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 | ||||
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. | |||
Exhibit No. | Description |
99.1 | |
104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. |
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 |
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 |
• | 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) |
• | 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. |
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 $) (a) | |||
Earnings (loss) | |||
Utility | 1.59 | 1.20 | 0.39 |
Parent & Other | (0.45) | (0.38) | (0.07) |
EWC | (0.55) | 0.50 | (1.05) |
Consolidated | 0.59 | 1.32 | (0.73) |
Less adjustments | |||
Utility | — | — | — |
Parent & Other | — | — | — |
EWC | (0.55) | 0.50 | (1.05) |
Consolidated | (0.55) | 0.50 | (1.05) |
Adjusted earnings (loss) (non-GAAP) | |||
Utility | 1.59 | 1.20 | 0.39 |
Parent & Other | (0.45) | (0.38) | (0.07) |
EWC | — | — | — |
Consolidated | 1.14 | 0.82 | 0.32 |
Estimated weather in billed sales | (0.25) | (0.12) | (0.13) |
(a) | Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period. |
Appendix A-2: Consolidated Operating Cash Flow | |||
First Quarter 2020 vs. 2019 | |||
($ in millions) | |||
First Quarter | |||
2020 | 2019 | Change | |
Utility | 603 | 455 | 148 |
Parent & Other | (81) | (78) | (3) |
EWC | 137 | 124 | 13 |
Consolidated | 659 | 501 | 158 |
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) |
(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) |
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 | |||
(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 |
(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). |
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 | $20.12 | 0.4 | |
Appendix C-2: Utility Operating Measures | ||||
Twelve Months Ended March 31, 2020 vs. 2019 | ||||
Twelve Months Ended March 31 | ||||
2020 | 2019 | % Change | % Weather Adjusted (r) | |
GWh billed | ||||
Residential | 35,748 | 36,291 | (1.5) | (0.8) |
Commercial | 28,576 | 29,117 | (1.9) | (2.2) |
Governmental | 2,573 | 2,574 | — | (0.4) |
Industrial | 48,616 | 48,662 | (0.1) | (0.1) |
Total retail sales | 115,513 | 116,644 | (1.0) | (0.8) |
(r) | The effects of weather were estimated using heating degree days and cooling degree days for the billing cycles from certain locations within each jurisdiction and comparing to “normal” weather based on 20-year historical data. The models used to estimate weather are updated periodically and are subject to change. |
Appendix D-1: EWC Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures | |||
First Quarter 2020 vs. 2019 | |||
($ 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 |
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 | $57.99 | (16.5) |
Refueling outage days | |||
Indian Point 3 | — | 21 | |
(s) | First quarter 2020 excludes Pilgrim (688MW), which was shut down May 31, 2019 and sold August 26, 2019. |
Appendix E: GAAP and Non-GAAP Financial Measures | |||
First Quarter 2020 vs. 2019 (See Appendix G for reconciliation of GAAP to non-GAAP financial measures) | |||
For 12 months ending March 31 | 2020 | 2019 | Change |
GAAP Measures | |||
As-reported ROIC | 5.6% | 5.6% | 0.0% |
As-reported ROE | 11.5% | 11.4% | 0.1% |
Non-GAAP Financial Measures | |||
Adjusted ROIC | 5.6% | 5.5% | 0.1% |
Adjusted ROE | 11.8% | 11.5% | 0.3% |
As of March 31 ($ 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% |
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: 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 |
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% |
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% |
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% |
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 | ||||||||||||||||