UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date earliest event reported) May 11, 2020
Commission File Number | Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, Telephone Number, and IRS Employer Identification No. | Commission File Number | Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, Telephone Number, and IRS Employer Identification No. | |
(a Delaware corporation) 639 Loyola Avenue New Orleans, Louisiana 70113 Telephone (504) 576-4000 | (a Texas limited liability company) 1600 Perdido Street New Orleans, Louisiana 70112 Telephone (504) 670-3700 | |||
(a Texas limited liability company) 425 West Capitol Avenue Little Rock, Arkansas 72201 Telephone (501) 377-4000 | (a Texas corporation) 10055 Grogans Mill Road The Woodlands, Texas 77380 Telephone (409) 981-2000 | |||
(a Texas limited liability company) 4809 Jefferson Highway Jefferson, Louisiana 70121 Telephone (504) 576-4000 | (an Arkansas corporation) 1340 Echelon Parkway Jackson, Mississippi 39213 Telephone (601) 368-5000 | |||
(a Texas limited liability company) 308 East Pearl Street Jackson, Mississippi 39201 Telephone (601) 368-5000 | ||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):
Securities registered pursuant to Section 12(b) of the Act:
Registrant | Title of Class | Trading Symbol | Name of Each Exchange on Which Registered |
Entergy Corporation | |||
NYSE Chicago, Inc. | |||
Entergy Arkansas, LLC | |||
Entergy Louisiana, LLC | |||
Entergy Mississippi, LLC | |||
Entergy New Orleans, LLC | |||
Entergy Texas, Inc. | |||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition
On May 11, 2020, Entergy Corporation (the “Company”) issued a press release, which is attached as Exhibit 99.1 hereto and incorporated herein by reference, announcing its results of operations and financial condition for the first quarter 2020 (the “Earnings Release”). The information in Exhibit 99.1 is being furnished, not filed, pursuant to this Item 2.02.
Item 7.01. Regulation FD Disclosure
On May 11, 2020, the Company issued the Earnings Release, which is attached as Exhibit 99.1 hereto and incorporated herein by reference, announcing its results of operations and financial condition for the first quarter 2020. The information in Exhibit 99.1 is being furnished, not filed, pursuant to this Item 7.01.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
Exhibit No. | Description |
99.1 | |
104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Entergy Corporation
Entergy Arkansas, LLC
Entergy Louisiana, LLC
Entergy Mississippi, LLC
Entergy New Orleans, LLC
Entergy Texas, Inc.
System Energy Resources, Inc.
By: /s/ Kimberly A. Fontan
Kimberly A. Fontan
Senior Vice President and
Chief Accounting Officer
Dated: May 11, 2020
Entergy
639 Loyola Avenue
New Orleans, LA 70113
Exhibit 99.1
Date: | May 11, 2020 | ||
For Release: | Immediately | ||
Contact: | Neal Kirby (Media) (504) 576-4238 nkirby@entergy.com | David Borde (Investor Relations) (504) 576-5668 dborde@entergy.com | |
Entergy Reports First Quarter Earnings
Company affirms guidance and financial outlooks
NEW ORLEANS - 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.”
Table of Contents Page |
News Release1 Appendices8 A: Consolidated Results and Adjustments9 B: Earnings Variance Analysis12 C: Utility Financial and Operating Measures14 D: EWC Financial and Operating Measures15 E: Consolidated Financial Measures16 F: Definitions and Abbreviations and Acronyms17 G: Other GAAP to Non-GAAP Reconciliations21 Financial Statements24 |
Business highlights included the following:
• | 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. |
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:
• | 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). |
These drivers were partially offset by:
• | 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. |
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:
• | losses on decommissioning trust funds; and |
• | lower revenue due to the shutdown of Pilgrim, as well as lower nuclear pricing. |
These drivers were partially offset by:
• | 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. |
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:
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
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 $61 million in first quarter 2019 for the return of unprotected excess ADIT to customers (net effect is neutral to earnings). |
(d) | EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply and dividing by diluted average number of common shares outstanding for the prior period; income taxes-other represents income tax differences other than the tax effect of individual line items. |
Utility as-reported operating revenue less fuel, fuel-related expenses and gas purchased for resale; purchased power; and regulatory charges (credits) variance analysis 2020 vs. 2019 ($ EPS) | |
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 |
(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). |
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 Adjusted (r) | |
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 | $20.12 | 0.4 | |
Appendix C-2: Utility Operating Measures | ||||
Twelve Months Ended March 31, 2020 vs. 2019 | ||||
Twelve Months Ended March 31 | ||||
2020 | 2019 | % Change | % Weather Adjusted (r) | |
GWh billed | ||||
Residential | 35,748 | 36,291 | (1.5) | (0.8) |
Commercial | 28,576 | 29,117 | (1.9) | (2.2) |
Governmental | 2,573 | 2,574 | — | (0.4) |
Industrial | 48,616 | 48,662 | (0.1) | (0.1) |
Total retail sales | 115,513 | 116,644 | (1.0) | (0.8) |
Calculations may differ due to rounding
(r) | The effects of weather were estimated using heating degree days and cooling degree days for the billing cycles from certain locations within each jurisdiction and comparing to “normal” weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change. |
On a weather-adjusted basis for first quarter 2020, billed retail sales increased 0.3 percent. Residential billed sales increased 1.4 percent primarily due to more days billed compared to a year ago. Commercial billed sales decreased (2.7) percent driven by the continued impact of energy efficiency as well as billing delays. Industrial billed sales volume increased 1.1 percent driven by continued growth from new/expansion customers, partially offset by lower sales to existing large customers.
D: EWC Financial and Operating Measures
Appendix D-1 provides a comparative summary of EWC adjusted EBITDA (non-GAAP).
Appendix D-1: EWC Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures | |||
First Quarter 2020 vs. 2019 | |||
($ 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 AFUDC - borrowed funds 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 FRP GAAP Grand Gulf or GGNS IIRR-G Indian Point 1 Indian Point 2 or IP2 Indian Point 3 or IP3 IPEC ISES 2 IRS | Accumulated deferred income taxes Allowance for borrowed funds used during construction Administrative law judge Advanced metering infrastructure Units 1 and 2 of Arkansas Nuclear One owned by E-AR (nuclear) 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 Formula rate plan U.S. generally accepted accounting principles 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) (shut down in 1974) Indian Point Energy Center Unit 2 (nuclear) (shut down 4/30/20) Indian Point Energy Center Unit 3 (nuclear) Indian Point Energy Center (nuclear) Unit 2 of Independence Steam Electric Station (coal) Internal Revenue Service | 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 Yankee WACC WPEC | 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 August 26, 2019) Performance Management Rider Power purchase agreement or purchased power agreement 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 | |||
($ 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
Financial Statements
Entergy Corporation | ||||||||||||||||
Consolidating Balance Sheet | ||||||||||||||||
March 31, 2020 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
ASSETS | ||||||||||||||||
CURRENT ASSETS | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 43,837 | $ | 229,300 | $ | 10,354 | $ | 283,491 | ||||||||
Temporary cash investments | 954,499 | 5,860 | 219,983 | 1,180,342 | ||||||||||||
Total cash and cash equivalents | 998,336 | 235,160 | 230,337 | 1,463,833 | ||||||||||||
Notes receivable | — | (514,116 | ) | 514,116 | — | |||||||||||
Accounts receivable: | ||||||||||||||||
Customer | 532,206 | — | 70,072 | 602,278 | ||||||||||||
Allowance for doubtful accounts | (8,521 | ) | — | — | (8,521 | ) | ||||||||||
Associated companies | 11,437 | (23,020 | ) | 11,583 | — | |||||||||||
Other | 104,124 | 606 | 7,638 | 112,368 | ||||||||||||
Accrued unbilled revenues | 369,948 | — | — | 369,948 | ||||||||||||
Total accounts receivable | 1,009,194 | (22,414 | ) | 89,293 | 1,076,073 | |||||||||||
Fuel inventory - at average cost | 154,302 | — | 6,563 | 160,865 | ||||||||||||
Materials and supplies - at average cost | 806,299 | — | 31,556 | 837,855 | ||||||||||||
Deferred nuclear refueling outage costs | 140,674 | — | 26,450 | 167,124 | ||||||||||||
Prepayments and other | 170,412 | (16,499 | ) | 114,288 | 268,201 | |||||||||||
TOTAL | 3,279,217 | (317,869 | ) | 1,012,603 | 3,973,951 | |||||||||||
OTHER PROPERTY AND INVESTMENTS | ||||||||||||||||
Investment in affiliates - at equity | 1,491,018 | (1,491,104 | ) | 86 | — | |||||||||||
Decommissioning trust funds | 3,280,341 | — | 2,497,944 | 5,778,285 | ||||||||||||
Non-utility property - at cost (less accumulated depreciation) | 321,631 | (6 | ) | 13,689 | 335,314 | |||||||||||
Other | 452,903 | 1,212 | 6,454 | 460,569 | ||||||||||||
TOTAL | 5,545,893 | (1,489,898 | ) | 2,518,173 | 6,574,168 | |||||||||||
PROPERTY, PLANT, AND EQUIPMENT | ||||||||||||||||
Electric | 54,551,227 | 10,634 | 962,442 | 55,524,303 | ||||||||||||
Natural gas | 553,323 | — | — | 553,323 | ||||||||||||
Construction work in progress | 2,455,645 | 257 | 13,228 | 2,469,130 | ||||||||||||
Nuclear fuel | 595,236 | — | 61,980 | 657,216 | ||||||||||||
TOTAL PROPERTY, PLANT, AND EQUIPMENT | 58,155,431 | 10,891 | 1,037,650 | 59,203,972 | ||||||||||||
Less - accumulated depreciation and amortization | 22,617,341 | 2,535 | 802,975 | 23,422,851 | ||||||||||||
PROPERTY, PLANT, AND EQUIPMENT - NET | 35,538,090 | 8,356 | 234,675 | 35,781,121 | ||||||||||||
DEFERRED DEBITS AND OTHER ASSETS | ||||||||||||||||
Regulatory assets: | ||||||||||||||||
Other regulatory assets | 5,192,780 | — | — | 5,192,780 | ||||||||||||
Deferred fuel costs | 240,024 | — | — | 240,024 | ||||||||||||
Goodwill | 374,099 | — | 3,073 | 377,172 | ||||||||||||
Accumulated deferred income taxes | 71,736 | 1,022 | 3,922 | 76,680 | ||||||||||||
Other | 179,822 | 10,218 | 149,093 | 339,133 | ||||||||||||
TOTAL | 6,058,461 | 11,240 | 156,088 | 6,225,789 | ||||||||||||
TOTAL ASSETS | $ | 50,421,661 | $ | (1,788,171 | ) | $ | 3,921,539 | $ | 52,555,029 | |||||||
*Totals may not foot due to rounding. | ||||||||||||||||
Entergy Corporation | ||||||||||||||||
Consolidating Balance Sheet | ||||||||||||||||
March 31, 2020 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||
Currently maturing long-term debt | $ | 780,015 | $ | 450,000 | $ | — | $ | 1,230,015 | ||||||||
Notes payable and commercial paper: | ||||||||||||||||
Other | — | 1,941,816 | — | 1,941,816 | ||||||||||||
Account payable: | ||||||||||||||||
Associated companies | 10,944 | (17,092 | ) | 6,148 | — | |||||||||||
Other | 1,297,159 | 216 | 205,017 | 1,502,392 | ||||||||||||
Customer deposits | 408,803 | — | — | 408,803 | ||||||||||||
Taxes accrued | 225,668 | 23,094 | (59,548 | ) | 189,214 | |||||||||||
Interest accrued | 179,480 | 8,802 | 1,056 | 189,338 | ||||||||||||
Deferred fuel costs | 228,379 | — | — | 228,379 | ||||||||||||
Pension and other postretirement liabilities | 48,244 | — | 13,885 | 62,129 | ||||||||||||
Current portion of unprotected excess accumulated deferred | ||||||||||||||||
income taxes | 64,339 | 64,339 | ||||||||||||||
Other | 180,704 | 1,659 | 19,151 | 201,514 | ||||||||||||
TOTAL | 3,423,735 | 2,408,495 | 185,709 | 6,017,939 | ||||||||||||
NON-CURRENT LIABILITIES | ||||||||||||||||
Accumulated deferred income taxes and taxes accrued | 5,913,361 | (392,073 | ) | (1,136,794 | ) | 4,384,494 | ||||||||||
Accumulated deferred investment tax credits | 205,041 | — | — | 205,041 | ||||||||||||
Regulatory liability for income taxes - net | 1,600,189 | — | — | 1,600,189 | ||||||||||||
Other regulatory liabilities | 1,555,188 | — | — | 1,555,188 | ||||||||||||
Decommissioning and retirement cost liabilities | 3,738,604 | — | 2,512,347 | 6,250,951 | ||||||||||||
Accumulated provisions | 497,877 | — | 322 | 498,199 | ||||||||||||
Pension and other postretirement liabilities | 2,069,403 | — | 619,846 | 2,689,249 | ||||||||||||
Long-term debt | 15,775,121 | 2,314,407 | 139,000 | 18,228,528 | ||||||||||||
Other | 1,032,558 | (435,306 | ) | 49,647 | 646,899 | |||||||||||
TOTAL | 32,387,342 | 1,487,028 | 2,184,368 | 36,058,738 | ||||||||||||
Subsidiaries' preferred stock without sinking fund | 195,136 | — | 24,249 | 219,385 | ||||||||||||
EQUITY | ||||||||||||||||
Common stock, $.01 par value, authorized 500,000,000 shares; | ||||||||||||||||
issued 270,035,180 shares in 2020 | 1,973,748 | (2,172,151 | ) | 201,103 | 2,700 | |||||||||||
Paid-in capital | 4,314,748 | 731,087 | 1,464,848 | 6,510,683 | ||||||||||||
Retained earnings | 8,288,415 | 717,940 | 183,786 | 9,190,141 | ||||||||||||
Accumulated other comprehensive income loss | (76,463 | ) | — | (322,524 | ) | (398,987 | ) | |||||||||
Less - treasury stock, at cost (69,874,430 shares in 2020) | 120,000 | 4,960,570 | — | 5,080,570 | ||||||||||||
TOTAL COMMON SHAREHOLDERS' EQUITY | 14,380,448 | (5,683,694 | ) | 1,527,213 | 10,223,967 | |||||||||||
Subsidiaries' preferred stock without sinking fund | 35,000 | — | — | 35,000 | ||||||||||||
TOTAL | 14,415,448 | (5,683,694 | ) | 1,527,213 | 10,258,967 | |||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 50,421,661 | $ | (1,788,171 | ) | $ | 3,921,539 | $ | 52,555,029 | |||||||
*Totals may not foot due to rounding. | ||||||||||||||||
Entergy Corporation | ||||||||||||||||
Consolidating Balance Sheet | ||||||||||||||||
December 31, 2019 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Utility | Parent & Other | Entergy Wholesale Commodities | Consolidated | |||||||||||||
ASSETS | ||||||||||||||||
CURRENT ASSETS | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 28,010 | $ | 4,858 | $ | 1,374 | $ | 34,242 | ||||||||
Temporary cash investments | 173,613 | 10,192 | 207,675 | 391,480 | ||||||||||||
Total cash and cash equivalents | 201,623 | 15,050 | 209,049 | 425,722 | ||||||||||||
Notes receivable | — | (514,116 | ) | 514,116 | — | |||||||||||
Accounts receivable: | ||||||||||||||||
Customer | 512,228 | — | 83,281 | 595,509 | ||||||||||||
Allowance for doubtful accounts | (7,404 | ) | — | — | (7,404 | ) | ||||||||||
Associated companies | 20,481 | (25,572 | ) | 5,091 | — | |||||||||||
Other | 210,452 | 817 | 8,601 | 219,870 | ||||||||||||
Accrued unbilled revenues | 400,617 | — | — | 400,617 | ||||||||||||
Total accounts receivable | 1,136,374 | (24,755 | ) | 96,973 | 1,208,592 | |||||||||||
Deferred fuel costs | — | — | — | — | ||||||||||||
Fuel inventory - at average cost | 140,010 | — | 5,466 | 145,476 | ||||||||||||
Materials and supplies - at average cost | 792,192 | — | 32,797 | 824,989 | ||||||||||||
Deferred nuclear refueling outage costs | 120,110 | — | 37,458 | 157,568 | ||||||||||||
Prepayments and other | 171,874 | (16,346 | ) | 128,117 | 283,645 | |||||||||||
TOTAL | 2,562,183 | (540,167 | ) | 1,023,976 | 3,045,992 | |||||||||||
OTHER PROPERTY AND INVESTMENTS | ||||||||||||||||
Investment in affiliates - at equity | ||||||||||||||||