.0) |
- |
154.0 |
(154.0) |
|
Miscellaneous net (other income) |
- |
(36.8) |
36.8 |
- |
(36.8) |
36.8 |
|
Income taxes (c) |
1,003.9 |
100.4 |
903.5 |
1,020.7 |
683.8 |
336.9 |
|
Total EWC |
(1,824.6) |
(183.0) |
(1,641.5) |
(1,855.3) |
(1,252.4) |
(602.9) |
|
Total special items (after-tax) |
(1,824.6) |
(183.0) |
(1,641.5) |
(1,855.3) |
(1,252.4) |
(602.9) |
|
Totals may not foot due to rounding |
|
(c) |
Income taxes represents the income tax effect of the special items which were calculated using the estimated income tax rate that is expected to apply to each item |
B: Variance Analysis
Appendix B-1 and Appendix B-2 provide details of current quarter and year-to-date 2016 versus 2015 as-reported and operational earnings variance analysis for Utility, Parent & Other, EWC and Consolidated.
|
Appendix B-1: As-Reported and Operational EPS Variance Analysis (d) | |||||||||||
|
Fourth Quarter 2016 vs. 2015 | |||||||||||
|
(After-tax, per share in $, sorted in consolidated operational column, most to least favorable) | |||||||||||
|
Utility |
Parent & Other |
EWC |
Consolidated | ||||||||
|
As-Reported |
Opera-tional |
As-Reported |
Opera-tional |
As- Reported |
Opera-tional |
As- Reported |
Opera- tional | ||||
|
2015 earnings |
1.75 |
1.75 |
(0.33) |
(0.33) |
(0.86) |
0.16 |
0.56 |
1.58 | |||
|
Net revenue |
0.83 |
0.83 |
(e) |
- |
- |
0.03 |
(0.09) |
(f) |
0.86 |
0.74 | |
|
Asset write-offs and impairments |
0.24 |
0.24 |
(g) |
- |
- |
(8.66) |
- |
(h) |
(8.42) |
0.24 | |
|
Taxes other than income taxes |
(0.01) |
(0.01) |
- |
- |
0.02 |
0.03 |
0.01 |
0.02 | |||
|
Preferred dividend requirements |
0.01 |
0.01 |
- |
- |
- |
- |
0.01 |
0.01 | |||
|
Other income (deductions)-other |
0.02 |
0.02 |
0.03 |
0.03 |
0.09 |
(0.04) |
(i) |
0.14 |
0.01 | ||
|
Gain on sale of asset |
- |
- |
- |
- |
(0.56) |
- |
(j) |
(0.56) |
- | ||
|
Interest expense and other charges |
(0.01) |
(0.01) |
(0.02) |
(0.02) |
0.01 |
0.01 |
(0.02) |
(0.02) | |||
|
Depreciation/ amortization expense |
(0.05) |
(0.05) |
(k) |
- |
- |
0.03 |
0.03 |
(0.02) |
(0.02) | ||
|
Non-fuel O&M |
(0.11) |
(0.11) |
(l) |
(0.01) |
(0.01) |
(0.14) |
0.05 |
(m) |
(0.26) |
(0.07) | |
|
Decommissioning expense |
(0.01) |
(0.01) |
- |
- |
(0.08) |
(0.08) |
(n) |
(0.09) |
(0.09) | ||
|
Income taxes – other |
(1.99) |
(1.99) |
(o) |
0.01 |
0.01 |
(0.11) |
(0.11) |
(p) |
(2.09) |
(2.09) | |
|
2016 earnings |
0.67 |
0.67 |
(0.32) |
(0.32) |
(10.23) |
(0.04) |
(9.88) |
0.31 | |||
|
Appendix B-2: As-Reported and Operational EPS Variance Analysis (d) | |||||||||||
|
Year-to-Date 2016 vs. 2015 | |||||||||||
|
(After-tax, per share in $, sorted in consolidated operational column, most to least favorable) | |||||||||||
|
Utility |
Parent & Other |
EWC |
Consolidated | ||||||||
|
As- Reported |
Opera- tional |
As- Reported |
Opera-tional |
As- Reported |
Opera-tional |
As- Reported |
Opera- Tional | ||||
|
2015 earnings |
6.12 |
6.12 |
(1.15) |
(1.15) |
(5.96) |
1.03 |
(0.99) |
6.00 | |||
|
Net revenue |
1.21 |
1.21 |
(e) |
- |
- |
(0.45) |
(0.60) |
(f) |
0.76 |
0.61 | |
|
Non-fuel O&M |
0.25 |
0.25 |
(l) |
(0.03) |
(0.03) |
0.14 |
0.35 |
(m) |
0.36 |
0.57 | |
|
Asset write-offs and impairments |
0.24 |
0.24 |
(g) |
- |
- |
(2.87) |
- |
(h) |
(2.63) |
0.24 | |
|
Taxes other than income taxes |
0.04 |
0.04 |
- |
- |
0.06 |
0.08 |
(q) |
0.10 |
0.12 | ||
|
Gain on sale of asset |
- |
- |
- |
- |
(0.56) |
- |
(j) |
(0.56) |
- | ||
|
Other income (deductions)-other |
0.05 |
0.05 |
(r) |
0.02 |
0.02 |
0.03 |
(0.10) |
(i) |
0.10 |
(0.03) | |
|
Depreciation/ amortization expense |
(0.17) |
(0.17) |
(k) |
- |
- |
0.14 |
0.14 |
(s) |
(0.03) |
(0.03) | |
|
Interest expense and other charges |
(0.05) |
(0.05) |
(t) |
(0.04) |
(0.04) |
0.02 |
0.02 |
(0.07) |
(0.07) | ||
|
Income taxes – other |
(1.32) |
(1.32) |
(o) |
(0.04) |
(0.04) |
1.23 |
1.23 |
(p) |
(0.13) |
(0.13) | |
|
Decommissioning expense |
(0.03) |
(0.03) |
- |
- |
(0.14) |
(0.14) |
(n) |
(0.17) |
(0.17) | ||
|
2016 earnings |
6.34 |
6.34 |
(1.24) |
(1.24) |
(8.36) |
2.01 |
(3.26) |
7.11 | |||
|
Totals may not foot due to rounding |
See appendix in the webcast slide presentation for additional details on EWC line item variances.
|
(d) |
EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply and then dividing by the fully diluted average shares outstanding for the period; income taxes – other represents income tax differences other than the tax effect of individual line items. |
|
Utility As-Reported Net Revenue Variance Analysis 2016 vs. 2015 ($ EPS) | ||
|
Fourth |
Year-to- Date | |
|
Estimated weather |
0.14 |
(0.13) |
|
Sales growth/pricing |
0.29 |
1.15 |
|
Regulatory charges |
0.38 |
0.32 |
|
Other |
0.02 |
(0.13) |
|
Total |
0.83 |
1.21 |
|
(e) |
The current quarter and year-to-date increases were due partly to rate changes associated with the Union acquisition, EAI's rate case and EMI's FRP. In addition, regulatory charges recorded in fourth quarter 2015, which were for tax sharing agreements, reduced net revenue in that period. The effect of weather was positive quarter-over-quarter but negative in the year-to-date variance. The year-to-date increase also reflected higher industrial usage. |
|
(f) |
The current quarter and year-to-date as-reported results included cost reimbursements which are part of the FitzPatrick sale agreement (classified as special items and offset in non-fuel O&M). The current quarter and year-to-date periods also reflected lower energy price and volume for nuclear assets. The sale of the RISEC facility in December 2015 also reduced net revenue period-over-period. In the year-to-date period, nuclear fuel expense declined due largely to impairments recorded in 2015. |
|
(g) |
The current quarter and year-to-date increases were driven by regulatory charges recorded in fourth quarter 2015 arising from the Waterford 3 replacement steam generator prudence review proceeding and the System Agreement termination settlement agreement. |
|
(h) |
The as-reported current quarter and year-to-date decreases were due primarily to non-cash impairment charges and related write-offs for Palisades and Indian Point Units 2 and 3 recorded in fourth quarter 2016. EWC also recorded impairment charges and related write-offs in 2015 for Pilgrim, FitzPatrick and Palisades. Both periods also included write-offs of ongoing capital investment for plants that continue to operate. |
|
(i) |
The current quarter and year-to-date as-reported increases were due largely to the fourth quarter 2015 asset impairment on EWC's ownership interest in the Top Deer wind generation investment, which was accounted for under the equity method of accounting (classified as a special item). The year-to-date operational decrease was due primarily to higher realized gains in 2015 on decommissioning trusts, including the rebalancing of VY's decommissioning trust portfolio. |
|
(j) |
The as-reported decreases in the current quarter and year-to-date periods were attributable to the fourth quarter 2015 gain on sale of the RISEC facility (classified as a special item). |
|
(k) |
The current quarter and year-to-date decreases were due primarily to additions to plant, including Union, which was acquired in March 2016. In the year-to-date period, the decrease was partially offset by a reduction in depreciation expense which resulted from litigation awards from the DOE in connection with spent nuclear fuel storage costs in third quarter 2016. |
|
(l) |
The current quarter decrease reflected higher nuclear generation spending (higher overall scope of work and higher labor costs) and increased fossil spending primarily related to the Union plant (offset in net revenue). Lower pension and OPEB expenses, stemming partly from a higher discount rate, partly offset the decreases. The year-to-date increase reflected lower pension and OPEB expenses and lower spending on fossil outages. Non-fuel O&M expense was also reduced as a result of litigation awards from the DOE in connection with spent nuclear fuel storage costs, a deferral recorded at EAI in first quarter 2016 and lower energy efficiency costs. The expense decreases were partially offset by Union expenses (acquired in 2016) (offset in net revenue) and higher nuclear generation spending. |
|
(m) |
The current quarter and year-to-date as-reported results included higher expenses resulting from the decisions to close or sell merchant nuclear plants (these expenses were considered special items and excluded from operational results). Fourth quarter 2016 also included FitzPatrick plant costs that are being reimbursed and offset in net revenue (also considered a special item). The current quarter and year-to-date variances also reflected the sale of the RISEC facility in December 2015, a reduction in expense for DOE litigation awards in connection with spent nuclear fuel storage costs and lower benefit expenses. These were partially offset by higher site expenses and an increase in costs related to Pilgrim's response to a planned NRC enhanced inspection. The year-to-date increase also reflected a reduction in expense for litigation proceeds received from the DOE in second quarter 2016 (approximately 12 cents EPS received for VY and FitzPatrick was considered a special item) and lower refueling outage expense, largely as a result of 2015 impairments. |
|
(n) |
The current quarter and year-to-date decreases were due to the establishment of decommissioning liabilities for Indian Point 3 and FitzPatrick in 2016 and revisions to decommissioning cost studies at other EWC nuclear facilities in 2015. |
|
(o) |
The current quarter and year-to-date decreases were due primarily to an income tax item in fourth quarter 2015 of approximately $334 million resulting from the ELL business combination (this was partly offset by customer sharing recorded as a regulatory charge, included in net revenue). A 2015 audit settlement in Mississippi of $15 million also contributed to the decreases. The year-to-date decrease also reflected a first quarter 2015 adjustment of $24 million involving the reversal of a portion of the provision for uncertain tax provisions related to interest accrual. These items were partly offset by the second quarter 2016 reversal of a portion of the provision for uncertain tax positions totaling $136 million for two previous positions that were resolved in the 2010-2011 tax audit (this was partly offset by customer sharing recorded as a regulatory charge, included in net revenue). |
|
(p) |
The current quarter decrease was due largely to state tax effects from the 2015 settlement on the 2008/2009 audit. The year-to-date increase also reflected the second quarter 2016 tax election which reduced income tax expense by $238 million. |
|
(q) |
The year-to-date increase was due largely to lower sales and use tax and the effect of the 2015 New York state audit settlement. |
|
(r) |
The year-to-date increase was due primarily to higher AFUDC-equity funds, resulting from higher average CWIP balances. |
|
(s) |
The year-to-date increase resulted from 2015 impairments, recording the effects of DOE litigation proceeds related to spent nuclear fuel storage costs and the sale of RISEC. |
|
(t) |
The year-to-date decrease resulted primarily from higher interest expense on long-term debt resulting from additional debt issuances. |
C: Utility Financial and Operational Measures
Appendix C-1 provides a comparative summary of Utility, Parent & Other adjusted earnings and EPS, which excludes the effects of special items and weather and normalizes income tax expense.
|
Appendix C-1: Utility, Parent & Other Adjusted Earnings and EPS - Reconciliation of GAAP to Non-GAAP Measures | ||||||
|
Fourth Quarter and Year-to-Date 2016 vs. 2015 (See Appendix A for details on special items) | ||||||
|
Fourth Quarter |
Year-to-Date | |||||
|
2016 |
2015 |
Change |
2016 |
2015 |
Change | |
|
($ in millions) |
||||||
|
Utility as-reported earnings |
120.4 |
313.7 |
(193.3) |
1,134.2 |
1,096.9 |
37.3 |
|
Parent & Other as-reported earnings (loss) |
(57.1) |
(59.5) |
2.3 |
(222.5) |
(205.6) |
(16.9) |
|
UP&O as-reported earnings |
63.3 |
254.3 |
(191.0) |
911.7 |
891.3 |
20.4 |
|
Less: |
||||||
|
Special items |
- |
- |
- |
- |
- |
- |
|
Weather |
31.0 |
(9.9) |
40.9 |
18.1 |
56.3 |
(38.2) |
|
Tax effect of weather (u) |
(12.0) |
3.8 |
(15.8) |
(7.0) |
(21.7) |
14.7 |
|
Estimated weather impact (after-tax) |
19.1 |
(6.1) |
25.1 |
11.1 |
34.6 |
(23.5) |
|
Customer sharing |
- |
(107.0) |
107.0 |
(16.1) |
(107.0) |
90.9 |
|
Tax effect of customer sharing |
- |
41.2 |
(41.2) |
6.2 |
41.2 |
(35.0) |
|
Other tax items |
(4.9) |
347.5 |
(352.4) |
126.9 |
370.0 |
(243.1) |
|
Tax items, net of customer sharing |
(4.9) |
281.6 |
(286.5) |
117.0 |
304.2 |
(187.2) |
|
UP&O adjusted earnings (loss) |
49.2 |
(21.3) |
70.5 |
783.6 |
552.5 |
231.1 |
|
(After tax, per share in $) |
||||||
|
UP&O as-reported earnings |
0.35 |
1.42 |
(1.07) |
5.10 |
4.97 |
0.13 |
|
Less: |
||||||
|
Special items |
- |
- |
- |
- |
- |
- |
|
Weather |
0.11 |
(0.03) |
0.14 |
0.06 |
0.19 |
(0.13) |
|
UP&O tax items, net of customer sharing |
(0.03) |
1.57 |
(1.60) |
0.66 |
1.70 |
(1.04) |
|
UP&O adjusted earnings (loss) |
0.27 |
(0.12) |
0.39 |
4.38 |
3.08 |
1.30 |
|
Totals may not foot due to rounding |
|
(u) |
Income tax effect is calculated by multiplying the pre-tax amount by the estimated income tax rates that are expected to apply to those adjustments |
Appendix C-2 provides a comparative summary of Utility operational performance measures.
|
Appendix C-2: Utility Operational Performance Measures | ||||||||
|
Fourth Quarter and Year-to-Date 2016 vs. 2015 (See Appendix G for reconciliation of GAAP to non-GAAP measures) | ||||||||
|
Fourth Quarter |
Year-to-Date | |||||||
|
2016 |
2015 |
% Change |
% |
2016 |
2015 |
% Change |
% | |
|
GWh billed |
||||||||
|
Residential |
8,077 |
7,385 |
9.4% |
1.5% |
35,112 |
36,068 |
(2.7%) |
(0.1%) |
|
Commercial |
7,259 |
6,979 |
4.0% |
1.1% |
29,197 |
29,348 |
(0.5%) |
(0.9%) |
|
Governmental |
635 |
627 |
1.2% |
1.2% |
2,547 |
2,514 |
1.3% |
1.3% |
|
Industrial |
11,158 |
11,152 |
0.1% |
0.1% |
45,739 |
44,382 |
3.1% |
3.1% |
|
Total retail sales |
27,129 |
26,143 |
3.8% |
0.8% |
112,595 |
112,312 |
0.3% |
1.0% |
|
Wholesale |
1,602 |
1,739 |
(7.9%) |
11,054 |
9,274 |
19.2% |
||
|
Total sales |
28,731 |
27,882 |
3.0% |
123,649 |
121,586 |
1.7% |
||
|
Number of electric retail customers |
||||||||
|
Residential |
2,452,686 |
2,431,984 |
0.9% |
|||||
|
Commercial |
352,147 |
348,840 |
0.9% |
|||||
|
Governmental |
17,731 |
17,899 |
(0.9%) |
|||||
|
Industrial |
46,252 |
46,572 |
(0.7%) |
|||||
|
Total retail customers |
2,868,816 |
2,845,295 |
0.8% |
|||||
|
As-reported net revenue ($ in millions) |
1,421 |
1,181 |
20.3% |
6,179 |
5,829 |
6.0% |
||
|
As-reported non-fuel O&M per MWh |
$24.62 |
$24.05 |
2.4% |
$20.16 |
$21.06 |
(4.3%) |
||
|
Operational non-fuel O&M per MWh |
$24.62 |
$24.05 |
2.4% |
$20.16 |
$21.06 |
(4.3%) |
||
The effects of weather were estimated using monthly heating degree days and cooling degree days from certain locations within each jurisdiction and comparing to "normal" weather based on 20 year historical data. The models used to estimate weather are updated periodically and subject to change.
D: EWC Financial and Operational Measures
Appendix D-1 provides a comparative summary of EWC operational adjusted EBITDA.
|
Appendix D-1: EWC Operational Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures | ||||||
|
Fourth Quarter and Year-to-Date 2016 vs. 2015 | ||||||
|
($ in millions) |
Fourth Quarter |
Year-to-Date | ||||
|
2016 |
2015 |
Change |
2016 |
2015 |
Change | |
|
Net income |
(1,832) |
(154) |
(1,678) |
(1,493) |
(1,066) |
(427) |
|
Add back: interest expense |
5 |
8 |
(3) |
23 |
27 |
(4) |
|
Add back: income taxes |
(1,016) |
(123) |
(893) |
(1,192) |
(610) |
(582) |
|
Add back: depreciation and amortization |
45 |
53 |
(8) |
200 |
239 |
(39) |
|
Subtract: interest and investment income |
21 |
33 |
(12) |
108 |
149 |
(41) |
|
Add back: decommissioning expense |
58 |
36 |
22 |
175 |
138 |
37 |
|
Adjusted EBITDA |
(2,761) |
(213) |
(2,548) |
(2,396) |
(1,421) |
(975) |
|
Add back pre-tax special items for: |
||||||
|
EWC Nuclear plant impairments and costs associated with decisions to close or sell plants |
2,829 |
401 |
2,428 |
2,910 |
2,054 |
856 |
|
Top Deer investment impairment |
- |
37 |
(37) |
- |
37 |
(37) |
|
Gain on the sale of RISEC |
- |
(154) |
154 |
- |
(154) |
154 |
|
DOE litigation awards for VY and FitzPatrick |
- |
- |
- |
(34) |
- |
(34) |
|
Operational adjusted EBITDA |
68 |
70 |
(2) |
480 |
515 |
(35) |
|
Totals may not foot due to rounding |
Appendix D-2 provides a comparative summary of EWC operational performance measures.
|
Appendix D-2: EWC Operational Performance Measures | ||||||
|
Fourth Quarter and Year-to-Date 2016 vs. 2015 (See Appendix G for reconciliation of GAAP to non-GAAP measures) | ||||||
|
Fourth Quarter |
Year-to-Date | |||||
|
2016 |
2015 |
% Change |
2016 |
2015 |
% Change | |
|
Owned capacity (MW) (v) |
4,800 |
4,880 |
- | |||
|
GWh billed |
9,397 |
10,135 |
(7.3%) |
35,881 |
39,745 |
(9.7%) |
|
As-reported average total revenue per MWh |
$54.07 |
$45.21 |
19.6% |
$51.55 |
$51.88 |
(0.6%) |
|
Adjusted operational average total revenue per MWh |
$43.72 |
$44.83 |
(2.5%) |
$48.16 |
$51.49 |
(6.5%) |
|
As-reported net revenue ($ in millions) |
387 |
379 |
2.1% |
1,542 |
1,666 |
(7.4%) |
|
As-reported non-fuel O&M per MWh |
$33.86 |
$27.67 |
22.4% |
$27.75 |
$25.99 |
6.8% |
|
Operational non-fuel O&M per MWh |
$27.74 |
$27.06 |
2.5% |
$25.65 |
$25.57 |
0.3% |
|
EWC Nuclear Fleet |
||||||
|
Capacity factor |
91% |
94% |
(3.2%) |
87% |
91% |
(4.4%) |
|
GWh billed |
8,881 |
9,561 |
(7.1%) |
33,551 |
35,859 |
(6.4%) |
|
As-reported average total revenue per MWh |
$54.25 |
$44.71 |
21.3% |
$51.90 |
$51.49 |
0.8% |
|
Adjusted operational average total revenue per MWh |
$43.29 |
$44.31 |
(2.3%) |
$48.28 |
$51.07 |
(5.5%) |
|
Production cost per MWh |
$23.00 |
$22.63 |
1.6% |
$22.93 |
$25.30 |
(9.4%) |
|
As-reported net revenue ($ in millions) |
382 |
371 |
3.0% |
1,533 |
1,613 |
(5.0%) |
|
Refueling outage days |
||||||
|
Indian Point 2 |
- |
- |
102 |
- |
||
|
Indian Point 3 |
- |
- |
- |
23 |
||
|
Palisades |
- |
19 |
- |
32 |
||
|
Pilgrim |
- |
- |
- |
34 |
||
|
(v) |
Investments in wind generation were sold in November 2016 |
See appendix in the webcast slide presentation for EWC hedging and price disclosures.
E: Consolidated Financial Performance Measures
Appendix E provides comparative financial performance measures for the current quarter. Financial performance measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP measures.
As-reported measures are computed in accordance with GAAP as they include all components of net income, including special items. Operational measures are non-GAAP measures as they are calculated using operational net income, which excludes the impact of special items.
|
Appendix E: GAAP and Non-GAAP Financial Performance Measures | |||
|
Fourth Quarter 2016 vs. 2015 (See Appendix G for reconciliation of GAAP to non-GAAP measures) | |||
|
For 12 months ending December 31 |
2016 |
2015 |
Change |
|
GAAP Measures |
|||
|
ROIC - as-reported |
(0.7%) |
1.0% |
(1.7%) |
|
ROE - as-reported |
(6.7%) |
(1.8%) |
(4.9%) |
|
Book value per share |
$45.12 |
$51.89 |
($6.77) |
|
End of period shares outstanding (millions) |
179.1 |
178.4 |
0.7 |
|
Non-GAAP Measures |
|||
|
ROIC - operational |
7.2% |
6.3% |
0.9% |
|
ROE - operational |
14.7% |
11.2% |
3.5% |
|
As of December 31 ($ in millions) |
2016 |
2015 |
Change |
|
GAAP Measures |
|||
|
Cash and cash equivalents |
1,188 |
1,351 |
(163) |
|
Revolver capacity |
3,720 |
3,582 |
138 |
|
Commercial paper |
344 |
422 |
(78) |
|
Total debt |
15,275 |
13,850 |
1,425 |
|
Securitization debt |
661 |
775 |
(114) |
|
Debt to capital |
64.8% |
59.1% |
5.7% |
|
Off-balance sheet liabilities: |
|||
|
Debt of joint ventures - Entergy's share |
72 |
77 |
(5) |
|
Leases - Entergy's share |
397 |
359 |
38 |
|
Power purchase agreements accounted for as leases |
166 |
195 |
(29) |
|
Total off-balance sheet liabilities |
635 |
631 |
4 |
|
Non-GAAP Measures |
|||
|
Debt to capital, excluding securitization debt |
63.8% |
57.7% |
6.1% |
|
Gross liquidity |
4,908 |
4,933 |
(25) |
|
Net debt to net capital, excluding securitization debt |
61.8% |
55.0% |
6.8% |
|
Parent debt to total debt, excluding securitization debt |
19.8% |
21.9% |
(2.1%) |
|
Debt to operational adjusted EBITDA, excluding securitization debt |
4.1x |
4.1x |
- |
|
Operational FFO to debt, excluding securitization debt |
18.8% |
25.7% |
(6.9%) |
F: Definitions, Abbreviations and Acronyms
Appendix F-1 provides definitions of certain operational performance measures, as well as GAAP and non-GAAP financial measures. Non-GAAP measures remove the effects of financial events that are not routine from commonly used financial measures.
|
Appendix F-1: Definitions | |
|
Utility Operational Performance Measures | |
|
GWh billed |
Total number of GWh billed to retail and wholesale customers |
|
Net revenue |
Operating revenue less fuel, fuel related expenses and gas purchased for resale, purchased power and other regulatory charges (credits) – net |
|
Non-fuel O&M |
Operation and maintenance expenses excluding fuel, fuel-related expenses and gas purchased for resale and purchased power |
|
Non-fuel O&M per MWh |
Non-fuel O&M per MWh of billed sales |
|
Number of retail customers |
Number of customers at end of period |
|
EWC Operational Performance Measures | |
|
As-reported average total revenue per MWh |
As-reported revenue per MWh billed (does not include revenue from investment in wind generation that was accounted for under the equity method of accounting, which was sold in November 2016 |
|
Adjusted average total revenue per MWh |
As-reported average total revenue per MWh, excluding revenue from special items included in operating revenue and the amortization of the Palisades below-market PPA and VY capacity revenue |
|
Average revenue under contract per kW-month (applies to capacity contracts only) |
Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and/or auction awards |
|
Average revenue per MWh on contracted volumes |
Revenue on a per unit basis at which generation output reflected in contracts is expected to be sold to third parties (including offsetting positions) at the minimum contract prices and at forward market prices at a point in time, given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market PPA for Palisades; revenue will fluctuate due to factors including market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at the time of option expiration, costs to convert firm LD to unit-contingent and other risk management costs |
|
Bundled capacity and energy contracts |
A contract for the sale of installed capacity and related energy, priced per MWh sold |
|
Capacity contracts |
A contract for the sale of the installed capacity product in regional markets managed by ISO New England, NYISO and MISO |
|
Capacity factor |
Normalized percentage of the period that the nuclear plants generate power |
|
Expected sold and market total revenue per MWh |
Total energy and capacity revenue on a per unit basis at which total planned generation output and capacity is expected to be sold given contract terms and market prices at a point in time, including estimates for market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at time of option expiration, costs to convert Firm LD to unit-contingent and other risk management costs, divided by total planned MWh of generation, excluding the revenue associated with the amortization of the Palisades below-market PPA |
|
Firm LD |
Transaction that requires receipt or delivery of energy at a specified delivery point (usually at a market hub not associated with a specific asset) or settles financially on notional quantities; if a party fails to deliver or receive energy, defaulting party must compensate the other party as specified in the contract, a portion of which may be capped through the use of risk management products |
|
Appendix F-1: Definitions | |
|
EWC Operational Performance Measures (continued) | |
|
GWh billed |
Total number of GWh billed to customers and financially-settled instruments (does not include amounts from investment in wind generation that was accounted for under the equity method of accounting and which was sold in November 2016 |
|
Net revenue |
Operating revenue less fuel, fuel-related expenses and purchased power |
|
Non-fuel O&M |
Operation and maintenance expenses excluding fuel, fuel-related expenses and gas purchased for resale, purchased power (does not include amounts from investment in wind generation that was accounted for under the equity method of accounting and which was sold in November 2016 |
|
Non-fuel O&M per MWh |
Non-fuel O&M per MWh billed |
|
Offsetting positions |
Transactions for the purchase of energy, generally to offset a Firm LD transaction |
|
Owned capacity (MW) |
Installed capacity owned and operated by EWC; RISEC (non-nuclear) was sold in December 2015 and investment in wind generation was sold in November 2016 |
|
Percent of capacity sold forward |
Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions |
|
Percent of planned generation under contract |
Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts or options that mitigate price uncertainty that may or may not require regulatory approval or approval of transmission rights or other conditions precedent; positions that are no longer classified as hedges are netted in the planned generation under contract |
|
Planned net MW in operation |
Amount of installed capacity to generate power and/or sell capacity, assuming intent to sell FitzPatrick in first half of 2017 and shutdown Pilgrim (May 31, 2019), Palisades (Oct. 1, 2018), Indian Point 2 (April 30, 2020) and Indian Point 3 (April 30, 2021) |
|
Planned TWh of generation |
Amount of output expected to be generated by EWC resources considering plant operating characteristics and outage schedules, assuming intent to sell FitzPatrick in first half of 2017; to shutdown Pilgrim (May 31, 2019), Palisades (Oct. 1, 2018), Indian Point 2 (April 30, 2020) and Indian Point 3 (April 30, 2021); uninterrupted normal plant operation |
|
Production cost per MWh |
Fuel and non-fuel O&M expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation), excluding special items |
|
Refueling outage days |
Number of days lost for scheduled refueling outage during the period |
|
Unit-contingent |
Transaction under which power is supplied from a specific generation asset; if the asset is in operational outage, seller is generally not liable to buyer for any damages, unless the contract specifies certain conditions such as an availability guarantee |
|
Financial Measures – GAAP | |
|
Book value per share |
End of period common equity divided by end of period shares outstanding |
|
Debt of joint ventures - Entergy's share |
Entergy's share of debt issued by business joint ventures at EWC |
|
Debt to capital ratio |
Total debt divided by total capitalization |
|
Leases - Entergy's share |
Operating leases held by subsidiaries capitalized at implicit interest rate |
|
Revolver capacity |
Amount of undrawn capacity remaining on corporate and subsidiary revolvers, including Entergy Nuclear Vermont Yankee |
|
ROIC - as-reported |
12-months rolling net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital |
|
ROE - as-reported |
12-months rolling net income attributable to Entergy Corporation divided by average common equity |
|
Securitization debt |
Debt associated with securitization bonds issued to recover storm costs from hurricanes Rita, Ike and Gustav at ETI and Hurricane Isaac at ENOI; the 2009 ice storm at EAI and investment recovery of costs associated with the cancelled Little Gypsy repowering project at ELL |
|
Total debt |
Sum of short-term and long-term debt, notes payable and commercial paper and capital leases on the balance sheet |
|
Appendix F-1: Definitions | |
|
Financial Measures - Non-GAAP | |
|
Adjusted EBITDA |
Earnings before interest, depreciation and amortization and income taxes excluding decommissioning expense; for Entergy consolidated, also excludes AFUDC-equity funds and subtracts securitization proceeds |
|
Adjusted EPS |
As-reported EPS excluding special items and weather and normalizing for income tax |
|
Debt to capital ratio, excluding securitization debt |
Total debt divided by total capitalization, excluding securitization debt |
|
Debt to operational adjusted EBITDA, excluding securitization debt |
End of period total debt excluding securitization debt divided by 12-months rolling operational adjusted EBITDA |
|
FFO |
OCF less AFUDC-borrowed funds, working capital items in OCF (receivables, fuel inventory, accounts payable, prepaid taxes and taxes accrued, interest accrued and other working capital accounts) and securitization regulatory charges |
|
Operational FFO to debt, excluding securitization debt |
12-months rolling operational FFO as a percentage of end of period total debt excluding securitization debt |
|
Gross liquidity |
Sum of cash and revolver capacity |
|
Operational adjusted EBITDA |
Adjusted EBITDA excluding effects of special items |
|
Operational EPS |
As-reported EPS adjusted to exclude the impact of special items |
|
Operational FFO |
FFO excluding effects of special items |
|
Parent debt to total debt ratio, excluding securitization debt |
End of period Entergy Corporation debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of total debt excluding securitization debt |
|
Net debt to net capital ratio, excluding securitization debt |
Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt |
|
ROIC - operational |
12-months rolling operational net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital |
|
ROE - operational |
12-months rolling operational net income attributable to Entergy Corporation divided by average common equity |
Appendix F-2 explains abbreviations and acronyms used in the quarterly earnings materials.
|
Appendix F-2: Abbreviations and Acronyms | |||
|
ADIT |
Accumulated deferred income taxes |
ISFSI |
Independent spent fuel storage installation |
|
AFUDC - borrowed funds |
Allowance for borrowed funds used during construction |
LPSC |
Louisiana Public Service Commission |
|
AFUDC - equity funds |
Allowance for equity funds used during construction |
LTM |
Last twelve months |
|
ALJ |
Administrative law judge |
MISO |
Midcontinent Independent System Operator, Inc. |
|
AMI |
Advanced metering infrastructure |
Moody's |
Moody's Investor Service |
|
ANO |
Arkansas Nuclear One (nuclear) |
MPSC |
Mississippi Public Service Commission |
|
APSC |
Arkansas Public Service Commission |
MTEP |
MISO Transmission Expansion Planning |
|
ARO |
Asset retirement obligation |
NEPOOL |
New England Power Pool |
|
CCGT |
Combined cycle gas turbine |
Ninemile 6 |
Ninemile Point Unit 6 |
|
CCNO |
Council of the City of New Orleans, Louisiana |
Non-fuel O&M |
Non-fuel operation and maintenance expense |
|
COD |
Commercial operation date |
NDT |
Nuclear decommissioning trust |
|
Cooper |
Cooper Nuclear Station |
NRC |
Nuclear Regulatory Commission |
|
CT |
Simple cycle combustion turbine |
NYISO |
New York Independent System Operator, Inc. |
|
CWIP |
Construction work in progress |
NYS |
New York State |
|
CZM |
Coastal zone management |
NYSDEC |
New York State Department of Environmental Conservation |
|
DCRF |
Distribution cost recovery factor |
NYSDOS |
New York State Department of State |
|
DOE |
U.S. Department of Energy |
NYPA |
New York Power Authority |
|
EAI |
Entergy Arkansas, Inc. |
NYPSC |
New York Public Service Commission |
|
EBITDA |
Earnings before interest, income taxes, depreciation and amortization |
NYSE |
New York Stock Exchange |
|
EGSL |
Entergy Gulf States Louisiana, L.L.C. |
O&M |
Operation and maintenance expense |
|
ELL |
Entergy Louisiana, LLC |
OCF |
Net cash flow provided by operating activities |
|
EMI |
Entergy Mississippi, Inc. |
OPEB |
Other post-employment benefits |
|
ENOI |
Entergy New Orleans, Inc. |
Palisades |
Palisades Power Plant (nuclear) |
|
ENVY |
Entergy Nuclear Vermont Yankee |
Pilgrim |
Pilgrim Nuclear Power Station (nuclear) |
|
ESI |
Entergy Services, Inc. |
PPA |
Power purchase agreement or purchased power agreement |
|
EPS |
Earnings per share |
PUCT |
Public Utility Commission of Texas |
|
ETI |
Entergy Texas, Inc. |
RFP |
Request for proposal |
|
ETR |
Entergy Corporation |
RISEC |
Rhode Island State Energy Center (CCGT) |
|
EWC |
Entergy Wholesale Commodities |
ROE |
Return on equity |
|
FERC |
Federal Energy Regulatory Commission |
ROIC |
Return on invested capital |
|
FFO |
Funds from operations |
RPCE |
Rough production cost equalization |
|
Firm LD |
Firm liquidated damages |
RSP |
Rate Stabilization Plan (ELL Gas) |
|
FitzPatrick |
James A. FitzPatrick Nuclear Power Plant (nuclear) |
SEC |
U.S. Securities and Exchange Commission |
|
FRP |
Formula rate plan |
SERI |
System Energy Resources, Inc. |
|
GAAP |
U.S. generally accepted accounting principles |
SPDES |
State Pollutant Discharge Elimination System |
|
Grand Gulf |
Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by System Energy |
TCRF |
Transmission cost recovery factor |
|
Indian Point 1 |
Indian Point Energy Center Unit 1 (nuclear) |
Top Deer |
Top Deer Wind Ventures, LLC |
|
Indian Point 2 |
Indian Point Energy Center Unit 2 (nuclear) |
Union |
Union Power Station (CCGT) |
|
Indian Point 3 |
Indian Point Energy Center Unit 3 (nuclear) |
UP&O |
Utility, Parent & Other |
|
IPEC |
Indian Point Energy Center (nuclear) |
VPSB |
Vermont Public Service Board |
|
ISO |
Independent system operator |
VY |
Vermont Yankee Nuclear Power Station (nuclear) |
|
ISES |
Independence Steam Electric Station (coal) |
WACC |
Weighted-average cost of capital |
|
WQC |
Water Quality Certification | ||
|
YOY |
Year-over-year | ||
G: GAAP to Non-GAAP Reconciliations
Appendix G-1, Appendix G-2 and Appendix G-3 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure.
|
Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures - Utility and EWC Non-fuel O&M per MWh, EWC and EWC Nuclear Average Total Revenue per MWh | |||||
|
($ in thousands except where noted) |
Fourth Quarter |
Year-to-Date | |||
|
2016 |
2015 |
2016 |
2015 | ||
|
Utility |
|||||
|
As-reported Utility non-fuel O&M |
(A) |
701,288 |
670,638 |
2,487,333 |
2,560,620 |
|
Operational Utility non-fuel O&M |
(B) |
701,288 |
670,638 |
2,487,333 |
2,560,620 |
|
Utility billed sales (GWh) |
(C) |
28,731 |
27,882 |
123,649 |
121,586 |
|
As-reported Utility non-fuel O&M per MWh |
(A/C) |
$24.41 |
$24.05 |
$20.12 |
$21.06 |
|
Operational Utility non-fuel O&M per MWh |
(B/C) |
$24.41 |
$24.05 |
$20.12 |
$21.06 |
|
EWC |
|||||
|
As-reported EWC non-fuel O&M |
(D) |
318,193 |
280,425 |
995,797 |
1,033,144 |
|
Special items included in non-fuel O&M: |
|||||
|
EWC Nuclear costs associated with decisions to close or sell plants |
57,513 |
6,205 |
109,392 |
16,979 | |
|
DOE litigation awards for VY and FitzPatrick |
- |
- |
(33,823) |
- | |
|
Total special items included in non-fuel O&M |
(E) |
57,513 |
6,205 |
75,569 |
16,979 |
|
Operational EWC non-fuel O&M |
(D-E) |
260,680 |
274,220 |
920,228 |
1,016,165 |
|
EWC billed sales (GWh) |
(F) |
9,397 |
10,135 |
35,881 |
39,745 |
|
As-reported EWC non-fuel O&M per MWh |
(D/F) |
$33.86 |
$27.67 |
$27.75 |
$25.99 |
|
Operational EWC non-fuel O&M per MWh |
[(D-E)/(F)] |
$27.74 |
$27.06 |
$25.65 |
$25.57 |
|
As-reported EWC operating revenue |
(G) |
508,104 |
458,184 |
1,849,638 |
2,061,827 |
|
Special items included in operating revenue: |
|||||
|
Decision to sell FitzPatrick |
(H) |
88,983 |
- |
96,461 |
- |
|
Operational EWC operating revenue |
(G-H) |
419,121 |
458,184 |
1,753,177 |
2,061,827 |
|
Less Palisades below-market PPA amortization and VY capacity revenue (q) |
(I) |
8,338 |
3,800 |
25,062 |
15,200 |
|
Adjusted operational EWC operating revenue |
[(G-H)]-(I) |
410,783 |
454,384 |
1,728,115 |
2,046,627 |
|
As-reported EWC average total revenue per MWh |
(G)/(F) |
$54.07 |
$45.21 |
$51.55 |
$51.88 |
|
Adjusted operational EWC average total revenue per MWh |
[[(G-H)]-(I)/(F)] |
$43.72 |
$44.83 |
$48.16 |
$51.49 |
|
As-reported EWC nuclear operating revenue |
(J) |
481,826 |
423,647 |
1,741,246 |
1,831,308 |
|
Special items included in operating revenue: |
|||||
|
Decision to sell or close FitzPatrick |
(K) |
88,983 |
- |
96,461 |
- |
|
Operational EWC nuclear operating revenue |
(J-K) |
392,843 |
427,447 |
1,644,785 |
1,846,508 |
|
Less Palisades below-market PPA amortization and VY capacity revenue (q) |
(L) |
8,338 |
3,800 |
25,062 |
15,200 |
|
Adjusted operational EWC nuclear operating revenue |
[(J-K)]-(L) |
384,505 |
456,164 |
1,619,723 |
1,407,660 |
|
EWC nuclear billed sales (GWh) |
(M) |
8,881 |
9,561 |
33,551 |
35,859 |
|
As-reported EWC nuclear average total revenue per MWh |
(J)/(M) |
$54.25 |
$44.71 |
$51.90 |
$51.49 |
|
Adjusted operational EWC nuclear average total revenue per MWh |
[[(J-K)]-(L)/(M)] |
$43.29 |
$44.31 |
$48.28 |
$51.07 |
|
Totals may not foot due to rounding |
|
(q) |
VY capacity revenue which is largely offset by purchased capacity following decision to close VY |
|
Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures - ROIC, ROE | |||
|
($ in millions except where noted) |
Fourth Quarter | ||
|
2016 |
2015 | ||
|
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months |
(A) |
(584) |
(177) |
|
Preferred dividends |
19 |
20 | |
|
Tax effected interest expense |
410 |
396 | |
|
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months adjusted for preferred dividends and tax effected interest expense |
(B) |
(155) |
239 |
|
Special items in prior quarters |
(30) |
(1,070) | |
|
EWC Nuclear plant impairments and costs associated with decisions to close or sell plants |
(1,825) |
(259) | |
|
Top Deer investment impairment |
- |
(24) | |
|
Gain on the sale of RISEC |
- |
100 | |
|
Total special items, rolling 12 months |
(C) |
(1,855) |
(1,253) |
|
Operational earnings, rolling 12 months adjusted for preferred dividends and tax effected interest expense |
(B-C) |
1,700 |
1,492 |
|
Operational earnings, rolling 12 months |
(A-C) |
1,271 |
1,076 |
|
Average invested capital |
(D) |
23,492 |
23,827 |
|
Average common equity |
(E) |
8,669 |
9,632 |
|
ROIC - as-reported |
(B/D) |
(0.7)% |
1.0% |
|
ROIC - operational |
[(B-C)/D] |
7.2% |
6.3% |
|
ROE - as-reported |
(A/E) |
(6.7)% |
(1.8)% |
|
ROE - operational |
[(A-C)/E] |
14.7% |
11.2% |
|
Totals may not foot due to rounding |
|
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures – Debt Ratios excluding Securitization Debt; Gross Liquidity; Debt to Operational Adjusted EBITDA excluding Securitization Debt; Operational FFO to Debt Ratio, excluding Securitization Debt | |||
|
($ in millions except where noted) |
Fourth Quarter | ||
|
2016 |
2015 | ||
|
Total debt |
(A) |
15,275 |
13,850 |
|
Less securitization debt |
(B) |
661 |
775 |
|
Total debt, excluding securitization debt |
(C) |
14,614 |
13,075 |
|
Less cash and cash equivalents |
(D) |
1,188 |
1,351 |
|
Net debt, excluding securitization debt |
(E) |
13,426 |
11,724 |
|
Total capitalization |
(F) |
23,560 |
23,425 |
|
Less securitization debt |
(B) |
661 |
775 |
|
Total capitalization, excluding securitization debt |
(G) |
22,899 |
22,650 |
|
Less cash and cash equivalents |
(D) |
1,188 |
1,351 |
|
Net capital, excluding securitization debt |
(H) |
21,711 |
21,299 |
|
Debt to capital |
(A/F) |
64.8 |
59.1 |
|
Debt to capital, excluding securitization debt |
(C/G) |
63.8 |
57.7 |
|
Net debt to net capital, excluding securitization debt |
(E/H) |
61.8 |
55.0 |
|
Revolver capacity |
(I) |
3,720 |
3,582 |
|
Gross liquidity |
(D+I) |
4,908 |
4,933 |
|
Entergy Corporation notes: |
|||
|
Due January 2017 |
- |
500 | |
|
Due September 2020 |
450 |
450 | |
|
Due July 2022 |
650 |
650 | |
|
Due September 2026 |
750 |
- | |
|
Total parent long-term debt |
(J) |
1,850 |
1,600 |
|
Revolver draw |
(K) |
700 |
835 |
|
Commercial paper |
(L) |
344 |
422 |
|
Total parent debt |
(J)+(K)+(L) |
2,894 |
2,857 |
|
Parent debt to total debt, excluding securitization debt |
[((J)+(K)+(L))/(C)] |
19.8% |
21.9% |
|
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures – Debt Ratios excluding Securitization Debt; Gross Liquidity; Debt to Operational Adjusted EBITDA excluding Securitization Debt; Operational FFO to Debt Ratio, excluding Securitization Debt (continued) | |||
|
($ in millions except where noted) |
Fourth Quarter | ||
|
2016 |
2015 | ||
|
Total debt |
(A) |
15,275 |
13,850 |
|
Less securitization debt |
(B) |
661 |
775 |
|
Total debt, excluding securitization debt |
(C) |
14,614 |
13,075 |
|
As-reported consolidated net income (loss), rolling 12 months |
(565) |
(157) | |
|
Add back: interest expense, rolling 12 months |
666 |
643 | |
|
Add back: income taxes, rolling 12 months |
(817) |
(643) | |
|
Add back: depreciation and amortization, rolling 12 months |
1,347 |
1,337 | |
|
Add back: regulatory charges (credits), rolling 12 months |
94 |
175 | |
|
Subtract: securitization proceeds, rolling 12 months |
132 |
137 | |
|
Subtract: interest and investment income, rolling 12 months |
145 |
187 | |
|
Subtract: AFUDC-equity funds, rolling 12 months |
68 |
52 | |
|
Add back: decommissioning expense, rolling 12 months |
327 |
280 | |
|
Adjusted EBITDA, rolling 12 months |
(D) |
707 |
1,259 |
|
Add back: special item resulting from EWC Nuclear plant impairments and costs associated with decisions to close or sell plants (pre-tax) |
2,910 |
2,054 | |
|
Add back: special item for DOE litigation awards for VY and FitzPatrick, rolling 12 months (pre-tax) |
(34) |
- | |
|
Add back: special item for Top Deer investment impairment, rolling 12 months (pre-tax) |
- |
37 | |
|
Add back: special item for gain on the sale of RISEC, rolling 12 months (pre-tax) |
- |
(154) | |
|
Operational adjusted EBITDA, rolling 12 months |
(E) |
3,583 |
3,196 |
|
Debt to operational adjusted EBITDA, excluding securitization debt |
(C)/(E) |
4.1x |
4.1x |
|
Net cash flow provided by operating activities, rolling 12 months |
(F) |
2,999 |
3,291 |
|
AFUDC-borrowed funds used during construction, rolling 12 months |
(G) |
(34) |
(27) |
|
Working capital items in net cash flow provided by operating activities, rolling 12 months: |
|||
|
Receivables |
(97) |
38 | |
|
Fuel inventory |
38 |
(12) | |
|
Accounts payable |
174 |
(135) | |
|
Prepaid taxes and taxes accrued |
(29) |
82 | |
|
Interest accrued |
(7) |
(11) | |
|
Other working capital accounts |
31 |
(114) | |
|
Securitization regulatory charges |
114 |
107 | |
|
Total |
(H) |
224 |
(45) |
|
FFO, rolling 12 months |
(F)+(G)-(H) |
2,741 |
3,309 |
|
Add back: special item resulting from EWC Nuclear plant impairments and costs associated with decisions to close or sell plants (pre-tax) |
6 |
55 | |
|
Operational FFO, rolling 12 months |
(I) |
2,747 |
3,364 |
|
Operational FFO to debt, excluding securitization debt |
(I)/(C) |
18.8% |
25.7% |
|
Totals may not foot due to rounding |
SOURCE Entergy Corporation
Article Date
2/15/2017Entergy Announces Fourth Quarter Earnings Conference Call
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, Feb. 8, 2017 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) will report fourth quarter and full year earnings results before market open on Wednesday, Feb. 15, 2017, and host a teleconference at 10 a.m. CT that day to discuss the earnings announcement and the company's financial performance. The teleconference may be accessed by dialing 844-309-6569, conference ID 52887956, no more than 15 minutes prior to the start of the call or by visiting Entergy's website at entergy.com. From time to time, Entergy posts new and/or revised materials on its website and on social media, and anticipates doing so in connection with this event. The presentation slides will be available on Entergy's website and the Entergy Investor Relations mobile web app at iretr.com before market open on the day of the call. A replay of the teleconference will be available until Feb. 22, 2017, by dialing 855-859-2056, confirmation ID 52887956.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
Additional investor information can be accessed at entergy.com/investor_relations
SOURCE Entergy Corporation
Article Date
2/8/20171/27/2017 - Entergy Declares Dividend
Entergy Declares Dividend
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, Jan. 27, 2017 /PRNewswire/ --The Board of Directors of Entergy Corporation (NYSE: ETR) has declared a quarterly dividend of $0.87 per common share. The payment date is March 1, 2017, to stockholders of record on Feb. 9, 2017.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
Online address: Entergy.com
Twitter: @Entergy
Facebook: www.facebook.com/entergy
SOURCE Entergy Corporation
Article Date
1/27/2017Changes Ahead for Company's Executive Leadership Team: Bill Mohl, President of Entergy's Wholesale Business, Announces Retirement
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, Jan. 18, 2017 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) has announced that Bill Mohl, president of Entergy Wholesale Commodities and a corporate officer, will retire after more than 35 years in the energy business effective Feb. 28, 2017. Mohl's planned retirement comes as the company is executing its strategy to exit from the merchant power business, operated by EWC, and focusing on the growth of its regulated utility business.
Mohl's tenure in the energy industry, including 15 years with Entergy, spans multiple companies, and the regulated utility and unregulated energy businesses, including power, natural gas and gas liquids. Throughout his career, Mohl has demonstrated a proven track-record for transforming business and working collaboratively across the industry and within organizations to achieve objectives.
Mohl joined Entergy in 2002 as the director of special projects responsible for developing the procurement process for long-term resources for all of the regulated utility operating companies. In his career with the company, he has held multiple leadership roles of increasing responsibility, including vice president of commercial operations, and vice president of system planning and operations, before being named chairman, president and chief executive officer of the former Entergy Louisiana LLC and Entergy Gulf States Louisiana LLC utilities. Together, the companies served more than 1 million electric customers and approximately 200,000 gas customers.
During his career at Entergy, Mohl was instrumental in executing the portfolio transformation strategy resulting in numerous power plant acquisitions; securing the required regulatory approvals to move the Louisiana electric utilities into the MISO market; and developing and executing the business strategy to optimize the EWC business, as well as the eventual exit from this business due to challenging market conditions.
"Bill's contributions have been key in helping us to achieve our business objectives," said Leo P. Denault, Entergy's chairman and CEO. "In particular, the successful transition from the merchant power business is allowing us to focus on growing the utility. His leadership, business perspective and ability to achieve results are characteristics that made him an important member of our senior leadership team."
Prior to joining Entergy, Mohl served seven years at Houston-based Koch Industries in several leadership roles including vice president of Koch Energy Trading, chief operating officer of Koch Midstream Services and chief operating officer of Koch Investment Group. Mohl began his career with Denver-based Xcel Energy where he held roles in system operations over 14 years.
Because Entergy is transitioning from the wholesale power business, Mohl's responsibilities will move to other senior leaders within the business effective March 1.
Mohl has been an advocate on behalf of Entergy and the industry for the reform of the power markets structure and served on the executive committee and board of directors of both the Nuclear Energy Institute and the Electric Power Supply Association.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power, making it one of the nation's leading nuclear generators. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of more than $12 billion and approximately 13,000 employees.
Entergy's online address is: entergy.com
Twitter: @entergy; @entergynuclear
Facebook: www.facebook.com/entergy or entergy nuclear
SOURCE Entergy Corporation
Article Date
1/18/2017Entergy, NY Officials Agree on Indian Point Closure in 2020-2021
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BUCHANAN, N.Y., Jan. 9, 2017 /PRNewswire/ -- The two operating units at the Indian Point Energy Center will close in 2020-2021 after powering New York for more than four decades with clean, safe, and reliable electricity. The early and orderly shutdown is part of a settlement under which New York State has agreed to drop legal challenges and support renewal of the operating licenses for Indian Point, located in the Village of Buchanan in northern Westchester County. The shutdown will complete Entergy's exit from its merchant power business because of sustained low wholesale energy prices.
"We thank our nearly 1,000 dedicated employees for operating a world-class nuclear power generating facility at top levels of safety, security and reliability, as well as the community for supporting us," said Leo Denault, Entergy's chairman and chief executive officer. "We are committed to treating our employees fairly and will help those interested in other opportunities to relocate within the Entergy system."
"Since purchasing the plants 15 years ago, we have invested more than $1.3 billion in safety and reliability improvements. The plants have delivered hundreds of millions of megawatt hours of virtually emissions-free power to the Hudson Valley and New York City safely."
Decision Driven By Economics
"Key considerations in our decision to shut down Indian Point ahead of schedule include sustained low current and projected wholesale energy prices that have reduced revenues, as well as increased operating costs. In addition, we foresee continuing costs for license renewal beyond the more than $200 million and 10 years we have already invested," said Bill Mohl, president of Entergy Wholesale Commodities. "Record low gas prices, due primarily to supply from the Marcellus Shale formation, have driven down power prices by about 45 percent, or by about $36 per megawatt-hour, over the last ten years, to a record low of $28 per megawatt-hour. A $10 per megawatt-hour drop in power prices reduces annual revenues by approximately $160 million for nuclear power plants such as Indian Point."
"We appreciate the efforts of our employees who have made Indian Point one of the most reliable generating stations in New York State," Mohl added.
Independent Experts Continuously Evaluate Plant Safety
Inspectors at the US Nuclear Regulatory Commission, with special expertise and training in nuclear power and strict licensing and operational guidelines, ranked the plant in the agency's top regulatory column for safety following more than 6,000 hours of inspections in 2016.
Unit 2 has been online for 187 days continuously and Unit 3 for 390 days continuously. Under Entergy's ownership, Indian Point's reliability has increased significantly – to a capacity factor1 of greater than 90 percent from approximately 60 percent under prior owners. Entergy has demonstrated its commitment to the reliable operation of the facility, investing approximately $500 million in capital improvements over the last five years and a total of more than $1.3 billion since it bought the plants.
Indian Point has been safely generating power for New York since 1962 – first by Unit 1 until 1974, then Units 2 and 3, providing economic, environmental and electric grid reliability benefits for millions of New Yorkers.
Details of Settlement with New York State
Under the agreement, Indian Point Unit 2 will shut down by April 30, 2020 and Unit 3 by April 30, 2021. Other key terms include:
Company Continues to Pursue Licenses for Remaining Operating Years
Entergy filed a license renewal application for both Indian Point operating units in April 2007, and NRC Staff in its Safety Evaluation Report concluded that no issues would preclude safe operation during the period of a renewed license. Under the settlement, Entergy will continue to pursue license renewal, unopposed by the state, for the remaining operating years, and will work on plans to mitigate the economic impact of the shutdown on its employees and the surrounding community. Both units remain under the NRC's normal oversight, to which Entergy remains committed.
Corporate Strategy to Exit Merchant Power Business
With today's announcement, Entergy is providing certainty and time for stakeholders to prepare for an early and orderly shutdown. The decision follows announcements of other plant shutdowns or sales of Entergy's merchant assets that will enable the company to exit the merchant power business and focus on growing its regulated utility, including ensuring that its southern nuclear power plants continue their safe and reliable operations. Entergy's prior announcements include the planned sale of the James A. FitzPatrick nuclear power plant in upstate New York, the closure and planned sale of the Vermont Yankee nuclear plant, the sale of the Rhode Island State Energy Center natural gas-fired power plant, and the planned shutdowns of the Pilgrim nuclear plant in Massachusetts and the Palisades nuclear plant in Michigan.
Financial Implications
As a result of its agreement to shut down Indian Point Units 2 and 3, Entergy will recognize a non-cash impairment charge of approximately $2.4 billion pre-tax and $1.5 billion after-tax in the fourth quarter of 2016. In addition to the impairment charge, through the end of 2021 Entergy expects to record additional charges totaling approximately $180 million related to severance and employee retention costs.
The impact on free cash flow from the settlement is expected to be approximately neutral through the end of operations. Impact to free cash flow includes expected contributions to the decommissioning trust funds, severance and retention payments and changes in capital expenditures and operating cash flows. The actual amount of the anticipated contribution to the decommissioning trusts will be determined later.
About Indian Point and Entergy
Indian Point Energy Center, in Buchanan, N.Y., is home to two operating nuclear power plants, Unit 2 and Unit 3, which generate approximately 2,000 megawatts of electricity for homes, business and public facilities in New York City and Westchester County. Indian Point Unit 2 began commercial operation in 1974 and Unit 3 in 1976. Entergy purchased Unit 3 in 2000 from the New York Power Authority and Unit 2 -- along with the permanently closed Unit 1 -- in 2001 from Consolidated Edison.
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
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, Entergy's plans and expectations with respect to the settlement relating to the Indian Point Energy Center, including without limitation the anticipated financial implications of the settlement, and other statements of Entergy's plans, beliefs or expectations included in 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 rate proceedings, formula rate plans and other cost recovery mechanisms; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory costs and risks, including any changes resulting from the nuclear crisis in Japan following its catastrophic earthquake and tsunami; (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 strategic transactions that Entergy or its subsidiaries may undertake, including 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; and (h) the effects of technological changes and changes in economic conditions and conditions in commodity and capital markets during the periods covered by the forward-looking statements.
Indian Point Energy Center's online address is safesecurevital.com and Entergy's online address is entergy.com
1 Capacity Factor is the ratio of a plant's actual output compared to its potential at continuous full power during a given period
SOURCE Entergy Corporation
Article Date
1/9/2017Palisades Power Purchase Agreement to End Early; Nuclear Plant to Close in 2018
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
COVERT, Mich., Dec. 8, 2016 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) and Consumers Energy, Michigan's largest utility and the principal subsidiary of CMS Energy (NYSE: CMS), have agreed to an early termination of their power purchase agreement (PPA) for the Palisades Power Plant in Covert Township in 2018, lowering the costs to Consumers' customers by as much as $172 million over four years. The agreement is subject to regulatory approvals. Separately, and assuming regulatory approvals are obtained for the PPA termination, Entergy intends to shut down the Palisades nuclear power plant permanently on Oct. 1, 2018.
"Entergy recognizes the consequences of a Palisades shutdown for our approximately 600 employees who have run the plant safely and reliably, and for the surrounding community, and we will work closely with both to provide support during the transition," said Leo Denault, Entergy's chairman and chief executive officer. "We determined that a shutdown in 2018 is prudent when comparing the transaction to the business risks of continued operation."
The original agreement committed Consumers Energy to purchase nearly all of the power that Palisades generates through April 2022. Under the current plan, and assuming regulatory approval of the request to terminate the PPA in 2018, Palisades will be refueled as scheduled in the spring of 2017 and operate through the end of the fuel cycle, then permanently shut down on Oct. 1, 2018.
Since first entering into a PPA in 2007, when Entergy purchased Palisades from Consumers Energy, market conditions have changed substantially, and more economic alternatives are now available to provide reliable power to the region. The transaction is expected to result in $344 million in savings, $172 million of which is expected to lower Consumers Energy customers' costs over the early termination period from 2018 to 2022, and $172 million of which Consumers Energy will pay to Entergy for early PPA termination. The early termination payment to Entergy will help assure the plant's transition from operations to decommissioning, maintaining our commitment to meet US Nuclear Regulatory Commission requirements.
To support the community during the transition, Entergy and the Consumers Energy Foundation will provide a total of $10 million over several years in economic development funding for the Southwest Michigan region. The companies will consult with the Council of Michigan Foundations and local stakeholders as it relates to the distribution of these funds. Of the $10 million, the Consumers Energy Foundation will contribute $2 million and Entergy $8 million. The process for reviewing requests for funds and distributing them will be announced later, with a focus on sustainable economic development that will broaden the community's tax base.
"Entergy is committed to treating our employees fairly throughout this process and will assist employees who want to relocate within Entergy or leave the company," said Bill Mohl, president of Entergy Wholesale Commodities, a business unit within Entergy. "Additionally, Consumers Energy has committed to work closely with Entergy as part of its ongoing talent recruitment efforts and will consider potential placement of up to 180 appropriately skilled employees from Palisades into the utility's workforce over time."
Consumers Energy plans to ask the Michigan Public Service Commission to approve the early termination of the PPA, effective May 31, 2018. CMS and Palisades will sign a new PPA under which the plant would continue to operate until Oct. 1, 2018. Entergy will notify the power grid operator, the Midcontinent Independent System Operator, as well as the NRC, of its intent to permanently shut down and decommission Palisades.
Financial Implications
As a result of the agreement to terminate the PPA and its intention to shut down the plant, Entergy will recognize a non-cash impairment charge of approximately $390 million ($252 million after-tax) in the fourth quarter of 2016. In addition to the impairment charge, through the end of 2018 Entergy expects to record additional charges totaling approximately $55 million related to severance and employee retention costs.
The impact on free cash flow from the agreement is expected to be positive compared to the alternative of closing the plant at the end of the current PPA. The expected changes in free cash flow include the payment for early termination of the PPA, an expected contribution to the decommissioning trust fund, severance and retention costs and changes in capital expenditures and operating cash flows. The actual amount of the anticipated contribution to the decommissioning trust will be determined later.
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, Entergy's plans and expectations with respect to the Palisades Power Plant and the anticipated financial effects of the agreement to terminate the PPA and planned shutdown of the plant and other statements of Entergy's plans, beliefs or expectations included in 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 rate proceedings, formula rate plans and other cost recovery mechanisms; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory costs and risks, including any changes resulting from the nuclear crisis in Japan following its catastrophic earthquake and tsunami; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning Entergy's other 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 strategic transactions that Entergy or its subsidiaries may undertake, including 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 and (h) the effects of technological changes and changes in economic conditions and conditions in commodity and capital markets during the periods covered by the forward-looking statements.
Background Information
The Palisades Power Plant employs about 600 workers, and has been a part of the Van Buren County community since it began generating electricity in 1971. The plant generates 811 megawatts of virtually carbon-free electricity, enough to power more than 800,000 homes. Additional information on today's announcement is available at www.entergy.com and www.palisadespower.com.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
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SOURCE Entergy Corporation
Article Date
12/8/201611/17/2016 - Powering the Future of Louisiana
Powering the Future of Louisiana
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BATON ROUGE, La., Nov. 17, 2016 /PRNewswire/ -- Entergy Louisiana, LLC today received approval from the Louisiana Public Service Commission to build a new natural gas-fired, combined-cycle power plant in St. Charles Parish.
The LPSC vote clears the way for Entergy Louisiana to move forward with construction on the 980-megawatt unit in Montz, approximately 30 miles from New Orleans. Scheduled to be in service by June 2019, the plant will cost approximately $869 million to build including transmission and other project-related costs.
"Entergy Louisiana's investment in the St. Charles Power Station will power the lives of Louisiana residents for generations to come," said Phillip May, president and CEO of Entergy Louisiana. "We appreciate the Louisiana Public Service Commission's comprehensive review and decision on our proposal to build this much-needed plant.
"It will provide southeast Louisiana with a reliable source of clean, affordable energy to meet customer demand and help drive economic growth. Building the plant in the southeast Louisiana region will help maintain reliability of the electric grid and facilitate restoration of the grid following major storm events affecting the transmission system."
The highly efficient, state-of-the-art plant will be one of the cleanest fossil fuel-fired units in Entergy Louisiana's generation fleet. Because of the plant's high efficiency, it is projected that customers will save more than $1.3 billion over the anticipated 30-year life of the unit. Customer savings are projected to exceed the project's construction cost in less than 10 years.
The plant's construction phase will generate on average an estimated 2,000 direct and indirect jobs a year across the state, increase Louisiana business sales by $1.4 billion and grow household earnings by $476.8 million, according to an analysis by Louisiana economist Dr. Loren Scott.
Entergy Louisiana will employ approximately 27 people to operate the plant.
Entergy Louisiana decided to build the unit after evaluating it against other options submitted through a 2014 request for proposals for power resources to supply southeast Louisiana. An independent monitor oversaw the procurement and selection process, which was conducted in consultation with LPSC staff.
"We are committed to meeting our customers' power needs 24 hours a day, seven days a week. A modern, efficient unit like the St. Charles Power Station is needed in the southeast Louisiana region to maintain reliability as our existing generation fleet ages," May said.
Apart from Ninemile Point Unit 6, which was completed in December 2014, the average age of Entergy Louisiana's existing fossil generation units in southeast Louisiana is more than 40 years.
Entergy Louisiana, LLC provides electric service to more than one million Louisiana customers. Additionally, the company provides natural gas service to nearly 93,000 customers in the greater Baton Rouge area. With operations in southern, central and northeastern Louisiana, the company is a subsidiary of Entergy Corporation.
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
entergylouisiana.com
facebook.com/EntergyLA
Twitter: @EntergyLA
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SOURCE Entergy Corporation
Article Date
11/17/2016Vermont Yankee's Decommissioning to be Accelerated by Decades
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
VERNON, Vermont, Nov. 8, 2016 /PRNewswire/ -- Entergy Corp. (NYSE: ETR) announced today an agreement to sell Entergy Nuclear Vermont Yankee and transfer the US Nuclear Regulatory Commission licenses to subsidiaries of NorthStar Group Services, Inc. to accelerate decommissioning and site restoration by decades. In addition, Entergy announced plans to accelerate the transfer of all spent nuclear fuel to dry cask storage at the Vermont Yankee Nuclear Power Station, from 2020 to 2018.
The sale of Entergy Nuclear Vermont Yankee (ENVY) is subject to closing conditions, including approval by the NRC and the Vermont Public Service Board. Entergy and NorthStar will ask the Public Service Board to approve proposed site restoration standards that are generally consistent with those of other regional decommissioning projects. The companies anticipate that the transaction will close by the end of 2018.
"By accelerating decommissioning, we are fulfilling a commitment we made in 2013 to decommission Vermont Yankee as soon as reasonably possible," said Bill Mohl, President, Entergy Wholesale Commodities. "Decommissioning and site restoration, drawing on NorthStar's expertise, will provide economic development for the region."
Mohl added, "For Entergy, this transaction enables us to manage financial risk and reduce our company's merchant power footprint."
NorthStar, based in New York, is one of the premier US dismantling and remediation companies and is partnering through a subsidiary with industry leaders AREVA, Waste Control Specialists and Burns & McDonnell to perform specialized services drawing on each company's core competencies. The NorthStar team members have collectively worked on more than 300 nuclear and non-nuclear power plant projects over the past 15 years and bring deep expertise in complex and specialized tasks such as reactor vessel segmentation, waste packaging/transportation/disposal, environmental remediation, site closure and spent fuel management.
"Our in-house expertise, combined with the proven track record of our partners, provides the complete package of skills needed to ensure the timely, safe, cost-efficient decommissioning and restoration of the Vermont Yankee site," said Scott State, NorthStar's chief executive officer. "Our primary objective is to complete the decommissioning of the non-Independent Spent Fuel Storage Installation portion of the site decades earlier than originally planned so that a majority of Vermont Yankee can be re-developed to promote business for the region."
Under Entergy's original schedule, as outlined in its Post Shutdown Decommissioning Activities Report filed with the NRC, Entergy expected to initiate decontamination and dismantlement in 2068, with projected completion of both decommissioning and site restoration by 2075. Under the agreement with Entergy, NorthStar has committed to initiate decontamination and dismantlement by 2021 and to complete decommissioning and restoration of the Vermont Yankee site (with the exception of the ISFSI), by 2030. Thereafter, NorthStar will continue to operate and maintain the ISFSI until the US Department of Energy fulfills its statutory and contractual obligations to remove all of the spent nuclear fuel from Vermont Yankee. NorthStar will then decommission the ISFSI, terminate the NRC license and complete site restoration.
Holtec International, the manufacturer of the dry storage systems used at Vermont Yankee, submitted license amendment requests to the NRC earlier this year, which if approved, will support complete transfer of all of Vermont Yankee's spent nuclear fuel to dry storage by the end of 2018.
Financial Information
As consideration for its interest in ENVY, Entergy will receive nominal cash consideration and a promissory note payable to Entergy in an amount equal to the amount owed at the time of closing under a credit facility to finance Vermont Yankee's dry fuel storage costs, which facility will be either assumed or refinanced by an Entergy subsidiary at or before the closing. The transfer of ENVY to NorthStar will include the transfer of ENVY's nuclear decommissioning trust and its obligations for spent fuel management and decommissioning. As a result, the nuclear decommissioning trust and associated asset retirement obligation will be removed from Entergy's balance sheet at closing. The transaction is expected to result in a loss at closing, the amount of which cannot be determined at this time, based on the difference between Entergy's book basis in ENVY at the time of closing and the sale price plus any agreed adjustments. Subject to satisfaction or waiver of the conditions to closing, the transaction is expected to be completed in late 2018. On an ongoing basis, the sale is expected to be mildly accretive to operational results once the transaction is completed, primarily due to the elimination of future decommissioning accretion expenses.
A contractually agreed minimum level of funding at close in Vermont Yankee's nuclear decommissioning trust ("NDT") is a condition to close. The amount of any contribution to the NDT that may be required to meet the minimum funding level is highly uncertain and will depend on, among other things, the level of future reimbursements from the NDT for work performed prior to closing and the market performance of the investments in the NDT through closing. However, assuming a December 31, 2018, closing and a level of expenditures from the NDT for work prior to the closing that is consistent with Entergy's current estimates, Entergy estimates that no contribution would be required to meet this condition if the rate of return on the NDT assets from September 30, 2016, through closing is at least 5.5% per annum and that a contribution of approximately $10 million to $12 million would be required for every 1.0% by which the rate of return falls below 5.5% over such period. Entergy is not required to make any contribution to the NDT to cause this condition to be satisfied, but would have the option to do so prior to closing.
About Vermont Yankee and Entergy
The Vermont Yankee Nuclear Power Station, a single unit boiling water reactor, began commercial operation in 1972. Entergy purchased the plant in 2002 from the Vermont Yankee Nuclear Power Corp. It permanently ceased operations on Dec. 29, 2014. At full power, Vermont Yankee supplied nearly one-third of all electricity consumed in Vermont. More information is available at www.entergy.com and www.vydecommissioning.com.
Entergy, based in New Orleans, is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
About the NorthStar Team
NorthStar is the world's most comprehensive facility and environmental solutions company with over $600 million in annual sales and licensed in all 50 states. The company was ranked the #1 Demolition & Wrecking Contractor and #1 Asbestos Abatement Contractor in the USA by Engineering News-Record in 2016. NorthStar owns and maintains a large, nationwide inventory of specialized dismantling equipment and employs over 3,000 people. NorthStar's team includes:
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, Entergy's plans and expectations with respect to the Vermont Yankee Nuclear Power Station, and other statements of Entergy's plans, beliefs or expectations included in 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) nuclear plant relicensing, operating and regulatory risks; (c) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning Entergy's nuclear plant sites; (c) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (d) risks and uncertainties associated with strategic transactions that Entergy or its subsidiaries may undertake, including 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 and (e) the effects of technological changes and changes in economic conditions and conditions in commodity and capital markets during the periods covered by the forward-looking statements.
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SOURCE Entergy Corporation
Article Date
11/8/2016Entergy Corporation Chairman and CEO to Present at 51st EEI Financial Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, Nov. 2, 2016 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) Chairman and Chief Executive Officer Leo Denault plans to provide a presentation on Tuesday, Nov. 8, during the 51st Edison Electric Institute Financial Conference in Phoenix, AZ. The presentation is expected to start at approximately 11:15 a.m. MT. A live webcast will be available on the Investor Relations section of Entergy's corporate website at www.entergy.com. A replay of the webcast will be available and archived on the website for approximately 30 days. Presentation slides for the webcast will be posted on the Investor Relations section of Entergy's corporate website at www.entergy.com before market open on Tuesday, Nov. 8. Management also will be meeting with investors during the conference from Nov. 6 through Nov. 8. Meeting materials will be posted on the Investor Relations section of Entergy's corporate website at www.entergy.com after market close on Friday, Nov. 4. The webcast, presentation slides and meeting materials will also be available on the Entergy Investor Relations mobile web app at enter.gy/ir.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
Additional investor information can be accessed online at Entergy.com/investor_relations
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SOURCE Entergy Corporation
Article Date
11/2/201610/28/2016 - Entergy Declares Dividend
Entergy Declares Dividend
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, Oct. 28, 2016 /PRNewswire/ -- The Board of Directors of Entergy Corporation (NYSE:ETR) has declared a quarterly dividend of $0.87 per common share. The payment date is Dec. 1, 2016, to stockholders of record on Nov. 10, 2016.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
Online address: Entergy.com
Twitter: @Entergy
Facebook: www.facebook.com/entergy
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SOURCE Entergy Corporation
Article Date
10/28/201610/25/2016 - Entergy Reports Third Quarter Results
Entergy Reports Third Quarter Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, Oct. 25, 2016 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported third quarter 2016 earnings per share of $2.16 on an as-reported basis and $2.31 on an operational basis.
"This quarter's solid results demonstrate our ability to execute on our strategy of steady, predictable growth at the Utility while reducing EWC's footprint," said Entergy chairman and chief executive officer Leo Denault. "The prudent decisions we are making for the benefit of our stakeholders to position the nuclear fleet for sustained operational excellence has near-term effects on our financial outlook. However, our 2019 outlook remains unchanged as we continue to execute on our growth objectives for Utility, Parent & Other earnings and corporate dividends."
Business highlights included the following:
|
Consolidated Earnings (GAAP and Non-GAAP Measures) | ||||||
|
Third Quarter and Year-to-Date 2016 vs. 2015 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of special items) | ||||||
|
Third Quarter |
Year-to-Date | |||||
|
2016 |
2015 |
Change |
2016 |
2015 |
Change | |
|
As-Reported Earnings ($ millions) |
388.2 |
(723.0) |
1,111.2 |
1,185.4 |
(276.1) |
1,461.6 |
|
Less Special Items |
(27.5) |
(1,063.7) |
1,036.2 |
(30.7) |
(1,069.4) |
1,038.7 |
|
Operational Earnings |
415.6 |
340.7 |
75.0 |
1,216.2 |
793.3 |
422.9 |
|
Estimated Weather Impact |
33.8 |
29.3 |
4.5 |
(8.0) |
40.7 |
(48.7) |
|
As-Reported Earnings (per share in $) |
2.16 |
(4.04) |
6.20 |
6.60 |
(1.54) |
8.14 |
|
Less Special Items |
(0.15) |
(5.94) |
5.79 |
(0.17) |
(5.96) |
5.79 |
|
Operational Earnings |
2.31 |
1.90 |
0.41 |
6.77 |
4.42 |
2.35 |
|
Estimated Weather Impact |
0.18 |
0.16 |
0.02 |
(0.04) |
0.23 |
(0.27) |
|
Totals may not foot due to rounding |
Consolidated Results
Third quarter 2016 EPS were $2.16 on an as-reported basis and $2.31 on an operational basis, compared to a third quarter 2015 as-reported loss of $(4.04) per share and operational EPS of $1.90. Summary discussions by business are below.
Additional details, including information on OCF by business, are provided in Appendix A and a comprehensive analysis of quarterly and year-to-date variances is provided in Appendix B.
Utility, Parent & Other Results
For third quarter 2016, Utility, Parent and Other EPS were $2.12 on an as-reported basis and $1.98 on an adjusted basis. In comparison, third quarter 2015 as-reported EPS were $1.72 and adjusted EPS were $1.56. The current period results reflected growth in the Utility business, including effects of new rate actions that recover investments and improve returns.
Net revenue increased quarter-over-quarter driven largely by the Union acquisition, EAI's rate case and EMI's FRP. Revenue increases for the Union acquisition included amounts to recover operating expenses for the assets.
Billed retail sales volume declined quarter-over-quarter. However, estimated volume in the unbilled period was higher than third quarter 2015.
The Utility saw growth from sales to new and expansion industrial customers as they continued to operate, ramp up and come online. However, as was expected, overall industrial sales were down quarter-over-quarter as volume from existing customers declined on lower sales to customers in the pulp and paper, industrial gases and chlor-alkali segments.
Utility non-fuel O&M was lower than third quarter 2015 due partly to lower pension and OPEB expenses. Vegetation expense also declined due to elevated spending in third quarter 2015.
Appendix C contains additional details on Utility financial and operational measures, including a schedule of Utility, Parent & Other Adjusted EPS which excludes special items and weather and normalizes income taxes.
Entergy Wholesale Commodities Results
EWC earned 4 cents per share on an as-reported basis and 19 cents per share on an operational basis for third quarter 2016. In third quarter 2015, EWC recorded an as-reported loss of $(5.76) per share and operational EPS of 18 cents.
The EWC quarter-over-quarter increase was due largely to expenses recorded in 2015 as a result of decisions to close Pilgrim and VY and to sell or close FitzPatrick nuclear plants. These expenses were considered special items and excluded from operational earnings.
Excluding the special items, EWC's results were essentially flat quarter-over-quarter. Fuel, non-fuel O&M (excluding the special items already discussed above) and depreciation expenses declined as a result of the 2015 impairments. Conversely, energy prices were lower and decommissioning expense increased due partly to the establishment of decommissioning liabilities for Indian Point 3 and FitzPatrick in 2016.
Appendix D contains additional details on EWC financial and operational measures, including a schedule of EWC Operational Adjusted EBITDA calculations.
Earnings Guidance
Entergy affirmed its 2016 operational guidance in the range of $6.60 to $7.40 per share and Utility, Parent & Other Adjusted EPS guidance range of $4.20 to $4.50. See webcast presentation slides for additional details.
The company has provided 2016 earnings guidance with regard to the non-GAAP measures operational earnings per share and Utility, Parent and Other Adjusted EPS. These measures exclude from the corresponding GAAP financial measures the effect of special items, which are non-routine items, such as impairment charges, gains or losses on asset sales, and other gains or losses occurring as a result of strategic decisions such as the company's recent decisions to shut down or sell certain of its merchant nuclear plants. Consistent with SEC rules, the company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot reasonably estimate all of the special items that may occur for the periods presented. The company's current estimate for special items in 2016 relates to the decisions to close or sell certain merchant nuclear plants and for DOE litigation awards for those plants; those anticipated special items are expected to decrease as-reported EPS by approximately 35 cents per share. Other special items may occur during the periods presented, the impact of which cannot reasonably be estimated at this time.
Earnings Teleconference
A teleconference will be held at 10 a.m. CT on Tuesday, Oct. 25, 2016, to discuss Entergy's third quarter 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 (855) 893-9849, conference ID 85417477, no more than 15 minutes prior to the start of the call. The webcast slide presentation is also posted to Entergy's website concurrent with this release, which was issued before market open on the day of the call. A replay of the teleconference will be available on Entergy's website at www.entergy.com and by telephone. The telephone replay will be available through Nov. 1, 2016, by dialing (855) 859-2056, conference ID 85417477. This release and the webcast slide presentation are also available on the Entergy Investor Relations mobile web app at iretr.com.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
Entergy Corporation's common stock is listed on the New York and Chicago exchanges 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 slide presentation. Both documents are available on Entergy's Investor Relations website at www.entergy.com/investor_relations and on Entergy's Investor Relations mobile web app at iretr.com.
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, Entergy's 2016 earnings guidance, its current financial and operational outlook, and other statements of Entergy's plans, beliefs or expectations included in 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 rate proceedings, formula rate plans and other cost recovery mechanisms; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory costs and risks, including any changes resulting from the nuclear crisis in Japan following its catastrophic earthquake and tsunami; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning FitzPatrick, Pilgrim or VY or any of Entergy's other 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 strategic transactions that Entergy or its subsidiaries may undertake, including 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 and (h) the effects of technological changes and changes in economic conditions and conditions in commodity and capital markets during the periods covered by the forward-looking statements.
For definitions of certain operational performance measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the quarterly materials, see Appendix F and Appendix G.
Third Quarter 2016 Earnings Release Appendices and Financial Statements
Appendices
Seven appendices are presented in this section as follows:
A: Consolidated Results and Special Items
Appendix A-1 provides a comparative summary of consolidated EPS for current quarter and year-to-date 2016 versus 2015, including a reconciliation of GAAP as-reported earnings to non-GAAP operational earnings.
|
Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures Third Quarter and Year-to-Date 2016 vs. 2015 (See Appendix A-3 and Appendix A-4 for details on special items) | ||||||
|
(Per share in $) | ||||||
|
Third Quarter |
Year-to-Date | |||||
|
2016 |
2015 |
Change |
2016 |
2015 |
Change | |
|
As-reported |
||||||
|
Utility |
2.47 |
2.01 |
0.46 |
5.64 |
4.36 |
1.28 |
|
Parent & Other |
(0.35) |
(0.29) |
(0.06) |
(0.92) |
(0.81) |
(0.11) |
|
EWC |
0.04 |
(5.76) |
5.80 |
1.88 |
(5.09) |
6.97 |
|
Consolidated as-reported earnings |
2.16 |
(4.04) |
6.20 |
6.60 |
(1.54) |
8.14 |
|
Less special items |
||||||
|
Utility |
- |
- |
- |
- |
- |
- |
|
Parent & Other |
- |
- |
- |
- |
- |
- |
|
EWC |
(0.15) |
(5.94) |
5.79 |
(0.17) |
(5.96) |
5.79 |
|
Consolidated special items |
(0.15) |
(5.94) |
5.79 |
(0.17) |
(5.96) |
5.79 |
|
Operational |
||||||
|
Utility |
2.47 |
2.01 |
0.46 |
5.64 |
4.36 |
1.28 |
|
Parent & Other |
(0.35) |
(0.29) |
(0.06) |
(0.92) |
(0.81) |
(0.11) |
|
EWC |
0.19 |
0.18 |
0.01 |
2.05 |
0.87 |
1.18 |
|
Consolidated operational earnings |
2.31 |
1.90 |
0.41 |
6.77 |
4.42 |
2.35 |
|
Estimated weather impact |
0.18 |
0.16 |
0.02 |
(0.04) |
0.23 |
(0.27) |
See Appendix B for detailed earnings variance analysis.
Appendix A-2 provides the components of OCF contributed by each business for current quarter and year-to-date 2016 versus 2015.
|
Appendix A-2: Consolidated Operating Cash Flow | ||||||
|
Third Quarter and Year-to-Date 2016 vs. 2015 | ||||||
|
($ in millions) | ||||||
|
Third Quarter |
Year-to-Date | |||||
|
2016 |
2015 |
Change |
2016 |
2015 |
Change | |
|
Utility |
929 |
833 |
96 |
2,078 |
2,049 |
29 |
|
Parent & Other |
(53) |
13 |
(66) |
(162) |
(81) |
(81) |
|
EWC |
124 |
165 |
(41) |
336 |
381 |
(45) |
|
Total OCF |
1,000 |
1,011 |
(11) |
2,252 |
2,350 |
(97) |
|
Totals may not foot due to rounding |
The quarter-over-quarter decrease in total OCF was not significant. Lower EWC revenue was largely offset by lower pension contributions. Intercompany income tax payments contributed to the line of business variances.
Appendix A-3 and Appendix A-4 list special items by business. Amounts are shown on both an EPS basis and a net income basis. Special items are those events that are not routine. Special items are included in as-reported earnings consistent with GAAP, but are excluded from operational earnings. As a result, operational EPS is considered a non-GAAP measure.
|
Appendix A-3: Special Items by Driver (shown as positive/(negative) impact on EPS) | ||||||
|
Third Quarter and Year-to-Date 2016 vs. 2015 | ||||||
|
(After-tax, per share in $) | ||||||
|
Third Quarter |
Year-to-Date | |||||
|
2016 |
2015 |
Change |
2016 |
2015 |
Change | |
|
EWC |
||||||
|
Decisions to close VY and Pilgrim and decision to sell or close FitzPatrick |
(0.15) |
(5.94) |
5.79 |
(0.29) |
(5.96) |
5.67 |
|
DOE litigation awards for VY and FitzPatrick |
- |
- |
- |
0.12 |
- |
0.12 |
|
Total EWC |
(0.15) |
(5.94) |
5.79 |
(0.17) |
(5.96) |
5.79 |
|
Total special items |
(0.15) |
(5.94) |
5.79 |
(0.17) |
(5.96) |
5.79 |
|
Appendix A-4: Special Items by Income Statement Line Item (shown as positive/(negative) impact on earnings) | ||||||
|
Third Quarter and Year-to-Date 2016 vs. 2015 | ||||||
|
(Pre-tax except for Income taxes – other and Total, $ in millions) | ||||||
|
Third Quarter |
Year-to-Date | |||||
|
2016 |
2015 |
Change |
2016 |
2015 |
Change | |
|
EWC |
||||||
|
Net revenue |
7.5 |
- |
7.5 |
7.5 |
- |
7.5 |
|
Non-fuel O&M |
(29.3) |
(1.7) |
(27.5) |
(18.1) |
(10.8) |
(7.3) |
|
Taxes other than income taxes |
(1.8) |
(0.1) |
(1.7) |
(3.7) |
0.2 |
(3.9) |
|
Asset write-off and impairments |
(18.8) |
(1,642.2) |
1,623.4 |
(33.2) |
(1,642.2) |
1,609.0 |
|
Income taxes – other |
15.0 |
580.3 |
(565.4) |
16.8 |
583.4 |
(566.6) |
|
Total EWC |
(27.5) |
(1,063.7) |
1,036.2 |
(30.7) |
(1,069.4) |
1,038.7 |
|
Total special items (after-tax) |
(27.5) |
(1,063.7) |
1,036.2 |
(30.7) |
(1,069.4) |
1,038.7 |
|
Totals may not foot due to rounding |
B: Variance Analysis
Appendix B-1 and Appendix B-2 provide details of current quarter and year-to-date 2016 versus 2015 as-reported and operational earnings variance analysis for Utility, Parent & Other, EWC and Consolidated.
|
Appendix B-1: As-Reported and Operational EPS Variance Analysis | |||||||||||
|
Third Quarter 2016 vs. 2015 | |||||||||||
|
(After-tax, per share in $, sorted in consolidated operational column, most to least favorable) | |||||||||||
|
Utility |
Parent & Other |
EWC |
Consolidated | ||||||||
|
As-Reported |
Opera-tional |
As-Reported |
Opera-tional |
As- Reported |
Opera-tional |
As- Reported |
Opera-tional | ||||
|
2015 earnings |
2.01 |
2.01 |
(0.29) |
(0.29) |
(5.76) |
0.18 |
(4.04) |
1.90 | |||
|
Net revenue |
0.37 |
0.37 |
(a) |
- |
- |
(0.04) |
(0.07) |
(b) |
0.33 |
0.30 | |
|
Non-fuel O&M |
0.13 |
0.13 |
(c) |
(0.01) |
(0.01) |
(0.02) |
0.08 |
(d) |
0.10 |
0.20 | |
|
Taxes other than income taxes |
0.04 |
0.04 |
- |
- |
- |
- |
0.04 |
0.04 | |||
|
Other income (deductions)-other |
0.01 |
0.01 |
- |
- |
- |
- |
0.01 |
0.01 | |||
|
Asset write-offs and impairments |
- |
- |
- |
- |
5.86 |
- |
(e) |
5.86 |
- | ||
|
Share effect |
(0.01) |
(0.01) |
- |
- |
- |
- |
(0.01) |
(0.01) | |||
|
Interest expense and other charges |
(0.02) |
(0.02) |
- |
- |
0.01 |
0.01 |
(0.01) |
(0.01) | |||
|
Depreciation/amortization expense |
(0.04) |
(0.04) |
- |
- |
0.02 |
0.02 |
(0.02) |
(0.02) | |||
|
Income taxes – other |
(0.01) |
(0.01) |
(0.05) |
(0.05) |
(f) |
0.02 |
0.02 |
(0.04) |
(0.04) | ||
|
Decommissioning expense |
(0.01) |
(0.01) |
- |
- |
(0.05) |
(0.05) |
(g) |
(0.06) |
(0.06) | ||
|
2016 earnings |
2.47 |
2.47 |
(0.35) |
(0.35) |
0.04 |
0.19 |
2.16 |
2.31 | |||
|
Appendix B-2: As-Reported and Operational EPS Variance Analysis | |||||||||||
|
Year-to-Date 2016 vs. 2015 | |||||||||||
|
(After-tax, per share in $, sorted in consolidated operational column, most to least favorable) | |||||||||||
|
Utility |
Parent & Other |
EWC |
Consolidated | ||||||||
|
As-Reported |
Opera-tional |
As-Reported |
Opera-tional |
As- Reported |
Opera-tional |
As- Reported |
Opera-tional | ||||
|
2015 earnings |
4.36 |
4.36 |
(0.81) |
(0.81) |
(5.09) |
0.87 |
(1.54) |
4.42 | |||
|
Income taxes – other |
0.66 |
0.66 |
(h) |
(0.05) |
(0.05) |
(f) |
1.33 |
1.33 |
(i) |
1.94 |
1.94 |
|
Non-fuel O&M |
0.36 |
0.36 |
(c) |
(0.03) |
(0.03) |
0.25 |
0.28 |
(d) |
0.58 |
0.61 | |
|
Taxes other than income taxes |
0.05 |
0.05 |
(j) |
- |
- |
0.04 |
0.05 |
(k) |
0.09 |
0.10 | |
|
Asset write-offs and impairments |
- |
- |
- |
- |
5.80 |
- |
(e) |
5.80 |
- | ||
|
Depreciation/amortization expense |
(0.12) |
(0.12) |
(l) |
- |
- |
0.11 |
0.11 |
(m) |
(0.01) |
(0.01) | |
|
Preferred dividend requirements |
(0.01) |
(0.01) |
- |
- |
- |
- |
(0.01) |
(0.01) | |||
|
Other income (deductions)-other |
0.03 |
0.03 |
(0.01) |
(0.01) |
(0.06) |
(0.06) |
(n) |
(0.04) |
(0.04) | ||
|
Interest expense and other charges |
(0.04) |
(0.04) |
(0.02) |
(0.02) |
- |
- |
(0.06) |
(0.06) | |||
|
Decommissioning expense |
(0.03) |
(0.03) |
- |
- |
(0.05) |
(0.05) |
(g) |
(0.08) |
(0.08) | ||
|
Net revenue |
0.38 |
0.38 |
(a) |
- |
- |
(0.45) |
(0.48) |
(b) |
(0.07) |
(0.10) | |
|
2016 earnings |
5.64 |
5.64 |
(0.92) |
(0.92) |
1.88 |
2.05 |
6.60 |
6.77 | |||
See appendix in the webcast slide presentation for additional details on EWC line item variances.
|
(a) |
The current quarter and year-to-date increases were due primarily to rate changes associated with the Union acquisition, EAI's rate case and EMI's FRP. Volume in the unbilled period also contributed to the net revenue increase. Partially offsetting the increase in the year-to-date period was a $16 million (pre-tax) reserve recorded in second quarter 2016 for the portion of a tax benefit to be shared with customers. The effect of weather was slightly favorable quarter-over-quarter but unfavorable in the year-to-date variance. |
|
Utility As-Reported Net Revenue Variance Analysis 2016 vs. 2015 ($ EPS) | ||
|
Third |
Year-to- Date | |
|
Estimated weather |
0.02 |
(0.27) |
|
Sales growth/pricing |
0.41 |
0.89 |
|
Other |
(0.06) |
(0.24) |
|
Total |
0.37 |
0.38 |
|
(b) |
The current quarter and year-to-date decreases were driven by lower energy pricing for nuclear assets. The sale of the RISEC facility in December 2015 also contributed to the decline. These decreases were partially offset by lower nuclear fuel expense (due largely to 2015 impairments). In the year-to-date period, volume from nuclear assets was lower due largely to the extended IP2 refueling outage. |
|
(c) |
The current quarter and year-to-date increases reflected lower pension and OPEB expenses stemming partly from a higher discount rate, lower vegetation maintenance costs and energy efficiency costs, including the effects of true-ups. Non-fuel O&M expense was also reduced as a result of litigation awards from the DOE in connection with spent nuclear fuel storage costs. The expense decreases were partially offset by the Union acquisition (offset in net revenue). The quarter variance also reflected lower nuclear generation spending in 2016 due primarily to a decrease in regulatory compliance costs and expenses related to the ELL business combination. The year-to-date variance reflected a deferral recorded at EAI in first quarter 2016 and lower spending on fossil outages. These items were partially offset by higher nuclear generation spending due primarily to an overall higher scope of work done during plant outages in 2016 and higher nuclear labor costs, including contract labor. |
|
(d) |
The current quarter as-reported decrease was driven by higher expenses resulting from the decisions to close or sell certain nuclear plants (these expenses were considered special items and excluded from operational results). The current quarter operational and year-to-date variances increased, reflecting lower refueling outage expense (largely as a result of 2015 impairments) and the sale of the RISEC facility in December 2015. The year-to-date variance also reflected a reduction in expense for litigation proceeds received from the DOE in connection with spent nuclear fuel storage costs in second quarter 2016 (approximately 12 cents EPS received for VY and FitzPatrick was considered a special item). |
|
(e) |
The as-reported current quarter and year-to-date increases were primarily due to non-cash impairment charges and related write-offs recorded in third quarter 2015 for Pilgrim and FitzPatrick. Partially offsetting was capital recorded as non-fuel O&M for those nuclear plants that have closed (VY) or are identified to close or be sold (Pilgrim and FitzPatrick). |
|
(f) |
The current quarter and year-to-date decreases were due to an inter-company adjustment recorded (offset at EWC). |
|
(g) |
The current quarter and year-to-date decreases were due to the establishment of decommissioning liabilities for Indian Point 3 and FitzPatrick in 2016 and revisions to decommissioning cost studies at other EWC nuclear facilities in 2015. |
|
(h) |
The year-to-date increase was due largely to the reversal of a portion of the provision for uncertain tax positions totaling $136 million for two previous positions that were resolved in the 2010-2011 tax audit in second quarter 2016. This was partly offset by customer sharing recorded as a regulatory charge ($16 million pre-tax, included in net revenue). Partially offsetting was a first quarter 2015 reversal of a portion of the provision for uncertain tax provisions related to interest accrual of approximately $24 million. |
|
(i) |
The year-to-date increase was attributable largely to a tax election which reduced income tax expense by $238 million. |
|
(j) |
The year-to-date increase was due primarily to lower franchise taxes and lower payroll taxes. |
|
(k) |
The year-to-date increase was due largely to lower sales and use tax and the effect of prior year's New York state audit settlement. |
|
(l) |
The year-to-date decrease was due primarily to additions to plant, including the Union acquisition in March 2016. The decrease was partially offset by depreciation expense reduction which resulted from litigation awards from the DOE in connection with spent nuclear fuel storage costs in the current quarter. |
|
(m) |
The year-to-date increase resulted from 2015 impairments, recording the effects of DOE litigation proceeds related to spent nuclear fuel storage costs and the sale of RISEC. |
|
(n) |
The year-to-date decrease was due largely to realized earnings from decommissioning trusts in 2015 from rebalancing of VY's decommissioning trust. |
C: Utility Financial and Operational Measures
Appendix C-1 provides a comparative summary of Utility, Parent & Other Adjusted EPS, which excludes the effects of special items and weather and normalizes income tax expense.
|
Appendix C-1: Utility, Parent & Other Adjusted EPS - Reconciliation of GAAP to Non-GAAP Measures | ||||||
|
Third Quarter and Year-to-Date 2016 vs. 2015 (See Appendix A for details on special items) | ||||||
|
(Per share in $) |
Third Quarter |
Year-to-Date | ||||
|
2016 |
2015 |
Change |
2016 |
2015 |
Change | |
|
As-reported EPS |
2.12 |
1.72 |
0.40 |
4.72 |
3.55 |
1.17 |
|
Less: |
||||||
|
Special items |
- |
- |
- |
- |
- |
- |
|
Estimated weather |
0.18 |
0.16 |
0.02 |
(0.04) |
0.23 |
(0.27) |
|
Income taxes, net of sharing |
(0.04) |
- |
(0.04) |
0.67 |
0.13 |
0.54 |
|
Adjusted EPS |
1.98 |
1.56 |
0.42 |
4.09 |
3.19 |
0.90 |
Appendix C-2 provides a comparative summary of Utility operational performance measures.
|
Appendix C-2: Utility Operational Performance Measures | ||||||||
|
Third Quarter and Year-to-Date 2016 vs. 2015 (See Appendix G for reconciliation of GAAP to non-GAAP measures) | ||||||||
|
Third Quarter |
Year-to-Date | |||||||
|
2016 |
2015 |
% Change |
% Weather Adjusted |
2016 |
2015 |
% Change |
% Weather Adjusted | |
|
GWh billed |
||||||||
|
Residential |
11,817 |
11,887 |
(0.6%) |
(0.6%) |
27,035 |
28,683 |
(5.7%) |
(0.6%) |
|
Commercial |
8,650 |
8,744 |
(1.1%) |
(2.0%) |
21,938 |
22,370 |
(1.9%) |
(1.5%) |
|
Governmental |
703 |
692 |
1.6% |
1.0% |
1,912 |
1,886 |
1.4% |
1.3% |
|
Industrial |
12,017 |
12,087 |
(0.6%) |
(0.6%) |
34,581 |
33,230 |
4.1% |
4.1% |
|
Total retail sales |
33,187 |
33,410 |
(0.7%) |
(0.9%) |
85,466 |
86,169 |
(0.8%) |
1.0% |
|
Wholesale |
2,733 |
2,586 |
5.7% |
9,452 |
7,535 |
25.4% |
||
|
Total sales |
35,920 |
35,996 |
(0.2%) |
94,918 |
93,704 |
1.3% |
||
|
Number of electric retail customers |
||||||||
|
Residential |
2,454,761 |
2,434,079 |
0.8% |
|||||
|
Commercial |
352,175 |
348,920 |
0.9% |
|||||
|
Governmental |
17,662 |
17,779 |
(0.7%) |
|||||
|
Industrial |
49,606 |
49,941 |
(0.7%) |
|||||
|
Total retail customers |
2,874,204 |
2,850,719 |
0.8% |
|||||
|
Net revenue ($ millions) |
1,859 |
1,750 |
6.2% |
4,758 |
4,648 |
2.4% |
||
|
As-reported non-fuel O&M per MWh |
$17.39 |
$18.42 |
(5.6%) |
$18.82 |
$20.17 |
(6.7%) |
||
|
Operational non-fuel O&M per MWh |
$17.39 |
$18.42 |
(5.6%) |
$18.82 |
$20.17 |
(6.7%) |
||
|
The effects of weather are estimated using monthly heating degree days and cooling degree days from certain locations within each jurisdiction and comparing to "normal" weather based on 20 year historical data. The models used to estimate weather are updated periodically and subject to change. |
See appendix in the webcast slide presentation for information on select regulatory cases.
D: EWC Financial and Operational Measures
Appendix D-1 provides a comparative summary of EWC operational adjusted earnings before interest, taxes, depreciation and amortization.
|
Appendix D-1: EWC Operational Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures | ||||||
|
Third Quarter and Year-to-Date 2016 vs. 2015 | ||||||
|
($ in millions) |
Third Quarter |
Year-to-Date | ||||
|
2016 |
2015 |
Change |
2016 |
2015 |
Change | |
|
Net income |
8 |
(1,032) |
1,040 |
339 |
(913) |
1,252 |
|
Add back: interest expense |
5 |
7 |
(2) |
18 |
19 |
(1) |
|
Add back: income tax expense |
6 |
(555) |
561 |
(177) |
(488) |
311 |
|
Add back: depreciation and amortization |
53 |
60 |
(7) |
155 |
187 |
(32) |
|
Subtract: interest and investment income |
27 |
29 |
(2) |
87 |
116 |
(29) |
|
Add back: decommissioning expense |
47 |
33 |
14 |
117 |
101 |
16 |
|
Adjusted EBITDA |
93 |
(1,515) |
1,608 |
365 |
(1,210) |
1,575 |
|
Add back pre-tax special items for: |
||||||
|
Decisions to close VY and Pilgrim and decision to sell or close FitzPatrick |
42 |
1,644 |
(1,602) |
81 |
1,653 |
(1,572) |
|
DOE litigation awards for VY and FitzPatrick |
- |
- |
- |
(34) |
- |
(34) |
|
Operational adjusted EBITDA |
135 |
129 |
6 |
412 |
443 |
(31) |
|
Totals may not foot due to rounding |
Appendix D-2 provides a comparative summary of EWC operational performance measures.
|
Appendix D-2: EWC Operational Performance Measures | ||||||
|
Third Quarter and Year-to-Date 2016 vs. 2015 (See Appendix G for reconciliation of GAAP to non-GAAP measures) | ||||||
|
Third Quarter |
Year-to-Date | |||||
|
2016 |
2015 |
% Change |
2016 |
2015 |
% Change | |
|
Owned capacity (MW) (o) |
4,880 |
5,463 |
(10.7%) |
4,880 |
5,463 |
(10.7%) |
|
GWh billed |
9,372 |
10,440 |
(10.2%) |
26,484 |
29,610 |
(10.6%) |
|
As-reported average total revenue per MWh |
$50.72 |
$49.97 |
1.5% |
$50.65 |
$54.16 |
(6.5%) |
|
Adjusted operational average total revenue per MWh |
$49.03 |
$49.61 |
(1.2%) |
$49.74 |
$53.77 |
(7.5%) |
|
Net revenue ($ millions) |
396 |
410 |
(3.4%) |
1,156 |
1,287 |
(10.2%) |
|
As-reported non-fuel O&M per MWh |
$27.78 |
$24.49 |
13.4% |
$25.59 |
$25.42 |
0.7% |
|
Operational non-fuel O&M per MWh |
$24.65 |
$24.32 |
1.4% |
$24.90 |
$25.06 |
(0.6%) |
|
EWC Nuclear Fleet |
||||||
|
Capacity factor |
90% |
92% |
(2.2%) |
85% |
90% |
(5.6%) |
|
GWh billed |
8,674 |
9,125 |
(4.9%) |
24,670 |
26,298 |
(6.2%) |
|
As-reported average total revenue per MWh |
$51.01 |
$50.41 |
1.2% |
$51.05 |
$53.96 |
(5.4%) |
|
Adjusted operational average total revenue per MWh |
$49.19 |
$49.99 |
(1.6%) |
$50.07 |
$53.53 |
(6.5%) |
|
Production cost per MWh |
$23.77 |
$26.90 |
(11.6%) |
$22.91 |
$26.24 |
(12.7%) |
|
Net revenue ($ millions) |
396 |
395 |
0.3% |
1,151 |
1,240 |
(7.2%) |
|
Refueling outage days |
||||||
|
Indian Point 2 |
- |
- |
102 |
- |
||
|
Indian Point 3 |
- |
- |
- |
23 |
||
|
Palisades |
- |
13 |
- |
13 |
||
|
Pilgrim |
- |
- |
- |
34 |
||
|
(o) |
Third quarter and year-to-date 2016 exclude RISEC (583 MW) that was sold in December 2015 |
See appendix in the webcast slide presentation for EWC hedging and price disclosures.
E: Consolidated Financial Performance Measures
Appendix E provides comparative financial performance measures for the current quarter. Financial performance measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP measures.
As-reported measures are computed in accordance with GAAP as they include all components of net income, including special items. Operational measures are non-GAAP measures as they are calculated using operational net income, which excludes the impact of special items.
|
Appendix E: GAAP and Non-GAAP Financial Performance Measures | |||
|
Third Quarter 2016 vs. 2015 (See Appendix G for reconciliation of GAAP to non-GAAP measures) | |||
|
For 12 months ending September 30 |
2016 |
2015 |
Change |
|
GAAP Measures |
|||
|
ROIC - as-reported |
7.0% |
1.1% |
5.9% |
|
ROE - as-reported |
13.4% |
(1.6%) |
15.0% |
|
Book value per share |
$56.21 |
$51.33 |
$4.88 |
|
End of period shares outstanding (millions) |
179.1 |
178.4 |
0.7 |
|
Non-GAAP Measures |
|||
|
ROIC - operational |
7.9% |
5.6% |
2.3% |
|
ROE - operational |
15.6% |
9.6% |
6.0% |
|
As of September 30 ($ in millions) |
2016 |
2015 |
Change |
|
GAAP Measures |
|||
|
Cash and cash equivalents |
1,307 |
1,041 |
266 |
|
Revolver capacity |
4,243 |
3,869 |
374 |
|
Commercial paper |
264 |
664 |
(400) |
|
Total debt |
15,073 |
14,144 |
929 |
|
Securitization debt |
698 |
814 |
(116) |
|
Debt to capital |
59.4% |
60.2% |
(0.8%) |
|
Off-balance sheet liabilities: |
|||
|
Debt of joint ventures - Entergy's share |
74 |
78 |
(4) |
|
Leases - Entergy's share |
359 |
422 |
(63) |
|
Power purchase agreements accounted for as leases |
195 |
224 |
(29) |
|
Total off-balance sheet liabilities |
628 |
724 |
(96) |
|
Non-GAAP Measures |
|||
|
Debt to capital, excluding securitization debt |
58.3% |
58.7% |
(0.4%) |
|
Gross liquidity |
5,550 |
4,910 |
640 |
|
Net debt to net capital, excluding securitization debt |
55.9% |
56.7% |
(0.8%) |
|
Parent debt to total debt, excluding securitization debt |
19.4% |
20.9% |
(1.5%) |
|
Debt to operational adjusted EBITDA, excluding securitization debt |
4.2x |
3.9x |
0.3x |
|
Operational FFO to debt, excluding securitization debt |
21.1% |
25.4% |
(4.3%) |
F: Definitions, Abbreviations and Acronyms
Appendix F-1 provides definitions of certain operational performance measures, as well as GAAP and non-GAAP financial measures. Non-GAAP measures provide metrics that remove the effect of financial events that are not routine from commonly used financial metrics.
|
Appendix F-1: Definitions | ||
|
Utility Operational Performance Measures | ||
|
GWh billed |
Total number of GWh billed to all retail and wholesale customers | |
|
Net revenue |
Operating revenue less fuel, fuel related expenses and gas purchased for resale, purchased power and other regulatory charges (credits) - net | |
|
Non-fuel O&M |
Operation and maintenance expenses excluding fuel, fuel-related expenses and gas purchased for resale and purchased power | |
|
Non-fuel O&M per MWh |
Non-fuel O&M per MWh of billed sales | |
|
Number of retail customers |
Number of customers at end of period | |
|
EWC Operational Performance Measures | ||
|
As-reported average total revenue per MWh |
As-reported revenue per MWh billed (does not include revenue from investments in wind generation that is accounted for under the equity method of accounting) | |
|
Adjusted average total revenue per MWh |
As-reported average total revenue per MWh, excluding revenue from the amortization of the Palisades below-market PPA and VY capacity revenue | |
|
Average revenue under contract per kW-month (applies to capacity contracts only) |
Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and/or auction awards | |
|
Average revenue per MWh on contracted volumes |
Revenue on a per unit basis at which generation output reflected in contracts is expected to be sold to third parties (including offsetting positions) at the minimum contract prices and at forward market prices at a point in time, given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market PPA for Palisades; revenue will fluctuate due to factors including market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at the time of option expiration, costs to convert firm LD to unit-contingent and other risk management costs | |
|
Bundled capacity and energy contracts |
A contract for the sale of installed capacity and related energy, priced per MWh sold | |
|
Capacity contracts |
A contract for the sale of the installed capacity product in regional markets managed by ISO-NE, the NYISO and MISO | |
|
Capacity factor |
Normalized percentage of the period that the nuclear plants generate power | |
|
Expected sold and market total revenue per MWh |
Total energy and capacity revenue on a per unit basis at which total planned generation output and capacity is expected to be sold given contract terms and market prices at a point in time, including estimates for market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at time of option expiration, costs to convert Firm LD to unit-contingent and other risk management costs, divided by total planned MWh of generation, excluding the revenue associated with the amortization of the Palisades below-market PPA | |
|
Firm LD |
Transaction that requires receipt or delivery of energy at a specified delivery point (usually at a market hub not associated with a specific asset) or settles financially on notional quantities; if a party fails to deliver or receive energy, defaulting party must compensate the other party as specified in the contract; a portion of which may be capped through the use of risk management products | |
|
GWh billed |
Total number of GWh billed to customers and financially-settled instruments (does not include amounts from investments in wind generation that are accounted for under the equity method of accounting) | |
|
Appendix F-1: Definitions | ||
|
EWC Operational Performance Measures (continued) | ||
|
Net revenue |
Operating revenue less fuel, fuel related expenses and purchased power | |
|
Non-fuel O&M |
Operation and maintenance expenses excluding fuel, fuel-related expenses and gas purchased for resale, purchased power (does not include amounts from investments in wind generation that are accounted for under the equity method of accounting) | |
|
Non-fuel O&M per MWh |
Non-fuel O&M per MWh billed | |
|
Offsetting positions |
Transactions for the purchase of energy, generally to offset a Firm LD transaction | |
|
Owned capacity (MW) |
Installed capacity owned and operated by EWC, including investments in wind generation accounted for under the equity method of accounting; RISEC (non-nuclear) was sold on Dec. 17, 2015 | |
|
Percent of capacity sold forward |
Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions | |
|
Percent of planned generation under contract |
Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts or options that mitigate price uncertainty that may or may not require regulatory approval or approval of transmission rights or other conditions precedent; positions that are no longer classified as hedges are netted in the planned generation under contract | |
|
Planned net MW in operation |
Amount of installed capacity to generate power and/or sell capacity, assuming intent to shutdown Pilgrim on May 31, 2019 and sell FitzPatrick in second quarter 2017 | |
|
Planned TWh of generation |
Amount of output expected to be generated by EWC resources considering plant operating characteristics and outage schedules, assuming intent to shutdown Pilgrim on May 31, 2019 and to sell FitzPatrick in second quarter 2017, uninterrupted normal plant operation and timely renewal of plant operating licenses at IPEC | |
|
Production cost per MWh |
Fuel and non-fuel O&M expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation), excluding special items | |
|
Refueling outage days |
Number of days lost for scheduled refueling outage during the period | |
|
Unit-contingent |
Transaction under which power is supplied from a specific generation asset; if the asset is on operational outage, seller is generally not liable to buyer for any damages, unless the contract specifies certain conditions such as an availability guarantee | |
|
Financial Measures – GAAP | ||
|
Book value per share |
End of period common equity divided by end of period shares outstanding | |
|
Debt of joint ventures - Entergy's share |
Entergy's share of debt issued by business joint ventures at EWC | |
|
Debt to capital ratio |
Total debt divided by total capitalization | |
|
Leases - Entergy's share |
Operating leases held by subsidiaries capitalized at implicit interest rate | |
|
Revolver capacity |
Amount of undrawn capacity remaining on corporate and subsidiary revolvers, including Entergy Nuclear Vermont Yankee | |
|
ROIC - as-reported |
12-months rolling net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital | |
|
ROE - as-reported |
12-months rolling net income attributable to Entergy Corporation divided by average common equity | |
|
Securitization debt |
Debt associated with securitization bonds issued to recover storm costs from hurricanes Rita, Ike and Gustav at ETI and Hurricane Isaac at ENOI; the 2009 ice storm at EAI and investment recovery of costs associated with the cancelled Little Gypsy repowering project at ELL | |
|
Total debt |
Sum of short-term and long-term debt, notes payable and commercial paper and capital leases on the balance sheet | |
|
Appendix F-1: Definitions | |
|
Financial Measures - Non-GAAP | |
|
Adjusted EBITDA |
Earnings before interest, depreciation and amortization and income taxes excluding decommissioning expense; for Entergy consolidated, also excludes AFUDC-equity funds and subtracts securitization proceeds |
|
Adjusted EPS |
As-reported EPS excluding special items and weather and normalizing for income tax |
|
Debt to capital ratio, excluding securitization debt |
Total debt divided by total capitalization, excluding securitization debt |
|
Debt to EBITDA |
End of period total debt excluding securitization debt divided by 12-months rolling operational adjusted EBITDA |
|
FFO |
OCF less AFUDC-borrowed funds, working capital items in OCF (receivables, fuel inventory, accounts payable, prepaid taxes and taxes accrued, interest accrued and other working capital accounts) and securitization regulatory charge |
|
FFO to debt |
12-months rolling operational FFO as a percentage of end of period total debt excluding securitization debt |
|
Gross liquidity |
Sum of cash and revolver capacity |
|
Operational adjusted EBITDA |
Adjusted EBITDA excluding effects of special items |
|
Operational EPS |
As-reported EPS adjusted to exclude the impact of special items |
|
Operational FFO |
FFO excluding effects of special items |
|
Parent debt to total debt |
End of period Entergy Corporation debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of total debt excluding securitization debt |
|
Net debt to net capital ratio, excluding securitization debt |
Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt |
|
ROIC - operational |
12-months rolling operational net income attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital |
|
ROE - operational |
12-months rolling operational net income attributable to Entergy Corporation divided by average common equity |
Appendix F-2 explains abbreviations and acronyms used in the quarterly earnings materials.
|
Appendix F-2: Abbreviations and Acronyms | |||
|
ADIT |
Accumulated deferred income taxes |
LPSC |
Louisiana Public Service Commission |
|
AFUDC - borrowed funds |
Allowance for borrowed funds used during construction |
LTM |
Last twelve months |
|
MISO |
Midcontinent Independent System Operator, Inc. | ||
|
AFUDC - equity funds |
Allowance for equity funds used during construction |
MPSC |
Mississippi Public Service Commission |
|
MTEP |
MISO Transmission Expansion Planning | ||
|
ALJ |
Administrative law judge |
NEPOOL |
New England Power Pool |
|
AMI |
Advanced metering infrastructure |
Ninemile 6 |
Ninemile Point Unit 6 |
|
ANO |
Arkansas Nuclear One (nuclear) |
NOAA |
National Oceanic and Atmosphere Administration |
|
APSC |
Arkansas Public Service Commission |
Non-fuel O&M |
Non-fuel operation and maintenance expense |
|
BP |
Basis point |
NRC |
Nuclear Regulatory Commission |
|
CCGT |
Combined cycle gas turbine |
NYISO |
New York Independent System Operator, Inc. |
|
CCNO |
Council of the City of New Orleans, Louisiana |
NYS |
New York State |
|
COD |
Commercial operation date |
NYSDEC |
New York State Department of Environmental Conservation |
|
Cooper |
Cooper Nuclear Station | ||
|
CT |
Simple cycle combustion turbine |
NYSDOS |
New York State Department of State |
|
CZM |
Coastal zone management |
NYSE |
New York Stock Exchange |
|
DCRF |
Distribution cost recovery factor |
NYSERDA |
New York State Energy Research and Development Authority |
|
DOE |
U.S. Department of Energy | ||
|
EAI |
Entergy Arkansas, Inc. |
O&M |
Operation and maintenance expense |
|
EBITDA |
Earnings before interest, income taxes, depreciation and amortization |
OCF |
Net cash flow provided by operating activities |
|
OPEB |
Other post-employment benefits | ||
|
EGSL |
Entergy Gulf States Louisiana, L.L.C. |
Palisades |
Palisades Power Plant (nuclear) |
|
ELL |
Entergy Louisiana, LLC |
Pilgrim |
Pilgrim Nuclear Power Station (nuclear) |
|
EMI |
Entergy Mississippi, Inc. |
PPA |
Power purchase agreement or purchased power agreement |
|
ENOI |
Entergy New Orleans, Inc. | ||
|
ESI |
Entergy Services, Inc. |
PUCT |
Public Utility Commission of Texas |
|
EPS |
Earnings per share |
RFP |
Request for proposal |
|
ETI |
Entergy Texas, Inc. |
RISEC |
Rhode Island State Energy Center (CCGT) |
|
ETR |
Entergy Corporation |
ROE |
Return on equity |
|
EWC |
Entergy Wholesale Commodities |
ROIC |
Return on invested capital |
|
FERC |
Federal Energy Regulatory Commission |
RPCE |
Rough production cost equalization |
|
FFO |
Funds from operations |
RSP |
Rate Stabilization Plan (ELL Gas) |
|
Firm LD |
Firm liquidated damages |
SEC |
U.S. Securities and Exchange Commission |
|
FitzPatrick |
James A. FitzPatrick Nuclear Power Plant (nuclear) |
SERI |
System Energy Resources, Inc. |
|
FRP |
Formula rate plan |
SPDES |
State Pollutant Discharge Elimination System |
|
GAAP |
Generally accepted accounting principles |
SPP |
Southwest Power Pool |
|
Grand Gulf |
Unit No. 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by System Energy |
TCRF |
Transmission cost recovery factor |
|
Top Deer |
Top Deer Wind Ventures, LLC | ||
|
HCM |
Human Capital Management program |
Union |
Union Power Station (CCGT) |
|
Indian Point 2 |
Indian Point Energy Center Unit 2 (nuclear) |
UP&O |
Utility, Parent & Other |
|
Indian Point 3 |
Indian Point Energy Center Unit 3 (nuclear) |
VY |
Vermont Yankee Nuclear Power Station (nuclear) |
|
IPEC |
Indian Point Energy Center (nuclear) |
WACC |
Weighted-average cost of capital |
|
ISES |
Independence Steam Electric Station (coal) |
WOTAB |
West of the Atchafalaya Basin |
|
ISO |
Independent system operator |
WQC |
Water Quality Certification |
|
ISO-NE |
ISO New England |
YOY |
Year-over-year |
G: GAAP to Non-GAAP Reconciliations
Appendix G-1, Appendix G-2 and Appendix G-3 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure.
|
Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures - Utility and EWC Non-fuel O&M per MWh, EWC and EWC Nuclear Average Total Revenue per MWh | |||||
|
($ in thousands except where noted) |
Third Quarter |
Year-to-Date | |||
|
2016 |
2015 |
2016 |
2015 | ||
|
Utility |
|||||
|
As-reported Utility non-fuel O&M |
(A) |
624,646 |
663,142 |
1,786,048 |
1,889,982 |
|
Operational Utility non-fuel O&M |
(B) |
624,646 |
663,142 |
1,786,048 |
1,889,982 |
|
Utility billed sales (GWh) |
(C) |
35,920 |
35,996 |
94,918 |
93,704 |
|
As-reported Utility non-fuel O&M per MWh |
(A/C) |
17.39 |
18.42 |
18.82 |
20.17 |
|
Operational Utility non-fuel O&M per MWh |
(B/C) |
17.39 |
18.42 |
18.82 |
20.17 |
|
EWC |
|||||
|
As-reported EWC non-fuel O&M |
(D) |
260,319 |
255,656 |
677,604 |
752,719 |
|
Special items included in non-fuel O&M: |
|||||
|
Decisions to close VY and Pilgrim and decision to sell or close FitzPatrick |
29,254 |
1,706 |
51,879 |
10,774 | |
|
DOE litigation awards for VY and FitzPatrick |
- |
- |
(33,823) |
- | |
|
Total special items included in non-fuel O&M |
(E) |
29,254 |
1,706 |
18,056 |
10,774 |
|
Operational EWC non-fuel O&M |
(D-E) |
231,065 |
253,950 |
659,548 |
741,945 |
|
EWC billed sales (GWh) |
(F) |
9,372 |
10,440 |
26,484 |
29,610 |
|
As-reported EWC non-fuel O&M per MWh |
(D/F) |
27.78 |
24.49 |
25.59 |
25.42 |
|
Operational EWC non-fuel O&M per MWh |
[(D-E)/(F)] |
24.65 |
24.32 |
24.90 |
25.06 |
|
As-reported EWC operating revenue |
(G) |
475,345 |
521,746 |
1,341,534 |
1,603,643 |
|
Special items included in operating revenue: |
|||||
|
Decision to sell or close FitzPatrick |
(H) |
7,479 |
- |
7,479 |
- |
|
Operational EWC operating revenue |
(G-H) |
467,866 |
521,746 |
1,334,055 |
1,603,643 |
|
Less Palisades below-market PPA amortization and VY capacity revenue (p) |
(I) |
8,338 |
3,800 |
16,724 |
11,400 |
|
Adjusted operational EWC operating revenue |
[(G-H)]-(I) |
459,528 |
517,946 |
1,317,331 |
1,592,243 |
|
As-reported EWC average total revenue per MWh |
(G)/(F) |
50.72 |
49.97 |
50.65 |
54.16 |
|
Adjusted operational EWC average total revenue per MWh |
[[(G-H)]-(I)/(F)] |
49.03 |
49.61 |
49.74 |
53.77 |
|
As-reported EWC nuclear operating revenue |
(J) |
442,488 |
459,964 |
1,259,420 |
1,419,060 |
|
Special items included in operating revenue: |
|||||
|
Decision to sell or close FitzPatrick |
(K) |
7,479 |
- |
7,479 |
- |
|
Operational EWC nuclear operating revenue |
(J-K) |
435,009 |
459,964 |
1,251,941 |
1,419,060 |
|
Less Palisades below-market PPA amortization and VY capacity revenue (p) |
(L) |
8,338 |
3,800 |
16,724 |
11,400 |
|
Adjusted operational EWC nuclear operating revenue |
[(J-K)]-(L) |
426,671 |
456,164 |
1,235,217 |
1,407,660 |
|
EWC nuclear billed sales (GWh) |
(M) |
8,674 |
9,125 |
24,670 |
26,298 |
|
As-reported EWC nuclear average total revenue per MWh |
(J)/(M) |
51.01 |
50.41 |
51.05 |
53.96 |
|
Adjusted operational EWC nuclear average total revenue per MWh |
[[(J-K)]-(L)/(M)] |
49.19 |
49.99 |
50.07 |
53.53 |
|
Totals may not foot due to rounding |
|
(p) |
VY capacity revenue which is largely offset by purchased capacity following decision to close VY |
|
Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures - ROIC, ROE Metrics | |||
|
($ in millions) |
Third Quarter | ||
|
2016 |
2015 | ||
|
As-reported net income attributable to Entergy Corporation, rolling 12 months |
(A) |
1,285 |
(156) |
|
Preferred dividends |
21 |
19 | |
|
Tax effected interest expense |
407 |
396 | |
|
As-reported net income attributable to Entergy Corporation, rolling 12 months adjusted for preferred dividends and tax effected interest expense |
(B) |
1,713 |
259 |
|
Special items in prior quarters |
(186) |
(21) | |
|
Decisions to close VY and Pilgrim and decision to sell or close FitzPatrick |
(27) |
(1,064) | |
|
Total special items, rolling 12 months |
(C) |
(212) |
(1,085) |
|
Operational earnings, rolling 12 months adjusted for preferred dividends and tax effected interest expense |
(B-C) |
1,925 |
1,344 |
|
Operational earnings, rolling 12 months |
(A-C) |
1,497 |
929 |
|
Average invested capital |
(D) |
24,443 |
23,819 |
|
Average common equity |
(E) |
9,613 |
9,653 |
|
ROIC - as-reported |
(B/D) |
7.0 |
1.1 |
|
ROIC - operational |
[(B-C)/D] |
7.9 |
5.6 |
|
ROE - as-reported |
(A/E) |
13.4 |
(1.6) |
|
ROE - operational |
[(A-C)/E] |
15.6 |
9.6 |
|
Totals may not foot due to rounding |
|
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures - Credit and Liquidity Metrics | |||
|
($ in millions) |
Third Quarter | ||
|
2016 |
2015 | ||
|
Total debt |
(A) |
15,073 |
14,144 |
|
Less securitization debt |
(B) |
698 |
814 |
|
Total debt, excluding securitization debt |
(C) |
14,375 |
13,330 |
|
Less cash and cash equivalents |
(D) |
1,307 |
1,041 |
|
Net debt, excluding securitization debt |
(E) |
13,068 |
12,289 |
|
Total capitalization |
(F) |
25,375 |
23,512 |
|
Less securitization debt |
(B) |
698 |
814 |
|
Total capitalization, excluding securitization debt |
(G) |
24,677 |
22,698 |
|
Less cash and cash equivalents |
(D) |
1,307 |
1,041 |
|
Net capital, excluding securitization debt |
(H) |
23,370 |
21,657 |
|
Debt to capital |
(A/F) |
59.4% |
60.2% |
|
Debt to capital, excluding securitization debt |
(C/G) |
58.3% |
58.7% |
|
Net debt to net capital, excluding securitization debt |
(E/H) |
55.9% |
56.7% |
|
Revolver capacity |
(I) |
4,243 |
3,869 |
|
Gross liquidity |
(D+I) |
5,550 |
4,910 |
|
Entergy Corporation notes: |
|||
|
Due January 2017 |
500 |
500 | |
|
Due September 2020 |
450 |
450 | |
|
Due July 2022 |
650 |
650 | |
|
Due September 2026 |
750 |
- | |
|
Total parent long-term debt |
(J) |
2,350 |
1,600 |
|
Revolver draw |
(K) |
180 |
525 |
|
Commercial paper |
(L) |
264 |
664 |
|
Total parent debt |
(J)+(K)+(L) |
2,794 |
2,789 |
|
Parent debt to total debt, excluding securitization debt |
[((J)+(K)+(L))/(C)] |
19.4% |
20.9% |
|
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures - Credit and Liquidity Metrics (continued) | |||
|
($ in millions) |
Third Quarter | ||
|
2016 |
2015 | ||
|
Total debt |
(A) |
15,073 |
14,144 |
|
Less securitization debt |
(B) |
698 |
814 |
|
Total debt, excluding securitization debt |
(C) |
14,375 |
13,330 |
|
As-reported consolidated net income, rolling 12 months |
1,306 |
(156) | |
|
Add back: interest expense, rolling 12 months |
661 |
644 | |
|
Add back: income tax expense, rolling 12 months |
(377) |
(35) | |
|
Add back: depreciation and amortization, rolling 12 months |
1,340 |
1,333 | |
|
Add back: regulatory charges (credits), rolling 12 months |
196 |
29 | |
|
Subtract: securitization proceeds, rolling 12 months |
140 |
134 | |
|
Subtract: interest and investment income, rolling 12 months |
157 |
186 | |
|
Subtract: AFUDC-equity funds, rolling 12 months |
62 |
56 | |
|
Add back: decommissioning expense, rolling 12 months |
303 |
279 | |
|
Adjusted EBITDA, rolling 12 months |
(D) |
3,070 |
1,718 |
|
Add back: special item for HCM implementation expenses, rolling 12 months (pre-tax) |
- |
3 | |
|
Add back: special item resulting from decisions to close VY and Pilgrim and decision to sell or close FitzPatrick, rolling 12 months (pre-tax) |
86 |
1,673 | |
|
Add back: special item for DOE litigation awards for VY and FitzPatrick, rolling 12 months (pre-tax) |
(34) |
- | |
|
Add back: special item for Palisades asset impairment and related write-offs, rolling 12 months (pre-tax) |
396 |
- | |
|
Add back: special item for Top Deer investment impairment, rolling 12 months (pre-tax) |
37 |
- | |
|
Add back: special item for gain on the sale of RISEC, rolling 12 months (pre-tax) |
(154) |
- | |
|
Operational adjusted EBITDA, rolling 12 months |
(E) |
3,401 |
3,394 |
|
Debt to operational adjusted EBITDA, excluding securitization debt |
(C)/(E) |
4.2x |
3.9x |
|
Net cash flow provided by operating activities, rolling 12 months |
(F) |
3,194 |
3,348 |
|
AFUDC-borrowed funds used during construction, rolling 12 months |
(G) |
(32) |
(29) |
|
Working capital items in net cash flow provided by operating activities, rolling 12 months: |
|||
|
Receivables |
(10) |
(5) | |
|
Fuel inventory |
24 |
(34) | |
|
Accounts payable |
55 |
(63) | |
|
Prepaid taxes and taxes accrued |
3 |
25 | |
|
Interest accrued |
9 |
(5) | |
|
Other working capital accounts |
(59) |
(17) | |
|
Securitization regulatory charge |
111 |
104 | |
|
Total |
(H) |
133 |
5 |
|
FFO, rolling 12 months |
(F)+(G)-(H) |
3,029 |
3,314 |
|
Add back: special item for HCM implementation expenses, rolling 12 months (pre-tax) |
- |
11 | |
|
Add back: special item resulting from decisions to close VY and Pilgrim and decision to sell or close FitzPatrick, rolling 12 months (pre-tax) |
6 |
56 | |
|
Operational FFO, rolling 12 months |
(I) |
3,035 |
3,381 |
|
Operational FFO to debt ratio, excluding securitization debt |
(I)/(C) |
21.1% |
25.4% |
|
Totals may not foot due to rounding |
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SOURCE Entergy Corporation
Article Date
10/25/2016Entergy Announces Third Quarter Earnings Conference Call
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, Oct. 18, 2016 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) will report third quarter earnings results before market open on Tuesday, Oct. 25, 2016, and host a teleconference at 10 a.m. CT that day to discuss the earnings announcement and the company's financial performance. The teleconference may be accessed by dialing 855-893-9849, conference ID 85417477, no more than 15 minutes prior to the start of the call or by visiting Entergy's website at entergy.com. From time to time, Entergy posts new and/or revised materials on its website and on social media, and anticipates doing so in connection with this event. The presentation slides will be available on Entergy's website and the Entergy Investor Relations mobile web app at iretr.com before market open on the day of the call. A replay of the teleconference will be available until Nov. 1, 2016, by dialing 855-859-2056, confirmation ID 85417477.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
Additional investor information can be accessed at www.entergy.com/investor_relations
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SOURCE Entergy Corporation
Article Date
10/18/2016Entergy Named as National Leader in Economic Development
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, Sept. 29, 2016 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) has been named one of the nation's Top 10 utilities in economic development for 2015 by Site Selection magazine for the ninth year in a row for its integral role that resulted in nearly $10.3 billion of capital investment and the creation of over 4,800 new jobs in its service territory.
The ranking may be viewed in the September 2016 print edition and on Site Selection's website.
"Entergy is honored to be recognized again by Site Selection magazine as one of the top national utilities in economic development," said Paula Waters, vice president of Entergy's utility sales and development services department. "As active participants in our region's economic development process, and through our close work with our state agencies and local communities, we successfully secured new load growth and recently helped drive $90 million in new sales from corporate facility and other projects. Entergy will continue to play an integral role in the ongoing industrial growth taking place in our own backyard."
Criteria used by Site Selection to choose the top 10 includes the utility's use of innovative programs and incentives for business and the utility's own job-creating infrastructure and facility investment trends. Entergy provides companies with access to essential information to locate, expand and promote their company in Arkansas, Louisiana, Mississippi and Texas. In addition, Entergy provides companies with services in site selection, project management, large project transmission and distribution engineering and contracts.
For more information on Entergy's economic development efforts, please go to goentergy.com.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
entergy.com
Facebook.com/Entergy
Twitter: @Entergy
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SOURCE Entergy Corporation
Article Date
9/29/20169/19/2016 - Entergy Corporation Chairman and CEO to Speak at Wolfe Research Power & Gas Leaders Conference
Entergy Corporation Chairman and CEO to Speak at Wolfe Research Power & Gas Leaders Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, Sept. 19, 2016 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) Chairman and Chief Executive Officer Leo Denault plans to provide a presentation as part of a panel discussion on Tuesday, Sept. 27, 2016, during the Wolfe Research Power & Gas Leaders Conference. The presentation is expected to start at approximately 10:00 a.m. ET. A live webcast will be available on the Investor Relations section of Entergy's corporate website at entergy.com. A replay of the webcast will be available and archived on the website for approximately 90 days. Presentation slides will be posted on the Investor Relations section of Entergy's corporate website at entergy.com before market open on Tuesday, Sept. 27. The webcast and presentation slides will also be available on the Entergy Investor Relations mobile web app at iretr.com.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
Additional investor information can be accessed online at entergy.com/investor_relations
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SOURCE Entergy Corporation
Article Date
9/19/2016Entergy Mississippi, Inc. Announces Redemption of First Mortgage Bonds, 6.20% Series due April 15, 2040 and First Mortgage Bonds, 6.0% Series due May 1, 2051
Source: PR Newswire
NEW ORLEANS, Sept. 15, 2016 /PRNewswire/ -- Entergy Mississippi, Inc. announced today that on Oct. 17, 2016 (the "Redemption Date"), it will redeem all (i) $80,000,000 principal amount of its outstanding First Mortgage Bonds, 6.20% Series due April 15, 2040 (the "2040 Bonds") and (ii) $150,000,000 principal amount of its outstanding First Mortgage Bonds, 6.0% Series due May 1, 2051 (the "2051 Bonds"), in each case, at the redemption price of 100 percent of the principal amount of such 2040 Bonds or 2051 Bonds (the "Redemption Price"), plus accrued interest thereon to but excluding the Redemption Date. The 2040 Bonds and the 2051 Bonds are each listed on the New York Stock Exchange and trade under the symbols EFM and EMZ, respectively.
On the Redemption Date, provided that the trustee has received sufficient funds to complete the redemption of the 2040 Bonds or the 2051 Bonds, the Redemption Price for the applicable bonds, together with accrued interest thereon to but excluding the Redemption Date, shall become due and payable, and on and after the Redemption Date, such bonds shall cease to bear interest. Payment of the Redemption Price for, and accrued interest on, such bonds will be made on or after the Redemption Date upon presentation and surrender of such bonds to The Bank of New York Mellon, Bondmaster Ops – Syracuse – Vault, 111 Sanders Creek Parkway, East Syracuse, New York 13057.
Entergy Mississippi, Inc. provides electricity to approximately 445,000 customers in 45 counties. Entergy Mississippi is a subsidiary of Entergy Corporation (NYSE: ETR), an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
Entergy's online address: entergy.com
Twitter: @Entergy
Facebook.com/Entergy
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SOURCE Entergy Mississippi, Inc.
Article Date
9/15/2016Andrea Coughlin Rowley to Lead Entergy Human Resources
Source: PR Newswire
NEW ORLEANS, Sept. 14, 2016 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) announced today the selection of Andrea Coughlin Rowley, a veteran human resources leader in the energy sector, as senior vice president of HR, effective Sept. 19.
Rowley, a seasoned business leader with who has more than 25 years HR management experience, will serve as a member of Entergy's Office of the Chief Executive, reporting to Don Vinci. In May, Vinci became the executive leader of the company's combined shared services and HR organization. He will continue in that role, with the title of executive vice president and chief administrative officer. He will also continue to serve as the company's chief diversity officer.
"We are excited to have Andrea join us as a member of the OCE. Her knowledge and depth of experience in leading organizations through transformational change will serve us well as we seek to continually improve how we work and develop our talent pipeline for the future," said Leo Denault, chairman and CEO of Entergy Corporation.
Rowley most recently served as the president and CEO of Advance/Evolve, a leadership and change management consulting firm. She began her career in human resources at Shell and later served in a variety of HR leadership roles at Frito-Lay, BMC Software and Baker Hughes, where she became vice president of global transformation and led the redesign of global human resources.
Rowley was vice president, human resources, at Schlumberger/Smith International in the Wilson division, where she led not only succession planning, compensation and benefit programs, but also the company's safety and continuous improvement departments. She later served as vice president, human resources – residential, at Direct Energy, and as vice president of HR at Dover Corporation.
"We're really pleased to welcome Andrea to Entergy at an exciting time for our company and our employees," Vinci said. "I am confident her broad and varied experiences leading HR teams in large, global and complex businesses, make her ideally suited to join our executive team and lead the HR function."
Rowley received a Bachelor of Science degree in business administration, majoring in human resource management, at Ohio State University. She then continued her education and received a Juris Doctor degree from the University of Houston Law Center.
She is a member of the American Bar Association and State Bar of Texas, and has volunteered for organizations including the United Way and the John Cooper School Parents Forum. Rowley is on the advisory board for CareerSHOUT, an online career management and consulting service.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
Online address: Entergy.com
Twitter: @Entergy
Facebook: www.facebook.com/entergy
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SOURCE Entergy Corporation
Article Date
9/14/2016Entergy Corporation Chairman and CEO to Speak at Barclays CEO Energy-Power Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, Sept. 1, 2016 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) Chairman and Chief Executive Officer Leo Denault plans to provide a presentation on Thursday, Sept. 8, 2016, during the Barclays CEO Energy-Power Conference. The presentation is expected to start at approximately 7:45 a.m. ET. A live webcast will be available on the Investor Relations section of Entergy's corporate website at entergy.com. A replay of the webcast will be available and archived on the website for approximately 90 days. Presentation slides will be posted on the Investor Relations section of Entergy's corporate website at entergy.com before market open on Thursday, Sept. 8. The webcast and presentation slides will also be available on the Entergy Investor Relations mobile web app at iretr.com.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
Additional investor information can be accessed online at
www.entergy.com/investor_relations.
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SOURCE Entergy Corporation
Article Date
9/1/20168/17/2016 - Entergy Louisiana, LLC Announces Redemption of First Mortgage Bonds, 5.875% Series due June 15, 2041
Entergy Louisiana, LLC Announces Redemption of First Mortgage Bonds, 5.875% Series due June 15, 2041
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, Aug. 17, 2016 /PRNewswire/ -- Entergy Louisiana, LLC announced today that on September 16, 2016 (the "Redemption Date"), it will redeem all $150,000,000 principal amount of its outstanding First Mortgage Bonds, 5.875% Series due June 15, 2041, (the "Bonds"), at the redemption price of 100 percent of the principal amount thereof (the "Redemption Price") plus accrued interest thereon to but excluding the Redemption Date. The Bonds are listed on the New York Stock Exchange and trade under the symbol ELA.
On the Redemption Date, provided that the trustee has received sufficient funds to complete the redemption, the Redemption Price, together with accrued interest to but excluding the Redemption Date, shall become due and payable on each Bond, and on and after the Redemption Date, the Bonds shall cease to bear interest. Payment of the Redemption Price and accrued interest will be made on or after the Redemption Date upon presentation and surrender of the Bonds to The Bank of New York Mellon, Bondmaster Ops – Syracuse – Vault, 111 Sanders Creek Parkway, East Syracuse, New York 13057.
Entergy Louisiana, LLC provides electric service to more than 1 million customers and natural gas service to approximately 93,000 customers in the greater Baton Rouge area. With operations in southern, central and northeastern Louisiana, the company is a subsidiary of Entergy Corporation (NYSE: ETR), an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
Entergy's online address is entergy.com
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SOURCE Entergy Louisiana, LLC
Article Date
8/17/20168/17/2016 - Entergy Louisiana, LLC Announces Redemption of First Mortgage Bonds, 6% Series due March 15, 2040
Entergy Louisiana, LLC Announces Redemption of First Mortgage Bonds, 6% Series due March 15, 2040
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, Aug. 17, 2016 /PRNewswire/ -- Entergy Louisiana, LLC announced today that on September 16, 2016 (the "Redemption Date"), it will redeem all $118,000,000 principal amount of its outstanding First Mortgage Bonds, 6% Series due March 15, 2040, (the "Bonds"), at the redemption price of 100 percent of the principal amount thereof (the "Redemption Price") plus accrued interest thereon to but excluding the Redemption Date. The Bonds are listed on the New York Stock Exchange and trade under the symbol ELB.
On the Redemption Date, provided that the trustee has received sufficient funds to complete the redemption, the Redemption Price, together with accrued interest to but excluding the Redemption Date, shall become due and payable on each Bond, and on and after the Redemption Date, the Bonds shall cease to bear interest. Payment of the Redemption Price and accrued interest will be made on or after the Redemption Date upon presentation and surrender of the Bonds to The Bank of New York Mellon, Bondmaster Ops – Syracuse – Vault, 111 Sanders Creek Parkway, East Syracuse, New York 13057.
Entergy Louisiana, LLC provides electric service to more than 1 million customers and natural gas service to approximately 93,000 customers in the greater Baton Rouge area. With operations in southern, central and northeastern Louisiana, the company is a subsidiary of Entergy Corporation (NYSE: ETR), an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
Entergy's online address is entergy.com
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SOURCE Entergy Louisiana, LLC
Article Date
8/17/20168/16/2016 - Entergy Arkansas, Inc. Announces Redemption of First Mortgage Bonds, 5.75% Series due November 1, 2040
Entergy Arkansas, Inc. Announces Redemption of First Mortgage Bonds, 5.75% Series due November 1, 2040
Source: PR Newswire
NEW ORLEANS, Aug. 16, 2016 /PRNewswire/ -- Entergy Arkansas, Inc. announced today that on September 15, 2016 (the "Redemption Date"), it will redeem all $225,000,000 principal amount of its outstanding First Mortgage Bonds, 5.75% Series due November 1, 2040, (the "Bonds"), at the redemption price of 100 percent of the principal amount thereof (the "Redemption Price") plus accrued interest thereon to but excluding the Redemption Date. The Bonds are listed on the New York Stock Exchange and trade under the symbol EAA.
On the Redemption Date, provided that the corporate trustee, Deutsche Bank Trust Company Americas, has received sufficient funds to complete the redemption, the Redemption Price, together with accrued interest to but excluding the Redemption Date, shall become due and payable on each Bond, and on and after the Redemption Date, the Bonds shall cease to bear interest. Payment of the Redemption Price and accrued interest will be made on or after the Redemption Date upon presentation and surrender of the Bonds to DB Services Americas, Inc., MS JCK01-D218, 5022 Gate Parkway, Jacksonville, Florida 32256.
Entergy Arkansas provides electricity to approximately 700,000 customers in 63 counties. Entergy Arkansas is a subsidiary of Entergy Corporation (NYSE: ETR), an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
Entergy's online address is entergy.com
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SOURCE Entergy Arkansas, Inc.
Article Date
8/16/20168/2/2016 - Entergy Reports Second Quarter Earnings
Entergy Reports Second Quarter Earnings
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, Aug. 2, 2016 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported second quarter 2016 earnings per share of $3.16 on an as-reported basis and $3.11 on an operational basis.
|
Consolidated Earnings (GAAP and Non-GAAP Measures) | |||
|
Second Quarter 2016 (See Appendix A and Appendix C for reconciliation of GAAP to non-GAAP measures and description of special items) | |||
|
(Per share in $) |
|||
|
Utility, Parent & Other |
EWC |
Consolidated | |
|
As-Reported |
1.77 |
1.39 |
3.16 |
|
Specials |
- |
0.05 |
0.05 |
|
Operational |
1.77 |
1.34 |
3.11 |
|
Included in As-Reported and Operational: | |||
|
Weather |
(0.09) |
- |
(0.09) |
|
Income Taxes, Net of Sharing |
0.68 |
1.33 |
2.01 |
|
Utility, Parent & Other Adjusted |
1.18 |
||
"We delivered solid results through the first half of the year, and we continue to make progress toward meeting our objective of steady, predictable growth at the Utility while reducing our EWC footprint," said Entergy chairman and chief executive officer Leo Denault. "As-reported earnings for both businesses were higher than expected, with Utility, Parent & Other Adjusted earnings substantially higher than last year and in line with our growth expectations for our core business. We are confident we can deliver on our 2016 commitments, as well as our Utility, Parent & Other long-term outlook."
Business highlights included the following:
|
Consolidated Earnings (GAAP and Non-GAAP Measures) | ||||||
|
Second Quarter and Year-to-Date 2016 vs. 2015 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of special items) | ||||||
|
Second Quarter |
Year-to-Date | |||||
|
2016 |
2015 |
Change |
2016 |
2015 |
Change | |
|
As-Reported Earnings ($ in millions) |
567.3 |
148.8 |
418.5 |
797.3 |
446.9 |
350.4 |
|
Less Special Items |
9.6 |
(1.1) |
10.7 |
(3.3) |
(5.7) |
2.4 |
|
Operational Earnings |
557.7 |
149.9 |
407.8 |
800.6 |
452.6 |
348.0 |
|
Weather Impact |
(16.3) |
(2.9) |
(13.4) |
(41.8) |
11.4 |
(53.2) |
|
As-Reported Earnings (per share in $) |
3.16 |
0.83 |
2.33 |
4.45 |
2.48 |
1.97 |
|
Less: Special Items |
0.05 |
- |
0.05 |
(0.02) |
(0.03) |
0.01 |
|
Operational Earnings |
3.11 |
0.83 |
2.28 |
4.47 |
2.51 |
1.96 |
|
Weather Impact |
(0.09) |
(0.02) |
(0.07) |
(0.23) |
0.06 |
(0.29) |
|
Totals may not foot due to rounding |
Consolidated Results
Second quarter 2016 EPS were $3.16 on an as-reported basis and $3.11 on an operational basis, compared to second quarter 2015 as-reported and operational EPS of 83 cents. Current period results were favorably impacted by income tax items, which resulted from resolution of previous positions at Utility, as well as a tax election at EWC. Summary discussions by business are below.
Additional details, including information on operating cash flow by business, are provided in Appendix A and a comprehensive analysis of quarterly and year-to-date variances is provided in Appendix B.
Utility, Parent & Other Results
For second quarter 2016, Utility, Parent and Other EPS were $1.77 on an as-reported basis and $1.18 on an adjusted basis. In comparison, second quarter 2015 as-reported EPS were 85 cents and adjusted EPS were 87 cents. The current period results reflected growth in the Utility business, including effects of new rate actions that recover investments and improve returns, as well as income tax items recorded during the quarter.
Utility, Parent & Other second quarter 2016 results included income tax items for resolution of previous positions, which drove 68 cents EPS for income taxes, net of a reserve of approximately 6 cents for guaranteed customer sharing. Weather was milder than normal in both the current and prior periods, with the earnings effect more negative in second quarter 2016 compared to 2015.
Net revenue increased quarter-over-quarter driven by the Union acquisition and EAI's 2015 rate case. Revenue increases for the Union acquisition included amounts to recover operating expenses for the asset. Industrial sales growth also contributed to the increase in net revenue.
Industrial sales were higher on continued growth for new and expansion customers as well as higher sales to existing customers. New and expansion customers across several sectors continued to operate, ramp up and come online. For existing customers, petroleum refiners comprised the majority of that increase as they continued to operate at high capacity levels compared to last year and.
Utility non-fuel O&M was lower than second quarter 2015 due partly to lower pension and OPEB expenses. Fossil spending was also lower due to outage scope, partially offset by spending for Union, which was acquired earlier this year.
Appendix C contains additional details on Utility financial and operational measures, including a schedule of Utility, Parent & Other Adjusted EPS calculations which exclude special items and weather and normalizes income taxes.
Entergy Wholesale Commodities Results
EWC earned $1.39 per share on an as-reported basis and $1.34 per share on an operational basis for second quarter 2016. EWC recorded a 2 cents per share loss in second quarter 2015 on both an as-reported basis and an operational basis.
The EWC quarter-over-quarter increase was due largely to income tax items recorded in the current quarter, which increased EPS $1.33. Current quarter results were also affected by 2015 impairments, which reduced fuel, non-fuel O&M and depreciation expenses, as well as spent nuclear fuel litigation proceeds (a portion of which was considered "special" as discussed below). Conversely, net revenue declined as a result of lower energy and capacity prices as well as lower volume which resulted from the extended refueling outage at Indian Point 2.
EWC second quarter 2016 as-reported EPS included 5 cents for special items resulting from the decisions to close certain nuclear plants. These special items included 12 cents for a portion of litigation proceeds received from the DOE in connection with capitalized spent nuclear fuel storage costs that were previously impaired and written off, partially offset by 7 cents for severance and retention costs and capital that was expensed because the plants are impaired.
Appendix D contains additional details on EWC financial and operational measures, including a schedule of EWC Operational Adjusted EBITDA calculations.
Earnings Guidance
Entergy updated its 2016 operational guidance to be $6.60 to $7.40 per share and affirmed its Utility, Parent & Other Adjusted EPS guidance range of $4.20 to $4.50. The updated guidance range for Entergy includes tax benefits recorded in second quarter 2016, year-to-date weather, the extended outage at Indian Point 2 and lower commodity prices. See webcast presentation slides for additional details.
The company has provided 2016 earnings guidance with regard to the non-GAAP measures operational earnings per share and Utility, Parent and Other Adjusted EPS. These measures exclude from the corresponding GAAP financial measures the effect of special items, which are non-routine items, such as impairment charges, gains or losses on asset sales, and other gains or losses occurring as a result of strategic decisions such as the company's recent decisions to shut down certain of its nuclear plants. Consistent with SEC rules, the company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot reasonably estimate all of the special items that may occur for the periods presented. The company's current estimate for special items in 2016 relates to the decisions to close certain nuclear plants and for DOE litigation awards for those plants; those anticipated special items total approximately 35 cents per share. Other special items may occur during the periods presented, the impact of which cannot reasonably be estimated at this time.
Earnings Teleconference
A teleconference will be held at 10 a.m. CT on Tuesday, August 2, 2016, to discuss Entergy's second quarter 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 (855) 893-9849, conference ID 85416349, no more than 15 minutes prior to the start of the call. The webcast slide presentation is also posted to Entergy's website concurrent with this release, which was issued before market open on the day of the call. A replay of the teleconference will be available on Entergy's website at www.entergy.com and by telephone. The telephone replay will be available through August 9, 2016, by dialing (855) 859-2056, conference ID 85416349. This release and the webcast slide presentation are also available on the Entergy Investor Relations mobile web app at iretr.com.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
Entergy Corporation's common stock is listed on the New York and Chicago exchanges 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 slide presentation. Both documents are available on Entergy's Investor Relations website at www.entergy.com/investor_relations and on Entergy's Investor Relations mobile web app at iretr.com.
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, Entergy's 2016 earnings guidance, its current financial and operational outlook, and other statements of Entergy's plans, beliefs or expectations included in 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 rate proceedings, formula rate plans and other cost recovery mechanisms; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory risks, including any changes resulting from the nuclear crisis in Japan following its catastrophic earthquake and tsunami; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning FitzPatrick, Pilgrim or VY or any of Entergy's other 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 strategic transactions that Entergy or its subsidiaries may undertake, including 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 and (h) economic conditions and conditions in commodity and capital markets during the periods covered by the forward-looking statements.
For definitions of certain operational performance measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the quarterly materials, see Appendix F and Appendix G.
Second Quarter 2016 Earnings Release Appendices and Financial Statements
Appendices
Seven appendices are presented in this section as follows:
Also included in this earnings release are:
A: Consolidated Results and Special Items
Appendix A-1 provides a comparative summary of consolidated EPS for current quarter and year-to-date 2016 versus 2015, including a reconciliation of GAAP as-reported earnings to non-GAAP operational earnings.
|
Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures Second Quarter and Year-to-Date 2016 vs. 2015 (See Appendix A-3 and Appendix A-4 for details on special items) | ||||||
|
(Per share in $) | ||||||
|
Second Quarter |
Year-to-Date | |||||
|
2016 |
2015 |
Change |
2016 |
2015 |
Change | |
|
As-reported |
||||||
|
Utility |
2.09 |
1.11 |
0.98 |
3.18 |
2.35 |
0.83 |
|
Parent & Other |
(0.32) |
(0.26) |
(0.06) |
(0.57) |
(0.53) |
(0.04) |
|
EWC |
1.39 |
(0.02) |
1.41 |
1.84 |
0.66 |
1.18 |
|
Consolidated as-reported earnings |
3.16 |
0.83 |
2.33 |
4.45 |
2.48 |
1.97 |
|
Less special items |
||||||
|
Utility |
- |
- |
- |
- |
- |
- |
|
Parent & Other |
- |
- |
- |
- |
- |
- |
|
EWC |
0.05 |
- |
0.05 |
(0.02) |
(0.03) |
0.01 |
|
Consolidated special items |
0.05 |
- |
0.05 |
(0.02) |
(0.03) |
0.01 |
|
Operational |
||||||
|
Utility |
2.09 |
1.11 |
0.98 |
3.18 |
2.35 |
0.83 |
|
Parent & Other |
(0.32) |
(0.26) |
(0.06) |
(0.57) |
(0.53) |
(0.04) |
|
EWC |
1.34 |
(0.02) |
1.36 |
1.86 |
0.69 |
1.17 |
|
Consolidated operational earnings |
3.11 |
0.83 |
2.28 |
4.47 |
2.51 |
1.96 |
|
Weather impact |
(0.09) |
(0.02) |
(0.07) |
(0.23) |
0.06 |
(0.29) |
See Appendix B for detailed earnings variance analysis.
Appendix A-2 provides the components of OCF contributed by each business for current quarter and year-to-date 2016 versus 2015.
|
Appendix A-2: Consolidated Operating Cash Flow | ||||||
|
Second Quarter and Year-to-Date 2016 vs. 2015 | ||||||
|
($ in millions) | ||||||
|
Second Quarter |
Year-to-Date | |||||
|
2016 |
2015 |
Change |
2016 |
2015 |
Change | |
|
Utility |
690 |
762 |
(72) |
1,149 |
1,216 |
(67) |
|
Parent & Other |
(47) |
(43) |
(4) |
(109) |
(94) |
(15) |
|
EWC |
76 |
8 |
68 |
212 |
216 |
(4) |
|
Total Operating Cash Flow |
719 |
727 |
(8) |
1,252 |
1,338 |
(86) |
|
Totals may not foot due to rounding |
The quarter-over-quarter decrease in OCF was not significant. Intercompany income tax payments contributed to the line of business variances.
Appendix A-3 and Appendix A-4 list special items by business. Amounts are shown on both an EPS basis and a net income basis. Special items are those events that are not routine. Special items are included in as-reported earnings consistent with GAAP, but are excluded from operational earnings. As a result, operational EPS is considered a non-GAAP measure.
|
Appendix A-3: Special Items by Driver (shown as positive/(negative) impact on EPS) | ||||||
|
Second Quarter and Year-to-Date 2016 vs. 2015 | ||||||
|
(After-tax, per share in $) | ||||||
|
Second Quarter |
Year-to-Date | |||||
|
2016 |
2015 |
Change |
2016 |
2015 |
Change | |
|
EWC |
||||||
|
Decisions to close VY, FitzPatrick and Pilgrim |
(0.07) |
- |
(0.07) |
(0.14) |
(0.03) |
(0.11) |
|
DOE litigation awards for VY and FitzPatrick |
0.12 |
- |
0.12 |
0.12 |
- |
0.12 |
|
Total EWC |
0.05 |
- |
0.05 |
(0.02) |
(0.03) |
0.01 |
|
Total special items |
0.05 |
- |
0.05 |
(0.02) |
(0.03) |
0.01 |
|
Appendix A-4: Special Items by Income Statement Line Item (shown as positive/(negative) impact on earnings) | ||||||
|
Second Quarter and Year-to-Date 2016 vs. 2015 | ||||||
|
(Pre-tax except for Income taxes – other and Total, $ in millions) | ||||||
|
Second Quarter |
Year-to-Date | |||||
|
2016 |
2015 |
Change |
2016 |
2015 |
Change | |
|
EWC |
||||||
|
Non-fuel O&M |
22.7 |
(1.6) |
24.3 |
11.2 |
(9.1) |
20.3 |
|
Taxes other than income taxes |
(0.9) |
- |
(0.9) |
(1.9) |
0.3 |
(2.2) |
|
Asset write-off and impairments |
(7.0) |
- |
(7.0) |
(14.3) |
- |
(14.3) |
|
Income taxes – other |
(5.2) |
0.6 |
(5.8) |
1.8 |
3.0 |
(1.2) |
|
Total EWC |
9.6 |
(1.1) |
10.7 |
(3.3) |
(5.7) |
2.4 |
|
Total Special Items (after-tax) |
9.6 |
(1.1) |
10.7 |
(3.3) |
(5.7) |
2.4 |
|
Totals may not foot due to rounding |
B: Variance Analysis
Appendix B-1 and Appendix B-2 provide details of current quarter and year-to-date 2016 versus 2015 as-reported and operational earnings variance analysis for Utility, Parent & Other, EWC and Consolidated.
|
Appendix B-1: As-Reported and Operational EPS Variance Analysis | |||||||||||
|
Second Quarter 2016 vs. 2015 | |||||||||||
|
(After-tax, per share in $, sorted in consolidated operational column, most to least favorable) | |||||||||||
|
Utility |
Parent & Other |
EWC |
Consolidated | ||||||||
|
As-Reported |
Opera-tional |
As-Reported |
Opera-tional |
As- Reported |
Opera-tional |
As- Reported |
Opera-tional | ||||
|
2015 earnings |
1.11 |
1.11 |
(0.26) |
(0.26) |
(0.02) |
(0.02) |
0.83 |
0.83 | |||
|
Income taxes – other |
0.79 |
0.79 |
(a) |
(0.04) |
(0.04) |
1.33 |
1.33 |
(b) |
2.08 |
2.08 | |
|
Non-fuel O&M |
0.09 |
0.09 |
(c) |
(0.01) |
(0.01) |
0.22 |
0.14 |
(d) |
0.30 |
0.22 | |
|
Other income (deductions)-other |
0.05 |
0.05 |
(e) |
- |
- |
0.01 |
0.01 |
0.06 |
0.06 | ||
|
Taxes other than income taxes |
(0.01) |
(0.01) |
- |
- |
0.04 |
0.04 |
0.03 |
0.03 | |||
|
Depreciation/amortization expense |
(0.04) |
(0.04) |
- |
- |
0.06 |
0.06 |
(f) |
0.02 |
0.02 | ||
|
Share effect |
0.01 |
0.01 |
- |
- |
- |
- |
0.01 |
0.01 | |||
|
Asset write-offs and impairments |
- |
- |
- |
- |
(0.03) |
- |
(0.03) |
- | |||
|
Decommissioning expense |
(0.01) |
(0.01) |
- |
- |
(0.02) |
(0.02) |
(0.03) |
(0.03) | |||
|
Interest expense and other charges |
(0.03) |
(0.03) |
(0.01) |
(0.01) |
- |
- |
(0.04) |
(0.04) | |||
|
Net revenue |
0.13 |
0.13 |
(g) |
- |
- |
(0.20) |
(0.20) |
(h) |
(0.07) |
(0.07) | |
|
2016 earnings |
2.09 |
2.09 |
(0.32) |
(0.32) |
1.39 |
1.34 |
3.16 |
3.11 | |||
|
Appendix B-2: As-Reported and Operational EPS Variance Analysis | |||||||||||
|
Year-to-Date 2016 vs. 2015 | |||||||||||
|
(After-tax, per share in $, sorted in consolidated operational column, most to least favorable) | |||||||||||
|
Utility |
Parent & Other |
EWC |
Consolidated | ||||||||
|
As-Reported |
Opera-tional |
As-Reported |
Opera-tional |
As- Reported |
Opera-tional |
As- Reported |
Opera-tional | ||||
|
2015 earnings |
2.35 |
2.35 |
(0.53) |
(0.53) |
0.66 |
0.69 |
2.48 |
2.51 | |||
|
Income taxes – other |
0.66 |
0.66 |
(a) |
- |
- |
1.30 |
1.30 |
(b) |
1.96 |
1.96 | |
|
Non-fuel O&M |
0.22 |
0.22 |
(c) |
(0.01) |
(0.01) |
0.28 |
0.21 |
(d) |
0.49 |
0.42 | |
|
Taxes other than income taxes |
0.02 |
0.02 |
- |
- |
0.03 |
0.04 |
0.05 |
0.06 | |||
|
Share effect |
0.02 |
0.02 |
- |
- |
0.01 |
0.01 |
0.03 |
0.03 | |||
|
Depreciation/amortization expense |
(0.07) |
(0.07) |
(i) |
- |
- |
0.08 |
0.08 |
(f) |
0.01 |
0.01 | |
|
Asset write-offs and impairments |
- |
- |
- |
- |
(0.05) |
- |
(j) |
(0.05) |
- | ||
|
Decommissioning expense |
(0.01) |
(0.01) |
- |
- |
(0.01) |
(0.01) |
(0.02) |
(0.02) | |||
|
Other income (deductions)-other |
0.02 |
0.02 |
(0.01) |
(0.01) |
(0.06) |
(0.06) |
(k) |
(0.05) |
(0.05) | ||
|
Interest expense and other charges |
(0.03) |
(0.03) |
(0.02) |
(0.02) |
- |
- |
(0.05) |
(0.05) | |||
|
Net revenue |
- |
- |
- |
- |
(0.40) |
(0.40) |
(h) |
(0.40) |
(0.40) | ||
|
2016 earnings |
3.18 |
3.18 |
(0.57) |
(0.57) |
1.84 |
1.86 |
4.45 |
4.47 | |||
See appendix in the webcast slide presentation for additional details on EWC line item variances.
|
(a) |
The current quarter and year-to-date increases were due largely to the reversal of a portion of the provision for uncertain tax positions totaling $136 million for two previous positions that were resolved in the 2010-2011 tax audit. This was partly offset by customer sharing recorded as a regulatory charge ($16 million pre-tax, included in net revenue). The year-to-date variance also reflected a first quarter 2015 reversal of a portion of the provision for uncertain tax provisions related to interest accrual of approximately $24 million. |
|
(b) |
The current quarter and year-to-date increases were attributable largely to a tax election which reduced income tax expense $238 million. |
|
(c) |
The current quarter and year-to-date increases reflected lower pension and OPEB expenses stemming partly from a higher discount rate and lower fossil spending due to lower scope of work for outage activity. The expense decreases were partially offset by the Union acquisition (offset in net revenue). The year-to-date variance also reflected a deferral recorded at EAI in first quarter 2016, expenses in second quarter 2015 related to the ELL business combination and higher nuclear generation spending in 2016 due primarily to an increase in regulatory compliance costs, an overall higher scope of work done during plant outages and higher nuclear labor costs, including contract labor. |
|
(d) |
The current quarter and year-to-date increases reflected a reduction in expense for litigation proceeds received from the DOE in connection with spent nuclear fuel storage costs in second quarter 2016, a portion of the amounts received for VY and FitzPatrick (approximately 12 cents EPS) was considered "special." Lower refueling outage expense, largely as a result of 2015 impairments, also contributed to the increase. Partially offsetting were higher expenses resulting from the decisions to close certain nuclear plants (these expenses were also considered "special"). |
|
(e) |
The current quarter increase was due largely to higher realized earnings on nuclear decommissioning trust funds (substantially offset in net revenue). |
|
(f) |
The current quarter and year-to-date increases resulted from 2015 impairments and recording the effects of DOE litigation proceeds related to spent nuclear fuel storage costs. These items were partially offset by the sale of RISEC. |
|
(g) |
The current quarter increase was due primarily to rate changes associated with the Union acquisition, EAI's 2015 rate case and industrial sales growth. Higher volume in the unbilled period also contributed. Partially offsetting the increase was a $16 million (pre-tax) reserve for the portion of tax benefit noted above to be shared with customers. The effect of weather was more unfavorable in the current period than a year ago. |
|
(h) |
The current quarter and year-to-date decreases were driven by lower energy and capacity pricing for nuclear assets. Volume from nuclear assets was also lower due largely to the extended Indian Point 2 refueling outage. The sale of RISEC facility in December 2015 also contributed to the decline. These decreases were partially offset by lower nuclear fuel expense (due largely to 2015 impairments). |
|
(i) |
The year-to-date decrease was due primarily to additions to plant, including the Union acquisition in March 2016. |
|
(j) |
The year-to-date decrease is attributable to capital that is recorded as non-fuel O&M for nuclear plants that have closed or are identified to close. |
|
(k) |
The year-to-date decrease was due largely to realized earnings from decommissioning trusts in 2015 from rebalancing of VY's decommissioning trust. |
|
Utility As-Reported Net Revenue Variance Analysis 2016 vs. 2015 ($ EPS) | ||
|
Second |
Year-to- Date | |
|
Weather |
(0.07) |
(0.29) |
|
Sales growth/pricing |
0.29 |
0.43 |
|
Other |
(0.09) |
(0.14) |
|
Total |
0.13 |
- |
C: Utility Financial and Operational Measures
Appendix C-1 provides a comparative summary of Utility, Parent & Other Adjusted EPS, which excludes the effects of special items and weather and normalizes income tax expense.
|
Appendix C-1: Utility, Parent & Other Adjusted EPS - Reconciliation of GAAP to Non-GAAP Measures | ||||||
|
Second Quarter and Year-to-Date 2016 vs. 2015 (See Appendix A for details on special items) | ||||||
|
(Per share in $) |
Second Quarter |
Year-to-Date | ||||
|
2016 |
2015 |
Change |
2016 |
2015 |
Change | |
|
As-reported earnings |
1.77 |
0.85 |
0.92 |
2.61 |
1.82 |
0.79 |
|
Less: |
||||||
|
Special items |
- |
- |
- |
- |
- |
- |
|
Weather |
(0.09) |
(0.02) |
(0.07) |
(0.23) |
0.06 |
(0.29) |
|
Income taxes, net of sharing (l) |
0.68 |
- |
0.68 |
0.71 |
0.13 |
0.58 |
|
Adjusted EPS |
1.18 |
0.87 |
0.31 |
2.13 |
1.63 |
0.50 |
|
(l) |
Tax items recorded in second quarter 2016 are net of the reserve recorded for amounts to be shared with customers (reflected as a reduction in net revenue). |
Appendix C-2 provides a comparative summary of Utility operational performance measures.
|
Appendix C-2: Utility Operational Performance Measures | ||||||||||||
|
Second Quarter and Year-to-Date 2016 vs. 2015 (See Appendix G for reconciliation of GAAP to non-GAAP measures) | ||||||||||||
|
Second Quarter |
Year-to-Date | |||||||||||
|
2016 |
2015 |
% Change |
% Weather |
2016 |
2015 |
% Change |
% Weather | |||||
|
GWh billed |
||||||||||||
|
Residential |
7,081 |
7,364 |
(3.8%) |
(0.6%) |
15,218 |
16,796 |
(9.4%) |
(0.6%) | ||||
|
Commercial |
6,777 |
6,904 |
(1.8%) |
(0.6%) |
13,288 |
13,625 |
(2.5%) |
(1.2%) | ||||
|
Governmental |
609 |
602 |
1.2% |
1.8% |
1,209 |
1,194 |
1.3% |
1.5% | ||||
|
Industrial |
11,509 |
10,737 |
7.2% |
7.2% |
22,564 |
21,144 |
6.7% |
6.7% | ||||
|
Total retail sales |
25,976 |
25,607 |
1.4% |
2.7% |
52,279 |
52,759 |
(0.9%) |
2.2% | ||||
|
Wholesale |
3,579 |
3,138 |
14.1% |
6,719 |
4,949 |
35.8% |
||||||
|
Total sales |
29,555 |
28,745 |
2.8% |
58,998 |
57,708 |
2.2% |
||||||
|
Number of electric retail customers |
||||||||||||
|
Residential |
2,448,934 |
2,430,698 |
0.8% |
|||||||||
|
Commercial |
352,615 |
348,337 |
1.2% |
|||||||||
|
Governmental |
17,641 |
17,487 |
0.9% |
|||||||||
|
Industrial |
46,752 |
45,892 |
1.9% |
|||||||||
|
Total retail customers |
2,865,942 |
2,842,414 |
0.8% |
|||||||||
|
Net revenue ($ millions) |
1,524 |
1,488 |
2.4% |
2,899 |
2,898 |
- |
||||||
|
As-reported non-fuel O&M per MWh |
$20.80 |
$22.35 |
(6.9%) |
$19.69 |
$21.26 |
(7.4%) |
||||||
|
Operational non-fuel O&M per MWh |
$20.80 |
$22.35 |
(6.9%) |
$19.69 |
$21.26 |
(7.4%) |
||||||
See appendix in the webcast slide presentation for information on select regulatory cases.
D: EWC Financial and Operational Measures
Appendix D-1 provides a comparative summary of EWC operational adjusted earnings before interest, taxes, depreciation and amortization.
|
Appendix D-1: EWC Operational Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures | ||||||
|
Second Quarter and Year-to-Date 2016 vs. 2015 | ||||||
|
($ in millions) |
Second Quarter |
Year-to-Date | ||||
|
2016 |
2015 |
Change |
2016 |
2015 |
Change | |
|
Net income |
251 |
(4) |
255 |
330 |
120 |
210 |
|
Add back: interest expense |
6 |
6 |
- |
13 |
12 |
1 |
|
Add back: income tax expense |
(235) |
(3) |
(232) |
(183) |
67 |
(250) |
|
Add back: depreciation and amortization |
46 |
64 |
(18) |
102 |
126 |
(24) |
|
Subtract: interest and investment income |
34 |
36 |
(2) |
60 |
86 |
(26) |
|
Add back: decommissioning expense |
39 |
33 |
6 |
70 |
68 |
2 |
|
Adjusted EBITDA |
73 |
60 |
13 |
272 |
307 |
(35) |
|
Add back pre-tax special items for: |
||||||
|
Decisions to close VY, FitzPatrick and Pilgrim |
19 |
2 |
17 |
39 |
9 |
30 |
|
DOE litigation awards for VY and FitzPatrick |
(34) |
- |
(34) |
(34) |
- |
(34) |
|
Operational adjusted EBITDA |
58 |
62 |
(4) |
277 |
315 |
(39) |
|
Totals may not foot due to rounding |
Appendix D-2 provides a comparative summary of EWC operational performance measures.
|
Appendix D-2: EWC Operational Performance Measures | ||||||||
|
Second Quarter and Year-to-Date 2016 vs. 2015 (See Appendix G for reconciliation of GAAP to non-GAAP measures) | ||||||||
|
Second Quarter |
Year-to-Date | |||||||
|
2016 |
2015 |
% Change |
2016 |
2015 |
% Change | |||
|
Owned capacity (MW) (m) |
4,880 |
5,463 |
(10.7%) |
4,880 |
5,463 |
(10.7%) | ||
|
GWh billed |
7,866 |
9,578 |
(17.9%) |
17,112 |
19,170 |
(10.7%) | ||
|
As-reported average total revenue per MWh |
$43.74 |
$45.87 |
(4.6%) |
$50.62 |
$56.44 |
(10.3%) | ||
|
Adjusted average total revenue per MWh |
$43.32 |
$45.47 |
(4.7%) |
$50.22 |
$56.04 |
(10.4%) | ||
|
Net revenue ($ millions) |
293 |
350 |
(16.3%) |
759 |
877 |
(13.5%) | ||
|
As-reported non-fuel O&M per MWh |
$23.50 |
$25.97 |
(9.5%) |
$24.39 |
$25.93 |
(5.9%) | ||
|
Operational non-fuel O&M per MWh |
$26.38 |
$25.80 |
2.2% |
$25.04 |
$25.46 |
(1.6%) | ||
|
EWC Nuclear Fleet |
||||||||
|
Capacity factor |
76% |
89% |
(14.6%) |
83% |
89% |
(6.7%) | ||
|
GWh billed |
7,308 |
8,555 |
(14.6%) |
15,996 |
17,173 |
(6.9%) | ||
|
As-reported average total revenue per MWh |
$43.52 |
$45.84 |
(5.1%) |
$51.07 |
$55.85 |
(8.6%) | ||
|
Adjusted average total revenue per MWh |
$43.06 |
$45.40 |
(5.2%) |
$50.65 |
$55.41 |
(8.6%) | ||
|
Production cost per MWh |
$23.06 |
$26.21 |
(12.0%) |
$22.44 |
$25.91 |
(13.4%) | ||
|
Net revenue ($ millions) |
290 |
336 |
(13.7%) |
754 |
847 |
(11.0%) | ||
|
Refueling outage days |
||||||||
|
Indian Point 2 |
77 |
- |
102 |
- |
||||
|
Indian Point 3 |
- |
- |
- |
23 |
||||
|
Pilgrim |
- |
34 |
- |
34 |
||||
|
(m) |
Second quarter and year-to-date 2016 exclude RISEC (583 MW) that was sold in December 2015. |
See appendix in the webcast slide presentation for EWC hedging and price disclosures.
E: Consolidated Financial Performance Measures
Appendix E provides comparative financial performance measures for the current quarter. Financial performance measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP measures.
As-reported measures are computed in accordance with GAAP as they include all components of net income, including special items. Operational measures are non-GAAP measures as they are calculated using operational net income, which excludes the impact of special items.
|
Appendix E: GAAP and Non-GAAP Financial Performance Measures | ||||
|
Second Quarter 2016 vs. 2015 (See Appendix G for reconciliation of GAAP to non-GAAP measures) | ||||
|
For 12 months ending June 30 |
2016 |
2015 |
Change | |
|
GAAP Measures |
||||
|
ROIC - as-reported |
2.4% |
5.0% |
(2.6%) | |
|
ROE - as-reported |
1.7% |
7.9% |
(6.2%) | |
|
Book value per share |
$54.54 |
$56.58 |
($2.04) | |
|
End of period shares outstanding (millions) |
178.9 |
179.5 |
(0.6) | |
|
Non-GAAP Measures |
||||
|
ROIC - operational |
7.5% |
5.4% |
2.1% | |
|
ROE - operational |
14.3% |
8.8% |
5.5% | |
|
As of June 30 ($ in millions) |
||||
|
GAAP Measures |
||||
|
Cash and cash equivalents |
996 |
910 |
86 | |
|
Revolver capacity |
4,173 |
4,158 |
15 | |
|
Commercial paper outstanding |
853 |
895 |
(42) | |
|
Total debt |
14,837 |
13,858 |
979 | |
|
Securitization debt |
716 |
734 |
(18) | |
|
Debt to capital ratio |
59.6% |
57.0% |
2.6% | |
|
Off-balance sheet liabilities: |
||||
|
Debt of joint ventures - Entergy's share |
76 |
80 |
(4) | |
|
Leases - Entergy's share |
359 |
422 |
(63) | |
|
Power purchase agreements accounted for as leases |
195 |
224 |
(29) | |
|
Total off-balance sheet liabilities |
630 |
726 |
(96) | |
|
Non-GAAP Measures |
||||
|
Debt to capital ratio, excluding securitization debt |
58.4% |
55.6% |
2.8% | |
|
Gross liquidity |
5,169 |
5,068 |
101 | |
|
Net debt to net capital ratio, excluding securitization debt |
56.6% |
53.9% |
2.7% | |
|
Parent debt to total debt ratio, excluding securitization debt |
19.1% |
20.3% |
(1.2%) | |
|
Debt to operational adjusted EBITDA, excluding securitization debt |
4.4x |
3.9x |
0.5x | |
|
Operational FFO to debt ratio, excluding securitization debt |
21.1% |
28.4% |
(7.3%) | |
F: Definitions, Abbreviations and Acronyms
Appendix F-1 provides definitions of certain operational performance measures, as well as GAAP and non-GAAP financial measures. Non-GAAP measures provide metrics that remove the effect of financial events that are not routine from commonly used financial metrics.
|
Appendix F-1: Definitions | ||
|
Utility Operational Performance Measures | ||
|
GWh billed |
Total number of GWh billed to all retail and wholesale customers | |
|
Net revenue |
Operating revenue less fuel, fuel related expenses and gas purchased for resale, purchased power and other regulatory charges (credits) - net | |
|
Non-fuel O&M |
Operation and maintenance expenses excluding fuel, fuel-related expenses and gas purchased for resale and purchased power | |
|
Non-fuel O&M per MWh |
Non-fuel O&M per MWh of billed sales | |
|
Number of retail customers |
Number of customers at end of period | |
|
EWC Operational Performance Measures | ||
|
As-reported average total revenue per MWh |
As-reported revenue per MWh billed (does not include revenue from investments in wind generation that is accounted for under the equity method of accounting) | |
|
Adjusted average total revenue per MWh |
As-reported average total revenue per MWh, excluding revenue from the amortization of the Palisades below-market PPA | |
|
Average revenue under contract per kW-month (applies to capacity contracts only) |
Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and/or auction awards | |
|
Average revenue per MWh on contracted volumes |
Revenue on a per unit basis at which generation output reflected in contracts is expected to be sold to third parties (including offsetting positions) at the minimum contract prices and at forward market prices at a point in time, given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market PPA for Palisades; revenue will fluctuate due to factors including market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at the time of option expiration, costs to convert firm LD to unit-contingent and other risk management costs | |
|
Bundled capacity and energy contracts |
A contract for the sale of installed capacity and related energy, priced per MWh sold | |
|
Capacity contracts |
A contract for the sale of the installed capacity product in regional markets managed by ISO-NE, the NYISO and MISO | |
|
Capacity factor |
Normalized percentage of the period that the nuclear plants generate power | |
|
Expected sold and market total revenue per MWh |
Total energy and capacity revenue on a per unit basis at which total planned generation output and capacity is expected to be sold given contract terms and market prices at a point in time, including estimates for market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at time of option expiration, costs to convert Firm LD to unit-contingent and other risk management costs, divided by total planned MWh of generation, excluding the revenue associated with the amortization of the Palisades below-market PPA | |
|
Firm LD |
Transaction that requires receipt or delivery of energy at a specified delivery point (usually at a market hub not associated with a specific asset) or settles financially on notional quantities; if a party fails to deliver or receive energy, defaulting party must compensate the other party as specified in the contract; a portion of which may be capped through the use of risk management products | |
|
GWh billed |
Total number of GWh billed to customers and financially-settled instruments (does not include amounts from investments in wind generation that are accounted for under the equity method of accounting) | |
|
Appendix F-1: Definitions | ||
|
EWC Operational Performance Measures (continued) | ||
|
Net revenue |
Operating revenue less fuel, fuel related expenses and purchased power | |
|
Non-fuel O&M |
Operation and maintenance expenses excluding fuel, fuel-related expenses and gas purchased for resale, purchased power (does not include amounts from investments in wind generation that are accounted for under the equity method of accounting) | |
|
Non-fuel O&M per MWh |
Non-fuel O&M per MWh billed | |
|
Offsetting positions |
Transactions for the purchase of energy, generally to offset a Firm LD transaction | |
|
Owned capacity (MW) |
Installed capacity owned and operated by EWC, including investments in wind generation accounted for under the equity method of accounting; RISEC (non-nuclear) was sold on Dec. 17, 2015 | |
|
Percent of capacity sold forward |
Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions | |
|
Percent of planned generation under contract |
Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts or options that mitigate price uncertainty that may or may not require regulatory approval or approval of transmission rights or other conditions precedent; positions that are no longer classified as hedges are netted in the planned generation under contract | |
|
Planned net MW in operation |
Amount of installed capacity to generate power and/or sell capacity, assuming intent to shutdown Pilgrim on May 31, 2019 and FitzPatrick on Jan. 27, 2017 | |
|
Planned TWh of generation |
Amount of output expected to be generated by EWC resources considering plant operating characteristics and outage schedules, assuming intent to shutdown Pilgrim on May 31, 2019 and FitzPatrick on Jan. 27, 2017, uninterrupted normal plant operation and timely renewal of plant operating licenses at IPEC | |
|
Production cost per MWh |
Fuel and non-fuel O&M expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation), excluding special items | |
|
Refueling outage days |
Number of days lost for scheduled refueling outage during the period | |
|
Unit-contingent |
Transaction under which power is supplied from a specific generation asset; if the asset is on operational outage, seller is generally not liable to buyer for any damages, unless the contract specifies certain conditions such as an availability guarantee | |
|
Financial Measures – GAAP | ||
|
Book value per share |
End of period common equity divided by end of period shares outstanding | |
|
Debt of joint ventures - Entergy's share |
Entergy's share of debt issued by business joint ventures at EWC | |
|
Debt to capital ratio |
Total debt divided by total capitalization | |
|
Leases - Entergy's share |
Operating leases held by subsidiaries capitalized at implicit interest rate | |
|
Revolver capacity |
Amount of undrawn capacity remaining on corporate and subsidiary revolvers, including Entergy Nuclear Vermont Yankee | |
|
ROIC - as-reported |
12-months rolling net income attributable to Entergy Corp. adjusted for preferred dividends and tax-effected interest expense divided by average invested capital | |
|
ROE - as-reported |
12-months rolling net income attributable to Entergy Corp. divided by average common equity | |
|
Securitization debt |
Debt associated with securitization bonds issued to recover storm costs from hurricanes Rita, Ike and Gustav at ETI and Hurricane Isaac at ENOI; the 2009 ice storm at EAI and investment recovery of costs associated with the cancelled Little Gypsy repowering project at ELL | |
|
Total debt |
Sum of short-term and long-term debt, notes payable and commercial paper and capital leases on the balance sheet | |
|
Appendix F-1: Definitions | |
|
Financial Measures - Non-GAAP | |
|
Adjusted EBITDA |
Earnings before interest, depreciation and amortization and income taxes excluding decommissioning expense; for Entergy consolidated, also excludes AFUDC-equity funds and subtracts securitization proceeds |
|
Adjusted EPS |
As-reported EPS excluding special items and weather and normalizing for income tax |
|
Debt to capital ratio, excluding securitization debt |
Total debt divided by total capitalization, excluding securitization debt |
|
Debt to EBITDA |
End of period total debt excluding securitization debt divided by 12-months rolling operational adjusted EBITDA |
|
FFO |
Net cash flow provided by operations less AFUDC-borrowed funds, working capital items in operating cash flow (receivables, fuel inventory, accounts payable, prepaid taxes and taxes accrued, interest accrued and other working capital accounts) and securitization regulatory charge |
|
FFO to debt |
12-months rolling operational FFO as a percentage of end of period total debt excluding securitization debt |
|
Gross liquidity |
Sum of cash and revolver capacity |
|
Operational adjusted EBITDA |
Adjusted EBITDA excluding effects of special items |
|
Operational EPS |
As-reported EPS adjusted to exclude the impact of special items |
|
Operational FFO |
FFO excluding effects of special items |
|
Parent debt to total debt |
End of period Entergy Corporation debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of total debt excluding securitization debt |
|
Net debt to net capital ratio, excluding securitization debt |
Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt |
|
ROIC - operational |
12-months rolling operational net income attributable to Entergy Corp. adjusted for preferred dividends and tax-effected interest expense divided by average invested capital |
|
ROE - operational |
12-months rolling operational net income attributable to Entergy Corp. divided by average common equity |
Appendix F-2 explains abbreviations and acronyms used in the quarterly earnings materials.
|
Appendix F-2: Abbreviations and Acronyms | |||
|
AFUDC- borrowed funds |
Allowance for borrowed funds used during Construction |
LTM |
Last twelve months |
|
MISO |
Midcontinent Independent System Operator, Inc. | ||
|
AFUDC- equity funds |
Allowance for equity funds used during Construction |
MPSC |
Mississippi Public Service Commission |
|
MTEP |
MISO Transmission Expansion Planning | ||
|
ADIT |
Accumulated deferred income taxes |
NEPOOL |
New England Power Pool |
|
ANO |
Arkansas Nuclear One (nuclear) |
Ninemile 6 |
Ninemile Point Unit 6 |
|
APSC |
Arkansas Public Service Commission |
NOAA |
National Oceanic and Atmosphere Administration |
|
BP |
Basis point |
Non-fuel O&M |
Non-fuel operation and maintenance expense |
|
CCGT |
Combined cycle gas turbine |
NRC |
Nuclear Regulatory Commission |
|
CCNO |
Council of the City of New Orleans, Louisiana |
NYISO |
New York Independent System Operator, Inc. |
|
COD |
Commercial operation date |
NYS |
New York State |
|
Cooper |
Cooper Nuclear Station |
NYSDEC
|
New York State Department of Environmental Conservation |
|
CT |
Simple cycle combustion turbine | ||
|
NYSDOS |
New York State Department of State | ||
|
CZM |
Coastal zone management |
NYSE |
New York Stock Exchange |
|
DCRF |
Distribution cost recovery factor |
||
|
DOE |
U.S. Department of Energy |
O&M |
Operation and maintenance expense |
|
EAI |
Entergy Arkansas, Inc. |
OCF |
Net cash flow provided by operating activities |
|
EBITDA |
Earnings before interest, income taxes, depreciation and amortization |
OPEB |
Other post-employment benefits |
|
EGSL |
Entergy Gulf States Louisiana, L.L.C. |
Palisades |
Palisades Power Plant (nuclear) |
|
ELL |
Entergy Louisiana, LLC |
Pilgrim |
Pilgrim Nuclear Power Station (nuclear) |
|
EMI |
Entergy Mississippi, Inc. |
PPA
|
Power purchase agreement or purchased power agreement |
|
ENOI |
Entergy New Orleans, Inc. | ||
|
PUCT |
Public Utility Commission of Texas | ||
|
ESI |
Entergy Services, Inc. |
RFP |
Request for proposal |
|
EPS |
Earnings per share |
||
|
ETI |
Entergy Texas, Inc. |
RISEC |
Rhode Island State Energy Center (CCGT) |
|
ETR |
Entergy Corporation |
ROE |
Return on equity |
|
EWC |
Entergy Wholesale Commodities |
ROIC |
Return on invested capital |
|
FCA |
Forward capacity auction |
ROS |
Rest of state |
|
FERC |
Federal Energy Regulatory Commission |
RPCE |
Rough production cost equalization |
|
FFO |
Funds from operations |
RSP |
Rate Stabilization Plan (ELL Gas) |
|
Firm LD |
Firm liquidated damages |
SEC |
U.S. Securities and Exchange Commission |
|
FitzPatrick |
James A. FitzPatrick Nuclear Power Plant (nuclear) |
SEMARI |
Southeast Massachusetts/Rhode Island |
|
FRP |
Formula rate plan |
SERI |
System Energy Resources, Inc. |
|
GAAP |
Generally accepted accounting principles |
SPDES |
State Pollutant Discharge Elimination System |
|
Grand Gulf |
Unit No. 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by System Energy |
||
|
HCM |
Human Capital Management program |
SPP |
Southwest Power Pool |
|
TCRF |
Transmission cost recovery factor | ||
|
Indian Point 2 |
Indian Point Energy Center Unit 2 (nuclear) |
Top Deer |
Top Deer Wind Ventures, LLC |
|
Indian Point 3 |
Indian Point Energy Center Unit 3 (nuclear) |
Union |
Union Power Station |
|
IPEC |
Indian Point Energy Center (nuclear) |
UP&O |
Utility, Parent & Other |
|
ISES |
Independence Steam Electric Station (coal) |
VY |
Vermont Yankee Nuclear Power Station (nuclear) |
|
ISO |
Independent system operator |
WACC |
Weighted-average cost of capital |
|
ISO-NE |
ISO New England |
WOTAB |
West of the Atchafalaya Basin |
|
LHV |
Lower Hudson Valley |
WQC |
Water Quality Certification |
|
LPSC |
Louisiana Public Service Commission |
YOY |
Year-over-year |
G: GAAP to Non-GAAP Reconciliations
Appendix G-1, Appendix G-2 and Appendix G-3 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure.
|
Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures - Utility and EWC Non-fuel O&M per MWh, EWC and EWC Nuclear Average Total Revenue per MWh | |||||
|
($ in thousands except where noted) |
Second Quarter |
Year-to-Date | |||
|
2016 |
2015 |
2016 |
2015 | ||
|
Utility |
|||||
|
As-reported Utility non-fuel O&M |
(A) |
614,820 |
642,538 |
1,161,402 |
1,226,839 |
|
Operational Utility non-fuel O&M |
(B) |
614,820 |
642,538 |
1,161,402 |
1,226,839 |
|
Utility billed sales (GWh) |
(C) |
29,555 |
28,745 |
58,998 |
57,708 |
|
As-reported Utility non-fuel O&M per MWh |
(A/C) |
20.80 |
22.35 |
19.69 |
21.26 |
|
Operational Utility non-fuel O&M per MWh |
(B/C) |
20.80 |
22.35 |
19.69 |
21.26 |
|
EWC |
|||||
|
As-reported EWC non-fuel O&M |
(D) |
184,820 |
248,738 |
417,285 |
497,063 |
|
Special Items included in non-fuel O&M: |
|||||
|
Decisions to close VY, FitzPatrick and Pilgrim |
11,104 |
1,579 |
22,625 |
9,068 | |
|
DOE litigation awards for VY and FitzPatrick |
(33,823) |
- |
(33,823) |
- | |
|
Total special items included in non-fuel O&M |
(E) |
(22,719) |
1,579 |
(11,198) |
9,068 |
|
Operational EWC non-fuel O&M |
(D-E) |
207,539 |
247,159 |
428,483 |
487,995 |
|
EWC billed sales (GWh) |
(F) |
7,866 |
9,578 |
17,112 |
19,170 |
|
As-reported EWC non-fuel O&M per MWh |
(D/F) |
23.50 |
25.97 |
24.39 |
25.93 |
|
Operational EWC non-fuel O&M per MWh |
[(D-E)/(F)] |
26.38 |
25.80 |
25.04 |
25.46 |
|
As-reported EWC operating revenue |
(G) |
344,110 |
439,306 |
866,189 |
1,081,896 |
|
Less Palisades below-market PPA amortization |
(H) |
3,364 |
3,800 |
6,728 |
7,600 |
|
Adjusted EWC operating revenue |
(G-H) |
340,746 |
435,506 |
859,461 |
1,074,296 |
|
As-reported EWC nuclear operating revenue |
(I) |
318,031 |
392,188 |
816,932 |
959,096 |
|
Less Palisades below-market PPA amortization |
(H) |
3,364 |
3,800 |
6,728 |
7,600 |
|
Adjusted EWC nuclear operating revenue |
(I-H) |
314,667 |
388,388 |
810,204 |
951,496 |
|
As-reported EWC average total revenue per MWh |
(G)/(F) |
43.74 |
45.87 |
50.62 |
56.44 |
|
Adjusted EWC average total revenue per MWh |
[(G-H)/(F)] |
43.32 |
45.47 |
50.22 |
56.04 |
|
EWC nuclear billed sales (GWh) |
(J) |
7,308 |
8,555 |
15,996 |
17,173 |
|
As-reported EWC nuclear average total revenue per MWh |
(I)/(J) |
43.52 |
45.84 |
51.07 |
55.85 |
|
Adjusted EWC nuclear average total revenue per MWh |
[(I-H)/(J)] |
43.06 |
45.40 |
50.65 |
55.41 |
|
Totals may not foot due to rounding |
|
Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures - ROE, ROIC Metrics | |||
|
($ in millions) |
Second Quarter | ||
|
2016 |
2015 | ||
|
As-reported net income attributable to Entergy Corporation, rolling 12 months |
(A) |
174 |
797 |
|
Preferred dividends |
21 |
20 | |
|
Tax effected interest expense |
404 |
391 | |
|
As-reported net income attributable to Entergy Corporation, rolling 12 months adjusted for preferred dividends and tax effected interest expense |
(B) |
599 |
1,208 |
|
Special items in prior quarters |
(1,260) |
(95) | |
|
Decisions to close VY, FitzPatrick and Pilgrim |
(12) |
(1) | |
|
DOE litigation awards for VY and FitzPatrick |
22 |
- | |
|
Total special items, rolling 12 months |
(C) |
(1,250) |
(95) |
|
Operational earnings, rolling 12 months adjusted for preferred dividends and tax effected interest expense |
(B-C) |
1,849 |
1,303 |
|
Operational earnings, rolling 12 months |
(A-C) |
1,424 |
892 |
|
Average invested capital |
(D) |
24,617 |
24,190 |
|
Average common equity |
(E) |
9,958 |
10,110 |
|
ROIC - as-reported |
(B/D) |
2.4% |
5.0% |
|
ROIC - operational |
[(B-C)/D] |
7.5% |
5.4% |
|
ROE - as-reported |
(A/E) |
1.7% |
7.9% |
|
ROE - operational |
[(A-C)/E] |
14.3% |
8.8% |
|
Totals may not foot due to rounding |
|
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures - Credit and Liquidity Metrics | |||
|
($ in millions) |
Second Quarter | ||
|
2016 |
2015 | ||
|
Total debt |
(A) |
14,837 |
13,858 |
|
Less securitization debt |
(B) |
716 |
734 |
|
Total debt, excluding securitization debt |
(C) |
14,121 |
13,124 |
|
Less cash and cash equivalents |
(D) |
996 |
910 |
|
Net debt, excluding securitization debt |
(E) |
13,125 |
12,214 |
|
Total capitalization |
(F) |
24,913 |
24,321 |
|
Less securitization debt |
(B) |
716 |
734 |
|
Total capitalization, excluding securitization debt |
(G) |
24,197 |
23,587 |
|
Less cash and cash equivalents |
(D) |
996 |
910 |
|
Net capital, excluding securitization debt |
(H) |
23,201 |
22,677 |
|
Debt to capital ratio |
(A/F) |
59.6% |
57.0% |
|
Debt to capital ratio, excluding securitization debt |
(C/G) |
58.4% |
55.6% |
|
Net debt to net capital ratio, excluding securitization debt |
(E/H) |
56.6% |
53.9% |
|
Revolver capacity |
(I) |
4,173 |
4,158 |
|
Gross liquidity |
(D+I) |
5,169 |
5,068 |
|
Entergy Corporation notes: |
|||
|
Due September 2015 |
- |
550 | |
|
Due January 2017 |
500 |
500 | |
|
Due September 2020 |
450 |
450 | |
|
Due July 2022 |
650 |
- | |
|
Total parent long-term debt |
(J) |
1,600 |
1,500 |
|
Revolver draw |
(K) |
240 |
271 |
|
Commercial paper |
(L) |
853 |
895 |
|
Total parent debt |
(J)+(K)+(L) |
2,693 |
2,666 |
|
Parent debt to total debt ratio, excluding securitization debt % |
[((J)+(K)+ (L))/(C)] |
19.1% |
20.3% |
|
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures - Credit and Liquidity Metrics (continued) | |||
|
($ in millions) |
Second Quarter | ||
|
2016 |
2015 | ||
|
Total debt |
(A) |
14,837 |
13,858 |
|
Less securitization debt |
(B) |
716 |
734 |
|
Total debt, excluding securitization debt |
(C) |
14,121 |
13,124 |
|
As-reported consolidated net income, rolling 12 months |
194 |
817 | |
|
Add back: interest expense, rolling 12 months |
658 |
636 | |
|
Add back: income tax expense, rolling 12 months |
(1,002) |
494 | |
|
Add back: depreciation and amortization, rolling 12 months |
1,335 |
1,331 | |
|
Add back: regulatory charges (credits), rolling 12 months |
185 |
10 | |
|
Subtract: securitization proceeds, rolling 12 months |
137 |
130 | |
|
Subtract: interest and investment income, rolling 12 months |
158 |
196 | |
|
Subtract: AFUDC-equity funds, rolling 12 months |
61 |
59 | |
|
Add back: decommissioning expense, rolling 12 months |
287 |
278 | |
|
Adjusted EBITDA, rolling 12 months |
(D) |
1,301 |
3,181 |
|
Add back: special item for HCM implementation expenses, rolling 12 months (pre-tax) |
- |
4 | |
|
Add back: special item resulting from decisions to close VY, FitzPatrick and Pilgrim, rolling 12 months (pre-tax) |
1,688 |
143 | |
|
Add back: special item for DOE litigation awards for VY and FitzPatrick |
(34) |
- | |
|
Add back: special item for Palisades asset impairment and related write-offs, rolling 12 months (pre-tax) |
396 |
- | |
|
Add back: special item for Top Deer investment impairment, rolling 12 months (pre-tax) |
37 |
- | |
|
Add back: special item for gain on the sale of RISEC, rolling 12 months (pre-tax) |
(154) |
- | |
|
Operational adjusted EBITDA, rolling 12 months |
(E) |
3,234 |
3,328 |
|
Debt to operational adjusted EBITDA, excluding securitization debt |
(C)/(E) |
4.4 |
3.9 |
|
Net cash flow provided by operating activities, rolling 12 months |
(F) |
3,205 |
3,699 |
|
AFUDC-borrowed funds used during construction, rolling 12 months |
(G) |
(31) |
(30) |
|
Working capital items in net cash flow provided by operating activities, rolling 12 months: |
|||
|
Receivables |
81 |
45 | |
|
Fuel inventory |
1 |
(32) | |
|
Accounts payable |
15 |
(164) | |
|
Prepaid taxes and taxes accrued |
108 |
(43) | |
|
Interest accrued |
(2) |
5 | |
|
Other working capital accounts |
(111) |
104 | |
|
Securitization regulatory charge |
107 |
99 | |
|
Total |
(H) |
199 |
14 |
|
FFO, rolling 12 months |
(F)+(G)-(H) |
2,975 |
3,655 |
|
Add back: special item for HCM implementation expenses, rolling 12 months (pre-tax) |
- |
15 | |
|
Add back: special item resulting from decisions to close VY, FitzPatrick and Pilgrim, rolling 12 months (pre-tax) |
6 |
57 | |
|
Operational FFO, rolling 12 months |
(I) |
2,981 |
3,727 |
|
Operational FFO to debt ratio, excluding securitization debt |
(I)/(C) |
21.1% |
28.4% |
|
Totals may not foot due to rounding |
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SOURCE Entergy Corporation
Article Date
8/2/20167/29/2016 - Entergy Declares Dividend
Entergy Declares Dividend
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, July 29, 2016 /PRNewswire/ -- The Board of Directors of Entergy Corporation (NYSE:ETR) has declared a quarterly dividend of $0.85 per common share. The payment date is September 1, 2016, to stockholders of record on August 11, 2016.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
Online address: Entergy.com
Twitter: @Entergy
Facebook: www.facebook.com/entergy
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SOURCE Entergy Corporation
Article Date
7/29/2016Entergy Announces Second Quarter Earnings Conference Call
Source: PR Newswire
NEW ORLEANS, July 26, 2016 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) will report second quarter earnings results before market open on Tuesday, August 2, 2016, and host a teleconference at 10 a.m. CT that day to discuss the earnings announcement and the company's financial performance. The teleconference may be accessed by dialing 855-893-9849, conference ID 85416349, no more than 15 minutes prior to the start of the call or by visiting Entergy's website at entergy.com. From time to time, Entergy posts new and/or revised materials on its website and on social media, and anticipates doing so in connection with this event. The presentation slides will be available on Entergy's website and the Entergy Investor Relations mobile web app at iretr.com before market open on the day of the call. A replay of the teleconference will be available until August 9, 2016, by dialing 855-859-2056, confirmation ID 85416349.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
Additional investor information can be accessed at www.entergy.com/investor_relations
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SOURCE Entergy Corporation
Article Date
7/26/20167/13/2016 - Entergy in Discussions for the Potential Sale of the James A. FitzPatrick Nuclear Power Plant to Exelon
Entergy in Discussions for the Potential Sale of the James A. FitzPatrick Nuclear Power Plant to Exelon
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
SCRIBA, N.Y., July 13, 2016 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) announced today that it is in discussions with Exelon Corporation (NYSE: EXC) for the potential sale of the James A. FitzPatrick Nuclear Power Plant in Scriba, NY.
The discussions with Exelon are consistent with Entergy's commitment to consider any viable option that would allow FitzPatrick to remain in operation. Entergy announced in November 2015 that it planned to shut down and decommission the FitzPatrick plant, later setting the timing to cease operations as late January 2017.
"In keeping with our corporate strategy to move away from merchant power and toward a pure-play utility, we are working with Exelon to come to commercial terms on a sale transaction that depends largely on the final terms and timeliness of the New York State Clean Energy Standard," said Entergy Wholesale Commodities President Bill Mohl. "We thank New York Governor Andrew Cuomo for his leadership in promoting the Clean Energy Standard, which provides incentives for financially strapped nuclear power plants."
In addition to the Clean Energy Standard, any transaction between Entergy and Exelon would be subject to completion of definitive commercial agreements, including conditions, as well as regulatory approvals.
If discussions between Entergy and Exelon do not result in an agreement for the sale and transfer of ownership of FitzPatrick, Entergy will move forward with its current plan to cease operations, followed by decommissioning.
"Our focus remains on providing employees and the community the best opportunity we can to prepare for either a transition to a new owner or a shutdown and decommissioning," said Brian Sullivan, site vice president and Entergy's top official at FitzPatrick.
Entergy's discussions with Exelon provide the opportunity for a potentially different outcome for FitzPatrick, and therefore require the plant to proceed along two parallel paths: preparing for the plant's permanent shutdown and decommissioning under the current plan, while also preparing for a possible refueling and continued operation in the event of a sale.
Negotiations with Exelon are ongoing, with a target for completion in mid-August, therefore Entergy said it cannot yet describe the material terms of any definitive agreement that it may enter into with Exelon.
About FitzPatrick and Entergy
The FitzPatrick Nuclear Power Plant generates 838 megawatts of nearly carbon-free electricity, enough to power more than 800,000 homes. Additional information regarding today's announcement is available at www.entergy.com and www.FitzPatrickPower.com/Operational-Update.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
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, Entergy's plans and expectations with respect to a potential sale of FitzPatrick or the future operations of the plant, and other statements of Entergy's plans, beliefs or expectations included in 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) nuclear plant operating and regulatory risks; (c) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (d) risks and uncertainties associated with strategic transactions that Entergy or its subsidiaries may undertake, including 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 and (e) economic conditions and conditions in commodity and capital markets during the periods covered by the forward-looking statements.
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SOURCE Entergy Corporation
Article Date
7/13/2016Entergy Nuclear Names New Leaders for Strategic Site and Fleet Support and Oversight
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
JACKSON, Miss., June 28, 2016 /PRNewswire/ -- Entergy Chief Nuclear Officer Chris Bakken has announced that Larry Coyle, Indian Point Energy Center site vice president, has been named chief operating officer to work alongside COOs Donna Jacobs and John Ventosa. These leaders are responsible for the strategic direction, support and oversight of the company's national fleet of 11 reactors in nine locations.
In other facility moves, Tony Vitale, currently site vice president for Palisades Power Plant in Michigan, was named site vice president for Indian Point Energy Center in New York, and Charlie Arnone, interim vice president of operations support, was named site vice president for Palisades. Coyle, Vitale and Arnone begin their new roles in August.
"We recognize that we face significant challenges at our sites, across the fleet and industry," Bakken said. "These organizational changes are a part of our nuclear sustainability plan aimed at improving fleet performance."
Coyle joined Entergy in 2011 as general manager of plant operations at Indian Point. In 2013, he was named site vice president at FitzPatrick, and has led the team at Indian Point for the last 18 months. He has more than 33 years of commercial nuclear power experience.
He began his nuclear career with Exelon at Dresden Nuclear Power Station and held various positions increasing in responsibility including main control room supervisor, shift manager, mechanical maintenance manager and work management director. During his tenure at Dresden, he served as an operations peer evaluator for the Institute of Nuclear Power Operations.
Following his work at Dresden, Coyle served as operations director at LaSalle Nuclear Power Station. He then accepted the maintenance director position for Braidwood Nuclear Power Station, and was subsequently promoted to plant manager.
Vitale began his career as maintenance engineer at Indian Point. Throughout his 33 year nuclear career, Vitale has held a number of positions with increasing responsibility, including various maintenance, engineering and operations supervisory and management roles before becoming general manager plant operations in 2007. In 2011, he accepted the leadership role at Palisades.
Arnone began his nuclear career 31 years ago after eight years in the U.S. Navy Nuclear Power program. He has extensive operations experience as a licensed reactor operator and senior reactor operator.
"I am pleased that Larry, Tony and Charlie have agreed to step into these key fleet and site assignments," Bakken said. "They will have the responsibility for the safe, secure and reliable operations of their respective facilities and will be involved with local communities, take an active role in the industry and partner with our employees as we strive to be one of the best nuclear operators in the world."
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
http://entergy.com
Twitter: @entergy; @entergynuclear
Facebook: www.facebook.com/entergy or entergy nuclear
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SOURCE Entergy Corporation
Article Date
6/28/20166/27/2016 - Entergy Identifies and Stops Flow of Lubricating Oil at its James A. FitzPatrick Nuclear Power Plant
Entergy Identifies and Stops Flow of Lubricating Oil at its James A. FitzPatrick Nuclear Power Plant
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
SCRIBA, N.Y., June 27, 2016 /PRNewswire/ -- This morning, Entergy personnel at its James A. FitzPatrick Nuclear Power Plant in Scriba, NY, identified the source of oil released to the site's discharge canal on Sunday and stopped the flow.
While this oil contains no PCBs, is non-radioactive, non-hazardous and has low potential health effects, any unintended release to Lake Ontario is not in accordance with Entergy's standards.
A preliminary investigation has determined a tank that stores lubrication oil overfilled due to an apparent equipment failure. A pipe that acts as an air vent from the tank exits onto a building roof. Excess oil flowed through the vent pipe and pooled on the roof, then apparently migrated to a roof drain and eventually into Lake Ontario.
Equipment that discharges water to the lake has been turned off, and there is no apparent ongoing release of oil.
"We are taking appropriate actions to mitigate the environmental consequence from this event and working closely with appropriate local, state and federal agencies," said Brian Sullivan, FitzPatrick's site vice president and Entergy's top official at the site. "We have identified the source of the oil, stopped the leak and put protective absorbent material and barriers in place to help mitigate additional oil from reaching the lake. Environmental protection is a hallmark of our operations, and we are taking all appropriate actions."
Site personnel and environmental contractors are cleaning up the lubricating oil from the building and working within the discharge canal to absorb and contain any oil that reached the canal, which flows to Lake Ontario.
FitzPatrick nuclear power plant has been shut down since Friday afternoon, when control room operators removed the unit from service following a loss of power supply affecting water pumps at the plant.
About Entergy
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
Entergy's online address is www.entergy.com.
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SOURCE Entergy Corporation
Article Date
6/27/2016Indian Point Unit 2 Returns to Service after $120 Million Refueling, Comprehensive Bolt Replacement, Hundreds of Inspections, Upgrades and Maintenance to Continue Providing Clean Power Safely and Reliably
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BUCHANAN, N.Y., June 17, 2016 /PRNewswire/ -- Entergy's Indian Point Unit 2 nuclear power plant has returned to service following its successful scheduled $120 million refueling outage and comprehensive inspection and upgrade of plant equipment and systems. Control room operators returned Unit 2 to operation Thursday night, sending electricity to the grid after a planned shutdown that began March 7.
"We will make the significant investments required to meet our commitment to ensuring safe and reliable generation of clean electricity," said Larry Coyle, site vice president and Entergy's top official at Indian Point.
Among the items included in previously scheduled inspections were bolts on a removable liner inside the reactor. Engineers replaced 278 bolts. Inspections confirmed that the plates secured by these bolts were not damaged and remained structurally sound and capable of performing their safety function while Unit 2 was in operation.
"Nearly 2,000 professionals, including 1,000 specialist contractors, performed hundreds of activities that can only occur while the unit was shut down," said Coyle. "More than 900,000 person-hours of work were performed over the last three months to prepare Indian Point for continuous, safe operation well into the future."
Both the inspection and replacement of bolts were successful, and the U.S. Nuclear Regulatory Commission has noted there are no safety concerns. Entergy will conduct a separate bolt inspection program at Unit 3 early next year.
During the outage at Unit 2, Entergy completed an additional significant equipment enhancement to provide another layer of safety redundancy to the plant's many cooling systems.
"The levels of back-up safety protections now installed at Indian Point are unprecedented and, while unlikely ever to be needed, they make the facility safer than ever," added Coyle.
Unit 2 set a plant-specific record at 627 continuous days of operation since returning to service from its prior refueling and maintenance outage in March 2014. Unit 2 was online generating electricity more than 99 percent of the time during that period.
Indian Point's other operating unit, Unit 3, has been online providing electricity continuously for the past 184 days.
Video showing some of the work performed during the outage can be viewed on Indian Point's YouTube page at https://youtu.be/k_Ohd8eWIbA.
About Indian Point and Entergy
Indian Point Energy Center, in Buchanan, N.Y., is home to two operating nuclear power plants, unit 2 and unit 3, which generate approximately 2000 megawatts of electricity for homes, business and public facilities in New York City and Westchester County.
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
Indian Point Energy Center's online address is www.safesecurevital.com.
Entergy's online address is www.entergy.com.
Twitter: @Indian_Point
Facebook: Facebook.com/IndianPointEnergy
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SOURCE Entergy Corporation
Article Date
6/17/2016Entergy Louisiana to Provide 75 Megawatts of Power to Two Chemical Plants
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BATON ROUGE, La., June 8, 2016 /PRNewswire/ -- Entergy Louisiana, LLC has entered into two agreements to supply power to LACC, LLC and Lotte Chemical Louisiana LLC facilities in southwest Louisiana.
Under the contract, Entergy Louisiana could supply up to 30 megawatts of power monthly to LACC's ethylene cracker facility, as well as 45 megawatts of power to Lotte's mono-ethylene glycol (MEG) plant. Both chemical plants will be located on the same piece of property in Lake Charles.
"Entergy Louisiana is proud to partner with LACC and Lotte to power these state-of-the-art facilities," said Phillip May, Entergy Louisiana president and CEO. "With our largest single transmission project in Entergy history currently under construction in the Lake Charles area, this region literally has the power to grow."
LACC is a joint venture between Axiall Corporation, based in Atlanta, Georgia, and Lotte Chemical Corporation of South Korea. Both companies are recognized in the chemistry sector for their cutting-edge and ethical approach to operations.
When the LACC plant begins operations in late 2018, it will produce one million metric tons of ethylene per year. Upon completion of the MEG plant, Lotte plans to export more than 600 kilotons per year to customers abroad. The projects are a combined $3 billion investment.
According to Louisiana Economic Development (LED) the projects will create 215 new direct jobs, with the ethane cracker producing 135 new direct jobs with an average annual salary of $75,500, plus benefits. The MEG facility is expected to produce 80 new direct jobs with an average annual salary of $87,000, plus benefits. LED estimates the combined projects will result in 1,892 new indirect jobs, for a total of more than 2,100 new jobs in Southwest Louisiana. In addition, Axiall will retain 1,600 existing workers in the Lake Charles area, and the company estimates 2,000 construction jobs will be created at peak building activity for the new plants.
The latest contracts emphasize Entergy's ongoing execution of its business strategy to grow the utility by investing capital in ways that benefit customers, including meeting economic development and other growth needs.
"These are large projects that are helping to fuel the economic success of the southwestern Louisiana Gulf Coast region," May said. "They are just two of the reasons why we are investing $159 million in the Lake Charles Transmission Project to provide 25 miles of high-voltage transmission lines and the facilities needed to support them."
Entergy's economic development efforts are a prime example of Entergy's vision statement "We power life."
"Entergy Louisiana provides safe, reliable and affordable power that industrial customers can count on. In addition, Louisiana's highly skilled workforce and world-class intermodal infrastructure makes it an ideal location for industrial process manufacturing companies to successfully compete in the global market," said Ed Jimenez, Entergy Louisiana business and economic development director. "We welcome LACC and Lotte to southeast Louisiana and look forward to serving them as customers and as business partners."
Entergy Louisiana provides electric service to more than one million customers and natural gas service to nearly 93,000 customers in the greater Baton Rouge area. With operations in southern, central and northeastern Louisiana, the company is a subsidiary of Entergy Corporation.
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
entergylouisiana.com
facebook.com/EntergyLA
Twitter: @EntergyLA
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SOURCE Entergy Louisiana, LLC
Article Date
6/8/20166/1/2016 - Entergy Corporation to Host 2016 Analyst Day
Entergy Corporation to Host 2016 Analyst Day
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, June 1, 2016 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) will host its 2016 Analyst Day in New York City on Thursday, June 9, 2016. The event will feature presentations by Chairman and Chief Executive Officer Leo Denault and members of Entergy's executive management team.
The business session will take place from 12:30 pm to approximately 4:00 p.m. ET. A live webcast of the meeting can be accessed on the Investor Relations section of Entergy's corporate website at www.entergy.com. Presentation slides will be made available on the Investor Relations section of Entergy's website and the Entergy Investor Relations mobile web app at iretr.com after market close on Wednesday, June 8, 2016. Please note that printed materials will not be provided at the event. A replay of the webcast will also be available on the website.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
Additional investor information can be accessed at www.entergy.com/investor_relations
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SOURCE Entergy Corporation
Article Date
6/1/20165/13/2016 - Entergy Mississippi, Inc. Announces Redemption of First Mortgage Bonds, 6% Series due November 1, 2032
Entergy Mississippi, Inc. Announces Redemption of First Mortgage Bonds, 6% Series due November 1, 2032
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, May 13, 2016 /PRNewswire/ -- Entergy Mississippi, Inc. announced today that on June 13, 2016 (the "Redemption Date"), it will redeem all of its outstanding First Mortgage Bonds, 6% Series due November 1, 2032, in the amount of $75,000,000 (the "Bonds"), at the redemption price of 100 percent of the principal amount thereof (the "Redemption Price") plus accrued interest thereon to but excluding the Redemption Date. The Bonds are listed on the New York Stock Exchange and trade under the symbol EMQ.
On the Redemption Date, provided that the trustee has received sufficient funds to complete the redemption, the Redemption Price, together with accrued interest to but excluding the Redemption Date, shall become due and payable on each Bond, and on and after the Redemption Date, the Bonds shall cease to bear interest. Payment of the Redemption Price and accrued interest will be made on or after the Redemption Date upon presentation and surrender of the Bonds to The Bank of New York Mellon, Bondmaster Ops – Syracuse – Vault, 111 Sanders Creek Parkway, East Syracuse, New York 13057.
Entergy Mississippi, Inc. provides electricity to approximately 445,000 customers in 45 counties. It is a subsidiary of Entergy Corporation. Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of more than $11.5 billion and more than 13,000 employees.
Entergy's online address is entergy.com
Twitter: @entergy
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SOURCE Entergy Mississippi, Inc.
Article Date
5/13/20164/26/2016 - Entergy Reports First Quarter Earnings
Entergy Reports First Quarter Earnings
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, April 26, 2016 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported first quarter 2016 earnings per share of $1.28 on an as-reported basis and $1.35 on an operational basis.
"This quarter was a good start to another important year for Entergy. Given the challenges and opportunities ahead, we are confident that we can deliver on our 2016 earnings commitments as well as our Adjusted Utility, Parent & Other long-term outlook," said Entergy chairman and chief executive officer Leo Denault. "We accomplished what we set out to do, including the acquisition of the Union Power Station and the finalization of Entergy Arkansas' rate case. In the quarter we also had industrial sales growth of over six percent. Our results are the outcome of the strategy we have been pursuing for some time to create sustainable value for all our stakeholders in 2016 and beyond."
Business highlights included the following:
|
Consolidated Earnings (GAAP and Non-GAAP measures) | |||
|
First Quarter 2016 vs. 2015 (See Appendix A for reconciliation of GAAP to non-GAAP measures) | |||
|
First Quarter | |||
|
2016 |
2015 |
Change | |
|
As-Reported Earnings ($ in millions) |
230.0 |
298.1 |
(68.1) |
|
Less Special Items |
(12.9) |
(4.6) |
(8.3) |
|
Operational Earnings |
242.8 |
302.7 |
(59.9) |
|
Weather Impact |
(25.4) |
14.3 |
(39.7) |
|
As-Reported Earnings (per share in $) |
1.28 |
1.65 |
(0.37) |
|
Less: Special Items |
(0.07) |
(0.03) |
(0.04) |
|
Operational Earnings |
1.35 |
1.68 |
(0.33) |
|
Weather Impact |
(0.14) |
0.08 |
(0.22) |
|
Totals may not foot due to rounding |
Consolidated Results
First quarter 2016 EPS were $1.28 on an as-reported basis and $1.35 on an operational basis, compared to first quarter 2015 as-reported EPS of $1.65 and operational EPS of $1.68, which were favorably impacted by weather and income tax items. Summary discussions by business unit are below. Additional details, including information on operating cash flow by business, are provided in Appendix A and a comprehensive analysis of quarterly variances is provided in Appendix B.
Utility, Parent & Other Results
For first quarter 2016, Utility, Parent and Other EPS were 84 cents on an as-reported and an operational basis. In comparison, 2015 first quarter as-reported and operational EPS were 97 cents. The quarter's results reflected growth in the Utility business, including effects of new rate actions that recover investments and improve Utility returns. However, the impacts from milder weather this winter and tax items recorded in the first quarter of last year led to the overall decline in results.
During the quarter, the Utility completed both EAI's 2015 rate case and the Union Power Station acquisition. Revenue increases for the Union acquisition included amounts to recover operating expenses for the asset. Utility non-fuel O&M was lower than first quarter 2015 partly due to lower scope of work for fossil outages, deferral of previously-expensed costs resulting from EAI's rate case order and lower pension and other post-retirement benefit expenses. Increased non-fuel O&M expense for nuclear generation due to higher regulatory compliance costs at ANO partially offset these favorable non-fuel O&M items.
Billed retail sales volume decreased (3.1) percent quarter-over-quarter on the effects of weather. On a weather-adjusted basis, billed volume increased 1.8 percent; the components of the weather-adjusted sales growth were:
Industrial sales increased on continued growth for new and expansion customers as well as higher sales to existing customers. New and expansion customers across several sectors continued to ramp and come online. Within our existing industrial customers, usage within the petroleum refining sector continued to be robust and comprised the majority of that increase.
For a schedule of Utility, Parent & Other Adjusted EPS excluding special items and weather and normalizing tax items, see Appendix C. Appendix C also contains additional details on the Utility's performance.
Entergy Wholesale Commodities Results
EWC operational adjusted earnings before interest, taxes, depreciation and amortization were $219 million in first quarter 2016, compared to $254 million in the same period a year ago. The quarter-over-quarter decrease was driven largely by lower energy and capacity prices for EWC's nuclear assets. Quarter-over-quarter results were also affected by 2015 impairments, which reduced fuel and non-fuel O&M expenses in the current quarter.
|
EWC Operational Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures | |||
|
First Quarter 2016 vs. 2015 | |||
|
($ in millions) |
First Quarter | ||
|
2016 |
2015 |
Change | |
|
Net income |
80 |
123 |
(43) |
|
Add back: interest expense |
6 |
6 |
- |
|
Add back: income tax expense |
52 |
70 |
(18) |
|
Add back: depreciation and amortization |
56 |
62 |
(6) |
|
Subtract: interest and investment income |
27 |
50 |
(23) |
|
Add back: decommissioning expense |
31 |
35 |
(4) |
|
Adjusted EBITDA |
199 |
247 |
(48) |
|
Add back pre-tax special items for: |
|||
|
Decisions to close VY, FitzPatrick and Pilgrim |
20 |
7 |
13 |
|
Operational adjusted EBITDA |
219 |
254 |
(35) |
|
Totals may not foot due to rounding |
EWC earned 44 cents per share on an as-reported basis and 51 cents per share on an operational basis for first quarter 2016, compared to first quarter 2015 as-reported earnings of 68 cents per share and operational earnings of 71 cents per share. The decline was driven by lower operational adjusted EBITDA. Interest and investment income was also lower quarter-over-quarter due to higher realized earnings on decommissioning trusts in 2015 from re-balancing activity.
For additional details on EWC's performance, see Appendix D and the webcast slide presentation.
Earnings Guidance
Entergy affirmed its 2016 operational earnings guidance in the range of $4.95 to $5.75 per share and Utility, Parent & Other Adjusted EPS guidance range of $4.20 to $4.50. See the webcast slide presentation for additional details.
Earnings Teleconference
A teleconference will be held at 10 a.m. CT on Tuesday, April 26, 2016, to discuss Entergy's first quarter 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 (855) 893-9849, conference ID 85413992, no more than 15 minutes prior to the start of the call. The webcast slide presentation is also posted to Entergy's website concurrent with this release, which was issued before market open on the day of the call. A replay of the teleconference will be available on Entergy's website at www.entergy.com and by telephone. The telephone replay will be available through May 3, 2016, by dialing (855) 859-2056, conference ID 85413992. This release and the webcast slide presentation are also available on the Entergy Investor Relations mobile web app at iretr.com.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
Entergy Corporation's common stock is listed on the New York and Chicago exchanges under the symbol "ETR."
Additional information regarding Entergy's results of operations, regulatory proceedings and other matters is available in Entergy's earnings release, a copy of which will be filed with the U.S. Securities and Exchange Commission, and the webcast slide presentation. Both the earnings release and webcast slide presentation are available on Entergy's Investor Relations website at www.entergy.com/investor_relations and on Entergy's Investor Relations mobile web app at iretr.com.
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, Entergy's 2016 earnings guidance, its current financial and operational outlook, and other statements of Entergy's plans, beliefs or expectations included in 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 rate proceedings, formula rate plans and other cost recovery mechanisms; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory risks, including any changes resulting from the nuclear crisis in Japan following its catastrophic earthquake and tsunami; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning FitzPatrick, Pilgrim or VY or any of Entergy's other 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 strategic transactions that Entergy or its subsidiaries may undertake, including 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 and (h) economic conditions and conditions in commodity and capital markets during the periods covered by the forward-looking statements.
For definitions of certain operational performance measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the quarterly materials, see Appendix F and Appendix G.
First Quarter 2016 Earnings Release Appendices and Financial Statements
Appendices
Seven appendices are presented in this section as follows:
Also included in this earnings release are:
Accompanying this earnings release is a webcast slide presentation, which is available on Entergy's Investor Relations website at www.entergy.com/investor_relations and on Entergy's Investor Relations mobile web app at iretr.com.
A: Consolidated Results and Special Items
Appendix A-1 provides a comparative summary of consolidated EPS for first quarter 2016 versus 2015, including a reconciliation of GAAP as-reported earnings to non-GAAP operational earnings.
|
Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures First Quarter 2016 vs. 2015 (See Appendix A-3 and Appendix A-4 for details on special items) | |||
|
(Per share in $) | |||
|
First Quarter | |||
|
2016 |
2015 |
Change | |
|
As-Reported |
|||
|
Utility |
1.09 |
1.24 |
(0.15) |
|
Parent & Other |
(0.25) |
(0.27) |
0.02 |
|
EWC |
0.44 |
0.68 |
(0.24) |
|
Consolidated As-Reported Earnings |
1.28 |
1.65 |
(0.37) |
|
Less Special Items |
|||
|
Utility |
- |
- |
- |
|
Parent & Other |
- |
- |
- |
|
EWC |
(0.07) |
(0.03) |
(0.04) |
|
Consolidated Special Items |
(0.07) |
(0.03) |
(0.04) |
|
Operational |
|||
|
Utility |
1.09 |
1.24 |
(0.15) |
|
Parent & Other |
(0.25) |
(0.27) |
0.02 |
|
EWC |
0.51 |
0.71 |
(0.20) |
|
Consolidated Operational Earnings |
1.35 |
1.68 |
(0.33) |
|
Weather Impact |
(0.14) |
0.08 |
(0.22) |
Detailed earnings variance analysis is included in Appendix B.
Appendix A-2 provides the components of OCF contributed by each business.
|
Appendix A-2: Consolidated Operating Cash Flow | |||
|
First Quarter 2016 vs. 2015 | |||
|
($ in millions) | |||
|
First Quarter | |||
|
2016 |
2015 |
Change | |
|
Utility |
459 |
454 |
5 |
|
Parent & Other |
(62) |
(51) |
(11) |
|
EWC |
136 |
208 |
(72) |
|
Total Operating Cash Flow |
533 |
611 |
(78) |
|
Totals may not foot due to rounding |
The primary driver of the $78 million quarter-over-quarter decrease was lower EWC net revenue.
Appendix A-3 and Appendix A-4 list special items by business. Amounts are shown on both an EPS basis and a net income basis. Special items are those events that are not routine. Special items are included in as-reported EPS consistent with GAAP, but are excluded from operational EPS. As a result, operational EPS is considered a non-GAAP measure.
|
Appendix A-3: Special Items by Driver (shown as positive/(negative) impact on EPS) | |||
|
First Quarter 2016 vs. 2015 | |||
|
(After-tax, per share in $) | |||
|
First Quarter | |||
|
2016 |
2015 |
Change | |
|
EWC |
|||
|
Decisions to close VY, FitzPatrick and Pilgrim |
(0.07) |
(0.03) |
(0.04) |
|
Total EWC |
(0.07) |
(0.03) |
(0.04) |
|
Total Special Items |
(0.07) |
(0.03) |
(0.04) |
|
Appendix A-4: Special Items by Income Statement Line Item (shown as positive/(negative) impact on earnings) | |||
|
First Quarter 2016 vs. 2015 | |||
|
(Pre-tax except for Income taxes - other, $ in millions) | |||
|
First Quarter | |||
|
2016 |
2015 |
Change | |
|
EWC |
|||
|
Non-fuel O&M |
(11.5) |
(7.5) |
(4.0) |
|
Taxes other than income taxes |
(1.0) |
0.3 |
(1.3) |
|
Asset write-off and impairments |
(7.4) |
- |
(7.4) |
|
Income taxes - other |
7.0 |
2.5 |
4.5 |
|
Total EWC |
(12.9) |
(4.6) |
(8.3) |
|
Total Special Items |
(12.9) |
(4.6) |
(8.3) |
|
Totals may not foot due to rounding |
B: Variance Analysis
Appendix B provides details of current quarter 2016 versus 2015 as-reported and operational earnings variance analysis for Utility, Parent & Other, EWC and Consolidated.
|
Appendix B: As-Reported and Operational EPS Variance Analysis | |||||||||||
|
First Quarter 2016 vs. 2015 | |||||||||||
|
(After-tax, per share in $, sorted in consolidated operational column, most to least favorable) | |||||||||||
|
Utility |
Parent & Other |
EWC |
Consolidated | ||||||||
|
As-Reported |
Opera-tional |
As-Reported |
Opera-tional |
As- Reported |
Opera-tional |
As- Reported |
Opera-tional | ||||
|
2015 earnings |
1.24 |
1.24 |
(0.27) |
(0.27) |
0.68 |
0.71 |
1.65 |
1.68 | |||
|
Non-fuel O&M |
0.13 |
0.13 |
(a) |
(0.01) |
(0.01) |
0.06 |
0.07 |
(b) |
0.18 |
0.19 | |
|
Taxes other than income taxes |
0.02 |
0.02 |
- |
- |
0.01 |
0.01 |
0.03 |
0.03 | |||
|
Share effect |
0.01 |
0.01 |
- |
- |
- |
- |
0.01 |
0.01 | |||
|
Decommissioning expense |
(0.01) |
(0.01) |
- |
- |
0.01 |
0.01 |
- |
- | |||
|
Asset write-offs and impairments |
- |
- |
- |
- |
(0.03) |
- |
(0.03) |
- | |||
|
Interest expense and other charges |
- |
- |
(0.01) |
(0.01) |
- |
- |
(0.01) |
(0.01) | |||
|
Depreciation/amortization expense |
(0.03) |
(0.03) |
- |
- |
0.02 |
0.02 |
(0.01) |
(0.01) | |||
|
Other income (deductions)-other |
(0.03) |
(0.03) |
- |
- |
(0.07) |
(0.07) |
(c) |
(0.10) |
(0.10) | ||
|
Income taxes – other |
(0.12) |
(0.12) |
(d) |
0.04 |
0.04 |
(0.03) |
(0.03) |
(0.11) |
(0.11) | ||
|
Net revenue |
(0.12) |
(0.12) |
(e) |
- |
- |
(0.21) |
(0.21) |
(f) |
(0.33) |
(0.33) | |
|
2016 earnings |
1.09 |
1.09 |
(0.25) |
(0.25) |
0.44 |
0.51 |
1.28 |
1.35 | |||
See appendix in the webcast slide presentation for additional details on EWC line item variances.
|
(a) |
The quarter-over-quarter increase is attributable to several drivers. Fossil spending was lower quarter-over-quarter due largely to lower scope of work for outage activity. Pension and OPEB expenses were also lower stemming partly from a higher discount rate. Additionally, EAI recorded a deferral of $17.6 million for costs previously expensed related to post-Fukushima and flood barrier compliance. These items were partially offset by higher nuclear generation spending primarily due to an increase in regulatory compliance costs at ANO and an increase in nuclear labor costs, including contract labor. |
|
(b) |
The increase in the current quarter was due largely to lower refueling outage expense resulting from impairments recorded in the 2015. Pension and OPEB expenses were also lower, but largely offset by other benefit cost variances. |
|
(c) |
The decrease quarter-over-quarter was largely due to realized earnings from decommissioning trusts in the first quarter 2015 from rebalancing of VY's decommissioning trust. |
|
(d) |
The quarter-over-quarter decrease was attributable to a first quarter 2015 reversal of a portion of the provision for uncertain tax provisions related to interest accrual of approximately $24 million. |
|
(e) |
The quarterly decrease was driven by weather. The effects of weather were unfavorable in the current quarter and favorable a year ago. The current quarter results also include a $(0.03) per share charge to reflect the estimated impact for recent FERC orders on opportunity sales cases (incremental interest expense was recorded, as well). Excluding these items, net revenue increased due primarily to the EAI rate case, which was effective Feb. 24, 2016 and industrial sales growth. |
|
(f) |
The decrease in the current quarter was driven by lower energy pricing for nuclear assets; capacity pricing was also somewhat lower. The sale of RISEC facility in December 2015 also contributed to the decline. These decreases were partially offset by lower nuclear fuel expense (largely resulting from 2015 impairments) and slightly higher nuclear generation with fewer unplanned outage days. |
|
Utility As-Reported Net Revenue Variance Analysis 2016 vs. 2015 ($ EPS) | |
|
First Quarter | |
|
Weather |
(0.22) |
|
Sales growth/pricing |
0.14 |
|
Other |
(0.04) |
|
Total |
(0.12) |
C: Utility Financial and Performance Measures
Appendix C-1 provides a comparative summary of Utility, Parent & Other Adjusted EPS, excluding the effects of special items and weather and normalizing tax items.
|
Appendix C-1: Utility, Parent & Other Adjusted EPS - Reconciliation of GAAP to Non-GAAP Measures | |||
|
First Quarter 2016 vs. 2015 (See Appendix A for details on special items) | |||
|
(per share in $) |
First Quarter | ||
|
2016 |
2015 |
Change | |
|
As-Reported Earnings |
0.84 |
0.97 |
(0.13) |
|
Less: |
|||
|
Special Items |
- |
- |
- |
|
Weather |
(0.14) |
0.08 |
(0.22) |
|
Tax Items |
0.03 |
0.13 |
(0.10) |
|
Adjusted Earnings |
0.95 |
0.76 |
0.19 |
|
Adjusted U/P&O includes a $(0.05) per share charge for the FERC's recent opportunity sales decision and a $0.06 cost deferral from EAI's 2015 rate case decision |
Appendix C-2 provides a comparative summary of Utility operational performance measures.
|
Appendix C-2: Utility Operational Performance Measures | ||||
|
First Quarter 2016 vs. 2015 (See Appendix G for reconciliation of GAAP to non-GAAP measures) | ||||
|
First Quarter | ||||
|
2016 |
2015 |
% Change |
% Weather Adjusted | |
|
GWh billed |
||||
|
Residential |
8,137 |
9,433 |
(13.7) |
(0.6) |
|
Commercial |
6,511 |
6,721 |
(3.1) |
(1.8) |
|
Governmental |
600 |
592 |
1.4 |
1.1 |
|
Industrial |
11,055 |
10,406 |
6.2 |
6.2 |
|
Total Retail Sales |
26,303 |
27,152 |
(3.1) |
1.8 |
|
Wholesale |
3,140 |
1,811 |
73.4 |
|
|
Total Sales |
29,443 |
28,963 |
1.7 |
|
|
Number of electric retail customers |
||||
|
Residential |
2,443,022 |
2,419,228 |
1.0 |
|
|
Commercial |
350,136 |
345,616 |
1.3 |
|
|
Governmental |
17,686 |
17,383 |
1.7 |
|
|
Industrial |
40,823 |
41,047 |
(0.5) |
|
|
Total Retail Customers |
2,851,667 |
2,823,274 |
1.0 |
|
|
Net Revenue ($ millions) |
1,375 |
1,410 |
(2.5) |
|
|
As-reported non-fuel O&M per MWh |
18.56 |
20.17 |
(8.0) |
|
|
Operational non-fuel O&M per MWh |
18.56 |
20.17 |
(8.0) |
|
See appendix in the webcast slide presentation for information on select regulatory cases.
D: EWC Performance Measures
Appendix D-1 provides a comparative summary of EWC operational performance measures.
|
Appendix D-1: EWC Operational Performance Measures | |||
|
First Quarter 2016 vs. 2015 (See Appendix G for reconciliation of GAAP to non-GAAP measures) | |||
|
First Quarter | |||
|
2016 |
2015 |
% Change | |
|
Owned capacity (MW) (g) |
4,880 |
5,463 |
(10.7%) |
|
GWh billed |
9,246 |
9,592 |
(3.6%) |
|
As-reported average total revenue per MWh |
$56.47 |
$67.00 |
(15.7%) |
|
Adjusted average total revenue per MWh |
$56.10 |
$66.60 |
(15.8%) |
|
Net revenue ($ millions) |
466 |
527 |
(11.6%) |
|
As-reported non-fuel O&M per MWh |
25.14 |
25.89 |
(2.9%) |
|
Operational non-fuel O&M per MWh |
23.90 |
25.11 |
(4.8%) |
|
EWC Nuclear Fleet |
|||
|
Capacity factor |
90% |
90% |
- |
|
GWh billed |
8,688 |
8,618 |
0.8% |
|
As-reported average total revenue per MWh |
$57.43 |
$65.78 |
(12.7%) |
|
Adjusted average total revenue per MWh |
$57.04 |
$65.34 |
(12.7%) |
|
Production cost per MWh |
$21.91 |
$25.61 |
(14.4%) |
|
Net revenue ($ millions) |
464 |
511 |
(9.2%) |
|
Refueling outage days |
|||
|
Indian Point 2 |
25 |
||
|
Indian Point 3 |
23 |
||
|
(g) |
First quarter 2016 excludes RISEC (583 MW) that was sold in December 2015. |
See appendix in the webcast slide presentation for EWC hedging and price disclosures.
E: Consolidated Financial Performance Measures
Appendix E provides comparative financial performance measures for the current quarter. Financial performance measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP measures.
As-reported measures are computed in accordance with GAAP as they include all components of net income, including special items. Operational measures are non-GAAP measures as they are calculated using operational net income, which excludes the impact of special items.
|
Appendix E: GAAP and Non-GAAP Financial Performance Measures | ||||
|
First Quarter 2016 vs. 2015 (See Appendix G for reconciliation of GAAP to non-GAAP measures) | ||||
|
For 12 months ending March 31 |
2016 |
2015 |
Change | |
|
GAAP Measures |
||||
|
ROIC - as-reported |
0.7% |
5.1% |
(4.4%) | |
|
ROE - as-reported |
(2.5%) |
8.3% |
(10.8%) | |
|
Book value per share |
$52.38 |
$56.45 |
($4.07) | |
|
End of period shares outstanding (millions) |
178.7 |
179.5 |
(0.8) | |
|
Non-GAAP Measures |
||||
|
ROIC - operational |
5.8% |
5.6% |
0.2% | |
|
ROE - operational |
10.4% |
9.4% |
1.0% | |
|
As of March 31 ($ in millions) |
||||
|
GAAP Measures |
||||
|
Cash and cash equivalents |
1,092 |
1,181 |
(89) | |
|
Revolver capacity |
3,794 |
3,779 |
15 | |
|
Commercial paper outstanding |
578 |
762 |
(184) | |
|
Total debt |
15,092 |
14,044 |
1,048 | |
|
Securitization debt |
752 |
762 |
(10) | |
|
Debt to capital ratio |
60.9% |
57.4% |
3.5% | |
|
Off-balance sheet liabilities: |
||||
|
Debt of joint ventures - Entergy's share |
77 |
81 |
(4) | |
|
Leases - Entergy's share |
359 |
422 |
(63) | |
|
Power purchase agreements accounted for as leases |
195 |
224 |
(29) | |
|
Total off-balance sheet liabilities |
631 |
727 |
(96) | |
|
Non-GAAP Measures |
||||
|
Debt to capital ratio, excluding securitization debt |
59.7% |
56.0% |
3.7% | |
|
Gross liquidity |
4,886 |
4,960 |
(74) | |
|
Net debt to net capital ratio, excluding securitization debt |
57.8% |
53.7% |
4.1% | |
|
Parent debt to total debt ratio, excluding securitization debt |
19.5% |
20.9% |
(1.4%) | |
|
Debt to operational adjusted EBITDA, excluding securitization debt |
4.6 |
3.9 |
0.7 | |
|
Operational FFO to debt ratio, excluding securitization debt |
21.0% |
28.2% |
(7.2%) | |
F: Definitions, Abbreviations and Acronyms
Appendix F-1 provides definitions of certain operational performance measures, as well as GAAP and non-GAAP financial measures. Non-GAAP measures provide metrics that remove the effect of financial events that are not routine from commonly used financial metrics.
|
Appendix F-1: Definitions | |
|
Utility Operational Performance Measures | |
|
GWh billed |
Total number of GWh billed to all retail and wholesale customers |
|
Net revenue |
Operating revenue less fuel, fuel related expenses and gas purchased for resale, purchased power and other regulatory charges (credits) - net |
|
Non-fuel O&M |
Operation and maintenance expenses excluding fuel, fuel-related expenses and gas purchased for resale and purchased power |
|
Non-fuel O&M per MWh |
Non-fuel O&M per MWh of billed sales |
|
Number of retail customers |
Number of customers at end of period |
|
EWC Operational Performance Measures | |
|
As-reported average total revenue per MWh |
As-reported revenue per MWh billed, excluding revenue from investments in wind generation accounted for under the equity method of accounting |
|
Adjusted average total revenue per MWh |
As-reported average total revenue per MWh, excluding revenue from the amortization of the Palisades below-market PPA |
|
Average revenue under contract per kW-month (applies to capacity contracts only) |
Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and/or auction awards |
|
Average revenue per MWh on contracted volumes |
Revenue on a per unit basis at which generation output reflected in contracts is expected to be sold to third parties (including offsetting positions) at the minimum contract prices and at forward market prices at a point in time, given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market PPA for Palisades; revenue will fluctuate due to factors including market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at the time of option expiration, costs to convert firm LD to unit-contingent and other risk management costs |
|
Bundled capacity and energy contracts |
A contract for the sale of installed capacity and related energy, priced per MWh sold |
|
Capacity contracts |
A contract for the sale of the installed capacity product in regional markets managed by ISO-NE, the NYISO and MISO |
|
Capacity factor |
Normalized percentage of the period that the nuclear plants generate power |
|
Expected sold and market total revenue per MWh |
Total energy and capacity revenue on a per unit basis at which total planned generation output and capacity is expected to be sold given contract terms and market prices at a point in time, including estimates for market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at time of option expiration, costs to convert Firm LD to unit-contingent and other risk management costs, divided by total planned MWh of generation, excluding the revenue associated with the amortization of the Palisades below-market PPA |
|
Firm LD |
Transaction that requires receipt or delivery of energy at a specified delivery point (usually at a market hub not associated with a specific asset) or settles financially on notional quantities; if a party fails to deliver or receive energy, defaulting party must compensate the other party as specified in the contract; a portion of which may be capped through the use of risk management products |
|
GWh billed |
Total number of GWh billed to customers, excluding investments in wind generation accounted for under the equity method of accounting and financially-settled instruments |
|
Appendix F-1: Definitions | ||
|
EWC Operational Performance Measures (continued) | ||
|
Net revenue |
Operating revenue less fuel, fuel related expenses and purchased power | |
|
Non-fuel O&M |
Operation and maintenance expenses excluding fuel, fuel-related expenses and gas purchased for resale, purchased power and investments in wind generation accounted for under the equity method of accounting | |
|
Non-fuel O&M per MWh |
Non-fuel O&M per MWh billed | |
|
Offsetting positions |
Transactions for the purchase of energy, generally to offset a Firm LD transaction | |
|
Owned capacity (MW) |
Installed capacity owned and operated by EWC, including investments in wind generation accounted for under the equity method of accounting; RISEC (non-nuclear) was sold on Dec. 17, 2015 | |
|
Percent of capacity sold forward |
Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions | |
|
Percent of planned generation under contract |
Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts or options that mitigate price uncertainty that may or may not require regulatory approval or approval of transmission rights or other conditions precedent; positions that are no longer classified as hedges are netted in the planned generation under contract | |
|
Planned net MW in operation |
Amount of installed capacity to generate power and/or sell capacity, assuming intent to shutdown Pilgrim on May 31, 2019 and FitzPatrick on Jan. 27, 2017 | |
|
Planned TWh of generation |
Amount of output expected to be generated by EWC resources considering plant operating characteristics and outage schedules, assuming intent to shutdown Pilgrim on May 31, 2019 and FitzPatrick on Jan. 27, 2017, uninterrupted normal plant operation and timely renewal of plant operating licenses at IPEC | |
|
Production cost per MWh |
Fuel and non-fuel O&M expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation), excluding special items | |
|
Refueling outage days |
Number of days lost for scheduled refueling outage during the period | |
|
Unit-contingent |
Transaction under which power is supplied from a specific generation asset; if the asset is on operational outage, seller is generally not liable to buyer for any damages, unless the contract specifies certain conditions such as an availability guarantee | |
|
Financial Measures – GAAP | ||
|
Book value per share |
End of period common equity divided by end of period shares outstanding | |
|
Debt of joint ventures - Entergy's share |
Entergy's share of debt issued by business joint ventures at EWC | |
|
Debt to capital ratio |
Total debt divided by total capitalization | |
|
Leases - Entergy's share |
Operating leases held by subsidiaries capitalized at implicit interest rate | |
|
Revolver capacity |
Amount of undrawn capacity remaining on corporate and subsidiary revolvers, including Entergy Nuclear Vermont Yankee | |
|
ROIC - as-reported |
12-months rolling net income attributable to Entergy Corporation or Subsidiary (Net Income) adjusted for preferred dividends and tax-effected interest expense divided by average invested capital | |
|
ROE - as-reported |
12-months rolling Net Income divided by average common equity | |
|
Securitization debt |
Debt associated with securitization bonds issued to recover storm costs from hurricanes Rita, Ike and Gustav at ETI and Hurricane Isaac at ENOI; the 2009 ice storm at EAI and investment recovery of costs associated with the cancelled Little Gypsy repowering project at ELL | |
|
Total debt |
Sum of short-term and long-term debt, notes payable and commercial paper and capital leases on the balance sheet | |
|
Appendix F-1: Definitions | |
|
Financial Measures - Non-GAAP | |
|
Adjusted EBITDA |
Earnings before interest, depreciation and amortization and income taxes excluding decommissioning expense and other than temporary impairment losses on decommissioning trust fund assets; for Entergy consolidated, also excludes AFUDC-equity funds and subtracts securitization proceeds |
|
Adjusted EPS |
As-reported earnings per share excluding special items and weather and normalizing for income tax |
|
Debt to capital ratio, excluding securitization debt |
Total debt divided by total capitalization, excluding securitization debt |
|
Debt to EBITDA |
End of period total debt excluding securitization debt divided by 12-months rolling operational adjusted EBITDA |
|
FFO |
Net cash flow provided by operations less AFUDC-borrowed funds, working capital items in operating cash flow (receivables, fuel inventory, accounts payable, prepaid taxes and taxes accrued, interest accrued and other working capital accounts) and securitization regulatory charge |
|
FFO to debt |
12-months rolling operational FFO as a percentage of end of period total debt excluding securitization debt |
|
Gross liquidity |
Sum of cash and revolver capacity |
|
Operational adjusted EBITDA |
Adjusted EBITDA excluding effects of special items |
|
Operational earnings |
As-reported Net Income adjusted to exclude the impact of special items |
|
Operational FFO |
FFO excluding effects of special items |
|
Parent debt to total debt |
End of period Entergy Corporation debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of total debt excluding securitization debt |
|
Net debt to net capital ratio, excluding securitization debt |
Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt |
|
ROIC - operational |
12-months rolling operational Net Income adjusted for preferred dividends and tax-effected interest expense divided by average invested capital |
|
ROE - operational |
12-months rolling operational Net Income divided by average common equity |
Appendix F-2 explains abbreviations and acronyms used in the quarterly earnings materials.
|
Appendix F-2: Abbreviations and Acronyms | |||
|
AFUDC- borrowed funds |
Allowance for borrowed funds used during construction |
MISO |
Midcontinent Independent System Operator, Inc. |
|
MPSC |
Mississippi Public Service Commission | ||
|
AFUDC- equity funds |
Allowance for equity funds used during construction |
MTEP |
MISO Transmission Expansion Planning |
|
NEPOOL |
New England Power Pool | ||
|
ADIT |
Accumulated deferred income taxes |
Ninemile 6 |
Ninemile Point Unit 6 |
|
ANO |
Arkansas Nuclear One (nuclear) |
NOAA |
National Oceanic and Atmosphere Administration |
|
APSC |
Arkansas Public Service Commission |
Non-fuel O&M |
Non-fuel operation and maintenance expense |
|
BP |
Basis point |
NRC |
Nuclear Regulatory Commission |
|
CCGT |
Combined cycle gas turbine |
NYISO |
New York Independent System Operator, Inc. |
|
CCNO |
Council of the City of New Orleans, Louisiana |
NYPA |
New York Power Authority |
|
COD |
Commercial operation date |
NYS |
New York State |
|
Cooper |
Cooper Nuclear Station |
NYSDEC |
New York State Department of Environmental Conservation |
|
CT |
Simple cycle combustion turbine | ||
|
CZM |
Coastal zone management |
NYSDOS |
New York State Department of State |
|
DCRF |
Distribution cost recovery factor |
NYSE |
New York Stock Exchange |
|
EAI |
Entergy Arkansas, Inc. |
O&M |
Operation and maintenance expense |
|
EBITDA |
Earnings before interest, income taxes, depreciation and amortization |
OCF |
Operating cash flow |
|
OPEB |
Other post-employment benefits | ||
|
EGSL |
Entergy Gulf States Louisiana, L.L.C. |
Palisades |
Palisades Power Plant (nuclear) |
|
ELL |
Entergy Louisiana, LLC |
Pilgrim |
Pilgrim Nuclear Power Station (nuclear) |
|
EMI |
Entergy Mississippi, Inc. |
PPA |
Power purchase agreement or purchased power agreement |
|
ENOI |
Entergy New Orleans, Inc. | ||
|
ESI |
Entergy Services, Inc. |
PUCT |
Public Utility Commission of Texas |
|
EPS |
Earnings per share |
RFO |
Refueling outage |
|
ETI |
Entergy Texas, Inc. |
RFP |
Request for proposal |
|
ETR |
Entergy Corporation |
RISEC |
Rhode Island State Energy Center (CCGT) |
|
EWC |
Entergy Wholesale Commodities |
ROE |
Return on equity |
|
FCA |
Forward capacity auction |
ROIC |
Return on invested capital |
|
FERC |
Federal Energy Regulatory Commission |
ROS |
Rest of state |
|
FFO |
Funds from operations |
RPCE |
Rough production cost equalization |
|
Firm LD |
Firm liquidated damages |
SEC |
U.S. Securities and Exchange Commission |
|
FitzPatrick |
James A. FitzPatrick Nuclear Power Plant (nuclear) |
SEMARI |
Southeast Massachusetts/Rhode Island |
|
FRP |
Formula rate plan |
SERI |
System Energy Resources, Inc. |
|
GAAP |
Generally accepted accounting principles |
SPDES |
State Pollutant Discharge Elimination System |
|
Grand Gulf |
Unit No. 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by System Energy |
SPP |
Southwest Power Pool |
|
TCRF |
Transmission cost recovery factor | ||
|
HCM |
Human Capital Management program |
Top Deer |
Top Deer Wind Ventures, LLC |
|
Indian Point 2 |
Indian Point Energy Center Unit 2 (nuclear) |
Union |
Union Power Station |
|
Indian Point 3 |
Indian Point Energy Center Unit 3 (nuclear) |
UP&O |
Utility, Parent & Other |
|
IPEC |
Indian Point Energy Center (nuclear) |
VY |
Vermont Yankee Nuclear Power Station (nuclear) |
|
ISES |
Independence Steam Electric Station (coal) |
WACC |
Weighted-average cost of capital |
|
ISO |
Independent system operator |
WOTAB |
West of the Atchafalaya Basin |
|
ISO-NE |
ISO New England |
Waterford 3 |
Unit No. 3 (nuclear) of the Waterford Steam Electric Station, 100% owned or leased by Entergy Louisiana |
|
LEUG |
Louisiana Energy Users Group | ||
|
LHV |
Lower Hudson Valley |
WQC |
Water Quality Certification |
|
LPSC |
Louisiana Public Service Commission |
YOY |
Year-over-year |
|
LTM |
Last twelve months |
||
G: GAAP to Non-GAAP Reconciliations
Appendix G-1, Appendix G-2 and Appendix G-3 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure.
|
Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures - Utility and EWC Non-fuel O&M per MWh, EWC and EWC Nuclear Average Total Revenue per MWh | |||
|
($ in thousands except where noted) |
First Quarter | ||
|
2016 |
2015 | ||
|
Utility |
|||
|
As-reported Utility non-fuel O&M |
(A) |
546,581 |
584,300 |
|
Operational Utility non-fuel O&M |
(B) |
546,581 |
584,300 |
|
Utility billed sales (GWh) |
(C) |
29,443 |
28,963 |
|
As-reported Utility non-fuel O&M per MWh |
(A/C) |
18.56 |
20.17 |
|
Operational Utility non-fuel O&M per MWh |
(B/C) |
18.56 |
20.17 |
|
EWC |
|||
|
As-reported EWC non-fuel O&M |
(D) |
232,463 |
248,326 |
|
Special Items included in non-fuel O&M: |
|||
|
Decisions to close VY, FitzPatrick and Pilgrim |
11,521 |
7,489 | |
|
Total special items included in non-fuel O&M |
(E) |
11,521 |
7,489 |
|
Operational EWC non-fuel O&M |
(D-E) |
220,942 |
240,837 |
|
EWC billed sales (GWh) |
(F) |
9,246 |
9,592 |
|
As-reported EWC non-fuel O&M per MWh |
(D/F) |
25.14 |
25.89 |
|
Operational EWC non-fuel O&M per MWh |
[(D-E)/(F)] |
23.90 |
25.11 |
|
As-reported EWC operating revenue |
(G) |
522,079 |
642,590 |
|
Less Palisades below-market PPA amortization |
(H) |
3,364 |
3,800 |
|
Adjusted EWC operating revenue |
(G-H) |
518,715 |
638,790 |
|
As-reported EWC nuclear operating revenue |
(I) |
498,901 |
566,908 |
|
Less Palisades below-market PPA amortization |
(H) |
3,364 |
3,800 |
|
Adjusted EWC nuclear operating revenue |
(I-H) |
495,537 |
563,109 |
|
As-reported EWC average total revenue per MWh |
(G)/(F) |
56.47 |
67.00 |
|
Adjusted EWC average total revenue per MWh |
[(G-H)/(F)] |
56.10 |
66.60 |
|
EWC nuclear billed sales (GWh) |
(J) |
8,688 |
8,618 |
|
As-reported EWC nuclear average total revenue per MWh |
(I)/(J) |
57.43 |
65.78 |
|
Adjusted EWC nuclear average total revenue per MWh |
[(I-H)/(J)] |
57.04 |
65.34 |
|
Totals may not foot due to rounding |
|
Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures - ROE, ROIC Metrics | |||
|
($ in millions) |
First Quarter | ||
|
2016 |
2015 | ||
|
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months |
(A) |
(245) |
838 |
|
Preferred dividends |
20 |
20 | |
|
Tax effected interest expense |
398 |
389 | |
|
As-reported net income attributable to Entergy Corporation, rolling 12 months adjusted for preferred dividends and tax effected interest expense |
(B) |
173 |
1,247 |
|
Special items in prior quarters |
(1,248) |
(101) | |
|
Decisions to close VY, FitzPatrick and Pilgrim |
(13) |
(5) | |
|
Total special items, rolling 12 months |
(C) |
(1,261) |
(105) |
|
Operational earnings, rolling 12 months adjusted for preferred dividends and tax effected interest expense |
(B-C) |
1,434 |
1,352 |
|
Operational earnings, rolling 12 months |
(A-C) |
1,016 |
943 |
|
Average invested capital |
(D) |
24,627 |
24,298 |
|
Average common equity |
(E) |
9,747 |
10,041 |
|
ROIC - as-reported % |
(B/D) |
0.7 |
5.1 |
|
ROIC - operational % |
[(B-C)/D] |
5.8 |
5.6 |
|
ROE - as-reported % |
(A/E) |
(2.5) |
8.3 |
|
ROE - operational % |
[(A-C)/E] |
10.4 |
9.4 |
|
Totals may not foot due to rounding |
|
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures - Credit and Liquidity Metrics | |||
|
($ in millions) |
First Quarter | ||
|
2016 |
2015 | ||
|
Total debt |
(A) |
15,092 |
14,044 |
|
Less securitization debt |
(B) |
752 |
762 |
|
Total debt, excluding securitization debt |
(C) |
14,340 |
13,282 |
|
Less cash and cash equivalents |
(D) |
1,092 |
1,181 |
|
Net debt, excluding securitization debt |
(E) |
13,248 |
12,101 |
|
Total capitalization |
(F) |
24,771 |
24,483 |
|
Less securitization debt |
(B) |
752 |
762 |
|
Total capitalization, excluding securitization debt |
(G) |
24,019 |
23,721 |
|
Less cash and cash equivalents |
(D) |
1,092 |
1,181 |
|
Net capital, excluding securitization debt |
(H) |
22,927 |
22,540 |
|
Debt to capital ratio % |
(A/F) |
60.9 |
57.4 |
|
Debt to capital ratio, excluding securitization debt % |
(C/G) |
59.7 |
56.0 |
|
Net debt to net capital ratio, excluding securitization debt % |
(E/H) |
57.8 |
53.7 |
|
Revolver capacity |
(I) |
3,794 |
3,779 |
|
Gross liquidity |
(D+I) |
4,886 |
4,960 |
|
Entergy Corporation notes: |
|||
|
Due September 2015 |
- |
550 | |
|
Due January 2017 |
500 |
500 | |
|
Due September 2020 |
450 |
450 | |
|
Due July 2022 |
650 |
- | |
|
Total parent long-term debt |
(J) |
1,600 |
1,500 |
|
Revolver draw |
(K) |
616 |
508 |
|
Commercial paper |
(L) |
578 |
762 |
|
Total parent debt |
(J)+(K)+(L) |
2,794 |
2,770 |
|
Parent debt to total debt ratio, excluding securitization debt % |
[((J)+(K)+(L))/(C)] |
19.5 |
20.9 |
|
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures - Credit and Liquidity Metrics (continued) | |||
|
($ in millions) |
First Quarter | ||
|
2016 |
2015 | ||
|
Total debt |
(A) |
15,092 |
14,044 |
|
Less securitization debt |
(B) |
752 |
762 |
|
Total debt, excluding securitization debt |
(C) |
14,340 |
13,282 |
|
As-reported consolidated net income (loss), rolling 12 months |
(245) |
857 | |
|
Add back: interest expense, rolling 12 months |
647 |
632 | |
|
Add back: income tax expense, rolling 12 months |
(653) |
523 | |
|
Add back: depreciation and amortization, rolling 12 months |
1,340 |
1,322 | |
|
Add back: regulatory charges (credits), rolling 12 months |
166 |
(7) | |
|
Subtract: securitization proceeds, rolling 12 months |
136 |
129 | |
|
Subtract: interest and investment income, rolling 12 months |
152 |
181 | |
|
Subtract: AFUDC-equity funds, rolling 12 months |
59 |
61 | |
|
Add back: decommissioning expense, rolling 12 months |
279 |
277 | |
|
Adjusted EBITDA, rolling 12 months |
(D) |
1,187 |
3,233 |
|
Add back: special item for HCM implementation expenses, rolling 12 months (pre-tax) |
- |
11 | |
|
Add back: special item resulting from decisions to close VY, FitzPatrick and Pilgrim, rolling 12 months (pre-tax) |
1,670 |
152 | |
|
Add back: special item for Palisades asset impairment and related write-offs, rolling 12 months (pre-tax) |
396 |
- | |
|
Add back: Top Deer investment impairment, rolling 12 months (pre-tax) |
37 |
- | |
|
Add back: special item for gain on the sale of RISEC, rolling 12 months (pre-tax) |
(154) |
- | |
|
Operational adjusted EBITDA, rolling 12 months |
(E) |
3,136 |
3,396 |
|
Debt to operational adjusted EBITDA, excluding securitization debt |
(C)/(E) |
4.6 |
3.9 |
|
Net cash flow provided by operating activities, rolling 12 months |
(F) |
3,213 |
3,733 |
|
AFUDC-borrowed funds used during construction, rolling 12 months |
(G) |
(30) |
(33) |
|
Working capital items in net cash flow provided by operating activities, rolling 12 months: |
|||
|
Receivables |
92 |
72 | |
|
Fuel inventory |
1 |
(35) | |
|
Accounts payable |
(49) |
(200) | |
|
Prepaid taxes and taxes accrued |
134 |
(51) | |
|
Interest accrued |
4 |
7 | |
|
Other working capital accounts |
(118) |
137 | |
|
Securitization regulatory charge |
106 |
97 | |
|
Total |
(H) |
170 |
27 |
|
FFO, rolling 12 months |
(F)+(G)-(H) |
3,013 |
3,673 |
|
Add back: special item for HCM implementation expenses, rolling 12 months (pre-tax) |
- |
23 | |
|
Add back: special item resulting from decisions to close VY, FitzPatrick and Pilgrim, rolling 12 months (pre-tax) |
4 |
56 | |
|
Operational FFO, rolling 12 months |
(I) |
3,017 |
3,752 |
|
Operational FFO to debt ratio, excluding securitization debt % |
(I)/(C) |
21.0 |
28.2 |
|
Totals may not foot due to rounding |
Logo - http://photos.prnewswire.com/prnh/20120913/MM74349LOGO
SOURCE Entergy Corporation
Article Date
4/26/2016Entergy Announces First Quarter Earnings Conference Call
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, April 22, 2016 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) will report first quarter earnings results before market open on Tuesday, April 26, 2016, and host a teleconference at 10 a.m. CT that day to discuss the earnings announcement and the company's financial performance. The teleconference may be accessed by dialing 855-893-9849, conference ID 85413992, no more than 15 minutes prior to the start of the call or by visiting Entergy's website at www.entergy.com. From time to time, Entergy posts new and/or revised materials on its website and on social media, and anticipates doing so in connection with this event. The presentation slides will be available on Entergy's website and the Entergy Investor Relations mobile web app at iretr.com before market open on the day of the call. A replay of the teleconference will be available until May 3, 2016, by dialing 855-859-2056, confirmation ID 85413992.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
Additional investor information can be accessed at www.entergy.com/investor_relations
Logo - http://photos.prnewswire.com/prnh/20120913/MM74349LOGO
SOURCE Entergy Corporation
Article Date
4/22/2016Entergy Intends to Refuel Pilgrim Nuclear Power Station in Massachusetts Next Year
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, April 14, 2016 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) announced today that it intends to refuel the Pilgrim Nuclear Power Station in Plymouth, Mass., next year to continue supplying power to New England, then cease operations on May 31, 2019. The decision narrows the previously announced shutdown timeframe of 2017-2019.
"We're pleased that we will be able to keep our team of hardworking, professional employees actively engaged in safe operations for the next three years and in a return to regular NRC and industry oversight," said John Dent, Pilgrim's site vice president. "During this period, Pilgrim will continue safely to provide clean, emissions-free electricity to our neighbors.
"Another benefit of the three-year window before shutdown is that Pilgrim will continue to be a good neighbor, providing economic benefits and charitable donations. In just the past four years, Pilgrim has donated more than $1.5 million to local, regional and statewide non-profit organizations," Dent added.
The decision to remain in operation for another three years means that Pilgrim will conduct a refueling outage in the spring of 2017. Refueling outages, which the plant conducts every other year, result in significant positive economic impacts for the region. The 2015 refueling outage resulted in a $70 million investment in the plant, including $25 million in new equipment. Nearly 2,000 employees, including 1,184 extra contract workers, performed hundreds of activities. The enlarged workforce at Pilgrim increased the plant's economic contributions to Plymouth and surrounding communities through the purchase of hotel rooms, meals and tourism activities.
Planning for decommissioning will begin with the formation of a dedicated team of individuals with both decommissioning and Pilgrim plant experience. This team will develop a Post-Shutdown Decommissioning Activities Report describing planned decommissioning activities, a schedule, cost estimate, and environmental impacts. That plan, due no later than two years after shutdown, is a public document sent to the Nuclear Regulatory Commission for review. Entergy will also create a Nuclear Decommissioning Citizen's Advisory/Engagement Panel to share information and educate the public. More information on decommissioning can be found at www.pilgrimpower.com.
Entergy remains committed overall to nuclear power, whose benefits include carbon-free, reliable power that is cost- effective over the long term, contributes to supply diversity and energy security as part of a balanced energy portfolio and provides almost two-thirds of America's clean-air electricity.
About the Pilgrim Nuclear Power Station and Entergy
The Pilgrim Nuclear Power Station generates 680 megawatts of nearly carbon-free electricity, enough to power more than 600,000 homes. Pilgrim began generating electricity in 1972.
Additional information regarding today's announcement is available on Entergy's corporate website at entergy.com.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
Entergy's online address is: entergy.com
Facebook.com/entergy
Twitter: @entergy
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SOURCE Entergy Corporation
Article Date
4/14/2016Entergy Announces Senior Executive Personnel Changes
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, April 11, 2016 /PRNewswire/ -- With the planned retirement of one of the company's Utility executives in 2017, Entergy Corporation (NYSE: ETR) today announced a series of leadership changes to support the continued growth of its business.
After more than 33 years in the utility business, Theodore (Theo) H. Bunting, Jr., group president, utility operations, has announced his intent to retire in the second quarter of 2017.
Under Bunting's leadership over the last four years, the company has developed and is executing a comprehensive Utility growth strategy. The strategy includes delivering affordable energy with high quality customer service, while strengthening the Utility's infrastructure and driving economic development and job creation in the communities served by the company.
"Theo has made significant contributions to our business and our industry as a leader and strategic advisor," said Leo P. Denault, chairman and chief executive officer of Entergy. "His depth of knowledge, experience and intuitive understanding of the business has positioned Entergy well to successfully capture growth opportunities. Theo is also a trusted friend with whom I have worked side-by-side for almost two decades solving complex business issues and developing and executing strategies that add value for our four key stakeholders – owners, customers, employees and the communities we serve. His friendship and counsel have had a lasting impact on me, and our business is better off for having had his leadership and expertise for so many years."
With the announcement of Bunting's retirement and as part of the company's executive succession planning process, Roderick (Rod) K. West, currently executive vice president and chief administrative officer, will move into a role working directly with Bunting. This move will facilitate an orderly transfer of knowledge and support business continuity as part of the company's succession planning for the Utility's leadership role. West will maintain his current title as executive vice president and continue to serve as a member of Entergy's Office of the Chief Executive.
A 17-year veteran of Entergy, West has prior experience working in the Utility business as director of regulatory affairs, director of electric distribution operations, and president and CEO of Entergy New Orleans. West is credited with leading Entergy New Orleans out of its post-Hurricane Katrina bankruptcy and back to profitability, a successful effort to replace more than 850 miles of underground natural gas pipe damaged during Katrina, and overseeing the reconstruction of the electrical infrastructure of New Orleans.
"During Rod's career, he has developed a portfolio of experiences that have prepared him well for a new role in the Utility," said Denault. "I am confident the opportunity to work closely with Theo over the next year will further enhance his business acumen and leadership skills."
West's current responsibilities, which include human resources, shared services, federal policy, regulatory and governmental affairs, and corporate communications, will be reassigned to other senior leaders.
Shared Services & Human Resources Organization
Donald (Don) W. Vinci, currently senior vice president, human resources and chief diversity officer, is being promoted to executive vice president, shared services and human resources, reporting directly to Denault. Vinci will continue to serve as the company's Chief Diversity Officer. A retired captain in the Naval Reserves, Vinci has served in a broad range of leadership roles in addition to human resources, including positions in both the Utility and Nuclear organizations.
Legal, Federal Policy, Regulatory and Governmental Affairs and Corporate Communications
Marcus V. Brown, currently executive vice president and general counsel, will assume additional responsibility for federal policy, regulatory and governmental affairs, and corporate communications.
Aligning these organizations under Brown's leadership will allow for better coordinated action planning and decision-making related to the company's stakeholder engagement efforts in support of its key initiatives.
Reporting to Brown will be Kimberly H. Despeaux, senior vice president, federal policy, regulatory and governmental affairs, and Necole J. Merritt, group vice president, corporate communications.
The changes for West, Vinci and Brown are effective May 8.
"We are committed to ensuring the overall success of the business for our four stakeholders," said Denault. "Our goal is to align the business need with the appropriate business leader to ensure we are meeting our objectives. Today's announcement is an example of the effectiveness of our leadership development and internal succession planning processes and an acknowledgment of the diverse skills of our leaders that allow them to take on an expanded portfolio of responsibilities."
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
Entergy's online address is entergy.com
Facebook.com/entergy
Twitter: @entergy
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SOURCE Entergy Corporation
Article Date
4/11/20164/6/2016 - Entergy Declares Dividend
Entergy Declares Dividend
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, April 6, 2016 /PRNewswire/ -- The Board of Directors of Entergy Corporation (NYSE: ETR) has declared a quarterly dividend of $0.85 per common share. The payment date is June 1, 2016, to stockholders of record on May 12, 2016.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
Online address: Entergy.com
Twitter: @Entergy
Facebook: www.facebook.com/entergy
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SOURCE Entergy Corporation
Article Date
4/6/20163/29/2016 - Hundreds of Inspections Completed on Indian Point Unit 2, Replacement of Reactor Liner Bolts Planned
Hundreds of Inspections Completed on Indian Point Unit 2, Replacement of Reactor Liner Bolts Planned
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BUCHANAN, N.Y., March 29, 2016 /PRNewswire/ -- Comprehensive inspections completed during a planned outage at the Indian Point nuclear power plant show critical components at Unit 2 continue to perform safely and as intended, with maintenance required in one area before the plant can be restarted, Entergy Corp. announced today.
"Safety is always our first priority, and the hundreds of inspections performed over the last few weeks demonstrate these programs work as designed," said Larry Coyle, site vice president and Entergy's top official at Indian Point. "Safeguards and automatic detection equipment are in place to alert plant operators of impacts on safe operations."
Indian Point Unit 2's "Aging Management Program" -- implemented in connection with license renewal -- calls for an in-depth inspection of the reactor vessel every ten years. The first such inspection took place during a scheduled refueling and maintenance outage that began March 7, and used visual and where possible, ultrasonic inspections. Inspections of more than 2,000 bolts in the reactor's removable insert liner revealed issues with approximately 11 percent that require further analysis. Issues were identified on bolts on the face of the removable liner, not on bolts along the liner's edges. Engineers identified missing bolts, and bars meant to hold them in place, and other degradation requiring replacement of the bolts. Each bolt, about two inches long and made of stainless steel, holds plate inserts together inside the reactor.
The issues identified with the reactor vessel insert liner bolts did not have an impact on public health or safety and will be corrected prior to returning Indian Point Unit 2 to operation. With comprehensive inspections on the entire reactor vessel finished, once a full engineering assessment of the issue is also completed and corrective actions taken, the unit can safely operate in the period of extended operation. This work is expected to add cost and several weeks' duration to the refueling and maintenance outage.
Entergy has informed the U.S. Nuclear Regulatory Commission and other appropriate regulatory authorities of the issues with the bolts, in accordance with applicable regulatory requirements.
Hundreds of Inspections Performed During Refueling Outage
The inspections are part of Indian Point's comprehensive and expanded inspection program implemented in accordance with the plant's license renewal application, going beyond normal inspections performed during each refueling outage.
In all, the refueling and maintenance outage of Unit 2 involves testing and inspection of the reactor containment area, the reactor vessel, the control rod mechanism, coolant pump motors and steam generators. In addition, inspections were performed outside the containment area, on dozens of valves, turbine rotors, condensate storage tanks and other equipment. Equipment replacement includes some of the mechanisms for the control rods, pipes, heat exchangers, steam condensers and reactor coolant pump motors.
Engineers have conducted more than 350 inspections of critical equipment, using industry best practices to ensure that even the slightest variation in equipment was identified, analyzed, and if necessary, repaired.
About Indian Point and Entergy
Indian Point Energy Center, in Buchanan, N.Y., is home to two operating nuclear power plants, unit 2 and unit 3, which generate approximately 2000 megawatts of electricity for homes, business and public facilities in New York City and Westchester County. Since acquiring Indian Point, Entergy has invested over $1 billion in plant equipment.
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
Indian Point Energy Center's online address is www.safesecurevital.com.
Entergy's online address is www.entergy.com.
Twitter: @Indian_Point
Facebook: Facebook.com/IndianPointEnergy
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SOURCE Entergy Corporation
Article Date
3/29/20163/7/2016 - Wired for growth!
Wired for growth!
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BATON ROUGE, La., March 7, 2016 /PRNewswire/ -- Entergy officials joined with business and community leaders and elected officials at the Nelson Power Station in Westlake today to "cut the wire" on one of the largest single transmission projects in Entergy's history.
The wire-cutting ceremony officially launched construction of Entergy Louisiana LLC's Lake Charles Transmission Project – a $159 million project that will help bring power to one of the fastest growing areas in the nation in terms of private-sector job growth.
"Today is a testament to the hard work and dedication of many people and months of preparation and approvals," said Phillip May, president and CEO of Entergy Louisiana. "These new transmission lines will help wire this region for the future."
The project, which is expected to be completed in early 2018, involves building 25 total miles of high-voltage transmission lines and the facilities needed to support them, including two new substations and expansion of two existing substations.
The new lines are being constructed to support and enable economic growth in southwest Louisiana, as well as to enhance reliability for existing and future customers.
"We work to keep the lights on 24/7, and this will help us continue to do that," May said. "It also will provide us operational flexibility for serving customers to make sure they get the highest quality of service available."
Once completed, access to lower cost generation will be improved, which could potentially reduce the costs for all customers in the area.
Besides just responding to the industrial expansion the project will provide benefits to existing customers - including residential customers who are moving here for good, high-paying jobs. This not only means more jobs in southwest Louisiana, it means a larger tax base to support community infrastructure, such as schools, parks and roads.
Since 2008, Louisiana Economic Development (LED) has secured projects that are creating more than 91,000 new direct and indirect jobs, as well as more than $62 billion in new capital investment.
Because of this and other industrial growth throughout its service areas, Entergy plans to invest approximately $2 billion in its four states over the next three years in transmission capital projects, including those related to reliability and economic development.
Entergy Louisiana, LLC provides electric service to more than 1 million customers and natural gas service to approximately 93,000 customers in the greater Baton Rouge area. With operations in southern, central and northeastern Louisiana, the company is a subsidiary of Entergy Corporation.
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
Cautionary Note Regarding Forward-Looking Statements
In this news release, and from time to time, Entergy Louisiana 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 of Entergy's capital investment plans over the next three years. Except to the extent required by the federal securities laws, Entergy Louisiana 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 rate proceedings, formula rate plans and other cost recovery mechanisms; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory risks, including any changes resulting from the nuclear crisis in Japan following its catastrophic earthquake and tsunami; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning any of 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 strategic transactions that Entergy or its subsidiaries may undertake, including 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 and (h) economic conditions and conditions in commodity and capital markets during the periods covered by the forward-looking statements.
entergylouisiana.com
facebook.com/EntergyLA
Twitter: @EntergyLA
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SOURCE Entergy Corporation
Article Date
3/7/2016Entergy Corporation Subsidiaries Close Transaction to Buy Union Power Station
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, March 4, 2016 /PRNewswire/ -- Taking a major step toward providing additional efficient, clean energy resources for new and existing customers and modernizing the company's power generation fleet, Entergy Corporation (NYSE: ETR) announced that its subsidiaries, Entergy Arkansas, Inc., Entergy Louisiana, LLC, and Entergy New Orleans, Inc., closed their purchase of the 1,980-megawatt (summer rating) Union Power Station located near El Dorado, Arkansas. The purchase was closed on Thursday.
The Union Power Station, which entered commercial service in 2003, is a highly-efficient, natural gas-fired generating facility. The plant consists of four combined-cycle, gas-fired generating units, or CCGTs, each rated at 495 MW.
In December 2014, the company announced an agreement with Union Power Partners, L.P., an independent power producer wholly-owned by Entegra TC LLC, to acquire the units to help meet increasing resource demands in the region and as part of the company's modernization of its generating fleet. The plant purchase price is approximately $948.0 million ($479/kW), or approximately $237.0 million per unit, subject to adjustments. The purchase price is about half the cost to build a comparable new CCGT facility.
Entergy Arkansas and Entergy New Orleans each acquired one unit and Entergy Louisiana acquired two units.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
Entergy's online address is entergy.com
Facebook.com/entergy
Twitter: @entergy
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SOURCE Entergy Corporation
Article Date
3/4/20162/23/2016 - Entergy's New Website Sells Region to Developers
Entergy's New Website Sells Region to Developers
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, Feb. 23, 2016 /PRNewswire/ -- With a goal of supporting and driving economic growth and prosperity in the rapidly expanding Gulf Coast region, Entergy has developed and launched a freestanding website designed to attract site selectors and companies looking to potentially expand in the four states served by its utilities. The site, GoEntergy.com, will quickly place the Entergy region in the consideration set of these businesses, powering jobs and economic growth in the region.
"We're a one-stop gateway to the United States' largest industrial region," said John Voorhorst, director of Entergy's business development services. "Our website is just one of the first steps in Entergy's strategy to attract business and industry that will provide increased employment and economic opportunities for the citizens we serve."
Entergy actively participates in the region's economic development process and works closely with state agencies and local communities to promote economic growth. The new website provides companies with access to essential information to locate, expand and promote their company in Arkansas, Louisiana, Mississippi and Texas. It also supports the efforts of Entergy's business development teams, which provide companies with services in site selection, project management, large projects and contracts.
The site contains detailed regional information, showcases featured sites and provides relevant news for key industries.
"We are constantly improving our economic development efforts," Voorhorst added, "and our website is just one component within a suite of digital tools Entergy has under development to meet the needs of businesses, economic developers and the communities we serve. We will continue to play an integral role in the ongoing industrial expansion taking place in our own backyard."
To tour the site and learn more about Entergy's economic development efforts, visit GoEntergy.com.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
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SOURCE Entergy Corporation
Article Date
2/23/20162/18/2016 - Entergy Reports Fourth Quarter And Full Year Earnings, Initiates 2016 Operational Earnings Guidance
Entergy Reports Fourth Quarter And Full Year Earnings, Initiates 2016 Operational Earnings Guidance
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, Feb. 18, 2016 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported fourth quarter 2015 earnings per share of 56 cents on an as-reported basis and $1.58 on an operational basis. For the full year, the company realized a loss of 99 cents per share on an as-reported basis and operational EPS of $6.00 per share. The as-reported loss resulted from asset impairments in the third and fourth quarters reflecting the effects of strategic decisions in the Entergy Wholesale Commodities business to reduce the company's exposure to volatile and poorly structured wholesale power markets.
"In 2015, we successfully worked through an extensive to-do list aimed at laying the foundation for steady and predictable Utility, Parent & Other earnings growth and improving certainty in our merchant generation business. Some of these actions, while necessary, were difficult for our stakeholders and impacted our as-reported financial results for the year," said Entergy chairman and chief executive officer Leo Denault. "On an operational basis, our final 2015 results are in line with the expectations we shared with you last fall. We are also initiating 2016 guidance indicating strong Utility growth in large part due to the strategic accomplishments of last year, again consistent with indications on Utility, Parent & Other growth since the middle of last year and the ranges we gave at our last Analyst Day in 2014."
Additional business highlights included the following:
|
Consolidated Earnings (GAAP and Non-GAAP measures) | ||||||
|
Fourth Quarter and Year-to-Date 2015 vs. 2014 (See Appendix A for reconciliation of GAAP to non-GAAP measures) | ||||||
|
Fourth Quarter |
Year-to-Date | |||||
|
2015 |
2014 |
Change |
2015 |
2014 |
Change | |
|
As-Reported Earnings (Loss) ($ in millions) |
99.6 |
120.1 |
(20.6) |
(176.6) |
940.7 |
(1,117.3) |
|
Less Special Items |
(183.0) |
(15.2) |
(167.8) |
(1,252.4) |
(109.4) |
(1,143.0) |
|
Operational Earnings |
282.6 |
135.3 |
147.3 |
1,075.9 |
1,050.0 |
25.8 |
|
Weather Impact |
(6.1) |
9.6 |
(15.7) |
34.6 |
12.8 |
21.8 |
|
As-Reported Earnings (Loss) (per share in $) |
0.56 |
0.66 |
(0.10) |
(0.99) |
5.22 |
(6.21) |
|
Less: Special Items |
(1.02) |
(0.09) |
(0.93) |
(6.99) |
(0.61) |
(6.38) |
|
Operational Earnings |
1.58 |
0.75 |
0.83 |
6.00 |
5.83 |
0.17 |
|
Weather Impact |
(0.03) |
0.05 |
(0.08) |
0.19 |
0.07 |
0.12 |
|
Totals may not foot due to rounding |
Business Unit Results
In addition to the summary business unit discussions below and results provided in Appendix A, a comprehensive analysis of quarterly and year-to-date variances is provided in Appendix B to this release. Appendix A also provides information on operating cash flow by business.
Utility, Parent & Other Results
For fourth quarter 2015, Utility, Parent and Other EPS were $1.42 on an as-reported and an operational basis. In comparison, 2014 fourth quarter earnings were 35 cents per share on an as-reported basis and 36 cents per share on an operational basis. Operational results for the 2015 quarterly period included a significant income tax item, a portion of which will be shared with customers of Entergy Louisiana, LLC. The quarter's results also reflected the effects of productive investments as well as milder weather, charges reflecting progress in resolving long outstanding regulatory matters and higher operating expenses.
Billed retail sales volume decreased (1.1) percent quarter-to-quarter on the effects of weather. On a weather-adjusted basis, billed volume increased 0.8 percent; the components of the weather-adjusted sales growth were:
Industrial sales were higher on continued growth for new and expansion customers. Sales to existing industrial customers declined on lower usage from large chlor-alkali customers, due to both outages as well as softer economics. Partially offsetting was favorable macro conditions for existing petroleum refining customers who operated at high levels.
Utility results reflected rate adjustments for the Ninemile Point Unit 6 plant that went in service at the end of 2014 and the Entergy Mississippi, Inc. rate case. Revenue increases from rate actions were largely offset by changes in other line items (e.g., non-fuel operation and maintenance and depreciation expenses).
For the full year, 2015 Utility, Parent and Other EPS were $4.97 on an as-reported and an operational basis. In comparison, 2014 earnings were $3.60 per share on an as-reported basis and $3.64 per share on an operational basis. Operational results for 2015 included significant income tax items, as discussed above. Results also reflected productive investments and favorable weather, as well as higher operating expenses.
For a schedule of Utility, Parent & Other Adjusted EPS for the quarter and full year excluding special items and weather, normalizing tax items and excluding utility charges, see Appendix C. Appendix C also contains additional details on the Utility's performance for both periods.
Entergy Wholesale Commodities Results
EWC operational adjusted earnings before interest, taxes, depreciation and amortization were $70 million in fourth quarter 2015, compared to $183 million in the same period a year ago. The quarter-over-quarter decrease was driven largely by lower energy and capacity prices for EWC's nuclear assets. Quarter-over-quarter results were also affected by impairments of FitzPatrick and Pilgrim recorded in third quarter 2015 which lowered fuel and non-fuel O&M expenses.
|
EWC Operational Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures | ||||||
|
Fourth Quarter and Year-to-Date 2015 vs. 2014 | ||||||
|
($ in millions) |
Fourth Quarter |
Year-to-Date | ||||
|
2015 |
2014 |
Change |
2015 |
2014 |
Change | |
|
Net income |
(154) |
58 |
(212) |
(1,066) |
295 |
(1,361) |
|
Add back: interest expense |
8 |
5 |
3 |
27 |
17 |
10 |
|
Add back: income tax expense |
(123) |
36 |
(159) |
(610) |
177 |
(787) |
|
Add back: depreciation and amortization |
53 |
63 |
(10) |
239 |
276 |
(37) |
|
Subtract: interest and investment income |
33 |
37 |
(4) |
149 |
114 |
35 |
|
Add back: decommissioning expense |
36 |
38 |
(2) |
138 |
142 |
(4) |
|
Adjusted EBITDA |
(213) |
162 |
(375) |
(1,421) |
792 |
(2,213) |
|
Add back pre-tax special items for: |
||||||
|
HCM implementation |
- |
1 |
(1) |
- |
3 |
(3) |
|
Decisions to close VY, FitzPatrick and Pilgrim |
5 |
20 |
(15) |
1,658 |
154 |
1,504 |
|
Palisades asset impairment and related write-offs |
396 |
- |
396 |
396 |
- |
396 |
|
Top Deer investment impairment |
37 |
- |
37 |
37 |
- |
37 |
|
Gain on the sale of RISEC |
(154) |
- |
(154) |
(154) |
- |
(154) |
|
Operational adjusted EBITDA |
70 |
183 |
(113) |
515 |
950 |
(435) |
|
Totals may not foot due to rounding |
EWC reported an as-reported loss of (86) cents per share in the current quarter compared to a fourth quarter 2014 as-reported EPS of 31 cents. Fourth quarter 2015 as-reported results included non-cash asset impairments for Palisades and EWC's wind investment, which were classified as a special item and therefore, excluded from operational results. The impairment charges resulted from analyzing EWC's remaining assets for impairment in light of Entergy's decisions to operate its other northern U.S. single unit nuclear sites for a shorter period than their operating license expiration dates and the sale of non-nuclear assets in the fourth quarter 2015. Depressed market prices were a significant factor in the analysis resulting in impairment charges for Palisades and the wind investment. The Palisades impairment does not reflect any decision to modify the continuing operations of the plant, which operates under a power purchase agreement that runs until April 2022. The sale of RISEC (a non-nuclear asset) in the current quarter resulted in a 56 cent per share gain, which is also classified as a special and excluded from operational results.
Fourth quarter 2015 EWC operational earnings were 16 cents per share, compared to 39 cents per share in the fourth quarter 2014. This decline was driven by lower operational adjusted EBITDA. The current quarter results also included income tax items.
For the year, EWC reported a loss of $5.96 per share on an as-reported basis and earnings of $1.03 per share on an operational basis, compared to as-reported EPS of $1.62 and operational EPS of $2.19 in 2014. The decline in operational earnings was driven by lower energy and capacity revenue for the nuclear fleet, which is also reflected in the lower operational adjusted EBITDA. The closure of VY at the end of 2014 also contributed to the reduced operational adjusted EBITDA and operational EPS.
For additional details on EWC's performance for the quarter and full year, see Appendix D and the webcast slide presentation.
Earnings Guidance
Entergy is initiating 2016 operational earnings guidance in the range of $4.95 to $5.75 per share. The Utility, Parent & Other Adjusted EPS guidance range is $4.20 to $4.50. See the webcast slide presentation for additional details.
Earnings Teleconference
A teleconference will be held at 10 a.m. CT on Thursday, Feb. 18, 2016, to discuss Entergy's fourth quarter and full year 2015 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 (855) 893-9849, conference ID 85410755, no more than 15 minutes prior to the start of the call. The webcast slide presentation is also posted to Entergy's website concurrent with this release, which was issued before market open on the day of the call. A replay of the teleconference will be available on Entergy's website at www.entergy.com and by telephone. The telephone replay will be available through Feb. 25, 2016, by dialing (855) 859-2056, conference ID 85410755. This release and the webcast slide presentation are also available on the Entergy Investor Relations mobile web app at iretr.com.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.
Entergy Corporation's common stock is listed on the New York and Chicago exchanges under the symbol "ETR."
Additional information regarding Entergy's quarterly and full year results of operations, regulatory proceedings and other matters is available in Entergy's earnings release package, a copy of which will be filed with the U.S. Securities and Exchange Commission, and the webcast slide presentation. The earnings package contains appendices to this release and financial statements. Both the earnings release package and webcast slide presentation are available on Entergy's Investor Relations website at www.entergy.com/investor_relations and on Entergy's Investor Relations mobile web app at iretr.com.
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, Entergy's 2016 earnings guidance, its current financial and operational outlook, and other statements of Entergy's plans, beliefs or expectations included in 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 rate proceedings, formula rate plans and other cost recovery mechanisms; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory risks, including any changes resulting from the nuclear crisis in Japan following its catastrophic earthquake and tsunami; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning FitzPatrick, Pilgrim or VY or any of Entergy's other 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 strategic transactions that Entergy or its subsidiaries may undertake, including the pending acquisition of the Union Power Station near El Dorado, Arkansas, including 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 and (h) economic conditions and conditions in commodity and capital markets during the periods covered by the forward-looking statements.
For definitions of certain operational performance measures, as well as GAAP and non-GAAP financial measures and abbreviations and acronyms used in the quarterly materials, see Appendix F and Appendix G.
Fourth Quarter 2015 Earnings Release Package
Appendices
Seven appendices are presented in this section as follows:
Also included in this earnings release package are:
Accompanying the earnings package is a webcast slide presentation.
A: Consolidated Results and Special Items
Appendix A-1 provides a comparative summary of consolidated EPS for fourth quarter and year-to-date 2015 versus 2014, including a reconciliation of GAAP as-reported earnings to non-GAAP operational earnings.
|
Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures Fourth Quarter and Year-to-Date 2015 vs. 2014 (See Appendix A-3 and Appendix A-4 for details on special items) | ||||||
|
(Per share in $) | ||||||
|
Fourth Quarter |
Year-to-Date | |||||
|
2015 |
2014 |
Change |
2015 |
2014 |
Change | |
|
As-Reported |
||||||
|
Utility |
1.75 |
0.60 |
1.15 |
6.12 |
4.60 |
1.52 |
|
Parent & Other |
(0.33) |
(0.25) |
(0.08) |
(1.15) |
(1.00) |
(0.15) |
|
EWC |
(0.86) |
0.31 |
(1.17) |
(5.96) |
1.62 |
(7.58) |
|
Consolidated As-Reported Earnings (Loss) |
0.56 |
0.66 |
(0.10) |
(0.99) |
5.22 |
(6.21) |
|
Less Special Items |
||||||
|
Utility |
- |
(0.01) |
0.01 |
- |
(0.04) |
0.04 |
|
Parent & Other |
- |
- |
- |
- |
- |
- |
|
EWC |
(1.02) |
(0.08) |
(0.94) |
(6.99) |
(0.57) |
(6.42) |
|
Consolidated Special Items |
(1.02) |
(0.09) |
(0.93) |
(6.99) |
(0.61) |
(6.38) |
|
Operational |
||||||
|
Utility |
1.75 |
0.61 |
1.14 |
6.12 |
4.64 |
1.48 |
|
Parent & Other |
(0.33) |
(0.25) |
(0.08) |
(1.15) |
(1.00) |
(0.15) |
|
EWC |
0.16 |
0.39 |
(0.23) |
1.03 |
2.19 |
(1.16) |
|
Consolidated Operational Earnings |
1.58 |
0.75 |
0.83 |
6.00 |
5.83 |
0.17 |
|
Weather Impact |
(0.03) |
0.05 |
(0.08) |
0.19 |
0.07 |
0.12 |
Detailed earnings variance analyses are included in Appendix B-1 and Appendix B-2.
Appendix A-2 provides the components of OCF contributed by each business with current quarter and year-to-date comparisons.
|
Appendix A-2: Consolidated Operating Cash Flow | ||||||
|
Fourth Quarter and Year-to-Date 2015 vs. 2014 | ||||||
|
($ in millions) | ||||||
|
Fourth Quarter |
Year-to-Date | |||||
|
2015 |
2014 |
Change |
2015 |
2014 |
Change | |
|
Utility |
858 |
1,076 |
(218) |
2,907 |
3,319 |
(412) |
|
Parent & Other |
3 |
(256) |
259 |
(78) |
(463) |
385 |
|
EWC |
81 |
178 |
(97) |
462 |
1,034 |
(572) |
|
Total Operating Cash Flow |
942 |
998 |
(56) |
3,291 |
3,890 |
(599) |
|
Totals may not foot due to rounding |
The primary driver of the $(56) million quarter-over-quarter decrease was lower EWC net revenue, partially offset by lower pension funding. Favorable changes in the timing of working capital at the Utility primarily in deferred fuel from low natural gas prices were largely offset by unfavorable changes in working capital at EWC. Intercompany income tax payments contributed to the line of business variances, but netted to a small number at the consolidated level.
The primary drivers of the year-over-year $(599) million decrease were lower EWC net revenue and receipt of securitization funds in 2014. Favorable deferred fuel changes at the Utility also benefitted the full year period. Intercompany income tax payments affected line of business variances but had a small bottom-line impact.
Appendix A-3 and Appendix A-4 list special items by business. Amounts are shown on both an EPS basis and a net income basis. Special items are those events that are not routine. Special items are included in as-reported EPS consistent with GAAP, but are excluded from operational EPS. As a result, operational EPS is considered a non-GAAP measure.
|
Appendix A-3: Special Items by Driver (shown as positive/(negative) impact on EPS) | ||||||
|
Fourth Quarter and Year-to-Date 2015 vs. 2014 | ||||||
|
(After-tax, per share in $) | ||||||
|
Fourth Quarter |
Year-to-Date | |||||
|
2015 |
2014 |
Change |
2015 |
2014 |
Change | |
|
Utility |
||||||
|
HCM implementation expenses |
- |
(0.01) |
0.01 |
- |
(0.04) |
0.04 |
|
Total Utility |
- |
(0.01) |
0.01 |
- |
(0.04) |
0.04 |
|
EWC |
||||||
|
HCM implementation expenses |
- |
- |
- |
- |
(0.01) |
0.01 |
|
Decisions to close VY, FitzPatrick and Pilgrim |
(0.02) |
(0.08) |
0.06 |
(5.99) |
(0.56) |
(5.43) |
|
Palisades asset impairment and related write-offs |
(1.43) |
- |
(1.43) |
(1.43) |
- |
(1.43) |
|
Top Deer investment impairment |
(0.13) |
- |
(0.13) |
(0.13) |
- |
(0.13) |
|
Gain on the sale of RISEC |
0.56 |
- |
0.56 |
0.56 |
- |
0.56 |
|
Total EWC |
(1.02) |
(0.08) |
(0.94) |
(6.99) |
(0.57) |
(6.42) |
|
Total Special Items |
(1.02) |
(0.09) |
(0.93) |
(6.99) |
(0.61) |
(6.38) |
|
Appendix A-4: Special Items by Income Statement Line Item (shown as positive/(negative) impact on earnings) | ||||||
|
Fourth Quarter and Year-to-Date 2015 vs. 2014 | ||||||
|
(Pre-tax except for Income taxes - other, $ in millions) | ||||||
|
Fourth Quarter |
Year-to-Date | |||||
|
2015 |
2014 |
Change |
2015 |
2014 |
Change | |
|
Utility |
||||||
|
Non-fuel O&M |
- |
(2.4) |
2.4 |
- |
(12.6) |
12.6 |
|
Taxes other than income taxes |
- |
(0.1) |
0.1 |
- |
(0.6) |
0.6 |
|
Income taxes - other |
- |
1.0 |
(1.0) |
- |
5.6 |
(5.6) |
|
Total Utility |
- |
(1.5) |
1.5 |
- |
(7.6) |
7.6 |
|
EWC |
||||||
|
Non-fuel O&M |
(6.2) |
(19.1) |
12.9 |
(17.0) |
(46.8) |
29.8 |
|
Taxes other than income taxes |
(0.5) |
(1.4) |
0.9 |
(0.3) |
(3.6) |
3.3 |
|
Asset write-off and impairments |
(394.0) |
(0.6) |
(393.4) |
(2,036.2) |
(107.5) |
(1,928.7) |
|
Gain on sale of asset |
154.0 |
- |
154.0 |
154.0 |
- |
154.0 |
|
Miscellaneous net (other income) |
(36.8) |
- |
(36.8) |
(36.8) |
- |
(36.8) |
|
Income taxes - other |
100.4 |
7.4 |
93.0 |
683.8 |
56.1 |
627.7 |
|
Total EWC |
(183.0) |
(13.7) |
(169.3) |
(1,252.4) |
(101.8) |
(1,150.6) |
|
Total Special Items |
(183.0) |
(15.2) |
(167.8) |
(1,252.4) |
(109.4) |
(1,143.0) |
|
Totals may not foot due to rounding |
B: Variance Analysis
Appendix B-1 and Appendix B-2 provide details of current quarter and year-to-date 2015 versus 2014 as-reported and operational earnings variance analysis for Utility, EWC, Parent & Other and Consolidated.
|
Appendix B-1: As-Reported and Operational EPS Variance Analysis | |||||||||||
|
Fourth Quarter 2015 vs. 2014 | |||||||||||
|
(After-tax, per share in $, sorted in consolidated operational column, most to least favorable) | |||||||||||
|
Utility |
Parent & Other |
EWC |
Consolidated | ||||||||
|
As-Reported |
Opera-tional |
As-Reported |
Opera-tional |
As- Reported |
Opera-tional |
As- Reported |
Opera-tional | ||||
|
2014 earnings |
0.60 |
0.61 |
(0.25) |
(0.25) |
0.31 |
0.39 |
0.66 |
0.75 | |||
|
Income taxes - other |
1.96 |
1.96 |
(a) |
(0.04) |
(0.04) |
0.14 |
0.14 |
(b) |
2.06 |
2.06 | |
|
Non-fuel O&M |
(0.01) |
(0.02) |
- |
- |
0.13 |
0.08 |
(c) |
0.12 |
0.06 | ||
|
Share effect |
0.03 |
0.03 |
(0.01) |
(0.01) |
- |
- |
0.02 |
0.02 | |||
|
Gain on sale of asset |
- |
- |
- |
- |
0.56 |
- |
(d) |
0.56 |
- | ||
|
Interest expense and other charges |
0.01 |
0.01 |
- |
- |
(0.01) |
(0.01) |
- |
- | |||
|
Decommissioning expense |
(0.01) |
(0.01) |
- |
- |
- |
- |
(0.01) |
(0.01) | |||
|
Depreciation/amortization expense |
(0.05) |
(0.05) |
(e) |
- |
- |
0.04 |
0.04 |
(0.01) |
(0.01) | ||
|
Taxes other than income taxes |
(0.05) |
(0.05) |
(f) |
- |
- |
0.02 |
0.01 |
(0.03) |
(0.04) | ||
|
Other income (deductions)-other |
(0.02) |
(0.02) |
(0.03) |
(0.03) |
(0.14) |
(0.01) |
(g) |
(0.19) |
(0.06) | ||
|
Asset write-offs and impairments |
(0.19) |
(0.19) |
(h) |
- |
- |
(1.43) |
- |
(i) |
(1.62) |
(0.19) | |
|
Net revenue |
(0.52) |
(0.52) |
(j) |
- |
- |
(0.48) |
(0.48) |
(k) |
(1.00) |
(1.00) | |
|
2015 earnings |
1.75 |
1.75 |
(0.33) |
(0.33) |
(0.86) |
0.16 |
0.56 |
1.58 | |||
|
Appendix B-2: As-Reported and Operational EPS Variance Analysis | |||||||||||
|
Year-to-Date 2015 vs. 2014 | |||||||||||
|
(After-tax, per share in $, sorted in consolidated operational column, most to least favorable) | |||||||||||
|
Utility |
Parent & Other |
EWC |
Consolidated | ||||||||
|
As-Reported |
Opera-tional |
As-Reported |
Opera-tional |
As- Reported |
Opera-tional |
As- Reported |
Opera-tional | ||||
|
2014 earnings |
4.60 |
4.64 |
(1.00) |
(1.00) |
1.62 |
2.19 |
5.22 |
5.83 | |||
|
Income taxes - other |
2.08 |
2.08 |
(a) |
(0.07) |
(0.07) |
(l) |
0.11 |
0.11 |
(b) |
2.12 |
2.12 |
|
Asset write-offs and impairments |
0.04 |
0.04 |
- |
- |
(6.97) |
- |
(i) |
(6.93) |
0.04 | ||
|
Other income (deductions) - other |
0.01 |
0.01 |
(0.09) |
(0.09) |
(m) |
(0.02) |
0.11 |
(g) |
(0.10) |
0.03 | |
|
Share effect |
0.03 |
0.03 |
- |
- |
- |
- |
0.03 |
0.03 | |||
|
Gain on sale of asset |
- |
- |
- |
- |
0.56 |
- |
(d) |
0.56 |
- | ||
|
Decommissioning expense |
(0.04) |
(0.04) |
- |
- |
0.01 |
0.01 |
(0.03) |
(0.03) | |||
|
Taxes other than income taxes |
(0.12) |
(0.12) |
(f) |
- |
- |
0.07 |
0.06 |
(n) |
(0.05) |
(0.06) | |
|
Depreciation/amortization expense |
(0.19) |
(0.19) |
(e) |
0.01 |
0.01 |
0.12 |
0.12 |
(o) |
(0.06) |
(0.06) | |
|
Interest expense and other charges |
(0.04) |
(0.04) |
0.02 |
0.02 |
(0.04) |
(0.04) |
(0.06) |
(0.06) | |||
|
Non-fuel O&M |
(0.57) |
(0.61) |
(p) |
(0.01) |
(0.01) |
0.48 |
0.37 |
(c) |
(0.10) |
(0.25) | |
|
Net revenue |
0.32 |
0.32 |
(j) |
(0.01) |
(0.01) |
(1.90) |
(1.90) |
(k) |
(1.59) |
(1.59) | |
|
2015 earnings |
6.12 |
6.12 |
(1.15) |
(1.15) |
(5.96) |
1.03 |
(0.99) |
6.00 | |||
|
See appendix in the webcast slide presentation for more details on the effects of the VY closure on EWC line item variances. | |
|
(a) |
The current quarter and year-to-date increases were due primarily to the income tax item of approximately $334 million resulting from the ELL business combination; this was partly offset by customer sharing recorded as a regulatory charge (included in net revenue in (j)). An audit settlement in Mississippi of $15 million also contributed to the increases. The year-to-date increase also reflected a first quarter 2015 adjustment of $24 million involving the reversal of a portion of the provision for uncertain tax provisions related to interest accrual. Partially offsetting was a state income tax item of $10 million in third quarter 2014. |
|
(b) |
The increases in the current quarter and year-to-date periods were due largely to state tax effects from the 2015 settlement on the 2008/2009 audit. |
|
(c) |
The current quarter and year-to-date increases were attributable to the closure of VY at the end of 2014. |
|
(d) |
The as-reported increases in the current quarter and year-to-date periods reflect the gain on sale of the RISEC facility. |
|
(e) |
The current quarter and year-to-date decreases were due primarily to additions to plant, including Ninemile 6 placed in service in December 2014, as well as higher depreciation rates implemented at EMI for 2015. |
|
(f) |
The decreases in the current quarter and year-to-date periods were due partly to higher ad valorem taxes. In addition, fourth quarter 2014 results reflected the franchise tax settlement in Louisiana. |
|
(g) |
The as-reported decrease in the current quarter was due largely to the asset impairment on EWC's 50% ownership interest in the Top Deer wind generation investment (accounted for under the equity method of accounting). The year-to-date operational increase was due primarily to higher realized gains on decommissioning trusts, including the rebalancing of VY's decommissioning trust portfolio. |
|
(h) |
The current quarter decrease was driven by regulatory charges arising from the Waterford 3 replacement steam generator prudence review proceeding and the System Agreement termination settlement agreement. Partially offsetting was an earlier regulatory charge in 2014 for the Waterford 3 prudence review proceeding. |
|
(i) |
The as-reported current quarter and year-to-date decreases reflected the fourth quarter 2015 non-cash impairment charges and related write-offs for the Palisades nuclear plant. The year-to date decrease also reflected third quarter 2015 impairment charges and related write-offs for the Pilgrim and FitzPatrick plants. Partially offsetting the year-to-date decrease was a third quarter 2014 charge for an updated VY decommissioning cost study. |
|
(j) |
The current quarter decrease was attributable to the fourth quarter 2015 ELL business combination regulatory charge for customer sharing of $0.37 per share and the regulatory charge for the Waterford 3 prudence review proceeding of $0.09 per share (a portion of which is reflected in asset impairment in (h)). The effects of weather, which was milder-than-normal in the current quarter compared to colder-than-normal in fourth quarter 2014, also contributed. Weather for the full year was positive in both periods, but more favorable in 2015 compared to 2014. Annual net revenue was higher due to increased weather-adjusted sales volume and the Louisiana FRP rate adjustments for placing Ninemile 6 in rates and the EMI rate case. |
|
(k) |
The current quarter and year-to-date decreases were largely due to the retirement of VY at the end of 2014 along with lower realized nuclear capacity and energy pricing on the operating plants. |
|
(l) |
The decrease in the year-to-date period was primarily the result of a Louisiana tax law change effective July 1, 2015. |
|
(m) |
The year-to-date decrease is due to the elimination of intersegment activity, primarily higher affiliate dividend income resulting from Hurricane Isaac Act 55 financing (offset at Utility). |
|
(n) |
The increase year-to-date is attributable largely to lower VY property taxes due to the plant's closure in late 2014. |
|
(o) |
The year-to-date increase was mainly attributable to the absence of VY depreciation. Lower depreciation expense resulting from the third quarter 2015 nuclear plant impairments also contributed. |
|
(p) |
The year-to-date decrease reflected higher nuclear expenses, including regulatory compliance costs resulting from the NRC's decision to move ANO into Column 4 of the reactor oversight process action matrix ($53 million pre-tax). Pension and OPEB and distribution reliability expenses were also higher. Other non-fuel O&M changes with offsets in net revenue in the current and year-to date periods included transmission costs allocated by MISO and energy efficiency program costs. |
C: Utility Financial and Performance Measures
Appendix C-1 provides a comparative summary of Utility, Parent & Other Adjusted EPS, excluding the effects of special items and weather and normalizing tax items for the fourth quarter and full year periods. Appendix C-1 also provides Utility, Parent & Other Adjusted EPS excluding the effects of charges from resolving long outstanding regulatory matters.
|
Appendix C-1: Utility, Parent & Other Adjusted EPS - Reconciliation of GAAP to Non-GAAP Measures | ||||||
|
Fourth Quarter and Year-to-Date 2015 vs. 2014 (See Appendix A for details on special items) | ||||||
|
(per share in $) |
Fourth Quarter |
Year-to-Date | ||||
|
2015 |
2014 |
Change |
2015 |
2014 |
Change | |
|
As-Reported Earnings |
1.42 |
0.35 |
1.07 |
4.97 |
3.60 |
1.37 |
|
Less: |
||||||
|
Special Items |
- |
(0.01) |
0.01 |
- |
(0.04) |
0.04 |
|
Weather |
(0.03) |
0.05 |
(0.08) |
0.19 |
0.07 |
0.12 |
|
Tax Items, net of customer sharing |
1.57 |
0.03 |
1.54 |
1.70 |
0.09 |
1.61 |
|
Adjusted Earnings (Loss) |
(0.12) |
0.28 |
(0.40) |
3.08 |
3.48 |
(0.40) |
|
Less: Regulatory Charges |
(0.35) |
(0.05) |
(0.30) |
(0.35) |
(0.28) |
(0.07) |
|
Adjusted Earnings, excluding Regulatory Charges (q) |
0.23 |
0.33 |
(0.10) |
3.43 |
3.76 |
(0.33) |
|
(q) |
Reflects charges for System Agreement termination settlement agreement (fourth quarter and year-to-date 2015), the Waterford 3 replacement steam generator prudence review proceeding (fourth quarter and year-to-date 2014 and fourth quarter and year-to-date 2015) and the EMI rate case settlement (2014), accounted for on multiple income statement line items. |
Appendix C-2 provides a comparative summary of Utility operational performance measures.
|
Appendix C-2: Utility Operational Performance Measures | |||||||
|
Fourth Quarter and Year-to-Date 2015 vs. 2014 (See Appendix G for reconciliation of GAAP to non-GAAP measures) | |||||||
|
Fourth Quarter |
Year-to-Date | ||||||
|
2015 |
2014 |
% Change |
% Weather Adjusted (r) |
2015 |
2014 |
% Change | |
|
GWh billed |
|||||||
|
Residential |
7,385 |
7,770 |
(4.9) |
1.6 |
36,068 |
35,932 |
0.4 |
|
Commercial |
6,979 |
6,984 |
(0.1) |
(0.1) |
29,348 |
28,827 |
1.8 |
|
Governmental |
627 |
599 |
4.7 |
4.2 |
2,514 |
2,428 |
3.5 |
|
Industrial |
11,152 |
11,087 |
0.6 |
0.6 |
44,382 |
43,723 |
1.5 |
|
Total Retail Sales |
26,143 |
26,440 |
(1.1) |
0.8 |
112,312 |
110,910 |
1.3 |
|
Wholesale |
1,739 |
3,105 |
(44.0) |
9,274 |
9,462 |
(2.0) | |
|
Total Sales |
27,882 |
29,545 |
(5.6) |
121,586 |
120,372 |
1.0 | |
|
Weather-adjusted GWh billed (r) |
|||||||
|
Residential |
35,413 |
35,188 |
0.6 | ||||
|
Commercial |
29,022 |
28,907 |
0.4 | ||||
|
Governmental |
2,509 |
2,430 |
3.2 | ||||
|
Industrial |
44,382 |
43,723 |
1.5 | ||||
|
Total Retail Sales |
111,326 |
110,248 |
1.0 | ||||
|
Number of electric retail customers |
|||||||
|
Residential |
2,431,984 |
2,409,732 |
0.9 | ||||
|
Commercial |
348,840 |
345,008 |
1.1 | ||||
|
Governmental |
17,899 |
17,373 |
3.0 | ||||
|
Industrial |
46,572 |
46,177 |
0.9 | ||||
|
Total Retail Customers |
2,845,295 |
2,818,290 |
1.0 | ||||
|
Net Revenue ($ millions) |
1,181 |
1,334 |
(11.5) |
5,829 |
5,735 |
1.6 | |
|
As-reported non-fuel O&M per MWh |
$24.05 |
$22.57 |
6.6 |
$21.06 |
$19.89 |
5.9 | |
|
Operational non-fuel O&M per MWh |
$24.05 |
$22.48 |
7.0 |
$21.06 |
$19.79 |
6.4 | |
|
(r) |
The effects of weather are estimated using monthly heating degree days and cooling degree days 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 subject to change. |
|
See appendix in the webcast slide presentation for information on select regulatory cases. |
D: EWC Performance Measures
Appendix D-1 provides a comparative summary of EWC operational performance measures.
|
Appendix D-1: EWC Operational Performance Measures | ||||||
|
Fourth Quarter and Year-to-Date 2015 vs. 2014 (See Appendix G for reconciliation of GAAP to non-GAAP measures) | ||||||
|
Fourth Quarter |
Year-to-Date | |||||
|
2015 |
2014 |
% Change |
2015 |
2014 |
% Change | |
|
Owned capacity (MW) (s) |
4,880 |
6,068 |
(19.6) |
4,880 |
6,068 |
(19.6) |
|
GWh billed |
10,135 |
11,550 |
(12.3) |
39,745 |
44,424 |
(10.5) |
|
As-reported average total revenue per MWh |
$45.21 |
$54.00 |
(16.3) |
$51.88 |
$61.21 |
(15.2) |
|
Adjusted average total revenue per MWh (t) |
$44.83 |
$53.64 |
(16.4) |
$51.49 |
$60.84 |
(15.4) |
|
Net revenue ($ millions) |
379 |
521 |
(27.3) |
1,666 |
2,224 |
(25.1) |
|
As-reported non-fuel O&M per MWh |
$27.67 |
$27.44 |
0.8 |
$25.99 |
$26.39 |
(1.5) |
|
Operational non-fuel O&M per MWh (u) |
$27.06 |
$25.78 |
5.0 |
$25.57 |
$25.34 |
0.9 |
|
EWC Nuclear Fleet |
||||||
|
Capacity factor |
94% |
95% |
(1.1) |
91% |
91% |
- |
|
GWh billed |
9,561 |
10,635 |
(10.1) |
35,859 |
40,253 |
(10.9) |
|
As-reported average total revenue per MWh |
$44.71 |
$53.56 |
(16.5) |
$51.49 |
$60.76 |
(15.3) |
|
Adjusted average total revenue per MWh (v) |
$44.31 |
$53.17 |
(16.7) |
$51.07 |
$60.35 |
(15.4) |
|
Production cost per MWh |
$22.63 |
$26.18 |
(13.6) |
$25.30 |
$26.44 |
(4.3) |
|
Net revenue ($ millions) |
371 |
506 |
(26.7) |
1,613 |
2,166 |
(25.5) |
|
Refueling outage days |
||||||
|
FitzPatrick |
- |
7 |
- |
44 |
||
|
Indian Point 2 |
- |
- |
- |
24 |
||
|
Indian Point 3 |
- |
- |
23 |
- |
||
|
Palisades |
19 |
- |
32 |
56 |
||
|
Pilgrim |
- |
- |
34 |
- |
||
|
(s) |
Fourth quarter and year-to-date 2015 exclude VY (605 MW) that was shut down in December 2014 and RISEC (583 MW) that was sold in December 2015. |
|
(t) |
Excluding VY, $54.26/MWh and $60.65/MWh in fourth quarter and year-to-date 2014 periods, respectively. |
|
(u) |
Excluding VY, $25.45/MWh and $24.80/MWh in fourth quarter and year-to-date 2014 periods, respectively. |
|
(v) |
Excluding VY, $53.79/MWh and $60.07/MWh in fourth quarter and year-to-date 2014 periods, respectively. |
|
See appendix in the webcast slide presentation for EWC hedging and price disclosures. |
E: Financial Performance Measures
Appendix E provides comparative financial performance measures for the current quarter. Financial performance measures in this table include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP measures.
As-reported measures are computed in accordance with GAAP as they include all components of net income, including special items. Operational measures are non-GAAP measures as they are calculated using operational net income, which excludes the impact of special items.
|
Appendix E: GAAP and Non-GAAP Financial Performance Measures | ||||
|
Fourth Quarter 2015 vs. 2014 (See Appendix G for reconciliation of GAAP to non-GAAP measures) | ||||
|
For 12 months ending Dec. 31 |
2015 |
2014 |
Change | |
|
GAAP Measures |
||||
|
ROIC - as-reported |
1.0% |
5.6% |
(4.6%) | |
|
ROE - as-reported |
(1.8%) |
9.6% |
(11.4%) | |
|
Book value per share |
$51.89 |
$55.83 |
($3.94) | |
|
End of period shares outstanding (millions) |
178.4 |
179.2 |
(0.8) | |
|
Non-GAAP Measures |
||||
|
ROIC - operational |
6.3% |
6.1% |
0.2% | |
|
ROE - operational |
11.2% |
10.7% |
0.5% | |
|
As of Dec. 31 ($ in millions) |
2015 |
2014 |
Change | |
|
GAAP Measures |
||||
|
Cash and cash equivalents |
1,351 |
1,422 |
(71) | |
|
Revolver capacity |
3,582 |
3,592 |
(10) | |
|
Commercial paper outstanding |
422 |
484 |
(62) | |
|
Total debt |
13,850 |
13,917 |
(67) | |
|
Securitization debt |
775 |
777 |
(2) | |
|
Debt to capital ratio |
59.1% |
57.4% |
1.7% | |
|
Off-balance sheet liabilities: |
||||
|
Debt of joint ventures - Entergy's share |
77 |
81 |
(4) | |
|
Leases - Entergy's share |
359 |
422 |
(63) | |
|
Power purchase agreements accounted for as leases |
195 |
224 |
(29) | |
|
Total off-balance sheet liabilities |
631 |
727 |
(96) | |
|
Non-GAAP Measures |
||||
|
Debt to capital ratio, excluding securitization debt |
57.7% |
56.0% |
1.7% | |
|
Gross liquidity |
4,933 |
5,014 |
(81) | |
|
Net debt to net capital ratio, excluding securitization debt |
55.0% |
53.2% |
1.8% | |
|
Parent debt to total debt ratio, excluding securitization debt |
21.9% |
20.4% |
1.5% | |
|
Debt to operational adjusted EBITDA, excluding securitization debt |
4.1 |
3.7 |
0.4 | |
|
Operational FFO to debt ratio, excluding securitization debt |
25.7% |
27.8% |
(2.1%) | |
F: Definitions, Abbreviations and Acronyms
Appendix F-1 provides definitions of certain operational performance measures, as well as GAAP and non-GAAP financial measures which are referenced in the quarterly and full year materials. Non-GAAP measures are included in these materials to provide metrics that remove the effect of financial events that are not routine from commonly used financial metrics.
|
Appendix F-1: Definitions | |
|
Utility Operational Performance Measures | |
|
GWh billed |
Total number of GWh billed to all retail and wholesale customers |
|
Net revenue |
Operating revenue less fuel, fuel related expenses and gas purchased for resale, purchased power and other regulatory charges (credits) - net |
|
Non-fuel O&M |
Operation and maintenance expenses excluding fuel, fuel-related expenses and gas purchased for resale and purchased power |
|
Non-fuel O&M per MWh |
Non-fuel O&M per MWh of billed sales |
|
Number of retail customers |
Number of customers at end of period |
|
EWC Operational Performance Measures | |
|
As-reported average total revenue per MWh |
As-reported revenue per MWh billed, excluding revenue from investments in wind generation accounted for under the equity method of accounting |
|
Adjusted average total revenue per MWh |
As-reported average total revenue per MWh, excluding revenue from the amortization of the Palisades below-market PPA |
|
Average revenue under contract per kW per month (applies to capacity contracts only) |
Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and/or auction awards |
|
Average revenue per MWh on contracted volumes |
Revenue on a per unit basis at which generation output reflected in contracts is expected to be sold to third parties (including offsetting positions) at the minimum contract prices and at forward market prices at a point in time, given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market PPA for Palisades; revenue will fluctuate due to factors including market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at the time of option expiration, costs to convert firm LD to unit-contingent and other risk management costs |
|
Bundled capacity and energy contracts |
A contract for the sale of installed capacity and related energy, priced per MWh sold |
|
Capacity contracts |
A contract for the sale of the installed capacity product in regional markets managed by ISO-NE, the NYISO and MISO |
|
Capacity factor |
Normalized percentage of the period that the nuclear plants generate power |
|
Expected sold and market total revenue per MWh |
Total energy and capacity revenue on a per unit basis at which total planned generation output and capacity is expected to be sold given contract terms and market prices at a point in time, including estimates for market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at time of option expiration, costs to convert Firm LD to unit-contingent and other risk management costs, divided by total planned MWh of generation, excluding the revenue associated with the amortization of the Palisades below-market PPA |
|
Firm LD |
Transaction that requires receipt or delivery of energy at a specified delivery point (usually at a market hub not associated with a specific asset) or settles financially on notional quantities; if a party fails to deliver or receive energy, defaulting party must compensate the other party as specified in the contract; a portion of which may be capped through the use of risk management products |
|
GWh billed |
Total number of GWh billed to customers, excluding investments in wind generation accounted for under the equity method of accounting and financially-settled instruments |
|
Appendix F-1: Definitions | |||
|
EWC Operational Performance Measures (continued) | |||
|
Net revenue |
Operating revenue less fuel, fuel related expenses and purchased power | ||
|
Non-fuel O&M |
Operation and maintenance expenses excluding fuel, fuel-related expenses and gas purchased for resale, purchased power and investments in wind generation accounted for under the equity method of accounting | ||
|
Non-fuel O&M per MWh |
Non-fuel O&M per MWh billed | ||
|
Offsetting positions |
Transactions for the purchase of energy, generally to offset a Firm LD transaction | ||
|
Owned capacity (MW) |
Installed capacity owned and operated by EWC, including investments in wind generation accounted for under the equity method of accounting; VY (nuclear) was retired on Dec. 29, 2014, and RISEC (non-nuclear) was sold on Dec. 17, 2015 | ||
|
Percent of capacity sold forward |
Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions | ||
|
Percent of planned generation under contract |
Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts or options that mitigate price uncertainty that may or may not require regulatory approval or approval of transmission rights or other conditions precedent; positions that are no longer classified as hedges are netted in the planned generation under contract | ||
|
Planned net MW in operation |
Amount of installed capacity to generate power and/or sell capacity, assuming shutdown of Pilgrim June 1, 2019 and FitzPatrick planned for Jan. 27, 2017 | ||
|
Planned TWh of generation |
Amount of output expected to be generated by EWC resources considering plant operating characteristics and outage schedules, assuming shutdown of Pilgrim June 1, 2019 and FitzPatrick planned for Jan. 27, 2017, uninterrupted normal plant operation and timely renewal of plant operating licenses at IPEC | ||
|
Production cost per MWh |
Fuel and non-fuel O&M expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation), excluding special items | ||
|
Refueling outage days |
Number of days lost for scheduled refueling outage during the period | ||
|
Unit-contingent |
Transaction under which power is supplied from a specific generation asset; if the asset is on operational outage, seller is generally not liable to buyer for any damages, unless the contract specifies certain conditions such as an availability guarantee | ||
|
Financial Measures – GAAP | |||
|
Book value per share |
End of period common equity divided by end of period shares outstanding | ||
|
Debt of joint ventures - Entergy's share |
Entergy's share of debt issued by business joint ventures at EWC | ||
|
Debt to capital ratio |
Total debt divided by total capitalization | ||
|
Leases - Entergy's share |
Operating leases held by subsidiaries capitalized at implicit interest rate | ||
|
Revolver capacity |
Amount of undrawn capacity remaining on corporate and subsidiary revolvers, including Entergy Nuclear Vermont Yankee | ||
|
ROIC - as-reported |
12-months rolling net income attributable to Entergy Corporation or Subsidiary (Net Income) adjusted for preferred dividends and tax-effected interest expense divided by average invested capital | ||
|
ROE - as-reported |
12-months rolling Net Income divided by average common equity | ||
|
Securitization debt |
Debt associated with securitization bonds issued to recover storm costs from hurricanes Rita, Ike and Gustav at ETI and Hurricane Isaac at ENOI; the 2009 ice storm at EAI and investment recovery of costs associated with the cancelled Little Gypsy repowering project at ELL | ||
|
Total debt |
Sum of short-term and long-term debt, notes payable and commercial paper and capital leases on the balance sheet | ||
|
Appendix F-1: Definitions | |
|
Financial Measures - Non-GAAP | |
|
Adjusted EBITDA |
Earnings before interest, depreciation and amortization and income taxes excluding decommissioning expense and other than temporary impairment losses on decommissioning trust fund assets; for Entergy consolidated, also excludes AFUDC-equity funds and subtracts securitization proceeds |
|
Adjusted EPS |
As-reported earnings per share excluding special items and weather and normalizing for income tax |
|
Debt to capital ratio, excluding securitization debt |
Total debt divided by total capitalization, excluding securitization debt |
|
Debt to EBITDA |
End of period total debt excluding securitization debt divided by 12-months rolling operational adjusted EBITDA |
|
FFO |
Net cash flow provided by operations less AFUDC-borrowed funds, working capital items in operating cash flow (receivables, fuel inventory, accounts payable, prepaid taxes and taxes accrued, interest accrued and other working capital accounts) and securitization regulatory charge |
|
FFO to debt |
12-months rolling operational FFO as a percentage of end of period total debt excluding securitization debt |
|
Gross liquidity |
Sum of cash and revolver capacity |
|
Operational adjusted EBITDA |
Adjusted EBITDA excluding effects of special items |
|
Operational earnings |
As-reported Net Income adjusted to exclude the impact of special items |
|
Operational FFO |
FFO excluding effects of special items |
|
Parent debt to total debt |
End of period Entergy Corporation debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of total debt excluding securitization debt |
|
Net debt to net capital ratio, excluding securitization debt |
Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt |
|
ROIC - operational |
12-months rolling operational Net Income adjusted for preferred dividends and tax-effected interest expense divided by average invested capital |
|
ROE - operational |
12-months rolling operational Net Income divided by average common equity |
Appendix F-2 explains abbreviations and acronyms used in the quarterly earnings materials.
|
Appendix F-2: Abbreviations and Acronyms | |||
|
AFUDC- borrowed funds |
Allowance for borrowed funds used during construction |
LPSC |
Louisiana Public Service Commission |
|
LTM |
Last twelve months | ||
|
MISO |
Midcontinent Independent System Operator, Inc. | ||
|
AFUDC- equity funds |
Allowance for equity funds used during construction |
MPSC |
Mississippi Public Service Commission |
|
NEPOOL |
New England Power Pool | ||
|
ADIT |
Accumulated deferred income taxes |
Ninemile 6 |
Ninemile Point Unit 6 |
|
ANO |
Arkansas Nuclear One (nuclear) |
NOAA |
National Oceanic and Atmosphere Administration |
|
APSC |
Arkansas Public Service Commission |
Non-fuel O&M |
Non-fuel operation and maintenance expense |
|
ARO |
Asset retirement obligation |
NRC |
Nuclear Regulatory Commission |
|
BP |
Basis point |
NYISO |
New York Independent System Operator, Inc. |
|
CCGT |
Combined cycle gas turbine |
NYPA |
New York Power Authority |
|
CCNO |
Council of the City of New Orleans, Louisiana |
NYS |
New York State |
|
COD |
Commercial operation date |
NYSDEC |
New York State Department of Environmental Conservation |
|
Cooper |
Cooper Nuclear Station |
NYSDOS |
New York State Department of State |
|
CT |
Simple cycle combustion turbine |
NYSE |
New York Stock Exchange |
|
CZM |
Coastal zone management |
O&M |
Operation and maintenance expense |
|
DCRF |
Distribution cost recovery factor |
OCF |
Operating cash flow |
|
DOJ |
U.S. Department of Justice |
OPEB |
Other post-employment benefits |
|
EAI |
Entergy Arkansas, Inc. |
Palisades |
Palisades Power Plant (nuclear) |
|
EBITDA |
Earnings before interest, income taxes, depreciation and amortization |
Pilgrim |
Pilgrim Nuclear Power Station (nuclear) |
|
EEI |
Edison Electric Institute | ||
|
EGSL |
Entergy Gulf States Louisiana, L.L.C. | ||
|
ELL |
Entergy Louisiana, LLC |
PPA |
Power purchase agreement |
|
EMI |
Entergy Mississippi, Inc. |
PUCT |
Public Utility Commission of Texas |
|
ENOI |
Entergy New Orleans, Inc. |
RFO |
Refueling outage |
|
ESI |
Entergy Services, Inc. |
RFP |
Request for proposal |
|
EPS |
Earnings per share |
RISEC |
Rhode Island State Energy Center (CCGT) |
|
ETI |
Entergy Texas, Inc. |
ROE |
Return on equity |
|
ETR |
Entergy Corporation |
ROIC |
Return on invested capital |
|
EWC |
Entergy Wholesale Commodities |
ROS |
Rest of state |
|
FCA |
Forward capacity auction |
RPCE |
Rough production cost equalization |
|
FERC |
Federal Energy Regulatory Commission |
SEC |
U.S. Securities and Exchange Commission |
|
FFO |
Funds from operations |
SEMARI |
Southeast Massachusetts/Rhode Island |
|
Firm LD |
Firm liquidated damages |
SERI |
System Energy Resources, Inc. |
|
FitzPatrick |
James A. FitzPatrick Nuclear Power Plant |
SPDES |
State Pollutant Discharge Elimination System |
|
FRP |
Formula rate plan |
SPP |
Southwest Power Pool |
|
GAAP |
Generally accepted accounting principles |
TCRF |
Transmission cost recovery factor |
|
Grand Gulf |
Unit No. 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by System Energy |
Top Deer |
Top Deer Wind Ventures, LLC |
|
HCM |
Human Capital Management program |
Union |
Union Power Station |
|
HSR |
Hart-Scott-Rodino |
UP&O |
Utility, Parent & Other |
|
Indian Point 2 |
Indian Point Energy Center Unit 2 (nuclear) |
VY |
Vermont Yankee Nuclear Power Station (nuclear) |
|
Indian Point 3 |
Indian Point Energy Center Unit 3 (nuclear) |
WACC |
Weighted-average cost of capital |
|
IPEC |
Indian Point Energy Center (nuclear) |
WOTAB |
West of the Atchafalaya Basin |
|
ISES |
Independence Steam Electric Station (coal) |
Waterford 3 |
Unit No. 3 (nuclear) of the Waterford Steam Electric Station, 100% owned or leased by Entergy Louisiana |
|
ISO-NE |
ISO New England |
WQC |
Water Quality Certification |
|
LHV |
Lower Hudson Valley |
YOY |
Year-over-year |
G: GAAP to Non-GAAP Reconciliations
Appendix G-1, Appendix G-2 and Appendix G-3 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure.
|
Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures - Utility and EWC Non-fuel O&M per MWh, EWC and EWC Nuclear Average Total Revenue per MWh | |||||
|
($ in thousands except where noted) |
Fourth Quarter |
Year-to-Date | |||
|
2015 |
2014 |
2015 |
2014 | ||
|
Utility |
|||||
|
As-reported Utility non-fuel O&M |
(A) |
670,638 |
666,742 |
2,560,620 |
2,394,621 |
|
Special Items included in non-fuel O&M: |
|||||
|
HCM implementation expenses |
- |
2,423 |
- |
12,625 | |
|
Total special items included in non-fuel O&M |
(B) |
- |
2,423 |
- |
12,625 |
|
Operational Utility non-fuel O&M |
(A-B) |
670,638 |
664,319 |
2,560,620 |
2,381,996 |
|
Utility billed sales (GWh) |
(C) |
27,882 |
29,545 |
121,586 |
120,372 |
|
As-reported Utility non-fuel O&M per MWh |
(A/C) |
24.05 |
22.57 |
21.06 |
19.89 |
|
Operational Utility non-fuel O&M per MWh |
[(A-B)/(C)] |
24.05 |
22.48 |
21.06 |
19.79 |
|
EWC |
|||||
|
As-reported EWC non-fuel O&M |
(D) |
280,425 |
316,917 |
1,033,144 |
1,172,339 |
|
Special Items included in non-fuel O&M: |
|||||
|
Decisions to close VY, FitzPatrick and Pilgrim |
6,205 |
18,402 |
16,979 |
43,516 | |
|
HCM implementation expenses |
- |
736 |
- |
3,261 | |
|
Total special items included in non-fuel O&M |
(E) |
6,205 |
19,138 |
16,979 |
46,777 |
|
Operational EWC non-fuel O&M |
(D-E) |
274,220 |
297,779 |
1,016,165 |
1,125,562 |
|
EWC billed sales (GWh) |
(F) |
10,135 |
11,550 |
39,745 |
44,424 |
|
As-reported EWC non-fuel O&M per MWh |
(D/F) |
27.67 |
27.44 |
25.99 |
26.39 |
|
Operational EWC non-fuel O&M per MWh |
[(D-E)/(F)] |
27.06 |
25.78 |
25.57 |
25.34 |
|
As-reported EWC operating revenue |
(G) |
458,184 |
623,652 |
2,061,827 |
2,719,404 |
|
Less Palisades below-market PPA amortization |
(H) |
3,800 |
4,124 |
15,200 |
16,496 |
|
Adjusted EWC operating revenue |
(G-H) |
454,384 |
619,528 |
2,046,627 |
2,702,908 |
|
As-reported EWC nuclear operating revenue |
(I) |
427,447 |
569,581 |
1,846,508 |
2,445,695 |
|
Less Palisades below-market PPA amortization |
(H) |
3,800 |
4,124 |
15,200 |
16,496 |
|
Adjusted EWC nuclear operating revenue |
(I-H) |
423,647 |
565,457 |
1,831,308 |
2,429,199 |
|
As-reported EWC average total revenue per MWh |
(G)/(F) |
45.21 |
54.00 |
51.88 |
61.21 |
|
Adjusted EWC average total revenue per MWh |
[(G-H)/(F)] |
44.83 |
53.64 |
51.49 |
60.84 |
|
EWC nuclear billed sales (GWh) |
(J) |
9,561 |
10,635 |
35,859 |
40,253 |
|
As-reported EWC nuclear average total revenue per MWh |
(I)/(J) |
44.71 |
53.56 |
51.49 |
60.76 |
|
Adjusted EWC nuclear average total revenue per MWh |
[(I-H)/(J)] |
44.31 |
53.17 |
51.07 |
60.35 |
|
VY operational non-fuel O&M |
(K) |
32,054 |
149,527 | ||
|
VY operating revenue |
(L) |
52,981 |
315,293 | ||
|
VY billed sales |
(M) |
1,108 |
5,061 | ||
|
Operational EWC non-fuel O&M per MWh excluding VY |
[(D-E)-(K)]/[(F)-(M)] |
25.45 |
24.80 | ||
|
Adjusted EWC average total revenue per MWh excluding VY |
[(G-H)-(L)]/(F)-(M)] |
54.26 |
60.65 | ||
|
Adjusted EWC nuclear average total revenue per MWh excluding VY |
[(I-H)-(L)]/(J)-(M)] |
53.79 |
60.07 | ||
|
Totals may not foot due to rounding |
|
Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures - ROE, ROIC Metrics | |||
|
($ in millions) |
Fourth Quarter | ||
|
2015 |
2014 | ||
|
As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months |
(A) |
(177) |
941 |
|
Preferred dividends |
20 |
20 | |
|
Tax effected interest expense |
396 |
386 | |
|
As-reported net income attributable to Entergy Corporation, rolling 12 months adjusted for preferred dividends and tax effected interest expense |
(B) |
239 |
1,347 |
|
Special items in prior quarters |
(1,070) |
(95) | |
|
HCM implementation expenses |
- |
(2) | |
|
Decisions to close VY, FitzPatrick and Pilgrim |
(3) |
(13) | |
|
Palisades asset impairment and related write-offs |
(256) |
- | |
|
Top Deer investment impairment |
(24) |
- | |
|
Gain on the sale of RISEC |
100 |
- | |
|
Total special items, rolling 12 months |
(C) |
(1,253) |
(109) |
|
Operational earnings, rolling 12 months adjusted for preferred dividends and tax effected interest expense |
(B-C) |
1,492 |
1,456 |
|
Operational earnings, rolling 12 months |
(A-C) |
1,076 |
1,050 |
|
Average invested capital |
(D) |
23,827 |
23,864 |
|
Average common equity |
(E) |
9,632 |
9,820 |
|
ROIC - as-reported % |
(B/D) |
1.0 |
5.6 |
|
ROIC - operational % |
[(B-C)/D] |
6.3 |
6.1 |
|
ROE - as-reported % |
(A/E) |
(1.8) |
9.6 |
|
ROE - operational % |
[(A-C)/E] |
11.2 |
10.7 |
|
Totals may not foot due to rounding |
|
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures - Credit and Liquidity Metrics | |||
|
($ in millions) |
Fourth Quarter | ||
|
2015 |
2014 | ||
|
Total debt |
(A) |
13,850 |
13,917 |
|
Less securitization debt |
(B) |
775 |
777 |
|
Total debt, excluding securitization debt |
(C) |
13,075 |
13,140 |
|
Less cash and cash equivalents |
(D) |
1,351 |
1,422 |
|
Net debt, excluding securitization debt |
(E) |
11,724 |
11,718 |
|
Total capitalization |
(F) |
23,425 |
24,229 |
|
Less securitization debt |
(B) |
775 |
777 |
|
Total capitalization, excluding securitization debt |
(G) |
22,650 |
23,452 |
|
Less cash and cash equivalents |
(D) |
1,351 |
1,422 |
|
Net capital, excluding securitization debt |
(H) |
21,299 |
22,030 |
|
Debt to capital ratio % |
(A/F) |
59.1 |
57.4 |
|
Debt to capital ratio, excluding securitization debt % |
(C/G) |
57.7 |
56.0 |
|
Net debt to net capital ratio, excluding securitization debt % |
(E/H) |
55.0 |
53.2 |
|
Revolver capacity |
(I) |
3,582 |
3,592 |
|
Gross liquidity |
(D+I) |
4,933 |
5,014 |
|
Entergy Corporation notes: |
|||
|
Due September 2015 |
- |
550 | |
|
Due January 2017 |
500 |
500 | |
|
Due September 2020 |
450 |
450 | |
|
Due July 2022 |
650 |
- | |
|
Total parent long-term debt |
(J) |
1,600 |
1,500 |
|
Revolver draw |
(K) |
835 |
695 |
|
Commercial paper |
(L) |
422 |
484 |
|
Total parent debt |
(J)+(K)+(L) |
2,857 |
2,679 |
|
Parent debt to total debt ratio, excluding securitization debt % |
[((J)+(K)+(L))/(C)] |
21.9% |
20.4% |
|
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures - Credit and Liquidity Metrics (continued) | |||
|
($ in millions) |
Fourth Quarter | ||
|
2015 |
2014 | ||
|
Total debt |
(A) |
13,850 |
13,917 |
|
Less securitization debt |
(B) |
775 |
777 |
|
Total debt, excluding securitization debt |
(C) |
13,075 |
13,140 |
|
As-reported consolidated net income (loss), rolling 12 months |
(157) |
960 | |
|
Add back: interest expense, rolling 12 months |
643 |
628 | |
|
Add back: income tax expense, rolling 12 months |
(643) |
590 | |
|
Add back: depreciation and amortization, rolling 12 months |
1,337 |
1,319 | |
|
Add back: regulatory charges (credits), rolling 12 months |
175 |
(14) | |
|
Subtract: securitization proceeds, rolling 12 months |
137 |
130 | |
|
Subtract: interest and investment income, rolling 12 months |
187 |
148 | |
|
Subtract: AFUDC-equity funds, rolling 12 months |
52 |
65 | |
|
Add back: decommissioning expense, rolling 12 months |
280 |
273 | |
|
Adjusted EBITDA, rolling 12 months |
(D) |
1,259 |
3,413 |
|
Add back: special item for HCM implementation expenses, rolling 12 months (pre-tax) |
- |
16 | |
|
Add back: special item resulting from decisions to close VY, FitzPatrick and Pilgrim, rolling 12 months (pre-tax) |
1,658 |
154 | |
|
Add back: special item for Palisades asset impairment and related write-offs, rolling 12 months (pre-tax) |
396 |
- | |
|
Add back: Top Deer investment impairment, rolling 12 months (pre-tax) |
37 |
- | |
|
Add back: special item for gain on the sale of RISEC, rolling 12 months (pre-tax) |
(154) |
- | |
|
Operational adjusted EBITDA, rolling 12 months |
(E) |
3,196 |
3,583 |
|
Debt to operational adjusted EBITDA, excluding securitization debt |
(C)/(E) |
4.1 |
3.7 |
|
Net cash flow provided by operating activities, rolling 12 months |
(F) |
3,291 |
3,890 |
|
AFUDC-borrowed funds used during construction, rolling 12 months |
(G) |
(27) |
(34) |
|
Working capital items in net cash flow provided by operating activities, rolling 12 months: |
|||
|
Receivables |
38 |
98 | |
|
Fuel inventory |
(12) |
4 | |
|
Accounts payable |
(135) |
(13) | |
|
Prepaid taxes and taxes accrued |
82 |
(63) | |
|
Interest accrued |
(11) |
25 | |
|
Other working capital accounts |
(114) |
112 | |
|
Securitization regulatory charge |
107 |
97 | |
|
Total |
(H) |
(45) |
260 |
|
FFO, rolling 12 months |
(F)+(G)-(H) |
3,309 |
3,596 |
|
Add back: special item for HCM implementation expenses, rolling 12 months (pre-tax) |
- |
51 | |
|
Add back: special item resulting from decisions to close VY, FitzPatrick and Pilgrim, rolling 12 months (pre-tax) |
55 |
7 | |
|
Operational FFO, rolling 12 months |
(I) |
3,364 |
3,654 |
|
Operational FFO to debt ratio, excluding securitization debt % |
(I)/(C) |
25.7% |
27.8% |
|
Totals may not foot due to rounding |
Logo - http://photos.prnewswire.com/prnh/20120913/MM74349LOGO
SOURCE Entergy Corporation
Article Date
2/18/2016Entergy Announces Fourth Quarter Earnings Conference Call
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, Feb. 11, 2016 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) will report fourth quarter and full year earnings results before market open on Thursday, Feb. 18, 2016, and host a teleconference at 10 a.m. CST that day to discuss the earnings announcement and the company's financial performance. The teleconference may be accessed by dialing 855-893-9849, conference ID 85410755, no more than 15 minutes prior to the start of the call or by visiting Entergy's website at www.entergy.com. From time to time, Entergy posts new and/or revised materials on its website and on social media, and anticipates doing so in connection with this event. The presentation slides will be available on Entergy's website and the Entergy Investor Relations mobile web app at iretr.com before market open on the day of the call. A replay of the teleconference will be available until Feb. 25, 2016, by dialing 855-859-2056, confirmation ID 85410755.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power, making it one of the nation's leading nuclear generators. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of more than $12 billion and approximately 13,000 employees.
Additional investor information can be accessed at www.entergy.com/investor_relations
Logo - http://photos.prnewswire.com/prnh/20120913/MM74349LOGO
SOURCE Entergy Corporation
Article Date
2/11/20162/10/2016 - Entergy Update on Tritium at Indian Point: Fluctuations No Threat to Public Health or Safety
Entergy Update on Tritium at Indian Point: Fluctuations No Threat to Public Health or Safety
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
BUCHANAN, N.Y., Feb. 10, 2016 /PRNewswire/ -- Entergy today released updated findings from follow up groundwater tests at the Indian Point nuclear power plant that confirm anticipated fluctuations in tritium levels. These levels continue to pose no threat to public health or safety.
The most recent samples from onsite groundwater monitoring wells show elevated levels of tritium from the first readings – with the highest concentration rising by about 80 percent, fluctuations that can be expected as the material migrates.
Even with the new readings, there is no impact to public health or safety, and although these values remain less than one-tenth of one percent of federal reporting guidelines, Entergy again made voluntary notification to the NRC, state agencies and other key stakeholders.
Samples will continue to be taken regularly from the monitoring wells, in accordance with Indian Point's procedures.
Entergy's Investigation into Elevated Tritium Concentrations
Entergy, assisted by outside third-party experts, continues to investigate the source of the elevated tritium concentrations - with the likely cause related to the processing of water in preparation for a regularly scheduled refueling outage at the plant's Unit 2 reactor. Workers are inspecting the pump and drainage systems associated with those recent preparations, which were completed in January, to determine the most likely pathway for that water to have reached the ground.
Tritium is a weak radioactive isotope of hydrogen. To learn more about tritium, click on the following link: http://www.nrc.gov/reactors/operating/ops-experience/grndwtr-contam-tritium.html.
About Indian Point and Entergy
Indian Point Energy Center, in Buchanan, N.Y., is home to two operating nuclear power plants, Unit 2 and Unit 3, which generate approximately 2,000 megawatts of electricity and supply about 25 percent of power used annually by homes, business and public facilities in New York City and Westchester County.
Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power, making it one of the nation's leading nuclear generators. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of more than $12 billion and approximately 13,000 employees.
Indian Point Energy Center's online address is www.safesecurevital.com.
Entergy's online address is www.entergy.com.
Twitter: @Indian_Point
Facebook: Facebook.com/IndianPointEnergy
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SOURCE Entergy Corporation
Article Date
2/10/2016Entergy Names David Borde Vice President, Investor Relations
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, Feb. 1, 2016 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) announced today that David Borde, director of Entergy's utility finance business partners, has been selected as the company's vice president of investor relations effective March 2016. Borde replaces Paula Waters, who will move into the position of vice president, utility sales and development services, in the utility business. Waters will report to Theo Bunting, group president, utility operations.
Borde will serve as the primary interface with Wall Street analysts and investors, responsible for preparing financial disclosures, presentations and press releases to assist investors in their assessments of Entergy's future prospects. In addition, Borde will provide counsel to executive management and the board on analysts' perspectives of Entergy relative to its peers. Borde will report to Drew Marsh, executive vice president and chief financial officer.
"David's financial background has given him a unique opportunity to experience business finance from a variety of perspectives," said Marsh. "David understands the broader financial picture as well as the nuances that can affect the investment landscape. I am confident investors will find him a valuable resource in building a stronger understanding between us and our owners and the broader financial community."
In her new role, Waters will oversee the utility's top-line strategies, including sales forecasting and economic development and sales growth strategy and services in support of the five utility operating companies.
"Paula has been instrumental in helping us strengthen our relationships with the analyst community by working with investors to better understand our financial decisions," said Bunting. "Her expertise will be extremely valuable as we identify opportunities to enhance sales and services to benefit our customers."
Since beginning his career with Entergy in 2009, Borde has held leadership positions in corporate development and in the finance organization. Prior to joining Entergy, Borde was an associate with the law firm of Simpson Thacher & Bartlett in New York and an investment banker at Citi, also in New York. Borde received a business degree from the Pantheon-Sorbonne University and obtained his law degree from Duke University.
Waters, who received her master's degree in business administration from Tulane University and a bachelor's degree from Missouri State University, has been with the company since 1994. She also holds the Chartered Financial Analyst designation and has worked in various professional and management positions across Entergy's financial and business development groups.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power, making it one of the nation's leading nuclear generators. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of more than $12 billion and approximately 13,000 employees.
Entergy's online address: entergy.com
Facebook.com/Entergy
Twitter: @Entergy
Additional investor information can be accessed at entergy.com/investor_relations
Logo - http://photos.prnewswire.com/prnh/20120913/MM74349LOGO
SOURCE Entergy Corporation
Article Date
2/1/2016Entergy Names 30-Year Industry Veteran and Global Business Leader Chief Nuclear Officer
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, Jan. 29, 2016 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) announced today that A. Christopher "Chris" Bakken III has been named executive vice president and chief nuclear officer for Entergy Corporation, effective April 6. Bakken replaces Jeff Forbes, who announced his retirement last year. As a member of the Office of the Chief Executive, Bakken will report to Leo Denault, chairman and CEO, and he will be based at Entergy's nuclear headquarters in Jackson, Mississippi.
In his new leadership role, Bakken is responsible for executive oversight of the safe, secure and reliable operation of Entergy's nuclear plants located in New York, Massachusetts, Vermont, Michigan, Louisiana, Mississippi and Arkansas, as well as the company's management services to the Cooper Nuclear Station for the Nebraska Public Power District. Bakken will also be responsible for building and strengthening relationships with external stakeholders, while becoming an engaged company representative to the industry.
"At a time when the nuclear business is experiencing a transformation, Chris has the unique combination of skills required to help manage us back to a best–in-class organization," Denault said. "Chris has a proven track record as a global business executive equipped with the necessary technical expertise and demonstrated ability to effectively rebuild organizations to perform at a sustained level of operational excellence. His collaborative leadership style, strong interpersonal skills and diverse portfolio of experiences give me confidence in his ability to successfully lead our 6,000-person nuclear organization in upholding our commitment to operate a world-class energy business that creates sustainable value for all our stakeholders."
Bakken's 30-year career began in 1982 as a test engineer at Duquesne Light Company, where he spent nine years in the control room as a licensed senior reactor operator. Since then, he has held positions of increasing responsibility in operations for both domestic and global companies including American Electric Power, Public Service Enterprise Group, British Energy and EDF Energy.
"This is a critical time for the industry, Entergy and its nuclear fleet. I'm proud to join the Entergy team," Bakken said. "During my career, I've often admired the company. I am looking forward to leveraging my experiences, the strengths of the team, resources of the enterprise and support of the industry to help Entergy regain our footing as an industry front-runner," he added.
Prior to the role at Entergy, since 2011 Bakken has been executive director, EDF Energy Nuclear New Build and Project Director for Hinkley Point C based in London. In that role he was responsible for leading the design, licensing, procurement, construction and commissioning of the £18bn ($25.8bn at today's exchange rate) dual-unit EPR at Hinkley Point C, the first nuclear new-build project in the United Kingdom in 20 years. He joined the company in 2009 as director of operations, safety and licensing.
Immediately prior to joining EDF Energy, from 2006-2009 Bakken served as chief nuclear officer, Region 1, for British Energy, where he reported to the CEO and was a member of the British Energy Generation Limited Board of Directors. He was responsible for the recovery efforts of three advanced gas reactor nuclear power stations and for rebuilding relationships with key stakeholders including the nuclear and environmental safety authorities as well as labor unions. Upon joining the company in 2006, Bakken was the director of operations for the East.
From 2003-2005, Bakken held positions at PSEG as senior vice president, site operations, president and chief nuclear officer, and senior vice president, power transition. From 1995-1999, he worked for PSEG as a manager and director of operations, before becoming a plant manager for Salem Generating Station. Under his leadership, the plant achieved maximum regulatory score in operations and support, and set a new record for continuous operation for Salem Unit 1.
In addition, from 1999-2003, Bakken worked for American Electric Power as a site vice president for D.C. Cook, and senior vice president and chief nuclear officer. While there, he successfully led the effort to recover two Cook units from extended regulatory shutdown.
He earned a bachelor of science in electrical engineering from Grove City College in Grove City, Pennsylvania, and a master's in industrial administration with distinction from Carnegie Mellon University in Pittsburgh where he was elected to Beta Gamma Sigma national honor society. He earned a senior reactor operator's license from the U.S. Nuclear Regulatory Commission in 1986 for Beaver Valley Unit 1.
Tim Mitchell, currently Entergy's acting CNO, returns to his senior vice president role responsible for the nuclear facilities and remains based in Jackson. Mitchell joined Entergy in 1989 as a plant engineer at ANO. Prior to assuming responsibility for the safety, security and reliability of the operating fleet, Mitchell held a number of managerial and leadership roles including site vice president and general manager at ANO; engineering director at Waterford 3; and senior vice president of engineering and technical services.
"I greatly appreciate Tim serving in the role for the past three months," Denault said. "He began to lay the groundwork for returning our nuclear fleet back to top-quartile performance. During this period of transition, we will continue to leverage Tim as a valuable resource for his many attributes including his extensive knowledge of our operations, technical capability, focus on fleet excellence and strong relationships throughout the enterprise."
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power, making it one of the nation's leading nuclear generators. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of more than $12 billion and approximately 13,000 employees.
Entergy's online address: entergy.com
Facebook.com/Entergy
Twitter: @Entergy
Additional investor information can be accessed at entergy.com/investor_relations
Photo - http://photos.prnewswire.com/prnh/20160129/327472
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SOURCE Entergy Corporation
Article Date
1/29/20161/29/2016 - Entergy Declares Dividend
Entergy Declares Dividend
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
NEW ORLEANS, Jan. 29, 2016 /PRNewswire/ -- The Board of Directors of Entergy Corporation (NYSE:ETR) has declared a quarterly dividend of $0.85 per common share. The payment date is Mar. 1, 2016, to stockholders of record on Feb. 11, 2016.
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power, making it one of the nation's leading nuclear generators. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of more than $12 billion and approximately 13,000 employees.
Online address: Entergy.com
Twitter: @Entergy
Facebook: www.facebook.com/entergy
Logo - http://photos.prnewswire.com/prnh/20120913/MM74349LOGO
SOURCE Entergy Corporation
Article Date
1/29/2016Projects & Assets
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